China has gained the status of a high-potential consumer-driven market, instead of just a cheap manufacturing hub. And India has more than a 100 companies in line, raring to hunt down the Chinese dragon. By STEVEN PHILIP WARNER
Clearly, one of the primary reasons why Indian
companies are setting up shops on the Chinese mainland, especially when it comes to the IT industry, is because of the government allowing huge incentives for investments in these areas, which includes tax holidays and reduced land rentals and import charges. And these advantages are not something which the pharma industry is devoid of too. Talk about Ranbaxy which has decided to convert China into a major manufacturing hub and a market as a whole – in other words, a complete make and sell model in place! Ramesh Adige, Executive Director, Ranbaxy, while commenting on the same pronounces, “China is emerging as a good destination to source cost-effective ‘Active Pharmaceutical Ingredients’ and intermediates which will allow companies like Ranbaxy to economise its cost of production…” And its not just Ranbaxy wanting to gain control over Chinese drugs, but also Dr. Reddy’s, which besides buying cheaper raw materials from China has also set up a JV in Shanghai where it employs about 100 people who develop drugs for the Chinese market and conduct pilot tests for drug sales in China as well.
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Source : IIPM Editorial, 2008
Clearly, one of the primary reasons why Indian
companies are setting up shops on the Chinese mainland, especially when it comes to the IT industry, is because of the government allowing huge incentives for investments in these areas, which includes tax holidays and reduced land rentals and import charges. And these advantages are not something which the pharma industry is devoid of too. Talk about Ranbaxy which has decided to convert China into a major manufacturing hub and a market as a whole – in other words, a complete make and sell model in place! Ramesh Adige, Executive Director, Ranbaxy, while commenting on the same pronounces, “China is emerging as a good destination to source cost-effective ‘Active Pharmaceutical Ingredients’ and intermediates which will allow companies like Ranbaxy to economise its cost of production…” And its not just Ranbaxy wanting to gain control over Chinese drugs, but also Dr. Reddy’s, which besides buying cheaper raw materials from China has also set up a JV in Shanghai where it employs about 100 people who develop drugs for the Chinese market and conduct pilot tests for drug sales in China as well.For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
