Eli Lilly has announced plans to invest more than $1 billion in India over the next few years to expand its manufacturing and supply capacity through collaborations with local pharmaceutical companies. The move is part of the company’s broader strategy to strengthen its global manufacturing network by tapping into India’s skilled workforce.
The collaborations aim to improve the availability of Lilly’s key medicines, including treatments for obesity, diabetes, Alzheimer’s disease, cancer and autoimmune disorders. “We are making significant investments to increase manufacturing and medicine supply capacity around the world,” said Patrik Jonsson, President of Lilly International. He added that India plays a crucial role as a hub for capability building within the company’s global operations.
The pharmaceutical giant, which launched its popular weight-loss drug Mounjaro in India earlier this year, currently does not own a manufacturing plant in the country. Instead, it works with several local firms that specialise in producing complex drugs, vials and injectables for large pharmaceutical companies.
“Lilly is actively engaging with contract manufacturers in India,” the company said, without sharing further details.
The investment comes amid a global push by drugmakers to expand production capacity, particularly in the United States, following the imposition of a 100 per cent tariff on imported branded and patented drugs from 1 October. Last month, Lilly announced a $5 billion investment in a new manufacturing facility in Virginia, as part of a $27 billion plan to build four new plants in the US over the next five years.
In India, the launch of Mounjaro, along with Danish drugmaker Novo Nordisk’s Wegovy, has raised awareness about obesity treatments. India is expected to have the world’s second-largest obese population by 2050. Sales of both drugs have reportedly doubled within months of their introduction.
Lilly also faces rising competition from Indian generic manufacturers that are preparing to launch more affordable versions of Wegovy once its key ingredient, semaglutide, loses patent protection next year.
In addition, Lilly is establishing a new manufacturing and quality facility in Hyderabad to strengthen its operations beyond its existing global capability centre in the city. The new hub will manage the company’s contract manufacturing network across India and offer technical expertise.
Recruitment for the Hyderabad site “will begin immediately,” Lilly confirmed, with plans to hire engineers, chemists, analytical scientists, quality experts and managers.
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