By having a readily available supply of pharmaceutical products within Russia Indian companies should be better equipped to tap into the rapidly expanding market. Russia's pharmaceutical market grew by 27 per cent between 2005 and 2006 to $10.7bn and it is this impressive growth that has been attracting companies. Dr P Appaji, executive director of the Indian Pharmaceutical Exports Promotion Council (Pharmexcil) stated the warehouse "would particularly help small and medium level exporters who are unable to avail such facilities at present." Currently, approximately 80 small to medium Indian companies involved in formulations are exporting to Russia and Pharmexcil hope the warehouse will help stimulate the industry. For the year 2006 to 2007 Indian exports to Russia were $308m. Pharmexcil proposed the warehouse project a couple of years ago but said it never came to fruition "due to lack of adequate response and viability problems of the project". Since then the Indian Ministry of Commerce and Industry has come out in support of the project, which they regard as important for promoting exports to Russia. The Indian government has stated its willingness to subsidise the cost of setting up the project or alternatively use the Central Warehousing Corporation, a public company, to perform the work. A reimbursement of warehouse rentals will also be available to those utilising the facilities Indian companies are not alone in trying to gain a share of the growing Russian market, although few enjoy the same level of state backing. The contract research organisation (CRO) Pharmaceutical Products Development purchased Russian CRO InnoPharm earlier this year, hoping to tap into the vast potential for clinical trials in the region. In 2007 Russia had suffered a setback as a location for conducting clinical trials, following the government's banning of the export of biologics. However, the ban was lifted and interest quickly returned to the area, drawn by the low running costs and population of 143m. The interest in Russia extends beyond clinical trials and drug sales, with pharmaceutical packaging specialist Schott signaling its intent to set up a production site in Russia at the end of 2007. Schott believe the market for premium quality pharmaceutical vials and ampoules is experiencing double-digit growth and consequently were keen to gain a foothold in the region. With Russia predicted to be a growth area and high levels of interest being shown by the pharmaceutical industry the Indian government's investment may prove to be very beneficial for companies looking to expand beyond India's borders.
