Indian Animal Health Industry - The National Treasure - less explored


Introduction

John Sculley the famed entrepreneur and high-tech startup investor, once said, "No great marketing decisions have ever been made on qualitative data."
Yes, we are discussing good and tangible QUANTITATIVE data for our industry. The data should be beyond imaginative or interaction-based numbers. Data will be based on robust logic, market research, and sector specific.
Indian Animal Health Industry is undoubtedly a hot spot - amongst the top 3 in all the Livestock/Poultry and Aqua sectors. This business is not only growing by volume. We are growing by value, geographic expansion, and innovations.
No wonder this 'investor-friendly sector' can attract investment for organic and inorganic growth of the organization - be it Capacity building in manufacturing, investment in R&D, invest in launch of new products, expansion in new species segment, acquiring a portfolio or brand
Credible data helps us.
Sadly, the lack of credible data makes us defensive. At times we depend on data generated from sources from overseas market research groups.
So
Time to create an innovative database of our own.
Time to have a robust quantitative and logical database for the sector we serve.
Happy to hear from each one of you!


Purpose

To develop a credible, India specific animal health industry data base by reaching out to organized and unorganized sector. There are roughly 350 Animal Health Companies in India including Multinational and Indian Companies. Although Animal Health Companies are based in urban area but our market lies primarily in rural area, its field force, distribution channel caters vastly to rural and urban area. Hence, we felt that instead of just a retail-oriented market survey a new approach based on animal population and its consumption of vaccine, medicines and nutraceuticals will be more practical and realistic.


Key Features and USPs
  • Extensive Consumption-Based Market Research
  • Segment Specific
  • Audit
  • Client-Specific Questionnaire
  • Integrity
  • Periodic Updates
  • Software Based
  • Precision
  • Professionally Trained Interviewers
  • Confidentiality
  • Periodic Updates: Initially biannual; from year 2, quarterly
  • Customization: Regional/Product Specific

Sample Data
Species Average Annual Spending (in Million) Vaccine (Rs) Average Annual Spending in Health Care/Feed Additives (Rs) Spending in Rs Crore Healthcare Spending in Rs Crore TOTAL (in CR)
Cross Breed Female 26.22 1500 3933
Other Female Cattle 46.73 500 2337
Total Adult Female Cattle 72.95
Other Cattle 126.13
Total Cattle 199.08 35 697 6270 6966
Adult Female Buffalo 54.47 1500 8171
Other Buffalo 50.87 500 2544
Total Buffalo 105.34 35 369 10714 11083
Sheep 71.56 10 50 72 358
Goat 140.54 10 50 141 703
Sheep & Goat 212 1061 1273
TOTAL RUMINANT 1278 18044 19322
Broiler 4800 1 6.8 480 3264 3744
Layer 280 20 48 560 1344 1904
Breeder 32 60 685 192 2192 2384
TOTAL POULTRY 8032
AQUA 1250
COMPANION ANIMALS 600
OTHERS 200
TOTAL AH 29404

Given the above background we can say that Indian Animal Health segment is huge (INR 30,000 Crore) - much more than a conservative estimate of INR 10,000 crore. Unfortunately for many decades this industry remained under pharma dominated companies. Consolidation of pharma sector in international level saw many mergers and acquisitions in Animal Health business (worldwide) and lead to emergence of many National/Regional players in India. However, we need to acknowledge the fact that Indian Pharma sector has acquired the status of "Pharmacy of world" due its investment in R&D, Manufacturing and improvement of Regulatory standards - however our own AH segment is lagging far behind from pharma sector. The segmental attractiveness as narrated below opens up scope for future investment in R&D, Manufacturing of APIs /Bulk drugs/Superior formulation in India.


Segmental Attractiveness

Through this article I want to urge upon investors / policy makers that let us not undermine this segment, we need more than what has been done so far. Leveraging the AHIDF or similar schemes we need to invest in API manufacturing, invest in process improvement of bulk drug manufacturing so that we can compete Chinese manufacturers. Such investments in R&D, Manufacturing of vaccines, APIs, formulation can be done keeping any eye in Global Animal Health market (currently at 62.40 billion USD).



Dr. D. K. Dey

Executive Director Immuereka
Immeureka Animal Health Pvt Ltd.
+919391913951
dey@immeureka.com | dr.dkdey@gmail.com


SEGMENT SPECIES ATTRACTIVENESS
THERAPEUTICS All Poor - AMR concerns / No new molecule
BIOLOGICALS Poultry High
BIOLOGICALS Poultry Very High (Technology oriented)
FOOD/GROOMING/BIOLOGICALS Companion Animals Moderate to high - Volatile/import dependent (API, Vitamins)
FEED/NEUTRACEUTICALS/IMMUNOSTIMULANTS Aqua Very High

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