Pharmabiz
 

Charak Pharma restructuring business model to add inorganic growth in revenue

C H Unnikrishnan, MumbaiThursday, February 5, 2004, 08:00 Hrs  [IST]

Charak Pharma, the 53 year-old Ayurvedic manufacturing company in the country, is currently going through a complete business restructuring exercise. The company, which had hitherto believed in a conventional progress plan, has chosen the ways of organic and inorganic growth as young managerial capabilities have been inducted off late. As the company has set a revenue target of Rs.200 core, that is more than double the current turnover, to be achieved in the next three years, the fresh strategies would include optimizing export potential, encashing R&D capabilities, service outsourcing and also strengthening the resource-base through strategic alliances and associations. According to Pulin Shroff, the new managing director who is also part of the fresh management team, the company has now revamped its business outlook to accommodate new pharmaceutical market trends both local and global. The area of export business has now become more focused and the infrastructure is being built up according to the global requirements, he said. As herbal-based research in the pharmaceutical sector is gaining importance globally, the company wants to use its traditional capabilities along with fresh research ideas to open up new avenues of revenue to reach the targeted growth in the years to come. He says that as the potential in research and development in the area of herbal medicine is enormous, an added thrust on the R&D front has been given. This would enable the company to not only widen the new product range but also capitalize on the global demand for promising drug candidates, he added. "At the Charak Research and Development Centre, a team of dedicated scientists and technologists ensure that the raw materials and finished products undergo comprehensive testing within the framework of established scientific principles," Shroff said. The latest technological advances together with proper observance of WHO - GMP norms also ensures quality Ayurvedic products, he added. However, considering the importance of strong marketing support it keeps enhancing the efforts in that front as well. Currently, the company has well-networked sales and marketing force spread across all the states in the country and has a strong presence from major metros to the rural interiors. The company is also currently present in the international markets with products being marketed in USA, Italy, Portugal, South Africa, Malaysia, Ukraine, Switzerland, Sri Lanka, Canada, Venezuela, Belgium, and Oman among others. In all these countries product acceptance has been spontaneous and business results was achieved fairly quickly. Natural herbs such as Senna leaves, Psyllium Husk, Valerian Root, Ashwagandha, Garcinia Cambogia a few among many that are an integral part of Ayurvedic remedies are exported by us in their raw state, properly dried and stored so as to retain their efficacy and potency. As part of the new strategies, the company is now scouting for marketing partners in the overseas markets including US and the European countries. The company has recently licensed out its veterinary brands to the multinational pharma giant Novartis as a core strategy to withdraw from the non-core business but at the same time encashing on the brand reputation. Charak has three manufacturing units strategically located in the North, West and South India. The plant modernization to the tune of international quality specifications also includes the fresh business plan to cater to the export market.

 
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