Non-conventional markets to drive drug exports

Anticipating that the non-conventional markets will drive the country's pharmaceuticals exports in future, small and medium companies are exploring these markets.

While the conventional markets for pharmaceuticals exports are the US and European Union, non-conventional markets are the CIS countries, African region, Latin American countries and Asean (Association of South East Asian Nations) region.

Industry sources said of the targeted export of Rs 63,000 crore in 2010, the non-conventional markets were expected to earn 60 per cent. These markets now contribute one-fifth of the total export of Rs 16,682 crore.

"The non-traditional markets will drive drug export growth in the coming years. The large majority of small and medium pharmaceutical companies from India are looking at these less regulated markets like Pakistan, Afganistan, Ukraine, Kazakhstan, Azerbaijan, Chile, Nigeria and many more, to make an important presence in these markets," D B Mody, chairman of the Export Promotion Council, said.

Lured by the opportunity, the Export Promotion Council (Pharmexcil), with support from the Union ministry of commerce, has identified four blocks "� CIS, Africa, Latin America and select Asean countries "� as the new focus areas.

The export promotion body had organised 11 trade delegations to these markets with representation from the Indian SME segment. Mody said that the last trade delegation to African countries had delegates from 120 companies.

The council had also taken delegations to Hungary, Tunisia, Vietnam, Philippines, Malaysia, Chile, Brazil, and to the CIS countries like Azerbaijan, Belarus, Georgia and Tajikistan.

The Pharmexcil data on the pharmaceutical exports to these markets showed that the main four regions "� CIS, Africa, Latin America and Asean markets "� had been growing at 30 per cent, 8.28 per cent, 14.72 per cent and 5.16 per cent, respectively.