Indian pharma companies have played a significant role in enhancing India’s image as the pharma hub of the world. In the past few years, several small and mid-sized pharma companies have entered the Indian market. These firms have carved a niche in the highly competitive pharma market by producing world-class formulations and pharmaceutical products.
One of the emerging names in the Indian pharma sector, who has gained strong repute in the domestic as well as international markets, is Lifeline Industries Ltd. Founded in 2002, this Mumbai-based company is engaged in the development of active pharmaceutical ingredients (APIs) and intermediates.
In an exclusive interview to Bizxchange, Nikunj Kanakia, CMD of Lifeline Industries Ltd, reveals the secret behind his company’s stupendous success.
What inspired you to set up Lifeline Industries?
Despite coming from a non-business background, I always dreamt of becoming an entrepreneur and lead an enterprise that could contribute to the economic growth of the nation. My objective was to run a global company that provided employment opportunities to hundreds of people.
With these objectives in my mind, I studied the market and realised that the pharma industry was best-suited to help me achieve my target. It was a promising segment that presented huge opportunity to a new entrant.
What sets your company apart from the rest in the pharmaceuticals industry?
In the last 7 years, our company has grown steadily. Last year, we grew by around 100%. Our business has grown both organically and inorganically. Right acquisition, at the right time and at the right price has given us an edge in terms of product mix and portfolio, R&D, technology, production capacity, intellectual property, human capital, world-class facilities, market reach and financial growth. The right mix of the above factors with astute financial planning and a robust business model has ensured this growth.
How can India turn into a force to reckon with in the pharma industry in the coming years?
India has a rich base of human and intellectual capital. This, coupled with our excellence in manufacturing products that meet global standards at competitive pricing, gives India a huge thrust in the global platform. With generic drugs gaining acceptance across the world and drugs worth $100 billion to go off-patent in the next 3-5 years, there exists immense growth opportunities in this segment which Indian pharma companies are well-equipped to capitalise on. Moreover, the Indian pharma industry has emerged as a major hub for activities such as outsourcing, manufacturing and research.
What should be the government’s role in boosting the pharma industry? Has the Union Budget met the expectations of the pharma sector?
The government’s decision for higher budgetary allocation for the health sector is a welcome step. The government should however consider more incentives for R&D and offer tax sops to facilitate the growth of this sector. We will be benefited by some of the policy decisions taken for the larger growth of the economy. However, nearly all our demands have been ignored by the government.
To what extent has the economic slowdown affected the pharma sector?
The ongoing economic recession has had a severe impact on the industry. Not only has liquidity dried up, payment cycles have also been extended. In addition, export sales growth has also slowed down due to plummeting demand in the global markets.
Are you eyeing expansion in the next few years?
Strategic buy-outs have been a part of our strategy and will continue to be so. However, all our acquisitions are very well-planned, minutely evaluated and systematically executed.
How can the SMEs in the pharma industry become globally competitive?
SMEs can offer products at very competitive prices as they have low overhead costs. Furthermore, with proper implementation of certain norms they can become an associate to bigger companies. In this process, they can develop skills and in the long run emerge as key growth drivers of the industry.
A TIMES GROUP INITIATIVE