Chronicle Specials + Font Resize -

Pharmexcil - Genesis of a dedicated export body
Dr PV Appaji | Thursday, December 22, 2005, 08:00 Hrs  [IST]

Indian pharmaceutical industry has made phenomenal progress over the recent years and made its impact in the global market. The sector is being recognized as a reliable source for drugs, drug intermediates and formulations. The Indian companies have realized and started utilizing the tremendous opportunities available globally in the post-2005 era to manufacture and export the blockbuster products getting off-patented. The immense strength in manufacturing quality medicines at competitive prices made the Indian pharma industry to make its presence felt both in regulated and non-regulated markets. This industry is playing a vital role in the Indian economy with about Rs.17000 crores export turnover in the year 2004-05.

Apart from its strengths in manufacturing and exporting allopathic medicines, India is known for its own systems of medicines with about 7000 units manufacturing various Indian system of medicines viz., Ayurveda, Unani, Siddha, Homeopathy etc. Though strong in cultivation/manufacture of Indian system of medicines, India's share in the global herbal market, estimated at US$ 63 billion, is less than 0.2%, which shows that there is a tremendous scope for growth in export market. Fast growing biotech industry estimated at about US$ 2 billion market, is yet another part of Indian pharma industry in India, which has great potential in the international market and needs focused attention to improve its performance in the international market.

Indian Pharma: Acknowledged strengths

- Over US$ 8 billion industry
- Produces 70% APIs, and almost the entire requirement of formulations within the country
- Ranks 4th in the world, accounting 8% of world production by volume and 2% by value
- Very strong in Indian medicine systems of Ayurvedic, Homoepathy, Unani, Siddha and herbals medicines
- Fast growing biotech industry with US$ 2 billion market
- Low cost of production
- Low R&D costs
- Abundant scientific and technical manpower
- Strong intellectual capital
- Excellent world-calls national laboratories, specialized in development processes and cost effective technologies
- An efficient and cost effective source for procuring generic drugs, especially the drugs going off patent in the next few years
- An excellent centre for clinical trials
- USFDA/WHO complying manufacturing facilities
- 15% of Indian pharmaceutical scientists are in USA, hence good network
These strengths of Indian pharma industry and the strong and continued persuation by four major national pharma associations made the Ministry of Commerce & Industry to realize the need for setting up a separate export promotion council for pharmaceuticals. . With the active support of government of Andhra Pradesh, who provided the necessary corpus fund for establishing any new council, Pharmaceutical Export Promotion Council (PHARMEXCIL) has been set up on 12.5.2004 with head office at Hyderabd.. After facing some initial problems, finally, with the notification No.61 dt. 16.3.2005, of Director General of Foreign Trade (DGFT) Pharmexcil has started performing its duties effectively as the sole agency to issue RCMCs to all pharmaceutical exporters. The government has included the following categories of pharma products under the jurisdiction of pharmexcil.
- Bulk drugs and its intermediates
- Formulations
- Herbal products
- Ayurvedic products
- Unani products
- Homeopathic medicines
- Biotech and biological products
- Diagnostics
- Surgicals
- Neutraceuticals
- Pharma industry related services
- Collaborative research
- Contract manufacturing
- Clinical trials and consultancy services etc
The activities of the council are administered by the Committee of Administration consisting of representatives from various sectors of pharma industry. D B Mody of J B Chemicals, Mumbai and Sri Venkat Jasti of Suven Life Sciences, Hyderabad are the chairman and vice-chairman of the council, respectively. The committee is also represented by four senior officials from govt. of India and govt. of Andhra Pradesh.
The various duties/responsibilities performed by Pharmexcil include the following:
- Issue of Registration cum Membership Certificates ( RCMC ), a mandatory requirement for every exporter under foreign trade policy of government of India
- Organizing trade delegations/buyer-seller meetings at abroad
- Organizing reverse buyer-seller meetings in India
- Assisting members to get their MDA/MAI claims refunded from Govt. of India
- Issue of Certificate of Origin
- Organizing periodical seminars/interactive meetings on exports related issues
- Make suggestions to government of India on policy issues relating to pharma exports
- Make representations to government of India and other agencies in India and abroad to get amicable solutions for the common problems of the industry.

Pharmexcil has started performing its role soon after its establishment in May 2004. It has conducted many activities during last financial year and also since April of 2005. Some such activities include the following:

- Taken a trade delegation to Tunisia in April 2005 - Signed MOU with Tunisia trade chambers
- Taken delegation to USA in May 2005
- Participated in FCE Pharma Show, Brazil and Medical International EXPO, Vietnam - May 2005
- Interactive meeting with all African Ambassadors at Delhi in May 2005 - a prelude to the Africa Conference.
- Organized awareness programme on export incentives available from government of India - at Hyderabad in June 05
- Conducted interactive meeting with all Latin American Ambassadors in India - (Delhi - June 05)
- Taken a trade delegation to Chile in June 05 where 26 delegates participated
- Taken a trade delegation to Tajikistan - July 05
- Participated in Apteka, Moscow - in October 05
- Organized 'India Pavilion' at CPhI 2005 in November 2005 where 30 member companies have participated in the India-Pharmexcil Pavilion.
- Co-sponsored 6th International Symposium on Innovations in Pharmaceutical Sciences and Technology, Mumbai in November 2005
- Organized interactive meeting with 22 member Korean delegation at Hyderabad in November 05
- Organized 'India - Africa, Asean, GCC Pharma & Health Conference' at Hyderabad in December 05, in association with Govt. of India and FICCI, where about 75 foreign invitees and 450 Indians have participated.
- A large number of trade enquiries received from international buyers have been circulated promptly.
- A 'viewers friendly' web site www.pharmexcil.com is established and maintained.
Other important additional activities to be mentioned are:
- Signed MOUs with the govt. / private associations in Philippines, Tunisia, Korea
- Council has been entrusted with the responsibility of taking care of export promotion of herbal and allied products in India - Constituted separate committee for this purpose.
- Brought the problems faced by the exporters viz., Public Notice No.8, extension of DEPB scheme etc., to the notice of concerned officials in the meetings of Board of Trade and resolved them.
- Promptly attended to the problems faced by some of the exporters due to the ban imposed by NAFDAC, Nigeria by organizing a delegation of affected exporters to Nigeria.

With in the short span of less than two years period, Pharmexcil has tried its best to perform its duties and to help the small and medium pharma exporters in understanding / improving their export performances. It is heartening to note that the council has become known in the sector and several small new entrants into exports have started acknowledging the help/services being extended by the council. The council is making best efforts to ensure that the image of Indian pharma industry in the international markets is kept intact. Pharmexcil is regularly in touch with the embassies of India all over the world and interacting with them for promoting pharma exports. Its continuous endeavour is to reach the small and medium pharma companies and make them enter into the world of opportunities available in the global pharma markets.

- (The author is executive director, Pharmexcil)

Post Your Comment

 

Enquiry Form