The pharmaceutical market of Uzbekistan is showing impressive growth. If 7-8 years ago there were only a few small production sites in the country, today there are more than 230 pharmaceutical manufacturers and over 500 distributors, meeting the needs of the population for medicines and medical equipment.
The reforms initiated by the government under the leadership of President Shavkat Mirziyoyev have opened new horizons for the pharmaceutical industry. The market, which before the reforms was estimated at $0.7 billion, has now reached $1.7 billion, and this is just the beginning.
We talked to Satish Vijayvargi, the head of one of the largest pharmaceutical holdings in the country - SERENE Group, to learn about the specifics of doing business in Uzbekistan, market development and the importance of automating business processes.
The reforms initiated by the government under the leadership of President Shavkat Mirziyoyev have opened new horizons for the pharmaceutical industry. The market, which before the reforms was estimated at $0.7 billion, has now reached $1.7 billion, and this is just the beginning.
We talked to Satish Vijayvargi, the head of one of the largest pharmaceutical holdings in the country - SERENE Group, to learn about the specifics of doing business in Uzbekistan, market development and the importance of automating business processes.
About SERENE Group
SERENE Group is an international pharmaceutical holding with over 25 years of experience in the global market. It includes the distribution company Serene Pharma and the drug manufacturing plant SERENE Healthcare.
The first plant in Uzbekistan was launched in 2022, and the company is now preparing to open a second plant. The holding has a total of 874 employees, of which about 222 work in SERENE Healthcare and about 652 in SERENE Pharma.
Achievements:
The first plant in Uzbekistan was launched in 2022, and the company is now preparing to open a second plant. The holding has a total of 874 employees, of which about 222 work in SERENE Healthcare and about 652 in SERENE Pharma.
Achievements:
- In 2020, SERENE Group launched the first plant in Uzbekistan for the production of drugs.
- Preparing to open a second plant, which will be the largest in the country and will provide 40-45% of the population's needs for drugs.
From TV drug ads to the largest factory in the country
Uzbekistan has become my second home. When I first came here in 2006, my son was still in kindergarten, and today he is already a university graduate. Back then, I started my work with marketing and advertising pharmaceutical products that we imported from abroad. When we launched distribution, we carefully studied the market needs and competently built a marketing strategy.
Gradually, we came to the idea of building our own plant that meets international standards. In 2016-2017, we conducted market research, calculating its needs. At that time, the pharmaceutical market of Uzbekistan was estimated at about $ 0.7 billion. It was important for us to understand what part of this amount falls on various forms of drugs: tablets, suspensions, capsules and medical devices, as well as from which countries and what types of goods are mainly imported to Uzbekistan. This data gave us a complete understanding of the process, which significantly helped when launching the plant.
At the initial stage, we produced injections and glass bottles - products that no one else offered on the market. Today we see a huge demand for tablets, a significant part of which is imported. Therefore, we decided to build a new plant, which will cover 40-45% of the country's needs for medicines.
Market needs:
Gradually, we came to the idea of building our own plant that meets international standards. In 2016-2017, we conducted market research, calculating its needs. At that time, the pharmaceutical market of Uzbekistan was estimated at about $ 0.7 billion. It was important for us to understand what part of this amount falls on various forms of drugs: tablets, suspensions, capsules and medical devices, as well as from which countries and what types of goods are mainly imported to Uzbekistan. This data gave us a complete understanding of the process, which significantly helped when launching the plant.
At the initial stage, we produced injections and glass bottles - products that no one else offered on the market. Today we see a huge demand for tablets, a significant part of which is imported. Therefore, we decided to build a new plant, which will cover 40-45% of the country's needs for medicines.
Market needs:
- The pharmaceutical market of Uzbekistan has reached $1.7 billion.
- The introduction of reforms and automation has led to an increase in volume by $1 billion.
- Construction of a new plant to cover domestic demand and increase exports.
Reforms and automation: keys to success
Reforms play a key role in the development of any country. In 2016, when President Shavkat Mirziyoyev came to power, the pharmaceutical market of Uzbekistan was estimated at $750 million, and one of the big problems was the presence of counterfeit products.
Reforms have cleared the market of counterfeit products, and today it is estimated at $1.7 billion. This shows that reforms have contributed to the development of the market, increasing its turnover by $1 billion.
Reforms have cleared the market of counterfeit products, and today it is estimated at $1.7 billion. This shows that reforms have contributed to the development of the market, increasing its turnover by $1 billion.
Business process automation
Automation of business processes and implementation of IT solutions such as Smartup have not only improved business management, but also increased transparency and control over the movement of goods throughout the chain. These technologies play an important role in the further development of the market, making it more attractive for investment.
Transparency and healthy competition in the near future will lead to the pharmaceutical market of Uzbekistan reaching more than $ 2.2 billion.
Rapid population growth, which is 1% higher than the annual world rates of 4-7%, also contributes to positive forecasts for the pharmaceutical market for the next 5-10 years.
Transparency and healthy competition in the near future will lead to the pharmaceutical market of Uzbekistan reaching more than $ 2.2 billion.
Rapid population growth, which is 1% higher than the annual world rates of 4-7%, also contributes to positive forecasts for the pharmaceutical market for the next 5-10 years.
Comparison with international markets
For a more complete picture, here are some statistics from other countries:
These data highlight Uzbekistan's potential in developing the pharmaceutical industry, especially against the backdrop of active growth and modernization of the sector.
- India: One of the largest drug manufacturers in the world, with a market value estimated at $60 billion in 2023. Pharmaceutical exports from India amount to about $26 billion.
- USA: The largest pharmaceutical market in the world, with a value of about $550 billion in 2023. The country is home to leading pharmaceutical companies such as Pfizer and Johnson & Johnson, which are also actively investing in research and innovation.
- China: A fast-growing pharmaceutical market with a value of about $165 billion in 2023. China is actively developing domestic production and reducing dependence on imports by promoting state support programs for the pharmaceutical industry.
These data highlight Uzbekistan's potential in developing the pharmaceutical industry, especially against the backdrop of active growth and modernization of the sector.
Innovation and automation in business: the role of Smartup
In the pharmaceutical industry, where the coordinated work of all links is important, the integration of business processes into a single, controlled system is of paramount importance. Automation has become an integral part of a successful business, providing centralized storage of information, increasing control over the work of employees and helping in the development of sales strategies.
Smartup, as an automation tool, helps us save up to 24% of time on routine operations. This significantly increases the efficiency and profitability of the company.
Smartup's capabilities allowed us to implement the system in Serena Pharma and integrate it into our business processes, improving the company's reputation as a reliable distributor.
Automation results:
To maintain the competitiveness of the automation system, it is necessary to stay ahead of market needs. Integrating Smartup with the 1C program, which allows you to receive all the necessary information and generate reports, will significantly increase the value of the system. In the future, we hope to use Smartup not only in Uzbekistan, but also in other countries in the region.
Smartup, as an automation tool, helps us save up to 24% of time on routine operations. This significantly increases the efficiency and profitability of the company.
Smartup's capabilities allowed us to implement the system in Serena Pharma and integrate it into our business processes, improving the company's reputation as a reliable distributor.
Automation results:
- Time savings on order collection and delivery from 15% to 24%.
- Daily monitoring via the Smartup dashboard allows you to control key performance indicators.
To maintain the competitiveness of the automation system, it is necessary to stay ahead of market needs. Integrating Smartup with the 1C program, which allows you to receive all the necessary information and generate reports, will significantly increase the value of the system. In the future, we hope to use Smartup not only in Uzbekistan, but also in other countries in the region.
Social responsibility and sustainable development
SERENE Group is actively involved in social initiatives aimed at supporting local communities and sustainable development. We implement programs that help improve the quality of life of the population, such as educational projects and medical initiatives.
Environmental sustainability:
We look to the future with confidence that the continuation of these reforms and further modernization will allow Uzbekistan to become one of the leaders in the pharmaceutical industry in the region.
It is important to continue to introduce innovations and support reforms to ensure sustainable development of the pharmaceutical market of Uzbekistan and provide high-quality medical services to the population.
There is a lot of work ahead, but with partners like SERENE Group, Uzbekistan is ready for new heights.
Environmental sustainability:
- Use of environmentally friendly technologies in production.
- Reducing the carbon footprint by optimizing logistics and using energy-efficient equipment.
- The pharmaceutical market of Uzbekistan has come a long way thanks to reforms and the introduction of modern technologies. SERENE Group is a shining example of how the integration of automation and effective management can lead to impressive results.
We look to the future with confidence that the continuation of these reforms and further modernization will allow Uzbekistan to become one of the leaders in the pharmaceutical industry in the region.
It is important to continue to introduce innovations and support reforms to ensure sustainable development of the pharmaceutical market of Uzbekistan and provide high-quality medical services to the population.
There is a lot of work ahead, but with partners like SERENE Group, Uzbekistan is ready for new heights.
