Indian CDMOs Ramp Up Capacity to Meet Demand for Complex Drugs

Indian CDMO players are aggressively expanding manufacturing capacity and pouring investments into advanced technologies as global pharmaceutical companies ramp up outsourcing for complex drug development and manufacturing.

Contract development and manufacturing organizations (CDMOs) in India are stepping up efforts to meet this rising demand.

Executives from leading firms highlight a strategic shift toward technology-driven growth, focusing on capabilities for high-complexity areas rather than simple volume increases. This includes specialized work in peptides, antibody-drug conjugates, oligonucleotides, drug-device combinations, and sterile injectables—particularly those supporting GLP-1 therapies for obesity and diabetes.

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Hyderabad-based Sai Life Sciences is planning to triple its manufacturing capacity from around 700 cubic metres to over 2,000 cubic metres in the coming years. The company intends to add about 500 cubic metres in the next 12 months and develop a new site that can scale to roughly 1,300 cubic metres.

Its focus remains on higher-complexity segments like peptides, ADCs, and oligonucleotides. Since FY20, Sai Life Sciences has invested more than INR 2,000 crore in research, manufacturing, labs in Boston and Manchester, quality systems, and technology platforms to build an end-to-end CDMO offering from discovery through commercial manufacturing.

Krishna Kanumuri, MD & CEO of Sai Life Sciences, emphasized building capabilities for the long term: "Emphasis on building capabilities relevant for the next 5–10 years, not just infrastructure."

OneSource Specialty Pharma has committed over USD 75 million from a USD 100 million capex program, mainly to boost drug-device combination capabilities and sterile fill-finish infrastructure. Expansions roll out in phases aligned with customer needs, and the firm has nearly doubled headcount at its flagship drug-device facility by December 2025. It plays a key role in global launches of GLP-1 therapies.

Neeraj Sharma, CEO & MD of OneSource Specialty Pharma, noted: "Investments strengthen the end-to-end platform for customer product launches."

Akums Drugs & Pharmaceuticals maintains an annual capex of INR 250–300 crore for both maintenance and expansion. Recent projects include a INR 150 crore investment in four new manufacturing blocks at Baddi for oral solid dosage forms, liquids, steroidal formulations, and oral oncology products—most now operational, with specialized blocks going fully commercial this year. Additionally, it invested INR 200 crore in a new WHO-GMP compliant injectables plant capable of handling ampoules, vials, lyophilised vials, and form-fill-seal parenterals, aimed at regulated global markets.