Prime Minister Narendra Modi's "Daam Kam, Lakin Dum Zyada" Mantra for Manufacturers: Focus on Quality Products at Reasonable Prices

Prime Minister Narendra Modi has called on entrepreneurs and industries to focus on manufacturing high-quality products at reasonable prices. He emphasized the importance of quality in the global market and encouraged a mantra of "daam kam, lakin dum zyada" or lower prices, but higher quality. The government is working on a national manufacturing mission to support domestic production and promote self-reliance. Modi also urged citizens, shopkeepers, social media influencers, and political parties to champion India-made goods under the "Vocal for Local" initiative.

Prime Minister Narendra Modi's call for high-quality, reasonably priced manufacturing has echoed across industries. In the obesity treatment market, leaders Eli Lilly and Novo Nordisk are investing heavily in their manufacturing footprints to defend their market share against new entrants. This strategic move is part of a broader trend of companies focusing on manufacturing to ensure product supply and maintain competitive pricing.

Eli Lilly has significantly increased its capital spending, with a nearly 50% rise in 2024 compared to 2023, reaching over $5 billion. The company's acquisition of an injectable manufacturing facility in Wisconsin and a $3 billion expansion program underscore its commitment to manufacturing excellence [1].

Lilly's spokesperson emphasized that their state-of-the-art facilities and years of expertise allow them to produce high-quality products efficiently at scale. This capability not only supports their ability to meet customer demands but also sets a high standard for newcomers [1].

However, opinions are divided on whether Lilly's manufacturing investments will act as a barrier to new entrants. While some experts like Matt Phipps of William Blair suggest that the complexity of peptide manufacturing presents a significant barrier, others argue that manufacturing science expertise can reduce the investment needed to enter the market [1].

New entrants like Amgen and Metsera are challenging Lilly's manufacturing moats by accessing third-party capacity and improving manufacturing processes. Metsera's CEO Whit Bernard believes that advancements in manufacturing science can make them competitive despite Lilly and Novo's head starts [1].

Novo Nordisk, the first to market with its GLP-1 agonist semaglutide, has also faced supply challenges. The company's first-to-market advantage was dampened by the drug's extended time on the FDA's drug shortage list. Despite investing heavily in its manufacturing footprint, including a $11.7 billion acquisition of fill-finish sites, Novo's outlook for 2025 reflects the expectation of continued periodic supply constraints [1].

The National Manufacturing Mission, announced in the Union Budget, aims to support domestic production and promote self-reliance. The mission, to be launched soon, will focus on 15 labor-intensive sectors, including auto components and the leather sector. This initiative aligns with Prime Minister Modi's "Vocal for Local" initiative, encouraging citizens and industries to champion India-made goods [2].

In conclusion, the GLP-1 market is poised for increased competition, with established players like Lilly and Novo Nordisk investing heavily in their manufacturing capabilities. New entrants are exploring alternative strategies to break into the market, highlighting the dynamic nature of the pharmaceutical industry. The National Manufacturing Mission further underscores the government's commitment to supporting domestic production and self-reliance.

References:
[1] https://www.biospace.com/business/obesity-leaders-dig-manufacturing-moats-to-defend-injectable-glp-1-empires
[2] https://www.moneycontrol.com/news/economy/policy/draft-of-national-manufacturing-mission-ready-scheme-to-be-launched-soon-reports-cnbc-awaaz-13450890.html