Global Pharma Insights and Startup Investments: A conversation with the Director General of PharmExcil

Mr. K Raja Bhanu, Director General at Pharmexcil, is a key leader in promoting India’s pharmaceutical exports. With extensive experience in international trade and regulatory affairs, he guides the council’s strategic initiatives to enhance the global presence of Indian pharma products. Mr. Bhanu plays a crucial role in fostering collaboration between Indian exporters and international markets, ensuring compliance with global standards. His expertise in navigating trade policies and regulatory frameworks has been instrumental in strengthening India's position as a reliable supplier in the global pharmaceutical landscape.



Mr. Ravindra: So today on a fireside chat, we have Mr. K. Raja Bhanu, Director General for Pharmaexil. Pharmaexil is basically a pharmaceutical export promotion council of India. Welcome, Mr. Bhanu.

Mr. K Raja Bhanu: My pleasure.

Mr. Ravindra: I think you have had an incredible journey as a controller and as a regulatory officer.

Mr. K Raja Bhanu: Yes.

Mr. Ravindra: And you were also a joint director for...

Mr. K Raja Bhanu: I was a deputy director in Andhra Pradesh for drug administration.

Mr. Ravindra: You've held many significant roles. Now you are in a completely different role as the Director General of PharmExil. I really want to understand what PharmExil is all about and what your roles are here.

Mr. K Raja Bhanu: Sure. PharmExil, if you expand the acronym, stands for the Pharmaceutical Export Promotion Council of India. It was set up under the Ministry of Commerce and Industry and under the foreign trade policy. Since 2004, it has been operational, initially spun out of ChemExil. Since its inception, it has aimed to have a greater global presence, which the policymakers envisioned. The headquarters is in Hyderabad, with regional offices in Delhi and Mumbai.

PharmExil’s primary objective is to promote exports of pharmaceutical products. This includes drugs, pharmaceuticals, APIs, and finished dosage forms. Previously, we also managed medical devices and AYUSH products, but now there are separate councils for those.

Our core sectors are now APIs, drug intermediates, and finished dose forms. The Indian pharma sector is substantial; currently, it is around 55 billion USD, with about half for the domestic market. In the financial year 2024, we exported around 27.8 billion USD to approximately 200 destinations, solidifying India’s image as the pharmacy of the world. About 30% of our drugs go to highly regulated markets like the US and Europe, with increasing exports to Africa and Latin America.

From 2004, when PharmExil started, exports were around 3.9 billion USD. By 2014, this figure rose to over 14 billion USD, and in the financial year 2023-24, it reached 27.8 billion USD. Our target for the next financial year is around 29.8 billion USD, reflecting a CAGR of around 9%.

India has ambitious targets for the pharma sector, aiming for 130 billion USD by 2030 and 400 billion USD by 2047, coinciding with 100 years of independence. The sector is strong in formulations, oral solid dosage forms, liquid orals, vaccines, and more. About 60% of WHO pre-qualified units are in India. We have around 6,000 manufacturing units, the highest number of US FDA sites outside the US, and a significant number of ANDA and DMF filings.

This robust sector not only meets domestic needs but also caters to many countries worldwide. Quality and affordability are our key strengths, thanks to our technical prowess developed over the years. Public sector undertakings like IDPL, Karnataka Antibiotics, Kerala Drugs and Pharmaceuticals, and others laid the foundation, which evolved with the Patents Act allowing process patents. This enabled us to manufacture many drugs, leveraging our strong chemistry capabilities.

The future focus will be on innovation, including biosimilars, complex generics, and personalized medicines. This will provide a competitive edge and drive value in the coming decade.

Mr. Ravindra: Absolutely. The next decade should indeed be a golden era for India.

Mr. K Raja Bhanu: Yes, hopefully.

Mr. Ravindra: Hyderabad is becoming the pharmacy of India, with many startups looking to expand internationally. How does PharmExil support them?

Mr. K Raja Bhanu: It's not just in Hyderabad but across the country. The government of India supports startups through budget allocations, like the 5,000 crore earmarked for innovations. The goal is to turn research and innovations into products that meet public needs.

During the pandemic, we saw new opportunities and challenges. We aim to anticipate future needs and ensure we are prepared.

Mr. Ravindra: Fantastic. I've heard PharmExil conducts many trade shows and exhibitions.

Mr. K Raja Bhanu: Yes, that's part of our DNA. We organize events supported by the government to project India as the pharmacy of the world. We take delegations to various regions, including Africa, Europe, Latin America, and CIS countries. We have around 4,000 members, including manufacturers and exporters, and support them in accessing international markets.

For example, we reimburse 50% of the registration amount for products registered abroad, supporting MSMEs in getting their products into global markets. Upcoming events include the International Pharma Exhibition (IFEX 2024) in Noida from August 28-30, with around 440 exhibitors and 400 foreign buyers already registered.

This event will showcase the strength of the Indian pharma sector, including our human resources, APIs, excipients, raw materials, and manufacturing capabilities. It will highlight our extensive supply chain and the comprehensive ecosystem we've developed since the 1970s.

Mr. Ravindra: Absolutely.

Mr. K Raja Bhanu: We have around 10 lakh pharmacists and a strong educational infrastructure, with numerous colleges and NIPERs providing skilled professionals in various pharma sectors.

Mr. Ravindra: This is indeed the right time for us.

Mr. K Raja Bhanu: There’s also demand for including pharmacy in UPSC exams, recognizing it as a vital service like administrative services.

Mr. Ravindra: It was wonderful talking to you and understanding the role of PharmExil and government agencies in the growth of pharma. With your contribution, I'm sure we have a golden age ahead.

Mr. K Raja Bhanu: We have a dynamic minister, Mr. Piyush Goyal, and a visionary Prime Minister. With their support and the industry's innovation, we are poised for significant growth. Our tagline is: tried, tested, and trusted.

Mr. Ravindra: Yes, tried, tested, and trusted.

Mr. K Raja Bhanu: Exactly, that's the formula.

Mr. Ravindra: Amazing. Thank you for talking to Pharma Now.

Mr. K Raja Bhanu: Thank you so much.