Investment Opportunities in API Bulk Drugs & Intermediates Manufacturing Unit-454479
Investment Opportunities in API Bulk Drugs & Intermediates Manufacturing Unit-454479
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Introduction
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Role of Government Towards API
The coronavirus outbreak disrupting supply of active pharmaceutical
ingredients (APIs) and medical devices from China to India, the government
has come out with four schemes worth Rs 13,760 crore to encourage
manufacturing of bulk drugs and medical devices in the country and their
exports.
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The Cabinet also approved a scheme on promotion of bulk drug parks for
financing common infrastructure facilities in three bulk drug parks with
financial implication of Rs. 3,000 crore for next five years. The government
will give grants-in-aid to states with a maximum limit of Rs. 1,000 crore per
bulk Drug Park. Parks will have common facilities such as solvent recovery
plant, distillation plant, power and steam units, common effluent treatment
plant etc.
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Financial incentive will be given to eligible manufacturers of identified 53
critical bulk drugs on their incremental sales over the base year (2019-20)
for a period of 6 years.
Out of 53 identified bulk drugs, 26 are fermentation based bulk drugs and
27 are chemical synthesis based bulk drugs.
Rate of incentive will be 20 per cent (of incremental sales value) for
fermentation based bulk drugs and 10 per cent for chemical synthesis based
bulk drugs.
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The PLI scheme will lead to expected incremental sales of Rs. 46,400 crore
and significant additional employment generation over eight years.
The drug industry has welcomed the incentives offered by the government
to promote API units in India.
Besides APIs, the Cabinet also approved the scheme for promotion of
medical device parks in the country in partnership with the states. A
maximum grant-in-aid of Rs. 100 crore per park will be provided to the
states. It will have financial implications of Rs. 400 crore.
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Medical device is a growing sector and its potential for growth is the
highest among all sectors in the healthcare market. It is valued at Rs.
50,026 crore for 2018-19 and is expected to reach to Rs. 86,840 crore by
2021-22. India depends on imports up to an extent of 85 per cent of total
domestic demand of medical devices.
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Union Cabinet Scheme on Promotion of Bulk Drug
Parks
• The scheme on Promotion of Bulk Drug Parks for financing Common
Infrastructure Facilities in 3 Bulk Drug Parks with financial implication of
Rs. 3,000 crore for next five years.
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• Production Linked Incentive (PLI) Scheme for promotion of domestic
manufacturing of critical KSMs/Drug Intermediates and APIs in the country
with financial implications of Rs6,940 crore for next eight years.
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Details:
Promotion of Bulk Drug Parks
• A sum of Rs. 3,000 crore has been approved for this scheme for next 5
years.
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Production Linked Incentive Scheme
• Financial incentive will be given to eligible manufacturers of identified 53
critical bulk drugs on their incremental sales over the base year (2019-20)
for a period of 6 years.
• A sum of Rs. 6,940 crore has been approved for next 8 years.
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List of APIs Products Identified
1) Amoxicillin
2) Azithromycin
3) Erythromycin Stearate/Estolate
4) Ceftriaxone
5) Cefoperazone
6) Cefixime
7) Cephalexin
8) Piperacillin Tazobactam
9) Sulbactam
10) Dexamethasone
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11) Prednisolone
12) Metformin
13) Gabapentin
14) Rifampicin
15) Vitamin B1
16) Vitamin B6
19) Streptomycin
20) Neomycin
21) Gentamycin
22) Doxycycline
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23) Potassium clavulanate
24) Oxytetracycline
25) Tetracycline
26) Clarithromycin
27) Betamethasone
28) Ciprofloxacin
29) Losartan
30) Telmisartan
31) Artesunate
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32) Norfloxacin
33) Ofloxacin
34) Metronidazole
35) Sulfadiazine
36) Levofloxacin
37) Meropenem
38) Paracetamol
39) Tinidazole
40) Ornidazole
41) Ritonavir
43) Aspirin
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44) Levetiracetam
45) Carbidopa
46) Levodopa
47) Carbamazepine
48) Oxcarbazepine
49) Valsartan
50) Olmesartan
51) Atorvastatin
52) Acyclovir
53) Lopinavir
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Market in India
The Indian pharmaceutical industry is ranked third in the world in terms
of production volume and 13th in terms of domestic consumption value.
The Indian pharmaceutical industry size is estimated at US$25 billion in
2015. Formulations account for 65% and bulk drugs for the balance 35%
in value terms. The industry is expected to reach US$55 billion by 2020.
Bulk drug exports are expected to grow the fastest at 14-16% CAGR due to
the growing demand of generic products and rising cost pressures that
innovators face. Formulation exports are also expected to grow at 14-16%
CAGR.
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API manufacturers in India are making efforts to strengthen their marketing
capacity in the regulated markets by improving production yields, modifying
production processes, and increasing sales in the international markets.
More than 30% of the APIs manufactured in India are exported to countries
such as US, UK, Japan, etc. The total production market of API in India was
valued at approximately US$ 11 Billion in FY 2016. This market is
forecasted to grow at a CAGR of around 9% during the period of FY 2016–FY
2022. Of the total domestic consumption, approximately 32% was imported.
Of the total imports, China alone accounts for 57-60% of the APIs imported
by India. The remaining imports are from countries such as Italy, Germany,
Malaysia, and others. These facts indicate that there is plentiful scope for
the domestic API market to grow, if the manufacturers are able to produce
the required amount of APIs on their own, rather than importing it from
other countries.
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Indian API Domestic Consumption
The Indian API domestic consumption market will grow at a CAGR of
around 10% from FY 2016 to FY 2022. Furthermore, the government is
also taking various initiatives, such as allocating lands in various states
for the development of API Mega Parks, increased investment in R&D, etc.
to boost the industry. These initiatives will further propel the growth of the
Indian API industry, as well as the domestic market for the APIs.
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Key Players
Sun Pharma, Dr. Reddy’s, Cipla, Aurobindo Pharma, Lupin, etc., are being
lured to increase their investment in the Indian API industry by providing
them various lucrative offers.
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Major Queries/Questions Answered in the
Report?
1. What is Active Pharmaceutical Ingredient (API)
Manufacturing industry ?
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5. What is the structure of the Active Pharmaceutical
Ingredient (API) Manufacturing Business and who
are the key/major players ?
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9. Who are the Suppliers and Manufacturers of Plant
& Machinery for setting up Active Pharmaceutical
Ingredient (API) Manufacturing plant ?
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13. What is the total size of land required for setting up Active
Pharmaceutical Ingredient (API) Manufacturing plant ?
17. What is the Built up Area Requirement and cost for setting up
Active Pharmaceutical Ingredient (API) Manufacturing
Business?
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18. What are the Personnel (Manpower) Requirements for
setting up Active Pharmaceutical Ingredient (API)
Manufacturing Business?
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23. What are the Profitability Ratios of Active Pharmaceutical
Ingredient (API) Manufacturing Project?
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27.What are the Market Opportunities for setting
up Active Pharmaceutical Ingredient (API)
Manufacturing plant?
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Table of Contents
of the
Project Report
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Our Detailed Project Report contains
Introduction
Properties
Uses & Applications
List of Plant & Machineries
Miscellaneous Items and Accessories
Instruments, Laboratory Equipments and Accessories
Electrification, Electric Load and Water
Maintenance, Suppliers/Manufacturers of Plant and Machineries
Process of Manufacture
Flow Sheet Diagram
List of Raw Materials
Availability of Raw Materials
Requirement of Staff & Labour
Skilled & Unskilled Labour
Requirement of Land Area
Built up Area
Plant Layout.
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Along with financial details as under:
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Working Capital Requirement Per Month
Raw Material
Packing Material
Lab & ETP Chemical Cost
Consumable Store
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Gross Profit
Financial Charges
Total Cost of Sales
Net Profit After Taxes
Net Cash Accruals
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Annexure 6 :: Profitability ratios
D.S.C.R
Earnings Per Share (EPS)
Debt Equity Ratio
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Annexure 12 :: Shareholding Pattern and Stake Status
Equity Capital
Preference Share Capital
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Annexure 19 :: Packing Material Cost
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Annexure 29 :: Depreciation Charges – as per Books (Total)
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Project Financials
• Project at a Glance Annexure
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• Plant & Machinery……………………………………………..……..5
Indigenous Machineries
Other Machineries (Miscellaneous, Laboratory etc.)
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• Overheads Required Per Month and Per Annum………….…….…8
Utilities & Overheads (Power, Water and Fuel Expenses etc.)
Royalty and Other Charges
Selling and Distribution Expenses
• Share Capital…………………………………………………….....11
Equity Capital
Preference Share Capital
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• Annexure 1 :: Cost of Project and Means of Finance
Revenue/Income/Realisation
Expenses/Cost of Products/Services/Items
Gross Profit
Financial Charges
Total Cost of Sales
Net Profit After Taxes
Net Cash Accruals
• Annexure 3 :: Assessment of Working Capital requirements
Current Assets
Gross Working Capital
Current Liabilities
Net Working Capital
Working Note for Calculation of Work-in-process
D.S.C.R
Earnings Per Share (EPS)
Debt Equity Ratio
• Annexure 7 :: Break-Even Analysis
Resultant N.P.B.T
Resultant D.S.C.R
Resultant PV Ratio
Resultant DER
Resultant ROI
Resultant BEP
• Annexure 12 :: Shareholding Pattern and Stake Status
Equity Capital
Preference Share Capital
• Annexure 13 :: Quantitative Details-Output/Sales/Stocks
Determined Capacity P.A of Products/Services
Achievable Efficiency/Yield % of Products/Services/Items
Net Usable Load/Capacity of Products/Services/Items
Expected Sales/ Revenue/ Income of Products/ Services/
Items
• Annexure 14 :: Product wise Domestic Sales
Realisation
size, market potential of the product and reasons for investing in the
product
• This report helps you market and place the product correctly by
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• This report helps you understand the viability of the project by
decisions
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Our Approach:
industry players
report
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Scope of the Report
The report titled “Market Survey cum Detailed Techno Economic
Feasibility Report on Active Pharmaceutical Ingredient (API).” provides
an insight into Active Pharmaceutical Ingredient (API) market in India
with focus on uses and applications, Manufacturing Process, Process
Flow Sheets, Plant Layout and Project Financials of Active
Pharmaceutical Ingredient (API) project. The report assesses the market
sizing and growth of the Indian Active Pharmaceutical Ingredient (API)
Industry. While expanding a current business or while venturing into
new business, entrepreneurs are often faced with the dilemma of
zeroing in on a suitable product/line. And before diversifying/venturing
into any product, they wish to study the following aspects of the
identified product:
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• Good Present/Future Demand
• Export-Import Market Potential
• Raw Material & Manpower Availability
• Project Costs and Payback Period
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Tags
#API #startupindia #APIBusiness #ActivePharmaceuticalIngredient
#Amoxicillin #azithromycint #ErythromycinStearate #ceftriaxone
#cefoperazone #cefixime #amoxicillin #doxycycline #cephalexin
#ciprofloxacin #clindamycin #metronidazole #azithromycine #Piperacillin
#tazobactam #sulbactam #dexamethasone #prednisolone #Metformin
#Gabapentin #clindamycin #Clindamycin #Streptomycin #Neomycin
#Gentamycin #Doxycycline #Potassiumclavulanate #Oxytetracycline
#Tetracycline #Clarithromycin #Betamethasone #Ciprofloxacin #Losartan
#Telmisartan #Artesunate #Norfloxacin #Ofloxacin #Metronidazole
#Sulfadiazine
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#Levofloxacin #Meropenem #Paracetamol #Tinidazole #Ornidazole
#Ritonavir #Diclofenac Sodium #Aspirin #Levetiracetam #Carbidopa
#Levodopa #Carbamazepine #Oxcarbazepine #Valsartan #Olmesartan
#Atorvastatin #Acyclovir #Lopinavir #businessopportunity #projectreport
#DetailedProjectReport #businessconsultant #businessfeasibilityreport
#BusinessPlan #startyourbusiness #investmentopportunity
#growyourbusiness #startups #business #covidbusiness #covid19
#covidsmallbusiness
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