Indian companies remain in Russia but pharma exports may be affected

The Embassy of India states that there are an estimated 300 Indian companies in Russia, most of which are engaged in trade in tea, coffee, tobacco, medicines, rice, spices, leather shoes, granite, IT services and garments

The Embassy of India states that there are an estimated 300 Indian companies in Russia, most of which are engaged in trade in tea, coffee, tobacco, medicines, rice, spices, leather shoes, granite, IT services and garments

The Indian pharmaceutical company Dr. Reddy’s Laboratories Ltd. said Wednesday he was focused on business continuity in and around Russia as Indian drug exporters brace for temporary sales disruptions due to the Ukraine crisis.

No Indian company has publicly withdrawn from Russia, and New Delhi has declined to condemn Moscow’s invasion of Ukraine, despite pressure from the United States to do so. Western companies like McDonald’s, PepsiCo, Coca-Cola and Starbucks have stopped selling their most well-known products in Russia.

“We have had a presence in the region for over three decades,” said a spokesman for Dr. Reddy in an email.

“Ensuring the well-being of our employees is our top priority, with measures to meet patient needs and business continuity. Overall, we are closely monitoring the unfolding developments and preparing accordingly.”

It declined to say whether it would increase or scale back investment in Russia, which accounted for more than 8% of total sales of £189.7 billion ($2.47 billion) in its most recent fiscal year ended March 31. accounted for

dr Reddy’s, India’s fourth largest pharmaceutical company by market value, sells painkillers and other drugs in Russia. It is the main distributor in India for the Russian Sputnik COVID-19 vaccines.

Executives at Indian pharmaceutical companies Torrent Pharmaceuticals and Zydus Lifesciences said they saw little or no impact on sales due to the Ukraine conflict.

But the Indian Drug Manufacturers’ Association (IDMA) told Reuters that prices for raw materials derived from benzene or other petroleum products would rise because of the war and pharmaceutical exporters would have to look elsewhere for buyers.

“Overall drug demand will not fall, but temporary disruption may occur,” said IDMA President Viranchi Shah.

“The problem is the processing of payments from Russia” because of western sanctions. “It will take time to address as an alternative mechanism needs to be put in place,” he said.

An Indian government official, who asked not to be named, said the country is confident of finding alternative markets for its pharmaceutical industry if needed.

Pharmaceuticals accounted for 30% of India’s total exports to Ukraine at US$173.7 million between April and December last year. Sales to Russia during this period reached $386 million, or 15% of total shipments to the country.

The Embassy of India states that there are an estimated 300 Indian companies in Russia, most of which are engaged in trade in tea, coffee, tobacco, medicines, rice, spices, leather shoes, granite, IT services and garments.

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