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Opportunities for Indian players

ICICIdirect Research 23 Aug 2024 DISCLAIMER

Global pharma companies have already started taking action, despite the legislation not yet even a law. The proposed act if becomes law can provide China re-balancing (not necessarily China + 1) opportunities for other global CRAMs players including Indian players. 
As per F&S report, India CRAMs Industry is currently at USD 7 Billion and is poised to expand at a CAGR of 14% til FY2028 which will be highest amongst other regions. Possible enactment of Biosecure Act could only strengthen the growth prospects of the Indian players. 
Most of the players have undergone significant capex expansion in recent years with the combined capex figure for Divi’s, Syngene, Hikal and Piramal Pharma stood at Rs 9100 crore during FY21-24. Suffice to say that they are well prepared to cater to the incremental opportunities stemming from Biosecure Act.

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