Indian pharmaceutical industry continues to perform extremely well in the export front despite the slowdown in the US and European economies. A Pharmabiz study of India’s top 25 pharmaceutical companies during 2010-11 substantiate this growing domination of India in the international market. During 2010-11, these listed pharmaceutical companies recorded an export revenue of Rs. 47,446 crore as against Rs 41,355 crore in the previous year registering a 14.7 per cent growth. The exports of these companies during 2010-11 accounted for 64 per cent of their total sales of Rs 74,195 crore achieved during the year. What is remarkable in the last year’s performance is that the top five companies among these 25, accounted for almost 50 per cent of the export of Rs.47,446 crore. Ranbaxy Labs, now a subsidiary of Daiichi Sankyo of Japan, continues to be the largest exporter of pharmaceuticals from the country with international sales of Rs 6,772 crore during the year 2010-11 as against Rs 5,657 crore in the previous year. Dr. Reddy's remained the second largest exporter in absolute terms with an export of Rs. 5941 crore although export growth was only 4.3 per cent. Lupin stands at the third position with an export of Rs. 3,983 crore registering a 20.3 per cent growth over the previous year. Cipla and Sun Pharmaceutical are in fourth and fifth ranks with their international sales at Rs. 3,361 crore and Rs 2,898 crore during 2010-11. However the best performers during 2010-11 are companies like Panacea Biotech with an export growth of 94 per cent, Cadila Healthcare with 91 per cent, Neuland Labs with 41 per cent, Strident Arcolab with 36 per cent and another half a dozen companies achieving more than 20 per cent growth.
The study has not included the export figures of some of the large companies like Matrix Laboratories, Intas Pharma, Alkem Laboratories, Actis Biological, Mankind, Cadila Pharmaceuticals, Micro Labs, Serum Institute, Advinius, Unimark and Paras Pharmaceuticals as they are not listed in the stock exchanges. But, it is estimated that their overall sales including exports could be well over Rs.15,000 crore. Among this group, the sales figures of Matrix Labs, now a subsidiary of Mylan Inc. of the US, is available. The company achieved an export revenue of Rs 2,608 crore during 2010-11 which works out to almost 81 per cent of its gross net sales of Rs 3,219 crore. Out of 25 companies in the study, as many as 21 companies had a 50 per cent contribution from export to their total sales turnover during the year. The main thrust of Indian pharmaceutical exports continues to be the US and Europe although some exports are also going to Brazil, Japan and China. The export oriented growth of Indian pharmaceutical companies is going to continue in the years to come with a steady spurt in generic prescription in the developed world. With patent expiration of several key products expected soon, global demand for generic products is going to go up substantially in the next two to three years. And India, already a well established supplier of quality generics to the developed countries, should emerge as the largest supplier of pharmaceuticals to the entire world.