Pharmaceutical Industry in India

In the present day, the population and disease are increasing in tandem and the demand for medicine is also increasing for their wellness. The demand for medicine will never saturate in-fact the demand will always increase. People get sick mainly because of their lifestyle, environmental causes and genetic disorder. With the increasing distortion in lifestyle, beyond repair exploitation of environment and ever increasing mutation of viruses like Ebola, Sars and Swine flu, the increase in demand for medicine is projected to go up multiple times. The average increase in medicine sales is directly proportional to the increase in population. The Compound annual growth rate (CAGR) is expected to be between 14-17 %. 

1970 Patent Act was crucial in the development of pharmaceutical industry in India as it enabled the Small and Medium Enterprise (SME) to thrive in this high R&D cost market.

Drugs are manufactured in three main forms:

a) Tablets

b) Injections

c) Formulations

Challenges: to set up a medicine manufacturing plant, the manufacturer has to face the following challenges:

1) To set up factory based on norms of Central Drug Research Institute( CDRI)

2) To obtain drug manufacturing license which is given after thorough inspection by experts. Compliance with the Schedule M of Goods Manufacturing Practise has posed new challenges. 

3) Excise duty structure has become an important game changer off late. Due to the 16% excise duty on MRP( Maximum Retail Price), most of the manufacturers have moved to duty free zone. 

4) Location should be at such a place where all infrastructural facilities are available and raw materials are available in abundance.

5) Marketing is also a challenge as most of the governments restrict excessive advertisement of medicines. This only leaves the option of promotion through sales channel which has higher operational cost.

6) Obtaining finance is also a challenge as financiers also put condition for compliance based on government norms.

7) We must be ethically and morally strong in order to sustain in pharma business , which is such a noble cause.

Kaushal Vikas : how to open an ITI / training institute

The Prime Minister of India has emphasised on skill development imperative to Make in India success. Kaushal Vikas Yojna is implemented by the Ministry of Labour and Employment to set up new Industrial Training Institute (ITIs) . Skill development and training programmes of central government are carried out in ITI as well. ITI trained people are called ITI apprentice. The ITI apprentices hold key skills for the operations of a manufacturing or services industry. Every establishment seeks to hire ITI professionals, who are trained to provide quality product or service.

ITI is a 3 years full time program and provides specialisation to generate employment for professions like electricians, welder, mechanic, wire man, plumber, diesel, civil draughtsman, mechanical draughtsman, electronic mechanic, etc.

ITIs are not sufficient currently to supply the required number of 500 million skilled manpower in India by 2022, as per the report by govt. of Bihar.

The set up of an ITI is not a very big challenge if the following challenges are taken care:

      1. Affordability of land approachable to students

  2. Availability of power, roads

3. Proper site layout and building design

4. Smooth filing of application for opening of ITI to Ministry of Labour, Govt. of India

5. Appointment for inspection of site by ministry representative

 6. To procure standard machines and tools, such as ISO certified

Thus, ITI development is crucial to fulfil the demand of skilled workforce in the country. Setting up an ITI will be a great contribution to the society. Kaushal Vikas will lead us to sampoorn vikas !

Business projects and finance consulting

Make in India theme is encouraging most of us to venture into a start up. But not every idea is successful in hitting the markets. There are several aspects of businesses which need to be taken care before you present your idea to an investor. A lot of brainstorming with the right direction is the key.
If you are one of the rich people, who would not mind investing your business from your own pocket, then its very crucial that you know how to manage your finances.