Alfa Laval (India), part of the Sweden-based engineering and process technology global giant, is eyeing prospective customers in the pharma-biotech sector for its latest product in membrane filtration. The company added membrane filtration to its technology portfolio after it acquired Danish Separation Systems (DSS) in Nakskov, a global leader in cross flow membrane technology.
The membrane market in India is untapped and needs to be explored, Shrikant Ahirrao, branch manager, Alfa Laval (India), Bangalore office told Pharmabiz.com. While the parent company is expanding the manufacture and development of industrial process membranes for pharma-biotech companies, its India office located in Pune through its 14 branches in the country is in the process of identifying prospective customers.
Alfa Laval's two-decade-old Bangalore branch with sales to the tune of Rs. 40 crore in 2002 hopes to garner a significant share from Karnataka and Kerala markets which currently holds potential for investments in pharma-biotech. Apart from its latest offering in membrane technology, the company will focus on its complete series- from fermenters, flow equipment, separators to thermal, drying and evaporation technology including its range of water for injection to customers in Karnataka and Kerala.
The southern market had been lucrative for Alfa Laval with substantial orders from Biocon India, Dr. Reddy's Labs, Orchid Pharma, Max India, AstraZeneca to name a few. Despite a poor investment scenario in 2002 in pharma-biotech, Alfa Laval expects to generate business in 2003 and 2004 as the market is turning out be receptive to investments. A handful of large companies and a couple of medium-small units have also firmed up concrete expansion plans in Karnataka and Kerala and Alfa Laval is working to covert its enquires into concrete sales' orders. Plans to conduct presentations and seminars in Karnataka and Kerala are also on the anvil.
The Karnataka market has bagged around 90 per cent of business from Biocon Group which is the highest sales notched by the company's branches in the south. Another area of potential according to Ahirrao is Kerala where the agri-biotech and herbal extract companies based in Thiruvananthapuram and Kochi are keen to go in for new production techniques, sophisticated equipment to save time and ensure total quality. "Our products' reliability, sterility, precision and presence of technical support from conceptual design to all stages in plant operation would help to bag orders" he said.
The total market for engineering solutions in India is valued around Rs.30 crore and Alfa Laval holds a 60 per cent market share. Its customers include Ranbaxy, Cipla Glaxo, Aventis Pharma, Torrent Pharmaceuticals and others. The competition is scattered in the domestic market but Alfa Laval has an edge over the other players because of its one-stop capability and extensive sales-service network. Though heat exchangers, pumps and separators are its most-sought after equipment, yet the company perceives its range of products referred to as 'FAST' (Flow, Automation, Separators and Thermal) technologies as the fastest growing product mix.
In 2002, the company's turnover was Rs. 300 crore and it is expected to register earnings to the tune of Rs. 380 crore in December 2003. It has been clocking a growth rate of 15 to 18 per cent annually. Alfa Laval in Sweden holds 20-25 per cent of the global market share.