BSE 100 companies boost R&D, innovation challenges persist

R&D spend grows 152% in 5 yrs to ₹63,072 crore in FY24

- JADEN MATHEW PAUL

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.