SMEs to play an important role in Indian pharma
SMEs contribute 35-40 per cent to the industry in terms of production.
Mumbai, September 9, 2013: The small and medium enterprises (SMEs) are expected to play a very important role in the growth of the Indian pharma sector. SMEs already contribute 35-40 per cent to the industry in terms of production with a turnover of close to Rs 35,000 crore. It is estimated that the Indian pharma industry has around 9,456 units in the SME segment which accounts for close to 87 per cent in production by volume and 40 per cent by value.
The Ministry of Commerce has targeted Indian pharma sector exports to reach US$ 25 billion by 2016 at an annual growth rate of 25 per cent. In terms of exports, SMEs contribute 48 per cent to the country’s pharma exports.
As the Indian pharma SMEs form an essential part of the supply chain for the larger players, the sector derives its strength from the SME segment.
While Indian pharma SMEs have been focusing largely on the domestic market, the trend is changing very fast as now they have become preferred partners for the supply of active pharmaceutical ingredients (APIs) and finished dosages for Indian and foreign pharma firms.