Indian Pharma Industry: An Investment Opportunity - Expected to grow over 15 per cent per annum between 2015 and 2020, Pharmaceutical Unit (Tablet, Capsules & Syrup) Manufacturing Plant, Detailed Project Report, Profile, Business Plan, Industry Trends, Market Research, Survey, Manufacturing Process, Machinery, Raw Materials, Feasibility Study, Investment Opportunities, Cost and Revenue, Plant Economics, Production Schedule, Working Capital Requirement, Plant Layout, Process Flow Sheet, Cost of Project, Projected Balance Sheets, Profitability Ratios, Break Even Analysis

 

The Indian pharmaceuticals market is the third largest in terms of volume and thirteenth largest in terms of value. India is the largest provider of generic drugs globally with the Indian generics accounting for 20 per cent of global exports in terms of volume. India enjoys an important position in the global pharmaceuticals sector.

The Department of Pharmaceuticals has a Vision for the development of the IndianPharmaceutical Industry.  This Vision is –  

“To make India the Largest Global Provider of Quality Medicines at Reasonable Prices.”

The Vision is to be achieved as per the following Mission:

·         Develop Human Resources for Pharmaceutical Industry and Drug Research and Development

·         Promote Public‐Private Partnership for development of pharmaceuticals Industry

·         Promote Pharma Brand India through International Cooperation

·         Promote environmentally sustainable development of Pharmaceutical Industry

·         Enable availability, accessibility and affordability of drugs  

Pharmaceutical companies in India both Indian and foreign, manufacture bulk drugs in several therapeutic categories and the industry has facilities to manufacture various types of dosage namely capsule, tablets, injectable, orals, and liquids. The industry today can boast of producing the entire range of pharmaceutical formulations, i.e., medicines ready for consumption by patients and about 350 bulk drugs, i.e., chemicals having therapeutic value and used for production of pharmaceutical formulations.

According to the Federation of Indian Chambers of Commerce and Industry (FICCI), another apex industry association, there are some 6,000 firms engaged in the sector. In terms of revenue generation, there are 100 big companies (including subsidiaries of MNCs) each with sales of at least USD 650,000, 200 medium size companies with sales ranging between USD 210,400 and USD 650,000; and 5700 small companies with sales of less than USD 210,400. Because many of these companies focus on producing similar generic or same drugs, the industry is characterized by fierce competition and high volumes, razor-thin profit margins, overcapacity, and declining prices.

The growth has been driven by many factors, such as legislative reforms, growth in contract manufacturing and outsourcing, value added foreign acquisitions and joint ventures and India's acu-men and expertise in reverse engineering of patented drug molecules. India has, in the meantime, been trying to comply with the World Trade Organization's Trade Related Intellectual Property Agreement (TRIPs) obligations.

The Indian pharma industry, which is expected to grow over 15 per cent per annum between 2015 and 2020, will outperform the global pharma industry, which is set to grow at an annual rate of 5 per cent between the same period!. The market is expected to grow to US$ 55 billion by 2020.

Few Indian Major Players are as under

·                     A Tosh & Sons (India) Ltd.

·                     Aarti Industries Ltd.

·                     Agio Pharmaceuticals Ltd.

·                     Alintosch Pharmaceuticals Ltd.

·                     Anil Bioplus Ltd.

·                     Anil Starch Products Ltd.

·                     Astrix Laboratories Ltd.

·                     B A & Brothers (Eastern) Ltd.

·                     Caldern Pharmaceuticals Ltd.

·                     ExpicorPharma Pvt. Ltd.

·                     Fem Care Pharma Ltd.

·                     German Remedies Ltd.

·                     HiranOrgochem Ltd.

·                     Kedia Chemicals Inds. Ltd.

·                     KunshanRotam Reddy Pharmaceutical Co. Ltd.

·                     Larite Industries Ltd.

·                     Lyka Labs Ltd.

·                     Max Healthcare Institute Ltd.

·                     Midas Pharmasec Ltd.

·                     N G L Fine-Chem Ltd.

·                     Norris Medicines Ltd.

·                     Sanofi India Ltd.

·                     Sayaji Industries Ltd.

·                     Stellar Exports Ltd.

·                     Suyash Laboratories Ltd.

·                     United Breweries (Holdings) Ltd.

·                     Vellanova Pharmaceuticals Ltd.

·                     Vera Pharma Ltd.

·                     Vivo Bio Tech Ltd.

·                     Winmac Laboratories Ltd.

·                     Yogi Pharmacy Ltd.

 

Table of Contents

 

1.       Project Location

1.1.    District Profile & Geotechnical Site Characterization

1.1.1.Location & Geographical Area

1.1.2.Demographics

1.1.3.Languages

1.1.4.Map

1.1.5.Industry at a Glance

1.1.6.Large Scale Industries

1.1.7.Potential for new MSMEs

2.       Introduction

2.1.    Steps to Strengthen the Industry

3.       Brief Description of the Products

3.1.    TabletError! Bookmark not defined.

3.2.    Different Types of Tablets

3.3.    Capsules

3.4.    Components of Capsules

3.5.    Syrup  Error! Bookmark not defined.

4.       Properties of Drugs

4.1.    Physical Properties

4.2.    Chemical Properties

5.       Market Survey

5.1.    Drugs and Pharmaceuticals

5.2.    Bulk Drugs and Drugs Formulations

5.3.    Analgesics, Antipyretics and Tranquilizers

5.4.    Paracetamol

5.5.    Cardiovascular and Anti-T.B. Drugs

5.6.    Anti-asthmatic and Anti-malarial Drugs

5.7.    Antidiabetic-Insulin and Anaesthetics

5.8.    Antibiotics and Anti-Dysentery Drugs

5.9.    Vitamin-A and Other Vitamins

6.       Financials & Comparison of Major Indian Players/Companies

6.1.    About Financial Statements Of CMIE Database

6.2.    Profits & Appropriations

6.3.    Total Liabilities

6.4.    Total Assets

6.5.    Net Cash Flow from Operating Activities

6.6.    Section – I

6.6.1.Name of Company with Contact Details

6.6.2.Name of Director(S)

6.6.3.Plant Capacity

6.6.4.Location of Plant

6.6.5.Name of Raw Material(S) Consumed With Quantity & Cost

6.7.    Section – II

6.7.1.Assets

6.7.2.Cash Flow

6.7.3.Cost As % Ge Of Sales

6.7.4.Forex Transaction

6.7.5.Growth In Assets & Liabilities

6.7.6.Growth In Income & Expenditure

6.7.7.Income & Expenditure

6.7.8.Liabilities

6.7.9.Liquidity Ratios

6.7.10.Profitability Ratio

6.7.11.Profits

6.7.12.Return Ratios

6.7.13.Structure of Assets & Liabilities (%)

6.7.14.Working Capital & Turnover Ratios

7.       Export & Import Statistics Data of India

7.1.    Export Statistics Data on Pharmaceutical (Tablets, Capsules & Syrup)

7.2.    Import Statistics Data on Pharmaceutical (Tablets, Capsules & Syrup)

8.       Present Manufacturers

9.       Formulation of Tablets

10.   Formulation of Capsules

11.   Formulation of Syrup

12.   Various Forms of Formulation

12.1.Powders

12.2.Tablets & Pills

12.3.Liquids

13.   Manufacturing Process of Tablets

13.1.Ideal Tablet

13.2.Manufacturing Process:

14.   Manufacturing Process of Capsules

14.1.Manufacture of Hard Gelatin Capsule

14.2.Manufacture of Soft Gelatin Capsule

14.3.Cleaning and Packaging

15.   Manufacturing Process of Syrup

16.   Process Flow Diagram for Tablets

17.   Process Flow Diagram for Capsules

18.   Process Flow Diagram for Syrup

19.   Good Manufacturing Practice

19.1.GMP Norms for Pharma Sector Amended

19.2.Air Conditioning of Clean Rooms

19.3.The Clean Room

19.4.Room Classification

19.5.Types of Clean Rooms

20.   Auxiliary Equipments

21.   Intellectual Property Rights (IPR)

22.   Air-Conditioning System Design for Clean Facility

22.1.Design Objectives

22.2.Design Methodology

22.3.Building Design, Construction & Layout

22.4.Air Handling System Design

22.5.Air Flow Pattern

22.6.Pressurization of Rooms

22.7.Measurement of Pressure Gradient

23.   Merging ISO 9001 & CGMPS

24.   High Temperature Hepa Filters

24.1.ISO 14644-3 – A Room Qualification Document

25.   Effluent Treatment Plant

25.1.Waste Water Streams

25.2.Waste Water from the Pharmaceutical Industry

25.3.Water Quality Criteria

26.   Flow Sheet of the Effluent Treatment Plant

26.1.Flow Sheet of the Effluent Treatment Plant

27.   Suppliers of Plant & Machinery

28.   Suppliers of Raw Material

29.   Pharmaceutical Machinery & Product Photographs

29.1.Machinery Photographs

29.2.Product Photograph

30.   Plant Layout

 

PROJECT FINANCIALS

·         Project at a Glance

Annexure

·         Assumptions for Profitability workings ….…………………………………………....................... 1

·         Plant Economics…………………………………………………………………………….................... 2

·         Production Schedule……………………………………………………………………….................... 3

·         Land & Building…………………………………………………………………………….................... 4

§  Factory Land & Building

§  Site Development Expenses

·         Plant & Machinery………………………………………………………………………….................... 5

§  Indigenous Machineries

§  Other Machineries (Miscellaneous, Laboratory etc.)

·         Other Fixed Assets………………………………………………………………………….................... 6

§  Furniture & Fixtures

§  Pre-operative and Preliminary Expenses

§  Technical Knowhow

§  Provision of Contingencies

·         Working Capital Requirement Per Month………………………………………………................. 7

§  Raw Material

§  Packing Material

§  Lab & ETP Chemical Cost

§  Consumable Store

·         Overheads Required Per Month and Per Annum ……………………………………................. .8

§  Utilities & Overheads (Power, Water and Fuel Expenses etc.)

§  Royalty and Other Charges

§  Selling and Distribution Expenses

·         Salary and Wages ……………………………………………………………………………................. 9

·         Turnover Per Annum ………………………………………………………………………................ 10

·         Share Capital…………………………………………………………………………………................ 11

§  Equity Capital

§  Preference Share Capital

 

•        Annexure 1            ::        Cost of Project and Means of Finance

•        Annexure 2            ::        Profitability and Net Cash Accruals

§  Revenue/Income/Realisation

§  Expenses/Cost of Products/Services/Items

§  Gross Profit

§  Financial Charges    

§  Total Cost of Sales

§  Net Profit After Taxes

§  Net Cash Accruals

 

•        Annexure 3            ::        Assessment of Working Capital requirements

§  Current Assets

§  Gross Working Capital

§  Current Liabilities

§  Net Working Capital

§  Working Note for Calculation of Work-in-process

 

•        Annexure 4            ::        Sources and Disposition of Funds

•        Annexure 5            ::        Projected Balance Sheets

§  ROI (Average of Fixed Assets)

§  RONW (Average of Share Capital)

§  ROI (Average of Total Assets)

 

•        Annexure 6            ::        Profitability ratios

§  D.S.C.R

§  Earnings Per Share (EPS)

§  Debt Equity Ratio

 

•        Annexure 7            ::        Break-Even Analysis

§  Variable Cost & Expenses

§  Semi-Variable/Semi-Fixed Expenses

§  Profit Volume Ratio (PVR)

§  Fixed Expenses / Cost 

§  B.E.P

 

•        Annexure 8 to 11   ::        Sensitivity Analysis-Price/Volume

§  Resultant N.P.B.T

§  Resultant D.S.C.R

§  Resultant PV Ratio

§  Resultant DER

§  Resultant ROI

§  Resultant BEP

 

•        Annexure 12          ::        Shareholding Pattern and Stake Status

§  Equity Capital

§  Preference Share Capital

 

•        Annexure 13          ::        Quantitative Details-Output/Sales/Stocks

§  Determined Capacity P.A of Products/Services

§  Achievable Efficiency/Yield % of Products/Services/Items 

§  Net Usable Load/Capacity of Products/Services/Items   

§  Expected Sales/ Revenue/ Income of Products/ Services/ Items   

 

•        Annexure 14          ::        Product wise domestic Sales Realisation

•        Annexure 15          ::        Total Raw Material Cost

•        Annexure 16          ::        Raw Material Cost per unit

•        Annexure 17          ::        Total Lab & ETP Chemical Cost

•        Annexure 18          ::        Consumables, Store etc.

•        Annexure 19          ::        Packing Material Cost

•        Annexure 20          ::        Packing Material Cost Per Unit

•        Annexure 21          ::        Employees Expenses

•        Annexure 22          ::        Fuel Expenses

•        Annexure 23          ::        Power/Electricity Expenses

•        Annexure 24          ::        Royalty & Other Charges

•        Annexure 25          ::        Repairs & Maintenance Expenses

•        Annexure 26          ::        Other Manufacturing Expenses

•        Annexure 27          ::        Administration Expenses

•        Annexure 28          ::        Selling Expenses

•        Annexure 29          ::        Depreciation Charges – as per Books (Total)

•        Annexure 30          ::        Depreciation Charges – as per Books (P & M)

•        Annexure 31          ::        Depreciation Charges - as per IT Act WDV (Total)

•        Annexure 32          ::        Depreciation Charges - as per IT Act WDV (P & M)

•        Annexure 33          ::        Interest and Repayment - Term Loans

•        Annexure 34          ::        Tax on Profits

•        Annexure 35          ::        Projected Pay-Back Period And IRR

 

 

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