BUILDING A HEALTHIER STATE

BUILDING A HEALTHIER STATE

PHARMACEUTICALS

Madhya Pradesh Trade and Investment Facilitation Corporation Limited (MPTRIFAC)AVN Towers,192, Zone -1, M.P Nagar, Bhopal 462011Tel.: (+91) 755 4270246. Fax: (+91) 755 2559973. E-mail: facilitation@mptrifac.org Website: www.investmp.com National Partner Knowledge Partner

• Growing Pharmaceutical Industry– Indian Scenario

• Our Edge – Madhya Pradesh Scenario – World Class Infrastructure– Access to Skilled Manpower– Government’s Proactiveness

• Opportunities• Key Players

ContentContent

Indian Scenario

Growing Pharmaceutical IndustryPharmaceutical• Market Size: The Indian pharmaceutical industry (USD 12 billion)

was ranked 3rd in terms of volume and 14th in terms of value globally in 2013-14

• Major Drivers: Cost Efficiency, diversified portfolio, including 60,000 generic brands and strong policy support in the form of “Pharma Vision 2020” position India as the global leader in end-to-end drug manufacturing

• Market Segmentation: Divided into four major segments – Active Pharmaceutical Ingredients (APIs), Contract Research and Manufacturing Services (CRAMS), Formulations and Biosimilars with APIs being the largest segment

• Growth in Exports: Pharmaceuticals exports have witnessed a growth of CAGR 26.1% to USD 10.1 billion during FY 06-13

2.4 3.2

4.2 5.1 5.2

6.7

8.5

10.1

0.4 0.6 0.7 0.9 1.1 1.2 1.7 1.8

0

2

4

6

8

10

12

FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13

Export/Import Data of Indian Pharmaceutical Industry (in USD Billion)

Source: Department of Commerce, India, Planning Commission Report

71%

13%

9%

4% 3%

Market Break-up by Segment (FY13)

Hospitals

Pharmaceutical

Medical Equipment & Supplies

Medical Insurance

Diagnostics

• Untapped opportunity: The pharmaceutical sector in Madhya Pradesh offers huge untapped opportunity due to large population base in the state

• Turnover: The Pharmaceutical industry in Madhya Pradesh has an annual turnover of about USD 1.5 billion

• Locational advantage: Being at the centre of the country provides equal access to markets around the country for the pharmaceutical industry

• Large number of pharmaceutical and healthcare units: More than 350 pharmaceutical units located across Madhya Pradesh, out of which 160 are formulation manufacturers

• Major employer: Provides direct and indirect employment to more than 45,000 people

• Robust infrastructure support: The presence of pharmaceutical clusters with a large number of pharmaceutical ancillary units in Pithampur, Indore, Dewas, Mandideep, Bhopal and Ujjain provide a strong infrastructure support for the sector

Indore: Pharmaceutical hub of the state• Indore is one of the largest producers of pharmaceuticals like basic drug formulations, tableting,

capsuling etc.

• Indore houses one of India’s biggest pharmaceutical trade house, “Dawa Bazar”

• Dawa Bazar host a large number of wholesale and retail outlets of small manufacturers, and several multinational pharma companies have their marketing offices here

Pharmaceutical

Over 160 formulation manufactures in Madhya Pradesh

Our Edge

Madhya Pradesh Scenario

World Class Infrastructure

• The pharmaceutical cluster encompasses the industrial estates within Indore, and the industrial regions of Dewas, Ujjain and Pithampur (Dhar district).

Indore, Pithampur SEZ

Proposed Biotechnology Park

• The first SEZ in India – Indore, Pithampur SEZ became operational in August 2003• It is spread over an area of more than 1,100 hectares comprising Phase I and II, housing sectors

such as pharmaceuticals, plastic, engineering, metal, textile and food processing

• 181 acre Biotechnology Park proposed in Indore to be set up under PPP mode• To include amenities like incubation centre, pilot plants, business enterprises zone, warehouses,

healthcare centre etc.• Besides biotechnology, it will host industrial units of pharmaceuticals, agriculture and food processing

Pharmaceutical Infrastructure Scenario

BhindMorena

DatiaSheopur

Shivpuri

Guna AshokNagarNeemuch

Mandsaur

Ratlam

Jhabua

AlirajpurDhar

Dewas

KhargoneBarwani

Khandwa

Burhanpur

Harda

Hoshangabad

Betul

ChhindwaraSeoni

Balaghat

MandlaDindori

Narsinghpur

Shajapur

Sehore

Raisen

TikamgarhRewaChhatarpur

Panna

DamohSagarVidishaRajgarh

Satna

Sidhi

Singrauli

Katni

Umaria Shahdol

Anuppur

Gwalior

Ujjain

Indore

Jabalpur

Bhopal

Above 25 units

No of units: 11 to 25

No of units: 6 to 10

No of units: 1 to 5

Existing Pharmaceutical Cluster

Our Edge

Availability of Skilled Manpower

• Dr.Hari SinghGourCentralUniversity, Sagar has apharmaceutical centre of excellence, and it was the 3rd of its kind in India and the firstinMadhyaPradesh

• Madhya Pradesh is home toIISER,anditprovidesadvancedcoursesinBiologicalSciences

Preparing a large pool of quality workforce

• Number of colleges running pharmacy courses has increased from 20 in FY03 to 111 in FY14

• Intake of students in pharmacy colleges has also witnessed a significant increase from 1150 to 8340 in the same period

Source: Department of Technical Education and Skills Development

Key pharmaceutical colleges in Madhya Pradesh

B. R. Nahata College of Pharmacy, Mandsaur

Indore Institute of Pharmacy, Indore

Department of Pharmacy, Barkatullah University, Bhopal

RGPV School of Pharmaceutical Sciences

SGSITS, Department of Pharmacy, Indore

Our Edge

1150

8340

0

5000

10000

FY03 FY14

Intake Capacity

No. of Institutions - 20

No. of Institutions - 111

Government Proactiveness

Infrastructure Framework• Seven Audyogik Kendra Vikas Nigam(AKVN) established to promote

industrialisation by providing industrial infrastructure• 19 Industrial Growth Centres under 7 AKVNs• Pharmaceutical SEZ at Pithampur under AKVN, Indore• 185 Industrial Areas under District Trade & Industrial Centres(DTIC)

SpecialIncentivesforPharmaceuticals&HerbalIndustriesinHealthcareInvestmentPolicy2012• 50% of the expenditure incurred on technical services for obtaining

GMP certification• Speedy disposal and facilitation• Herbal & Ayurvedic Parks and demonstration centres would be

developed• Herbal & Ayurvedic industries set up in advanced districts will be

provided similar incentives as available in Backward ‘A’ category districts

Investor-friendly Policies • Exemption from Electricity duty• Concession on land• Interest subsidy • VAT & CST reimbursement• Entry Tax exemption• The incentive package shall also be extended to vendor

units, similar to mother units• SmallScale&MediumScalePharmaceuticalUnitshaving

FCIofoverINR50lakhwillbegivenspecialsubsidy

SingleWindowFacilitator• Online Single Window System for Investor Facilitation

& Approval Monitoring System

Presence of Robust Support System

Our Edge

Opportunities

Rising Investment Prospects

Investment Opportunities in Indicative Projects• Bulk Drugs and Active Pharmaceutical Ingredients (API) manufacturing units• Integrated R&D Centre• Drug packaging• Bulk drug manufacturing• Development of medical devices • Herbal production• Cosmetic units• Clinical trial centre• Pharmaceutical Special Economic Zone

Investment Opportunities Across Value Chain

Target Identification

LeadIdentification

Pre-ClinicalTrials

Clinical Trials Manufacturing Packaging Storage & Distribution

Research Testing Delivery

Key Players

Ranbaxy Laboratories Ltd.-RanbaxyLaboratoriesLtd.isanIndianmultinationalpharmaceuticalcompanythatwasincorporatedinIndiain1961

-Highestnumberofbrandsinthe‘Top-30’oftheIndianpharmaceutical market

-Over200moleculesinproduction

-InvestmentinMadhyaPradesh(inINRCrore):9905

Lupin Limited- Lupin Limited is an innovation led transnational pharmaceutical company producing a wide range of quality, affordable generic and

branded formulations and APIs

-Productsreachover100countriesandhasemergedasthe5thlargestcompanyintheUS

- In Madhya Pradesh, it has two manufacturing plants – Mandideep for APIs and Indore for formulations

The Piramal Group-ThePiramalGroupoperatesacrosssectorssuchashealthcare,life sciences, drug discovery, healthcare information management,

specialty glass packaging and real estate

- Piramal healthcare offers products for ailments such as acute care, biotech, cardiac, diabetes and orthopaedic

- Third largest player in the global Inhalation Anaesthesia (IA) market, and the only company in the world with a complete productportfolioofinhalationanaestheticsdrugs.ThecompanyhasafacilityinPithampur,Dhar.

Cipla-Ciplaisoneoftheworld’slargestgenericpharmaceuticalcompanieswithapresenceinover170countries

- Offers a broad spectrum of pharmaceutical and surgical products

-Over2000products,65therapeuticcategories,over40 dosage forms

-HasamanufacturingfacilityinIndoreproducingaerosols,liquidorals,pre-filledsyringes,nasalsprays,eyedropsandtablets

Teva- Teva is the largest generic drug manufacturer in the world and offers a wide range of products such as APIs, generic drugs, Oncologysupportetc.

- In Madhya Pradesh, it has a large API manufacturing unit in Malanpur,DistrictBhind

Illustrative List of Pharmaceutical Players* in Madhya Pradesh

Key Contact Principal Secretary

Department of Public Health & Family Welfare, Govt. of Madhya Pradesh

(Off.) 0755-2441074(Fax) 0755-2571399

Email: pshealth@mp.gov.in

Managing DirectorMP Trade and Investment Facilitation Corporation Limited

(Government of Madhya Pradesh Undertaking)(Off.) 0755-4270246, 2559978-79

(Fax) 0755-2559973, 2559971Email: info@investmp.com, facilitation@mptrifac.org

*This is only a representative list of pharma players present in Madhya Pradesh