India’ s emergence as a global agrochemicals CDMO hub
The Indian agrochemicals industry is confident about India gaining an edge over China as a CDMO destination, says Ambrish Dixit of Jubilant Ingrevia
Globally, the agrochemicals market is projected to reach around $ 297 billion by 2030, growing from $ 235 billion in 2023 and recording a compound annual growth rate( CAGR) of 3.39 %. This market covers crop protection chemicals, seeds, fertilisers and other products.
Valued at $ 88.2 billion in 2022, the global crop protection market is slated to touch $ 132.4 billion by 2032, registering a CAGR of 4.2 % during the forecast period. 1 Currently, India is the fourth largest manufacturer of agrochemical products after the US, Japan and China. 2
During the past couple of decades, India’ s CDMO landscape has seen steady growth in the chemical industry, with an estimated value of such exports from India being close to $ 3 billion. India’ s share began growing share with supply chain disruption in China, due to environmental norms and shipping issues.
Over time, India has built trust and is expected to grow beyond a 10 % share. However, building a thriving CDMO enterprise is never quick or easy since these rely on long-term partnerships with global innovators.
Key prerequisites for success
Global innovator companies used to run most of their activities in-house but, due to increasing capital cost in manufacturing operations and molecules turning more complex, alongside mounting cost pressures, outsourcing these operations to CDMOs made sense.
CDMOs manage a slew of activities right from early-stage process development to large commercial manufacturing. With them, process
12 SPECIALITY CHEMICALS MAGAZINE ESTABLISHED 1981