There are a large number of small players entering into the pharma machinery industry all over the country. These players at large are failing to meet the quality standards desired by the pharma industry. Pharma companies are not willing to accept the low quality machinery produced by these players. And there are another set of manufacturers who are ready to offer products at a much lower price than their competitors, just to grab the customer, thus killing the industry. For instance, a machine which is sold by one company for Rs 5 lakh is deliberately sold by competitors for merely Rs 3 lakh, V Ramprasad, managing partner, Millennium Industries told Pharmabiz.
Competition among the pharma machinery manufacturers is increasing day by day. And only good references are helping the manufacturers to get new orders, thus, delivering quality machinery at a reasonable price meeting the requirements of clients determine the success and future of each manufacturer.
It is significant to note that India and China are making machinery which are 10-20 times less expensive than that of those made in the US and Europe. But German made machines are unbeatable and it is difficult for Indian manufacturers to produce machines that match German quality, and prices are undoubtedly more than that of Indian machinery. Indian pharma machinery industry today accounts about Rs 2,000 crore and is growing at a rate of 10- 15 per cent every year, he added.
Automation has been given due attention in the last few years and pharma machinery manufacturers should look for producing machines which are upgraded, automated and require less manpower involvement as pharma companies expect this in the
coming years.
Both the state and central governments have never bothered to improve the pharma machinery industry. Organisations such as National Science Information Centre (NSIC) and Andhra Pradesh Technology Development Council (APTDC) should make more efforts towards offering technology services and supporting in development of new machines. Even pharma machinery associations should be more active. In AP there is not a single association, which addresses the issues and needs of pharma machinery manufacturers in the state, Ramprasad complained.
According to him, Mumbai based pharma machinery manufacturers are in a better position in India than manufacturers operating in other states. They have been successful in exporting their machines. The biggest challenge for manufacturers is to produce quality machines at a low price. And bulk drugs and formulations companies have become more quality conscious and thus quality of machinery is given the highest priority.
Millennium manufactures various machinery of which Vacuum Tray Dryer, Rotocone Vacuum Dryer, Blenders and Pulverizer are the key. The company caters to a wider needs of both bulk drugs and formulations (used in tablets, liquid and ointment sections) companies all over India. Dr Reddy's, Matrix, Arti Drugs, Sami Labs are some of its key clients.
The company established about eight years ago, is expecting ISO 9001:2000 certification by the end of May 2004, he revealed. The company is currently having a turnover of Rs 2-3 crore every year and wishes to achieve Rs 5-10 crore by next two years.
Millennium is not looking at exports keenly at present as domestic demand needs to increase first to meet the expansion needs. But in future, the company would explore export opportunities, particularly to countries like South Africa, Malaysia, Uganda, Dubai, Sri Lanka and Bangladesh. To meet export needs, one needs to invest a lot on upgradation of ones facilities. The company wants to design and launch new technology products and wants to become a global player in the future, he mentioned.