India pharmaceutical industry has known presence in the world over. Many of the Indian firms have also successfully forayed into the Chinese market. According to CII, "It is very important to be present in China. Indian companies are keen on doing business in China as the large market cannot be ignored". Indian companies can use China as a manufacturing base to benefit from the low cost of capital, excellent infrastructure and business-friendly environment. CII says that many pharma companies have been in China for over five years.

However, a few of them are finding it difficult to sustain growth on account of pricing factor. Also, China has raised the cost of registration. The registration process now acts as a barrier for new entrants into the pharma sector.

Ranbaxy Laboratories Ltd, India's leading pharma giant, entered China during 1990 and formed a joint venture, Ranbaxy (Guangzhou China) Ltd, in 1993. The company commenced operations during 1995 and captured a significant market share. Its brand Cifran has since emerged as the market leader. With a sales growth of 87 per cent to US$ 12.3 million in the year 2003, Ranbaxy successfully established the JVs brand image in the market.

However, the sales during the first half of 2004 declined by 14 % and the company has made strategic changes in the product flow to products that have exclusivity. The company's sales for the first half of 2004 reached $ 5 million as against $ 12.3 million in the full year ended December 2003.

The company strengthened its presence in the high growth therapeutic segment of cardiovasculars with Simcor (Simvastatin) being rated among the top 10 new launches of the year 2003. Cepodem (cefpodoxime proxetil) also became the brand leader in the first year of launch. Cifran (Ciprofloxacin) brand continued to enjoy high levels of recognition amongst the medical fraternity, with a market share of 39.4%.

Eight new product filings were done and nine product approvals were granted by the State Food and Drug Administration (SFDA) in the year 2003.

Aurobindo Pharma, the fifth largest pharmaceutical company in India, has successfully commissioned and stabilized its manufacturing operations in China. The company commenced the operations during 2003-04 and achieved optimum levels of production in the first year only. The plant is a cGMP compliant fermentation facility for the manufacture of 1500 tonnes per annum of 6APA, a key raw materials for producing SSPs (Semi Synthetic Penicillins).

With commissioning of its China plant, the company is receiving assured supply of high grade/low cost raw material in the form of higher yielding strains of Pen G for its domestic operations. Aurobindo is now planning capacity expansion in China. The company is operating 12 facilities producing APIs and formulations and supplies to over 98 countries.

Aurobindo has made additional investment of Rs 42 crore (US$ 964 million) in its Chinese subsidiary Aurobindo (Datong) Bio-Pharma Co Ltd during 2003-04. The company has set up another subsidiary called Aurobindo TongLing (Datong) Pharmaceuticals Co Ltd to cater to the local API market in China. This subsidiary has set a plant to manufacture 1,000 tpa of amoxicillin 600 tpa of oral cephalosporins. The total income of these two Chinese subsidiaries reached at Rs 236.59 crore (US$ 5380 million) during 2003-04.

Orchid Chemicals & Pharmaceuticals has a strong position in direct export of oral products to China and has setup a manufacturing base to further strengthen its position. It is focusing more on Chinese market and it has increased its investment in its subsidiary in NCPC Orchid Pharmaceuticals Company Ltd (NCPCOP) to Rs 23.64 core (US$ 538 million) from Rs 17.91 crore (US $ 407 million)in the 2002-03. NCPCOP is a 50:50 joint venture in China with North China Pharmaceuticals Company. The joint venture company is adding to its turnover with largely specialized products, which are not presently exported by Orchid to China.

Aarti Drugs Ltd, a Rs 240-crore plus APIs and bulk drugs manufacturing company, is planning to expand its Chinese operations by setting up joint venture unit or considering acquisition of manufacturing facility. This will serve the local Chinese market for various high growth potential molecule, particularly, Tinidazole and Nimesulide and contract manufacturing which can be done at lower cost than India without compromising on quality.

Mumbai-based Lupin Ltd is one of the select Indian companies exporting bulk actives China. The main products sold in China by Lupin are 7-ADCA, cephalexin, cafactor and ethambutol, Lupin is the only company from India that exports ethambutol to the country.
Along with these Indian pharma companies, other major pharma firms doing business in China are Dr Reddy's, Knoll Pharma, , Wockhardt Ltd, Cadila Healthcare Ltd, Torrent Pharma Etc.