Mumbai-based Kilitch Drugs Ltd plans to enter biosimilars and oral solids, including diabetic and weight-loss tablets, and is expanding its manufacturing capacity with a new facility in Khopoli, Maharashtra
While Indian pharmaceutical giants are already vying to capture the growing weight-loss drug market, small-cap firms are also eyeing a share of the pie, anticipating a post-patent-expiry boom as key obesity drugs near the end of their exclusivity.
Mumbai-based Kilitch Drugs Ltd., a small-cap pharma company operating in India and Ethiopia, is making strategic moves to tap into this opportunity. The company plans to enter biosimilars and oral solids, including diabetic and weight-loss tablets, and is expanding its manufacturing capacity with a new facility in Khopoli, Maharashtra.
“Many pharmaceutical companies are entering this space due to its growth potential. As patents expire, regulatory filings will begin, and that’s when we plan to enter the market,” Bhavin Mukund Mehta, Whole-Time Director of Kilitch Drugs, told Business Today.
According to IQVIA, a global healthcare analytics and clinical research firm, global spending on anti-obesity drugs surpassed $30 billion in 2024, driven by the adoption of semaglutide (Wegovy) and tirzepatide (Mounjaro). Studies published in PubMed Central (PMC), a free digital archive of biomedical and life sciences literature, managed by the U.S. National Institutes of Health’s National Library of Medicine (NIH/NLM) estimate that India has around 350 million obese individuals, highlighting a significant market opportunity.
According to Fortune Business Insights, a research and analytical firm the global anti-obesity drugs market was valued at approximately $4.51 billion in 2023 and is projected to reach $37.94 billion by 2032, growing at a CAGR of 25.5%. In India, the market generated $183.4 million in revenue in 2023 and is expected to expand to $2.62 billion by 2030, with a CAGR of 46.2%, according to Grand View Research.
With semaglutide’s patent expiry approaching, Indian pharmaceutical firms such as Sun Pharma, Cipla, Dr. Reddy’s, and Lupin are developing their own GLP-1 receptor agonists. Sun Pharma’s Utreglutide (GL0034) is set for mid-stage trials this year, with a launch expected in five years. To encourage domestic production, the Indian government’s Production Linked Incentive (PLI) scheme aims to support weight-loss drug manufacturing post-2026 patent expirations.
While larger players expand in this segment, Kilitch Drugs is strengthening its position through diversification. The company expects to generate ₹200 crore in revenue this financial year, despite logistical challenges in Ethiopia, and has earmarked ₹100 crore in capital expenditure for further growth.
“We were the second company to set up a factory in Ethiopia. Over the years, we have expanded and performed well, reporting 222% year-on-year growth alongside increased profitability,” Mehta said. Kilitch operates under two business models: contract manufacturing in India, focusing on injectables, and international expansion, exporting to over 38 countries, including East, West, and Southern Africa, as well as ASEAN markets like the Philippines, Myanmar, and Cambodia.
“In some export markets, we sell under our own brand. We have built a reputation for specialised formulations, positioning ourselves as a key supplier,” Mehta noted.
Kilitch’s upcoming Khopoli facility, spanning 15 acres with a 20,000-square-meter construction area, is expected to be commissioned in Q3FY25. “We anticipate revenue generation post-validation,” Mehta added. The facility is designed for scalability, with an additional 200,000 square feet of potential expansion.
The company is also working towards regulatory approvals. “By 2026, we aim for accreditation by the European Medicines Agency (EMA) or the US FDA. However, our initial focus will be on Rest of the World (ROW) markets, as entering the US requires significant financial resources,” Mehta explained.
To streamline market entry, Kilitch is targeting countries that recognise approvals from stringent regulatory authorities, such as Europe, Australia, and the Gulf Cooperation Council (GCC). “This will allow us to bypass lengthy inspection processes that delay sales and revenue generation,” he added.
Kilitch Drugs reported a 222% YoY rise in consolidated net profit to ₹5.61 crore in Q3FY25, with revenue up 77% YoY to ₹56.17 crore. On a standalone basis, net profit grew 25% YoY to ₹6.88 crore, while revenue increased 56% YoY to ₹46.51 crore.
Source : Businesstoday
Local Love: Partnering with kirana stores or local suppliers could offer fresher produce and lower logistics costs, appealing to value-driven shoppers.
Industry voices paint a mixed picture. RedSeer predicts the e-grocery sector will grow eightfold in five years, but competition will intensify. Menon’s optimism about BigBasket’s quick commerce trials in tier-3 cities like Bareilly hints at adaptability. Yet, skeptics like TVS Capital’s Gopal Srinivasan call quick commerce a “passing fad,” questioning its long-term viability. Flipkart’s new grocery hub in Malda, handling 7,000+ orders daily, signals that investment isn’t slowing.
The Verdict: Game On, Not Over
So, is it curtains for traditional e-grocery? Not quite. Quick commerce may dominate orders, but traditional players hold a revenue edge and a loyal customer base that values more than speed. The catch? They must evolve-fast. Smaller outfits might carve out niches or partner locally, while giants like BigBasket blend quick and scheduled deliveries. The $64.20 billion prize by 2028 is up for grabs, and there’s room for both if traditional e-grocery plays smart.
The real story isn’t about winners and losers-it’s about adaptation in a market where convenience is king, but value still reigns. As India’s e-grocery war heats up, one thing’s clear: the game’s far from over.
Source : Logisticsinsider
Niche is the New Normal: Focus on bulk orders, premium brands, or organic goods where speed takes a backseat. Think artisanal cheeses or imported spices-items Zepto won’t rush to your door.
Loyalty Over Lightning: BigBasket, a traditional giant, has built trust with celebrity endorsements like Shah Rukh Khan. Subscription models or personalized offers could keep customers coming back.
Tech to the Rescue: Al-driven inventory management and demand forecasting can cut costs and boost efficiency, leveling the playing field (Grand View Research).
Hybrid Hustle: Some are dipping toes into quick commerce. BigBasket’s CEO Hari Menon says, “Our slotted category AOV is around Rs 1,300-1,400, and quick commerce is over Rs 500” (Business Standard, 2024). Their 10-minute delivery push shows a hybrid model might work-but it’s a costly pivot for smaller players.
