Russia-Ukraine crisis: 'Health' of India's pharma sector will deteriorate, oil companies will be devastated

Russia-Ukraine crisis: ‘Health’ of India’s pharma sector will deteriorate, oil companies will be devastated

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new Delhi. Russia-Ukraine Crisis Impact on Indian Companies: Stock markets around the world are in crisis amid the continuing war situation between Russia and Ukraine. Actually, both the countries are big producers of oil and if there is a war between them, then there will be a big jump in oil prices around the world. And rising oil rates means that everything will become expensive.

The panic of the people associated with the stock market is about the fact that the valuation of shares of Indian companies which have alliances or business in Russia or they are already working with Russian companies, their shares may decrease. Their profits will decrease and their shares may fall. For example, India supplies pharma, machinery, tea-coffee, tobacco, spices and dry fruits to Russia.

Also read – Ukraine crisis: What will be its effect on the stock market in the worst case, know

The biggest impact on the health of pharma

According to a news of Moneycontrol, about 8-10 percent of the total sales of the Indian company Dr. Reddy’s Lab are in Russia alone. Nise, Omez, Nasivin, Cetrine and Ibuclin are among the 200 best selling pharma products sold in Russia.

Apart from this, about 10 percent of the sales of Glenmark, a company listed in the Indian stock exchanges, comes from Russia. Apart from this, the products of Cadila and Sun-Pharma also sell up to 10-13% in Russia.

Also read – Brokerage firm is bullish on 2 shares of Tata Group, know name and target price

Oil-Gas and Defense sector will also be affected

If Russia and Ukraine do not take steps towards peace soon, then the business of companies related to India’s oil-gas and defense sector will also be affected. ONGC Videsh has a huge investment in the Sakhalin-I project. Similarly, ONGC has an agreement with Rosneft.

Talking about the defense sector, HAL has 2 joint ventures with Russian companies. This joint venture is in the field of aerospace and aviation. At the same time, BDL has tied up with Almaz Antey to explore the possibilities of JVs to manufacture air defense missile systems like Tunguska, Kavadrat, OSA-AKA and Pechora air in India. Along with this, the possibility of JVs is being explored to make Shilka self-propelled air defense system in the country.

Tags:, Share market, Ukraine

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