Opening Markets

· Market Entry

· India

A phased market entry strategy for a leading Japanese pharmaceutical corporation

A leading Japanese pharmaceutical corporation with strong polymer science capabilities was ready to enter India’s rapidly growing single-use bioprocessing market. The Indian market is structurally complex, validation-intensive, and poorly mapped. Athaag was engaged to deliver a clear, evidence-based strategy for practical and scalable market entry.

Client

Global Advanced Materials Company

Geography

India

Status

Completed

Practice areas

Market Entry Life Sciences Commercial Strategy Ecosystem Mapping

$180M

India SUS market assessed (~20% CAGR)

40+

vaccine manufacturing sites mapped across biologics and CDMO ecosystem

The Task

Mapping a complex, validation-driven market to find the right entry path.

India’s single-use bioprocessing market presented a genuine opportunity, but also structural complexity that required careful unpacking. The market was heavily dependent on imported benchmark films, had high validation and qualification barriers, and offered limited pricing transparency. Switching behaviour across customer segments was conditional and risk-driven.

The mandate: conduct a comprehensive market entry assessment and deliver a phased strategy that minimised risk, identified the most accessible entry segments, and built a credible path to scale.

The Approach

7 steps. Commercial, technical, regulatory, and ecosystem analysis working together.

Step 01

Ecosystem assessment

Stakeholder engagement across the full value chain including film manufacturers, bag assemblers, and end-users across biologics, vaccines, and CDMOs. Insights were collected through interviews and then cross-referenced via benchmarking.

Step 02

Pricing and cost benchmarking

Conducted a price analysis across standard 2D and 3D bag configurations to establish market benchmarks. Film costs account for a significant proportion of total product value, making them the key driver of pricing and margins.

Step 03

Technical and quality evaluation

Assessment of differentiation across film structure, material properties, validation standards, compliance, and qualification maturity. While performance across films is largely comparable, we found that adoption is driven by quality documentation and in-depth validation.

Step 04

Customer behaviour analysis

Switching behaviour mapped across segments: biologics (validation-driven, low flexibility), vaccines (documentation-driven for export, cost-driven domestically), and CDMOs (commercially driven, highest flexibility).

Step 05

Identifying pain points and unmet needs

Key ecosystem challenges identified including high minimum order quantities, working capital pressure, dependence on imported film, and concerns around validation, integration, and supply reliability.

Step 06

Regulatory landscape assessment

Regulatory factors are a primary consideration for any new entrant in the healthcare sector. Our assessment confirmed that India’s framework does not restrict SUS substitution: no separate CDSCO licence is required for single-use bags, and neither film extrusion nor bag assembly faces any statutory licensing barrier. This regulatory reality was essential in defining the right entry pathway, and to distinguishing between what is procedurally controlled and what is statutorily restricted.

Step 07

Phased entry strategy design

A staged market entry approach built around starting with non-critical applications, entering via flexible segments such as CDMOs, demonstrating like-for-like equivalence through strong documentation, and scaling through partnerships with local assemblers.

The Analysis

Market entry is not about targeting the largest segment first. It is about targeting the segment most willing to adopt.

The most important market-entry signal is not market size but supplier-switching dynamics. With purchasing decisions driven largely by commercial considerations, CDMOs have the highest degree of flexibility. As a result, successful market entry depends on targeting segments in the order they are most likely to adopt, rather than pursuing the largest opportunity first.

The Outcome

A structured, risk-minimised market entry roadmap for one of India's fastest-growing life sciences segments.

Structured market entry strategy

A phased approach that minimises risk by prioritising validation credibility and gradual scale-up, matched to the real dynamics of each customer segment.

Targeted segment prioritisation

CDMOs and non-critical applications identified as the most accessible entry points, enabling faster adoption without triggering the validation lock-in risks of the biologics segment.

Partner-led market access

Key local partners identified to accelerate validation, provide installed base access, and enable scalable growth through the assembler ecosystem.

Long-term strategic clarity

The engagement established that sustainable success in India requires building credibility first, followed by scale and potential localisation, reframing the opportunity from a pricing challenge to a structured growth pathway.

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