OTCs are in Action in India. Indian prime minister and enthusiastic yoga practitioner, Narendra Modi, has appointed Shripad Yesso Naik to be the first minister of the Yoga & Traditional Medicines division of the Health Ministry. According to the Wall Street Journal India, this department has been concentrating on herbal and traditional remedies for 25 years, and will be supported with a 2015 budget of $144mn. Traditional medicines are used by 70-80% of the Indian population, and the Government’s focus on improving quality standards and expanding manufacturing will impact not only the domestic market, but exports as well.
Nicholas Hall & Company’s DB6 global database forecasts that the market for OTC medicines in India will grow by about 158% over the next 10 years to US$5.7bn, with a 10% CAGR. Currently, the OTC market remains ill-defined, with OTC basically a default status for products not classified as Rx, complicated by widespread sales of Rx drugs under the counter without a prescription. This is likely to change over the coming years, as health professionals, most recently the Indian Medical Association, support the creation of an OTC list in line with global standards.
Not surprisingly, multinational companies are garnering for position in India. In the past year, Nicholas Hall & Company’s OTC.Newsflash has reported the following:
– This month, J&J completed the acquisition of fruit-based electrolyte drink ORS-L from Jagdale Industries for US$122mn. The company also recently announced it was building a new $66mn manufacturing facility for personal hygiene and skin products in Telangana
– In September, Abbott opened a new plant in Gujarat, which will manufacture nutritional products specifically for the local market. The US-based MNC invested US$73mn in the facility, its third in India
– Earlier this year, GSK increased its stake in its pharmaceuticals subsidiary in India from 50.7% to 75% in a $1bn deal, following a voluntary Open Offer
This week OTCs in Action thanks Nicola Jay, editor of Nicholas Hall & Company’s OTC INSIGHT Asia-Pacific, for her expertise on the OTC market in India.