Goldman Sachs in its equity report, added that Indian cos witnessed a major uptick in RFQs from global clients

PTI New Delhi

Indian pharmaceutical and biotech sectors have started witnessing tangible benefits from the global shift away from China, as early signs of the China+1 strategy materialising emerge, according to a recent Goldman Sachs report.

Some pharmaceutical and biotech companies report that they have started witnessing the conversion of earlier enquiries and Requests for Quotations (RFQs) into pilot projects and small contracts. The 'China Plus One' strategy is a business technique in which corporations diversify their manufacturing and supply chains by expanding into countries other than China while still keeping a presence in China. 

The credit rating firm, in its equity report, added that Indian companies witnessed a major uptick in RFQs from global clients looking to diversify supply chains away from China. While these developments indicate progress, the report also noted that large-scale financial gains from these shifts will take time, possibly a three- to five-years.

"After seeing a significant influx of enquiries/ RFQs over the past 1-1.5 years, management of some companies like Syngene, Neuland, Divi's, etc. have now started highlighting instances of conversion of RFQs to pilot projects/contracts, although large financial benefits will still take time to materialise," the report added.