Best 5 CDMO Pharma Companies In India

India’s pharmaceutical industry has emerged as a global hub for Contract Development and Manufacturing Organizations (CDMOs). This industry in India is offering a comprehensive service starting from drug development to manufacturing driven by cost-effective manufacturing capabilities, a skilled workforce, and adherence to international quality standards.

Indian pharma industry ranks third globally by volume and 14th by value, that reflect India as a major player in generic drug production. The country supplies over 50% of global demand for various vaccines and 40% of generic demand in the US. The Indian pharmaceutical industry is expected to grow at a CAGR of 11-12% from 2024-2028, driven by exports and domestic market expansion.

The Indian CDMO market is valued at $13 billion in 2024. The total addressable market for CDMO pharma companies in India is approximately $20 billion by 2029. This industry is expected to grow at a CAGR of 10-12% driven by increased API exports, strategic partnerships with global pharmaceutical companies, and rising R&D investments.

Global and Indian CDMO Market Overview

The global CDMO market is experiencing robust growth. In 2023, it was valued at approximately USD 225.58 billion and is projected to reach USD 489.99 billion by 2032, growing at a compound annual growth rate (CAGR) of 9.1% during the forecast period.

This rapid growth underscores India’s expanding role in the global pharmaceutical supply chain. The Contract Development and Manufacturing Organization (CDMO) market has emerged as a critical segment of the pharmaceutical value chain. India is ready to play a bigger role in this value chain.

I was studying this industry to learn more about these CDMO companies and the potential of this market due to increasing US tariffs on Chinese products. Let us analyse the best 5 CDMO pharma companies in India to invest in.

Before investing in any of these CDMO companies please assess the valuation of the company and take the help of your financial advisor. This article will help you to know the best CDMO companies in India and their current position and future potential.

Best 5 CDMO pharma companies in India

Divi’s Laboratories Limited

Divis lab is one of the best CDMO companies in India committed to innovation and process excellence.
Founded in 1990, Divi’s Laboratories is led by Managing Director Murali K. Divi, who has been instrumental in steering the company towards becoming a leading manufacturer of Active Pharmaceutical Ingredients (APIs) and intermediates.
The company reported a revenue of ₹8,002 crore in FY2024 with profit after tax of ₹1,576 crore, reflecting robust operational efficiency.
With facilities in Hyderabad and Visakhapatnam, it operates one of the largest API manufacturing capacities globally.
Strong export footprint with over 90% of revenue generated from international markets.
The company is expanding API capacity and venturing into greenfield projects, with a focus on high-growth therapeutic areas like nutraceuticals.
The company is constructing a new manufacturing unit in Kona, Kakinada district of Andhra Pradesh, over 500 acres. The first phase, expected to be operational by FY25, involves an investment of ₹1,200-1,500 crore.
This expansion aims to meet the growing global demand for APIs and intermediates, enhancing production capacity to serve a broader international clientele.
With 70% of its revenues coming from the U.S. and Europe, Divi’s plans to strengthen its presence in these markets through increased capacity.
This CDMO company stock price is trading at 90 PE which is at higher valuation while the price to book value is 12. The company is zero debt with average sales growth is above 8% in last 3 years.

Laurus Labs Limited

Laurus Labs is headed by CEO Dr. Satyanarayana Chava, who founded the company in 2005. Under his leadership, Laurus has become a research-driven pharmaceutical company specializing in APIs, generics, and biotechnology.
Laurus Labs the best CDMO company in India, leverages its expertise in APIs and formulations, emphasizing sustainability and innovation.
This CDMO company registered a strong revenue from operations of ₹5,041 crore, with an EBITDA of ₹798 crore in FY2024.
Operates 12 manufacturing sites in India, supported by five R&D centers; specializes in ARVs, oncology, and cardiovascular APIs.
Generates 61% of revenue from exports, catering to North America, Europe, and emerging markets. Laurus Labs operates in over 80 countries.
The company is investing in biotechnology, expanding fermentation capacities, and strengthening its CDMO capabilities.
The company is in the midst of a ₹990 crore expansion to enhance its manufacturing capabilities.
The expansion is designed to support the increasing demand from U.S. and European customers,
Laurus aims to bolster its footprint in the U.S. and Europe, leveraging expanded capacity to serve these key markets more effectively.
The Laurus labs share price trades at 233 PE and 7.4 PB. Currently the valuation of the company is very high.
One part of this company that I do not like is its shareholding pattern. Promoters are holding only 27.18% while public holding is 33.7%.
Though the company is the best in its product, but not the best for investment at present.

Dishman Carbogen Amcis Limited

Dishman is one of the best CDMO companies in India, led by Global Managing Director Arpit Vyas, who oversees its global operations across multiple countries.
The company positions itself as a leader in CRAMS (Contract Research and Manufacturing Services), with robust global partnerships.
Revenue of ₹2,616 crore with an adjusted EBITDA margin of 15.6% in FY2024. The profit after tax is negative for last three years.
Global presence with 25 manufacturing facilities across India, Switzerland, and France.
Predominantly serves European and Asian markets, with a strong pipeline for sterile injectables and high-potent APIs.
The company is expanding sterile injectable capabilities in France and ramping up API production to target new geographies.
Dishman has expanded its footprint through acquisitions, including sites in Riom, France (2012), and Vionnaz, Switzerland (2014).
These expansions aim to enhance the company’s capabilities in drug development and commercialization services, particularly in high-potency APIs and antibody-drug conjugates.
This CDMO company operates in India, Europe, China, and Japan, focusing on markets with high demand for specialized pharmaceutical services.
The valuation of the company is quite cheap in compare to the above CDMO companies. The PE is zero as the EPS of the company is still negative for last four quarters.
If US market revives, this company may be a turnaround story.

Jubilant Pharmova Limited

Jubilant Pharmova is led by Chairman & Managing Director Shyam S. Bhartia and Co-Chairman & Managing Director Hari S. Bhartia, who have diversified the company’s operations across pharmaceuticals and life sciences.

Jubilant’s strategy revolves around diversification into radiopharmaceuticals, allergy treatments, and sterile injectables.
Revenue of ₹6,702 crore with EBITDA growth of 20% to ₹993 crore in FY2024.
Comprehensive manufacturing network in the US, Canada, and India; expanding sterile injectable production.
Strong presence in North America with plans to penetrate European and Asian markets further.
Investing in radiopharma and expanding PET radiopharmacy networks in the US
The company is investing $370 million to double its sterile injectables capacity in Spokane, USA, and Montreal, Canada, over the next five years.
This investment aims to meet the growing demand for sterile injectable products in North America.
The focus is on expanding operations in North America, leveraging existing facilities to serve the U.S. and Canadian markets.
This is one of the best CDMO companies in India to invest in. However, the valuation of this company looks reasonable with PE-33.14 and PB-3.31 and EPS-37.24.
The share holding pattern of the company is also good.

Akums Drugs & Pharmaceuticals Limited

Founded in 2004 by Sanjeev Jain and Sandeep Jain, who serve as Managing Directors.
Akums is India’s largest contract manufacturer of generic medicines, serving over 1,500 clients as of FY2024.
Achieved 17% revenue growth in CDMO operations in FY2024; controls 30% of India’s domestic CDMO market.
Operates 15 manufacturing facilities across India, including four R&D centers.
Registered 1,500+ products in 60 countries, with EU GMP accreditation enabling European market entry.
The company listed on 6^th August 2024 in Indian exchanges such as BSE and NSE.
In October 2024, Akums partnered with Microcore Research to develop dietary supplements using natural eggshell membrane.
Akums acquired a manufacturing facility from Ankur Drugs and Pharmaceuticals Limited in April 2022 and another in Baddi to augment tablet production.
These acquisitions aim to increase production capacity to meet domestic and international demand.
With EU GMP certification for two units in Haridwar, Akums is poised to enter European markets.
The Akums Drugs share price is trading at 3.36 price to book. The company is earning decent profit with EPS reported at 4.26 in September 2024.
At present the Akum share price is trading below its IPO listing price.

Also Read

The Best CDMO pharma company

India’s CDMO sector presents promising investment opportunities, supported by a favorable market outlook and the presence of globally competitive companies. These CDMO companies can be good opportunity to invest in CDMO Pharma companies. However, the valuation of few companies is quite high to invest at current price. I find Jubilant Pharmova is the best cdmo pharma company by looking at its valuation and future potential. Jubilant Ingrea is also another company of this group to consider for further analysis.