Coexisting with pharmaceutical giants in India

Micro, small and medium enterprises (MSME) contribute significantly to employment generation and poverty alleviation all over the world. Their role is undeniable in a thickly populated country like India where 80% population lives with less than Rs 20 per day. On the advent of globalization and market economy, these units are in clear disadvantage. They cannot afford the expertise of skilled manpower to compete with multinational giants. When we come to the pharmaceutical industry, 20,000 players vie for a pie from Rs 680 billion retail market (ORG, 2012). According to one study in 2005, top twenty players together had 50% of pharmaceutical turnover. That means, these Rs 1 Cr small enterprises, with their innovation and reach could make medicine prices the lowest in the world. So, their contributions to make ‘health -for-all’; program successful would be high. The change of Indian Patent Act, 1970 from January 2005 has put these organizations on the brink. By now, a good number of these units might have been eliminated from the market. The question is: can these tiny pharmaceutical companies fight back? What would be their ammunitions for holding their fort? This paper analyses their difficulties and comes out with strategic interventions for their success.