Dun & Bradstreet India (D&B India) has reinforced its commitment towards servicing small and medium enterprises through the launch of its publication series, Emerging SMEs of India, brought to you in a strategic association with SME Rating Agency of India Ltd (SMERA). Emerging Pharmaceutical SMEs of India is the fourth publication in this sector-based series. The first three in the series, pertaining to Auto Components, Textiles and Food Processing SMEs of India, were released earlier in 2006-07, and have been very well received.

Lately, the SME segment has been the subject of increased focus from several government institutions, corporate bodies and banks, and is rightly viewed as an agent of economic growth. However, there is a lack of structured information on India’s SME sector. A sincere attempt to fulfil this lacuna was the principal rationale in undertaking this exercise. This one-point reference document will provide a platform to enhance the visibility of these important constituents of the Indian growth story.

A highly fragmented industry, the Indian pharmaceutical industry is estimated to have over 10,000 manufacturing units, as estimated by the Organisation of Pharmaceutical Producers of India. The organized sector accounts for just 5%, of the industry, while a major 95% is in the unorganized sector. A large number of players in the unorganized segment are small and medium enterprises and this segment contributes 35% of the industry’s turnover.

A paradigm shift occurred in the Indian pharmaceutical industry with India becoming a signatory to the WTO order, ushering in the Product Patent Regime. With India becoming TRIPS compliant in Jan 05, the Indian market has become an attractive option for the introduction of research-based products. Indian companies are now exploring new business models such as contract research, for drug and discovery research & development, as well as contract manufacturing. The domestic bulk drug and formulation industry has been able to largely meet the domestic demand for these products. Besides, it also exports to several regions, including the EU and US, and exports currently constitute nearly 48% of the industry’s turnover. Moreover, trends such as favourable regulatory environment, increased expenditure on R&D and improved technical skills in the field of chemical synthesis have aided the growth prospects. The increasing alliances and tie-ups of Indian companies with global players have further given a boost to Indian exports.

Emerging Pharmaceutical SMEs of India preserves the D&B commitment to providing information and knowledge that facilitate informed business decisions. D&B India has drawn on its time-tested expertise in the information business to the benefit of the small and medium companies, as this publication amply reflects.

Finally, I would like to thank the SME Rating Agency of India Ltd (SMERA) for their consistent support in this exercise. I am sure you will fi nd this issue of Emerging Pharmaceutical SMEs of India useful and I look forward to your suggestions.

Dr Manoj Vaish
President & CEO - India
Dun & Bradstreet