Research and development (R&D) spending by BSE 100 companies has grown steadily, rising from 0.89 per cent of revenue in FY20 to 1.32 percent in FY24, averaging around 1 percent over the period in-between, according to data compiled from Bloomberg and company annual reports.
Also, these companies more than doubled their R&D spending in absolute terms over these five years: From ₹25,041 crore to ₹63,072 crore.
While this reflects a prioritisation of innovation, corporate R&D investment remains relatively conservative. Experts note that only a handful of companies have significantly increased their R&D spend, indicating that India Inc still faces a long road in ramping up its innovation efforts.
Leading R&D spenders as a percentage of revenue for FY24 include Hindustan Aeronautics, Dr Reddy's Laboratories, and Lupin. Public-sector defence equipment manufacturer Hindustan Aeronautics allocated ₹2,826.24 crore to R&D, up 13.3 per cent year-on-year (Y-o-Y), representing 9.3 per cent of its ₹30,381 crore revenue. Key achievements included the indigenous design of a basic trainer aircraft and the maiden flight of the light combat aircraft (LCA) naval trainer prototype.
Dr Reddy's Laboratories invested ₹2,113 crore in R&D last financial year, a 21 percent increase Y-o-Y, amounting to 7.5 per cent of its ₹28,011 crore revenue. The pharma company focused on complex generics, biosimilars, and AI-driven drug development, introducing digital health solutions such as Nerivio for migraines and DailyBloom IBS for irritable bowel syndrome, it said in its annual report.
Another pharma major Lupin's R&D spend rose 17 per cent Y-o-Y to ₹1,484 crore, accounting for 7.4 per cent of its ₹20,011 crore revenue. The company is accelerating drug discovery through AI and expanding its biosimilar portfolio in international markets, according to its annual report.
هذه القصة مأخوذة من طبعة October 05, 2024 من Business Standard.
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هذه القصة مأخوذة من طبعة October 05, 2024 من Business Standard.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
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