Opportunities galore for Indian CDMO players
We had the opportunity to interact with Mr Manish Shah, Managing Director of OC Specialities Pvt. Ltd. The company operates in two primary businesses: Contract Development and Manufacturing Organisation (CDMO) and distribution. Within the CDMO segment, the company offers end-to-end coordination ranging from early-stage development to commercial production. It has one R&D centre in Mumbai and a manufacturing facility in Solapur. Additionally, OC Specialities is actively involved in the distribution of chemicals, specialty chemicals, and agrochemicals.
The CDMO and Contract Research and Manufacturing Services (CRAMS) sectors in India are experiencing significant shifts and presenting new opportunities. There has been a notable uptick in inquiries from Japan, while challenges in Europe are expected to drive business toward India due to its cost advantage coupled with the “China plus one” strategy adopted by MNCs in CDMO and CRAMS. China’s increased chemical capacity and market strategy of dumping chemicals into market has implications for global supply dynamics, particularly with its heavy reliance on government incentives. Further, the battery chemical sector is expected to see robust demand. However, challenges such as the “Red Sea” issue are impacting timelines and costs could intensify with the demand rebounding, especially in the US and Europe.
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