Emerging global hubs not immediate threat to Indian CMOs, says RNCOS

By Gareth Macdonald

- Last updated on GMT

Related tags Contract manufacturing Industry

Emerging global hubs not immediate threat to Indian CMOs, says RNCOS
The financial flexibility and quality standards of Indian CMOs should be enough to stave off competition from newer global contract manufacturing hubs, according to market research company RNCOS.

The comments follow the Norida, India-based market research group’s publication of a report forecasting that the country’s $1.3bn (€918m) pharmaceutical contract manufacturing sector will grow at a CAGR of 45 per cent through to 2013.

RNCOS spokesperson Isha Soneja told Outsourcing-pharma.com that: “Other emerging manufacturing hubs do not pose any immediate severe threat​.”

The primary supportive reason constitutes the investment power held by Indian contract manufacturing companies, which is much higher and flexible, making them capable for undertaking orders of any scale.

Indian companies constitute a better control over intellectual property theft and counterfeiting compared to companies in other countries. Besides, Indian companies ensure greater attention towards quality assurance and compliance to GMP practices, and have a proven track recor​d.”

Soneja also predicted that larger players with GMP and FDA-certified manufacturing capabilties, such as Piramal, Dishman, Dr. Reddy’s, Jubilant and Wockhardt, will maintain their dominance of the market.

These companies are taking the requisite efforts towards every aspect of contract manufacturing, which includes infrastructure expansion, quality testing, collaborative efforts.

Additionally, these companies have the largest manufacturing capacity compared to the other contract manufacturing companies in India, making them idea​l.”

Maintaining growth

Looking forward Soneja believes that Indian CMOs need to focus on quality and efficiency to stay ahead of countries like China, Bangladesh, Vietnam and Taiwan, whose contracting markets are currently undergoing rapid growth.

In order to maintain the high rate of expansion in the contract manufacturing industry, the companies would be required to ensure high-quality levels in manufacturing, packaging, and transportation. Also, companies providing the contracts expect efficiency in project handling and timely delivery from the contract manufacturing companies.

To compete with the other contract manufacturing hubs, Indian companies would also have to keep upgrading their manufacturing facilities with latest technology, prevent theft, and counterfeiting in conjunction with the regulatory authorities.

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