India, a preferred destination of Pharmaceutical sector. Some of facts that proves it are:
- 2633 approved drugs products.
- 546 USFDA approved company sides.
- 2nd Largest approves USFDA manufacturing plants.
- Skilled manpower.
- High Managerial and technical competency.
India is the largest vaccine producer in the world which supply’s around 50 % of global demand of vaccine, 40 % of generic drugs demand in the US and 25 % of all medicine to UK. The country is the 4th largest medical device market in Asia. It holds an important position in the global pharmaceutical sector. Pharmaceutical exports include bulk drugs, intermediates, drug formulations, biologicals, herbal products and surgical.
Growth Driven Factors of Pharmaceutical Industry
With the growing population, the advancement in the Pharmaceutical Industry has become a need of an hour. The sector is growing rapidly in India, The growth driven factors are categorised in to three:
- Demand Side Driven: Increasing Fatal Diseases, Accessibility of drugs for the improvement, Better diagnostic facilities, Increasing penetration of health insurances.
- Supply Driven: Low cost of production, Skilled Manpower, Generic hub, Increasing penetration of chemist.
- Policy Support: Lesser time for getting approvals, Exemption to drug manufacturing, National health policy 2015 focusing public expenditure on health care.
Foreign Direct Investment in Pharmaceutical Sector
Foreign direct investment (FDI) is a major source of non-debt financial resource for the economic development of any country. India has become the most attractive emerging market for global partners (GP) investment due to government’s initiatives in relaxing FDI norms across sectors. Pharmaceutical sector has attracted cumulative FDI inflows worth US$ 15.98 billion between April 2000 and March 2019.
100% Foreign Direct Investment (FDI) in pharmaceuticals in India is allowed under the automatic route for green-field pharma. (New Facility)
100% FdI in Drugs and Pharmaceuticals in India is allowed in brownfield pharma (Merges and acquisition) wherein 74% FDI in the Pharmaceuticals Sector is allowed under the automatic route and thereafter through government approval route.
Maharashtra: A Pharma Capital
Maharashtra, a financial capital of India is the key exporter of Pharma product from the country. Pharma destination in Maharashtra are Pune, Nashik, Aurangabad and Mumbai/Thane. Tarapur is one of the preferred MIDC areas to house a large number of pharma enterprises. Maharashtra has a bio-pharma park (Serum Bio Pharma Park) at Pune. There are dedicated pharma special economic zones (SEZs) at Aurangabad and Nanded.
Maharashtra is captioned as Pharma Capital due to the underlying factors:
- Availability of Skilled Manpower: India has the highest number of US FDA approved plants outside the US and Maharashtra has the highest number of such plants in India due to available of skilled manpower supply which is essential to maintain the international standards of manufacturing due to the strict regulatory guidelines.
- Attract R& D Investment: Research and development (R&D) is the core of the pharma industry and the industry thrives only if substantial investments are made in developing new products for domestic as well as international markets. Maharashtra has the ability to attract R&D investments in the new research areas and take appropriate steps to encash on this opportunity.
- Availability of regulatory infrastructure: Maharashtra is the first state to set up an independent Intelligence Branch with a separate wing to facilitate and speed up investigations under acts enforced by the FDA. The regulatory infrastructure in the state is of the highest order and the percentage of substandard drugs produced in Maharashtra is remote as compared to other states.
- Ease of Doing Business: Maharashtra besides being an investment-friendly destination has very good talent in the area of chemistry. Moreover, active pharmaceutical suppliers are centred in this region.
- Amazing Connectivity: Through Airways (Domestic and International Airport, Ports (MBPT & JNPT), 18 National Highways, Strong Railways Network.
- Cost efficiency: Production cost 60% lesser than the US and almost half of the Europe, 50% lesser Labour cost than the western countries, Cost of setting up production plant is 50% lesser than the western countries,
- Availability of waste disposition: Maharashtra has 20 operational CETPs in the state and another 4 are under construction. The state has 4 CHWTPs at Taloja, TTC, Ranjangaon and Butibori, which is one of the highest in the country.
Maharashtra Pharma Key Players
Some of the major Key players of Pharma Industry in Maharashtra are:
- Sun Pharma.
- Rellis India Ltd.
ASCC Esteem Pharma Clientele
ASCC has successfully completed 450+ Industrial Real Estate Transactions. Our services included:
- Real Estate Transaction.
- Approvals of Industrial Compliance.
Some of ASCC esteem Pharma Clientele include:
- V- Ensure Pharma Technology.
- Indobio Active Pharma Pvt.Ltd.
- Archaic Remedies Pvt.Ltd.
- Soham Pharma Pvt.Ltd.
We can assist you in acquiring Leasehold rights through
- Direct Allotment from the government via E-bidding Process.
- Direct Allotment under FDI.
We can help in preparation of Transfer Documents along with Liaison work. Our services includes getting Industrial Permission and Licences for running industries. You can reach us at :
Ascent Supply Chain Consultants Pvt Ltd (ASCC)
406, Raheja Arcade
Sector -11, CBD Belapur
Navi Mumbai – 400614