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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (9114)	10/28/1999 9:44:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 12475

Ranbaxy targets $1 billion in sales by 2004,to acquire cos in Germany & Brazil ranbaxy.com By Atul Rastogin (Probity) Ranbaxy has embarked upon a multi market strategy comprising of advanced, emerging and developing market in order to aggregate revenues and diversify risks. The company is all set to increase its sales to the developed countries from the current over-weight in developing countries. Besides drawing up a game plan for the American market, Ranbaxy is eyeing west European market. According to D.S.Brar CEO and MD of Ranbaxy, "we are planning to focus on this region and we may also acquire a company either in Germany or France with a turnover of US$15-20mn." Brazil is another thrust areas for the company. Ranbaxy is planning to pick up 75% stake in a Brazilian company, which it will use for generic products. Recent changes in the Brazilian laws allow for generic substitution. "We want to be amongst the first company to take advantage of these changes." In the next five years he hopes to sell generic and branded drugs in Brazil. Another thrust area for Ranbaxy will be China where the company plans to enter the OTC segment next year. While all the Indian companies have pulled out of China, Brar claimed that Ranbaxy's Chinese operation was actually profitable for the last two years. The company's growth will be driven by two factors. Firstly, globalization (the fruits of which are expected beyond 2003) and secondly, Research & Development (Initial success from the tie up with Bayer for once a day ciprofloxacin). The next milestone payment from Bayer is expected next year. The company will be increasing its thrust on the novel drug delivery system (NDDS) and new drug discovery research (NDDR). Besides, the company is in the process of creating world class clinical research capabilities and facilities.As far as India is concerned the company hopes to increase its market share from the current 5.1% to 6% through organic growth and acquisitions. Brar was optimistic that against the industry?s expected growth of 11% Ranbaxy would grow at 14-15%