As per my assessment, Aarti drug does well only when Govt gives support in terms of import restriction for some of its drugs.
Almost all API makers in India depend upon China for KRM (key raw materials) and most pharmaceutical companies depend upon China for either API or Key raw material to a varied degree which none of these companies are transparent in declaring the import content.
So the fortune of our indian pharma co and API players depends upon the (1) Chinese companies who detect terms and also (2) Geo political situation.
Our Govt has recently started PLI schemes and it would take time to see the results. However we still have a long way to go to catch up with China in terms of Cost.
China has spent a lot of money in R&D, time and efforts in building a very good infrastructure for pharma/ API over the years to reach the Global leadership with a competitive edge which would be tough to replicate by any nation.
Discl: Booked profit and Exited all API , pharma except Divi and Gland.
This is not an investment advice. Please do your own assessment before investing
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