The Indian Pharmaceutical Industry

Industry Forecast

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The Indian pharmaceutical industry was growing at 11% CAGR in 2014. Due to the sudden dip in growth in 2015 the CAGR came down to 6.38%. Looking at the trend we can forecast that the industry will grow at 22%, 7% and 6% in the coming 3 years. The growth of 22% is only due to the negative growth rate in 2015 and represents the recovery in the sales and maintaining a CAGR of 8% in the future.

Glenmark Pharmaceuticals

Glenmark Pharmaceuticals is a pharmaceutical company headquartered in Mumbai, India. It manufactures and markets generic formulation products and active pharmaceutical ingredients (API), both in the domestic and international markets. In the formulation business, its business spans segments such as Dermatology, Internal Medicine, Paediatrics, Gynaecology, ENT and Diabetes.

It has four manufacturing facilities for formulations and additional three facilities for APIs. These manufacturing facilities are located in the states of Maharashtra, Goa, Himachal Pradesh and Gujarat in India.

It operates in 60 countries across 4 continents with a significance presence in markets like India, Russia and Brazil through its subsidiaries, Glenmark Pharmaceuticals USA, Glenmark Pharmaceuticals UK. Glenmark Pharmaceuticals SA.

Lets look at the Sales growth of the company.

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Source: Annual Reports

If we look at the CAGR, the company is growing at 20.93%. But the sales growth of last two years has been slower at 17% & 15% respectively. Therefore considering the similar curve in the future we can project the sales growth at 14%, 13.5% and 13% in the coming 3 years.