Page 64 - FBL AR 2019-20

Fermenta Biotech Limited
Annual Report 2019-20

Global enzymes market overview enzyme engineering coupled with other product demand in the near future.
The global enzymes market was valued technologies have led to the growth North America accounted for the largest
at USD 9.9 billion in 2019 on the back of the enzymes market. Moreover, market share in the enzymes market.
of increasing demand from end-use increasing health awareness among Technological advancements in this
industries, such as food and beverage, consumers has resulted in the growing region have made enzymes available for
biofuel, animal feed and home cleaning. consumption of functional food a wide range of applications.
Furthermore, the advancements in products, which is expected to propel (Source: Grandview research)

Indian pharmaceutical market in large international markets such as for various vaccines and 40% of the
overview the United States. The industry has demand for generic products in the US.
The Indian pharmaceutical industry is played a key role in driving better The domestic pharmaceutical market
the world’s third-largest manufacturer health outcomes across the world contributes ~2% of the global industry
of drugs by volume. The industry’s through its affordable and high-quality in value and ~10% in volume terms. The
journey to the annual revenues of generics drugs. Increased accessibility Indian pharmaceutical industry is poised
~USD 38 billion is a culmination of the to affordable drugs has been one for growth and based on the 7-8% CAGR
world-class capabilities in formulation of the key enablers for lowering the over the next decade, the industry’s
development, the entrepreneurial disease burden in India. India is the annual revenues is expected to grow to
ability of the firms and the vision of the world’s largest supplier of generics, USD 80-90 billion by 2030.
industry to establish India’s footprint accounting for 20% of global exports. (Source: https://www.ipa-india.org)
It supplies over 50% of global demand

Demand drivers
Rising population tourism, and, in turn, has enhanced Ageing population
India is the second-most populous country prospects for the Indian healthcare The share of elderly in India i.e., those aged
with a population of around 1.36 billion market. Treatment for major surgeries in 60 years and above, will continue to rise
in 2019 and growing at >1% per year, the India costs approximately 20% of that in steadily to nearly double from 8.6% in 2011
largest population increment anywhere. developed countries. Owing to this reason, to 16% by 2041. This will drive investments
the number of foreign patients increased in health care.
from 75,688 in 2014 to 134,344 in 2015
Increasing incomes to 201,333 in 2016, and skyrocketed to a
The nominal per-capita net national staggering 495,000 in 2017. Increasing penetration of health
income during FY 2019-20 was estimated insurance
at H134,226, a rise of 6.1% compared The gross healthcare insurance stood at
to H126,521 during FY 2018-19. The Chronic diseases 27.3% of overall gross direct premium
affordability of drugs could rise due to The rising burden of chronic non- income by non-life insurers segment in
sustained growth in disposable incomes communicable diseases (NCD) that FY 2019-20. Health insurance is gaining
and increases in insurance coverage. primarily includes cardiovascular diseases, momentum in India; gross direct premium
cancer, chronic respiratory diseases and income underwritten by health insurance
diabetes would drive the demand for grew 17.16% y-o-y to USD 7.39 billion in FY
Healthcare sector innovative medical solutions. Almost 63% 2019-20.
India has only 0.8 doctors and 0.7 hospital of all deaths in India can be attributed
beds for every 1,000 people, indicating to these NCDs and 27% of all mortalities
headroom for growth. The hospital market from non-communication illnesses can Policy support
size is expected to increase by USD 132 be attributed to cardiovascular diseases. Under AB-PMJAY, more than 10.74 crores
billion by 2023 from USD 61.8 billion in The increasing ‘cardiac crisis’ in the country families benefitted through the health
2017. insurance scheme covering H5 lakhs
are due to five major factors: bad food
habits (54.4%), hypertension (56.6%), air per family. The scheme enrolled 16,085
Medical tourism pollution (31%), high cholesterol (29.4%) hospitals, including 8,059 private hospitals
and 7,980 public hospitals.
Superior quality healthcare coupled with and tobacco usage, smoking in particular
low treatment costs compared to other (18.9%).
countries is benefiting Indian medical

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