Schedule a Call Back
India’s API industry expected to grow 7-8% in FY25
Industry News- Aug 13,24
The operating profit margin (OPM) is forecasted to rise to 12-14%, up from 11-13% in the previous fiscal year.
India’s active pharmaceutical ingredients (API) industry is projected to grow 7-8% in FY25, expanding from an estimated $13-$14 billion in 2023, according to a report released by credit rating firm ICRA.
This growth is anticipated due to a steady increase in the pharmaceutical formulations sector, driven by factors such as a rising geriatric population, higher prevalence of chronic diseases, and increased demand for contract manufacturing. Global customers are diversifying their supply chains and focusing more on domestic sourcing, contributing to this growth.
Deepak Jotwani, Vice President and Sector Head- Corporate Ratings, ICRA noted that lower input costs and revenue growth are expected to sustain the earnings improvement seen in FY2024. The operating profit margin (OPM) is forecasted to rise to 12-14%, up from 11-13% in the previous fiscal year.
However, the report highlights potential challenges, including subdued demand from key export markets like Europe and supply chain disruptions due to tensions in the Red Sea, which could impact freight costs.
In FY2024, India imported APIs and bulk drugs worth Rs 377 billion, representing 35% of its total API needs. The government’s production-linked incentive (PLI) scheme for the bulk drugs sector has shown favourable traction, particularly for select molecules like Penicillin G and 7-ACA, which require significant investment and high energy consumption.
To date, 62% of the planned Rs 65 billion investment under the PLI scheme has been utilised in 32 out of 48 planned projects. A prominent Indian API manufacturer is expected to launch its Penicillin G production facility under this scheme in FY2025, potentially reducing dependence on Chinese suppliers.
Additionally, domestic manufacturing is expected to lower inventory carrying costs for formulation manufacturers through improved supply chain management. Capacity expansion is nearing completion, with capital expenditure (capex) projected to decrease to Rs 5.6 billion in FY2025 from Rs 7.6 billion in FY2024.
(IANS)
pharma
pharmaceuticals
API manufacturer
API manufacturing
ICRA
API
drug manufacturing
Deepak Jotwani
Related Stories
Process Equipment
India’s API industry expected to grow 7-8% in FY25
The operating profit margin (OPM) is forecasted to rise to 12-14%, up from 11-13% in the previous fiscal year.
Read morePolicy Regulation
FDI in manufacturing reaches $165 billion; 69% growth over last decade
This sector surge is largely driven by production-linked incentive (PLI) schemes.
Read moreHydraulic & Pneumatics
Wipro Hydraulics acquires US-based Columbus Hydraulics
Established in 1952, Columbus has built a reputation in the industry, delivering custom hydraulic solutions for a variety of applications including agriculture, construction, turf maintenance and ma..
Read moreRelated Products
Programmable Controllers - Pcd-33a Series
CHEMICAL PROCESS, FOOD/PHARMA EQUIPMENT & ANALYTICAL INSTRUMENTS
Pro-Med Instruments (P) Ltd offers a wide range of programmable controllers - PCD-33A Series.
Gasket Graphite Powder
CHEMICAL PROCESS, FOOD/PHARMA EQUIPMENT & ANALYTICAL INSTRUMENTS
Arihant Packing & Gasket Company offers a wide range of gasket graphite powder.
Asahi Kasei expands 3D printing filament sales in North America
CHEMICAL PROCESS, FOOD/PHARMA EQUIPMENT & ANALYTICAL INSTRUMENTS
Asahi Kasei, a leading resin and compounding technology provider, has initiated the sales of 3D printing (3DP) filaments in North America through Asahi Kasei Plastics North America (APNA). The soft la Read more
latest News
Subscribe to iNoW
For Industry News on WhatsApp, Give a Miss Call on: +91 84228 74016
