DECEMBER, 20249TOP STORIESApple's growth in India has been supported by its key manufacturing partners--Foxconn, Pegatron, and Tata Electronics (formerly Wistron). Together, these firms have helped Apple leverage the incentives provided under the PLI scheme, introduced in 2020, to promote large-scale electronics manufacturing. The scheme has generated 1.10 lakh crore in revenue for the Indian government, delivering a 19-fold return on investment.Apple has achieved a significant milestone in India, fueled by the government's Production-Linked Incentive (PLI) scheme. Union Minister Ashwini Vaishnaw announced that the tech giant's iPhone production reached a freight-on-board (FOB) value of $10 billion between April and October 2024, marking a 37 percent year-on-year increase compared to the same period in FY24. This accomplishment underscores Apple's growing manufacturing presence in India.Of the $10 billion worth of iPhones produced, $7 billion were exported, setting a new record for Apple and the Indian electronics sector. The remaining $3 billion worth of iPhones were sold domestically. October 2024 proved historic, with iPhone production surpassing $2 billion in a single month for the first time.The initiative has also had a profound social impact. Over the past four years, Apple has created 175,000 direct jobs in India, with 72 percent of these positions being filled by women, signaling a shift towards inclusivity in the manufacturing sector.Apple's performance in India reflects its strategic focus on the market, which CEO Tim Cook has called an area of "extraordinary opportunity." Earlier this year, Apple recorded an all-time revenue high in India, driven by robust demand and increased local manufacturing capabilities. The pharmaceutical sector is poised for a positive trajectory over the next three years, with a healthy pipeline of innovative products expected in areas such as biosimilars, GLP-1, and peptides. These therapies are pivotal in treating conditions like diabetes and other chronic illnesses. Companies with a stronger focus on chronic portfolios continue to outperform the broader market, reinforcing their long-term growth potential.Meanwhile, the healthcare sector demonstrated an impressive 17.6 percent YoY growth in top-line revenue for Q2FY25, with a QoQ increase of 10.4 percent. Improved hospital occupancy rates, which rose by 340 basis points (bps) YoY and 470 bps QoQ, played a significant role in this growth. The hospital segment also benefited from insurance payers, who contributed 33 percent to total revenues, marking a 23 percent YoY and 12 percent QoQ growth. Major pharmaceutical companies in India recorded a robust 10 percent year-on-year (YoY) growth in the second quarter of FY25, fueled by strong performances in both North America and the domestic market, according to a report by Axis Securities. The Indian Pharmaceutical Market (IPM) also grew by 8 percent YoY, driven by a 9 percent increase in chronic therapies, while acute therapies saw more subdued growth of 4 percent, attributed to a weak season for these segments. The report stated, "The pharmaceutical universe under our coverage reported Q2FY25 growth of 10.2 percent YoY and 1.7 percent quarter-on-quarter (QoQ), driven by robust growth in North America (10.8 percent YoY) and the India business (9.8 percent YoY)." This solid performance underscores the sector's resilience and continued demand in key markets. Despite this, insurance penetration in the healthcare sector remains low, presenting substantial opportunities for future growth as health insurance awareness and purchasing power rise. High-growth therapies, particularly in cancer and cardiac care, continued to drive double-digit growth in hospitals. Combined with increasing occupancy rates and Average Revenue Per Occupied Bed (ARPOB), these trends are expected to sustain the momentum of growth in the healthcare industry. The report signals a promising outlook for both the pharmaceutical and healthcare sectors, supported by innovation, expanding insurance coverage, and rising demand for specialized therapies. DECEMBER, 20249GOVERNMENT'S PLI SCHEME MAJOR CONTRIBUTOR TO SMARTPHONE EXPORTSINDIAN PHARMACEUTICAL SECTOR GEARING TOWARDS INNOVATIVE THERAPIES
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