Mergers and Acquisitions in Pharmaceutical Sector in India Part 3: Master Thesis

Thanks and regards Yours Sincerely Chapter 1: Introduction 5 1.0 of the study 5 1.1Research Aim, Objectives and Questions 6 1.2 Problem Statement 7 1.3 Rationale 7 Research Structure 10 1.4 Summary 10 Chapter 2: Literature review 11 2.1 Overview of acquisition and merger 11 2.2 M&A Strategy 14 2.3 Benefits of mergers and acquisitions in the Pharmaceutical sectors of India 15 2.4 Impact of mergers and acquisition on performance 18 Chapter 3: Research Methodology 19 3.1 Introduction 19 3.2 Method Outline 19 3.4 Research Philosophy 20 3.5 Research Approach

Running head: MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
Mergers and acquisitions in Pharmaceutical sector in India
Part 3: Master Thesis
Name of the Student:
Name of the University:
Author note:

1MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
Abstract
A merger and acquisition is referred as arrangement whereby assets, liabilities as well as
business of two organization become vested in or controlled by one of the particular
organization. In recent past years, it has been witnessed that an entire host of mergers and
acquisitions by Indian Pharmaceutical organizations. The organizations do not only cater to
domestic market. However, it exports the products overseas. There are several reasons that may
be attributed to the expanded Mergers and Acquisition activity by Indian Pharmaceutical
Organizations. Present study deals with the impact of merger and acquisition on Pharmaceutical
sector in India. A research has been conducted where aims and objectives are set. In this regard,
a comprehensive literature review has been organization where data from secondary sources like
books, journals and articles are gathered and analyzed. In third chapter of the research, research
methodology and its tools are described. Appropriate methodological tools are selected that were
helpful for proper conduction of the research. On the other hand, chapter 4 discusses regarding
the primary data gathered from online survey. It is helpful to get proper outcome and lead to
make an appropriate conclusion and recommendations for the research.

2MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
Acknowledgement
I have gathered a great knowledge and experience by conducting this research. Conduction of the
research has helped me to improve my knowledge regarding Mergers and acquisitions in
Pharmaceutical sector in India. I have gained great help from my supervisors while conducting
this research and therefore, I would like to thank my supervisor .................................... for
guiding me throughout the research. I would also like to thank my friends and family members
for supporting me in this difficult phase. I would also like to thank the participants of data
collection process as without their participation I might not be able to complete this research
with best outcome.
Thanks and regards
Yours Sincerely

3MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
Table of Contents
Chapter 1: Introduction........................................................................................................5
1.0Background of the study.............................................................................................5
1.1Research Aim, Objectives and Questions...................................................................6
1.2 Problem Statement.....................................................................................................7
1.3 Rationale....................................................................................................................7
Research Structure.........................................................................................................10
1.4 Summary..................................................................................................................10
Chapter 2: Literature review..............................................................................................11
2.1 Overview of acquisition and merger........................................................................11
2.2 M&A Strategy.........................................................................................................14
2.3 Benefits of mergers and acquisitions in the Pharmaceutical sectors of India..........15
2.4 Impact of mergers and acquisition on performance................................................18
Chapter 3: Research Methodology....................................................................................19
3.1 Introduction..............................................................................................................19
3.2 Method Outline........................................................................................................19
3.4 Research Philosophy................................................................................................20
3.5 Research Approach..................................................................................................20
3.6 Research Design......................................................................................................21
3.7 Data collection process............................................................................................22
3.8 Population and Sample............................................................................................22
3.9 Sampling system......................................................................................................22
3.10 Sample Size...........................................................................................................23
3.11 Ethical Consideration.............................................................................................23
3.12 Research limitation................................................................................................24

4MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
3.13 Research timeline...................................................................................................24
Chapter 4: Data analysis and findings...............................................................................25
4.1 Preface.....................................................................................................................25
4.2 Quantitative analysis................................................................................................25
4.3 Summary..................................................................................................................44
Chapter 5: Conclusion and Recommendations..................................................................45
5.0 Conclusion...............................................................................................................45
5.1 Recommendations....................................................................................................46
5.2 Future work..............................................................................................................46
References..........................................................................................................................48
Appendices....................................................................................................................53
Appendix 1.....................................................................................................................53
Appendix 2.....................................................................................................................55

5MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
List of tables
Table 1: Size-wise Classification of Mergers................................................................................12
Table 4.1: Period for associated with the industry........................................................................29
Table 4.2: Impact of merger and acquisition on Indian Pharmaceutical sector.............................30
Table 4.3: The key characteristics of Indian Pharmaceutical Industry..........................................32
Table 4.4: Lack of resources as a reason for merger and acquisition............................................33
Table 4:5: The major challenges faced by Indian Pharmaceutical companies..............................35
Table 4.6: Mergers and acquisition Sector has a great impact on current economy.....................37
Table 4.7: Tax concession, responsible for merger and acquisition of Indian Pharmaceutical
Sector.............................................................................................................................................38
Table 4.8: Impact of DaiiChi-Ranbaxy Acquisition Deal and Abott-Piramal Acquisition Deal on
overall Indian Pharmaceutical Sector............................................................................................40
Table 4.9: Impact of FDI policy on Pharmaceutical sector...........................................................41
Table 4.10: Increasing investment on health sector helpful to improve Indian Pharmaceutical
sector..............................................................................................................................................43
Table 4.11: Government has an important role on development of Indian Pharmaceutical sector
.......................................................................................................................................................44
Table 4.12: Measures for development of Indian Pharmaceutical Sector.....................................46

6MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
List of figures
Figure 1: Mergers and Acquisitions in Indian Pharmaceutical Industry for the Period of 2001-
2010...............................................................................................................................................11
Figure 2: Research Structure.........................................................................................................13
Figure 2: Merger and acquisition stakeholders..............................................................................15
Figure 3: Mergers and acquisitions................................................................................................16
Figure 3: Advantages of Mergers..................................................................................................20
Figure 4.1: Period for associated with the industry.......................................................................29
Figure 4.2: Impact of merger and acquisition on Indian Pharmaceutical sector...........................30
Figure 4.3: The key characteristics of Indian Pharmaceutical Industry........................................32
Figure 4.4: Lack of resources as a reason for merger and acquisition..........................................34
Figure 4:5: The major challenges faced by Indian Pharmaceutical companies.............................35
Figure 4.6: Mergers and acquisition Sector has a great impact on current economy....................37
Figure 4.7: Tax concession, responsible for merger and acquisition of Indian Pharmaceutical
Sector.............................................................................................................................................38
Figure 4.8: Impact of DaiiChi-Ranbaxy Acquisition Deal and Abott-Piramal Acquisition Deal on
overall Indian Pharmaceutical Sector............................................................................................40
Figure 4.9: Impact of FDI policy on Pharmaceutical sector..........................................................41
Figurer 4.10: Increasing investment on health sector helpful to improve Indian Pharmaceutical
sector..............................................................................................................................................43
Figure 4.11: Government has an important role on development of Indian Pharmaceutical sector
.......................................................................................................................................................44
Figure 4.12: Measures for development of Indian Pharmaceutical Sector....................................46

7MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
Chapter 1: Introduction
1.0 Background of the study
Pharmaceutical industry has been a growing sector in India. India stands at thirteenth
position on the planet in respect to the Pharmaceutical products. The corporate sector in India has
been restructuring its operations method in the market (Brueller, Carmeli and Markman 2016).
Various strategies are being followed in order to initialize globalization in India. Government
policies in India have been supporting the Pharmaceutical companies in the market. The Indian
market has seen various merger and acquisition in the Indian Pharmaceutical companies. The
present study focuses on the impact of the merger and acquisition in Pharmaceutical companies
in India. However, most of the M&A deals are motivated in order to gain financial stability on
the market. This have helped in gaining power in the market by gaining market share (Holburn
and Vanden Bergh 2014). The current globalized scenario has several high-tech industries that
have focused on the research and development wing in their companies. Innovation in the sector
has been a key factor in the development of Pharmaceutical industry. The shift in industrial
policy in 1991 has paved the way in order to make changes in the concept of merger and
acquisition. The Competition Policy Act 2002 have decided to implement Competition
Commission of India (CCI) (Greve and Zhang 2017). This commission focuses on investigating
anti-competitive activities including collusive bidding, consolidation and cartels.
However, economic reforms in India have significantly able to reduce its firm level
rigidities. The corporate sector in the Pharmaceutical industry have affected with merger and
acquisition with other companies. The big companies have maintained the competitive
advantages in the market. Therefore, domestic firms are taking steps to collaborate with the each

8MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
other and provide a competitive challenge to the market. However, this study describes about the
behavior of the Pharmaceutical companies after implementation of the merger and acquisition
concept (Tanriverdi and Uysal 2015). The profitability of the Pharmaceutical coma y has been
dependent on the R&D facility in the company. Companies used to spend more in the R&D
department for creating quality products in the company. Therefore, the best 1.25% organization
controls 70% for the market share in India. Therefore, this shows that minimal companies have
tried to capture the market.
The market scenario has been specifying that the bid companies are able ti retain in the
market by capturing all the small companies in the Pharmaceutical sector (Dunlap et al. 2016).
The pharmaceutically part is right now open for 100 percent Foreign Direct Investments (FDI) in
both Greenfield and Brownfield ventures. Greenfield speculations are under the programmed
course of Department of Industrial Policy and Promotion (DIPP).The endorsement policy of
different companies creates challenges for implementation of merger and acquisition. One of the
essential reasons brought up by industry is the complex and tedious endorsement administration
for Greenfield Pharmaceutical venture, which now and again takes up to 3-5 years and around 30
service endorsements (Dierks, Bruyère and Reginster 2017). However, the opening of drug store
segment for FDI has been coordinating capital with Indian Pharmaceutical for remote areas.
1.1Research Aim, Objectives and Questions
The aim of the research is to analyze the role of merger and acquisition on
Pharmaceutical sector in India.
The objectives of the research are as followed.

9MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
 To critically analyze the impact of merger and acquisition in Indian
Pharmaceutical sector
 To find out the issues and challenges involved in Indian Pharmaceutical sector
 To recommend solutions for overcoming the challenges
The research questions are as follows:
 What is the impact of merger and acquisition in Indian Pharmaceutical sector?
 What are the issues and challenges involved in Indian Pharmaceutical sector?
 How challenges can be overcome?
1.2 Problem Statement
There are approximately 20,000 units in the Pharmaceutical sectors in India. However,
major 250 companies are ruling over 70% of the market share of India. Merger and acquisition
enables organization to maintain the balance between profit and loss of new items. The R&D
sector of the companies is not getting enough funds for conducting research on several medical
concepts. Indian organizations are anticipating various increment in plan for raising funds from
the market to develop the company. However, the merger and acquisition in Pharmaceutical
companies have affected the business of the companies in the market. The impact in the market
if the Pharmaceutical Company has been described in this study.
1.3 Rationale
The technical classification of firms in the market has been maintained in order to
provide better scope to the companies. Ownership wise classification has been providing
dominating role in the market. The merger concept in the market has been profligates by the
small companies of the industry. The bug companies are able to retain the market growth. This

10MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
have created a major problem for small companies (Zhang et al. 2015). The domestic sector
companies are not able to grow in the market due to the liberalization of the big companies in the
market.
Figure 1: Mergers and Acquisitions in Indian Pharmaceutical Industry for the
Period of 2001-2010
(Source: Grigoriou and Rothaermel 2017, pp. 403)
In recent scenarios, the small companies are merging with other companies for retaining
in the market. This have caused a major loss to the ownership of the companies Therefore, this
creates ate risk of failure in the market (Sahu et al. 2017). The use of different strategies in the
market requires proper research and development department. However, duet low financial
condition of the company, they are not able to manage funds for the research and development
purposes. In order to merge and acquire other companies in the market the strategic alliances can
be treated as a major factor to the integration of production and marketing. The use of different
legal obligations and laws are interestingly integrated in the operations of the company. The use
if the merger and acquisition factors in the small companies have helped in retaining the

11MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
companies in the market with the big companies. Therefore, these companies play an important
role in maintaining the development of the company.
Size Merging Merged
No. Percent No. Percent
Large (> 1000 million) 28 59.57 1 3.57
Medium (10-1000 million) 18 38.3 27 96.43
Small (< 10 million) 1 2.13 0 0
Total Available 47 100 28 100
Table 1: Size-wise Classification of Mergers
(Source:Wang, Plump and Ringel 2015)
This study focuses on the critical analysis of factors that are responsible for the merger
and acquisition in the Pharmaceutical companies. The research describes about the cause of the
implementation of the merger and acquisition concept. The challenges in implementation of the
M&A concept on the Pharmaceutical have been discussed in the study. There are
recommendations provided in the study based on the analysis of the whole topic.

12MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
1.4 Research Structure
Figure 2: Research Structure
(Source: Created by author)
1.5 Summary
This can be summarized that the basic concept of merger and acquisition in the
Pharmaceutical industry has been described. The drastic changes in the Pharmaceutical industry
have been shown in the study. The aim and objectives of the research has been initiated in the
chapter.
Chapter 1: Introduction
Chapter 2: Literature Review
Chapter 3: Methodology
Chapter 4: Findings and Analysis
Chapter 5: Conclusion and Recommendations

13MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
Chapter 2: Literature review
2.1 Overview of acquisition and merger
This research paper discusses about the need for acquisition and mergers in
Pharmaceutical companies. In case of a merger, two different companies are combined resulting
in the formation of one single company with added benefits. Similarly, in case of acquisitions,
one company purchases the business functions of another company resulting in the branching of
one company. As commented by Brueller, Carmeli and Markman (2016), the major difference
between the two is that no new company is formed due to acquisitions while in mergers, a new
company with added benefits is formed. Moreover, the utilization of mergers and acquisition is
mainly involved with management, corporate finance and strategies that results in the formation
of new corporate structure of a company for the formation of new business. However, the name
of the new company changes for corresponding to the merger or acquisition between two
different companies. In case of the acquisition of one company by another, a smaller company is
generally absorbed where they are usually considered as a subsidiary office. As stated by Bena
and Li (2014), when a larger company considers a smaller company for acquisitioning, the
smaller company is usually considered as a target and its business structures are considered.

14MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
Figure 2: Merger and acquisition stakeholders
(Source: Created by the author)
As commented by Mehta, Farooqui and Selvaraj (2017), in case of forming mergers or
acquisition between two different Pharmaceutical companies, the complimentary abilities
between them are considered before making the occurrence of the program. For example, a
biotechnological company may develop efficient drugs but lack the marketing capabilities
required. On the other hand, another company with marketing promotions and no product can
apply for merger with the biotechnological company for creating a merger company leading to
efficient development center along with marketing capabilities. This scenario can be termed as
the occurrence of mergers which is entirely different from an acquisition. Another example of a
scenario is that one large company with efficient Pharmaceutical products having problem due to
the presence of a gap in the company pipeline may target a small branch company for utilizing
their services leading to acquisition of the branch company for subsidies. As suggested by
Products
Brands
People
Culture

15MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
Banerjee (2017), the difference between a merger and an acquisition program has been forgotten
due to the fact of its increasing use and the outcome of the finances and economy faced.
However, the use of merger and acquisition can result in the formation of financial and economic
consolidation among two different entities.
Figure 3: Mergers and acquisitions
(Source: Created by the author)
It is evident that the utilization of mergers and acquisitions is only adopted for solving the
deficiency of any problem. In a similar manner, large Pharmaceutical companies utilize the
acquisition of small companies for utilizing their resources or expanding their territorial grasps.
As commented by Lebedev et al. (2015), this also helps in the increase of research and
Mergers
and
acquisition
Analyzing the
client
requiremnts
Generating ideas
Identification of
partners
DocumentationDiligence
Support
management
Negotiations

16MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
developmental activities that in turn leads to the formation of a stronger company. In addition,
the smaller companies that get acquisitioned by the large companies enjoy their work by getting
added revenue from the large companies. As stated by Dey (2015), according to merger and
acquisition requirements, there are four different aspects, which can be utilized in the adoption of
these programs. The first type is the “Buy growth companies” which is mainly involved with the
growth in sales prescriptions. The next type is the “Buy scale companies” which involves
increasing the research and development or company pipeline process. The third type of
integration is the “Multi M&A companies” which can employ both of the strategies involved.
Lastly, the “Organic growth companies” are not involved with any M&A strategies for their core
activities.
2.2 M&A Strategy
A company needs to have their own policy regarding mergers and acquisitions. This is
done by evaluating the strategies that can then be used for adoption. This policy must be related
to the vision and aims of the company. As per the view of Joshi and Panigrahi (2015), if a
company undertakes the decision of merging or acquisitioning another company, the first step
involved is the development of a merger and acquisition cell. The objectives of this step are to
find out the potential companies who would accept their policies of merger and acquisition
regarding the needs of their business. In addition, this step has to be further followed by financial
service experts, bankers, lawyers and technical experts. As per the view of Ellis et al. (2015),
moreover, for effective decision making process, the need to have access with the leaders of the
company involved is a necessity. This will help in the company to undertake their business
decisions in an effective and efficient way. Furthermore, the utilization of commercial software

17MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
which can help in setting up the financial transactions effectively must also be adopted which
will also help in setting up of the business process.
The next step involved is the negotiating terms between the two companies. This involves
setting up of rules and guidelines by both the companies that must be abided by both parties. In
case, either party does not abide the policies, then a hostile take-over is adopted. As commented
by Athukorala and Veeramani (2017), in this process, the shares of the target company are
brought quietly from third party sources that will result in the target company losing their shares
and getting acquisitioned by the superior company. The whole process of hostile take-over is
done in a very confidential manner so that information is not leaked to the outside media before
acquisitioning. Due to the increase in the number of acquisition rate by a company, the need to
identify the stakeholder interest is required. It is the responsibility of the company to understand
the requirements of the associated stakeholders such that it can be applied for the advantage of
the program. As mentioned by Moeller and Brady (2014), in addition, the retention of the
company policies are adopted at the time the merger or acquisition helps in safeguarding each
company’s resources.
2.3 Benefits of mergers and acquisitions in the Pharmaceutical sectors of India
The economy created due to the exploitation and combination of resources among the
companies involved will help in the formation of structural economies. As discussed by Mishra
and Jaiswal (2017), the Pharmaceutical sector of India comprises of more than 250 companies,
which occupies 70% of the total market acquisition. Out of these statistics, the top
Pharmaceutical firm that presents demand for products in the market maintains 30% of the total
acquisition. In addition, 75% of product demands are met by manufacturing the products from
local authorities. For increasing their global reach by the companies, the need for merger and

18MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
acquisition are then adopted. The decision for acquiring or merging is adopted mainly for
increasing the value of the products. As stated by Gautam and Pan (2016), this gives the
managers and the company head to evaluate their need for valuation that must also be addressed
by the program. The utilization of acquisition or merger is based on the utilization of two
different aspects, cost savings and increased revenue. It is evident that the utilization of mergers
and acquisitions is only adopted for solving the deficiency of any problem. The large
multinational and the smaller companies to utilize the market distribution by the local drug
companies are also utilizing this. A company needs to have their own policy regarding mergers
and acquisitions. This is done by evaluating the strategies that can then be used for adoption. As
the government of India is adopting the allocation of effective drug uses to the population, the
need for analyzing the market is a necessity. As mentioned by Parikh (2016), furthermore, the
government of India is also considering the need for innovative Pharmaceutical products in the
market to be used by the local population mainly because of the adoption of western lifestyle
who are demanding the innovations of western drugs. This presents a reason for the large and
regional companies to merge with the local ones to utilize the market expansion in such a way so
as to increase the revenue made.

19MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
Figure 3: Advantages of Mergers
(Source: Parikh, 2016)
Another benefit is the increase in the number of products shared. A Pharmaceutical
company is based on the utilization of its research and development center that is the main cause
for the investment in the market. As stated by Haucap and Stiebale (2016), the size of the center
in a company determines the products output and the size of the investment. Similar to the
utilization of the marketing department, the R&D center is utilized for getting the market inputs.
Merging or acquisitioning another company can lead to the increase in the required space, which
in turn will lead to the increase in the number of products that are being offered. This result in
the increase of market share acquisition by the company involved. As commented by Ahammad
et al. (2016), market share is determined by the gross turnover rate and the influence of the
company in the market in comparison to other Pharmaceutical companies. This is mainly
considered due to acquisitioning or merging with another company that helps in acquiring own

20MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
market share. This is another benefit of M&A programs. However, if the turnover rate of the
competitor companies is also increased with respect to the company concerned, then there is no
increase in the equity expansion. As per the view of Bouet (2015), additionally, it has been noted
that the merger of companies results in a significant increase in the equity shares of the company.
Lastly, the increase in efficiency is another benefit that is enjoyed due to the adoption of
mergers or acquisitions. This results in the merger of corporate assets as well, which is also
responsible for increasing the benefits of the process. This also helps in the reduction of the
production cost and increase the output attained due to it. As stated by Lee (2016), this also helps
in increasing the quality of the product and helps in making innovative products in the market. In
addition, the benefits due to M&A involve increasing the managerial and operation efficiencies.
Furthermore, the increase in the profit margin is another advantage which is acquired mainly due
to the process of merger and acquisition. Several mergers or acquisitions can occur where
dissimilar earning system is present. The presence of variations among the finances results in the
formation of lesser profitability variations. As mentioned by Brueller, Carmeli and Markman
(2016), this also helps in increasing the taxation benefits. As legal frameworks always govern the
companies, the merger or acquisition can increase the benefits enjoyed.
2.4 Impact of mergers and acquisition on performance
Due to the adoption of acquisition and mergers, there are various impacts that are to be
considered before adopting these programs. The utilization of mergers and acquisitions are
adopted for changing the performance in two different ways. One of the ways includes increase
in the scale factor, which will lead to the increase in the productivity of the merged firms which
in turn will lead to the increase in the performance of the concerned firms. As per the view of
Mehta, Farooqui and Selvaraj (2017), in addition, the utilization of the mergers and acquisition

21MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
also results in the allotment of financial powers that will lead to an increase in the product prices
in the market which in turn will lead to increase of revenue. However, if the merger occurs
between firms who are at a loss, then the profitability may decrease due to the absence of
financial resources. Moreover, if the market is considered to be less resourceful, then the market
share of the company decreases which in turn leads to the reduction in profitability.

22MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
Chapter 3: Research Methodology
3.1 Introduction
Research methodology is the area of research that involves specific objectives that must
be achieved for successful completion of the study. Research methodology helps to know the
process following which the research methodology investigation can be carried out. In the
present case scenario, the research strategies are helpful to analyze the influence of acquisitions
and mergers in Pharmaceutical industry based in India. The research strategies help to know the
errors and the mistakes (Cespi et al. 2015). The researchers try to imply point-by-point technique
of research. The research approach is helpful to know the influence of acquisitions and mergers
in Indian Pharmaceutical sector.
3.2 Method Outline
The research system assists in analyzing the impact of acquisitions as well as mergers in Indian
Pharmaceutical industry. The research philosophy that has been chosen for the research study is
the positivism. The positivism approach helps to accumulate data appropriately. The data is
helpful for further assessment. The deductive method enables the analysts for researching the
light of secondary sources (Marinakos and Daskalaki 2016). The audit is useful to acknowledge
the influence of acquisitions and mergers in the Pharmaceutical sectors in India. Elucidating
methodology is helpful to conduct the research keeping in mind the primary objective of the
research study.

23MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
3.4 Research Philosophy
In the exploration technique, the research philosophy helps to find out the best possible route.
The route is helpful to know the points of interests of the research theme.
Positivism: Positivism approach is helpful in knowing the best method related to the influence of
acquisitions and mergers in Indian Pharmaceutical sector (Weraikat, Zanjani and Lehoux 2016).
Realism: Realism relies upon ideas of independence of the reality from the human mind.
Realism deals with the assumption of the scientific approach towards knowledge development.
Interpretivism: research philosophy is vital for carrying out the analysis. Secondary data
collection is quite known or popular with the research philosophy.
Justification: Interpretivism has been chosen as the research approach for this study. The entire
research is conducted on secondary data collection. The preferred method is the best, as it will
give an overview of the influence of acquisition and mergers in Indian Pharmaceutical sector
located in India.
3.5 Research Approach
There are two types of research approach. The study explains the inductive method and the
deductive approach.
Inductive approach: The inductive method utilizes a series of questions. The research questions
are helpful to know the possibility of the study (Roy and Beera 2016). It is connected with
related to qualitative research.

24MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
Deductive approach: The deductive approach deals with a hypothesis and the deductive method
is somewhat related to quantitative research.
Justification: The deductive approach has been used in the study. The deductive method is
justified, and by using this research technique, the analyst knows the influence of acquisitions
and mergers in Indian Pharmaceutical sector.
3.6 Research Design
The research design outlines what the analyst is going to conduct the hypothesis. The research
study explains the three types of research design, and they are as follows-
Exploratory: The research design is used for the preparation of the research problems.
Exploratory provide in-depth investigation and development of a working hypothesis (Shabbir
2014). The entire research design is made smooth and flexible so that it can provide an
opportunity to meet the objective of the study.
Explanatory: The research study tries to find out the explanations for carrying out the research
study.
Descriptive: The research design describes the characteristics of an individual. The research
design provides provision to protect the data against the bias. The research design also
maximizes the reliability to accomplish the research study work, and this approach is beneficial
to carry out the business in a profitable manner.

25MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
Justification: For the particular research study, the descriptive research study is utilised. The
research design allows gaining information on the characteristics of a specific individual to
conduct the critical project work. Varied project factors are followed through utilisation of the
particular research design.
3.7 Data collection process
Data Collection Procedure: There are two types of data collection procedures- one is the
qualitative or quantitative. The quantitative approach is associated with the collection of data.
The analysts with the aid of qualitative research approach conduct in-depth analysis on the
research topic (Mulero Mendigorri, Garcia Valderrama and Rodriguez Cornejo 2016). The
analysts conduct the survey. In this study, the data are analysed using the qualitative data
collection procedure, and in this way, the influence of acquisitions and mergers in Indian
Pharmaceutical sector can be known.
Data Collection Techniques: The data collection techniques used in the research study are
primary as well as secondary. The primary data are accumulated from such sources and it assures
the reliability of the data. The data is collected with the aid of survey. Secondary data are
accumulated from the research articles and the Pharmaceutical s sectors.
3.8 Population and Sample
Population is characterized as the number of individuals. This section defines the number of
participants associated with the research (Shahid et al. 2016). The staffs and the administrators
associated with the research study have been taken into consideration.
3.9 Sampling system

26MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
Sample is collected to assess the impact of acquisitions and mergers in the Pharmaceutical sector
located in India. With the aid of survey, the staffs of the Pharmaceutical sectors have been asked
where online survey is conducted and a review is made based on that. The review depends on
Likert's scale ranging from 1 to 5.
3.10 Sample Size
The sample size is divided into two procedures- quantitative and qualitative research procedure.
35managers of the Pharmaceutical sector have been taken into consideration. Total 35 members
have been considered for this research study.
3.11 Ethical Consideration
The analyst is required to follow the research study. They must discuss the ethical issues that
may arise from the project. The participants may refuse to share the data and thus the survey
result can get affected. Again, the participants can give false data. The wrong data can mislead
the survey (Arslan and Şar 2017). The survey must be conducted in ethical way to make the data
analysis successful. The managers can refuse to share any information with the research team.
There is another ethical issue. The research team will have to keep the data secure and the data
should not get breached at any cost. If the information gets compromised, then the entire
research will get disrupted.

27MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
3.12 Research limitation
The employees and the managers may refuse to share any confidential data of the Pharmaceutical
sectors. The research team will not get the full information and thus the research can get affected
adversely. Any team member can act uneven towards their own team. This can lead to exposition
of sensitive information of the Pharmaceutical sectors. These are all the research limitations.
3.13 Research timeline
(Refer to Appendix 1)

28MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
Chapter 4: Data analysis and findings
4.1 Preface
In this chapter, data gathered from online survey is represented. There are 35 managers
from different Pharmaceutical organization of India described selected for the survey. Simple
random probability sampling technique has been selected for selection of managers. On the other
hand, quantitative data analysis method is followed for analysis of the data, where table and
Microsoft excel have been used for analysis of the data.
4.2 Quantitative analysis
1. How long you are associated with Pharmaceutical sector in India?
Options Response % Respondents Total number of
respondents
1-2 years 17.14% 6 35
3-5 years 25.71% 9 35
6-9 years 22.85% 8 35
10-15 years 20% 7 35
More than 15 years 14.28% 5 35

29MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
Table 4.1: Period for associated with the industry
1-2 years 3-5 years 6-9 years 10-15 years More than 15
years
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
17.14%
25.71%
22.85%
20.00%
14.28%
Period for associated with the
industry
Figure 4.1: Period for associated with the industry
Findings and analysis
Data from above table and chart clearly states that there are 17.14% participants in the
survey are working in the industry from 1 year to 2 years. 25.71% respondents in the survey are
working since 3 years to 5 years. However, 22.85% respondents in the survey are working from
6 years to 9 years. There are 20% respondents in the survey are working in Indian
Pharmaceutical Sector from 10 to 15 years. Nearly, 14.28% participants in the survey are
working in the organization for more than 15 years.
As most of the people are working in the sector for more than 3 to 5 year, it is important
to focus on the development of the sector. The Indian Pharmaceutical industry is highly
fragmented with more than 20,000 registered units. It meets nearly 70% of demands of the
country for bulk drugs, Pharmaceutical formulations and drug intermediates. On the other hand,
mergers and acquisitions are regulated under several laws in India where the objective of the

30MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
laws is development of transparent deals as well as protecting the interest of shareholders.
Hence, it is important to focus on the development in the particular sector.
2. How far you agree that merger and acquisition has a great impact on Indian Pharmaceuticalcy
sector?
Options Response % Respondents Total number of
respondents
Strongly agree 42.85% 15 35
Agree 28.57% 10 35
Neutral 5.71% 2 35
Disagree 8.57% 3 35
Strongly disagree 14.28% 5 35

31MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
Table 4.2: Impact of merger and acquisition on Indian Pharmaceutical sector
Strongly agree Agree Neutral Disagree Strongly
disagree
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
42.85%
28.57%
5.71% 8.57%
14.28%
Impact of merger and acquisition
on Indian pharma sector
Figure 4.2: Impact of merger and acquisition on Indian Pharmaceutical sector
Findings and analysis
Data from above table and chart shows that 42.85% participants out of total number of
respondents in the survey are strongly agreed that merger and acquisition has a great impact on
Indian Pharmaceutical sector. Nearly 28.57% respondents are agreed with the statement.
However, there are 5.71% participants in the survey are neutral on the case. On the other hand,
8.57% participants in the survey are disagreed that merger and acquisition has a great impact on
Indian Pharmaceutical sector, whereas 14.28% respondents are strongly disagreed with the
statement.
The dream of Indian Pharmaceutical organizations is to make presence globally as well
as competing with the other companies from developed countries such as Europe, Japan as well
as United States become true. However, the new patent regime leads to several multinational
companies, it is important to lead several multinational Pharmaceutical organizations. The Indian

32MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
companies are utilizing revenue produced from generic drug sales in order to promote discovery
projects of drugs as well as new delivery technologies. In addition, contract research in India is
also increasing at 20 to 25% per year. Hence, it is required to revise R&D policies by trying to
boost in domestic Pharmaceutical industry. Tax exemption for a specific period as well as
revealing customs as well as excise duties of the drugs along with materials that are imported for
clinical traits in order to relieve customs and excise duties of all drugs and materials.
3. What is the key characteristic of Indian Pharmaceutical Industry that leads to merger and
acquisition?
Options Response % Respondents Total number of
respondents
Highly
regulated
22.85% 8 35
Not Research
oriented
20% 7 35
Low price
elasticity
14.28% 5 35
Limited
customer choice
28.57% 10 35
Highly
dependent on growth of
health infrastructure
28.57% 10 35

33MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
Table 4.3: The key characteristics of Indian Pharmaceutical Industry
Highly regulated Research oriented Low price elasticity Limited customer
choice Highly dependent
on growth of health
infrastructure
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
23%
20%
14%
29% 29%
The key characteristics of Indian Pharma
Industry
Figure 4.3: The key characteristics of Indian Pharmaceutical Industry
Findings and analysis
In order to understand the key characteristics responsible for merger and acquisition in
Indian Pharmaceutical sector, a survey question is organized. There are 22.85% respondents in
the survey think that highly regulated market is one of the main reasons for merger and
acquisition. However, 20% respondents think that non-research oriented market is the main
cause behind it. Nearly 14.28% respondents out of total number of respondents think that low
price elasticity, 28.57% for limited customer choice, whereas 28.57% participants in online
survey gave their opinion regarding highly dependent on growth of health infrastructure as the
major cause for Indian Pharmaceutical Sector’s merger and acquisition.

34MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
Hence, it is important for the organizations to focus on expanding choice of the
customers that could be helpful to improve the market scenario of pharmaceutically. In addition,
it is important to focus on highly regulated marketplace that could bring competitive advantages
in the market. However, highly dependent on development of health infrastructure would be
helpful for the companies to improve market conditions.
4. How far you agree that lack of resources to compete with MNCs for New Drug Discovery
Research is one of the man cause for merger and acquisition?
Options Response % Respondents Total number of
respondents
Strongly agree 34.28% 12 35
Agree 22.85% 8 35
Neutral 5.71% 2 35
Disagree 22.85% 8 35
Strongly disagree 14.28% 5 35

35MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
Table 4.4: Lack of resources as a reason for merger and acquisition
Strongly agree Agree Neutral Disagree Strongly
disagree
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
34.28%
22.85%
5.71%
22.85%
14.28%
Lack of resources as a reason
for merger and acquisition
Figure 4.4: Lack of resources as a reason for merger and acquisition
Findings and analysis
According to the data from above table and graph represented above shows that nearly
34.28% respondents in the survey are strongly agreed that lack of resources to compete with
MNCs for New Drug Discovery Research is one of the man cause for merger and acquisition. In
addition, 22.85% respondents are agreed with that. On the other hand, 5.71% respondents are
neutral. There are 22.85% respondents are disagreed with the statement. However, 14.28%
respondents are strongly disagreed with that.
As maximum number of people are agreed with that lack of resources is one of the major
reasons for merger and acquisition taken place in Pharmaceuticals sector in India, it is required
for the management of the company to emphasize on increasing resources of the organization so
that the organization can obtain competitive benefits.

36MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
5. What are the major challenges faced by Indian Pharmaceutical companies to compete with
global companies?
Options Response % Respondents Total number of
respondents
Regulatory
obstacles
28.57% 10 35
Lack of suitable
infrastructure
22.85% 8 35
Expensive
research equipment
22.85% 8 35
Lack of
academic collaboration
11.42% 4 35
Current global
economy
14.28% 5 35

37MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
Table 4:5: The major challenges faced by Indian Pharmaceutical companies
Regulatory
obstacles Lack of
suitable
infrastructure
Expensive
research
equipment
Lack of
academic
collaboration
Current global
economy
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
28.57%
22.85% 22.85%
11.42%
14.28%
The major challenges faced by Indian
Pharma companies
Figure 4:5: The major challenges faced by Indian Pharmaceutical companies
Findings and analysis
It is important to find out the major challenges faced by Indian Pharmaceutical
companies to compete with global companies. In this regard, data gathered from table and chart
clearly states that 28.57% respondents think that regulatory obstacles are the major challenge.
However, 22.85% respondents think that lack of suitable infrastructure is the main reason behind
it. Same number of people thinks that expensive research equipment is the major challenge. On
the other hand, 11.42% respondents think that lack if academic collaboration is the major
challenges faced by Indian Pharmaceutical companies to compete with global companies.
Nearly, 14.28% people find it as current global economy.
Regulatory obstacles and lack of suitable infrastructure are the major challenges for the
organizations in order to remain competitive marketplace. Clinical traits in India cost $25
million, whereas in US, it costs between $300-350 million. Indian pharmaceutical companies are

38MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
spending nearly 30 to 50% less on customer synthesis service, which can be compared to global
costs. Merger and acquisition or co-operating deal between the organizations may occur as an
outcome of complementary capabilities. On contrary, a large pharmaceutical organization might
be unused of its capacity in large sales force for having gap in the products of the organization.
In addition, mergers and acquisitions are following strategies that can make geographic
diversification with several organizations concentrating on increasing the presence in regulated
markets.
6. How far you agree that mergers and acquisition in Indian Pharmaceutical Sector has a great
impact on current economy of the country?
Options Response % Respondents Total number of
respondents
Strongly agree 51.42% 18 35
Agree 22.85% 8 35
Neutral 2.85% 1 35
Disagree 14.28% 5 35
Strongly disagree 8.57% 3 35

39MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
Table 4.6: Mergers and acquisition Sector has a great impact on current economy
S t r o n g l y
a g r e e
A g r e e N e u t r a l D i s a g r e e S t r o n g l y
d i s a g r e e
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
51.42%
22.85%
2.85%
14.28%
8.57%
Mergers and acquisition Sector has a
great impact on current economy
Figure 4.6: Mergers and acquisition Sector has a great impact on current economy
Findings and analysis
There are 51.42% respondents out of total number of respondents strongly agreed that mergers
and acquisition in Indian Pharmaceutical Sector has a great impact on current economy of the
country. Moreover, 22.85% respondents are agreed with that. However, 2.85% respondents
remain neutral on the case. However, 14.28% respondents are disagreed with the statement.
There are 8.57% participants are strongly disagreed that mergers and acquisition in Indian
Pharmaceutical Sector has a great impact on current economy of the country.
From the above findings, it can be summarized that mergers and acquisitions have a great impact
on the economy of the country. The trend in current market is very high, whereas size as well as
end-to-end connectivity are considered as main detriments in global marketplace. Changing
therapeutic demands of the country as well as patent laws will give new scopes for big
pharmaceutical sector in order to launch patented molecules. Strong manufacturing base will be

40MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
helpful to stand in global generic organizations in good stead as low-cost development as well as
destination of manufacturing.
7. How far you agree that tax concession is responsible for merger and acquisition of Indian
Pharmaceutical Sector?
Options Response % Respondents Total number of
respondents
Strongly agree 45.74% 16 35
Agree 40% 14 35
Neutral 2.85% 1 35
Disagree 5.71% 2 35
Strongly disagree 5.71% 2 35

41MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
Table 4.7: Tax concession, responsible for merger and acquisition of Indian
Pharmaceutical Sector
Strongly agree Agree Neutral Disagree Strongly
disagree
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
50.00% 46%
40%
3% 6% 6%
Tax concession, responsible for
merger and acquisition of Indian
Pharma Sector
Figure 4.7: Tax concession, responsible for merger and acquisition of Indian
Pharmaceutical Sector
Findings and analysis
The data from above table and graph states that 45.74% respondents out of total number of
respondents are strongly agreed that tax concession is responsible for merger and acquisition of
Indian Pharmaceutical Sector. Nearly 40% respondents are agreed with that. There are 5.71%
respondents are disagreed with the statement, whereas same number of people in the survey are
strongly disagreed that tax concession is responsible for merger and acquisition of Indian
Pharmaceutical Sector.
The Indian organizations are utilizing revenue generated from generic drug sales in order to
promote the research and development based projects. From the discussion, it clearly indicates
that tax concession plays a vital role in Indian Pharmacy Industry. As it is higher in India

42MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
compared to other countries, the government needs to take care of it. Tax concession would be
helpful to attract more number of companies and retain for long time with respective position.
Therefore, proper implement of tax and other laws would be helpful for the pharmacy
companies.
8. How far you agree that DaiiChi-Ranbaxy Acquisition Deal and Abott-Piramal Acquisition
Deal have a great impact on overall Indian Pharmaceutical Sector and its growth?
Options Response % Respondents Total number of
respondents
Strongly agree 28.57% 10 35
Agree 34.28% 12 35
Neutral 14.28% 5 35
Disagree 8.57% 3 35
Strongly disagree 14.28% 5 35

43MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
Table 4.8: Impact of DaiiChi-Ranbaxy Acquisition Deal and Abott-Piramal Acquisition
Deal on overall Indian Pharmaceutical Sector
Strongly agree Agree Neutral Disagree Strongly
disagree
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00% 28.57%
34.28%
14.28%
8.57%
14.28%
Impact of DaiiChi-Ranbaxy Acquisition Deal
and Abott-Piramal Acquisition Deal on
overall Indian Pharma Sector
Figure 4.8: Impact of DaiiChi-Ranbaxy Acquisition Deal and Abott-Piramal
Acquisition Deal on overall Indian Pharmaceutical Sector
Findings and analysis
The data from above table and graph mentions that nearly 28.57% participants in the online
survey are strongly agreed that DaiiChi-Ranbaxy Acquisition Deal and Abott-Piramal
Acquisition Deal have a great impact on overall Indian Pharmaceutical Sector and its growth. In
addition, 34.28% respondents are agreed with that. However, 14.28% participants remain neutral
on the question as they are confused regarding the matter. On contrary, 8.57% respondents out of
total respondents in the survey are disagreed with that. There are 14.28% participants are
strongly disagreed with that.
9. How far you agree that FDI policy in Pharmaceutical sector is the major reason for merger and
acquisition?

44MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
Options Response % Respondents Total number of
respondents
Strongly agree 28.57% 10 35
Agree 42.85% 15 35
Neutral 14.28% 5 35
Disagree 8.57% 3 35
Strongly disagree 5.71% 2 35
Table 4.9: Impact of FDI policy on Pharmaceutical sector
Strongly agree Agree Neutral Disagree Strongly
disagree
28.57%
42.85%
14.28%
8.57% 5.71%
Impact of FDI policy on
pharmaceutical sector
Figure 4.9: Impact of FDI policy on Pharmaceutical sector
Findings and analysis

45MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
The data from the table states that 28.57% participants are strongly agreed that FDI policy in
Pharmaceutical sector is the major reason for merger and acquisition. Moreover, 42.85% are
agreed with the statement. However, there are 14.28% people remained neutral. There are 8.57%
respondents out of total number of participants disagreed. However, nearly 5.71% are strongly
disagreed with the statement.
10. How far you agree that increasing investment on health sector can be helpful to improve
Indian Pharmaceutical sector?
Options Response % Respondents Total number of
respondents
Strongly agree 22.85% 8 35
Agree 20% 7 35
Neutral 14.28% 5 35
Disagree 28.57% 10 35
Strongly disagree 14.28% 5 35

46MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
Table 4.10: Increasing investment on health sector helpful to improve Indian
Pharmaceutical sector
Strongly agree Agree Neutral Disagree Strongly
disagree
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
23%
20%
14%
29%
14%
Increasing investment on health sector
helpful to improve Indian Pharma sector
Figurer 4.10: Increasing investment on health sector helpful to improve Indian
Pharmaceutical sector
Findings and analysis
The table shows that nearly 22.85% participants are strongly agreed that increasing
investment on health sector can be helpful to improve Indian Pharmaceutical sector, whereas
20% participants are agreed with that. However, 14.28% respondents remain neutral on the
matter. Out of total number of respondents disagreed 28.57% participants regarding the matter.
However, 14.28% respondents are disagreed about the specific matter.
11. How far you agree that the Government has an important role on development of Indian
Pharmaceutical sector?
Options Response % Respondents Total number of

47MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
respondents
Strongly agree 34.28% 12 35
Agree 31.42% 11 35
Neutral 5.71% 2 35
Disagree 14.28% 5 35
Strongly disagree 14.28% 5 35
Table 4.11: Government has an important role on development of Indian Pharmaceutical
sector
Strongly agree Agree Neutral Disagree Strongly
disagree
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
34.28% 31.42%
5.71%
14.28% 14.28%
Government has an important role on
development of Indian Pharma sector
Figure 4.11: Government has an important role on development of Indian
Pharmaceutical sector
Findings and analysis

48MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
There are 34.28% participants in the survey are strongly agreed that the Government has an
important role on development of Indian Pharmaceutical sector and 31.42% respondents are
agreed with that. However, 5.71% respondents are neutral. There are 14.28% participants in the
survey are disagreed, whereas same number of people are strongly disagreed with the role of the
Government in development of Indian Pharmaceutical sector.
12. What are the measures can be taken for development of Indian Pharmaceutical Sector?
Options Response % Respondents Total number of
respondents
Obtaining
access to approved
facilities in India
22.85% 8 35
Access to
distribution channels
and obtaining market
presence
25.71% 9 35
Assistance from
governmental agencies
and insurance
companies
14.28% 5 35
Investing money
on research and
development
22.85% 8 35

49MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
Creating
collaboration between
industry circumstances
and academic
curriculum
14.28% 5 35
Table 4.12: Measures for development of Indian Pharmaceutical Sector
0.00%
10.00%
20.00%
30.00% 22.85% 25.71%
14.28%
22.85%
14.28%
Measures for development of Indian Pharma
Sector
Figure 4.12: Measures for development of Indian Pharmaceutical Sector
Findings and analysis
As per the data obtained from table and graph shows that 22.85% think that Obtaining access to
approved facilities in India need to be taken for development of Indian Pharmaceutical Sector.
Nearly 25.71% participants in the survey think that access to the distribution channel as well as
obtaining market presence is one of vital measures. There are 14.28% participants in the survey
said that help from the governmental agencies would be helpful for development. However,

50MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
22.85% respondents think that investing money on research and development of the industry
could be helpful. There are 14.28% managers in the survey sates that creating collaboration
between industry scenario and academic syllabus would be helpful in order to develop Indian
Pharmaceutical Sector.
4.3 Summary
From above discussion, it can be summarized that merger and acquisition in Indian
Pharmaceutical Sector has a great impact on its own business and global market value. On the
other hand, it affected economy of the country. There has been several merger and acquisition
taken place in India. Various reasons have been identified, whereas challenges faced for this
occurrence are discussed in the chapter. In addition, the role of the Government and agencies and
necessary measures are identified that would be helpful for development of Indian
Pharmaceutical Sector.

51MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
Chapter 5: Conclusion and Recommendations
5.0 Conclusion
It can be concluded that the use of merger and acquisition of different companies in the market
have been a successful step in order to retain in the market. The use of the merger and
acquisition technique proposed in the Pharmaceutical companies has been beneficial for the
small companies in the market. The literature review have discussed about thenumber of the
companies dominating in the market According to the analysis, 250 companies are controlling 70
% of the market in the Pharmaceutical sector. Innovation in the sector has been a key factor in
the development of Pharmaceutical industry. The literature review has focused in the
liberalization of merger and acquisition of small companies. However, this can be a big deal for
the companies in order to maintain the productivity of the company in the market.
The present study focuses on the impact of the merger and acquisition in Pharmaceutical
companies in India. However, most of the M&A deals are motivated in order to gain financial
stability on the market. The production of the company is depended on the economic activity of
the company. The determinants of economic activity has been a playing a key role in providing
various services to the customers. The merger and acquisition concept in the Pharmaceutical
companies in India has able to maintain the production of medicines in the market. The market
sector of Pharmaceutical industry has been channelized in recent years. The current study have
finally identified in the factors that has been creating problems in the implementation of merger
and acquisition in Pharmaceutical industry. This has helped in gaining power in the market by
gaining market share. The current globalized scenario has several high-tech industries that have
focused on the research and development wing in their companies.

52MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
5.1 Recommendations
It is recommended that the companies need to implement various strategies in order to retain in
the market.
Staff training: The Company needs to conduct session for training their staffs and employees in
order to enhance their skills and knowledge in the field. The employees are to be motivated for
performing their task in right way. The training session helps in providing confidence in them for
increasing the sales of the company in the market. The use of different techniques and tools
might help in maintaining the development of the company in the market.
Customer Relationship Management: CRM policy of the company has to be made strong and
effective. The relationship with the customer needs to be healthy for the growth of the company
in the market. The CRM team of the company needs to be trained for creating a good binding
with the customers in order to develop the company in the market. The use of various techniques
for maintaining the customer relations in the market need to be implement. The feedbacks of the
customers need to be handle and reverted properly that helps in increasing satisfaction level of
the customer in the market.
Organizational policy: The organizational policy needs to be changed in order to maintain the
change in the market related to the Pharmaceutical companies. The organizational structure has
to be changed according to the change in the market. This might help in surviving in the market
for the company.
5.2 Future work
The current study has focused on the impact of the merger and acquisition of companies in the
Pharmaceutical companies in India. The Pharmaceutical Company in India has been facing

53MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
problems that have been discussed in the study. Therefore, the future work might focus on
implementation of other strategies for the development of the Pharmaceutical industry in India.
Development of new theories and models related to the topic might be discovered for gaining
extra knowledge related to the topic.

54MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
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59MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
Appendices
Appendix 1
Main
activities
1st
week
6
th week
12t
h week
18t
h week
2
0th week
2
4th week
Topic
selection
❖
Reviewing
literature
❖
Developing
Research
methodology
❖
Collection
of primary data
(online survey)
❖
Analysis and
interpretation of
data
❖
Findings ❖
Conclusion
and
❖

60MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
Recommendation
Final
submission
❖

61MERGERS & ACQUISITIONS IN PHARMACEUTICAL SECTOR IN INDIA
Appendix 2
Survey questionnaire
1. How long you are associated with Pharmaceutical sector in India?
Options
1-2 years
3-5 years
6-9 years
10-15 years
More than 15 years
2. How far you agree that merger and acquisition has a great impact on Indian Pharmaceutical
sector?
Options
Strongly agree
Agree
Neutral
Disagree
Strongly disagree