The Indian pharma machinery as well packaging industries which have already made a mark on the world map is fast increasing its presence in the global marketplace, aver industry experts.
The Indian pharmaceutical machinery industry is a flourishing industry covering various segments like capsulation, tableting, material handling etc. The manufacturing facilities in India are being upgraded to the standards of the regulated markets. Today, India has the highest number of FDA approved facilities outside the United States.
The Indian pharmaceutical machinery manufacturers have huge potential and many international companies have already collaborated with Indian manufacturing companies. This has enabled Indian pharma industry to produce machineries at a price almost one third or one- fourth of the imported technology.
According to a Cygnus Research study, India's strength in low cost of manufacturing is well known in the global market. Machines available in overseas market are five times more expensive than Indian machines. Hence there is a growing demand for various machines like capsule polishing machines, cap sealing machines and de-blistering machines in the United States, Bangladesh,China, Pakistan and even in the domestic market. So, the MNCs are focusing on India when it comes to buying of high-quality-low-cost pharmaceutical machinery. It is one of the major drivers for the growth of export market in pharma machinery, the study adds
Indian pharma machinery industry is equipped with latest technology helping the industry from production to packaging. The technological upgradation of pharmaceutical machinery was much faster in India than in many other countries. From low-cost technological offerings to value-added advancements in engineering with integration of new-technologies, the Indian pharmaceutical machinery manufacturers have travelled a long way.
According to the Cygnus Research study,though smaller in terms of volumes, the pharma machinery industry has played a deciding role in the growth of Indian pharma companies and allowed to capture a sizeable portion of the global pharma market.
Indian pharma machinery market is driven by the pharma market by both formulation and bulk drugs business. In India, there are around 800 pharmaceutical manufacturing machines and allied utility services units in small and medium sector, with an estimated value around Rs 20 billion in FY10 and recorded at a 15 per cent CAGR during FY06-10. It exports to more than 80 countries including the US, UK and other developed countries, the study adds
The pharma machinery industry is quite bright and positive in the future. As per the Cygnus estimates, Indian pharma machinery market-is estimated to reach Rs 49 billion by FY15 and expected to grew at a 20 per cent CAGR during FY11 -15.
The Indian pharmaceutical machinery industry which has made a tremendous progress in the last two decades is poised to grow at a much faster pace if the Government heeds to the genuine pleas of the industry according to Rattan Singhania, Vice President , Indian Pharma Machinery Manufacturers Association(IPMMA).
IPMMA has already requested the ministry of commerce and industry for inclusion of pharmaceutical machinery in the list of products in connection with the ongoing preferential trade agreement with MECOSUR (A trade block of Argentina, Brazil, Paraguay & Uruguay to provide import tariff concession to given by the lead country Brazil). The association has received a very positive reply from the Ministry of Commerce and Industry, he said. The association has also made a representation to the ministry for lifting the trade embargo with Pakistan as this could open gates for a lucrative market, he added
Says Suresh Subramaniam ,Assistant General Manager Technofour Electronics Pvt. Ltd,.as compared to other nations the Indian pharma machinery manufacturers have larger presence in the global market. Thanks to the technical competency and dedication , Indian pharma machinery manufacturers provide cost -effective solutions and are recognized as major competitors for European machineries world wide.
Though Indian pharma machinery manufacturers is providing quality equipment and cost -effective solutions, they lag in documentation. However the same has improved considerably over a period of time, he added.
In the meanwhile the Indian pharmaceutical packaging industry is also witnessing a surge in growth. According to a Cygnus Research study,pharmaceutical packaging which occupies a significant portion of the overall drugs and pharmaceutical market in India, is growing at the same pace as that of the pharmaceutical industry.
Earlier while the requirements of pharmaceutical packaging focused exclusively on preserving the quality of enclosed medication,now, they are extended to cover such criteria as prevention of product tampering and counterfeiting, the assurance of product dispensing accuracy and the promotion of patient compliance with product dosage schedules.
Commenting on the current scenario of pharma packaging industry in India,Pankaj Shah,Director , Supack International says the industry in India has arrived on the global map. Pharma packs, be it cartons, plastic bottles, caps, labels etc are manufactured in India in compliance to world standards. In fact, these are exported to developed countries for their packing activities. Some of the Indian suppliers are approved by US FDA as well as other statutory bodies in other countries. The industry is growing at a healthy rate of 12 to 15 per cent with some segments at higher 20 per cent.
In spite of the competition from both within the industry as well as from outside industry captains have done well to absorb latest technology and expanded footprint in the market, Shah adds
Commenting on the advances in in India and globally ,he said price sensitivity has lead to many packaging innovations. While material down gauging is one area, development of economical materials with maintaining similar or higher performance is another area.
Green packaging is gaining ground in India as well. Pattern applied high performance adhesives are replacing LDPE laminations where heat sealability is required.
While temper evident packaging is growing well over 15 per cent, RFID packs are growing at around 26 per cent and coded packs are growing at around 14 per cent the same as security printed packs , he added.
Says Vimal Kedia, Managing Director, Manjushree Technopack Ltd,the pharma packaging industry in India is very dynamic and evolving in terms of new ideas and innovations. Many companies that were doing only glass based packaging have shifted to different packaging moulds in the recent years. This has helped the pharma companies boost their sale and bring down operating costs drastically. There has been a 15 – 20 per cent growth YOY in the entire pharma packaging market.
Like with FMCG, pharma packing too has gone beyond functionality. With intense competition among brands, in most categories, packaging could in some cases end up being the differentiator. The fast growing OTC market presents a huge opportunity for packaging design and innovations, he says
“One of the most obvious trends that you will see in this space is packaging of traditionally glass- based products like cough syrup in PET bottles. PET bottles are lighter than the glass bottles by almost 300 per cent , are child friendly and almost at par with the cost of glass bottles. Further, PET bottles are safer to use at homes and offer the same product protection as glass. Another fast growing trend in the market is packaging of capsules in small plastic containers, similar to western markets. For example, Himalaya Drugs now pack their LIV52 brand in plastic containers, which earlier used to be packed in blister packaging. After this change, the company has reported steady growth in sales”, he points out.
“Today if multinational pharma companies are looking at India to source bulk drugs it is for quality, quantity and price related reasons. And it is the quantity that makes attractive pricing possible. Similarly, in the case of packaging, substantial quantities will have to be outsourced into India before it starts making commercial sense to MNCs. In addition, the Indian packaging sector will have to invest substantially in both technology and capacity before they take on the outsourcing opportunities as and when it arises. Right now the domestic pharma sector itself offers plenty of opportunities that packaging companies will do well to grab with both hands” adds Vimal Kedia.
Says Ajit Singh , Managing Director ACG Worldwide , "with an increase in potent drugs in formulations and the advent of biotech products, we see great opportunity for containment systems - both in solid dosage manufacturing and also for injectables. ACG Pam is one of the first to introduce containment capsule fillers in India." "In pharma packaging, the higher speeds at which blister packing, cartoning, bottling and injection filling lines operate today have made product inspection a challenge. ACG Inspection has moved ahead here by providing customized camera systems that seamlessly integrate with all types of packaging” machines."
According to Amar K Bajaj, Managing Director, Armor Plast Ltd, market for moulds is growing and holds immense potential. The Bangalore-based company has its strengths in high quality precision injection, blow moulded components and containers for domestic and international companies.The sector has not witnessed slowdown in growth instead saw strong demand, he adds.
According to the Cygnus Research report,the total production of packaging machinery in value terms is estimated at Rs.260 billion in 2008-09, which has grown at a CAGR of 10 per cent over the period FY05-10. Due to lifestyle changes and advanced medical services, demand for packaging material is expected to be robust in next three years (FY11-FY13), the report points out.
Mergers and takeovers of medium and large Indian pharma companies will result in total modernization of packaging and packaging systems for domestic as well as export markets. With new drugs and formulations flooding the market, the packaging industry is developing innovative solutions to solve new challenges, the report adds.
“This industry is very big in the foreign countries. India is a growing power and international companies are looking at sourcing from India. This can grow into very large business if serious attempts are made by the manufacturers to adhere to international quality standard”, says Amar K Bajaj, Managing Director, Armor Plast Ltd.