The increasing talent gap and lack of transparency across the supply chain are some of the key challenges facing the Indian pharma industry, said industry leaders at the CII Pharma Summit 2006: 'India Pharma Inc. - Competing Globally,' organized in Mumbai, this week.
The rising cost of talent acquisition, managing aspirations, hiring talent that 'fits' and managing employer image are some of the other concerns of the industry. Reduced wastage, a greater focus on value, improving affordability and acceptability with new concepts and technology are among the solutions offered to resolve challenges faced by the sector.
The Summit culminated with a CEO's Interactive Roundtable on "India Pharma Inc. - Competing Globally," where issues like contract research and manufacturing, the scope for generics in future, investments in research and two-way acquisitions in the globalization era were debated.
John Morris, global chair - pharma, KPMG, United Kingdom, emphasized that India has all the right fundamentals in place and CEOs of global pharma companies have India on their agenda. Dr Ferzaan Engineer, Chief Executive Officer, Quintiles Research (India) Pvt. Ltd. pointed out that while there were several challenges to be faced, tremendous opportunities also lay ahead.
K Raghavendra Rao, managing director, Orchid Chemicals & Pharmaceuticals Ltd., said the entry of global players in India should be considered an opportunity for distribution tie-ups, not a threat. Suresh G Kare, president - Indian Drugs Manufacturers' Association and chairman & managing director, Indoco Remedies Ltd., stressed that the future of Indian pharma companies lay in partnerships, so they should shed the fear of being taken over or having to take over a rival.
Dr Brian Tempest, chief mentor and executive vice - chairman of the Board, Ranbaxy Laboratories Ltd., underlined India's strengths in chemistry and cautioned that investments in this sector would not pay off immediately. Ajay Piramal, chairman - CII National Committee on drugs & pharmaceuticals, chairman - CII Pharma Summit 2006 and chairman - Nicholas Piramal India Ltd., emphasized that there were opportunities in every sector of the pharma industry. With global companies realizing that their value is in research, sales and marketing, not manufacturing, outsourcing will increase, he said.
Kewal Handa, managing director, Pfizer Ltd., stressed on the need for being competitive globally and domestically, if Indian companies wanted to attract investments in the area of R&D. Dr J M Khanna, executive director & president - Life Sciences, Jubilant Organosys Ltd., said that Indian companies must gear up to understand all aspects of globalization, not just manufacturing.
Ajay Vij, chief operating officer, Dabur Pharma Ltd. pointed out that companies should use the limited resources available to them in the best way possible. Dr Kamal K Sharma, managing director, Lupin Ltd., emphasized that forming the right alliances and creating the right kind of partnerships would matter the most in the long run.
The session was moderated by Senthil Chengalvarayan, managing editor, CNBC TV18, Television Eighteen India Limited.