Indian Pharmaceuticals Industry Poised To Achieve Steady Growth

Several industry reports and studies have highlighted how the pharmaceuticals industry in India is poised to touch 11% of growth over the next couple of years for achieving more than $60 billion with regard to overall size. These figures have been projected by CARE Ratings with increasing share in exports. Key industry growth drivers will include the capabilities of leveraging opportunities provided to Indian pharma entities owing to patent drug expiry factors worldwide and also regulatory risks coming down and adoption of several blueprints for de-risking raw material dependency on China. Other reasons could be robust industry fundamentals along with a growing trend towards PE (private equity) investments. Tapping into these available opportunities, CARE Ratings is anticipating stability of credit risk profiles for all its rated entities throughout the 2022 and 2023 financial years.

The market size of the Indian pharma sector touched $45 billion for FY21 and it ranked third worldwide with regard to volumes and ranked at 13th by way of value terms. The reason for higher ranking with regard to volumes and lower rankings in terms of value could be the generic segment dominance of the Indian pharma segment. CAGR (compounded annual growth rate) of the industry has been about 7.2% throughout the period between FY2017-2021 while posting 12% of growth throughout the Financial Year 2021. The domestic Indian pharma segment was at approximately $18 billion throughout FY2017 and has posted 4.5% in CAGR for achieving $21 billion in the FY2021 period. The pharma exports also accounted for $17 billion in FY2017, indicating CAGR of approximately 10% for touching $24 billion in FY2021.

This presents promising growth opportunities for leading pharmaceutical chains in various segments of the industry. One of the leading players is AllDayChemist.com and it is a professional generic drug distributor that offers formulations and drugs for patients globally. The entity aims at ensuring generics at the right value without any quality compromises. The brands offered by AllDayChemist.com are produced in facilities that have obtained approval from leading regulatory authorities in their respective countries or markets. The heartening developments in the Indian pharma sector should spur more entities to expand on a bigger scale.