India's pharmaceutical machinery has shown significant activity, mainly during the last five years. The industry generates nearly $500 million turnover, 40 per cent of which comes from exports to countries around the globe. There are more than 350 facilities in India's pharmaceutical-machine manufacturing industry, in categories like instrumentation and process control, lab equipment, pharma research and development (R&D) tools and techniques, pharmaceutical machinery, packaging material and machines, plant design and engineering, pharmaceutical process technology and software, according to Indian Pharmaceutical Machine Manufacturers Association (IPMMA) figures.
Established in 2001, the IPMMA has unified 200 companies in the sector with a common goal of establishing and exchanging knowledge resources and keeping its members updated on global trade and technological developments.
Indian machine makers are rapidly specializing, like the pharmaceutical industry, as needs for high value-added services and products increase. Electrolab's director, Amit Marfatia, describes how the company made a niche for itself with testing equipment. In two years, the company reengineered and developed one that delivered better accuracy, he said.
Marfatia's partner and Electrolab's technical director, Bharat Zaveri, describes the innovation and design needed to achieve the task. "Controlling accurate rpms was the most difficult part of creating the machine. So, we devised the AC motor controller with a feedback system and with that, the rpm was very consistent. Specification back then by the United States was ±5 rpm. We were able to create it at ±1 rpm."
Many machinery makers achieve innovation by reverse engineering a process or an existing solution to enhance performance and develop new applications. This technique allows them to gain a competitive advantage over other industry competitors. Innovation can give a company a competitive advantage. Producing the same quality equipment for much less cost, however, is the main competitive advantage they have.
Consequently, India's machinery makers carry the stigma of producing "cheap" equipment. Western manufactured equivalents are at least 10 times more expensive. "The price of the whole Indian machine could be equal to just the packaging cost of the European machine. The vast difference in price for similar equipment, in Europe or the United States, is staggering when compared with the lack of difference in the actual quality or functionality," comments an anonymous IPMMA committee member.
Indian drug makers see little difference in quality between Indian and Western machines. An increasing number of foreign pharmaceutical-machine manufacturers also have recognized India's achievements and evolution in the industry.
However, the primary concerns of European and US brand-name manufacturers collaborating with Indian companies are IP protection and the necessary legal framework to enforce their claims of patent infringement. Several Indian machine makers have made great efforts to protect the IP interests of their foreign partners.
Indian pharmaceutical-machine makers and their Western counterparts increasingly are exploring collaborations and partnerships with each other to innovate or share new technology. Together, they are targeting more price-conscious developing countries.
Interest in trading directly with the West appears to be fading. On the other hand, hardly any machinery maker denied exploring opportunities with Western companies in more speculative markets such as South America, Africa, Southeast Asia, and Eastern European countries.
And Indian machine makers are well poised to exploit international markets and opportunities. Paralleling the growth of Indian pharmaceutical companies, IPMMA reports an annual growth rate of 10% for the industry, nearly twice that of the European and US pharmaceutical-machine industries' recorded growth. Certain IPMMs have reported triple-digit growth. Against the background of a growing economy and exports that have doubled annually during the last two years, IPMMs are forging a new image by jumping up the value chain and changing from the imitators to the innovators of technology. They manage to emerge as potent partners for Western players willing to step in the Asian foray with fresh competitive advantages. For decades, manufacturers observed their competition closely. Now is the time for them to align competencies and exchange know-how and experience to go the next mile. Like the pharmaceu-tical industry, the machine-making industry has proven its worth.
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