India’s Contract Development and Manufacturing Organisations (CDMOs) are rapidly gaining prominence on the global pharmaceutical stage, fuelled by an increasing push from global pharma companies to diversify their supply chains away from China. This transition, known as the “China plus one” strategy, has gained fresh urgency in the wake of geopolitical tensions, pandemic-induced disruptions, and looming trade policies such as the proposed US Bio secure Act. These developments have cast a spotlight on India as a preferred alternative manufacturing and development hub, offering both reliability and innovation.

Key Indian players Suven Pharmaceuticals, Syngene International, Laurus Labs, and Divi’s Laboratories are already reaping the benefits of this global pivot. These companies are witnessing a surge in demand, investment interest, and strategic partnerships from multinational pharmaceutical firms, particularly those based in the United States and Europe. With the global pharma industry actively pursuing alternatives to China for critical manufacturing needs, Indian CDMOs are well-positioned to become central pillars in the restructured global pharmaceutical supply chain.

Suven Pharmaceuticals at the Epicenter of Strategic Shifts

Suven Pharmaceuticals is emerging as a major beneficiary of the China diversification drive. Backed by private equity giant Advent International, Suven is seeing a significant uptick in high-level discussions with global pharmaceutical firms. According to Chairman Vivek Sharma, there’s a marked increase in interest in Suven’s specialized services, particularly in the development and manufacturing of antibody-drug conjugates (ADCs), peptides, and oligonucleotides—high-value, technically complex modalities that are gaining traction in the global biotech and pharmaceutical markets.

The company has seen increased engagement at international events such as DCAT Week in New York, where senior executives from major global firms are seeking collaboration and co-investment opportunities. Some of these discussions have even evolved into proposals for building dedicated capacities in partnership with Suven. The company is not only scaling its capabilities but also expanding its footprint in the United States to serve a broader client base. With ambitious targets, Suven aims to achieve $1 billion in revenue by 2030, capitalizing on the momentum created by the global CDMO shift.

Syngene International Converts Pilot Interest into Full Contracts

Another major Indian CDMO, Syngene International, has also gained traction amid this evolving pharmaceutical landscape. Syngene has effectively converted numerous pilot programs from multinational firms into full-scale commercial contracts, reflecting growing confidence in India’s CDMO services. These pilot programs often originate from large and medium-sized pharmaceutical companies seeking to diversify their manufacturing sources beyond China.

In a significant move to boost client confidence and supply chain reliability, Syngene acquired a state-of-the-art biologics manufacturing facility in the United States. This strategic acquisition allows Syngene to provide localized production for its international clients while retaining the cost advantages of its Indian operations. The management team has expressed confidence in the company’s growth trajectory, forecasting double-digit revenue growth in FY26, supported by a diversified portfolio and increasing demand for biologics and complex molecules.

Despite the uncertainties surrounding proposed regulations like the US Biosecure Act and potential trade tariffs, Syngene is focused on maintaining operational resilience and expanding its global reach. Its ability to translate pilot interest into commercial contracts serves as a testament to the trust global pharma places in Indian CDMOs.

Laurus Labs Expands CDMO Business with Technology and Investment

Laurus Labs, traditionally known for its strength in antiretroviral (ARV) APIs, is undergoing a major transformation by aggressively expanding into the CDMO space. The company’s CDMO business saw a 49% year-on-year growth in FY25, largely driven by more than 110 active projects involving high-value services for global clients. Laurus is leveraging cutting-edge technologies such as flow chemistry and biocatalysis, which are essential for efficient and sustainable drug development.

To support this pivot, Laurus is planning a massive Rs 1,000 crore capital expenditure in FY26. This investment will be directed toward enhancing its CDMO capabilities, doubling fermentation capacity, and supporting advanced manufacturing techniques. The company is strategically shifting away from being just an API supplier to becoming a full-service partner for global pharmaceutical innovators.

While Laurus acknowledges that a complete transition away from Chinese sourcing is not immediate due to regulatory timelines and validation processes the company emphasizes that the shift is well underway. It sees a balanced, phased transition where quality and reliability take precedence, giving Indian CDMOs an opportunity to establish long-term partnerships.

Divi’s Laboratories Secures Long-Term Global Contracts

Divi’s Laboratories, another major player in India’s pharma ecosystem, has also stepped into the spotlight by securing a long-term manufacturing and supply agreement with a global pharmaceutical major. The deal focuses on advanced intermediates, underscoring Divi’s capabilities in high-end chemical synthesis. To support this deal and future growth, Divi’s is investing Rs 650–700 crore in capacity expansion, entirely funded from internal accruals.

The investment will enhance its custom synthesis operations, which are critical for supporting the complex drug development needs of international clients. Divi’s has long maintained a reputation for quality and consistency, and the recent agreement further reinforces its standing as a trusted global CDMO partner.

India’s Growing Share in the Global CDMO Market

Despite the rise in Indian CDMO activity, China remains a formidable player in the global CDMO market. In 2023, China’s CDMO industry generated an estimated $17.52 billion in revenue, and it is projected to reach $30.63 billion by 2030, growing at a compound annual growth rate (CAGR) of 8.3%. However, India’s position is strengthening steadily. According to a recent BCG-IPSO report, India’s CRDMO (Contract Research, Development, and Manufacturing Organization) industry currently stands at $3–3.5 billion, accounting for just 2–3% of the global market.

That said, the report predicts exponential growth for India’s CDMO sector, estimating that it could reach $22–25 billion by 2035. This expansion will be driven by global supply chain realignments, increasing demand for advanced modalities like ADCs, RNA therapeutics, peptides, biologics, and rising R&D investments.

A Bullish Outlook for Indian CDMOs

Despite global economic headwinds and regulatory challenges, Indian CDMOs are optimistic about the future. The increasing trend of outsourcing complex pharmaceutical processes fueled by cost pressures and capacity constraints in developed markets is expected to continue. Industry leaders point to a sustained rise in strategic collaborations, co-development projects, and technology-driven partnerships.

As Vivek Sharma of Suven Pharmaceuticals aptly put it, “Outsourcing has been on the rise… the trend will continue. India has to grow, and India will grow.” The confidence displayed by these industry leaders underscores India’s readiness to play a central role in the evolving pharmaceutical supply chain landscape.

In conclusion, as global pharmaceutical giants look to de-risk their manufacturing dependencies and build resilient supply chains, Indian CDMOs are emerging not just as alternatives but as strategic partners. With robust investments, advanced capabilities, and a proven track record, Indian CDMOs are well-poised to shape the future of global drug development and manufacturing.