loader2
Login Open ICICI 3-in-1 Account
Text Size
Text to Speech
Color Contrast
Pause Animations

Open ICICI
3-in-1 Account

Manage your Savings, Demat and Trading Account conveniently at one place

+91

BLOG

Sun Pharma’s mega investment plan in domestic formulations

ICICIdirect Research 05 Dec 2025 DISCLAIMER

In what could be a biggest investment commitment in the domestic formulations, Sun Pharma, the largest player in the domestic formulations, has announced ₹ 3000 crore greenfield expansion in MP.
Over the last 10 years, most of the Pharma players, except Torrent, have invested heavily (almost ~80% of the growth capex) towards export markets, especially for the US and Europe.
Sun itself has invested more than ₹ 20000 crore in growth capex over the last ten years, almost entirely earmarked for the US and other export markets.
Domestic formulations, with a steady 8-10% of consistent compounding and better asset-turnover potential (2.5-3x) remain a low hanging fruit but overlooked by most of the pharma players in their quest for export markets, over the last 10 years.
With the impending implementation of schedule M by the government, which mandates stricter manufacturing norms, we expect significant number of smaller pharma players who do not adhere to the standards to vacate the manufacturing space.
Sun, we believe, might have sensed this opportunity besides the stable profile of India formulations business.
The move could pave way for other players to evaluate India focused capex.
We have a positive view on the stock with a target price of ₹ 1965.

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere