Thermo Fisher Scientific Inc. (Thermo Fisher (TMO)) is betting big on India. The company expects its customer base in the country to grow by 15% to 20% over the next five years, driven by India's booming biopharmaceutical research and manufacturing sector.
The U.S. maker of lab equipment, analytical instruments, and genetic analysis products is seeing double-digit growth in India, and it doesn't expect that to slow down anytime soon. According to a Reuters report on Monday, the surge is being fueled by increasing demand across biopharma, clean energy, and semiconductor industries.
Boosting Demand Across Sectors
Srinath Venkatesh, the company's managing director for India and South Asia, told Reuters that India's domestic landscape is evolving rapidly. As local labs adopt stricter global quality standards, they increasingly need Thermo Fisher's specialized products. While he didn't disclose exact client numbers, he noted that the steady emergence of high-quality testing facilities is directly expanding their target market.
Venkatesh also pointed to another promising trend: Indian pharmaceutical companies are increasingly focusing on obesity-related medications, which creates additional demand for Thermo Fisher's products.
Strategic Regional Investments And Workforce Expansion
Globally, the Asia-Pacific region accounts for about 18% of Thermo Fisher's total revenue. Tony Acciarito, president for the Asia Pacific, Middle East, and Africa divisions, says India is one of their fastest-growing markets and already contributing significantly to top-line growth.
Acciarito emphasized that the company expects this strong compound annual growth rate from India to continue, supported by deliberate and increased regional investments compared to previous years. To keep up with the expanding market, Thermo Fisher plans to grow its Indian workforce, which currently numbers over 5,000 employees. The hiring strategy will focus on adding customer-facing roles to stay ahead of demand.
Earnings Snapshot
Thermo Fisher recently reported second-quarter adjusted earnings of $6.03 per share, beating the street view of $5.71. Quarterly sales came in at $11.994 billion, up 10% year-over-year and ahead of the analyst consensus of $11.701 billion. Organic revenue growth was 5%.
During the earnings call, the company noted that customer activity continues to strengthen across end markets. Thermo Fisher shares were up 0.01% at $599.75 at the time of publication on Tuesday.
