AGROCHEMICALS know-how, capacity and the flexibility of adapting to diverse chemistries can be managed safely and seamlessly.
CDMOs that leverage the current conditions can enjoy longstanding benefits like long-term relationships, growing margins and healthy revenue streams. However, to reach this stage, CDMOs must be prepared for long gestation periods beginning with high initial investments, constant technical reiteration and moderate revenues.
The length of the breakeven timelines can vary. CDMOs in speciality chemicals, particularly agrochemicals, can be scaled up faster through existing commercialised molecules. Yet, this will only happen if they foster trust and consistency over prolonged periods of time with global innovator companies.
The steady transition
Gradually, the narrative began changing. An improved regulatory framework, a tremendous talent pool of chemists and engineers and substantially lower costs compared to Western geographies and the China + 1 approach began drawing attention towards India. Consequently, basic contract manufacturing of the early years has turned into fullservice CDMO offerings covering pharma, speciality materials and agrochemicals.
As per a Prophecy Market Insights report, the global agrochemical CDMO market was valued at more than $ 36 billion in 2024, which is anticipated to expand at a CAGR of 10.3 % to 2034.3 In this situation too,
India is well-placed, as multinational crop protection companies want to diversify their long-term supply chains.
In response to volatile global market conditions and rising cost pressures, many European and US-based companies have decided to move ahead with an asset-light strategy, focusing on core competencies such as R & D and marketing while outsourcing manufacturing to costefficient partners.
This shift has led to the closure of some production facilities, enabling these companies to optimise capital allocation, enhance flexibility and mitigate operational risks. As a result, opportunities for strategic partnerships with CDMOs in emerging markets like India have significantly increased.
The Indian advantage – and a few concerns
Global companies can expect some important advantages from India. The first is the higher cost competitiveness clients can expect due to the low energy, infrastructure and labour costs. India also has a big pool of process engineers and chemistry graduates, ensuring there are no human resource barriers.
With modular plant set-ups being common, fast execution of projects, capex and scale agility can all be expected. Since most international companies are diversifying their
JAN / FEB 2026 SPECCHEMONLINE. COM
13