In the last blog, we did a comprehensive SWOT Analysis of PharmEasy – One of India’s Largest Healthcare and Medicine Delivery Platforms. This time, we are dealing with the SWOT Analysis of Nectar Lifesciences – a research-driven, top manufacturer of active pharmaceutical ingredients.
This case study will help you gain a deeper perception of Nectar Nectar Lifesciences’s transformation from a small home-grown API manufacturer to being listed on “Fortune Next 500” 2017, with commercial enterprises established in nearly forty-five international locations.
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What can you expect from this blog? We have covered the strengths, weaknesses, opportunities, and threats that affect Nectar Nectar Lifesciences Ltd. Before we get to that, let us get to know the company, its history, products, services, and financial success.
About Nectar Lifesciences
Nectar Lifesciences Ltd (NLL) is a corporation that represents a crucial part of the rapidly-growing Indian pharmaceutical industry. Headquartered in Chandigarh, India, Nectar Lifesciences Ltd deals in the manufacturing of oral and sterile active pharmaceutical ingredients, finished dosages, and phytochemicals.
The company began its operations in June 1995. It is headed by Mr Sanjiv Goyal, its founder, and was publicly listed in July 2005. It is listed on NSE as well as BSE. NLL has a strong base of 11 State of Art manufacturing facilities spanning from Punjab to Himachal Pradesh. It has also ranked in the top 40 pioneers in the Bio-Pharmaceutical industry in Asia-Pacific Region as per “Biospectrum Asia Pacific” 2016.
In API & Formulation business, NLL currently has a stronghold in almost 45 countries of the world. The company’s 11 states of art manufacturing facilities are spread across the States of Punjab and Himachal Pradesh.
|Founder||Mr Sanjiv Goyal|
|No. of Employees||2,200+|
|Market Cap||Rs551.68 Crore (2022)|
|Annual Revenue||US$213.04 Million (2018)|
|Net Income/ Profit||Rs105 Crores (2021)|
Products & Services by Nectar Lifesciences
Nectar Lifesciences Ltd primarily deals in pharmaceutical products. These are the goods it manufactures:
- Oral and sterile active pharmaceutical drugs
- Empty hard gelatin capsules
- Contract research/manufacturing services.
Competitors of Nectar Lifesciences
There has been a stark increase in competition recently in the bio-pharmacy industry. These are current competitors for Nectar Lifesciences Ltd:
- Aarey Drugs & Pharmaceuticals Ltd.
- Aarti Drugs Ltd.
- Aarti Industries Ltd.
- Aayush Food & Herbs Ltd.
- Adeline Chem Lab Ltd.
- Advik Laboratories Ltd.
As we are clear about the foundations of Nectar Lifesciences, let’s move on to the SWOT analysis of Nectar Lifesciences.
SWOT Analysis of Nectar Lifesciences
SWOT stands for strength, weaknesses, opportunities and threats which is an analytical technique used for assessing your business in the four aspects. SWOT analysis is simple to analyse and determine what is best for the company at present as well as to formulate a successful strategy for the future. Accordingly, the SWOT analysis of Nectar Lifesciences is carried out.
To better understand the SWOT analysis of Nectar Lifesciences, refer to the infographics image below.
Let’s first start by analysing the strength of Nectar Lifesciences from the SWOT analysis of Nectar Lifesciences.
Strengths of Nectar Lifesciences
Strengths are defined as what each business does or has best in itself. Following are the strengths of Nectar Lifesciences Ltd
- Faster Growth: Nectar Lifesciences has seen faster growth within 35 years. It started as a small home-grown API manufacturer and today it is a developed pharmaceutical company with business in almost 45 countries of the world.
- Generic Drug Products: Nectar Lifesciences Ltd comes up with comprehensive generic drug products including several oral and sterile cephalosporin antibiotics medicines. This helps companies serve different customer segments in the biotechnology and pharmaceutical industries.
- Strong Brand Value: Nectar Lifesciences Ltd products boast strong brand awareness in the biotechnology and pharmaceutical industries. This allowed the company to charge a higher price compared to its competitors, increasing the profit margin.
- Innovation Success: While most healthcare players strive for innovation, Nectar Lifesciences Ltd has a proven track record of being a consumer-led and reliable CMO to global pharma innovators.
- Market Leader: Nectar Lifesciences Ltd emerged as India’s leading mid-sized pharmaceutical company and has established itself as a strong market leader in the biotechnology and pharmaceutical industries. This helped the company quickly expand the success of its products including Cefixime, Cefuroxime Axetil Amorphous, Cefuroxime Axetil Crystalline, Cefotaxime Sodium, Ceftriaxone Sodium and more.
- Talent Acquisition: Nectar Lifesciences Ltd’s human resources management and employee skill development programs are an integral part of Nectar Lifesciences Ltd’s success in the biotechnology and pharmaceutical industries.
- CSR Activities: Nectar Lifesciences did lots of CSR activities in the course of the journey. Aster DM volunteer group has created a very positive impact on the lives of over a million people including a variety of projects in the areas of community development & support, medical & wellness, international aid, disaster recovery, women empowerment, and disabled community empowerment. These initiatives have given Nectar Lifesciences a positive image in the market and subsidies from the government.
- Focus on Strategy: Nectar Lifesciences was established with the ambition to provide first-class healthcare services and make pharmaceutical products available to people at reasonable prices and still the company continues to work on its vision.
Weaknesses of Nectar Lifesciences
Nectar Lifesciences should focus on improving its flaws to retain its brand name in the market. Following listed are the weaknesses of Nectar Lifesciences
- Income Margins: Gross and operating income must get better or they may put negative pressure on Nectar Lifesciences Ltd’s financial statements in the foreseeable future.
- Outdated Customer Network: The niche market available to companies like Nectar Lifesciences Ltd is rapidly disappearing. The customer network promoted by Nectar Lifesciences Ltd has proven to be increasingly ineffective.
- Increasing Competition: Competitiveness in the biotechnology and pharmaceutical sectors is putting pressure on profitability. The first guide to managing this situation is to evaluate the current value proposition of various pharmaceutical products.
- Less Awareness: The general public uses medicines of Nectar Lifesciences as prescribed by the doctor, but they are not aware of which brand’s medicine they are consuming. For Instance, Cipla spends heavily on advertising, so the brand’s name has reached the ears of all Indian households.
- Compliance to Principles: The firm functions in such a sector in which it has to function beneath specific regulations and limitations which can be a difficult and expensive matter for Nectar Lifesciences.
Opportunities for Nectar Lifesciences
Nectar Lifesciences should have an eye on exploiting the external opportunities to gain an advantage from them. A few of these are listed below:
- Expanding Customer Base: Customers need to move from disordered operators in the healthcare industry to licensed suppliers. This gives Nectar Lifesciences Ltd the opportunity to enter the beginner level market with plain products.
- Opportunities in the Online Space: As customers use online services more frequently, Nectar Lifesciences Ltd will be able to offer new services to customers in the Biotechnology and Drugs industries.
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- Changing Consumer Preferences: With increasing disposable income, and rapid acceptance of technical products, today’s consumers are open to new pharmaceutical products on the market. This gives Nectar Lifesciences a chance to broaden its consumer base.
- Enter New Market: The government has created barriers for new entrants in the field of BioTechnology and Drugs Industry, Nectar Lifesciences should seize the opportunity and try to increase its pharmacy business footprint.
- Policy Reform: According to some experts and reviews, The Patient Protection and Affordable Care Act (ACA Act) passed by the US government will open a new set of reforms that will favour the pharma companies dealing with generic drugs. If this news is true, it will benefit Nectar Lifesciences to a big extent.
- New Technologies: Nectar Lifesciences may use the new technologies to implement a differentiated pricing approach in the new market. It will allow the company to keep its current consumers by providing excellent service while also attracting new customers through various value-oriented offers.
- Favourable Govt. Resolutions: Tighter government regulations make it difficult for disordered stakeholders to work in the biotechnology and pharmaceutical industries. This gives Nectar Lifesciences Ltd the opportunity to expand its customer base.
Threats to Nectar Lifesciences
Nectar Lifesciences should try to remove the external threats as they have a vital role in creating hindrance to the growth of a firm. The threats of Nectar Lifesciences are
- Increased Institutional Distrust: WTO rules and laws are difficult to enforce across markets. The legal process has become a money-consuming and lengthy activity. This could reduce Nectar Lifesciences Ltd’s investment in emerging markets and slow growth.
- Tough Competition: With fewer barriers to entering the pharmaceutical business, competition has grown to much extent. The company faces tough competition from companies like Ranbaxy and Cipla.
- Changes According to Government Policy: With constantly changing government rules and regulations, companies have to readjust the rules and norms as well as drug compositions. This creates financial challenges for the company.
- High Prices: Pharmaceutical companies require various chemical compositions which can result in high priced drugs. This can limit the expansion in various Asian and African countries with low per capita income.
- Counterfeit Drugs: Nectar Lifesciences products are also vulnerable to counterfeit and low-quality product imitation, particularly in emerging and low-income regions.
This ends our detailed SWOT analysis of Nectar Lifesciences. Let us conclude our learning below.
Nectar Lifesciences ltd. is a very renowned pharmaceutical company and has gained a significant market stand globally. The SWOT analysis of Nectar Lifesciences tells us that it enjoys its global market stand, has a focused objective, and has a series of successful acquisitions.
But it needs to acknowledge the opportunities like growing market trends, use of goodwill to reach other potential markets and increasing efforts in its R&D department to fulfil the upcoming needs of its customers and consumers.
Fewer barriers in pharma industries have led to increased competition. Now, industries are fighting for their market stand which can be increased by increasing and improving their marketing skills. In recent years, most of the marketing is done digitally. For successful digital marketing, you need to have some adequate skills. If you are interested in enhancing and boosting your digital marketing skills, then you should checkout IIDE’s 3 Month Advanced Online Digital Marketing Course to know more.
We hope this blog on the SWOT analysis of Nectar Lifesciences has given you a good insight into the company’s strengths, weaknesses, opportunities and threats. You can also check out an in-depth study on the marketing strategy of Johnson & Johnson.
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