Sanofi plans to invest EUR400mn over six years to expand its Hyderabad GCC, focusing on AI capabilities and hiring data scientists. This reflects confidence in India’s pharmaceutical market growth.
Latest Development: On July 17 2024, Sanofi announced its plans to invest EUR400mn (USD435mn) over the next six years to expand its global capability centre (GCC) in Hyderabad, India by increasing the headcount and further developing the facility. This includes a focus on hiring data scientists and engineers to bolster their artificial intelligence (AI) capabilities. In addition, the Hyderabad GCC will collaborate closely with stakeholders in the US and France in handling documentation for clinical drug trials. Over the next two years, Sanofi plans to more than double the headcount at the Hyderabad GCC to 2,600 employees, making the centre the largest of its four hubs globally.
Forecast Implications: The substantial financial commitment by Sanofi indicates strong confidence in the potential of India’s pharmaceutical market and its capabilities. While we don’t anticipate this will have a direct impact on market sales, the investment by Sanofi reflects the positive growth outlook for India’s pharmaceutical market. In 2023, we calculate that India’s pharmaceutical market was valued at INR2,745bn (USD33.2bn), experiencing a 6.8% increase from 2022 in local currency terms. Over the forecast period to 2028, we forecast that the pharmaceutical market will reach a value of INR3,728bn (USD42.9bn), experiencing a compound annual growth rate (CAGR) of 6.3% in local currency terms (5.3% in US dollar terms). Over the extended forecast period, medicine sales will experience a 10-year CAGR of 6.0% and 4.5% in local currency and US dollar terms respectively, reaching INR4,934bn (USD51.4bn) by 2033.
Sanofi, a global healthcare leader, has announced a significant investment in India’s pharmaceutical sector, signaling a promising future for the industry. This move will not only enhance Sanofi’s manufacturing capabilities but also foster innovation and competitiveness. By establishing state-of-the-art facilities and research centers, Sanofi aims to tap into India’s skilled workforce and burgeoning market demand.
India’s pharmaceutical sector, known for its generics production, stands to gain immensely from Sanofi’s expertise in drug development and global distribution networks. The infusion of capital and advanced technology will likely spur job creation and drive economic growth. Furthermore, it positions India as a critical player in the global pharmaceutical landscape, capable of meeting both domestic and international health needs more efficiently.
This strategic investment aligns with the Indian government’s initiatives to modernize the healthcare infrastructure and promote foreign direct investments (FDI). As Sanofi strengthens its footprint, the collaboration could pave the way for enhanced healthcare outcomes, increased exports, and a robust supply chain system, ultimately contributing to India’s vision of becoming a global pharma hub.
Source : Quick View: Sanofi’s Investment Will Boost India’s Pharmaceutical Sector