Piramal Pharma's East-West integrated manufacturing model finds more takers in times of Trump's Tariff Regime

Mumbai based pharmaceutical major Piramal Pharma Ltd is seeing increased customer interest in its contract development and manufacturing (CDMO) business after US President Donald Trump’s recent tariff threats to discourage medicine imports into his country.

Piramal’s integrated manufacturing model allows companies to save costs by carrying out early stages of product manufacturing within India while avoiding Trump tariffs by getting final stages of the medicine manufacturing in its US facilities.

Trump had threatened pharmaceutical companies with additional tariffs if they continue to import medicines meant for sale in the US.

“We are seeing a general trend towards requests for proposals in the US. There is a lot of customer interest in our integrated manufacturing (model). For example, we make the first four stages of the drug in India and we do the last stages in Riverview, Michigan. Customers want that kind of connected, integrated, manufacturing arrangements, some of which may also reduce the risks of (Trump’s) tariff threats”, says Nandini Piramal, chairperson, Piramal Pharma.

The company has got 17 manufacturing sites across the US, India and the UK. “In this geopolitical era of volatility, it’s a good thing for us because we can help the customer solve their problem. There is a certain trend towards on-shoring, and some people want to do the final product in the US, but they also want to do many early stages (of manufacturing) in India so you can manage both the cost and the complexity”, Piramal explains.

In an exclusive interaction with Fortune India, Piramal said her company is one of those few firms that offer both East and West manufacturing (options). She also pointed out that their investments in new modalities of pharma, including capabilities in the development and manufacture of antibody-drug conjugates, high-potency active pharmaceutical ingredients, sterile fill-finish, etc are not that common as standard oral solid-dose or API provide an edge to Piramal’s CDMO business.

The company’s impeccable record of maintaining quality standards is another reason for its attractiveness. “We got 15 years without an OAI (Official Action Indicated, means regulatory, administrative actions that are recommended by US drug regulator after inspections). We probably host about 200 regulatory audits annually across our 17 sites, which means, you are hosting an audit every month. So you are very, very audit-ready”, she says.

The CDMO business accounted for 55.3% of the company’s Rs 8,869 crore revenues in FY26. In fact, the company generates 80-85% of its revenues from international business. Piramal said she expects her company to register mid-teens revenue growth and significant EBITDA and PAT improvement this year, with CDMO scale-up driving operating leverage and approximately $100 million of planned capital expenditure across several facilities.

Complex hospital generics business, with 30% share in overall annual revenues and an India centric consumer healthcare business that accounted for 14% of the company’s revenues in FY26 are the other two business streams for Piramal Pharma. Piramal said she expects

consumer healthcare, the smallest of the three verticals to growing rapidly, with five power brands receiving concentrated investment and the company targeting more than Rs 1,500 crore in Piramal-owned brand revenue by 2030.

The company’s 2030 vision has CDMO business at its centre. It wants the business vertical to generate $ 1.2 billion with ~25% EBITDA Margin by FY2030. The 2030 target for its critical care or complex hospital generics vertical is $ 600 million, and $ 200 million for the consumer healthcare business.

Piramal said the plan to become a $2 billion company by overall revenues by 2030 is well on track and its CDMO business is expected to produce the largest revenue and margin change as it reaches greater scale.