 "Indian pharma machinery market to reach $ 1.78 bn by 2020")
Burgeoning demand for pharmaceutical products within the country and overseas is propelling the growth of pharma machinery market in India. The market is projected to reach $ 1780 million in revenues by 2020 from $ 920 million in FY2015. Two key factors for this 14 percent CAGR are the capacity addition for the generics production in the country and sales to newer export markets, according to a report released by UBM India and AGR Knowledge Services on the eve of CPhI (an exhibition of pharmaceutical ingredients industry).
About 800 pharmaceutical equipment and machinery manufacturing units cater to the demand of the domestic pharmaceutical industry. Gujarat and Maharashtra are key equipment manufacturing centres in the country with Haryana, Gurgaon, Faridabad and Ambala emerging as the new production hubs. India currently exports pharmaceutical machinery and equipment to over 80 countries globally with the key export destinations such as USA, UK, Middle East, EU, etc.
With regard to pharmaceutical products, the report stated that India exported $ 4 billion worth of drugs to the US, the top destination for domestic pharma manufacturers. Exports is expected to account for 72 percent of the total pharma production and reach a value of $ 40 billion by 2020.
In India, about 70 percent of the industry revenue is derived from generics, 21 percent from OTCs while the remaining 9 percent is from patented drugs.
“As the global demand for generics continues to grow, more investments are expected to flow in this segment. India, which is a significant player in the generics, will continue to flourish and enjoy investments in the pharma sector,” stated the report.
The Indian CRAMS (contract Research and manufacturing services) segment, valued at $ 9.3 billion in 2014, is estimated to grow by over 20 percent to touch $ 19 billion by 2018. The present share of Indian manufacturers in the global CRAMS segment is only 5 percent and is expected to rise to 7-8 percent, driven by higher growth.
About 800 pharmaceutical equipment and machinery manufacturing units cater to the demand of the domestic pharmaceutical industry. Gujarat and Maharashtra are key equipment manufacturing centres in the country with Haryana, Gurgaon, Faridabad and Ambala emerging as the new production hubs. India currently exports pharmaceutical machinery and equipment to over 80 countries globally with the key export destinations such as USA, UK, Middle East, EU, etc.
With regard to pharmaceutical products, the report stated that India exported $ 4 billion worth of drugs to the US, the top destination for domestic pharma manufacturers. Exports is expected to account for 72 percent of the total pharma production and reach a value of $ 40 billion by 2020.
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While India is the world leader in generic pharmaceuticals production, it is also a major vaccine producer exporting to over 150 countries. Critical and developed markets like US and UK are driving growth in the generics segment. Apart from the developed markets, Indian pharma companies have established a strong presence in other fast growing semi-regulated markets like Russia and, many African and Latin America countries.
In India, about 70 percent of the industry revenue is derived from generics, 21 percent from OTCs while the remaining 9 percent is from patented drugs.
“As the global demand for generics continues to grow, more investments are expected to flow in this segment. India, which is a significant player in the generics, will continue to flourish and enjoy investments in the pharma sector,” stated the report.
The Indian CRAMS (contract Research and manufacturing services) segment, valued at $ 9.3 billion in 2014, is estimated to grow by over 20 percent to touch $ 19 billion by 2018. The present share of Indian manufacturers in the global CRAMS segment is only 5 percent and is expected to rise to 7-8 percent, driven by higher growth.