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Pharma Industry India

In: Business and Management

Submitted By jaglan28
Words 3952
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1) Pharmaceutical Industry in India:
India is the third largest pharmaceutical market in the world in terms of volume. The market is believed to grow at a compound annual growth rage (CAGR) of 14-17 percent in between 2012-16. There has also been a considerable growth in the levels of pharmaceutical exports from India. The industry started picking momentum in the early 1960s, with government actively encouraging the sector with the Patents Act. However, the liberalization of 1991 enabled the industry to become what it is today.
Many of the Indian companies principally observe reverse engineering of the new processes for manufacturing drugs at low costs. Although some of the companies have taken baby steps towards innovating newer drugs, the industry as a whole tends to follow this business model. The lack of patent protection, on the other hand, makes India undesirable for multinational companies that have dominated the market. So the pharmaceutical market in India has a tremendous potential for indigenousness. In this context, comparing a global pharmaceutical company with its Indian counterpart becomes evident.

GlaxoSmithKline and Ranbaxy: A Comparison

GlaxoSmithKline is a British multinational pharmaceutical company also dealing in biologics, vaccines and consumer healthcare. Headquartered at London, it is the world’s sixth largest pharmaceutical company. The company was established in 2000 by the merger of Glaxo Wellcome and SmithKline Beckman Corporation. A giant with around 99,000 employees, GlaxoSmithKline recorded a revenue of 25.6 billion pounds in 2013. Net income was recorded 5.2 billion pounds, while operating income stood at 7.7 billion pounds.

Ranbaxy Laboratories Limited is an Indian multinational pharmaceutical company incorporated in India in 1961. It is headquartered at Gurgaon, India. The company went public in 1973 and Japanese…...

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