India: AH Market Update 2019 -2020
Health Care Market Update: 2019-20
Animal Health Care market in India remained in a secular, steady growth phase with an increasing number of local companies expanding global footprints till Covid19 hit the shores in February 2020.
FY 2019-2020 was one of the most happening and action packed year for the local industry with legwork and preparations for 2 large M&A deals and 1 IPO underway. While the announcements came in the month of May 2020 – after competition of Financial Year – the process was well underway in the prior months.
Favourable demographics, supportive regulatory framework coupled with entrepreneurial spirit have ensured a steady supply of new entrants (local as well as international) into this market.
Key characteristics of local AH Industry could be summarized as:
Size of the AH Market in India: 2019 - 2020
Advantage India
India has emerged as an attractive as well as reliable supplier of quality APIs and Formulations on account of a number of competitive advantages, as explained below:
Number of Formulation Companies
Animal Health sector accounts for little over 250 national as well as International companies spread across the geography – a growing number of International companies have made entry via Acquisition of local companies, e.g. formerly Merial acquired Dosch Pharma followed by Ceva Sante acquiring Polchem India – solely for market entry and to gain direct domestic presence.
Key Market Segments
Like many other markets, the animal health industry in India has three distinct segments:
1. Livestock – by far the largest segment on account of large animal populations
2. Poultry / Aquaculture Segment and
3. Companion Animals segment – small but relatively faster growing segment
· Livestock remains the largest segment represents around 52% of the market – but is growing at lower rate of 5% than overall market rate of 6%
· Poultry represents 39% of the market, up from 37% earlier and is expected to outgrow the market as well as Livestock segment, with a recorded growth rate of 8% in the past 2 years
· Aquaculture over the last 5 years has emerged as fast growing segment due to impressive growth in shrimp exports from India and increased spends by shrimp farmers
Animal Health – Therapeutic Segments
Source: Press Reports / AHI Analysis / Investment Bankers' CIM Reports / INFAH
