Investment Opportunities in India

November 24, 2011

A Brief on the Pharmaceutical Industry in India

The pharmaceutical industry in India has indeed extended its base and created a greater scope for manufacturing various drugs in tablet, capsule, injectable, liquid and oral forms. This in turn has also enhanced the scope for manufacturing of bulk drugs under various therapeutic categories. There are about 400 bulk drugs available in the Indian market and among them about 300 are produced domestically. Apart from that India has emerged as one of the most favoured destination for creating successful collaboration in the sphere of Research & Development bioinformatics, contract research and manufacturing and clinical research. This in turn has made way to grow greater compliance with international standards in terms of current Good Manufacturing Practices (cGMP), as Good Laboratory Practices (GLP) and Good Clinical Practices (GCP).

Factors influencing the development of the Pharmaceutical Market:

India has created a distinct entity in production of generic medicines sold in the global market. Alongside, India has even established itself as one of the fastest players among the ones steadily growing up in the global pharmaceutical sphere. Here are some of the important factors that have accelerated the growth of the drugs and pharmaceutical market. They are as follows,

  • The enhancing rate of population
  • The growing income
  • The improvement in the infrastructure of the healthcare sector
  • The increasing rate of critical ailments related to lifestyle, such as, diabetes, cardiovascular diseases, and central nervous system; and others.
  • Health insurance penetrating deeper
  • Adopting more of patent products
  • Expiration of patents and the increase of aging population in Europe, US and Japan

This is the reason why pharma industry in India is at an emerging state with more and more multinationals from the domain joining the sector. The proof can be coined from the fact that about 15 out of 20 pharmaceutical giants ruling the world have their presence in India. In fact, drugs and pharmaceutical industry in India had been the among the sectors that attract high FDI and this quite bear testimony to the fact.

Now let’s peep into the key characteristics of the pharma industry in Indiaand this will surely enable us to find out the significant features pertaining to the sector. Here it goes,

  • Production of 70% of bulk drugs proved to be self reliant and almost the entire requirement is met by formulations within the country
  • Low production cost
  • Low R&D costs
  • Manpower decked with innovative, scientific thought
  • National laboratories with world-class facilities
  • Specialized Efforts towards process development and development of cost effective technologies
  • Increasing balance of trade in pharma sector
  • Efficient and cost effective source for procuring generic drugs, especially the ones going off patent in the next few years
  • An excellent centre for clinical trials in view of balancing the population diversity.

Now, if it is about finding the link between Indian retail industry and pharmaceuticals then it can be well seen that the estimated value of pharma retailing has been set at about 300 billions in which 15 percent of the 51 lakh Indian retail stores being chemists. It can also be said that pharma retail sector in India is so far being dominated by unorganized players but at the same time it can also be said that a major commove followed by consolidation of the pharma sector in the Indian retail industry will be witnessed soon.

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Different Prospect for Investing In India

Investment for the purpose of saving in future is certainly a good idea. There are large numbers of companies that offer plenty of opportunities for different individuals. India with its mature capital market has the capacity to offer several investment Opportunities to different people with different income groups. Being a resident of India, if you are planning to make invest in some of the reliable companies, so that you can get greater profit in the future, you should have a look at the prospect of the market and the conditions of business in India. This will help you to understand the best for investment.

However, the most important thing that you would have to consider in this context is your need for liquidity. At the same time, you would also have to understand your capacity to take risks, and the kind of returns that you are expecting from such kind of investing in India. Only then, it would be easier for you to determine the company under which you can invest, as well as, the plans that can be beneficial for you in accordance with your requirements. Mutual funds and equity funds are good options that you can think of because you would not only have to undertake risks, but at the same time, you would also get good returns in accordance with the conditions of the market.

If you are thinking of a safe option where you would invest without any risk, you can definitely think of the scheme of Public Provident Fund. However, you would have to continue the scheme for a long period of time. There are certain rules and regulations associated with these investment opportunities, and therefore, it is very essential to know these rules associated with these investment opportunities. Only in such a case, it would be possible for you to know the different conditions applicable.

On the other hand, you can also think of investing in shares and debentures provided the fact that you are well aware of the opportunities of such a business in India. Shares and debentures are from different companies, and it is essential to recognize the ideal time under which the investment can be done. When the market is down, investment is a good option, while when there is a rise in the market condition, the chances of making profits will increase. Consequently, you can be assured that you would get greater returns for your investment.

Fixed deposits in banks are also good options for investing in India. There are several banks that offer the opportunity of making fixed deposits of a certain sum of money for a particular period of time. Though the return in this case is low, yet you can be assured that these are very safe, and there is a fixed interest that you would receive from these banks annually. Therefore, with these wide varieties of options present, it is largely up to you to determine the kind of investment that you would go for, so that you can make some money.

November 9, 2011

Some facts about Business in India

Business is something that affects the society as a whole and is that work which makes things occurs. There are numerous branches of business that one can opt for especially in India.

Tourism is one of the most flourishing businesses in India because of her diverse aspects in nature, culture, education and religion. The automobile sector along with auto components is bringing in tremendous gains for entrepreneurs. India has captured the textiles arena for quite a long time. Besides these social ventures are boosting up the less privileged sector of India. The IT sector too has contributed a lot to the economic conditions. A business in engineering goods is growing at a rapid pace and innovative services are fetching great earnings for businessmen. The rising demand for training and specialized education has caused many to go for such business as educational institutes and training centers. A productive business lies ahead for organic farming in India. There is nothing to be said about the media industry which is perhaps the most interesting and flourishing business in the modern world. Entrepreneurs are into the toy business and more on the developing prospects of the recycling business.

The power sector in India has gone through a rapid progress and is expected to move on more in the next decades. Not only will the governments deal with power matters but it will be open to the private sectors also. Due to shortage of natural resources like coal, the power sector in India is experiencing challenges and hence various development models are being adopted to move forward with the new projects. Continuous efforts are being made to increase transmission capacity, power generation and distribution of power to all sectors of development. Water resources and projects on hydro power also helped a lot in supplying water for irrigation, flood control and power supply as well. Solar power has also gained a tremendous amount of importance in India in the recent years. Various modern techniques and state-of-the-art methods are being utilized to meet the requirements of the public in general.

The pharmaceutical industry in India is the third largest in volume in the world and most probably will lead the Indian manufacturing sector. Bengal Chemicals, IDPL, Pharmaceutical Works and such other companies are the earliest government owned drug manufacturing units and are working till today. The Patents Act has taken Indian drugs to the world market. Most of the pharmaceutical companies that operate in India including the multinational companies, they all employ Indian employees from the highest management level to the lowest rank. Most of the units are hierarchical in nature. Pharmaceutical products that are homegrown are handled by both private and public enterprises. These companies are often passed on to the son by the father and the majority of the shares are held by the founding family. Pharmaceutical industry in India gained a high position in the global field due to its innovative generic drugs and other pharmaceutical ingredients.

There are great prospects in business in India but you need the dedication, sincerity and the especial ability to capture the market with your expertise.

Investment in the power, education and finance sector in India: An Overview

A global recovery was witnessed during the 2nd part of the FY 2009-10 and on the back of it 2010-11 kicks off much but the equity market no more delayed to take the cue at a much earlier stage. Since June 2009 to March 2010 a trend remain bound to the range could be seen in the market and it ranged from 4500 – 5300 on the Nifty Index. This particular trend in the movement has been pointed out as a consolidation based on a broad scale after the market recovered at a high pace from the trough levels encountered during the recession period.

The promising part is that the market condition again came back to the 5300 level at Nifty and a breakout is varying much on the go. Hence this is the time to be prudent enough to explore the various sectors and the industries in order to find out opportunities to put the hard earned money in the highly profitable sectors. Here are few choices for you to decide on which had been the high flying sectors during 2010-11 and were considered as the winners. Hope this will help you to gather little insight to help in your investment.

The growth story of India is certainly indebted to the increasing rate of power generation in the country. It can be well said that energy is one of the components that has largely contributed to the development of the country.

One of the important objectives targeted by the government of India is electricity for all and the deadline is 2012, which will be by the end of the 11th Five year plan. With an exponential increment in the demand of electricity is leading to greater opportunities for the investors to plough the mullah in both private and public sector. The power sector in India is thus gaining more significance with each passing day. The thermal power plants based on generation of coal is at present accounting for about 2/3rd of the energy requirement of the country and the increasing awareness of the government about generating power by means of cleaner nuclear power plants is also on the rise.

On the other hand investment in the Indian education sector is another lucrative option and is going to reap huge profit if the money will be ploughed in a planned manner. One must explore the roots of the Indian education sector and find out as many options as possible and then zero on a decision. The financial services sector is another nice option. As it is often been said that the banking industry reflects the financial health of the country and even enables the trading activities to greater scale. The banking sector in India emerged in flying colors during the recent crisis struck the global economy and that too on the back of the stipulations laid y the Central bank. Therefore the financial services sector in India has indeed facilitated the quick, hassle free transactions and other developments by means of offering unmatched services.

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