Buoyed 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 greeenfield 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 major USPs for the growth of Indian pharma machinery manufacturing sector. Says Rajesh Shah, president, Indian Pharma Machinery Manufacturers' Association (IPMMA), "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."
Pharmaceutical machinery manufacturers in India have a unique advantage over its overseas counterparts. Not only do they have to cater to the needs of the rapidly growing pharma industry at home but they also have to supply their machinery to the expanding pharma markets of the world. Indian pharma machinery manufacturers are not looking at the lucrative markets like Spain, Norway, Sweden, Australia, New Zealand, Finland, South America, Malaysia, Thailand, Indonesia, Vietnam and South Africa.
With Indian pharma machines available at one-third of the cost compared to that of European and US products, machines manufactured in India are significantly less expensive than their counterparts that are manufactured in developed countries. This has prompted global MNCs to look at the Indian manufacturers. Besides, availability of raw material in India like iron, steel, etc., has been able to create a conducive environment for the market to grow.
Further, better adaptability of Indian machines to the pharmaceutical manufacturing requirements in most of the countries across the world and strict GMP compliance by Indian machinery manufacturers are the major factors responsible for a growing demand from these markets.
Paresh Jhurmarvala, CEO, GPE Expo Pvt Ltd avers that trade shows like Pharma Pro&Pack Expo and iPhex India 2013 which saw the participation of 447 pharma manufacturing companies from 16 countries in Mumbai reveals the potential of the rapidly growing pharma machinery sector. "Pharma industry offers tremendous scope to the machinery manufacturers. Machinery manufacturers can therefore exploit the untapped potential of the industry by providing necessary machinery with proper design, ease of user application, simple maintenance and validation protocol for the new equipment," Jhurmarvala explains.
Talking about the importance of showcasing the products at a global level, Jhurmarwala adds, "Pharma Pro&Pack Expo 2013 has remained a proven launch-pad for micro to large scale pharma machinery manufacturers to exhibit their products/services. The forthcoming shows will be highly resourceful in showcasing the latest pharma manufacturing technologies."
New technology and awareness
Globally mindset of manufacturers is changing and so is the overall scenario. There is a growing understanding that to compete at the global level the most important element is to adopt cutting edge technology. Says Mahendra R Mehta, CEO, Parle Global Technologies Pvt Ltd, "This growing understanding has led most of the manufacturers to re-engineer their facilities by including high tech CNC machines, digital technology to manufacture components, assemblies and keeping themselves abreast of all the latest technological developments taking place across the world." More and more Indian machinery manufacturers are developing this mindset and attitude that in order to conquer the world not only you need to have competitive pricing but also one should be able to supply cutting edge technology.
Pharma packaging
Indian pharma packaging industry which is worth about USD 23 billion is growing at a rate of 15% annually. Sophisticated drug products, stringent government requirements and more prominent players with new emerging markets have increased the demand for pharmaceutical packaging material. According to a report by the Freedonia Group, World pharmaceutical packaging demand will increase 6.4 percent annually to USD 90 billion in 2017. Based on the operation of extensive and diverse drug-producing industries, Western Europe, the US, and Japan will account for nearly 60 percent of this amount. Brazil, Mexico, and Turkey will also evolve into fast-growing pharmaceutical packaging product markets as drug-producing sectors are upgraded and diversified, especially in the area of generic drugs.
Global demand for primary pharmaceutical containers will increase 6.6 percent annually to over USD 57 billion in 2017. The fastest growth is anticipated for prefillable syringes, which will gain applications as advances in biotechnology lead to the introduction of new parenteral therapies. The same trend will also create above average growth in world demand for parenteral vials and ampoules. In spite of increasing competition from alternative containers, plastic bottles will remain the most widely used package globally for oral drugs distributed in bulk and prescription dose volumes to retail and mail order pharmacies.
Plastic bottles will also continue to dominate applications as containers for OTC medicines sold in tablet and capsule quantities of 50 or more. Blister packaging will comprise the second-largest selling group of primary pharmaceutical containers and will generate above average growth in demand based on adaptability to unit dose and clinical trial formats with expanded label content, high visibility, and built-in track and trace features.
India and China will record the fastest growth in drug packaging demand due to rapidly expanding pharmaceutical production capabilities, burgeoning drug exports, and the phasing-in of extensive medicine quality regulations.
Shah further explains, "India, China and Brazil are progressing strongly in pharmaceutical packaging. Besides these three countries, the United States of America, Western Europe and Japan are other countries where pharma packaging is witnessing a strong progress. In India, pharma packaging today occupies a significant portion of the overall drugs market."
Modern packaging machineries have taken Indian packaging industry a step ahead because these machineries play a key role in ensuring packaging of exact dosage and medicines specific to individual needs.
Earlier, requirements of pharma packaging focused exclusively on preserving the quality of enclosed medication.
Now, they have extended to cover such criteria as prevention of product tampering and counterfeiting, assurance of product dispensing accuracy and promotion of patient compliance with product dosage schedules. A wide variety of packaging options are now available in the pharma arena which includes glass, PET bottles, strip and blister packs, injectables, ampoules, bulk packs etc. All this is taking place because Indian manufacturers are keeping a hawk’s eye on the latest trends.
Challenges and solutions
Counterfeit of packaging affects both brand and the patient. A brand marketed in a particular category has a host of other brands mimicking its packaging format. This leads to major loss of pharma company's revenue and also endangers patient's life. Product package compatibility should therefore be taken into account by pharmaceutical companies while packaging a drug. If the drug has certain adverse effect due to contact with the packaging material, then the efficacy of the medicine is completely defeated.
The pharma packaging machinery industry has to cater to two sets of requirements - one is the domestic pharma companies which want high output - low cost - low maintenance machines. Secondly, export oriented units which require sophistication coupled with high level of automation, reliability and quick change-over time. The machines should be equipped for both short and long runs and able to handle different designs of packaging to meet requirements of specific countries. Validation documentation support is also a compulsory feature.
The domestic packaging machinery industry is finding it a challenge to meet the requirements of the export oriented segment since the industry, barring few companies, is still not geared up to a large extent. Therefore, pharma industry has to import packaging machines from Europe, USA and Korea. Trained manpower is not available and therefore the machines need to be easy-to-operate. Innovation in packaging is the need of the hour. Packaging not only requires fulfilling its functional role but at the same time should also be patient friendly.
Adherence to global standards
More and more pharma machinery manufacturing firms are replacing obsolete technologies. Industry is witnessing a host of emerging techniques and strategies are being formulated, worked out and introduced at a fast pace. Right from bringing in the raw material till the final inspection stage – the key word is process automation and up-gradation. Facilities are being re-engineered and standardisation processes are being brought in.
Manufacturing facilities in India are being upgraded to the standards of the regulated markets. India has the highest number of FDA approved facilities outside USA. An entire range of manufacturing facilities is being catered by the Indian pharmaceutical machinery industry including processing (tablet/ capsule/ liquids/injectibles/ ointments/dry syrups), packaging (filling/sealing/ labelling/cartoning) material handling, R&D equipment & instrumentation, and API/bulk drug plant machineries.
The way ahead
The Indian pharma machinery industry has taken rapid and giant strides in the past one decade. The pharmaceutical machinery manufacturers in India have huge potential because many international companies have collaborated with Indian manufacturing companies in the past few years. Global statistics predict that the pharmaceutical market will more than double to USD1.3 trillion by 2020, with the E-7 countries Brazil, China, India, Indonesia, Mexico, Russia and Turkey accounting for one fifth of global pharmaceutical sales.