Read the Conversation
Meeting highlights:
- India’s Growth Potential: India’s youthful population, highly skilled talent pool, and supportive government create a strong foundation for growth. Companies like Encube are leveraging these assets to expand globally from India.
- Encube’s Business Divisions across three key areas:
- CDMO serves over 30 countries globally.
- U.S. Generics, where, in just four years, it’s become a top 5 player in Topical space and aims for a top 3 position.
- The Indian market, launched in 2022, focused on developing a comprehensive OTC & wound care portfolio.
- Innovation-Driven Strategy: Encube’s success hinges on a commitment to affordability without compromising quality, backed by substantial R&D investments to deliver innovative, patient-centric solutions and maintain an uninterrupted supply chain.
- Future Vision: Encube sees India evolving beyond a high-volume market into a value-based ecosystem, with a focus on accessibility and sustainability, and high potential as an AI-driven manufacturing hub for the world.
EF: As a local leader in the industry, what new global opportunities do you see emerging for India’s pharma landscape?
AD: India's pharmaceutical industry has seen remarkable growth. Valued at $1 billion in 1986, it reached $5 billion by 2005. Government projections now estimate exports could hit $60 billion by 2025, $130 billion by 2030, and $500 billion by 2047, which aligns with Govt Viksit Bharat Vision by 2047 – 100 years post-independence.
This growth is driven by several factors, including India’s large and youthful population, which plays a key role in advancing this industry. India has long been a major exporter of pharmaceuticals, starting with active pharmaceutical ingredients (APIs) and moving into formulations. India exports to more than 200 countries, supplying around 50% of Africa's generic medicines, about 40% of generic drugs in the U.S., and roughly 25% of medicines in the U.K. This extensive reach has earned India the nickname “pharmacy of the world.”
India’s pharmaceutical importance was reaffirmed during the COVID-19 pandemic, as it supplied essential medicines and vaccines to many countries. India accounts for about 60% of the global vaccine demand and is a leading supplier of essential vaccines like DPT, BCG, and measles. About 70% of vaccines used in the World Health Organization's immunization programs come from India.
Moreover, India has strong educational institutions producing skilled talent, and there is an increasing emphasis on research, especially practical, application-based research. The government has supported the pharmaceutical sector, offering incentives, creating special economic zones across the country, and launching initiatives like the Production-Linked Incentive (PLI) scheme. India has immense potential in this field, and companies within India are working to capitalize on these opportunities to meet global demand.
EF: How does Encube address the growing healthcare needs worldwide?
AD: Encube is a pharmaceutical company based in Mumbai that focuses on topical dosage forms—products applied externally on the skin. We have been dedicated to this specialty for over 25 years. Skin, as the body’s largest organ, has historically not received the same attention as other areas of healthcare, though that has been changing recently with a growing awareness of skincare. We chose this niche because there is a global shortage of high-quality topical manufacturers. Encube was founded by Mr. Mehul Shah, a first-generation entrepreneur, who envisioned us as a leader in the topical space. Today, we are proud to be among this field’s top five derma generics companies in the USA.
Encube operates through three main business units to meet global demand. Our first business model is the CDMO (Contract Development and Manufacturing Organization), where we manufacture some of the biggest topical brands for our partners, including companies like Bayer, Galderma, Sanofi, and Reckitt. This model allows us to serve over 30 countries, from the U.S. to Japan, Europe, Brazil, the Middle East, Africa, Southeast Asia, and beyond.
Our second business unit focuses on the U.S. generic market. Under the Encube label, we provide a range of affordable topical generics, both OTC and prescription. In just over seven years, we have filed and received approval for over 50 Abbreviated New Drug Applications (ANDAs), making us the fifth-largest topical supplier by volume in the U.S. Our goal is to be among the top three in the next two years. We distribute to major group purchasing organizations (GPOs), pharmacies, and retail chains like Walmart, Walgreens, and CVS, covering both in-store and online platforms.
Our third area of focus is our Indian market, which we entered more recently in 2022 by acquiring a topical antibiotic previously owned by Sanofi. Beyond the acquisition, our goal was to address the often-overlooked wound care market. Minor injuries like cuts and burns are often neglected, but these can lead to serious complications if left untreated, especially for individuals with conditions like diabetes. We sell our wound care cream unit for under half a dollar, allowing it to be accessible everywhere in India. We currently sell millions of units across India. Our vision is to use this antibiotic as a core product to build a comprehensive wound care portfolio, ensuring these products remain affordable.
We realized that to truly establish ourselves amongst leaders in topical healthcare, we also needed to address neglected areas. This led us to launch a subsidiary called EnZen Therapeutics, which focuses on innovation for rare diseases.
Over the last decade, we have grown by 30% annually. Today, we employ around 1,400 people, touch nearly 100 million lives globally, and offer over 400 SKUs across 30+ countries. This is how we are positioning ourselves to lead in the evolving pharmaceutical landscape.
EF: What insights can multinational companies gain from local players like you in building more sustainable healthcare systems in India?
AD: Our success comes from focusing on three main principles: affordability with high quality, innovation, and customer-centricity. We prioritize making high-quality topical formulations accessible and affordable worldwide, using the same high standards across all product lines. To achieve this affordability, we rely on our large-scale manufacturing facility in Goa, one of the world’s largest for topical products, with a capacity of 500+ million units. This scale allows us to keep costs low and pass savings to our partners and customers.
Second, innovation is key for us, even though we operate mainly in the generics industry. We invest heavily in research and development, focusing on challenging and unique products.
Finally, customer-centricity is at the core of our business. Having started as a contract manufacturing organization (CMO), we have always put our partners and customers at the center of everything we do. This attitude is ingrained throughout the company, from top leadership to new hires. Whether for our B2B partners or direct consumers, we are committed to delivering safe and effective products.
EF: How are you attracting top talent and skill them to address future challenges in the sector?
AD: We started in 1998, with just 20 people. Since then, we have grown to a workforce of 1,400. Something unique about us is that 85% of our employees are under 35. We have a youthful and dynamic team, which is essential for innovation and disruption. We do not equate capability with years of experience; instead, we focus on upskilling our team, providing growth opportunities, and enabling talented individuals to advance quickly.
We recognize that the younger generation, in particular, wants meaningful, engaging work rather than repetitive tasks. They are the ones who will find new ways to tackle challenges, and our role as leaders is to create an environment where they can think creatively and explore better solutions. This younger team is the future of the company.
To attract new talent, we actively recruit from top colleges across India and have a year-long rotation program for new hires. They work in different teams to understand various roles, and based on their strengths and interests, we place them in the right function.
Our focus on digital transformation is a core part of our strategy. We are working toward a fully paperless manufacturing process by 2025. Quality systems and manufacturing processes are already on the path to being digitized, using tools like electronic batch manufacturing records (eBMR-MES) to eliminate manual entries and enhance data integrity. These systems capture and store data automatically, improving efficiency and accuracy and giving us valuable data for optimizing operations.
Looking ahead, we are exploring how AI can be integrated into manufacturing. By analyzing the vast amount of data we collect, we aim to streamline production, cut manufacturing time, and achieve cost efficiencies through process optimization.
EF: Why is a dollar invested in India better than invested elsewhere?
AD: India is currently at a major inflection point. Since gaining independence nearly 75 years ago, the country has developed into a thriving nation, and we are now positioned for exponential growth. The country now has a business-friendly government that actively supports economic growth. While India’s economy is already one of the top five globally, it will keep improving, especially as more people are entering the affluent class and increasing their purchasing power.
Another key advantage for India is its wealth of scientific and technical talent. Culturally, we are resilient and hardworking. Education is highly valued, and we see many Indian professionals holding senior positions in multinational corporations around the world. This talent pool positions India well for continued growth and innovation. Additionally, the government has implemented incentives that have spurred a thriving startup ecosystem, further driving economic growth.
India has also maintained a neutral stance in global geopolitics, which has helped keep the country stable and attractive for investors. Regarding the stock market, India has consistently delivered strong returns of around 12 to 15% in recent years, outpacing many other countries. This, combined with a stable currency, reassures investors that their investments will remain valuable. During the COVID-19 pandemic, India’s resilience and growth were evident. While many economies struggled, India managed to expand. Given all these factors, investing in India offers strong potential for returns, making it a compelling choice compared to many other markets.
EF: Beyond being known as the "pharmacy of the world," what new name would you predict for the country in the coming years as India advances into more innovative and specialized areas?
AD: India is on track to become the world’s leading hub for AI-powered manufacturing. AI is no longer optional—it is now part of our everyday reality. The pharmaceutical industry, which has traditionally followed more traditional practices, is set to undergo significant change with AI integration. Although AI research originated largely in the West, its widespread implementation will happen in the East. Major Indian tech companies like TCS, Wipro, and Infosys have already invested heavily in AI development, and it is only a matter of time before Indian companies begin incorporating these capabilities into their daily operations.
This shift could position India as a leader in the global movement toward digital health and affordable medicine. I can even imagine a harmonized regulatory system where a single product approval could apply across multiple countries, making getting medicine to patients globally easier.
EF: Do you have any final message for our readers?
AD: India is ready to adopt a more comprehensive and sustainable healthcare approach beyond high-volume, low-cost production. It is time to envision a broader role for the country in the global health industry. This shift requires focusing on innovation, quality, and environmental responsibility. We need to ensure that healthcare is accessible to everyone globally while prioritizing environmental stewardship. As leaders, it is our responsibility to make sure that every decision we make aligns with these values and supports this vision.
