Pharma sector to account for largest pie of Indian exports: Pharma Logistics Summit 2017
Feb 02, 2017: The global pharmaceutical market could be worth nearly $1.6 trillion by 2020. It is estimated that export of pharmaceutical products from India is likely to reach about $20 billion by 2020. Sensing the criticality of Indian pharmaceutical industry, the Indian Transport and Logistics News (ITLN) organized the first edition of Pharma Logistics Summit at Grand Hyatt, Mumbai on Thursday. Pharma Logistics Summit 2017 brought together regulatory authorities, supply chain heads of pharmaceutical companies and logistics service providers to discuss ideas and share best practices to mutually benefit each other. The event witnessed participation of 150 delegates.
Supported by OPPI and IDMA, the event was hosted by Brussels Airport and Brussels Airlines Cargo, with SpiceJet as gold partner and MIAL GVK as associate partner. The summit presented a perfect platform for supply chain heads of pharmaceutical companies and logistics service providers to discuss ideas and share best practices to mutually cater to each other’s requirements.
The day-long summit discussed key issues and steps to be taken to ensure end-to-end visibility in the pharmaceutical supply chain. The summit also deliberated on how companies in logistics industry should build their capabilities to meet world class standards in pharma transportation.
The summit started with the opening remarks by Dr K Bangarurajan, Deputy Drugs Controller (India) who delved upon the rapid changes in regulatory framework critical to enhance India’s pharma export. Currently, India is exporting $16 billion of pharmaceuticals that move to over 200 countries. He explained how the regulatory bodies facilitated the vast industry to reach this position. “After the new government, headed by our Prime Minister, there was a circular by DGCA that exports to regulated markets like USA, EU, Japan, Australia need not be referred for ADC port office NOC.”
Speaking on the role played by Single Window Project as a game changer for the Indian pharma industry, Gaurav Dhanda, Deputy Commissioner Customs (Single Window Project), Central Board of Excise & Customs highlighted on how the implementation of SWIFT (Single Window Interface for Facilitation of Trade) will enhance efficiencies and has enabled to reduce dwell time and ease of doing business. In case of imports, single window project was implemented in April 2016 whereas for exports the same started last month. As far as air cargo traffic is concerned, over 90 per cent of consignments are facilitated.
The inaugural panel discussion on “Enhancing pharma logistics – New strategies and methods” was moderated by Vivek Padgaonkar, Director, Project & Policy, OPPI and among the panelist were Steven Polmans, Head of Cargo, Brussels Airport Company; Manoj Singh, Senior VP & Head, Cargo, Mumbai International Airport; Ryan Viegas, Head of Logistics, APAC, TEVA; Gaurav Dhanda, Deputy Commissioner Customs (Single Window Project), Central Board of Excise & Customs; Dr K Bangarurajan, Deputy Drugs Controller (India); Ramesh Mamidala, CEO, CELEBI Delhi Cargo Terminal Management India and Tushar Jani, Chairman, SCA Group of Companies.
The panel echoed that India has lot of opportunities and room to grow and, going forward Indian pharmaceutical exports will be the largest from India in the coming years. The panel urged the need to change the mindset of logistics players and implement good logistics practices and good distribution practices.
Polmans said, “For the last five years Brussels Airport is looking at focusing on pharma projects. It was hence important to get in contact with pharma shippers which was not easy but would have made a difference. We wanted to be a preferred air cargo airport. Soon direct services between Mumbai and Brussels will be launched.”
Highlighting the scenario of India’s pharma sector, Padgaonkar said, “Indian pharma industry is placed third in global rankings in terms of volume but 14th in value. The gap between volume and value needs to be narrowed as global trade is fast moving from volume-based to value-based output. To improve our ranking, it is imperative to strengthen Intellectual Property protection, reduce business uncertainty and increase investor confidence. Investments in research and innovation are an integral part of a nation’s growth trajectory and India should aspire to take its rightful place on the global stage. Given the infrastructure and knowledge available in India, the next logical step towards development for the pharma industry as an aspect of value creation.”
Dr Bangarurajan informed, “Pharmaceutical sector is one of the top five FDI beneficiaries in India. At present, there are 18 Medical Device Rules and new Medical Device Rules are in pipeline that will help significantly improve the export of medical devices.”
Of the total cargo handled at Mumbai International Airport Ltd (MIAL), 40 per cent are pharma temperature controlled and non-temperature controlled cargo. Singh said, “We are upgrading Coolport facility at MIAL and in the next 18-19 months, we are expecting an increase of 500 per cent which will increase the capacity to 450,000 tonnes.”
Mamidala said, “In 2013, we designed a dedicated pharma facility in Delhi airport that handled 15-20 tonnes a day. Over the years, we have made huge investments and currently the facility handles 200-250 tonnes a day. The airports should have global quality facility to standardize pharma exports.”
Talking about the areas of concern, Viegas, said, “The shippers need to take the ownership for the products. We need to understand that the regulatory bodies and airports are facilitators. We need to change the mindset of people.” Jain added, “As far as India’s pharma logistics is concerned there is a need to build an ecosystem and best infrastructure for facilitate smooth operations of pharma logistics.”