Mumbai: Indian contract manufacturing market is expected to touch $2.46 billion by 2010 with a annual growth rate of 41.7%, from $869 million in 2007, a report said.
“Indian companies, through their high quality-low cost production models, have bagged some impressive deals in the contract manufacturing space. These deals validate India’s potential to achieve a larger share of the global manufacturing outsourcing market,” consulting firm KPMG said in its latest pharma report.
Winning outsourcing deals signify that Indian firms have been able to win the trust and confidence of multinational companies, it said.
Nicholas Piramal, Cadila, Shasun, Dishman, Jubilant, Matrix, Strides, Ipca and Divi’s are some homegrown entities involved in the contract manufacturing business.
In future, Indian players would move up the value-chain in the contract business, KPMG said.
Firms are involved in the manufacture of active pharmaceutical ingredients and intermediates, solid and liquid dosage forms and simple vaccines.
But it would start making complex medicines such as injectables and biologics, KPMG said.
Indian corporates have strengthened their presence in the market by acquiring better technology and developing expertise in niche segments that offer higher margins and have higher entry barriers, the report said.
They have grown inorganically, too, by acquiring units worldwide, leading them closer to their global clients.
These acquisitions have boosted Indian companies’ capabilities in terms of newer technologies, expanded service portfolios, global manufacturing research sites with international regulatory approvals and a ready client network, it said.
Dishman acquired UK-based Synprotec, Jubilant acquired US-based Hollister Stier, Clinsys Clinical and Cadista Pharma, Strides Acrolab bought Softgel plant in the US, Piramal Healthcare bought UK-based Morepeth and Avecia and Canada-based Torcan and Dr Reddy’s acquired Roche’s API manufacturing unit in Mexico.