Manufacturing pharma in Russia: opportunities for Indian firms
Over the last two years, several Indian pharmaceutical companies have unveiled plans to build major production facilities in Russia. Indian businesses will reap the benefits from investing in Russia’s pharmaceutical industry, but production development is hampered by massive market competition and insufficient human resources.
India’s role in Russia pharmaceuticals: major investments and joint projects
According to Ernst & Young (EY) and the Organisation of Pharmaceutical Producers of India (OPPI), India’s pharmaceutical industry may be worth $130 billion by 2030, representing a threefold increase from 2022. By 2047, this figure could hit $450 billion. Today, India accounts for around 20% and 60% of the world's generic medicine and vaccine supply respectively and ranks third in the world for drug production.
In 2015, this sector accounted for 1.3% of India’s In 2025, its share reached approximately 1.72%, with collaboration with Russia being a major contributing factor. In 2023, India became the largest foreign drug supplier to the Russian market, which accepted 293.9 million packages of Indian pharmaceuticals, almost 3% more than the year before.
Shashi Shanker Parsad Singh,
Managing Director, Jodas Expoim:
Like Russia, India has programmes to support the development of key economic sectors, drug production included. Russia’s strong focus on supporting import substitution is a recent development, but we are happy that the Russian production environment welcomes Indian investment given our long-standing neighbourly relations. Indian expertise in the pharmaceutical industry coupled with supportive measures taken by Russia may well give rise to the development of sustainable, high-tech projects.
Some Indian companies have been working in Russia for years (including Indian pharmaceutical companies in Moscow). Dr. Reddy’s Laboratories, Jodas Expoim, and Hetero Labs all have representative offices in the country, but only Sun Pharma can boast of owning production facilities in Russia, having bought the Biosintez plant in Penza from Russian group Bioteq. At the same time, Indian drug manufacturers have been increasingly successful in Russia. According to Dr. Reddy’s Q4 & Full Year FY25 Financial Results, Dr. Reddy’s Russia revenues reached RUP 26.0 billion in FY25, representing a 16% year-over-year growth. This growth was largely on account of improved base business volumes, revenues from new launches and price increases in certain brands.
Indian entrepreneurs have launched several pharmaceutical companies in Russia as part of investments by Indian pharma groups. The Major pharmaceutical manufacturer Pharmasyntez was founded by Vikram Punia, while the Rus BioPharm Group that includes PSK Pharma was started by Satya Karm Punia. Advanced Pharmaceuticals, owned by Rajesh Sharma, opened a production facility in Belgorod in 2018 to manufacture drugs for HIV, TB, and cancer. In 2021, it bought an enterprise in Perm Region and launched the production of infusion solutions, and later pharmaceutical substances. Indian suppliers are among the key players in the Russian pharmaceutical market, says Nikolay Bespalov, Development Director at RNC Pharma. The company’s analysts claim that at the end of the January–May 2024 period, Indian pharmaceutical companies were being outperformed only by their Russian and German counterparts.
Source: RNC Pharma
According to RNC Pharma, by the end of the January–May 2024 period Indian pharmaceutical supplies to Russia had grown by 0.5% in volume and 18.5% in value. This significant difference is due to a fall in the value of the rouble and an increased share in the supply of more expensive drugs.
Leading Indian companies by supply volume, January–May 2024
Best-known products:
Omez
Nise
Ibuklin
Best-known products:
Sotret
Coldact
Cifran
Best-known products:
Irifrin
Mydrimax
Visallergol
Source: RNC Pharma
Top 10 manufacturing countries by value
Source: DSM Group
Satya Karm Punia,
President, Rus BioPharm Group:
The Russian market is growing fast and currently offers opportunities for those Indian companies that specialise in particular areas. This is not about regular tablets or capsules; Russian companies can produce those on their own. I’m referring to those niches where we see the greatest potential—for example, the manufacturing of technology-intensive products including biotechnological drugs, vaccines, and insulins. In these areas, Indian companies with sufficient experience and expertise can potentially expand their Russian assets in the form of local production facilities.
Examples of cooperation
In 2022–2023, several Indian companies announced plans to launch pharmaceutical projects in Russia worth a total investment of as much as RUB 10 billion. For example, Pharm Aid Ltd. is building a production facility in Kaluga Region to the south-west of Moscow. Back in 2017, the company agreed on technology licensing with Serum Institute of India, an Indian vaccine manufacturer, and Indian pharmaceutical company Zydus. According to Azamat Metov, Director General at Pharm Aid, Serum Institute of India was chosen as a “large, reliable, and trusted partner with experience working in Russia and ranking first in the world in terms of the number and quality of vaccines they produce.”
Azamat Metov,
Director General, Pharm Aid:
The market needs new players—and Indian companies in particular—to replace those from countries we aren’t so friendly with. Meanwhile, market development and investment are going to depend on the guarantees in place, especially those provided by the state. The policy focus should be on localisation. What we need are long-term contracts and other mechanisms to stimulate investment solutions.
Indian companies in Russia seeking support with cross-border transactions and market entry can access Sberbank’s services for business with Russia page for comprehensive financial solutions.
Background: India—Russia pharma collaboration
Joint drug production between India and Russia represents a strategic partnership built on complementary strengths. As of October 2025, negotiations were underway between pharmaceutical companies for establishing joint production facilities, with Indian firms actively exploring localisation opportunities in different Russian regions.
Furthermore, the Indian Business Alliance has announced plans to establish the largest API (active pharmaceutical ingredient) production centre in Russia, strengthening India’s position as a key supplier to the Russian market.
Key areas for localisation: generics, APIs, high-tech medications.
Finding room for growth
In Nikolay Bespalov’s view, despite claims of success, there has been no major expansion by Indian companies into Russia so far. This is first and foremost because none of the Western pharmaceutical manufacturers have really left the Russian market. Moreover, he says, those niches that could be occupied by Indian companies are well catered for by local players. However, this does not mean that India isn’t fully capable of expanding their activities in certain areas, such as vaccine prevention and high-tech products.
Satya Karm Punia also highlights the potential for Indian companies to manufacture technology-intensive medicines, vaccines, and insulins, including opportunities for the manufacturing of diabetes treatments. He believes the Russian market also presents an opportunity to companies that are not directly involved in pharmaceutical production, such as those developing reference samples for pharmaceutical production laboratories. Reference samples are used by pharmaceutical manufacturers as a standard in pharmaceutical production and, with American and European manufacturers no longer supplying these to Russia, they are largely imported via third countries. Many reference samples are bought by Russian pharmaceutical companies from overseas suppliers, mainly from India and China, and Karm Punia believes that Indian companies could successfully invest in this business in Russia. He also sees the potential for Indian producers of medical equipment and medicines that manufacture substances and intermediates, as well as spare parts for pharmaceutical production equipment.
Shashi Shanker Parsad Singh points out that it was "Russia’s steady shift towards pharmaceutical import substitution" that encouraged Jodas to move forwards with the construction of production facilities in the country, supporting the localization of drug manufacturing there. He says the drugs the company is planning to manufacture are on the list of critical pharmaceutical products drawn up by Russia’s Ministry of Industry and Trade, facilitating the registration of Indian drugs in Russia. At the same time, Satya Karm Punia cites Russia’s human resource deficit as a major obstacle. According to him, a possible solution might be to attract Indian specialists to work in the Russian market, since "Indian employees can carry out certain familiar tasks much more efficiently."
Challenges for Indian companies entering the Russian pharma market
The potential for registering drug analogues in Russia for Indian companies requires navigating regulatory frameworks while addressing market competition and resource constraints. Specialized therapeutic areas such as Indian analogues of antiparkinsonian drugs in Russia may represent niche opportunities; however, careful market assessment remains essential for commercial viability.
Future outlook: opportunities and strategic next steps
Indian medicine supplies and Russia’s pharmaceutical market needs align strategically as Russia diversifies its import sources. India’s pharmaceutical exports reached USD 30.47 billion in 2024–2025, growing by 9.4% YoY. This growth trajectory, combined with Russia’s evolving import structure, creates substantial opportunities for Indian pharmaceutical companies in the Russian market.