Indian Pharma Industry

Key Players in Indian Pharmaceutical Industry:6 Ranbaxy Laboratories Limited:6 Introduction:6 Mission and Vision:7 Opportunities:8 Ranbaxy’s Corporate Social Responsibilities:8 Community Health Care:8 Environment:9 Dr.

Reddy's Laboratories:10 Company Profile10 Chronology10 Dr. Reddy’s Corporate Social Responsibility Activities11 Corn’bytes (Sweet Corn Vending):11 Livelihoods - Agro based Livelihood Initiatives:12 Naandi foundation:12 The Power of 10™:12 Rashtra Chenetha Jana Samakhya:13 Residential Bridge Courses:13 Life at your Doorstep:13Cipla Pharmaceutical Company13 Company profile:13 History:14 Major Achievements of Cipla:14 CSR activities of Cipla15 . Cipla Palliative Care Centre15 Home Visits:15 Nicholas Piramal India Ltd. 16 Company Profile:16 Major Awards and Achievements:16 Core Values:17 CSR activities of Nicholas Piramal India Ltd. 17 Helpyourbody:17 GDL-Piramal Foundation:17 Glaxo Smithkline (GSK)18 Company Profile:18 Recent Developments:18 CSR activities of Glaxo Smithkline (GSK)19 CSR in India:19 Their core value:20 What they do:20 Future Scenario21Recommendations22 Bibliography22 Introduction: The pharmaceutical industry in India is among the most highly organized sectors. This industry plays an important role in promoting and sustaining development in the field of global medicine.

Due to the presence of low cost manufacturing facilities, educated and skilled manpower and cheap labor force among others, the industry is set to scale new heights in the fields of production, development, manufacturing and research. In 2008, the domestic pharma market in India was expected to be US$ 10. 6 billion and this is likely to increase at a compound annual growth rate of 9. 9 per cent until 2010 and subsequently at 9. 5 per cent till the year 2015.

Industry Trends: * The pharma industry generally grows at about 1. 5-1. 6 times the Gross Domestic Product growth * Globally, India ranks third in terms of manufacturing pharma products by volume * The Indian pharmaceutical industry is expected to grow at a rate of 9. 9 % till 2010 and after that 9. 5 % till 2015 * In 2007-08, India exported drugs worth US$7. billion in to the US and Europe followed by Central and Eastern Europe, Africa and Latin America * The Indian vaccine market which was worth US$665 million in 2007-08 is growing at a rate of more than 20% * The retail pharmaceutical market in India is expected to cross US$ 12-13 billion by 2012 * The Indian drug and pharmaceuticals segment received foreign direct investment to the tune of US$ 1.

43 billion from April 2000 to December 2008 Challenges: Every industry has its own sets of advantages and disadvantages under which they have to work; the pharmaceutical industry is no exception to this.Some of the challenges the industry faces are: * Regulatory obstacles * Lack of proper infrastructure * Lack of qualified professionals * Expensive research equipments * Lack of academic collaboration * Underdeveloped molecular discovery program Government Initiatives: The government of India has undertaken several including policy initiatives and tax breaks for the growth of the pharmaceutical business in India. Some of the measures adopted are: * Pharmaceutical units are eligible for weighted tax reduction at 150% for the research and development expenditure obtained. Two new schemes namely, New Millennium Indian Technology Leadership Initiative and the Drugs and Pharmaceuticals Research Program have been launched by the Government. * The Government is contemplating the creation of SRV or special purpose vehicles with an insurance cover to be used for funding new drug research. * The Department of Pharmaceuticals is mulling the creation of drug research facilities which can be used by private companies for research work on rent.

Pharma Export: In the recent years, despite the slowdown witnessed in the global economy, exports from the pharmaceutical industry in India have shown good buoyancy in growth.Export has become an important driving force for growth in this industry with more than 50 % revenue coming from the overseas markets. For the financial year 2008-09 the export of drugs is estimated to be $8. 25 billion as per the Pharmaceutical Export Council of India, which is an organization, set up by the Government of India. A survey undertaken by FICCI, the oldest industry chamber in India has predicted 16% growth in the export of India's pharmaceutical growth during 2009-2010. Corporate Social Responsibility-Meaning:In the 1990s, when one spoke of Corporate Social Responsibility, it was very quickly concluded to be donations.

It was understood to be a philanthropic gesture which the organizations undertook as their responsibility towards the society. In this context, Corporate Social Responsibility CSR or Corporate Citizenship had different implications for different companies. For some companies, CSR could largely mean compliance and altruism. Many others would observe it as a more strategic framework that took into account a company’s relationships and overall impact on the society.Companies also have a way of practicing CSR internally within the organization for their employees and associates.

In the twenty first century, however, companies have been generating innovative ideas and methods to incorporate social responsibility in congruence with organizational goals. To implement these social goals, the companies are partnering with the government and the Non-Government Organizations (NGOs). With increased competitiveness in the private sector, it is critical for an organization to leverage its social activities in order to gain a competitive advantage.The increased credibility and goodwill earned from the customers and associates is an invaluable intangible asset for the organization. An example is of the pharmaceutical industry, where it becomes imperative to either collaborate with NGOs or with the government to be able to reach out to a large population and provide medicines to the needy at affordable prices.

This sector has strict price controls and regulations by the government. Therefore, only by partnering with the government, hospitals and the society can the company introduce drugs at affordable prices for distributive justice.