2015 2020

= = Acute
™ Chronic

Source: Annual Reports, Technopak Research

 

MAJOR PLAYERS IN THE INDIAN DOMESTIC PHARMACEUTICAL MARKET

The domestic pharmaceutical market is highly fragmented with the top 10 companies (primarily branded generics companies)
contributing less than 50% of the market, and the top 150 companies accounting for close to 96% of the market. The market is
primarily dominated by Indian companies, which account for close to 80% of the market share.

PHARMACEUTICAL SUPPLY CHAIN IN INDIA

India is an integral part of the global pharmaceutical supply chain, and accounts for exports and imports with more than 200
countries in the world. The pharmaceutical supply chain consists of manufacturing plants, intermediary product suppliers,
logistics partners and technology partners. The Indian domestic market consists of a large network of more than 500 medium
and large companies (that manufacture/contract manufacture), ~60,000 distributors, and ~800,000 pharmacy retail outlets, with
more than 100,000 pharmaceutical brands available in the market given it’s a branded generics market. The domestic
pharmaceutical supply chain typically involves a company appointed carry-forward (“C&F”) agent, responsible for handing
warehousing and transportation of drugs, and supplying drugs to distributors who then provide these products to retail
pharmacies and hospitals. There are multiple variations to this basic chain where a distributor may also distribute through a
sub-distributor, and in other cases, an exclusive distributor may be appointed for a particular channel or customer. In some
cases, manufacturers supply their products directly to retailers or through exclusive intermediaries.

The illustration sets out an indicative supply-distribution chain, with the profit margins varying across the C&F agent,
distributor and retailers.

Manufacturer

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