By Suhel Khan
As the world’s largest supplier of generic drugs, renowned for its cost-effective vaccines and generic medicines, India plays a very important role in global medicine. The Indian pharmaceutical industry has transformed into a flourishing sector, currently ranking third globally in terms of production volume and 14th in terms of value. Over the past decade, the industry has grown at a compound annual growth rate (CAGR) of 9.43%.
With highest number of pharmaceutical manufacturing facilities approved by the US Food and Drug Administration (USFDA), India is home to around 500 active pharmaceutical ingredient (API) producers, accounting for approximately 8% of the global API market.
India supplies over 50% of the world’s vaccine demand, 40% of the generic drug demand in the United States, and 25% of all medicines in the United Kingdom. The pharmaceutical sector is a significant contributor to India’s economy, representing about 1.72% of the country’s GDP.
ALSO READREVEALED: These 2 stocks have just become DII darlings. Future multibaggers?
A report by EY and FICCI highlights that the Indian pharmaceutical market is projected to reach a valuation of US$ 130B by 2030, reflecting its robust growth trajectory and expanding global influence.
No wonder some of the leading DIIs in India have placed big bets on these 2 pharma giants.
#1 Wockhardt Ltd
Wockhardt is a global pharmaceutical and biotechnology organization engaged in manufacturing finished dosage formulations, injectables, biopharmaceuticals, orals and topicals (creams and ointments).
With a market cap of Rs 26,567 cr, the company is amongst the top 3 Indian generic companies in the UK and the 6th largest generic supplier in the retail and hospital channels in Ireland.
As of the quarter ending September 2024, the company had a DII holding of 5.08% which is now up to 9.82% as per the exchange filings made for the quarter ending December 2024. That’s a big jump within just three months.
3p India Equity Fund 1, HDFC Large and Mid-Cap Fund, Tata Small Cap Fund and ICICI Prudential ELSS Tax Saver Fund have all bought over 1% stake in the company just in the last quarter.
What is surprising is that Wockhardt’s sales have seen a drop from Rs 3,566 cr in FY19 to Rs 2,798 cr in FY24.
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