Thermo Fisher Scientific Inc. (NYSE:TMO) expects its customer base in India to grow 15% to 20% over the next five years, fueled by the country’s expanding biopharmaceutical research and manufacturing industry.
The U.S. maker of laboratory equipment, analytical instruments, and genetic analysis products expects to maintain double-digit growth in India.
Reuters on Monday noted that the upward trajectory is being actively fueled by escalating requirements across the biopharma, clean energy, and semiconductor industries.
Boosting Demand Across Sectors
Srinath Venkatesh, the company’s managing director for India and South Asia, highlighted the evolving domestic landscape in the Reuters report. He noted that as local laboratories increasingly adopt strict global quality standards, integrating the company’s specialized products becomes essential.
While keeping the exact current client figures confidential, he emphasized that the continuous emergence of high-quality testing facilities directly expands their target market.
Furthermore, Venkatesh pointed out that the rising focus on obesity-related medications among Indian pharmaceutical enterprises presents another significant avenue for product demand.
Strategic Regional Investments And Workforce Expansion
Globally, the Asia-Pacific region represents approximately 18% of the corporation’s overall revenue.
According to Tony Acciarito, president for the Asia Pacific, Middle East, and Africa divisions, India stands out as one of their fastest-accelerating markets, already contributing substantial top-line gains.
Acciarito emphasized that the business expects this robust compound annual growth rate from India to persist, a trend heavily supported by intentional and increased regional investments compared to previous years.
To adequately support this broadening regional footprint, the enterprise intends to grow its current Indian workforce of more than 5,000 employees. Moving forward, the hiring strategy will place a specific focus on increasing personnel in customer-facing positions to maintain pace with the expanding market.
Earnings Snapshot
Thermo Fisher Scientific recently reported second-quarter adjusted earnings of $6.03 per share, beating the street view of $5.71.
The life science giant’s quarterly sales of $11.994 billion increased 10% year-over-year, beating the analyst consensus estimate of $11.701 billion. Organic revenue growth was 5%.
In an earnings conference call, the company noted that good customer activity continues to strengthen across end markets.
TMO Stock Price Activity: Thermo Fisher Scientific shares were up 0.01% at $599.75 at the time of publication on Tuesday, according to Benzinga Pro data.
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