History
The Indian pharmaceutical industry has a long and rich history dating back to the 19th century.
The first pharmaceutical company in India, Bengal Chemicals and Pharmaceuticals, was
established in 1901. However, it was in the 1950s and 1960s that the industry began to take off
due to the implementation of government policies aimed at encouraging indigenous drug
manufacturing.
In the 1970s, India became one of the first countries to implement a patent law allowing generic
drug production. This led to the growth of the generic drug industry, which has significantly contributed to the country’s economy.
Today, India is the largest provider of generic drugs globally, with the Indian pharmaceutical
industry accounting for approximately 3.1% of the global pharmaceutical industry in terms of
value and 10% in terms of volume.
Major Players
The Indian pharmaceutical industry is valued at around $41 billion and is expected to reach $65 billion by 2024. The industry is expected to grow at a CAGR of 11.8% from 2019-2024. The Indian pharmaceutical market is highly fragmented, with over 10,000 registered players. However, the top 20 companies account for approximately 60% of the market share. Some of the major players in the Indian pharmaceutical industry include Sun Pharmaceutical Industries
Limited, Dr Reddy’s Laboratories, Cipla Limited, Lupin Limited, and Aurobindo Pharma
Limited.
My Opinion
According to a report by the India Brand Equity Foundation, the Indian pharmaceutical industry
is expected to grow to $100 billion by 2025. The report also predicts India will become the third-largest global generic API (Active Pharmaceutical Ingredient) merchant by 2022. The demand
for affordable healthcare and the increasing prevalence of chronic diseases will drive the
industry’s growth. However, challenges such as regulatory compliance, intellectual property
rights, and pricing pressures are expected to impact the industry’s growth.
The pharma industry was one of the few significant industries spared by the sudden downturn
caused by the Coronavirus, with projections showing this industry will reach a valuation above 100
billion $ by 2025. The future is bright for people looking to play a safer bet for 6-12 months. The
stocks of Dr Reddy’s & Sun Pharmaceutical seem ideal. Still, I believe these are way too
safe stocks to look for when Bank Nifty is also projected to grow exponentially. If
I had a corpus of 50,000; I would invest 10K or, at max, 15K in the pharma industry to safeguard
my money in the long run.
Citation
- https://www.marketwatch.com/press-release/hospital-furniture-market-2023-to-2030-shareglobe-key-updates-demand-size-and-industry-forecast-2023-02-24?tesla=y
- https://www.unleashedsoftware.com/blog/the-key-coffee-industry-trends-for-2021-beyond
- https://www.ikrispharmanetwork.com/generic-medicine-suppliers-india/
- https://news.marketersmedia.com/boat-quay-sg-hdb-apartment-to-buy-new-luxurywaterfront-for-sale-in-district-01/89090166
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