OPPapers.com

Pharma

Indian Pharma Industry

Industry Highlights
• Size of Industry is over $ 6.2 Bn with 20000 registered manufacturers.
• 1% by value and 8% by volume of the Global Industry.
• The industry is ranked fourth in the world in terms of production volume and 13th in domestic consumption value.
• Provides employment to 2.9 million people and meets almost 95% of the country’s pharma needs.

Growth Drivers
oSurge in Production
oLegislative Reforms
oContract Manufacturing & Outsourcing of clinical trials and R&D.
oM&As and Joint ventures by domestic players.

Role of Logistics & Supply Chain

žLogistics form a major chunk of the cost
•The major logistics costs in the pharmaceutical industry include packaging, distribution, etc.
•Hence, logistics comprises 40-50 percent of the costs in the pharmaceutical value chain.
žFactors driving the changes in the distribution cycle
•Value added tax
•consolidation of pharma companies
•emergence of pharma retail chains

Pharma Industry Supply Chain


Issues in Pharma IndustrySupply Chain

§Lack of Infrastructure
-India has limited transportation and warehousing capabilities including an inadequate and slow road network
§Untrained Manpower in Logistics
§Inventory reduction, Order cycle type reduction
-While companies have adopted global standards in production, testing and R&D they have neglected their supply chains.
§Integration of Domestic and International operations
-With Indian players foraying abroad for newer markets as well as sourcing needs, they have struggled to integrate their domestic businesses with the international operations.

Issues in Pharma Supply Chain
Pharma Specific Issues:
§Insufficient temperature-controlled storage and distribution
-Time and Temperature are critical factors in the pharma supply chain. Insufficient capacities throughout the supply chain
§Counterfeit Drugs
-Multiple storage points and multiple levels in the supply chain provides greater opportunities for...