A REPORT ON

AN OVERVIEW OF PHARMACEUTICAL INDUSTRY

CHALLENGES AHEAD

Submitted to

Dr. NEERAJ ANAND

Submitted by
NAINA ADARSH

- R740213029

Course Name : MBA International Business Management

Subject Name : RESEARCH METHODOLOGY

University of Petroleum and Energy Studies, Dehradun.

January May 2014

STUDENT DECLARATION

This is to certify that I have completed the report titled Overview of Pharmaceutical Industry in
India Challenges ahead under the guidance of Dr. Neeraj Anand in partial fulfillment of the
requirement for the award of Degree of Masters of Business Administration at College of
Management and Economic Studies, University of Petroleum and Energy Studies. This is an
original piece of work and I have not submitted it earlier elsewhere.

Naina Adarsh
MBA IB
2nd SEM
500030905

ACKNOWLEDGEMENT

First of all I would like to thank Dr. Neeraj Anand, faculty of Research Methodology and
Applied Statistics, for giving me the opportunity to writing the report on Overview of
Pharmaceutical Industry Challenges ahead. Due to this assignment, I came to know about
more on report writing and the overview, challenges and future of pharmaceutical industry of
India.
Finally I would like to thank everyone who has somehow helped me during this entire learning
process.

NAINA ADARSH
MBA IB
2nd SEM
SAP ID - 500030905

EXECUTIVE SUMMARY
Indias pharmaceutical sector will touch US$ 45 billion by 2020, according to a major study by
global management and consulting firm, McKinsey & Company. The reasons for this optimism
are well founded. In the period 20022012, the countrys healthcare sector grew three times in
size, touching US$ 70 billion from US$ 23 billion. India's pharmaceutical market experienced a
similar boom, reaching US$ 18 billion in 2012 from US$6 billion in 2005. The report further
states that the Indian pharmaceutical market will be the sixth largest in the world by 2020.
The demand for pharmaceutical products in India is significant and is driven by low drug
penetration, rising middle-class & disposable income, increased government & private spending
on healthcare infrastructure, increasing medical insurance penetration etc.
The rise of pharmaceutical outsourcing and investments by multinational companies (MNCs),
allied with the country's growing economy, committed health insurance segment and improved
healthcare facilities, is expected to drive the markets growth.
The Indian pharmaceutical industry is growing at about 8 to 9 percent annually according to A
Brief Report Pharmaceutical Industry in India, published in January 2011. The Pharmaceutical
industry in India meets around 70% of the country's demand for bulk drugs, drug intermediates,
pharmaceutical formulations, chemicals, tablets, capsules, orals and injectables. There are
approximately 250 large units and about 8000 Small Scale Units, which form the core of the
pharmaceutical industry in India (including 5 Central Public Sector Units).
India is today one of the top emerging markets in the global pharmaceutical scene. The sector is
highly knowledge based and its steady growth is positively affecting the Indian economy. The
organised nature of the Indian pharmaceutical industry is attracting several companies that are
finding it viable to increase their operations in the country.

TABLE OF CONTENTS
TITLE
PAGE
DECLARATION........................................................................................................ I
AKNOWLEDGEMENT............................................................................................ II
EXECUTIVE SUMMARY........................................................................................ III
TABLE OF CONTENTS.......................................................................................... IV
LIST OF FIGURES................................................................................................... V
CHAPTER
1. Introduction..........................................................................................................
2 Review of Literature............................................................................................
3. Overview of Aviation Industry...........................................................................
3.1. Global Aviation Industry
3.1.1. Global Passenger Traffic........................................................................
3.1.2. Global Cargo Traffic..............................................................................
3.2. Indian Aviation Industry
3.2.1. Indian Passenger Traffic........................................................................
3.2.2. Indian Cargo Traffic..............................................................................
4. Types of Aircrafts
4.1. Introduction...................................................................................................
4.1.1. All Cargo Aircraft...................................................................................
4.1.2. Passenger Aircraft..................................................................................
5. Challenges & Issues in Indian Aviation Industry
5.1. Introduction Evolution of Indian Aviation Industry..............................
5.2. Reforms in Regulations and Air Transportation.......................................
5.3. Trends in Aviation Industry........................................................................
5.4. Aviation Sector Boom
5.4.1. Reason for Boom in Aviation Industry.................................................
5.4.2. Indian Aviation Boom The Myth and Reality...................................
5.5. Challenges for Aviation Industry................................................................
6. PEST Analysis on Indian Aviation Industry
6.1. Overview........................................................................................................
6.2. PEST Analysis...............................................................................................
6.2.1. Political Factors......................................................................................
6.2.2. Economic Factors....................................................................................
6.2.3. Social Factors..........................................................................................
6.2.4. Technological Factors.............................................................................
7. Hypothesis Testing
7.1 Test for relationship between GDP and growth rate of cargo...................
7.2 Test for relationship between GDP and number of passengers................

1
3
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41

8. The Runway ahead Conclusion....................................................................

43

REFERENCES...........................................................................................................

44

LIST OF FIGURES
FIGURE
3.1
3.2
3.3
3.4
3.5
3.6
4.1
4.2
4.3
4.4
4.5
5.1
5.2

TITLE
PAGE
Projected Growth rate of Aviation Industry............................
5
Trends in Aviation Industry Globally......................................
6
Growth in Indian Passenger Traffic.........................................
11
Passenger Traffic Growth Trend Worldwide Vs India.......
15
Cargo Traffic Growth Trend Worldwide Vs India..............
16
Trends in Air Traffic: Worldwide Vs India (2000-2010)........
17
Boeing Dreamlifter.....................................................................
19
AIRBUS Super Transporter......................................................
20
Boeing 737...................................................................................
20
Boeing 707...................................................................................
21
Boeing 787...................................................................................
22
DGCA Statistical Chart on Revenue & Operating Profit.......
28
Operating margins of Airlines...................................................
29