Need to focus on compliance

Visakhapatnam: Stating that the Indian pharma industry estimated at $26 billion accounts for about two per cent of global business turnover of $1300 billion, M Madan Mohan Reddy, Director of Aurobindo Pharma Ltd on Thursday called for focus on compliance to explore huge potential in the overseas markets.

He was delivering a special address at a conference organised on hybrid model on pharma manufacturing industry--challenges and opportunities here by Confederation of Indian Industry-Andhra Pradesh.

He said the manufacturers should remember that there is no shortcut to success and they should not crave for earning profits immediately after foraying into the export market. Besides the USA, European Union, now new markets are emerging in the Middle East, Africa, South America and parts of Asia, where Indian industries can do exceedingly well.

He also called for import substitution in raw material as well as making a dent in medical devices manufacturing. Indian industry mostly depends on import of Active Pharmaceutical Ingredients (API)/intermediate products and basic raw material to manufacture drugs.

India at present has 10,500 manufacturing units with most bulk drug units spread over Hyderabad and some located in and around Visakhapatnam. Indian is rated No 1 in selling generic drugs.

Reddy said three decades ago India was nowhere in generic products and now India is placed on the top. There is a lot of scope to do well in the formulation sector. He said MNCs are now looking for tie-ups to establish production units to cut down manufacturing costs in expensive places like the USA.

He said the government should offer incentives to reduce logistics cost from about 20 per cent, which rose due to the pandemic from eight to nine per cent. The manufacturers also need to lay emphasis on sustainability and patent rights.