Clockwise from top L-R: Mr S Thyagarajan, chairman of Spinco Biotech group of companies; Mr KV Venugopalan, president, Waters India; Mr Alagu Subramaniam AR, country manager, West Pharmaceutical Packaging India; Dr Raja Mugasimangalam, CEO, Genotypic Technology; Mr Devashish Ohri, MD – South Asia, Life Technologies; and Mr Prahalad Achutharao, CEO, Geschickten Biosciences
The government of India on December 17th lowered the economic growth estimate for 2012-13 to 5.7-5.9 percent as against the 7.6 percent projected by Economic survey in March. This sluggish growth in 2012 has impacted our industry adversely affecting the business. However, this downward pattern is not unique to India as many advanced economies and emerging ones have reported similar downhill trends.
The Indian analytical, laboratory and life science instrumentation market, valued around $1billion is struggling to achieve its projected growth of 10-15 percent this year. This decline in business has escalated the cost of sales while shrinking margins in a market where customers' expectations of support is significantly higher. Our focus is on two important market segments - chromatography-mass spectrometry and life science and we hope that the continued expansion and growth in pharma and biotech industries and thrust by government in academia and research laboratories will help us to achieve a minimum of 10 percent growth in 2013.
- Mr S Thyagarajan, chairman of Spinco Biotech group of companies
Analytical instruments industry has faced very challenging market conditions in 2012 due to combination of many factors including but not limited to global and Indian economic conditions, high inflation and depreciation of currency in India. But the future looks brighter, particularly for the pharmaceutical and life sciences market.
Pharmaceutical industry has registered close to 15 percent growth so far in this financial year. To sustain growth, capital investment is mandatory and we expect companies to make large capital purchases in Q4 FY 2012-13 and the following year. Due to regulatory, legal and administrative hurdles, the clinical research market has slowed down significantly in the past two years. Progress has been made by issuing robust regulatory guidelines with compensation mechanisms and we expect the sector to emerge once again in the forefront of global scene as the advantages of doing clinical trials in India continues to attract global players.