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OTC Pharmaceuticals inIndia

Industry Profile

Reference Code: 0102-0364Publication date: December 2007


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India - OTC Pharmaceuticals

Datamonitor (Published December 2007) Page 2

ABOUT DATAMONITOR

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EXECUTIVE SUMMARY



EXECUTIVE SUMMARY

Market Value

The Indian OTC pharmaceuticals market grew by 6.2% in 2007 to reach a value of

$1.6 billion.

Market Value Forecast

In 2012, the market is forecast to have a value of $2 billion, an increase of 29.7%

since 2007.

Market Segmentation I

Topical OTC medicines form the most lucrative sector of the Indian market, with a

17.6% share of the market by value.

Market Segmentation II

India accounts for 4.8% of the Asia-Pacific market by value.

Market Share

Cipla is the leading company in the Indian market, with a 16.7% share of the market

by value.

Distribution

Pharmacies and drugstores form the most lucrative distribution channel, with a 70.9%

share of the Indian market by value.


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CONTENTS



TABLE OF CONTENTS

EXECUTIVE SUMMARY 3

CHAPTER 1 Market Overview 7

1.1 Market Definition 7

1.2 Research Highlights 7

1.3 Market Analysis 8

CHAPTER 2

Market Value 9

CHAPTER 3 Market Segmentation I 10

CHAPTER 4 Market Segmentation II 11

CHAPTER 5 Market Share 12

CHAPTER 6 Five Forces Analysis Error! Bookmark not defined.

6.1 Summary 13

6.2 Buyer Power 14

6.3 Supplier Power 15

6.4 New Entrants 16

6.5 Substitutes 18

6.6 Rivalry 19

CHAPTER 7 Leading Companies 20

7.1 Dabur India Limited 20

7.2 Cipla Ltd 23


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CONTENTS



7.3 Zandu Pharmaceutical Works Ltd 25

CHAPTER 8 Distribution 28

CHAPTER 9 Market Forecasts 29

9.1 Market Value Forecast 29

CHAPTER 10 Macroeconomic Indicators 30

CHAPTER 11 Appendix 32

11.1 Methodology 32

11.2 Industry Associations 33

11.3 Related Datamonitor Research 33


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CONTENTS



LIST OF TABLES

Table 1: India OTC Pharmaceuticals Market Value: $ billion, 2003-2007.........................9

Table 2: India OTC Pharmaceuticals Market Segmentation I: % Share, by Value, 2007 10

Table 3: India OTC Pharmaceuticals Market Segmentation II: % Share, by Value, 2007

.........................................................................................................................11

Table 4: India OTC Pharmaceuticals Market Share: % Share, by Value, 2007 ..............12

Table 5: Key Facts: Dabur India Limited.........................................................................20

Table 6: Key Financials: Dabur India Limited..................................................................22

Table 7: Key Facts: Cipla Ltd..........................................................................................23

Table 8: Key Financials: Cipla Ltd ..................................................................................24

Table 9: Key Facts: Zandu Pharmaceutical Works Ltd ...................................................25

Table 10: Key Financials: Zandu Pharmaceutical Works Ltd............................................27

Table 11: India OTC Pharmaceuticals Distribution: % Share, by Value, 2007..................28

Table 12: India OTC Pharmaceuticals Market Value Forecast: $ billion, 2007-2012 ........29

Table 13: India Size of Population (million) , 2003-2007...................................................30

Table 14: India GDP (Constant 2000 Prices, $ billion), 2003-2007...................................30

Table 15: India Inflation, 2003-2007 .................................................................................30

Table 16: India Exchange Rate, 2003...............................................................................31


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MARKET OVERVIEW



CHAPTER 1 MARKET OVERVIEW

1.1 Market Definition

The OTC pharmaceuticals market values the total sales of analgesics, cough and

cold preparations, indegestion preparations, topical OTC medicines, vitamins and

minerals and other OTC healthcare products (anti-smoking aids, eye & ear drops,

motion sickness medication, rectal medication and sleeping aids) at retail selling price

(RSP) and includes any applicable taxes. Any currency conversions used in the

creation of this report have been calculated using constant 2006 annual average

exchange rates.

Asia-Pacific comprises Australia, China, Japan, India, Singapore, South Korea and

Taiwan.

1.2 Research Highlights

The Indian OTC pharmaceuticals market generated total revenues of $1.6 billion in

2007, representing a compound annual growth rate (CAGR) of 6.4% for the period

spanning 2003-2007.

Sales of other OTC healthcare products proved the most lucrative for the Indian OTC

pharmaceuticals market in 2007, generating total revenues of $679.3 million,

equivalent to 43% of the market's overall value.

The performance of the market is forecast to decelerate, with an anticipated CAGR of

5.3% for the five-year period 2007-2012, which is expected to drive the market to a

value of $2 billion by the end of 2012.


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MARKET OVERVIEW



1.3 Market Analysis

The Indian OTC pharmaceuticals market consistently posted relatively strong rates of

growth throughout the 2003-2007 period. This trend is expected to continue over the

forthcoming five years, although at a declining rate.

The Indian OTC pharmaceuticals market generated total revenues of $1.6 billion in

2007, representing a compound annual growth rate (CAGR) of 6.4% for the period

spanning 2003-2007. In comparison, the Japanese and Chinese markets grew with

CAGRs of 2.2% and 7.1%, respectively, over the same period, to reach respective

values of $11.2 billion and $13.8 billion in 2007.

Sales of other OTC healthcare products proved the most lucrative for the Indian OTC

pharmaceuticals market in 2007, generating total revenues of $679.3 million,

equivalent to 43% of the market's overall value. In comparison, sales of cough and

cold preparations generated revenues of $200.5 million in 2007, equating to 12.7% of

the market's aggregate revenues.

The performance of the market is forecast to decelerate, with an anticipated CAGR of

5.3% for the five-year period 2007-2012, which is expected to drive the market to a

value of $2 billion by the end of 2012. Comparatively, the Japanese and Chinese

markets will grow with CAGRs of 1.4% and 6.8%, respectively, over the same period,

to reach respective values of $12 billion and $19.2 billion in 2012.


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MARKET VALUE



CHAPTER 2 MARKET VALUE

The Indian OTC pharmaceuticals market grew by 6.2% in 2007 to reach a value of

$1.6 billion.

The compound annual growth rate of the market in the period 2003-2007 was 6.4%.

Table 1: India OTC Pharmaceuticals Market Value: $ billion, 2003-2007

Year $ billion INR billion % Growth2003 1.2 51.52004 1.3 54.9 6.40%2005 1.4 58.5 6.60%2006 1.5 62.1 6.30%2007 (e) 1.6 66.0 6.20%CAGR, 2003-2007: 6.4%

Source: Datamonitor D A T A M O N I T O R

Figure 1: India OTC Pharmaceuticals Market Value: $ billion, 2003-2007


0.0

0.2

0.4

0.6

0.8

1.0

1.21.4

1.6

1.8

2003 2004 2005 2006 2007

$

billion

5.9%

6.0%

6.1%

6.2%

6.3%

6.4%

6.5%

6.6%

%Growth

$ billion % Growth


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MARKET SEGMENTATION I



CHAPTER 3 MARKET SEGMENTATION I

Topical OTC medicines form the most lucrative sector of the Indian market, with a

17.6% share of the market by value.

In addition, cough and cold preparations generate a further 12.7% of the market's

revenues.

Table 2: India OTC Pharmaceuticals Market Segmentation I: % Share, by

Value, 2007

Category % ShareOther OTC healthcare products 43.00%Topical OTC medicines 17.60%

Cough and cold preparations 12.70%Analgesics 10.80%Vitamins and minerals 10.50%Indigestion preparations 5.50%Total 100.0%


Figure 2: India OTC Pharmaceuticals Market Segmentation I: % Share, by

Value, 2007

Other OTC

healthcare

products

43%

Indigestion

preparations5.5%Vitamins and

minerals

10.5%

Analgesics

10.8%

Cough and cold

preparations

12.7%

Topical OTC

medicines

17.6%



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MARKET SEGMENTATION II



CHAPTER 4 MARKET SEGMENTATION II

India accounts for 4.8% of the Asia-Pacific market by value.

In comparison, China generates 42% of the market's revenues.

Table 3: India OTC Pharmaceuticals Market Segmentation II: % Share,

by Value, 2007

Geography % ShareChina 42.00%Japan 34.00%Rest of Asia-Pacific 10.30%South Korea 8.90%India 4.80%Total 100.0%


Figure 3: India OTC Pharmaceuticals Market Segmentation II: % Share,

by Value, 2007

Rest of Asia-

Pacific10.3%

South Korea

8.9%

India

4.8%

China42%

Japan

34%



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MARKET SHARE



CHAPTER 5 MARKET SHARE

Cipla is the leading company in the Indian market, with a 16.7% share of the market

by value.

In comparison, Zandu Pharmaceutical Works Ltd generates 10.7% of the market's

revenues.

Table 4: India OTC Pharmaceuticals Market Share: % Share, by Value,

2007

Company % ShareCipla 16.70%Zandu Pharmaceutical Works Ltd 10.70%

Dabur India Limited 8.30%Other 64.30%Total 100.0%


Figure 4: India OTC Pharmaceuticals Market Share: % Share, by Value,

2007

Other

64.3% Dabur India

Limited

8.3%

Zandu

Pharmaceutical

Works Ltd

10.7%

Cipla

16.7%



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FIVE FORCES ANALYSIS



CHAPTER 6 FIVE FORCES ANALYSIS

6.1 Summary

Figure 5: Forces Driving Competition in the OTC Pharmaceuticals Market

in India, 2007

0

1

2

3

4

5Buyer Pow er

Supplier Pow er

New EntrantsSubstitutes

Degree of rivalry

Score for each force is mean of scores for its drivers.Total area & color indicates intensity of competition overall.


The OTC pharmaceutical market has manufacturers as players, and distributors such

as pharmacies and supermarkets as buyers. Suppliers include manufacturers of

active pharmaceutical ingredients, and supplier power is strong. Market entry is made

more difficult by the product development costs where a new drug is concerned, and

by the need to obtain regulatory approval for products.

Prescription drugs are the main substitute, but the threat they pose is weak: they are

frequently used in situations where no adequate OTC remedy exists. Rivalry is

strong, with large research-based pharma players and major companies involved in

household and personal care fighting with smaller generics manufacturers for market

share.

Intensity of competition

Weak Strong


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6.2 Buyer Power

Figure 6: Drivers of Buyer Power in the OTC Pharmaceuticals Market in

India, 2007

0

1

2

3

4

5Buyer size

Oligopsony threat

Low-cost switching

Undifferentiated product

Tendency to sw itch

Price sensitivity

Financial muscle

Backwards integration

Buyer independence

Product dispensability

Scores: 1= weak driver...5=strong driver


This market will be analyzed taking manufacturers of over the counter drugs as

market players, with the distributors of drugs, including pharmacies, general stores

and supermarkets, as buyers. Globally, pharmacies and drugstores form the most

important distribution channel for OTC drugs. These distributors have less buyer

power than the large supermarkets, due to their smaller size. Retailers often wield

significant power in supply chains. However, consumer preference for a wide

availability of self-medication options forces buyers in this market to stock OTC

pharmaceuticals.

However, OTC drugs are much more important to the business of a pharmacy than a

supermarket and as a result buyers' switching costs can differ slightly in this market.

The UK-based retailer Boots has diversified into the development and manufacturing

of drugs such as Ibuprofen. This form of backward integration is not common but can

increase pressure on market players. Overall buyer power is moderate.

Strength of buyer power

Weak Strong


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6.3 Supplier Power

Figure 7: Drivers of Supplier Power in the OTC Pharmaceuticals Market

in India, 2007

0

1

2

3

4

5Supplier size

Oligopoly threat

Sw itching costs

Player independence

Player dispensabilityNo substitute inputs

Importance of quality/cost

Differentiated input

Forward integration



Suppliers in the market are mainly manufacturers of Active Pharmaceutical

Ingredients (APIs). Market players require a wide range of specialized ingredients,

which maintains supplier power. However, many large pharmaceutical companies

have operations in chemical manufacturing. Teva Pharmaceuticals has established

backwards integration and manufactures a number of API products and Merck & Co

also has its own chemicals division. Smaller pharmaceutical companies do not

operate facilities sophisticated enough to manufacture chemical ingredients

themselves and therefore are often heavily reliant upon API manufacturers.

Although some chemical manufacturers only supply to pharmaceutical companies,

many also supply to numerous industries and develop chemicals for food ingredients,

animal feed and suspensions and ceramics, reducing their dependence on revenues

gained from pharmaceutical supply. APIs are most often supplied to pharmaceutical

companies under contractual arrangements, increasing switching costs and

enhancing the power of suppliers. Overall supplier power is strong.

Strength of supplier power

Weak Strong


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6.4 New Entrants

Figure 8: Factors Influencing the Likelihood of New Entrants in the OTC

Pharmaceuticals Market in India, 2007

0

1

2

3

4

5Low-cost sw itching


Scale unimportant

Low f ixed costs

Little regulation

Incumbents acquiescentDistribution accessible

Suppliers accessible

Little IP involved

Weak brands

Market grow th



The over the counter drug market involves a high level of specialization and expertise

along with high upfront investment costs, making the market difficult to enter. The

main costs are incurred from extensive clinical trials. Large companies have an

advantage as scale economies can help to achieve success in the R&D process.

Despite this smaller firms are prevalent in the market and can still achieve efficiency

through collaborations with larger firms, which allows them to benefit from increased

funds, creating more innovation and research opportunities. Smaller generic firms are

common in India, where incumbents manufacture some of the countrys

pharmaceutical needs.

This is due to favorable policies in the country to keep drug prices low for end users

in the country The most realistic entry method would be as a small generic drug firm;

a much less costly business model than branded drug manufacture. In developing

countries, over-the-counter drug manufacturers are much more likely to be generic

firms and traditional medicine manufacturers. In these countries regulation of

prescription drugs is not always distinguished from OTC drugs. However, for a

medicine to be granted OTC status in countries such as the US and the UK, it must

have a wide safety margin and be effective. There are opportunities for new

companies in over-the-counter drugs with the strong growth of the market.

Likelihood of new entrants

Weak Strong


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This is being fostered by an ageing population and by a global trend toward self-

medication. There is also strong growth potential in developing markets due to the

liberalization of distribution channels and increasing awareness of health issues in

these regions. In the pharmaceutical industry product recalls can damage brand

image and issues over the safety of drugs can impact end users decisions to

purchase OTC drugs, lowering switching costs.

Even in this market where some products are highly important to the end user,

customer preferences can have a strong pull-through on manufacturers. However, it

is unusual for an OTC drug to be withdrawn from the market due to safety issues,

although there have been a few instances of this. Drugs often become over-the-

counter by switching from a prescription drug, which can increase consumer

confidence in the product. Overall the threat of new entrants is moderate.


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6.5 Substitutes

Figure 9: Factors Influencing the Threat of Substitutes in the OTC

Pharmaceuticals Market in India, 2007

0

1

2

3

4

5Low-cost sw itching

Cheap alternativeBeneficial alternative



Substitutes include prescription medicines, although these are often viewed as

treating more serious ailments and illnesses thus the impact of this threat is

questionable. Also, pharmaceutical companies may find that it would boost their

revenues to apply for OTC status for a prescription drug. Overall, the threat of

substitutes is weak.

Threat of substitutes

Weak Strong


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6.6 Rivalry

Figure 10: Drivers of Degree of Rivalry in the OTC Pharmaceuticals Market

in India, 2007

0

1

2

3

4

5Competitor size

Number of players

Low-cost switching


Low f ixed costs

Easy to expandHard to exit

Lack of diversity

Similarity of players

Storage costs

Zero-sum game?



The pharmaceutical industry is witnessing increasing consolidation leading to bigger

companies and more competition. For example, Johnson & Johnson acquired Pfizer's

consumer healthcare business in December 2006. Most of the leading firms are large

multinationals, and their wide geographic spread reduces rivalry. However, these

firms have typically high fixed costs, as drug research and development requires

continued investment.

Exit barriers are fairly high as most companies that manufacture OTC drugs are

focused on the pharmaceutical market and are similar to one another. However,

some personal care companies operate in the over the counter drugs market or even

in prescription pharmaceuticals meaning that exit barriers are lowered for these

companies. For example, Reckitt Benckiser owns the Nurofen and Strepsils brands

after acquiring Boots Healthcare International but is also primarily involved in the

production and distribution of household cleaning and personal care products.

In this market, manufacturers can differentiate by demonstrating a drug has greater

clinical benefit than another and also through a strong brand image. For example,

Ibuprofen is a popular painkiller but Nurofen is the best-known brand of this drug and

achieves strong sales. Sales growth has been sustained by innovation and

extensions to the product, for example, Nurofen fast relief has recently been

launched. The growth of this market mitigates rivalry somewhat. Overall, rivalry with

respect to the over-the-counter drugs market is moderate.

Degree of rivalry

Weak Strong


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LEADING COMPANIES



CHAPTER 7 LEADING COMPANIES

7.1 Dabur India Limited

Table 5: Key Facts: Dabur India Limited

Address: Kaushambi, Ghaziabad 201010, Uttar Pradesh, IndiaTelephone: 91 120 398 2000Fax: 91 120 300 1000Website: www.dabur.comFinancial Year-End: MarchTicker: 500096Stock Exchange: Bombay Stock Exchange

Source: Company Website D A T A M O N I T O R

Dabur India Limited (DIL) is a fast moving consumer goods (FMCG) company that

develops, manufactures and distributes products in health care, personal care and

food products sectors. The company primarily operates in India and has a presence

in Nigeria, Egypt, Nepal, Bangladesh, UAE and the UK.

The company operates through three business units: consumer care business,

consumer health business and others.

The Consumer Care Division (CCD) caters to six distinct segments: hair care, oral

care, health supplements, digestives, home care, and skin and baby care. The hair

care segment products include hair oils, mustard oil and shampoos. These products

are available under brands Dabur Amla, Vatika and Anmol. In the oral care segment

the products include toothpaste, tooth powder and tooth brushes.

These products are available under brands Dabur, Babool, Meswakl and Promise.

The health supplement products include Chyawanprash, Glucose D and Honey. The

digestives segment's products comprise the Hajmola brands, Pudin Hara, Sat Isabgol

and Hingoli. The skin and baby care products include Lal Tail, Dabur Gulabari, Dabur

Honey Saffron soap and Dabur Ayurvedic Baby care products. The company's home

care products segment comprises Odomos brand, Odonil brand and SaniFresh, a

toilet cleaner.

The consumer health division (CHD) deals in products on the Ayurvedic medicinal

platform. The range of offerings that are based on 'grantha-based' formulations is

classified into over-the-counter products (OTCs), branded ethical and generic

products that include Asavs and classicals.


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LEADING COMPANIES



The others segment includes the Dabur's foods business and international

operations. Dabur's food business is conducted through its wholly owned subsidiary

Dabur Foods Limited (DFL). DFL focuses on juices, nectars and drinks. It also

supplies food additives like garlic paste and tomato puree.

A host of products are offered to institutional customers through the food services

division. DFL operates in the juice and nectar space with three brands: Real, Activ

and Coolers. The company has international operations in Nigeria, UAE and the US.

The company operates six subsidiaries: Dabur Foods Limited, Dabur Nepal Private

Limited, Dabur Egypt Limited, Dabur Oncology Plc, Dabur Finance Limited, and

Dabur Overseas Limited. The company has also established a joint venture with

Bongrain of France for the manufacture and marketing of specialty cheese and other

dairy products through Dabur International Limited.


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LEADING COMPANIES



Key Metrics

Table 6: Key Financials: Dabur India Limited

Metric 2003 2004 2005 2006 2007Revenues 302.5 293.5 339.2 419.3 492.7Net Income 18.8 23.6 34.4 47.2 62.4Profit Margin 6.2% 8.0% 10.1% 11.3% 12.7%Total Assets 141.2 95.5 119.8 137.7 147.8Total Liabilities 49.2 32.7 39.5 28.2 42.1

Source: Company Filings D A T A M O N I T O R

Figure 11: Revenues & Profitability: Dabur India Limited

0

100

200

300

400

500

600

2003 2004 2005 2006 2007

Year

US$Millions

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

ProfitMargin(%)

Revenues Net Income Profit Margin



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LEADING COMPANIES



7.2 Cipla Ltd

Table 7: Key Facts: Cipla Ltd

Address: Mumbai Central, Mumbai 400 008, IndiaTelephone: 91 22 2308 2891Fax: 91 22 2307 0013Website: www.cipla.comFinancial Year-End: MarchTicker: 500087Stock Exchange: Bombay


Cipla is a pharmaceutical company based in India. The company produces and

markets drugs and formulations in various conventional and advanced dosage forms,

including tablets, capsules, injections, ophthalmic preparations, tropical preparations,nasal preparations, rectal preparations, suspensions, syrups, drops, inhalers,

powders, intermediary preparations and sprays.

The company's prescription products cover such therapeutic categories as anticancer

drugs, antibiotics and antibacterials, cholesterol reducers, expectorants, eye and ear

preparations, hormone-related synthetic drugs, muscle relaxants, neurological

products and topical costicosteroids.

Cipla is also involved in the manufacture of over-the-counter products ranging from

calcium preparations, cough and cold medications and food supplements to

cosmetics and dental care products; the production of veterinary drugs, and themanufacture of active pharmaceutical ingredients and drug intermediates.

The company sells its products in over 160 countries around the globe. The company

has manufacturing facilities in Mumbai, Bangalore, Vikhroli, Patalganga, Kurkumbh,

Goa and Baddi.


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LEADING COMPANIES



Key Metrics

Table 8: Key Financials: Cipla Ltd

Metric 2003 2004 2005 2006 2007Revenues 352.8 461.4 547.9 707.9 830.5Net Income 54.7 67.7 90.4 134.1 147.4Profit Margin 15.5% 14.7% 16.5% 18.9% 17.7%Total Assets 269.4 339.9 404.6 562.8 766.2Total Liabilities 245.8 312.0 370.4 519.0 694.8


Figure 12: Revenues & Profitability: Cipla Ltd

0

100

200

300

400

500

600

700

800

900

2003 2004 2005 2006 2007

Year

US$Millions

0.0%

2.0%4.0%

6.0%8.0%

10.0%

12.0%14.0%

16.0%18.0%

20.0%

ProfitMargin(%)




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LEADING COMPANIES



7.3 Zandu Pharmaceutical Works Ltd

Table 9: Key Facts: Zandu Pharmaceutical Works Ltd

Address: 70 Gokhale Road (South), Dadar, Mumbai 400 025, IndiaTelephone: 91 263885 430 7021Fax: 91 263885 437 5491Website: www.zanduayurveda.comFinancial Year-End: MarchTicker: N/AStock Exchange: N/A


Zandu Pharmaceutical Works manufactures over-the-counter Ayurvedic products,

cosmetics and chemical products.

Ayurveda is a Sanskrit word meaning "science of long life". It is a medical practice of

healthy living with therapeutic measures. The products manufactured and distributed

by the company have a particular focus on this market.

The company has manufacturing facilities in six Indian locations: Mumbai, Taluka

Talasari, Vapi, Unnao, Piparia and Silvassa.

Products include balms, ointments and herbs (in oil-based and power preparations).

These are marketed for the relief of conditions such as inflammation, inability to

concentrate, minor pain, immune deficiency and infections.

Zandu Pharmaceutical Works has three subsidiaries; Leopard Investments, Zandu

Chemicals and Zandu Cosmetics.

Leopard Investments, based in Vapi, manufactures vegetable plant extracts.

Zandu Chemicals produces bulk drugs and intermediates to customer specifications.

Zandu Cosmetics applies the company's Ayurvedic methods to cosmetics,

manufacturing a range of natural cosmetics.

The company also has affiliations with the Zandu Foundation For Healthcare (ZFHC)

and the group's Research and Development Center.


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LEADING COMPANIES



The ZFHC is a non-profit charitable organization designed to research

agrotechniques and laboratory methods for pharmacognostic and phytochemical

research and clinical evaluation. The unit also seeks to develop new products for the

company's range.

Zandu Pharmaceutical Works exports worldwide, to the US, Europe and parts of Asia

and Africa, both as completed formulations and raw materials.


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LEADING COMPANIES



Key Metrics

Table 10: Key Financials: Zandu Pharmaceutical Works Ltd

Metric 2003 2004 2005 2006 2007Revenues 24.9 27.2 25.0 28.7 36.1Net Income 1.6 2.2 1.9 2.8 3.5Profit Margin 6.6% 8.1% 7.7% 9.6% 9.7%


Figure 13: Revenues & Profitability: Zandu Pharmaceutical Works Ltd

0

5

10

15

20

25

30

35

40

2003 2004 2005 2006 2007

Year

US$Millions

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

ProfitMargin(%)




28/33

DISTRIBUTION



CHAPTER 8 DISTRIBUTION

Pharmacies and drugstores form the most lucrative distribution channel, with a 70.9%

share of the Indian market by value.

In addition, independent retailers generate a further 14.9% of the market's revenues.

Table 11: India OTC Pharmaceuticals Distribution: % Share, by Value,

2007

Channel % SharePharmacies / drugstores 70.90%Independent retailers 14.90%Specialist retailers 7.60%

Other 6.70%Total 100.0%


Figure 14: India OTC Pharmaceuticals Distribution: % Share, by Value,

2007

Pharmacies /

drugstores

70.9%

Other

6.7%

Independent

retailers

14.9%

Specialist

retailers

7.6%



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MARKET FORECASTS



CHAPTER 9 MARKET FORECASTS

9.1 Market Value Forecast

In 2012, the Indian OTC pharmaceuticals market is forecast to have a value of $2

billion, an increase of 29.7% since 2007.

The compound annual growth rate of the market in the period 2007-2012 is predicted

to be 5.3%.

Table 12: India OTC Pharmaceuticals Market Value Forecast: $ billion,

2007-2012

Year $ billion INR billion % Growth2007 1.6 66.0 6.20%2008 1.7 69.9 6.00%2009 1.8 73.9 5.80%2010 1.9 78.0 5.50%2011 2.0 81.9 5.00%2012 2.0 85.6 4.50%CAGR, 2007-2012: 5.3%


Figure 15: India OTC Pharmaceuticals Market Value Forecast: $ billion,

2007-2012


0.0

0.5

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1.5

2.0

2.5

2007 2008 2009 2010 2011 2012

$

billion

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1.0%

2.0%

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4.0%

5.0%

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%Growth

$ billion % Growth


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MACROECONOMIC INDICATORS



CHAPTER 10 MACROECONOMIC INDICATORS

Table 13: India Size of Population (million) , 2003-2007

Year Population (million) % Growth2003 1057.52004 1075.5 1.70%2005 1093.6 1.70%2006 1111.7 1.70%2007 1129.9 1.60%


Table 14: India GDP (Constant 2000 Prices, $ billion), 2003-2007

YearConstant 2000

Prices, $ billion % Growth2003 552.72004 591.9 7.10%2005 643.2 8.70%2006 691.1 7.40%2007 743.5 7.60%


Table 15: India Inflation, 2003-2007

Year Inflation Rate (%) % Growth2003 3.92004 3.4 -11.40%2005 4.0 16.90%2006 3.2 -20.60%2007 3.4 7.30%



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Table 16: India Exchange Rate, 2003

YearExchange Rate

($/INR)

2003 0.021432004 0.022062005 0.022672006 0.022072007 0.02393



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APPENDIX



CHAPTER 11 APPENDIX

11.1 Methodology

Datamonitor Industry Profiles draw on extensive primary and secondary research, all

aggregated, analyzed, cross-checked and presented in a consistent and accessible

style.

Review of in-house databases Created using 250,000+ industry interviews and

consumer surveys and supported by analysis from industry experts using highly

complex modeling & forecasting tools, Datamonitors in-house databases provide the

foundation for all related industry profiles

Preparatory research We also maintain extensive in-house databases of news,analyst commentary, company profiles and macroeconomic & demographic

information, which enable our researchers to build an accurate market overview

Definitions Market definitions are standardized to allow comparison from country to

country. The parameters of each definition are carefully reviewed at the start of the

research process to ensure they match the requirements of both the market and our

clients

Extensive secondary research activities ensure we are always fully up-to-date with

the latest industry events and trends

Datamonitor aggregates and analyzes a number of secondary information sources,

including:

- National/Governmental statistics- International data (official international sources)- National and International trade associations- Broker and analyst reports- Company Annual Reports- Business information libraries and databases

Modeling & forecasting tools Datamonitor has developed powerful tools that

allow quantitative and qualitative data to be combined with related macroeconomic

and demographic drivers to create market models and forecasts, which can then be

refined according to specific competitive, regulatory and demand-related factors

Continuous quality control ensures that our processes and profiles remain focused,

accurate and up-to-date


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APPENDIX

11.2 Industry Associations

World Self-Medication IndustryC.I.B - Immeuble A - "Keynes", 13, ch. du Levant,01210 Ferney-Voltaire, France

Tel: 33 450 28 47 28Fax: 33 450 28 40 24http://www.wsmi.org

11.3 Related Datamonitor Research

Datamonitor Industry Profiles

Global OTC Pharmaceuticals

OTC Pharmaceuticals in the United States

OTC Pharmaceuticals in Australia

OTC Pharmaceuticals in Belgium

OTC Pharmaceuticals in Brazil

OTC Pharmaceuticals in Canada

OTC Pharmaceuticals in the Czech Republic

OTC Pharmaceuticals in Denmark

OTC Pharmaceuticals in Europe

OTC Pharmaceuticals in France

OTC Pharmaceuticals in Germany

otc pharamceuticals

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