An overlooked niche in the Indian pharma industry
Updated: Apr 25, 2021
Excipient manufacturing market is still in its nascent stage to some extent in India. A substantial amount of Indian market requirements are fulfilled by imports. This sector has not seen the kind of investments like that of generics and Active Pharmaceutical ingredient (API) because of the paucity of Investors and incentives.
The main reason for this and deterring its future growth is that not many companies are engaged in excipients research, as its capital-intensive, the margins are not high in most products and main focus is on volumes only.
Under AtmaNirbharBharat programs and other such initiatives, the domestic excipients industry need to take on to steer the industry towards standardization, , supply chain, research ( at academic and commercial level), production linked incentives, other government support to boost this niche industry in India which eventually create more manufacturers, new startups and more Jobs and dwindle the import dependency and pharma industry can be more self reliant.
This Excipients market is so wide that apart from captive use in domestic market, it has huge scope for overseas market as well.
The pharmaceutical excipients market is projected to reach USD 9.7 billion by 2025 from USD 6.9 billion in 2019, at a CAGR of 5.8%
On the basis of product, the pharmaceutical excipients market is segmented into three major categories— organic chemicals, inorganic chemicals, and other chemicals
Its a good time to put investment in this ancillary industry in India due to growing Pharmaceutical and other allied industries.