"Indian Contract Manufacturing - A Hot Opportunity" is a recent report that gives first hand information on the thriving contract manufacturing market in India and the opportunities it is opening up for global players.
The Indian contract manufacturing market was worth US$ 874 Million in 2007. Although this market presently occupies a fraction of the total global opportunity, the future potential of the market seems immense. The Indian contract manufacturing market, with its low cost advantage, strong chemistry and reverse engineering capabilities, improving infrastructure and strong incentives from the government, is expected to grow strongly in the next five years. By 2012, the Indian industry is expected to grab nearly 8% of the total global market.
The report comprehensively evaluates the contract manufacturing market in India, analyzing its present market size, key segments, capabilities, and the future direction of growth. It also gives a statistical and analytical insight into the various factors vital for drug manufacturing, such as the competitive advantage/disadvantage of India vis-a-vis developed countries on various parameters such as cost, infrastructure, intellectual property and infrastructure etc.
Key Findings
- Indian contract manufacturing market is expected to grow in excess of CAGR 37% between 2007 and 2012.
- Most companies presently outsource APIs and intermediates from India. Moreover, India is also becoming a major hub for outsourcing formulations.
- Many Indian manufacturers have upgraded their manufacturing plants, which has enabled India to have a number of plants certified by the FDA, EDQM and various other regulatory agencies.
- The cost of secondary manufacturing in India is around 13%-15% of the cost in the US, the UK and Germany, with companies making substantial savings on costs of plant set up, labor and operations.
- India has more than four times the total drug manufacturing staff than the US and more than 12 times that in the UK.
- Growth of the contract manufacturing market is expected to provide a major boost to the pharma machinery market in India, which is expected to register revenues up to US$ 822 Million by 2010.
- Strong appreciation of the Indian Rupee against the US Dollar is having a detrimental effect on the profits of many Indian contract manufacturers.
Key Issues & Facts Analyzed
- Evaluation of the total size and growth rate of the contract manufacturing market.
- Analysis of key segments.
- Evaluation of India's capability in pharmaceutical manufacturing.
- Analysis of the total costs incurred while manufacturing a drug in India (such as cost of land, construction, labor, utilities, freight etc).
- Analysis of the country's pharma-related human resources.
- Study of the country's pharma-related infrastructure.
- Analysis of the key opportunities created by the industry.
- Analysis of key players, including their business overview, key facts, and financial information.
Research Methodology Used
Information Sources: Information has been sourced from books, newspapers, trade journals, and white papers, industry portals, government agencies, trade associations, monitoring industry news and developments, and through access to more than 3000 paid databases.
Analysis Method: The analysis method includes ratio analysis, historical trend analysis, linear regression analysis using software tools, judgmental forecasting, and cause and effect analysis.
Table of Contents
Section 1 Analyst View
Section 2 Global Contract Manufacturing Market
2.1 Rising Trend of Outsourcing
2.2 Market Analysis
2.2.1 Market Size
2.2.1.1 Chemical Synthesis
2.2.1.2 Formulations & Packaging
Section 3 India - Most Potential Contract Manufacturing Destination
3.1 Pharma Outsourcing Market
3.1.1 Contract Manufacturing Market
3.1.1.1 Chemical Synthesis
3.1.1.2 Formulation & Packaging
3.2 Manufacturing Analysis
3.2.1 Bulk Drugs
3.2.2 Formulations
3.2.3 Drug Packaging
3.2.4 Biopharmaceuticals
3.3 Cost Analysis
3.3.1 Employment Cost
3.3.2 Office Rental Cost
3.3.3 Industrial Land Rental Cost
3.3.4 Construction Cost
3.3.5 Cost of Utilities
3.3.6 Freight Cost
3.4 Analysis of Human Resources
3.4.1 Pharma Personnel
3.4.2 Pharma-related Degrees
3.5 Infrastructure Analysis
3.5.1 Manufacturing
3.5.2 Logistics
3.5.3 ICT
3.5.4 Energy Capacity & Production
Section 4 Industry Analysis
4.1 Market Drivers
4.1.1 Increasing Prevalence of Generics
4.1.2 Cost Advantage
4.1.3 Well-developed Infrastructure
4.1.4 Improved IPR Laws
4.1.5 Emerging Pharmaceutical Market
4.1.6 Huge Pool of Human Resources
4.2 Opportunities
4.2.1 Supplementary Services in Pharma Outsourcing
4.2.2 Third Party Logistics Market
4.2.3 Pharma Machinery Market
4.2.4 Real Estate Market
4.3 Challenges & Threats
4.3.1 Counterfeit Drugs
4.3.2 High Wage Inflation & Attrition
4.3.3 Currency Appreciation
4.3.4 Threats from China
Section 5 Key Players
5.1 Divis Laboratories Limited
5.2 Dr. Reddy's Laboratories Limited
5.3 Nicholas Piramal India Limited
5.4 Jubilant Organosys Healthcare Limited
5.5 Shasun Chemicals and Drugs Limited
5.6 Dishman Pharmaceuticals & Chemicals Limited
Figures
Figure 2-1: Global - Contract Manufacturing Market (in Billon US$), 2006 & 2007E
Figure 2-2: Global - Forecast for Contract Manufacturing Market (in Billon US$), 2008-2012
Figure 2-3: Global - Contract Manufacturing Market by Type of Manufacturing (%), 2006
Figure 2-4: Global - Chemical Synthesis Market by In-house & Outsourced Manufacturing (%)
Figure 2-5: Global - Contract Chemical Synthesis Market (in Billon US$), 2006, 2007E, 2010F & 2012F
Figure 2-6: Global - Contract Formulations & Packaging Market (in Billlon US$), 2006, 2007E, 2010F & 2012F
Figure 2-7: Global - Formulations Market by In-house & Outsourced Manufacturing (%)
Figure 2-8: Global - Contract Dose Manufacturing Market by Type of Drug (%), 2006
Figure 3-1: India - Pharma Outsourcing Market (in Million US$), 2004-2007E
Figure 3-2: India - Pharma Outsourcing Market by Segment (%), 2006
Figure 3-3: India - Forecast for Pharma Outsourcing Market (in Million US$), 2008-2012
Figure 3-4: India - Contract Manufacturing Market (in Millon US$), 2004-2007E
Figure 3-5: India - Forecast for Contract Manufacturing Market (in Millon US$), 2008-2012
Figure 3-6: India - Contract Manufacturing Market by Type of Manufacturing (%), 2006
Figure 3-7: India - Contract Chemical Synthesis Market (in Millon US$), 2006, 2007E & 2012F
Figure 3-8: India - Contract Formulations & Packaging Market (in Million US$), 2006, 2007E & 2012F
Figure 3-9: India - Bulk Drug Production* (in Billion INR), 2001-02 to 2006-07E
Figure 3-10: India - Formulations Production* (in Billion INR), 2001-02 to 2006-07E
Figure 3-11: India - Drug Packaging Market (in Billion INR), 2006-07 & 2011-12F
Figure 3-12: Global - Contract Biopharmaceutical Manufacturing Market (in Billion US$), 2004, 2006 & 2007E
Figure 3-13: Global - Forecast for Contract Biopharmaceutical Manufacturing Market (in Billion US$), 2008-2012
Figure 3-14: Global - Biopharmaceutical Manufacturing Market by Segment (%), 2007E
Figure 3-15: India - Biopharmaceutical Market (in Billion INR), 2002-03 to 2006-07 & 2011-12F
Figure 3-16: India - Relative Annual Cost of Bioscale-up Manufacturing w.r.t. Other Countries
Figure 3-17: India - Relative Annual Cost of Secondary Manufacturing w.r.t. Other Countries
Figure 3-18: India - Office Rental Cost w.r.t Other Countries (in US$/Sq. Metre), 2003
Figure 3-19: India - Industrial Land Rental Cost w.r.t. Other Countries (in US$/Sq. Metre), 2003
Figure 3-20: India - Construction Cost w.r.t Other Countries (in US$/Sq. Metre), 2003
Figure 3-21: India - Number of FDA Approved Plants w.r.t. Other Countries, 2006
Figure 3-22: India - Cost of Logistics as Percentage of GDP w.r.t. Other Countries, 2006
Figure 3-23: India - Average Distance Covered by Truck w.r.t. Other Countries (in Km/day), 2006
Figure 3-24: India - Average Turnaround Time at Ports w.r.t. Other Countries (in Hours), 2006
Figure 4-1: Global - Generic Market (in Billion US$), 2001-2007E & 2010F
Figure 4-2: India - Domestic Pharmaceutical Market* (in Billion INR), 2002-03 to 2006-07 & 2011-12F
Figure 4-3: Global - Supplementary Services in Pharma Outsourcing Market (in Billion US$), 2006 & 2010F
Figure 4-4: India - Supplementary Services in Pharma Outsourcing Market (in Million US$), 2004, 2006 & 2007E
Figure 4-5: India - Forecast for Supplementary Services in Pharma Outsourcing Market (in Million US$), 2008-2010
Figure 4-6: India - Logistics Market (in Billion US$), 2006 & 2010F
Figure 4-7: India - Outsourced Logistics Market (in Billion US$), 2006 & 2010F
Figure 4-8: India - Pharma Machinery Market (in Billion INR), 2004, 2007E & 2010F
Figure 4-9: India - Real Estate Market (in Billion US$), 2006 & 2015F
Figure 4-10: India - Attrition in Pharma Market w.r.t. Global Level (%), 2005
Figure 4-11: India - Currency Exchange Rate* (From US$ to INR), 2001-2008
Tables
Table 3-1: India - Bioscale-up Manufacturing Cost Model w.r.t. Other Countries (in US$)
Table 3-2: India - Secondary Manufacturing Cost Model w.r.t. Other Countries (in US$)
Table 3-3: India - Annual Cost of Pharma-related Labor w.r.t. Other Countries (in US$), 2004
Table 3-4: India - Cost of Utilities (Electricity, Gas, Water, Phone & Internet) w.r.t. Other Countries (in US$), 2004
Table 3-5: Cost of Freight to & from India w.r.t. Other Countries (in US$), 2004
Table 3-6: India - Number of Pharmaceutical Personnels w.r.t. Other Countries, 2003E
Table 3-7: India - Number of Pharma-related Graduate Degrees w.r.t. Other Countries, 2002
Table 3-8: India - Number of Pharma-related Masters Degrees w.r.t. Other Countries, 2002
Table 3-9: India - Number of Pharma-related Doctorate & Post Doctorate Degrees w.r.t Other Countries, 2002
Table 3-10: India - ICT Infrastructure w.r.t. Other Countries, 2007E
Table 3-11: India - Electricity Capacity & Production w.r.t. Other Countries, 2006
Table 4-1: India - Estimated Share of Counterfeit Drugs in Pharma Market (%)
Table 5-1: Divis Laboratories Limited - Key Financials (in Million INR), Mar 2006 & Mar 2007
Table 5-2: Dr. Reddy's Laboratories Limited - Key Financials (in Million US$), Mar 2005 to Mar 2007
Table 5-3: Nicholas Piramal India Limited - Key Financials (in Million INR), Mar 2006 & Mar 2007
Table 5-4: Jubilant Organosys Healthcare Limited - Key Financials (in Million INR), Mar 2006 & Mar 2007
Table 5-5: Shasun Chemicals and Drugs Limited - Key Financials (in Million INR), Mar 2006 & Mar 2007
Table 5-6: Dishman Pharmaceuticals & Chemicals Limited - Key Financials (in Million INR), Mar 2006 & Mar 2007
