Contract Manufacturing in India Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The report covers Top Contract Manufacturing Companies in India and the market is segmented by Service Type (API and Intermediates, Finished Dose). The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.

India CMO Market Size

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India CMO Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 22.51 Billion
Market Size (2029) USD 44.63 Billion
CAGR (2024 - 2029) 14.67 %
Market Concentration Low

Major Players

India CMO Market Major Players

*Disclaimer: Major Players sorted in no particular order

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India CMO Market Analysis

The India CMO Market size is estimated at USD 22.51 billion in 2024, and is expected to reach USD 44.63 billion by 2029, growing at a CAGR of 14.67% during the forecast period (2024-2029).

The rise in demand for injectable drugs, especially in cancer research, will upwardly trend the Indian pharmaceutical contract manufacturing market. Injectable drugs offer higher returns as compared to other drug formulation types. Therefore, higher ROI and therapeutic efficiency are expected to fuel the growth of the injectable formulation segment in the country.

  • Over the past few decades, India has taken a significant leap in pharmaceutical production, including contract manufacturing. As per Indian Drug Manufacturers' Association, the pharma CMO industry provides a significant opportunity for small and medium enterprises.
  • The pharmaceutical and vaccine industries are both very vital to India. Globally speaking, it is the biggest supplier of generic medications. Around 60% of the world's vaccinations come from India, contributing 20% of the supplies globally. India is the third-largest country in the world in both volume and value. OTC drugs, Generics, APIs, Vaccines, Biosimilars, and Custom Research Manufacturing are significant subsectors of the Indian pharmaceutical business (CRM).
  • The scale-up of drug synthesis and late clinical trials have become a suitable protocol in the country. Along with it, DTAB (Drug Technical Advisory Board) has also agreed to grant a waiver to the late-stage (Phase III) studies of certain drugs in the country, which are from the US and Europe-regulated markets. These incentive step translates into enormous cost savings for pharmaceutical companies, thereby increasing their focus on India.
  • The Indian government has established several programs to support the pharmaceutical sector. The Strengthening of Pharmaceutical Industry (SPI) initiative, with a total financial investment of INR 500 crore (USD 64.5 million), focuses on enhancing the current infrastructure facilities. The foreign direct investment (FDI) inflows in the Indian drugs and pharmaceuticals sector reached USD 1,414 million between FY 2021-22.
  • Pharmaceuticals, crucial key starting materials (KSMs), medical devices, bulk drug parks, and other industries have production-linked incentive (PLI) programmes to support manufacturers. The Indian government wants to boost output and investment in the country's pharmaceutical industry through the PLI scheme. In the six years from 2022-2027, the scheme is anticipated to produce an additional sale of INR 2,94,000 crore (USD 37.09 billion).
  • Moreover, the country is a significant exporter of pharmaceutical solutions. For instance, the United States relies on India to import services and establish its plants in the country. A substantial 40% lower cost of operation and production is why multinational companies consider India for their outsourcing requirements.
  • The main factors most likely to impede market expansion during the projected period include the existence of stringent government restrictions and a decrease in the approval of numerous small molecules and biologics in specific regions of the nation. Additionally, the lack of modern technology in small-scale CDMOs increases the likelihood of process errors, the potential for poor quality, and the difficulties associated with rising prices, all of which are predicted to restrain market expansion.
  • The COVID-19 epidemic has generally been good for contract manufacturing services. In the clinical trial manufacturing sector, where mega- and small-cap businesses use a sizable drug pipeline and partners to progress their pipelines, there are numerous prospects for CMOs. The pandemic has also increased big pharma's internal capacity as some have outsourced some of their current goods. There has also been an impact of the Russia-Ukraine war on the overall packaging ecosystem.

India CMO Market Trends

This section covers the major market trends shaping the India CMO Market according to our research experts:

Generic Medicine Under Solid Finished Dose Segment Holds Significant Share in The Market

  • The solid dose formulation segment is mainly dominating the finished dose segment in India, owing to lower manufacturing costs, patent compliance, and ease of maintenance. Solid dosage forms, such as tablets, pills, capsules, powders, etc., are among the most adopted products in the country. The growth of generic drugs is one of the major factors driving the segment's growth. India is the largest exporter of generic drugs and accounts for approximately 20% of global exports by volume.
  • By producing 60000 different generic brands over 60 therapeutic categories, India is the world's largest producer of generic medications, accounting for 20% of the global supply. One of medicine's biggest success stories is the availability of cheap HIV medication from India. India is one of the world's top producers of inexpensive vaccines. India is aptly known as the "pharmacy of the world" because its medications are popular globally due to their low cost and great quality.
  • Also, new global opportunities are being made by generic manufacturers producing modified versions of approved off-patent small-molecule drugs. These so-called 'super generics offer a therapeutic advantage, distinguishing them from conventional generic drugs. For instance, India-based Ranbaxy Laboratories developed a once-a-day ciprofloxacin tablet and licensed it to Germany-based Bayer AG.
India Contract Manufacturing Organization (CMO) Market - India's Drug and Pharmaceutical Export Trend (2016-2022), in USD Billions

Drugs and Pharma Exports in United States Account for Significant Market Growth

  • Indian drugs are exported to more than 200 countries worldwide, with the US being the key market. According to RBI, the Indian pharmaceutical sector contributes about 2 percent to India's GDP and around 8 percent to the country's total merchandise exports.
  • Generic drugs account for 20% of the global export volume, making India the largest provider of generic medicines globally. In the covid phase, India's drugs and pharmaceuticals exports stood at USD 3.76 billion between April 2021 and May 2021 (source: IBEF).
  • The USA, the UK, and Russia are among the largest importers from India at a share of 29%, 3%, and 2.4%, respectively, during 2021-22. India's exports of pharma products to the USA in FY21-22 were USD 7,101.6 million.
  • There were 741 facilities that the USFDA had approved as of August 2021. Additionally, as of December 2020, 4,346 ANDAs had been won by Indian companies. Due to the Covid epidemic, USFDA inspections were not undertaken over the past couple of years; nevertheless, they have begun to occur lately and are anticipated to enhance Indian exports to the USA further.
  • India has the most USFDA-compliant businesses with facilities outside of the USA. Over 55% of India's exports go to heavily regulated markets, and 8 out of 20 global generic companies are based there. About 65-70% of the vaccines needed by the World Health Organization (WHO) are supplied from India, the nation that exports the most vaccines.
India’s Contract Manufacturing Organization (CMO) Market - India's Country-Wise Share of Drugs, Pharmaceutical, and Fine-Chemicals Export (2021-2022), in %

India CMO Industry Overview

The India Contract Manufacturing Organization (CMO) market is fragmented, with the top vendors accounting for a significant share of the total market. Apart from these major players, several players in the market are investing in innovation and partnership activities to gain an increased market share. Therefore, the intensity of competitive rivalry is high. The key players are Dr. Reddy's Laboratories, Cadila Healthcare Limited, Cipla Ltd., etc. Recent developments in the market are -

In July of 2022, Cipla Limited reported that Endura Mass, a well-known nutritional supplement brand in the weight gain category from Medinnbelle Herbalcare Private Limited, was acquired by Cipla Health Limited (CHL), a wholly owned subsidiary and consumer healthcare arm of the company.

In May 2022, The South Korean company HK inno. N Corporation and the Indian company Dr. Reddy's Laboratories formed an exclusive partnership for the supply and commercialization of HK inno.N Corporation's patented novel molecule Tegoprazan for gastrointestinal diseases in India and six important Emerging Markets.

India CMO Market Leaders

  1. Dr. Reddy’s Laboratories

  2. Cadila Healthcare Limited

  3. MSN Laboratories Pvt Ltd

  4. Cipla Ltd.

  5. Akums Drugs and Pharmaceuticals Limited

*Disclaimer: Major Players sorted in no particular order

Dr. Reddy’s Laboratories, Cadila Healthcare Limited, MSN Laboratories Pvt Ltd, Cipla Ltd, Akums Drugs and Pharmaceuticals Limited
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India CMO Market News

  • In June of 2022: Glenmark Pharmaceuticals introduced the cutting-edge fixed-dose combination (FDC) medication Indacaterol + Mometasone for patients with uncontrolled asthma in India. The business introduced this FDC under the name Indamet. Glenmark is the first business in India to commercialize the ground-breaking FDC of Indacaterol, a long-acting beta-agonist, and Mometasone Furoate, an inhaled corticosteroid that has been authorized by the Drug Controller General of India (DCGI),
  • In May 2022: Sun Pharma announced that one of its wholly-owned subsidiaries plans to launch a first-in-class oral drug, Bempedoic Acid, in India for reducing Low-Density Lipoprotein (LDL) cholesterol. The company will launch the drug under the brand name 'Brillo.'
  • In March 2022: The Mumbai-based pharmaceutical business Themis Medicare Ltd. announced that the Drug Controller General of India had approved their antiviral medication VIRALEX (DCGI). In mild to moderate Covid-19 sufferers, the medication aids in the early treatment of clinical symptoms, according to the findings of double-blind, randomized controlled trials (RCT).

India CMO Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Value Chain Analysis

    3. 4.3 Market Drivers

      1. 4.3.1 Availability of Skilled Labor at Relatively Lower Cost

      2. 4.3.2 Sustained increase in outsourcing volumes by big pharma companies

      3. 4.3.3 Geographical advantage in the form of access to large markets in the APAC region

    4. 4.4 Market Restraints

      1. 4.4.1 The existence of stringent government restrictions and a decrease in the approval of numerous small molecules and biologics in specific regions of the nation

    5. 4.5 Industry Ecosystem Analysis

    6. 4.6 Industry Attractiveness - Porter Five Forces

      1. 4.6.1 Bargaining Power of Suppliers

      2. 4.6.2 Bargaining Power of Buyers

      3. 4.6.3 Threat of New Entrants

      4. 4.6.4 Threat of Substitute Products

      5. 4.6.5 Intensity of Competitive Rivalry

    7. 4.7 Impact of Covid-19 on the Pharmaceutical industry in India

    8. 4.8 Overview of the Global Pharmaceutical CMO Industry and major cues identified in the Indian market

    9. 4.9 Overview of major markets in the Asia Pacific region

    10. 4.10 Major Hotspots for CMO Facilities in Maharashtra and Telangana

    11. 4.11 Recent private equity investments in the CMO industry in India

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Service Type

      1. 5.1.1 API and Intermediates

      2. 5.1.2 Finished Dose

        1. 5.1.2.1 Solids

        2. 5.1.2.2 Liquids

        3. 5.1.2.3 Semi-Solids and Injectables

  6. 6. STRATEGIC RECOMMENDATIONS ON INDIA CMO INDUSTRY

    1. 6.1 India remains a highly proposition for new vendors planning to set up their CMO facilities, specifically in the injectables domain mainly due to growth in domestic demand and generics drugs

    2. 6.2 Cost advantages and access to talent pool

    3. 6.3 Regulatory approval pipeline and base case scenarios

    4. 6.4 Analysis of potential M&A targets in India

  7. 7. COMPETITIVE INTELLIGENCE

    1. 7.1 Company Profiles

      1. 7.1.1 AMRI India Pvt. Ltd.

      2. 7.1.2 Dr. Reddy's Laboratories

      3. 7.1.3 Cadila Healthcare Limited

      4. 7.1.4 MSN Laboratories Pvt Ltd.

      5. 7.1.5 Viatris Inc (Mylan Laboratories Ltd)

      6. 7.1.6 Medipaams India Pvt Ltd.

      7. 7.1.7 Cipla Ltd.

      8. 7.1.8 Eisai Pharmaceuticals India Pvt Ltd.

      9. 7.1.9 Delwis Healthcare Pvt Ltd.

      10. 7.1.10 Maxheal Pharmaceuticals India Ltd.

      11. 7.1.11 Rhydburg Pharmaceuticals Ltd.

      12. 7.1.12 Theon Pharmaceuticals Limited

      13. 7.1.13 BDR Pharmaceuticals International

      14. 7.1.14 Akums Drugs and Pharmaceuticals Limited

      15. 7.1.15 Wockhardt Limited

      16. 7.1.16 Unichem Laboratories Ltd.

      17. 7.1.17 Ciron Drugs & Pharmaceuticals Pvt Ltd

    2. *List Not Exhaustive
  8. 8. MARKET OUTLOOK

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India CMO Industry Segmentation

The market study tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the market estimations and growth rates over the forecast period. The study further analyzes the overall impact of COVID-19 on the ecosystem.

The India Contract Manufacturing Organization (CMO) Market is segmented by Service Type (API and Intermediates, Finished Dose). The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.

By Service Type
API and Intermediates
Finished Dose
Solids
Liquids
Semi-Solids and Injectables
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India CMO Market Research FAQs

The India CMO Market size is expected to reach USD 22.51 billion in 2024 and grow at a CAGR of 14.67% to reach USD 44.63 billion by 2029.

In 2024, the India CMO Market size is expected to reach USD 22.51 billion.

Dr. Reddy’s Laboratories, Cadila Healthcare Limited, MSN Laboratories Pvt Ltd, Cipla Ltd. and Akums Drugs and Pharmaceuticals Limited are the major companies operating in the India CMO Market.

In 2023, the India CMO Market size was estimated at USD 19.63 billion. The report covers the India CMO Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the India CMO Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Contract Manufacturing Organization in India Industry Report

Statistics for the 2024 Contract Manufacturing Organization in India market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Contract Manufacturing Organization in India analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Contract Manufacturing in India Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)