Destination India!!!Attractions and Opportunities

Vijay TengExecutive Vice President- Global Animal Health

Business, INTASGeneral Secretary- INFAH

Presentation OutlookIndia- Overview

Animal Husbandry Sector

Animal Health Market

Drug Regulatory System

Partnering Opportunities

A Distinct Geographical Entity

7th Largest Country in the WorldCovers an area of 3.3 Million sq. km

Rich Cultural Heritage

One of the oldest and greatest civilizations of the world22 different Languages & 8 Religions

Largest Democracy in the World

29 States and 7 Union TerritoriesLargest written liberal democratic constitution of the world

The Shining India

7th Largest GDP, 3rd Largest Purchasing Power Parity3rd most attractive nation for inbound investmentsTop destination for FDI, overtook China and US in 2015 [Financial Times]6th Largest manufacturing country [UNIDO-2015]

The Shining India

3rd in World in Volumes of Pharmaceuticals and 14th by Value20% of global exports in generics, making it the largest provider of generic medicines globallyHighest DMFs filed in USFDA by INDIA

“The greatness of a nation and its moral progress can be judged by the way its animals are treated”

Mahatma Gandhi, Father of Nation

INDIAOn the Path of Animal Health

Revolution

INDIA- Land of Diverse Animal Resource

Animal Husbandry Department, GOINBAGR, ICAR

1st in Bovine300 million

2nd in Goat135+ million

3rd in Sheep65+ million

5th in Poultry729+ million

2nd in Aquaculture70,000 hectare

10th in CamelCamel- 0.4 million Horse- 0.62 million Pigs- 10.3 million

More than 500 million Livestock Heads

Around 10 species of Domesticated Animals

11.6% of World LS Population

Highest Milk Producer18.5% of World Milk

Production

BrazilPakistan

ChinaUSA

India

0 20 40 60 80 100 120 140 160

35.74245

93.5146.31

2010-11

2011-12

2012-13

2013-14

2014-15

020406080

100120140160

121.8 127.9 132.4 137.7 146.31

3.97%6.27%

2014-15 [million tonnes]

Milk Production- 5yrs [million tonnes]

Annual Report 2015-16, Dept. of AH, GOI

3.52%5.01%

Highest Milk ConsumerPer capita availability:

322g/day [2014-15]

Annual Report 2015-16, Dept. of AH, GOI

Milk is 2nd largest item of monthly food spend

27.50%

16.20%

15.80%

12.80%

8.10%

6.00%

6.60% 6.90% Cereals

Milk&Milk Products

F&V

Beverages

Edible Oil

Pulses

Egg, Fish, Meat

Others

NSSO

Heritage Cattle• Major miltch breeds

Sahiwal Gir Red Sindhi Tharparkar Rathi

• Miltch breeds are known for high milk production, disease resistance and healthy milk

• Rashtriya Gokul Mission- Conserving Indigenous Cattle Breeds

40 Indigenous Pure Cow Breeds

A2 Type of Milk

Buffalo Hub57% of World’s Buffalo

Population

51% of milk production is from buffaloes

• Huge buffalo germplasm diversity (12 recognized plus 14 distinct population groups)

• World renowned buffalo breed – Murrah• Top buffalo meat exporter of world

Buffalo; 51.06%Cow Exotic;

25.25%

Cow In-digenous; 20.15%

Goat; 3.54%

Quantum Leap in Poultry

China; 39.4%

US; 7.6%

India; 5.1%

Japan; 3.4%

Mex-ico;

3.4%

Rest of the World; 41.1%

FAOSAT-2015

Top-5 Countries Percent Share in Egg Production

World’s 3rd largest Egg Producer: 78.48 billion eggs [2014-15]Ranks 5th in Poultry Meat Production: 3.05 million tonnes

Average Egg Availability: 63 eggs per year [2014-15]

Meaty MattersSpecies Contribution to Meat Production

Poultry; 45%

Buffalo; 21%

Goat; 14%

Sheep; 8%

Pig; 7%Cattle; 5%

Annual Report 2015-16, Dept. of AH, GOI 2010-11 2011-12 2012-13 2013-14 2014-15012345678

4.95.5 5.9 6.2 6.7

Last 5 Yrs Meat Production [Mill. Tonnes]

4.83%

7.31%

7.27%14.58%

6.7 million tonnes of Total Meat Production [incl. poul.]

Slaughter Industry 3,600 slaughterhouses, nine modern abattoirs and 171

meat-processing unitsCow Slaughter is banned in Country [excluding few states]

Buffalo Meat- Highest Agri Related Export- 1.56% Contribution

World’s Leading Beef Exporter

5th Largest Meat Producer [Mn. Tonnes]

China US Brazil Germany India0

1020304050607080 74.5

43.1

22.87.6 6.7

India; 20.24%

Brazil; 19.20%

Australia; 15.83%US; 11.56%

New Zea-land; 6.06%

Rest of the World; 27.11%

FAOFAO

Aquaculture BoomCoastline of 8118 kms

2nd Largest Producer of Fish and Fresh Water FishFish Production: 101.6 lakhs tonnes [2014-15]

Fresh Water Aquaculture has 80% share in Inland Fisheries

 

Annual Report 2015-16, Dept. of AH, GOI

Last 5 Yrs Fish Production [Mill. Tonnes]

2010-11

2011-12

2012-13

2013-14

2014-15

0

2

4

6

8

10

12

7.058.23 9.04 9.57 10.16

Inland; 66.6

Ma-rine, 35

Shift towards Inland [lakhs tonnes]

Pets- Companions for Life• Highest growing country in Dog Population• 4th largest pillar of AH industry of India

• On an average 600,000 pets are adopted every year• Fastest growing pet market in the world [Euromonitor International]

01020304050607080 75.8

35.727.4

15 12 11.6 10.2 9.2 7.4 4.1

Top Ten Countries in Pet Dog Population [Millions-2012]

Euromonitor Survey

http://www.mapsofworld.com/world-top-ten/countries-with-most-pet-dog-population.html

Animal Health and Indian Economy

• Contribution to GDP Contribution to Ag.

GDP- 25.6% Contribution to Total

GDP- 4.11%

• Total Value Output – USD 63 billion

USD-INR Rate: 65

Brazil China India0%

10%20%30%40%50%60%70%80%90%

100%

5 10 1728

47 27

6743

56

GDP by Industry %

Agriculture and Livestock Manufacturing, Mining and ConstructionServices

INDIA- An Agrarian Economy

Government Policy

• Budget of Animal Husbandry and Fisheries under 12th five years plan is more than 2 billion USD

Animal Husbandry

51%Dairy Devel-opment

33%

Fisheries16%

Annual Report 2015-16, Dept. of AH, GOI

Government Initiatives

• National Livestock Mission- USD 430 Mn. • National Animal Health and Disease Control Program for

various animal diseases- USD 479 Mn. FMD, PPR, Brucellosis, Classical Swine Fever, Bird Flu

• National Dairy Plan- USD 270 Mn.• National Program of Bovine Breeding and Dairy

Development- USD- 277 Mn. • National Fisheries Development Scheme- USD 289 Mn.• Conservation of Indigenous Cattle• Blue Revolution- Inland Fisheries

Annual Report 2015-16, Dept. of AH, GOI

Animal Health Infrastructure• The Animal Health Care is an integral part of Rural

Development

• Healthcare is majorly under the government purview and health care providers are mainly employed by government

Animal Health Infrastructure NumbersVeterinary hospitals and

polyclinics11000 +

Veterinary dispensaries 26,000 +Veterinary Aid Centres 23,000 +

AI Centres 60,000 +State Diagnostic Labs 23

Annual Report 2015-16, Dept. of AH, GOI

Animal Breeding and Genetics

• Operating 18 Central Livestock Organisation and Allied Institutes for production and distribution of superior germplasm

• 52 semen stations 44- ISO certified and 7- HACCP certified

1999-2000 2014-15Semen Production 22 million straws 85 million straws

No. of inseminations 20 million 65.30 millionConsumption Rate 20% 35%

Annual Report 2015-16, Dept. of AH, GOI

Dairy Co-operatives• 198 milk co-operatives

• 1,65,549 village level dairy co-operative societies [March 2015]

• Avg. Per day procurement of milk- 37.9 million kgs [2014-15]

Annual Report 2015-16, Dept. of AH, GOI

Veterinary Education

• 5 years plus 1 year of internship• 57 colleges• 13 State Veterinary Universities, 2 Deemed Universities• > 2000 veterinarians graduating every year• 21 Central Research Institutes and Higher Studies Centers

Employment Generation

• 20.5 millions are engaged in AH sector• Livestock sector provides employment to about 8.8% of

Indian population • Shift from a complementary source of income to full-time

engagement

Ppt- Dr. Bhatia

Women Empowerment• At the forefront of animal husbandry activities• Feeding and Milking are majorly done by women

• Women are driving the milk co-operatives at village levels• Dominating in other AH sectors like fisheries and poultry

Challenges of Animal Husbandry in India

Effective Control of Diseases

Shortage of feed and fodder

Breed improvement while preserving diverse resources

> 530 Mn. USD

>640 Mn. USD

>700 Mn. USD

> 790 Mn. USD

2013

2014

2016

Animal Healthcare Market- India

2015

Source: Internal [Industry Estimates ]

CAGR: 11%

Animal Healthcare Market- India

50%40%

5% 3% 1%

CattlePoultryCompanionAquaOthers

40%

17%

13%

15%

5% 10%

Feed Sup-plements

Antibacterial

Antiparasitic

Biosecurity

Hormones and Biologicals

Others

Species Wise Contribution Therapy Wise Contribution

Factors Influencing Growth

Demand Drivers

Government Policies

Veterinary Services and

Disease Trends

Boosting Economy

Demand Drivers

Increase in human Population Increased Demand for Food

> 8% growth from 2010 to 2020

1.2 Billion[2010]

>1.35 Billion[2020]

Demand DriversIncreasing Urbanisation

Per Person Monthly Spending

[Rs.]

Rural Urban

Milk and Milk

Products

Rs. 58 to Rs. 331

Rs. 111 to Rs. 422

Egg, Fish and Meat

Rs. 42- Rs. 201

Rs. 66 to Rs. 200Milk

Eggs

Fish

Chicken

Mutton

0 10 20 30 40 50 60 70 80 90

85

38

21

27

10

78

29

27

22

6

RuralUrban

Percentage of Households Reporting Consumption Monthly Spending on Animal Based Food

Increased Consumption Increased Spending

NSSO-2011-12

Boosting EconomyAffordability and Purchasing Capacity

•3rd Largest Economy by PPP

•According to Goldman Sachs, India's GDP per capita in US$ terms will quadruple from 2007 to 2020, and the Indian economy will surpass the US by 2043

China US India Japan Germany0

5

10

15

20

2521

18

8.74.9 3.9

Int. $ Tn.

Government Policies

Government Funding towards Animal Husbandry

Aggressive Breeding Policies

Public Private Partnerships

Investment on Infrastructure

Disease Trends- Fueling Growth• Transformation from disease control and treatment to

complete health cover and welfareChange in

Perspective of Animal Health

• Focus on farm productivity, FCR and ROIFarm Nutrition

• Infectious disease threat will remain diverse and dynamicDisease threat

• Climate change may contribute in disease incidence and spread• Floods- increase water borne conditions• Drought- Migration leading to disease spread

Effect of Climate Change on Animal

Health

Drug Regulations- India

Central Drugs Standard Control Organization (CDSCO), Ministry of Health & Family Welfare, Government of India provides general information about drug regulatory requirements in India

Drugs (Price Control) Order 1995 and other orders enforced byNational Pharmaceutical Pricing Authority (NPPA), Government of India

Legal Enactments

• Drug and Cosmetic Rules 1945 made under D&C actDrug and Cosmetic

Act 1940

• NPPA decides on pricing of list of essential medicines Drug Price Control

Order 1995

Registration of Veterinary Drugs

Ministry of Health

Submission of Application CDSCO

Department of Animal

Husbandry

Ministry of Agriculture

IVRI

Indian Veterinary Research Institute

Technical Evaluation

[Biologicals]

Import of Drugs to India

TYPE-1Drug containing

• Molecules Already available in India• Molecules in Indian Pharmacopiea

TYPE-2New Drugs, Biologicals and Medical Devices

• Issued in Form 45 by Licensing AuthorityImport Permission

• Issued in Form 41Registration Certificate

• Issued in Form 10Import Licence

• Issued in Form 41Registration Certificate

• Issued in Form 10Import Licence

Salient Points- Drug Registration

• Validity of Registration certificate and Import Licence is 3 yrs There are efforts going on for increasing it to 5 years

• Retained shelf life of imported drugs should be minimum 60%

• Single application to be made for the drugs manufactured in single factory, in case the drugs of the manufacturer is manufactured at different factories, separate applications has to be filed for considering each factory

• Licensing authority takes 9 months for issuing the registration certificate provided that all the details filled were in desired format

Digitalizing Drug Approval System

Foreign Direct Investment Policy

• 74% FDI under automatic route permitted in brownfield pharmaceuticals. FDI beyond 74% will be allowed through government approval route

• 100% Foreign Direct Investment (FDI) is allowed under the automatic route for greenfield projects

• Requirement of ‘controlled conditions’ for FDI in Animal Husbandry (including breeding of dogs), Pisciculture, Aquaculture and Apiculture has been done away with

• 1.2 billion USD company with CAGR of > 25%

• Global presence in over 70 countries backed by strong product basket and pipeline

• 13 Manufacturing facilities with dedicated veterinary injectable site

• Global program to drive NDDS basket in space of companion animal oncology, atopic dermatitis and KCS

www.intaspharma.comwww.intasanimalhealth.com

A leading pharmaceutical company in India

• United progressive force of companies & non-profit organizations working towards better animal health care

• There are 47 member companies belonging to different genres of Animal Health industry of India right from

Pharmaceutical to Feed manufacturers and medical support systems.

www.infah.org

INFAH Members: 47 AH companies

Partnering Opportunity with India

If you are eyeing India, it’s a high time to be in!

India can be a strategic partner for diverseopportunities both within the country as wellas can be a catalyst for accelerating growth in

rest of the world

Partnering Opportunities in India

Product Specific Tie-ups and Contract

ManufacturingClinical Trials

Bio-technology Bioinformatics/ Biostatistics

Contract R&D

Inviting You to Visit INDIA to experience world-class heritage,

diverse animal resource &Attractive infrastructure!!!