The 'super-growth' sector in BRICs is not commodities but...
In this issue:
» An intelligent solution for the debt ridden European economies
» Is FDI the solution for better food supply in India?
» Mobile banking presents fee opportunity in billions
» Why inflation is amongst the biggest threats to the US?
» ...and more!---------------------------------------- India's Most Trusted Group ----------------------------------------
Is the Tata Group India's Most Trusted Group?
How do other Groups like ICICI and Reliance stack up?
Who will emerge as the winner?
Vote Now And Decide! Click Here...
---------------------------------------------------------------------------------------
00:00 | ![]() | |
Some statistics first. Global spending on medicines will grow by 12% to touch US$ 1.1 trillion in the next 4 years. As per the Institute of Healthcare Informatics, of this 28% will be spent in India, China and Brazil alone. This is while the developed world sees a cut down in healthcare spend. More importantly the world's biggest drug markets will see their share shrinking! That of the US will come down from 41% of total drug market to 31%. While Europe's will come down from 20% to 13% during this period.
Pharma majors in India, China and Brazil meanwhile have their plates full. One, they have to cater to a growing population with rising income levels. Two, pharma MNCs (multi-national corporations) will be vying for a tie up with them to get a share of the BRIC pie. The fact that drug research is cheaper in these economies adds to their advantage. Hence growth by way of both organic and inorganic means will be plentiful for players in the sector. Upfront cash payments for MNC tie-ups to create generic versions of branded drugs will be an added sweetener. Not only will this augur well for the balance sheet of BRIC pharma companies, but also help them grow with less debt.
With so much going in its favour, we believe that pharma is one sector that will grow despite all odds. Hiccups in GDP (gross domestic product) growth, lax policymaking and high inflation are least likely to dampen the prospects of this new sunshine sector.
Do you think the pharma sector can yield better returns for investors than commodities over the next 4 to 5 years? Share your comments or post them on our Facebook page.
01:20 | Chart of the day | |
![]() |
02:00 | ![]() | |
02:30 | ![]() | |
03:10 | ![]() | |
Another point of focus will be how to ensure timely transportation of the food grains during harvesting (especially for wheat and rice) so as to check wastage. We have been stressing on the need for improvement in supply chain to ease all the above mentioned problems as also the inflation problem. The solution could lie in permitting FDI (Foreign Direct Investment) in Retail.
04:00 | ![]() | |
04:30 | ![]() | |
04:45 | Today's investing mantra |
Today's Premium Edition.
Recent Articles
- All Good Things Come to an End... April 8, 2020
- Why your favourite e-letter won't reach you every week day.
- A Safe Stock to Lockdown Now April 2, 2020
- The market crashc has made strong, established brands attractive. Here's a stock to make the most of this opportunity...
- One Stock that is All Charged Up for the Post Coronavirus Rebound April 1, 2020
- A stock with strong moat is currently trading near 5-year lows.
- Sorry Warren Buffett, I'm Following This Man Instead of You in 2020 March 30, 2020
- This man warned of an impending market correction while everyone else was celebrating the renewed optimism in early 2020...
Equitymaster requests your view! Post a comment on "The 'super-growth' sector in BRICs is not commodities but...". Click here!
3 Responses to "The 'super-growth' sector in BRICs is not commodities but..."
Ashish Maheshwari
Jul 14, 2011Yes the next sunrise sector will be "healthcare" along with Pharma. More and more people are opting for health insureance and this makes them to focus more on quality healthcare rather than money on healthcare services. Hence stocks like Apollo and Fortis can be multibagger.
Rajni Mohan
Jul 14, 2011Developing nations like India,China and Brazil will continue to grow because of their demographic advantage.Despite of the inflationary pressure infrastructure and other developmental activities will continue to grow creating demand for steel & cement and adding pollution in the atmosphere.Serious health problems and new diseases will create demand for good quality medicine.
Demand for medicine for cardiac diseases, cancer, diabetes will be more.Then there are many Indian pharma company, Old and New, which can produce all these drugs at a reasonable cost .
anupam garg
Jul 14, 2011wrt to mobile banking: elimination of costly POS mahcines at vendor outlest will definitely boost cost reduction...mobile banking if promoted properly will lead 2 a win win situation for all
if i m not mistaken, cash transfers between 2 mobiles can bypass RBI, unlike cash transfer via net banking...something worth paying attention 2...
who wld hav thought 2 decades back tht communication wld b possible so easily...from calls 2 SMSes to social networkin via mobiles...gettin in touch requires just a green button, waitin 2 b pressed
the idea of a similar funda wrt to money is xciting...wallet & phone service in a mobile is more than welcome.