India Pakistan Trade Unit
Medical Technologies Sectors Reviews
Definition and scale of sector
- Polymer/metal components,
- Electronics/electromechanical sub assemblies,
- Medical instrumentation,
- Pharmaceutical production, wholesaling
Why the sector was chosen in the West Midlands
- High rate of growth but from a low case.
- Full role played by the medical market place on regional industry is understated given the role played by industries that supply multiple markets e.g. polymers.
- Higher Education based investments demonstrate a potential for spin off activity.
Opportunities for diversification. Major training region in Medical Schools and CE for the NHS.
Pharmaceuticals Sector Review from UKTI
Nature of Market
The Indian Pharmaceutical sector is highly fragmented with over 20,000 registered units. The leading 250 pharmaceutical companies control 70% of the market, with the market leader Glaxo SKB having only a 5.7% market share (FY 2000). The top 10 companies cover around 31% of the pharma market. Because of Government price controls and the fragmented nature of the market, it is an extremely competitive industry which has evolved around the opportunities presented in the regulated environment:
Pharmaceutical Sector Opportunities from UKTI
Expanding exports to India / neighbouring countries through
- Marketing tie-ups: The Indian pharmaceutical industry is keen to establish international tie-ups for co-marketing new products in India.
- Contract manufacturing services offered by Indian pharma companies, for sales of these medicines in the domestic market or for third country exports. This is an area where collaborations/tie-ups are keenly being sought by Indian pharma companies.
- Pharma Machinery: The presence of a large number of formulations manufacturing companies offers good scope to suppliers of sophisticated pharmaceutical plants, machinery, bottling and tabletting lines, capsule filling and sealing machinery, laboratory and QC instrumentation and many other types of equipment.
- Facilities Planning Consultancy/UK MCA Regulatory Approvals: There are also significant opportunities for pharmaceutical plant design consultancy and related services.
Cutting Costs on the Research & Development phase of NCEs through:
- Clinical Trials - Reduction of development costs, through quick patient enrollment, a direct function of India's large population and the prevalence of a wide spectrum of disease conditions.
- Contract Research - Reduction of research costs. India has a large pool of research chemists and scientists. Many Indian companies are seeking tie-ups for manufacture of generic drugs which are likely to go off patent over the next few years.
Pharmaceuticals Sector Doing Business from UKTI
Key Methods of Doing Business
A new entrant to the Indian market should consider on one of the following options, depending on the expected volume of business, the nature of business (whether it's an Active Pharma Ingredient/generic bulk drug or a pharma product), market potential and its long term strategy for the Indian market.
- To appoint a distributor : For many companies this is the ideal entry option, which does not require much in the way of resources. But the selection of the right distributor is essential. For most industrial products, one exclusive indenting agent or distributor is the most common arrangement.
- Liaison Office : A liaison office is free to undertake market development activities but is not allowed to transact any business. Expenses of these type of offices must be met through inward remittances from the Head Office abroad. The Reserve Bank of India (RBI) grants approval for the opening of such offices.
- Branch Office : Foreign companies engaged in manufacturing and trading activities abroad may set up a Branch Office to undertake buying and selling activities in India. A branch office may render technical support and professional consultancy services but it is not allowed to undertake manufacturing activities. Permission from the RBI is required to set up this type of office.
- Joint Venture/Wholly Owned Subsidiary : A foreign company can commence operations in India through incorporation of a company under the provisions of the Indian Companies Act (1956). Foreign equity in such companies can be up to 100% depending on the business plan of the foreign investor and prevailing investment policies of the Government. Although in most cases foreign investments can be approved through the Automatic Approval route by the RBI, some cases that do not meet the standard guidelines require specific approval from the Foreign Investment Promotion Board.
Before signing any agreement, it is advisable for any overseas company to consult a lawyer.
Biotechnology Sector Review from UKTI
Following the phenomenal success of its information technology industry, India is fast emerging as an important player in the biotechnology sector in the Asia-Pacific Region. The large pool of scientific talent available at a reasonable cost, a wealth of R & D Institutions, a rich and varied bio-diversity, strong IT skills and an English speaking population has placed India favourably in the global market.
A few years ago India had only 30 biotech companies worth talking about. Today about 280 that are active in the modern biotechnology segment with combined revenues of $1billion enable the Indian biotech industry to forge business links across the world (Source: Biospectrum-Able Biotech Survey, 2005). In 2004-5, the Biotech industry registered revenues of $1.07 billion a 36.55 % growth compared to the previous year. But like elsewhere, the sector in India continues to face inadequate venture funding, high cost of infrastructure etc.
While India has long been practising conventional methods of biotechnology, the use of modern biotechnology is relatively new. So it still needs to contend with vital issues such as intellectual property rights and other regulatory matters. The Government of India has taken several initiatives to change the perception of the IPR System in the Country and its implementation mechanism. However, several Indian biotech companies have managed to cross these IP hurdles to work with international partners through confidentiality and non-disclosure agreements.
Healthcare Market in India from IBPN
Sector Overview (India)
Tariffs and Regulations
Sector Overview (India)
India has a low healthcare spending and a limited availability of hospitals for medical treatment. Although many private companies have set up healthcare facilities in the last two decades, few have grown large enough to support the high costs of medical equipment and technology.
Recent major regulatory reforms have improved the growth prospects for health insurance and, as a result, a large section of middle income families will be able to afford healthcare services leading to high demand. There are a few large healthcare companies in India such as Apollo, Fortis and Max India. These companies provide specialised healthcare and have been successful in catering to the growing demand for high quality services in areas such as cardiology, nephrology, and geriatrics.
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