Behind the Scenes: Decoding Leadership in India’s API Industry

A pivotal moment for the API industry occurred in 2020, as the Indian government approved a Rs. 6,940 crore PLI scheme

February 22, 2024

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Last Updated on October 9, 2024 by The Health Master

API Industry

The pharmaceutical landscape in India is witnessing a seismic shift, particularly in the active pharmaceutical ingredients industry (API industry).

WalkWater Talent Advisors, in their groundbreaking survey titled ‘India’s API industry manufacturing leadership talent,’ have uncovered a pressing concern – a substantial gap between the demand and supply of leadership talent.

Let’s delve into the intricacies of this evolving scenario and explore the factors contributing to this paradigm shift.

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The Current API Industry Landscape

India, a global hub for API manufacturing, boasted a market size of US$ 12.59 billion in 2022. Astoundingly, projections indicate a surge to US$ 18.76 billion by 2028, reflecting the industry’s exponential growth.

With over 500 different APIs manufactured, the sector is a beacon of economic promise.

Leadership Hiring Dynamics

WalkWater’s survey underscores the dynamic nature of leadership hiring within the API industry.

Factors such as talent churn, an ageing leadership demographic, and increased compensation are shaping the industry’s talent landscape.

Rahul Shah, co-founder & director of WalkWater Talent Advisors, emphasizes the sector’s potential, stating, “India being the third-largest API producer showcases the immense potential of this sector.”

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Government Initiatives and Industry Dynamics

A pivotal moment for the API industry occurred in 2020, as the Indian government approved a Rs. 6,940 crore production-linked incentive (PLI) scheme.

This aimed to stimulate domestic manufacturing of key starting materials (KSMs), drug intermediaries (DIs), and APIs, especially crucial in the wake of the Covid-19 pandemic.

The report highlights India’s emergence as an alternative source of bulk drugs, driven by growing tensions between the West and China.

Talent Crunch: A Cause for Concern

Despite the burgeoning demand for senior leadership talent, WalkWater’s study reveals a concerning trend – a diminishing availability of such talent.

The attrition rate stands at a staggering 40%, indicating that a significant number of senior leadership talents have opted for a change in the last three years.

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Addressing Diversity and Talent Management

The survey identifies a lack of diversity in talent across leadership levels in manufacturing functions across 51 different companies.

WalkWater Talent Advisors recognize this as a critical issue and plan to address talent management holistically.

Industry leaders and key opinion persons are encouraged to use the report as a starting point for discussions, fostering a more inclusive approach to talent growth.

Geographic Talent Clusters

India’s API industry sees three emerging geographic talent clusters – Andhra Pradesh + Telangana, Maharashtra, and Gujarat.

These clusters collectively account for over 82% of the available leadership talent in manufacturing.

Qualifications and Expertise in API Leadership

While a pharmacy qualification is mandated, the technical nature of API manufacturing roles demands specialized expertise.

The report indicates that 95% of the leadership talent pool comprises chemical engineers and chemistry graduates.

Notably, 41% of this talent pool holds full-time masters/doctorates, emphasizing the need for advanced knowledge in the sector.

Government Support and Industry Expansion

The API industry receives significant encouragement from the government, manifesting in both greenfield and brownfield expansions.

This expansion, in turn, creates a demand for additional workforce, further influencing the talent landscape.

Disclaimer: This article contains information derived from the source mentioned below. Our team utilized an AI language model to rewrite and present the news or article in a unique format.