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: If generics are the gateway of growth for global pharmaceutical giants such as AstraZeneca, Pfizer, Sanofi-Aventis, Novartis, Merck and GlaxoSmithKline, there is a clear and renewed thrust on the $17 billion Indian pharmaceutical market. Market is abuzz with acquisition talks as global pharmaceutical majors scan the Indian market for potential buyouts.

The reason for Indian pharmaceuticals companies coming under the buyout lens is not hard to find. Acquiring an Indian drug company with proven skills in manufacturing can bring in cost-effective generic development methods. Also, global pharmaceutical majors’ pursuit for profitable growth is bringing them to Indian shores—the $8 billion Indian domestic pharmaceutical market is growing at 12% per annum and poised to reach $14 billion by 2013.

Soon after acquiring Hyderabad-based Shantha Biotech for $770 million, Chris Viehbacher, the CEO of Sanofi-Aventis issued a shrill public statement: “There will be more shopping on the horizon. The objective is to build the company’s vaccine, biotechnology and non-prescription-medicine businesses, as well as expand in emerging markets.”

It is probably the same sentiment which resonates in the $44 billion drug maker’s ambitious drive to notch up alliances or buyout outright the assets of Indian generic companies. No wonder, the French drug giant is leaving no stone unturned in order to grab a share of the fast-growing generics business—Indian pharmaceutical companies’ main forte—and also increase its sales in the $8 billion domestic pharmaceuticals market.

Sanofi-Aventis is not alone in its pursuit to acquire Indian pharmaceutical assets. The $48 billion American drug giant Pfizer has sent feelers to pick up equity stake in a host of Indian companies—Mankind Pharma, Intas Pharma, Zydus Cadila or the biotech business of Wockhardt, according to healthcare analysts. That’s not all.

Allergen, Abbott Laboratories, GlaxoSmithKline, Novartis, AstraZeneca and many other global pharmaceutical companies are also on the prowl, seeking to buy Indian pharmaceutical companies or strike a strategic alliance with them.

Irrespective of the business strategy being adopted, the gameplan is fairly simple and crystal clear from the global pharmaceutical majors’ viewpoint: Make an offer to the predominantly family-controlled Indian pharmaceutical businesses they can’t refuse. On their part, Indian companies are waiting for the right valuation; something what the promoters of Ranbaxy Laboratories achieved when they sold their stake to Japanese firm Daiichi Sankyo for a mind-boggling $4.6 billion last year.