Eli Lilly to Invest Over $1 Billion in India to Expand Manufacturing Capacity

Eli Lilly (LLY.N) announced on Monday that it will invest more than $1 billion in India over the coming years to expand manufacturing and supply operations through partnerships with local pharmaceutical companies. The U.S. drugmaker aims to leverage India’s skilled workforce as part of its broader global manufacturing expansion strategy.

The initiative seeks to increase the availability of Lilly’s key therapies, including drugs for obesity, diabetes, Alzheimer’s disease, cancer, and autoimmune disorders.

Patrick Jonsson, President of Lilly International, said, “We are making significant investments to expand manufacturing and medicine supply capacity worldwide. India is a key hub for building that capacity within our global network.”

Lilly, which launched its blockbuster weight-loss drug Mounjaro in India earlier this year, does not currently operate its own manufacturing facility in the country. India, however, is home to numerous contract manufacturers specializing in complex drugs, vials, and injectables for major global pharmaceutical firms.

“Lilly is actively engaging with contract manufacturers in India,” the company told Reuters, without providing further details.

The investment plan comes as global drugmakers race to expand production outside the U.S., following the Trump administration’s decision to impose 100% tariffs on imported branded and patented medicines starting October 1.

Last month, Lilly announced a $5 billion investment in a new facility in Virginia — part of a $27 billion, five-year plan to build four new manufacturing plants across the United States.

Meanwhile, along with Danish drugmaker Novo Nordisk (NOVOb.CO), the launch of Mounjaro in India has significantly boosted awareness about obesity treatments in a country projected to have the world’s second-largest obese population by 2050.

Sales of both companies’ obesity drugs have doubled within months of their launch.

Lilly is also preparing for growing competition from Indian generic drugmakers, which are racing to introduce cheaper versions of Novo Nordisk’s Wegovy after the patent for its key ingredient, semaglutide, expires next year.

Additionally, Lilly is setting up a manufacturing and quality center in Hyderabad, expanding its footprint beyond the city’s existing Global Capability Center.

The new facility will oversee Lilly’s contract manufacturing network across India and provide advanced technical capabilities.

Recruitment for the Hyderabad center will begin immediately, with plans to hire engineers, chemists, analytical scientists, quality assurance and control specialists, and operations managers, the company said.