Spirits flow eastward: India captures Swiss alcohol market

Before sunrise breaks across Switzerland's pharmaceutical market, currently estimated at around $60 billion, tanker trucks rumble through the industrial estates of Hyderabad, carrying the specialty chemicals that keep European labs running. In organic chemicals, pharmaceuticals, and food processing industries, targeting the EFTA and Swiss markets, India has quietly built one of the world's most sophisticated supply chains for monohydric alcohols — the invisible building blocks of modern medicine.

The numbers tell a remarkable story: India, the world's most populous country, now holds the second-largest share of Switzerland's $95.2M monohydric alcohols market at 23.3%, with exports worth $22.2 million marking a robust 28% year-on-year expansion. Divi's Laboratories Limited engages in the manufacture and sale of generic active pharmaceutical ingredients (APIs), intermediates, and nutraceuticals, while Sun Pharmaceutical Industries Limited manufactures and sells pharmaceutical formulations and active pharmaceutical ingredients (APIs) in more than 100 countries.

TEPA Transforms Chemical Trade Corridors

The India-EFTA Trade and Economic Partnership Agreement, which entered into force on 1 October 2025, has unleashed new possibilities for Indian chemical exporters. Pre-FTA, certain chemical sector products faced tariffs of up to 54% (Source: Trademap), but post-FTA, these tariffs will be eliminated, increasing the reach of Indian chemical products in the EFTA bloc. Swiss chemical products will benefit from either full tariff elimination or significant reductions.

Geographically, the company derives maximum revenue from Europe, and the rest from America, India, Asia (excluding India), and the Rest of the world, notes PitchBook's analysis of Divi's Laboratories (NSE: DIVISLAB). Divi's doesn't make pills - it makes the active ingredients inside them. Over 200 global companies, including Pfizer and Novartis, rely on Divi's for APIs.

"With zero tariffs and improved trade facilitation, India's exports across diverse panels are expected to achieve steady growth, supported by vast untapped potential in Switzerland and Norway."

From Hyderabad Labs to Swiss Precision Manufacturing

The monohydric alcohols flowing from India to Switzerland aren't commodity chemicals — they're precision intermediates for pharmaceutical synthesis. Divi's Laboratories is a holding company that manufactures active pharmaceutical ingredients, intermediates, and nutraceuticals. It also provides generic APIs, nutraceutical ingredients, and custom synthesis for big pharma.

Switzerland's competitive positioning stems from decades of relationship-building. Germany leads the market with 30.3% share ($28.9M), followed by India's 23.3% ($22.2M), while China holds 10.0% ($9.5M). Around 70% of Sun Pharma's revenue is generated from international markets. The US and India are the largest markets, accounting for over 60% of the company's turnover.

The supply chain complexity becomes clear when examining origin points. Divi's Laboratories Limited is an Indian multinational pharmaceutical company and producer of active pharmaceutical ingredients (APIs) and intermediates, headquartered in Hyderabad. The company's manufacturing footprint spans core manufacturing units in Hyderabad and Vizag, which have been approved by the USFDA and UK, Slovenia, German, and Irish authorities.

Employment Ecosystem Anchors Regional Growth

India's chemical and pharmaceutical ecosystem employs an estimated 1.14 million workers directly, according to production data. In states like Gujarat, Maharashtra, and Telangana, the monohydric alcohols trade supports an estimated 780 direct jobs and 2,000 indirect positions based on the sector's employment multipliers of 3.5 direct and 9 indirect jobs per $100,000 in exports.

Women comprise approximately 30% of the pharmaceutical workforce in these clusters, with micro, small and medium enterprises (MSMEs) accounting for 80% of participating companies. In Ahmedabad's chemical parks, in Mumbai's Andheri pharmaceutical belt, and across Hyderabad's biotech corridor, the Swiss connection has become a lifeline for thousands of families.

Divi's Laboratories is one of the largest API companies in the world, with a revenue of INR 8,112.17 cr in 2023, and exporting to more than 95 countries. The revenue split shows that Sun Pharma is more dependent on the US and Indian markets, while Divi's lab is more dependent on the European and US markets.

The forward trajectory appears robust, with India's pharmaceutical exports standing at $30.47 billion in 2024–25, registering a growth of 9.4 per cent over the previous year. As Swiss pharmaceutical demand continues expanding, India's position as the second-largest supplier of these critical chemical intermediates reinforces the deepening integration of Indo-European supply chains in an era of heightened trade cooperation.