9 Dec 2025
The pharmaceutical world is undergoing a seismic shift, and at the heart of this transformation is the rise of CRDMOs—Contract Research, Development, and Manufacturing Organizations. These entities are the unsung heroes behind the scenes, helping pharma giants bring new drugs to market faster, more efficiently, and at lower costs. But here’s the real story: India is poised to grow significantly in this space, and the numbers are nothing short of staggering.
Global Growth: A $330 Billion Opportunity
The global CRDMO industry is on a rising trajectory, expected to grow at a 9% CAGR and reach a whopping $330 billion by 2029*. North America is the largest region in terms of revenues globally, being the largest pharmaceutical market by consumption and a global innovation hub coupled with high R&D spending.
While Indian CRDMO companies are still at a nascent stage, the sheer size of the opportunity ahead is immense.
India’s Moment: One of the Fastest-Growing Market in the World
India is set to be one of APAC’s fastest-growing CRDMO market, driven by outsourcing demand, tech upgrades, supply diversification, and favourable geopolitics. India’s own CDMO industry is projected to grow at a robust 13% CAGR over FY24-29^, outpacing global averages. By 2029, India is expected to command 5%^ of the global CRDMO market, gaining share from other regions. What’s driving this surge? A combination of cost competitiveness, a massive pool of STEM talent, and the highest number of US FDA-approved manufacturing facilities in the world.
The Evolution: Moving Up the Value Chain
Over the past two decades, the CDMO sector has moved from basic intermediates to advanced therapies like antibody-drug conjugates (ADCs), gene therapy, and next-generation biologics. This shift up the value chain means Indian companies are now handling more complex, high-value projects, making them indispensable partners for global pharma.
The China+1 Opportunity: India Steps Up
Geopolitical tensions and supply chain disruptions have prompted global pharma to diversify beyond China, a trend known as “China+1.” Indian CRDMOs are perfectly positioned to capture this shift, offering reliability, regulatory compliance, and cost advantages. Chinese CRDMOs have seen explosive growth, but India’s fundamentals are setting the stage for a new era of competition.
Outsourcing: The New Normal in Pharma
Why is outsourcing booming? Two big reasons: speed and savings. Outsourced R&D and manufacturing can slash timelines and costs dramatically. For example, clinical trial phases handled by CROs (Contract Research Organizations) are significantly faster than those done in-house. As drug development costs soar, now reaching up to $3 billion per new drug, pharma companies are increasingly turning to CRDMOs for efficiency and expertise.
New Age Therapies: The Next Frontier
Over the past two decades, the CDMO sector has rapidly evolved from producing basic intermediates to advancing into complex therapies such as antibody-drug conjugates (ADCs), gene therapy, and next-generation biologics. This move up the value chain means Indian companies are now handling more sophisticated, high-value projects, making them indispensable partners for global pharma. The GLP-1/weight loss drug segment, for example, is expected to see massive growth, with new weight loss and diabetes drugs projected to hit $140 billion in sales by 2030.
The surge in outsourcing is driven by two key factors: speed and savings. Outsourced R&D and manufacturing can dramatically reduce timelines and costs, clinical trial phases managed by CROs (Contract Research Organizations) are significantly faster than those done in-house. With drug development costs now reaching up to $3 billion per new drug, pharma companies are increasingly turning to CRDMOs for greater efficiency and expertise.
India’s Competitive Edge
- Talent: India produces more STEM graduates than any other country.
- Infrastructure: The highest number of FDA-approved facilities outside the US.
- Cost: Lower capex and manufacturing costs compared to global peers.
- Innovation: Rapid adoption of advanced technologies and modalities
The Road Ahead: Investing for Growth
Indian CRDMO companies are not resting on their laurels. They’re ramping up investments, expanding capacity, and moving aggressively into new therapeutic areas. For investors, innovators, and industry watchers, this is a story you’ll want to follow closely.
Source: *Frost & Sullivan, Anthem BIO RHP, Sai Life Sciences DRHP, JP Morgan India CRDMOs, Sep 2025, Macquarie India CRDMO - Dated Feb 2025, Jefferies - India CRDMO: A Firehose of Opportunities, dated August 2025
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