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Responding to Russia’s call for collaboration in the pharmaceutical sector, India is planning to turn an exhibition for domestic drug producers in St Petersburg in September into a hunting ground for companies interested in joint ventures to tap the vast Russian market.
“We have asked the Pharmaceuticals Export Promotion Council of India (Pharmexcil) to identify companies interested in Russia and carry out a due diligence. Since there is already an exhibition planned for Indian drug companies in St Petersburg in September, if the due-diligence is done by that time, some of the companies interested in joint ventures can also travel with the delegation and explore possibilities,” a government official told BusinessLine.
The Commerce Ministry can then ask the Russian side form a delegation and the two sides can discuss and decide on the possibility of joint ventures, the official added.
The proposal of exploring joint ventures in the pharmaceutical sector was made recently during an Indo-Russian bilateral meeting by Boris Dubrovsky, Governor of the Chelyabinsk Region of the Russian Federation.
Seeking proposals from Indian companies, Dubrovsky pointed out the joint ventures in this region would be extremely beneficial for the Indian industry.
“In view of the importance of the CIS region in our Indian pharma exports, we request our members to inform us their views and interest in setting up joint ventures in this region to enable us to proceed further in this matter,” a recent communication from Pharmexcil to its members stated.
Pharmexcil — the council for promotion of pharmaceutical exports set up by the Commerce Ministry — followed the communication with a meeting with top Indian pharmaceutical companies ready to look at the possibility of investing in the Russian market.
“Indian pharmaceutical companies like Dr Reddy’s, Glenmark and Ranbaxy are already exporting to the Russian market. But joint ventures always help in increasing the market share as it raises the level of confidence of locals while buying products of foreign companies,” the official said.
Exports of pharmaceuticals from India to Russia have been steadily declining from $535.89 million in 2013-14 to $351.68 million in 2016-17 due to the country’s increasing tendency to give preference to local products and strict regulatory requirements.
“Joint ventures with Russian pharmaceutical companies will not only help Indian companies to increase their presence in the Russian market but also tap the potential of the Eurasian Economic Union, which include Belarus, Kazakhstan, Russia, Armenia and Kyrgyzstan,” the official added.
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