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Industry pins hope on ‘Make In India’ initiative
A Raju, Hyderabad | Thursday, February 26, 2015, 08:00 Hrs  [IST]

With the central government giving highest priority to industry and pitching in a big way for ‘Make In India’ programme, the small and medium entrepreneurs (SMEs) in the pharma machinery and packaging industry are optimistic about the prospects of the industry and are hoping that the centre would come up with drastic changes in its existing industrial policy that would encourage the domestic manufacturers to take up bigger projects and also would incentivize the industry in the areas of research and innovation.

According to Rakhi, Proprietor of Disha pharmaceutical equipment manufacturers, though India has already become self-sufficient in manufacture of pharma machinery and packaging equipment, the pharma industry in the country is still preferring to import equipment from other countries. “India has already achieved self-sufficiency in pharma machinery and packaging equipment, but despite of our great achievements, our pharma industry still prefers machinery from other countries. Our products have been qualified by all parameters and standards and we are even exporting to other countries. With Make in India programme, at least the industry should open its eyes and check out for much affordable and better quality Indian pharma machinery rather than preferring high cost imported machinery,” says Rakhi.

In India there are hundreds of pharma machinery and packaging equipment manufacturers and majority of them are in the small and medium scale. The industry though has gained self sufficiency, is still lagging behind in bringing in innovative and large-scale products. The industry also feels that pharma industry should give the local manufacturers a chance to prove themselves to be on par with the international manufacturers. “I agree that there may be some variations in quality but nevertheless we are no less to any international manufacturers. The industry should give us a chance and support our equipment and we will see that their specifications are met in every respect,” added Rakhi.

Industry experts are of the view that the pharma manufacturing and packing machinery industry which is growing at 25-30 per cent per annum, with government’s initiative and with major policy changes, would gain further momentum in the coming days. “With Make in India programme from central government and initiatives from the local state governments in Andhra Pradesh and Telangana State, we are expecting better days for the pharma machinery and packaging industry.

The Telangana government is planning to set up a pharma city and AP government is planning to set up Pharma SEZ so we are hopeful that the industry will have better growth prospects in both states in the coming days,” opined Ramana Rathi, Director of Thermao Control systems in Hyderabad.

The leading companies like Bhagwati Group from India are world leaders in the design and manufacture of automatic machines for the processing machinery and packaging machinery for various industries. A wide range of high quality pharma machines and packaging equipment with enhanced technology are manufactured in India. Major pharmaceutical machineries manufactured in the country include filling machines for liquid and powder, washing machines, various types of labeling machines like sticker labelling, Self adhesive labeller, machines for tablet, capping, ointment, bottle inspection machines, turn table, blister packing and tablet press, liquid manufacturing plants, Vibro sifters, storage vessels, lab scale machines, packing conveyors used in pharmaceutical and other industries.

“We are a leading engineering company, with a reputation for designing, manufacturing, installing and commissioning fabricated stainless steel process and packaging equipment. We have earned the trust of many companies in the past two decades and currently serve them through two manufacturing facilities in India,” said a spokes person of the Bhagwati group.

Moving away from traditional equipment, majority of pharmaceutical manufacturers prefer to upgrade or install high end equipment to meet the international regulatory standards. “To meet the growing demand for quality we are adopting excellent engineering methods and incorporating cutting technology and professional approach. By upgrading our pharmaceutical machines as per the latest technology, we have always been successful in meeting the challenges arising out of the requirements set by the pharmaceutical industries. Our range of pharmaceutical machines have been exported to USA, France, Poland, Bulgaria, Saudi Arabia, Ecuador, Peru, South Africa, Egypt, Indonesia, UAE, Vietnam, Pakistan, Uganda, Philippines, Greece, Columbia, Malaysia, Nigeria, Ethiopia, Lebanon, Kenya, Kuwait, Sri Lanka, Ghana, Nepal, Ukraine, Bangladesh, Australia, Switzerland, Sudan, Russia, Yemen, Iran, Morocco, Malawi, Thailand, Tanzania, Canada, Belarus and many more,” said Raman Bhasin of Bhagwati group .

Indian pharma machinery products are also on par with the international makers and more over the cost of equipment are also 50 per cent lower than those of imported ones. If the government gives subsidies and tax incentives to the industry particularly the SMEs can definitely develop international quality equipment at lower costs. “What we are looking towards from the government is financial incentives for the SMEs and land for expanding our manufacturing capacity. We are also expecting the government to come out with certain loan schemes for the industry which would facilitate more entrepreneurs to venture into this sector,” said Anil Kumar of proprietor of a pharma machinery manufacturing company.

Challenges & opportunities
As the Indian pharmaceutical industry is gearing up for meeting the challenging times ahead, the pharmaceutical machinery manufacturers are forced to innovate or perish.

The pharmaceutical machinery industry grew tremendously in the 1970s, thanks to the government’s introduction of high import duties to deter increasing foothold of European manufacturers and encourage Indian manufacturing. Since then, the industry has progressed leaps and bounds as pharmaceutical companies got easy access to cost-effective machineries, giving the Indian pharmaceutical industry a huge boost.

Today, in the backdrop of numerous blockbuster drugs going off-patent globally, the Indian pharmaceutical industry has gained salience. The global pharmaceutical giants find it increasingly necessary to not only offer affordable medicines, but make them accessible to regions such as Africa. According to McKinsey’s report titled, “India Pharma 2020,” the Indian pharmaceuticals market will reach US $55 billion by 2020, not just in terms of scale but also volumes. This, in turn, will force pharmaceutical machinery manufacturers to innovate, offer advanced technologies, and yet maintain a competitive advantage (over European manufacturers) in terms of cost. One such pharmaceutical manufacturer is ACG Worldwide. With over 50 years of experience, the company offers a wide range of manufacturing and packaging solutions to the global pharmaceutical industry. Its offerings under pharma machinery include encapsulation machines, tablet presses, blister packing and cartoning machines.


Indian markets and growth prospects
Encouraged by the Indian government's Foreign Direct Investment (FDI) policy on pharma, allowing 100 per cent FDI in pharma sector through automatic approval route for Greenfield projects, the Rs 6,000-crore Indian pharma machinery industry, including Rs 1800-crore of export, is all poised for a rapid growth in the coming years. To further fuel its growth, the Indian pharma machinery manufacturers have embraced technological innovations. Many companies are also opting for the joint venture route with some of the leading names in Europe to bring across latest technologies to propel growth.

Besides this, technical expertise and know-how on compliance to the global regulatory standards are the USPs for the growth of Indian pharma machinery manufacturing sector. "This has led to rising global acceptance of Indian machinery and increased exports from India to different countries of the world. Technological upgradation has improved efficiency of Indian machines like never before and has also translated into a lot of repeat orders and strengthening of Brand India at the global level," says Rajesh Shah, president , Indian Pharma Machinery Manufacturers' Association (IPMMA).

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