Changing

Dynamics of
Indian Pharma
Supply Chain
2024

Pharmarack Technologies Pvt. Ltd.

03
Table Of
Contents
CHAPTER 1- INTRODUCTION 1
CHAPTER 2- EXECUTIVE SUMMARY
4
CHAPTER 3- INDIAN PHARMA MARKET-
AN OVERIVEW
7
CHAPTER 4- CHANGING LANDSCAPE:
GLOBAL AND INDIAN SCENARIO 24
CHAPTER 5- KEY INSIGHTS AND
RECOMMENDATIONS 31

03
 1

Chapter 1
Introduction
The Indian pharmaceutical market is one of the largest markets in terms of number of
patients served. It is also one of the fastest-growing major markets across the world in
pharmaceuticals. In recent years, the pharmaceutical supply chain which ensures that
every patient receives the required medicine in time, has been undergoing rapid
changes in the country. The traditional supply chain has been undergoing change in the
last decade, and the pace of change has intensified since COVID 19 pandemic.

A landscape study was conducted by Pharmarack Technologies with the support of

Indian Pharmaceutical Association (IPA). Several insights were obtained by using
Pharmarack’s proprietary data and through in-depth interviews of industry experts.

This report assesses the current and evolving status of the channel dynamics of the
Indian Pharmaceutical market, with special focus on the contributions of Branded
Generics, Trade Generics, and Generic Generics. It covers different distribution models,
impact of private labels and factors driving their growth. It explores the changing
landscape of pharmaceutical retail with the introduction of online pharmacies and chain
pharmacies in the last decade and shift in consumer behaviour. The report also covers
global trends, policy regulations and digitization in the pharmaceutical industry.

The key insights derived from this study highlight that the current focus of the Indian
pharma industry is on quality across the pharm supply chain encompassing not only
manufacturing but moving beyond to Good Distribution Practices (GDP). There is also an
increasing interest in expanding the role of pharmacies which are essential to ensure last
mile delivery.

The study has a resulted in a set of recommendations for the industry and concerned
stakeholders to focus on 1) empowering pharmacies, to enable them to provide
comprehensive patient care, 2) maintaining drug quality with insistence on complying
with regulatory frameworks, including finalization and timely implementation of the draft
GDP guidelines by the Government of India 3) prioritizing patient safety by managing
counterfeit drugs and 4) leveraging technologies to strengthen the pharma supply chain
in India.
 2

About
Pharmarack
Pharmarack is a first-of-its-kind commerce-to-insights technology company solving core
trade problems faced by the Indian Pharma industry. At Pharmarack, we build inclusive
tech-led products catering to the needs of pharma brands, chemists, distributors, and
manufacturers, providing them a level playing field to scale, trade, and grow their
businesses.

Anchored and powered by leading Indian Pharma companies to strengthen trade in India.
Pharmarack is India’s largest business-to-business commerce platform across categories.
Our technology platform is the largest business-to-business commerce platform across
the pharma supply chain and acts as a catalyst to empower general trade across the
pharma industry with a national reach of 250K chemists and druggists and 12,000+
stockists who trade in 300K+ Stock Keeping Units (SKUs) across 6,000+ brands. As a neutral
platform, we are a trusted partner to the Pharma Industry, empowering them with
technology to compete and win in an increasingly technology driven and digital world.

2,50,000+
Chemists

12,000+
Stockists

3,00,000+
SKUs

6,000+
Brands
 3

Terminology &
Key Concepts
1 Innovator Drugs/Patented Drugs
An innovator drug is the first drug created with specific active ingredients
and first to receive approval for use. It is usually the product for which
efficacy, safety and quality were assessed and fully established. In India,
patented drugs are pharmaceutical products that are protected by
exclusive rights granted by the government to the inventor, preventing
others from making, using, selling, or distributing the drug without
permission for a certain period, typically 20 years.

In India, the trade has further segregated drugs into three types:
Branded Generics, Trade Generics and Generic Generics

2 Generic Drugs
A generic drug is a medication
3 Branded Generics
Generic drugs that are marketed
created to be the same as an using the route of brand promotion
already marketed brand-name through the field force of medical
drug in dosage form, safety, representatives (who engage with the
strength, route of administration, medical community to apprise them
quality, performance on the therapeutic attributes of
characteristics, and intended use, brands/ drugs). ‘Branded Generics’ is
but does not possess a a phenomenon almost unique to
proprietary, trademark-protected India.
name.

4 Trade Generics 5 Generic Generics

Generic drugs are unbranded and
Trade Generics are branded are sold without any specific brand
medicines which are not name and are often priced lower
promoted to the doctors, but are than their branded counterparts.
provided to the channel players They contain the same active
including retail chemists, pharmaceutical ingredient (API) as
stockists, hospitals, chain stores, their brand-name counterparts but
online pharmacies at higher are marketed under their chemical
margins to drive their sales. or generic name.
 4

Chapter 2
Executive Summary
The Indian pharmaceutical industry, often called the "Pharmacy of the World," plays a
pivotal role in Global healthcare by supplying affordable medications to nearly 200
countries. In 2023, the industry was valued at approximately INR 2,42,000 crores (USD
29 Billion) and is projected to reach around INR 4,60,000 crores (USD 55 Billion) by 2030
with a Compound Annual Growth Rate (CAGR) of 9.6%. Key segments driving this
growth include Patented drugs, Branded Generics, Trade Generics (TGx) and Generic
Generics, each influenced by changing market dynamics and regulatory
advancements.

Patented drugs: Although patented drugs contribute a relatively small amount to the
Indian Pharmaceutical Market (IPM), they hold a potential for growth and innovation.
Looking ahead, the patented drugs market is projected to reach INR 15,500 crores by
2030.

Branded Generics: Comprising 87% of the Indian Pharmaceutical Market (IPM),

Branded Generics are valued at INR 2,10,000 crores in 2023. This segment is projected to
grow at a CAGR of 8.5%, reaching INR 3,71,000 crores by 2030.

Trade Generics (TGx): Valued at INR 24,000 crores, TGx accounts for 10% of the IPM and
is expected to grow at a CAGR of 16%, potentially reaching INR 68,000 crores by 2030.

Generic Generics: Holds 0.5% of the market share and is expected to hold 1.1% of the
market share by 2030. Aimed at providing medications to underserved section of the
society and fueled by government initiatives like Jan Aushadhi stores, the Generic
Generics segment is projected to reach INR 5,250 crores by 2030.

Retail and Distribution Landscape

The retail pharmacy ecosystem in India is fragmented, with standalone pharmacies
holding a 54% market share, institutional supplies holding 31% market share, organized
retail chains holding 11.5% market share, and online pharmacies holding 2.5% market
share are anticipated to grow by 2030, driven by consolidation trends and
infrastructure advantages. Jan Aushadhi stores holding less than 1% market share.
Distributor landscape is predominantly fragmented, with the emergence of organized
stockists in the industry.

Regulatory Advancement
India is advancing towards enhanced regulatory reforms to improve patient care.
Revised Schedule M is anticipated to enhance quality outcomes through Good
Manufacturing Practices (GMP). Uniform Code of Pharmaceutical Marketing
Practices (UCPMP) will promote good marketing practices. The last-mile connectivity is
crucial to ensure patients receive quality medicines. Good Distribution Practices (GDP)
significantly impact this by improving delivery systems, optimizing storage including
cold storage and transportation conditions.
 5

Executive Summary
Global Comparisons and Innovation Imperatives
Global case studies indicate an evolving trend wherein the role of pharmacies is
enhanced as an intricate part of the healthcare delivery system. There is also evidence of
use of integrated technologies for improving the efficiencies and resilience of pharma
supply chains.

Key Recommendations
The role of pharmacists is gradually evolving from a dispenser
of medicines to an expert in the field with multidisciplinary
health care systems.
Empowering
Pharmacist Education and Training: Ensure in-depth
understanding of medications, mechanisms, side effects, and Pharmacies
interactions for accurate dispensing and reliable patient through
advice. education and
Digitization and Value-Added Services: Digitization is
essential for competitiveness in offering omni-channel
digitization
presence, new revenue streams, and value-added services
such as insurance, diagnostic linkages, patient engagement,
and consumer loyalty.

There is a need to focus on maintaining the highest standards

of drug quality from manufacturing to the last mile delivery
through a multi-pronged approach which encompasses
regulatory reforms, industry-wide collaboration, technological
integration, and workforce upskilling.
Regulatory and government Initiatives like DP, MP and
UCPMP: Implement stringent quality control measures across
the pharmaceutical value chain, expand drug testing facilities,
and enhance infrastructure for comprehensive oversight. Focus on
Improved distribution systems: Quality of drugs can be quality for
maintained by optimizing cold storage facilities. Improvement
of last mile connectivity will further ensure that patients
sustainable
receive good quality of medicines. growth
Industry Collaboration: Integrate quality control measures
throughout the supply chain, including robust training
programs for salesforce personnel, ensuring adherence to
international standards.
Workforce Training and Upskilling: Invest in continuous
education for quality control professionals aligned with global
standards, enhancing competency and regulatory
compliance.
 6

Executive Summary
The problem of counterfeit drugs requires institution of
technology enabled track and trace systems and strict vigilance
and penal measures through regulatory mechanisms.
Technology-Enabled Track and Trace System: Establish real-
time monitoring systems by incorporation of Track and Trace Ensuring
technology such as QR codes, barcodes and RFID across the
supply chain. This will aid in verifying product authenticity and
Integrity-
mitigating counterfeit risks. Managing
Regular Sampling and Inspection: Conduct routine inspections counterfeit
of medicine stocks to detect counterfeit products promptly and
with strict
actions
ensure adherence to quality standards.
Capacity Building: Expand testing laboratories, enhance testing
capabilities, and invest in infrastructure to bolster drug quality
surveillance and regulatory enforcement.

The Indian Pharma supply chain must adapt to the digital

revolution and leverage existing and emerging technologies to
strengthen and streamline its multiple operations.
Advanced Technologies for Quality Control and Training:
Implement IoT-enabled sensors, RFID, SaaS, and barcoding Leveraging
systems for rigorous quality control, ensuring drug safety until they digital
reach consumers. Utilize VR, AR, and LMS for interactive training of
quality control professionals and medical representatives. Technologies
Optimized Inventory Management and Digital Marketing:
Implement Automated Inventory Systems for real-time tracking,
optimize stock levels, reduce wastage, and predict demand
accurately. Use SaaS platforms like Pharmarack for efficient
operations and employ digital marketing tools to engage
stakeholders and build brand trust.

Conclusion
By leveraging its strengths in manufacturing and aligning with global best practices,
integrating technology and upskilling initiatives, the Indian pharmaceutical
industry is poised for sustained growth and enhanced global competitiveness.

Collaborative efforts among government agencies, industry stakeholders,

healthcare providers, distributors and pharmacies are crucial in enhancing drug
quality and prioritizing patient safety by addressing drug substitution challenges,
managing counterfeit drugs, and empowering retail pharmacies.

This report underlines the need to recognize the essential role of Good Distribution
Practices (GDP) along with Good Manufacturing Practices (GMP) and to increase
focus on quality medicines, seamless transportation and optimum cold storage for
ensuring last mile delivery.
 7

Chapter 3
Indian Pharma Market-
An Overview
India is globally recognized as the "Pharmacy of the World," and
stands as the largest global supplier of generics, serving almost
200 countries worldwide. The pharma industry has seen significant
growth and trajectory over the last decade. This expansive reach
INR
2.42,000
underscores its pivotal role in the global pharmaceutical supply
chain.

The Indian Pharmaceutical Market (IPM) size was around INR

2,42,300 crores in 2023, with Generic drugs (Generic) constituting
crores
approximately 97% of the market by value and Innovator Indian Pharmaceutical
Drugs/Patented Drugs constituting approximately 3% of the
Market Size 2023
market by value.

IPM by value was driven by Branded Generics at approximately

87%, followed by Trade Generic at approximately 10%.

87%
Exhibit 1: IPM overview 2023 by Drug Category
(IPM = INR 2.42 Lakh crores) Market Share of
Branded Generics in
2023

Source: PharmaTrac, Government Press Release

 8

Chapter 3
Indian Pharma Market-
An Overview...
The Indian Pharmaceutical Market (IPM) witnessed a growth of
CAGR 9.1% in the period 2019-2023 and is expected to grow at a
CAGR of 9.6% to reach INR 4,60,000 crores by 2030 (Exhibit 2).

9.6%
Branded Generics market witnessed a growth of CAGR 8.2% in the
period 2019-2023 and is expected to grow at a CAGR of 8.5% to
reach INR 3,71,000 crores by 2030. It is expected to remain the
driver of the IPM.
Expected growth rate of
IPM by 2030
Trade Generics market witnessed a growth of CAGR 14.9% in the
period 2019-2023 and is expected to grow at a CAGR of 16% to
reach INR 68,000 crores by 2030.

Exhibit 2: Drug category wise IPM overview (in INR thousand crores)

(Market size,
Market share)

Source: PharmaTrac, Government Press Release

 9

Indian Pharma Market

An Overview...
54%
Standalone pharmacies held 54% of the market in 2023 and
expected to constitute 42.0% by 2030, attributed to growth in other
channels. Institutional supplies, the second-largest segment with a
31.3% market share in 2023, is projected to constitute 34.2% by 2030. Standalone
Retail chain drugstores, which held a 11.6% market share in 2023, are pharmacies
expected to expand their share to 17.4% by 2030. (Exhibit 3). continue to
dominate the retail
segment
Exhibit 3: Retail Channel Wise IPM overview (in INR thousand crores)

(Market size,
Source: Secondary Research Market share)

*Include hospital supplies for both private and public sector.

The extensive retail ecosystem is supported by a fragmented stockist channel,

primarily categorized into over 60,000 independent distributors, 20+ organized
stockists, and 1,000+ institutional suppliers. The landscape is evolving with the growth
of organized retail stores and the consolidation of stockists in metro and Tier 1 cities.

Standalone pharmacies will remain vital in the healthcare ecosystem by offering

personalized services and cultivating strong community relationships. As key players
in local markets, they can swiftly adapt to chaning consumer needs and preferences.
 10

Branded Generics
Market Insights
Branded Generics market has grown at 8.2% CAGR during 2019-
2023, and is expected to grow at a CAGR of 8.5% by 2030.

The Branded Generics, currently valued at INR 210,000

53%
crores and accounting for 87% of the Indian
Pharmaceutical Market (IPM), form a cornerstone of India's
pharmaceutical industry. This segment is projected to grow
at a Compound Annual Growth Rate (CAGR) of 8.5%, INR Increasing
Dominance of
371,000 crores by 2030 (Exhibit 4). The key therapy areas Chronic Drugs
driving this segment are Cardiac, Anti-Infectives,
Gastrointestinal, Anti-Diabetic, and Vitamins, Minerals, and Attributed to gain
population, lifestyle
Nutrients (VMN)—collectively comprise more than 50% of changes, urbanization
the market share. (For a more comprehensive analysis and other factors
refer to Appendix 1).

Exhibit 4: Market size of Branded Generics (in INR thousand crores)

Source: PharmaTrac

There are two distribution models used by Pharma companies for Branded Generics-
Carrying and Forwarding Agencies(CFA) model and Super Stockist model (For a more
comprehensive analysis refer to Appendix 4).

The Eastern region of India has been showing the fastest growth across the Branded
Generics segment (For a more comprehensive analysis refer to Appendix 2&3).
 11

Trade Generics
Market Insights
With entry of major Indian companies into the Trade Generics
(TGx) and growing demand from Channel Partners, the segment is
projected to grow at a CAGR of 16% by 2030.

The Trade Generics (TGx) segment, valued at INR 24,000 crores, has
grown by 14.9% in the period 2019-2023. Growing retail competition
and margin pressures have led channel partners to actively promote
Trade Generics. The segment is dominated by acute therapy, which
held 80% market share in 2023 of the TGx market. The top four therapy
areas, primarily from the acute segment, underline its importance,
with Anti-Infectives and Pain/Analgesics contributing to sales (Exhibit
5).

Post-COVID-19, several Indian pharma companies have introduced

16%
their non-core therapy areas into the TGx market. This has increased
the confidence among pharmacies in substituting branded products
with TGx alternatives. Additionally, there has been a growing trend of
Micro, Small and Medium Enterprises (MSMEs) entering the market, Expected growth rate
leading to even more fragmentation. (For a more comprehensive of Tx by 2030
analysis refer to Appendix 5)

Industry insights foretell an emerging trend, whereby companies, are

boosting their market share by actively promoting their Trade
Generics to stockists, pharmacies and dispensing doctors through
their medical representative networks.

The TGx market is characterized by contributions from leading states

such as Uttar Pradesh, Maharashtra, Andhra Pradesh, Telangana, and
Tamil Nadu. (For a more comprehensive analysis refer to Appendix 6
and 7)
 12

Trade Generics
Market Insights...
Exhibit 5: Market size of Trade Generics (in INR thousand crores)

Source: PharmaTrac, Secondary Research

Trade Generics has played a role in improving accessibility in Tier 2 and Tier 3 towns across
the country. Pharmaceutical companies deploy one or a combination of distribution
models, including: 1. C&F model, 2. Direct to retail model, 3. Super Stockist model, and 4.
Third Party Marketing Agent model. (For a more comprehensive analysis refer to
Appendix 8 and 9)
 13

Generic Generics
Market Insights
The segment of Generic Generics stands at INR 1,200 crores and is
expected to reach around INR 5,250 crores by 2030.

Jan Aushadhi stores, a Government of India initiative, aim to promote Generic

Generics medicines at low costs, thereby increasing accessibility, particularly for
the underserved section of the society. The segment has seen growth due to the
expansion of Jan Aushadhi Kendras across the country.

The Generic Generics hold 0.5% of the market in 2023 and is expected to hold a
market share of 1.1% by 2030.

Stakeholder interviews and Government-published reports (2) indicate that

patients with chronic diseases, requiring lifelong medication, are turning to Jan
Aushadhi stores in view of affordability. Antidiabetic and Cardiovascular drugs,
which account for around 40% of the total units sold, are the top-selling categories
at these stores (2).

The government’s plan to double the number of Jan Aushadhi Kendras to 25,000
by March 2026 is aimed to enhance accessibility (1). Along with focusing on the
expansion in the number of stores, efforts must be made towards making the
stores financially sustainable for medication options in Tier 3 and 4 cities.

Uttar Pradesh, Karnataka, Kerala, Tamil Nadu, and Maharashtra are the top five
states with the largest number of Jan Aushadhi Kendras, with Southern states
having a comparatively higher number of these stores (For a more comprehensive
analysis refer to Appendix 11). Over 50% of Jan Aushadhi stores are situated in Tier 1
cities, leaving Tier 2 and Tier 3 districts and in places where there is a need for more
outlets with limited access to medications (Exhibit 7). To better serve these
underserved sections, particularly the aspirational districts, there is a need to
increase the number of Jan Aushadhi stores around hospitals, especially in Tier 3
and Tier 4 cities. This expansion will further enhance accessibility to affordable
medications across India.

Jan Aushadhi’s supply chain consists of a centralized warehouse in Gurugram and

four regional warehouses. The supplies at the States and Union Territories (UTs)
are managed by 36+ stockists catering to 11,000+ stores. (For a more
comprehensive analysis refer to Appendix 12)
 14

Generic Generics
Market Insights.....
Exhibit 6: Market size of Generic Generics (in INR crores)

Source: Government Press Release

Exhibit 7: Georaphical Presence of the Jan Aushadhi stores at district level

 15

Generic Generics
Market Insights...
To promote the use of the Generic Generics, especially among underserved section
of the society who cannot afford branded products, it is crucial to insist on stringent
quality control measures.

There is a concern regarding the financial viability of Jan Aushadhi Kendras. Exhibit 8
provides a unit economics analysis of these stores based on the sale of Generic
medicines. Assumptions include operating margin, rent, employee costs, and
operational expenses. Currently, these stores are generally operating at a loss and
are selling Trade Generics to achieve financial viability. Our analysis highlights that
there is a need to work on improving the financial viability of the Jan Aushadhi
Kendras.

Exhibit 8: Financial Vaiability of Jan Aushadhi Kendras

Source: Government Source, Secondary Research

A significant portion of the Indian Pharmaceutical Market (IPM) is driven by Branded

Generics. The market share of Patented drugs, Trade Generics and Generic Generics
drugs are projected to grow at an impressive rate of 12%, 16% and 23% respectively
by 2030.

The various segments of the drug market cater to different strata of the society.
Their relative market shares are evolving due to an interplay of various factors. With
this changing landscape, there is a need to reiterate the importance of maintaining
good quality throughout the value chain.

In the near future, the quality of distribution mechanisms and storage facilities
needs to be prioritized, for providing good quality medicines to the society and
ensuring patient safety.
 16

Exploring
Pharma Retail Dynamics

This section will describe the current and evolving state of pharma distribution
channels, emergence of organized players and their impact on the Indian
pharmaceutical market. The Indian pharmaceutical market is undergoing significant
changes, particularly in the distribution channels of pharmacies, with new players
entering the scene and contributing to the evolving dynamics of drug availability.
 17

Exploring
Pharma Retail Dynamics

Standalone Pharmacies hold more than 54% of the

market share and continue to play a vital role in the
54%
supply chain. In order to maintain the market lead,
there is a need to build on their capabilities with Standalone pharmacies
provision of value -added services. dominate the market

Over the past decade, retail chain drugstores have

emerged as a key distribution channel, currently 40+
holding a 11.6% market share and primarily
concentrated in Metro and Tier 1 towns. There are now Pharmacy Chains set
over 40 retail chain drugstores across the country.
for growth

Institutional supply is forecasted to grow by 11.2% by

2030, driven by an increase in hospitals brining
50,000+
pharmacies in-house and a shift in consumer
Institutional Supply growth
behaviour from consulting private doctors to visiting driven by In-House
corporate hospitals in metro and Tier 1 cities. India pharmacies and consumer
has more than 50,000 hospitals across the country. Behaviour Shift
 18

Exploring
Pharma Retail Dynamics...
There is a noticeable change in consumer behavior with a shift from reliance on
family physicians to corporate hospitals that have in-house pharmacies, further
impacting the traditional pharmacy model. To maintain their relevance,
standalone pharmacies are adapting by offering competitive discounts and
improving service reliability.

Omni Channel presence has helped the online pharmacies in initial growth by
providing personalized service and adoption of technology underscore the sector's
adaptability and growth potential.

Exhibit 9: Market Size of Standalone Pharmacies (in INR crore)

Source: Secondary Research

 19

Exploring
Pharma Retail Dynamics...
Organized retail chain drugstores including Apollo, MedPlus,
Wellness Forever and others generate a revenue of INR 28,000
crores. Their primary focus is on Metro and Tier 1 towns. The
sector has registered growth of 18% over the past four years and
18%
is projected to grow at a CAGR of 16.2% until 2030 (Exhibit 10).
Growth rate over past
four years
These chains have larger store sizes and offer 30,000+ SKUs,
resulting in higher fill rates and leveraging technology to ensure
the availability of the correct drugs at the right time making
them competitive players in the market (4) (For a more
comprehensive analysis refer to Appendix 15). 15-18%
Retail chains have launched their private label in OTC, Wellness, Contribution of Private
Neutraceutical category and are planning to introduce their Label in store revenue
private labels into other segments which is projected to
contribute to 25-30% of their revenue by 2030.

Exhibit 10: Market Size of Organized retail drugstores (in INR crore)

72,832

28,000

10,665

Source: Secondary Research

 20

Exploring
Pharma Retail Dynamics...
The online pharmacy is facing a slowdown in growth post- 8-14%
pandemic due to changing consumer preferences towards
Earlier the discounts
offline pharmacies, competition from standalone pharmacies, offered by Online
decreased investor funding, and stricter regulatory measures. Pharmacies ranged
There are currently over 30 national and regional online around 25-40% which
pharmacies/e-pharmacies. has now reduced.

Most online players focus on metros and Tier 1 cities, except for
Netmeds, which has targeted underserved Tier 3 and Tier 4
cities, accounting for 65% of its sales.

The online pharmacy market is primarily driven by the chronic

segment, accounting for over 60% of sales (For a
comprehensive analysis please refer to Appendix 13) with
consumers planning their purchases for chronic illnesses. This Rs 1,200-
results in a higher Average Order Value (AOV). 1,300
Higher Average Order
They offer a wider range of SKUs (70,000+) improving product Value (AOV)
availability and ensuring nationwide service (For a
comprehensive analysis please refer to Appendix 14).

Online pharmacies are experimenting with omni-channel

strategies by establishing brick-and-mortar stores in metro
and Tier 1 cities.

Exhibit 11: Market Size of Online pharmacies (in INR crore)

,
,

Source: Secondary Research

 21

Mapping the landscape

Pharmaceutical
Distribution Channels

The distribution channel in the Indian pharmaceutical market is undergoing significant

changes, driven by the emergence of organized players and market consolidation. These
changes are reshaping the market dynamics, improving efficiency, and enhancing
consumer experience. However, the shift towards a more consolidated market structure
also presents challenges for smaller market players and the competitive landscape. As the
Indian pharmaceutical market continues to evolve, it will be crucial for all stakeholders to
adapt to these changes and capitalize on the opportunities they present.
Building on this, the current section delves into the distribution channel, showcasing how it
too is experiencing a dynamic evolution driven by market consolidation and the emergence
of organized players. This section aims to provide a comprehensive overview of these
changes and their implications for the broader Indian pharmaceutical market.
 22

Mapping the landscape

Pharmaceutical
Distribution Channels...
Market consolidation is reshaping the pharma distribution

10%
market landscape, with organized stockists currently
commanding a 10% market share and projected to grow to
25-30% by 2030, ultimately reaching a market share of 30%.
Introduction of Goods and Services Taxes (GST), organized Market share
retail chain establishing their own distribution networks and commanded by
reluctance of the younger generation to enter the organized stockists in
distribution business is driving consolidation across the
2023
segment.

The nationwide presence of organized stockists enables

them to serve retail chain drugstores and corporate
hospitals effectively. They offer a higher number of SKUs
(50,000-60,000) compared to local stockists (10,000-15,000
SKUs), thereby improving fill rates. Organized stockists
generally cater to 300-400 companies, whereas local
50k-60k +
stockists stock products from 30-40 companies. They are
working on improving infrastructure for cold storage supply SKUs are catered by an
organized stockists
chains, better access to working capital, and greater
transparency regarding schemes and discounts offered by
pharmaceutical companies.

Exhibit 12: Market Share of Organized Stockists

Source: Secondary Research

 23

Mapping the landscape

Pharmaceutical
Distribution Channels...
Primary interviews highlight the increasing role of organized
players as marketing agents for pushing Trade Generics and
private label products. Some organized players are
promoting their private label products through dispensing
doctors and clinics.
2-3%
The rising trend of organized stockists receiving volume-
based discounts from pharmaceutical companies, Volume based discounts
particularly Medium and Small Enterprises (MSMEs), further received by Organized
Stockists
enhances their margins.

Key Players and Market Presence Entero, Keimed, Ascent,

Consumerfed, Medplus and Reliance (Exhibit 13). These
companies have adopted an inorganic growth strategy by
acquiring existing stockists.

Exhibit 13: Distribution Partners of Organized Stockists

Source: Entero DRHP report, Secondary Research, Pharmatrac

Despite changes in the retail sector, standalone pharmacies will continue to

hold the largest market share of 42% by 2030, maintaining their critical role in
the Indian Pharma Market and are expected to remain vital in the healthcare
ecosystem by offering personalized services and cultivating strong
community relationships.

Upskilling retail pharmacies with digitization will help them swiftly adapt to
changing consumer needs and preferences.
 24
Chapter 4

Changing Landscape
Global Scenarios
In understanding the evolving landscape of the Indian
pharmaceutical market, it is crucial to look at global 5% CAGR
trends as they often serve as precursors to changes in
India. The global pharmaceutical market, estimated at Global Pharma Market is
INR 123 lakh crores in 2023 with a CAGR of 5% since 2019, growing at this rate since 2019.
provides a stable backdrop against which Indian
strategies can be developed (Exhibit 14).

One significant trend is the increasing emphasis on 64%

innovator drugs. Globally, pharmaceutical companies
prioritize the development of novel drugs over Innovator drugs gaining
generics, recognizing that innovation drives growth Emphasis globally
and sustains competitive advantage.

Exhibit 14: Market Size of Global Pharma Market (in INR crores)

Source: Secondary Research

 25

Changing Landscape
Global Scenarios...
In addition to focusing on innovator drugs, there is a
notable global trend of transitioning from simple
generics to Complex generics, such as Biosimilars
and Biologics. These higher-complexity drugs offer
significant therapeutic benefits and command higher

Biosimilars &
market value. Currently, innovation accounts for two-
thirds of the global pharmaceutical market, a sector
where India's presence is minimal. To elevate its
position, India must invest in biosimilars, biologics, and
Biologics
complex generics along with leveraging its strong
Increased focus from simple
generics foundation. generics to complex generics

Leading Indian companies are at the forefront of this

innovation drive to climb up the value chain and
capture a more significant share of the global market.

With this transition of focus from simple generics to

complex generics and biosimilars, focus on good
quality across the supply chain, and advanced
distribution channels optimum storage facilities
become fundamental.
 26

Pharmacies
Evolving Role & increasing
digitization
Globally, pharmacies have played a key role in providing comprehensive healthcare services.
Pharmacies have also been involved in administering vaccination and vaccination advocacy
across the globe including the US, United Kingdom, and others. In South Asia also, the
neighborhood pharmacies are emerging as the most ubiquitous channels from amongst the
multiplicity of provider for offering primary care advice along with dispensation of
medicines(9).

Canada has expanded pharmacists' roles to make them key Canada

players in patient education and health promotion. Pharmacists
provide medication counseling, offering information on dosages, Pharmacies have
potential side effects, and drug interactions. They participate in contributed to better
health promotion campaigns and offer wellness services (5). patient care

United
In the United States of America (USA), the evolving landscape of
pharmacy services has necessitated upskilling through technology
training. Continuing education courses and certifications are
widely promoted to help pharmacists and technicians advance
States
their skills. Pharmacy workers are encouraged to familiarize
themselves with new tools such as e-verification systems, tele E-Verification and
pharmacy, and electronic health records (EHR) (6). Tele pharmacy

Pharmacies in France serve as primary access point for health

care services. Patients can consult pharmacists without an France
appointment for various health concerns, such as minor ailments
and medication management. This accessibility is vital, especially Medication
for individuals seeking immediate advice or care (7). Management

As illustrated above, the global pharmaceutical industry is undergoing a digital

transformation and the retail pharmacies continue playing an important role to
provide last mile delivery.

Technology facilitates seamless communication with patients, enabling improved

healthcare services such as remote consultations and personalized medication
management. This integration not only optimizes operational efficiency but also
elevates the overall quality of patient care. Medicines are increasingly tagged for
better tracking and security.

These digital innovations serve as a blueprint for the Indian market, which must
adopt and scale up the use of these technological advancements to streamline
operations and enhance efficiency.
 27

Changing Regulatory Landscape

Indian Scenarios
This chapter explores the evolving landscape of the Indian
pharmaceutical market, highlighting the recent developments Revised
in Good Manufacturing Practices (GMP), Good Distribution
Practices (GDP), and the Uniform Code of Pharmaceutical Schedule M
Marketing Practices (UCPMP). It shows how these changes
are reshaping the industry's supply chain dynamics and their Regulatory changes to
implications on drug quality, patient safety, and the overall
ensure drug quality is
maintained by Pharma
effectiveness of pharmaceutical distribution and retail. manufacturers

Schedule M (8) is a part of the Drugs and Cosmetics Act, 1940,

which emphasizes stringent quality control measures in drug
manufacturing processes, ensuring that products meet high
standards of safety, efficacy, and consistency. The revised
Schedule M holds manufacturers directly accountable for the 20%
quality of their products, ensuring higher standards of drug
safety and efficacy. The government has outlined a clear GMP compliant
compliance roadmap, setting a six-month timeline for large
manufacturing units in
India
companies (over INR 250 crores) and one year for MSMEs
(under INR 250 crores) starting from January 1, 2025.

By aligning with international quality benchmarks, revised

Schedule M aims to enhance the global competitiveness of
the Indian pharmaceutical industry.
 28

Changing Landscape
Indian Scenarios...
The Uniform Code for Pharmaceutical Marketing Practices
(UCPMP) 2024 introduces new regulations that will enhance the
ethical standards and transparency of pharmaceutical
marketing. The introduction of ethics committees within
associations and the UCPMP portal will streamline complaint
UCPMP
2024
and compliance monitoring. This shift towards ethical marketing
practices aims to change long-established promotional
practices and mitigate the influence of marketing on healthcare
professionals' prescribing behavior. The industry needs to Compliance with
budget the costs associated with training of staff, developing marketing standards
compliant marketing materials, and stringent systems for
establishing monitoring mechanism and implementation of
good marketing practices, UCPMP norms.

Overall, these regulatory frameworks and practices are set to

significantly improve the quality and integrity of drugs in India,
fostering a more trustworthy pharmaceutical market.
 29

Changing Landscape
Indian Scenarios...
Harmonizing with international standards such as World Health
Organization (WHO), International Council for Harmonization of
Technical Requirements of Pharmaceuticals for Human Use (ICH),
and Pharmaceutical Inspection Co-operation Scheme (PIC/S), the
revised Schedule M will help Indian pharmaceutical products
WHO, ICH,
PIC/S
compete in export and regulated markets. The Union Ministry of
Chemicals and Fertilizers emphasizes self-regulation in the MSME
sector to ensure adherence to quality standards, maintaining
the global reputation of Indian pharmaceutical products. These Compliance with global
standards
risk-based audits are a forward-looking measure, showcasing
India's commitment to quality improvements on a global stage.

Good Distribution Practices (GDP) play a critical role in

enhancing pharmaceutical quality and safety by reducing the
entry of substandard and counterfeit medicines into the supply
chain. The current CDSCO (Central Drugs Standard Control
Organization) guidelines are in draft form, highlighting an urgent
need for the establishment and enforcement of stringent
regulatory standards. GDP
Integration of advanced technologies such as Automated Regulatory changes to
Storage and Retrieval Systems (ASRS), serialization, and Track- ensure high quality of
and-Trace applications can improve visibility and security across drug distribution
the pharma supply chain, thereby ensuring the quality of drugs in
India. This is especially crucial for medicines requiring cold
storage and proper transportation to maintain their efficacy and
safety. Additionally, comprehensive training for personnel involved
in the supply chain is essential to effectively implement GDP.
Compliance with GDP standards can serve as a hallmark for
assurance of good quality drugs.
 30

Indian & Global Pharma Market

Changing Landscape...
India's regulatory frameworks are evolving and play a crucial role in ensuring the
quality of drugs from origin to consumption. While initiatives like GMP, Revised
Schedule M, UCPMP, and GDP have been introduced by the government, their
implementation needs further reinforcement. Strengthening the uptake of these
regulations, investing in additional drug testing laboratories and ensuring
compliance with GDP standards will result in availability of quality assured drugs at
all levels of Indian Pharma Supply chain.

Enhanced collaboration between state and central authorities will lead to more
effective implementation of regulations, reinforcing India’s reputation as a global
pharmaceutical leader.

As India improves its monitoring and enforcement capabilities, the brand equity of
Indian drugs will be bolstered, increasing the confidence of international buyers,
governments, and large healthcare organizations in sourcing medicines from India.
Furthermore, retail pharmacies will play a pivotal role in ensuring the distribution of
quality drugs and delivering them to the patients effectively.
 31

Chapter 5
Key Insights &
Recommendations
The preceding chapters have provided detailed insights on the trends of the Indian
Pharma Market across different categories of drugs: Patented drugs, Branded
Generics, Trade Generics and Generic Generics. We have also elaborated upon the
pharma retail dynamics to highlight the changing market shares catered by the
standalone pharmacies, retail chain drugstores, institutional supplies and online
pharmacies.

Following our few takeaways from the previous chapters:

While Branded Generics remain dominant, the market is undergoing changes.

Different drug segments cater to different sets of consumers and equal impetus is
needed to ensure good quality drugs across the supply chain with the help of good
distribution practices.

The Government of India’s initiative to increase the number of Jan Aushadhi Kendras
under the Pradhan Mantri Bharatiya Jan Aroya Pariyojana (PMBJP), from 11,000 to
25,000 by 2026 is anticipated to have an impact on the distribution dynamics. More
Jan Aushadhi Kendras may be opened around hospitals, especially in Tier 3 and Tier
4 cities. Integrating the purchases at these Kendras with a ration card like
mechanism can further ensure that underserved section of the society have reliable
access to these cost-effective options.

The evolving pharma landscape presents an opportunity for companies to innovate

and diversify. This trend encourages pharmaceutical companies to focus on cost-
effective production and innovative strategies to maintain profitability. The evolving
landscape allows companies to explore new business models and invest in areas
with high growth potential.
 32

Key Insights.....

Increased bargaining power of organized retail: The pharma distribution channel is

also witnessing a change with the consolidation of market by organized stockists,
having their market share at 10% market share in 2023 which is projected to increase
to 30% by 2030. As market consolidation occurs in the retail and distribution sectors,
an increasing trend of volume-based discounts from pharmaceutical companies is
emerging, typically ranging from 2-5%, with medium and small-sized (MSMEs)
pharma companies offering even larger discounts. Once these organized players
capture around 30% of the market, they are expected to negotiate better prices and
terms with large pharma companies as well.

In line with the global trends, the Indian pharmacies are poised to play an expanded
role. Some pharmacies have already demonstrated their ability to contribute to
patient care by aligning with national health programs like those for tuberculosis
and family planning. They are increasingly using Technoloy platforms such as
Pharmarack for real time stock visibility and ordering. Many pharma manufacturers
and health programs are connecting with pharmacies to conduct pharmacy training
programs and leverage their position as last mile care providers for serving patient
communities.

It is clear that the regulatory framework has a tremendous role to play in ensuring the
quality of drugs from the point of origin to the point of consumption. With the
Government of India introducing initiatives and policies like the MP, Revised Schedule
M, UCPMP and GDP, it has been observed that their uptake and implementation needs
further strengthening. Enhanced collaboration between state and central authorities
will lead to more effective implementation of regulations and interventions, bolstering
the country’s image as a global pharmaceutical leader. As India improves its
monitoring and enforcement capabilities, the brand equity of Indian drugs will be
strengthened, increasing the confidence of international buyers, governments, and
large healthcare organizations in purchasing medicines from India.
 33

Key Insights.....

The counterfeit issue is a challenge for the Indian pharmaceutical industry. This problem
is exacerbated by a lack of regulatory workforce, infrastructure, and defined processes
for effective monitoring and intervention. The country’s limited testing capabilities, with
only eight central drug testing labs and twenty-nine regional labs, hinder comprehensive
oversight. Furthermore, there is a lack of effective surveillance mechanisms and little
coordination between states, leading to gaps in enforcement. Counterfeit drugs are
more prevalent in Tier 2 and Tier 3 cities, with higher incidences in local markets in states
such as Bihar, West Bengal, Uttar Pradesh, and Gujarat. According to CDSCO data, out of
7,500 samples tested over the past six months, 284 were found to be "not of standard
quality," with 91% coming from Category C companies. Category C companies generally
refer to smaller enterprises with lower market capitalization, net worth, or business
volume compared to larger and mid-sized companies, often classified based on specific
regulatory or industry criteria. By taking steps for implementation of GMP, GDP and
investing in more drug testing laboratories, improving coordination between states, and
developing robust surveillance mechanisms, India can significantly reduce the
prevalence of counterfeit drugs.

According to the Drugs and Cosmetics Act, 1940, drug substitution is currently not
allowed on the prescribed medicine. There is a need to reiterate on supremacy of
doctors’ prescription and insistence on complying with the same.

The entire Indian pharma supply chain in India is already in the nascent phase of
technology integration. The use of cutting-edge technology for adaption at the level of
manufacturing, distribution, retailing and quality assurance is inconsistent at present. An
industry wise impetus on use of technology and technology platforms will definitely add
to efficiencies in the supply chain.
 34
37

Recommendations
for strengthening the Indian Pharma Supply chain
By learning from the global pharmaceutical market and focusing on its inherent
strengths, the Indian pharmaceutical industry can navigate its challenges and
capitalize on emering opportunities. Emphasizing innovation in drug development,
particularly in biosimilars and biologics, and enhancing digital transformation across
the supply chain will position India favorably in the global market.

The following section provides four key recommendations/ strategies designed to

further strengthen the position of the Indian Pharma market, ensuring sustainable
growth, improved quality, and increased competitiveness.

1Empowering pharmacies: Extending

services for comprehensive care 2
Focus on Quality for prioritizing patient
safety and ensuring drug quality

3
Ensuring integrity - Managing
counterfeit with strict actions 4Leveraing Digital Technoloy for building
supply chain resilience
 35

Recommendation 1
Empowering pharmacies:
extending services for
comprehensive care
The Covid-19 pandemic brought about a paradigm shift in the retail
pharmacy sector. The pandemic triggered fast-tracking digital
transformation and nurtured adaptability and learning agility. The
role of pharmacists is gradually evolving from a dispenser of
medicines to an expert in the field with multidisciplinary health
care systems. They can get trained and shift in clinical management,
laboratory diagnostics and more.

Empowering pharmacies would entail:

1) a focus on pharmacy and training
2) improving their readiness for market competitiveness and patient
care
3) expanding digitization and value-added services

Pharmacists can be upskilled for following the correct procedures

for interpreting, filling, and verifying prescriptions, reducing error
risks and ensuring patient safety.

Pharmacists can be empowered to help them convey critical

information clearly to patients, improving adherence to treatment
plans and overall health outcomes. Continuing Education is the need
Pharmacist
Education &
of the hour in the pharma industry with continuous advancement,
new medications, and chaning regulations.
Training
It would be good to redesign pharmacology curriculum to keep up
with the evolving landscape and make the students future ready.
Industry needs to support curriculum updates that include the latest
industry trends, technology, and regulatory changes.

The pharmacists should be encouraged to leverage e-learning

platforms and online courses that offer flexible learning options for
pharmacists, focusing on new drug information, patient counseling,
and regulatory compliance.
 36

Recommendation 1
Empowering pharmacies:
extending services for
comprehensive care...

Educational initiatives can help pharma companies to be

positioned as leaders committed to quality healthcare,
enhancing brand loyalty and strengthening the company's
reputation among healthcare professionals and Market
consumers. Educated pharmacists with in-depth product
competitiveness
& patient care
knowledge are more likely to recommend and effectively
counsel patients on the company’s products. While there is
an initial investment in educational initiatives, the long-
term financial gains from enhanced pharmacist
performance, improved patient outcomes, and increased
market share can be substantial.

Digital marketplaces enable pharmacies to efficiently

manage their supply chain, track orders, and improve fill
rates. Value-added Services including insurance and
linkage with diagnostic services help pharmacies enhance Digitization &
patient care, improve consumer loyalty, and boost
revenue.
Value Added
Services
Digitization for Competitiveness is crucial for independent
pharmacies to stay competitive and meet the evolving
demands of consumers. Omni-channel presence
enhances patient experience by providing convenience
and accessibility through tools like online prescription
refills.
 37

Recommendation 2
Focus on quality for
prioritizing patient safety and
strengthening drug quality
To ensure quality of drugs for all the consumers of India and to maintain global
competitiveness of the Indian pharmaceutical industry, a comprehensive and forward-
looking strategy must be adopted. This approach encompasses regulatory reforms,
industry-wide collaboration, technological integration, and workforce upskilling, all
aimed at maintaining the highest standards of drug quality from manufacturing to the
last mile delivery.

The government must play a pivotal role in enforcing

stringent quality control measures across the
pharmaceutical value chain, from production to patient Regulatory and
delivery. Initiatives like Good Manufacturing Practices Government
(GMP) and Good Distribution Practices (GDP) are critical
and should be implemented promptly to ensure the safety,
Initiatives
efficacy, and high quality of drugs. This would also include
measure such as strengthening drug quality surveillance
through enhanced coordination between central and
regional testing laboratories is essential. Expanding the
number of drugs testing labs and improving
infrastructure will ensure more rigorous and widespread
testing capabilities.

Pharmaceutical companies, healthcare providers, and

pharmacies should collaborate to create a cohesive
ecosystem focused on long-term quality assurance. This
includes integrating quality control measures throughout
the supply chain to minimize contamination and maintain
Industry
drug integrity. This would also include measures such as Collaboration
strengthening cold storage facilities and last mile delivery
services. Pharmaceutical companies must incorporate
quality-focused education into their salesforce training,
ensuring that medical representatives are well-versed in
manufacturing processes, regulatory standards, and quality
assurance measures. This will help build trust and establish
companies as leaders in drug safety and efficacy.
 38

Recommendation 2
Focus on quality for
building sustainable model
for the future...
Investing in the continuous training and upskilling of
quality control professionals is crucial. Aligning with
international standards set by organizations like the
International Council for Harmonization of Technical Workforce
Requirements for Pharmaceuticals for Human Use (ICH)
Training and
Upskilling
and the Pharmaceutical Inspection Co-operation
Scheme (PIC/S) will elevate the industry's global standing.
Pharmacies and trade channel members should be
educated on digitization and the importance of quality
control, equipping them with the necessary tools and
knowledge to maintain high standards.

To ensure the accessibility of drugs, the Government of

India may expand the network of the Jan Aushadhi
Kendras in remote and underserved areas by Enhancing
Implementing a ration card-like mechanism. Rigorous Accessibility and
quality control of Generic Generics drugs available at Jan Quality of
Aushadhi Kendras is needed, will help the underserved
section of society by improving the drug accessibility.
medicines
 39

Recommendation 3
Ensuring integrity -
managing counterfeit with
strict actions
The prevalence of counterfeit drugs in India, particularly in Tier 2 and Tier 3 cities, poses a
significant risk to patient safety and undermines the country’s reputation as a reliable
supplier of high-quality medicines. Addressing this issue requires a comprehensive,
collaborative approach involving the government, manufacturers, and all stakeholders in
the pharmaceutical supply chain. By implementing stringent policies and managing strict
vigilance, India can significantly mitigate the impact of counterfeit drugs and ensure the
safety and efficacy of its pharmaceutical products.

Using technology enabled Track and Trace system: Establish

parent-child relationships for medicines throughout the supply
chain. This system should interconnect company Carrying &
Forwarding (C&F) Agents, stockists, wholesalers, and retailers,
enabling real-time monitoring and verification of product
authenticity.

Regular sampling and Inspection of medicine stocks held by

Managing
stockists, wholesalers, and retailers must be conducted by the
Drug Control Department under the purview of the Central Drugs
Standard Control Organization (CDSCO) and respective State
counterfeit
drugs
Drug Control Authorities. This proactive approach helps in
detection counterfeit products early and ensures adherence to
quality standards across the distribution network.

Information Sharing and Collaboration: It is imperative to

maintain Centralized Offender List and Blacklisting offenders
involved in counterfeit medicine activities. Such actions must be
regularly updated and circulated to all licensing authorities and
State FDAs. Habitual offenders and their facilities must be
blacklisted from obtaining licenses under the Drugs and
Cosmetics Act to prevent further illicit activities.
 40

Recommendation 3
Ensuring integrity -
managing counterfeit with
strict actions...
Capacity building of testing laboratories: Drug testing labs play
a major role by ensuring the safety and efficacy of medicines
through rigorous analysis, thereby preventing the distribution of
substandard or counterfeit drugs and maintaining public health
standards. Expanding testing facilities to accommodate a higher
volume of samples for analysis is imperative.

Immediate and stringent actions: Legislative reforms must

include fast-track court hearings without bail for counterfeit
offenses. Mandatory enforcement of cash/sale bills for all drug Managing
transactions and accountability throughout the supply chain. counterfeit
State FDAs must mandate retailers to purchase exclusively from
authorized wholesalers and stockists to ensure compliance and drugs
traceability.

Awareness Programs: Training sessions and workshops can

equip stockists, healthcare professionals, pharmacists, and
public with the knowledge and skills to identify counterfeit
products effectively.
 41

Recommendation 4
Leveraging digital
technologies for building
supply chain resilience
The Indian Pharma supply chain must adapt to the digital revolution and leverage
existing and emerging technologies to strengthen and streamline its multiple
operations.

Implementing Internet of Things (IoT)-enabled sensors,

Radio Frequency Identification (RFID), Software as a service
(SaaS) and barcoding systems can ensure rigorous quality
control throughout the distribution network. These
technologies can track and monitor drug conditions,
ensuring they remain safe and effective until they reach the
end consumer.

Utilizing gamification which can provide interactive and Technological

immersive training experiences for quality control Integration
professionals and medical representatives, improving their
skills and knowledge.

Digital marketing tools offered by social media platforms

such Facebook, WhatsApp & Instagram may be employed to
effectively disseminate awareness campaigns across various
channels, engaging stakeholders and fostering trust in the
brand.

Implementing automated inventory systems, can help

optimize stock levels, reduce wastage, and predict demand
accurately. Additionally, IoT-enabled devices can provide
real-time tracking of inventory, ensuring timely restocking
and minimizing the risk of stock outs. Linkages with
technology platforms like the SaaS solutions offered by
Pharmarack will lead to more efficient operations and
improved customer satisfaction.
 42

Conclusion
This report endeavors to document the current market scenarios, changing
landscape and challenges faced by the Indian Pharma market. It also suggests
recommendations to help pave the way forward towards a more resilient and robust
pharmaceutical ecosystem.

The vision of India’s supremacy in the global pharma market can only be achieved
through a concerted effort, with a collaborative approach involving the government,
pharma companies and supply chain actors, including the pharmacies, as well as
the healthcare providers.

The collective commitment to quality, innovation, best practices and patient safety
will drive long-term growth, enhance global competitiveness, and ultimately
contribute to better healthcare outcomes for all.

It is time to envision an enhance role of pharmacies as not just a seller of medicines

but also as a focal point for health promotion, medication counseling, offering
information on dosages, potential side effects, and drug interactions.

To ensure the sustainability and global competitiveness of the Indian

pharmaceutical industry, it is essential to implement stringent quality control
measures across the supply chain, including Good Manufacturing Practices (GMP),
Good Distribution Practices (GDP), and the Uniform Code for Pharmaceutical
Marketing Practices (UCPMP). Rigorous quality control will enhance drug safety and
efficacy, address challenges related to counterfeit and sub-standard drugs.

As the Government of India has introduced the Jan Aushadhi Kendras under the
Pradhan Mantri Bharatiya Jan Arogya Pariyojana (PMBJP), integrating it with ration
card like mechanism can further ensure that underserved communities have reliable
access to these cost-effective options.

Leveraging advanced technology and digital platforms is essential for enhancing

operational efficiency and transparency in the supply chain. These innovations will
facilitate real-time monitoring, improve patient engagement, and streamline
pharmacy operations.
 43

References
1. MoHFW. Annual Report- 2022-23 [Internet]. Jan Aushadhi. Available from:
https://janaushadhi.gov.in/annual_report.aspx

2. PMBI, Ministry of Chemicals and Fertilizers. Pradhan Mantri Bharatiya Janaushadhi

Pariyojana (PMBJP) [Internet]. 2022 Dec. Available from:
https://janaushadhi.gov.in/pdf/Presentation%20on%20PMBJP_15022022.pdf

3. In the spotlight: E-pharmacy in India: An Exponential Growth Opportunity [Internet].

Available from: https://www.frost.com/wp-content/uploads/2019/01/Frost-Sullivan-
Outlook-on-e-pharmacy-market-in-India.pdf

4. Netmeds Marketplace Limited-Financial Report-. Netmeds Marketplace Limited -

Financial Report-2023 [Internet]. 2023. Available from:
https://rilstaticasset.akamaized.net/sites/default/files/2023-
08/Netmeds%20Marketplace%20Limited.pdf

5. Insurance, N. (2022, September 19). Upskilling and reskilling in pharmacy. NOW

Insurance. https://nowinsurance.com/blog/upskilling-and-reskilling-in-pharmacy/

6. Krylov, A. (2024, March 25). Upskilling Clinicians & Doctors for the Digital Ae. Kodjin -
Turn-key FHIR Server for Healthcare Data. https://kodjin.com/blog/digital-upskilling-in-
healthcare/

7. Mor N, Sen D, Zaheen S, Khan R, Naik P, Basu N. The pharmacy as a primary care provider.
Front Public Health. 2023 Au 24;11:1221439. doi: 10.3389/fpubh.2023.1221439. PMID: 37693714;
PMCID: PMC10483221.

8. Sanket Kaul AS. Implementing Revised Schedule M rules uphill task for small pharma.
2024 Jul 1; Available from: https://www.business-standard.com/health/implementing-
revised-schedule-m-rules-uphill-task-for-small-pharma-124010700461_1.html
 44

About the Authors

Dhruv Gulati Dr. Neerja Arora Vikram Anand

Chief Executive Officer, Senior Vice President, Vice President,
Pharmarack Pharmarack Pharmarack

Prameet Ghosh Priyanka Devi

Associate Director, Assistant Program Manager,
Pharmarack Pharmarack
 45

Appendix
Appendix 1: Therapy wise Growth of Branded Generics

Source: PharmaTrac

Appendix 2: Branded Generics: State wise performance

Source: PharmaTrac
 46

Appendix
Appendix3: State wise Branded Generics Market

Source: PharmaTrac
 47

Appendix
Appendix 4: Distribution Channel of Branded Generics
 48

Appendix
Appendix 5: Therapy wise Trade Generics Market

Appendix 6: State wise Trade Generics Market

Source: PharmaTrac
 49

Appendix
Appendix 7: Distribution Channel of Trade Generics - PART A

Source: PharmaTrac, Primary Interviews

 50

Appendix
Appendix 8: Distribution Channel of Trade Generic - PART B

Source: PharmaTrac, Primary Interviews

 51

Appendix
Appendix 9: Top selling drugs in Generic Generics segment (in units)

Source: Government Press Release

Appendix 10: State wise presence of the Jan Aushadhi Kendras

Source: Government Press Release

 52

Appendix
Appendix 11: Distribution Channel of Generic Generics

Source: Government Press Release

 53

Appendix
Appendix 12: Acute vs Chronic Therapy Areas sales in Online pharmacies

Source: Secondary Research

Appendix 13: Online Pharmacy Players and Key Operation Metrics

Source: Secondary Research

Appendix 14: Revenue(in cr) and store count of key players of Retail Drug Stores

, ,
, ,
,
, ,

Source: Secondary Research

 54

Appendix
Appendix 15: Distribution Channel of Online Pharmacies and Organized Retail Chain Drugstore

Source: Secondary Research, Primary interviews

NOTES
NOTES
For referencing this document, please adhere to
the following format: Source: Pharmarack.
"Changing Dynamics of Indian Pharma Supply
Chain." June 2024. Ensure that all citations include
the source name, the title of the document, and the
date of publication, as exemplified above.

No part of this publication may be reproduced or

transmitted in any form or by any means,
electronic or mechanical, including photocopying,
recording, or by any information storage and
retrieval system, without prior written permission
from the publisher.