The Indian Pharmaceutical Industry – 2022

                                                                                                                  Written By : Srividya.

The Indian pharmaceutical sector has developed over time into a robust industry, rising at a CAGR of 9.43% over the past nine years, and is currently ranked third in pharmaceutical output by volume. Some of the key sectors of the Indian pharmaceutical business include generic drugs, over-the-counter medicines, bulk meds, vaccines, contract research & manufacturing, biosimilars, and biologics. India is home to the most US Food and Drug Administration (USFDA)-compliant pharmaceutical production facilities, with 500 API companies accounting for around 8% of the global API market.

Over 50% of the world's demand for various vaccines is met by the Indian pharmaceutical industry, as is 40% of the US market for generic drugs and 25% of the UK market for all medicines. The domestic pharmaceutical sector includes 3,000 drug companies and 10,000 production facilities. India occupies a key position in the global pharmaceutical market. The country also has a big pool of scientists and engineers who could advance the industry to new heights. Currently, Indian pharmaceutical companies provide more than 80% of the antiretroviral medications needed to treat AIDS (Acquired Immune Deficiency Syndrome) throughout the world. India has earned the title of "pharmacy of the world" thanks to the affordable prices and superior quality of its pharmaceutical products.

Market Size

Source: IBEF

 India is the biggest producer of generic drugs in the world, contributing 20% of the total volume supply and 60% of the demand for vaccines worldwide. Worldwide, the pharmaceutical industry in India is valued at $42 billion. The Indian pharmaceutical market grew by 17.7% yearly in August 2021, up from 13.7% in July 2020. India Ratings & Research predicts that the Indian pharmaceutical market would generate over 12% Y-o-Y growth in sales in FY22.

 

India is the world's No. 12 exporter of medical supplies. More than 200 nations throughout the world receive Indian medications for export, with the US serving as the largest market. The country is the world's leading supplier of generic medicines with 20% of global exports made up of generic drugs. In June 2022, Indian pharmaceutical and medicine exports totalled $2,119.08 million USD.

 

With a cumulative outlay of Rs. 6,940 crores (US$ 951.27 million) from FY21 to FY30, the Department of Pharmaceuticals introduced the PLI scheme to boost domestic manufacturing by establishing greenfield facilities with minimal domestic value addition in four discrete "Target Segments." This was done to achieve self-reliance and reduce import dependency on the nation's essential bulk drugs.

India's pharmaceutical sector contributes significantly to the country's exports and has attractive prospects for investment. India also runs a sizable number of facilities that adhere to Good Manufacturing Practices (GMP) standards set by the World Health Organization (WHO) and the United States Food and Drug Administration. Millions of people around the world receive affordable and low-cost generic medications from India (USFDA). India has traditionally retained the top position among countries that make pharmaceuticals. Over the next five years, India's medical spending is expected to increase by 9–12%, making it one of the top 10 countries in the world. Future domestic sales growth will also be influenced by companies' capacity to focus their product portfolios on chronic therapies for diseases including cardiovascular, anti-diabetes, anti-depressants, and anti-cancers, which are on the rise. The Indian government has taken numerous measures to cut costs and lower healthcare costs. The opening of pharmacies that provide low-cost generic medications as well as other government initiatives, such as the National Health Protection Scheme, which aims to provide universal healthcare, the aging population, the rise in chronic diseases, and other factors should all help to strengthen the Indian pharmaceutical industry. The quick entry of generic medications into the market has remained a priority and is anticipated to help Indian pharmaceutical companies. Additionally, the focus on preventive immunizations, life-saving medications, and rural health programs bode well for the pharmaceutical industry.

It’s “the time” for Pharmaceutical business owners to focus on their franchise business expansion and attract Investments, and business partners by franchising their pharmaceutical business. Connect with Sparkleminds today for all your franchise-related queries. Sparkleminds have 500+ franchise successful & satisfied clients, now it’s your turn! Join the successful community to achieve great heights in business. Act now!

How to choose the best business in Chennai?

Starting a business in Chennai

Selecting the appropriate franchise in any city, leave alone Chennai, is a very crucial step.  Before taking a decision, a few elements should be considered which will help you categorize the best business in Chennai. Depending on your investment and the industry you wish to invest in, there are many factors which govern your decision.

Cost

How much you would be investing into the franchise, is a crucial part.  If you are seeking to invest a modest amount, you should research the possible options that fall under your investment bracket, which will be beneficial and give you good returns on your investment.

 Brand

Another crucial aspect of operating a franchise is selecting the right brand.  You should only select brands that are well-known in the marketplace.  This will help you get a good customer base as you will be known and noticed by the brand you are dealing with.

 Location

To attract more clients, it is necessary to have a franchise in an area having good footfall, like high traffic marketplace, near bus stands, close to malls or any good location which can cater for the need of your business.

 

We at Franchisebazar, help entrepreneurs in getting their choice of franchise business in their desired city as per their desired investment.  Now that you are choosing to franchise business in Chennai, and we have considered some elements before taking up a franchise business in India, let us talk about Chennai and its opportunities. 

 

Chennai is the sixth most popular metropolitan city in India, and also the capital of Tamil Nadu, thus making it an economic powerhouse where there is a huge scope for new business opportunities.  Chennai has done extremely well and has grown across sectors in the past few decades, which has further resulted in many business opportunities for people wanting to start their businesses.

 

Chennai is famous for a lot of things, from its Chettinad Cuisine to art and culture and travel, the state is always bustling with people.  It is also known as the leading industrial hub.  The strong infrastructure has been able to position the city amongst the best industrial hubs in India. Let us look at some of the best business ideas in Chennai.

Franchise Model

One of the best businesses is to sell different products or brands' services in the form of a franchise business model.  Approaching a big brand which has multiple chains, you can buy their franchise to open it as one of your outlets.  Nevertheless, you can also start a FranchiseBazar and be the first in your city which helps entrepreneurs looking to get into the franchise business in India.  Even though this is a competitive industry, the returns are very good.  So if you are looking to start a FranchiseBazar and be the first in your city to own one, you can call and speak to our consultants who can guide you across this journey.

Café

Being a metropolitan city, the people of Chennai are always on the lookout for good cafes where they can hang out and spend some leisure time with some good food and beverages.  Today café chains are booming in India, so taking a café chain franchise is a growing opportunity in Chennai, as food and beverage are not season based, and they never fail.  Choose a nice location, pick a nice franchise brand and your work is done.

Travel and Tourism

There is a lot to explore around Chennai, from visiting some of the popular heritage places to having a great time shopping or even the beaches, Chennai has it all.  You can shop for traditional fabrics or even feast on authentic local food, people come to Chennai for many reasons.  You can have a taxi and travels business which will run successfully. Or a tourist guide who sells well-curated tours based on various interest of people or have a travel agency and manage hotel and travel bookings.  This is a growing opportunity as there is a lot to see in and around Chennai.

Local Food Business

Opening a local food stall, or a restaurant franchise is one of the most popular business ideas in India.  Especially in the south, this is food heaven.  Tourists are always on the lookout to try and find out places which cater to the local food, providing it hygienically and also at an affordable price.

Tea Franchise Business 

One of the most profitable businesses in India is the tea stalls which you can locate at almost every corner in most cities in India.  Nevertheless, it also requires a moderate amount of investment.  Setting up a tea stall at a prime location and gain you huge profits as Indians love their tea, no matter what time of the day it may be.  You can also take up a tea franchise of a well-known brand, and grow tremendous profits. 

To Conclude, 

Starting a business in Chennai is a very profitable idea.  Just remember to choose the right one with the amount of investment you have and you can expect good returns in a short period.  Nevertheless, we have our consultants at FranchiseBazar who can also guide you on which business is best for you in Chennai, what are the latest franchise opportunities in Chennai, best business opportunities in Chennai.  So call us today to keep yourself updated.