Pharma companies are devising strategies to offset the severe hit on their margins, due to the sharp rupee appreciation over the last six months. While generic pharma companies have gone for forex hedging strategies on the international market, contract manufacturing and clinicals are going in for contractual agreement on a fixed rate for negating exchange rate fluctuations.

Others like Ranbaxy are cutting back on direct exports from India, and are instead feeding global markets from overseas locations. For instance, Ranbaxy's US-based facility Ohm Labs is catering to US markets, Terapia in Romania to Europe and CIS countries, Be-Tabs Pharmaceuticals to the South African region and China plant to nearby markets.

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