From a minnow till the early '70s, the Indian pharmaceutical machinery industry today has taken major strides transforming itself into a flourishing one showing remarkable progress in upgradation and advancement of technology in machinery. Today, the country is in the forefront to offer value-added engineering with integration of new technologies, making machines which are 10-20 times less expensive than machines produced in the US and Europe. Thus proving to the world that Indian manufacturers can now produce international quality at affordable prices.
Many foreign companies find it cost effective to work in the form of collaborative ventures with Indian partners. The number of joint ventures between international and Indian machinery manufacturers is a testimony to the fact that the Indian manufacturers of machineries understand the stringent needs of pharmaceutical industry.
The Indian pharma industry has always been open to new ideas and new technologies. Perhaps this openness to things new is the main reason for the rapid growth of the Indian pharma industry. Since the acceptance levels of machines made in India are high, Indian Indian pharma machinery manufacturers could also grow along with the pharma industry.
With the availability of cost-efficient man power, highly skilled and experienced engineers and low capital investment on plant and machinery, Indian has earned the reputation of a hub for manufacturing low-cost pharma machinery. The pharma machinery sector has proved to be the backbone of the Indian pharma industry providing efficient machinery and gadgets at highly competitive prices.
The Indian pharma industry was dominated by imported machines during the sixties and seventies. The move from being an import-dependent sector to indigenous engineering companies received an impetus due to foreign exchange shortages. The government imposed heavy import duties and restrictive import licensing policies. This turned out to be a blessing in disguise, because that brought to the fore India's own engineering minds, who soon started making pharma machinery at much more cost effective rates.
The fact pharmaceutical companies were compelled to look elsewhere for their machine requirements, encouraged Indian engineering enterprises to manufacture machines locally. However this was a great and challenging opportunity for the Indian small-scale engineering companies. Thus hundreds of machinery manufacturers mushroomed to cater to the needs of numerous pharmaceutical companies over a period of time.
It is the initiative of these Indian engineer entrepreneurs that has today resulted in Indian pharmaceutical manufacturing costs being much lower than other developing countries This was made possible by the huge savings on capital investment of plant and machinery, besides the cheap technical manpower costs.
Pharmaceutical machineries made by India are installed and under operations at FDA-approved manufacturing facilities in the US, Australia, Africa, etc. meeting international standards and parameters to complete satisfaction. As these countries mandate proper validation of the products the importance of machinery that incorporate advanced technologies are also increasing For validation of the products, the machine also should be fully equipped.
The credit for the high credentials goes to the strict quality standards adopted by pharmaceutical machinery manufacturers in India. This has helped many Indian companies to enter into technical tie-ups joint ventures with American. European and Southeast Asian companies for the manufacture of their products in India, which are being marketed in all Asian and CIS countries
Now the machine manufacturers are upgrading themselves by investing in knowledge. Many pharmaceutical machinery manufacturers have begun to visit various countries to learn the latest developments in technology to improve their production line.
The rise in joint ventures between foreign and Indian pharmaceutical companies proves that India can make world-class products at affordable prices. There are also significant opportunities for pharmaceutical plant design consultancy and related services, especially for large companies adopting USFDA and UKMCC standards. Overall, being the lowest cost producer combined with FDA-approved plants, India promises to be a global outsourcing hub for pharmaceutical products.
The growth in advancement and upgradation of technology in machinery has been faster in India. With almost low technology offerings in the initial stage, the Indian machinery today is considered as one that can offer value added engineering with integration of new technologies. Various international companies found it cost effective to work with Indian partners in the form collaborative ventures.
An increasing number of foreign pharmaceutical-machine manufacturers also have recognized India's achievements and evolution in the industry. Indian machines are manufactured and used in accordance with international standards and do not hazard the inspection and approval of their facility.
Indian pharmaceutical-machine makers and their Western counterparts are increasingly exploring collaborations and partnerships with each other to innovate or share new technology. Together, they are targeting more price conscious developing countries. In India there are around 800 pharmaceutical machine manufacturing and allied utility service units in the small and medium sector. Though only few companies have made a mark in the area of branded market, a majority of these units undertake job works and supply of custom made machineries taking the location advantage of buyers.
The sheer size of the country itself is a major strength for the industry. The pharma machinery manufacturers need to understand that India as such offers a huge domestic market. If all the manufacturers try to leverage their respective strengths and carve out niche positions then it would be of great benefit to the industry.
However there are machinery makers who want to cash in while the sun shines. Their method is quite simple. Churn out low quality machines and sell them cheap. This in a way is having a snowballing effect on the industry as a whole and leaves a bad name for the industry as a whole.
A lot of competition prevails in the export markets. It is a very tough market to conquer. The Indian machinery manufacturers have to deal with Chinese machinery on the price front and the European machinery on the quality front. So while negotiating a deal, one has to keep all the aspects and factors in mind. Despite the headwinds of the export markets , Indian manufacturers do successfully manage to bag orders.
Joint ventures and syndication within Indian machinery manufacturers would go a long way in lifting the industry to newer heights. However instead of waiting for pacts at the global level it is essential to that domestic industry joined hands for the better future for the industry. Local manufacturers could opt for linkages within themselves to consolidate their position. In the long run, this would have a very positive impact on the quality front and the quality levels can improve way beyond anybody's expectations.
With the kind of backing the industry has from the domestic pharma industry and the food industry, the machinery segment has a very bright future. Like information technology, the Indian machinery industry is all set to make in-roads in the various markets of the world to lead a manufacturing revolution.