Healthcare and Lifesciences

Investment opportunities in Animal Health

12 May 2025

Investment Thesis

India’s rising role in the global animal health market

India is emerging as a critical hub in the global animal health ecosystem, backed by a strong domestic manufacturing base and growing export focus
The Indian animal health market is projected to grow from US$ 2.5B to US$ 4B by FY29, clocking a 9.6% CAGR, outpacing the global rate of 8.2% CAGR
The market is driven by increasing livestock populations, growing pet ownership, and rising awareness of animal disease prevention

Emerging Indian landscape

Major domestic players include Venky’s, Indian Immunologicals, and Hester Biosciences, alongside multinational companies expanding their footprint in India
Incumbent players are doubling down on next-gen vaccine development, with focus areas including: thermostable and multivalent formulations, recombinant and vector-based vaccines for FMD, PPR, and Brucellosis
Multinationals (e.g., Zoetis, Elanco) are deepening their India presence via partnerships and tech transfer models
Startups are targeting white spaces in: pet health and tele-vet platforms (e.g., Wiggles, Supertails), precision livestock monitoring using IoT and AI, and supply chains for last-mile reach

Strong policy tailwinds and government push

Policy support remains a key enabler, with national programs like the Rashtriya Gokul Mission (RGM) and Livestock Health & Disease Control (LH&DC) scheme aiming to improve productivity and disease management
India is also aligned with global health priorities through initiatives such as WHO’s One Health framework, driving integrated livestock-human-environment health models
Programs like NADCP are structurally expanding the market for vaccines, diagnostics, and surveillance infrastructure, offering long-term visibility for manufacturers and service providers

Robust financial performance and investor appetite

Industry leaders reported double-digit ROCEs and healthy EBITDA margins in FY24, highlighting the sector's capital efficiency
Investor momentum is rising, with US$ 506M deployed between CY21–CY24 across vaccines, diagnostics, and pharma-led models, reflecting growing institutional confidence