Contract development and manufacturing organisations (CDMOs) in India are stepping up capacity expansion and technology investments as global pharmaceutical companies increasingly outsource complex drug development and manufacturing work.
Executives from companies such as Sai Life Sciences, OneSource Specialty Pharma, and Akums Drugs & Pharmaceuticals say their investments aim to scale manufacturing infrastructure, strengthen research capabilities, and prepare for emerging opportunities in areas like drug-device combinations, peptides, and sterile injectables.
Hyderabad-based Sai Life Sciences plans to significantly expand its manufacturing footprint over the next five years. Krishna Kanumuri, managing director and chief executive officer, said the company aims to triple its manufacturing capacity to more than 2,000 cubic metres from about 700 cubic metres currently.
“We are adding about 500 cubic metres of capacity in the next 12 months and building a new site that can scale up to around 1,300 cubic metres,” Kanumuri said. He added that the expansion will focus not only on volume but also on higher-complexity technologies namely peptides, antibody-drug conjugates (ADCs), and oligonucleotides.
Sai Life Sciences has invested over ₹2,000 crore since FY20 in scaling up research and manufacturing capacity, establishing laboratories in Boston and Manchester, strengthening quality systems and adding technology platforms to accelerate development timelines.
Kanumuri said the company’s strategy is to build an end-to-end CDMO platform spanning drug discovery, development and commercial manufacturing. “We are probably the only company currently offering discovery through commercial scale manufacturing for innovators at scale,” he said.
At OneSource Specialty Pharma, the focus is on expanding capabilities in drug-device combinations and sterile manufacturing. Neeraj Sharma, chief executive officer and managing director, said the company had committed more than $75 million from its previously announced $100 million capital expenditure programme.
“These investments are primarily directed towards expanding our drug-device combination capabilities and enhancing our sterile fill-finish infrastructure,” Sharma said. The investments are intended to strengthen the company’s end-to-end platform and support customers preparing for upcoming global launches of GLP-1 therapies.
The company said capacity expansion is being rolled out in phases aligned with customer demand projections. As part of operational readiness, it has nearly doubled the headcount at its flagship drug-device combination facility during the year ended December 2025.
Meanwhile, Akums Drugs & Pharmaceuticals is investing across multiple dosage formats and facilities to strengthen its manufacturing network. According to Arushi Jain, director at the company, Akums spends around ₹250-300 crore annually on maintenance and growth capex.
The company recently added four new manufacturing blocks at its Baddi facility with an investment of about ₹150 crore. These units cater to oral solid dosage forms, liquids, steroidal formulations and oral oncology products. While the tablet, capsule and liquid blocks are operational, the remaining specialised facilities are expected to become fully commercial within the current year.
Akums has also commissioned a new WHO-GMP compliant injectables plant with a planned investment of about ₹200 crore. The facility will manufacture ampoules, vials, lyophilised vials, and form-fill-seal parenterals aimed at regulated global markets.
Industry executives say such investments reflect a broader shift in India’s pharmaceutical services sector toward higher-value development and manufacturing work. With global drugmakers increasingly seeking partners capable of supporting complex chemistries and advanced formulations, Indian CDMOs are focusing on technology-led capacity expansion rather than purely volume-driven manufacturing growth.
Kanumuri noted that technology capability will be critical for long-term competitiveness. “Our focus is on building scientific capabilities that will remain relevant five to ten years from now, rather than only expanding manufacturing infrastructure,” he said.
 "Indian CDMOs expand capacity as demand for complex drug work rises")
