Merck India has exported 33 tonnes of Vitamin E to Pakistan for the year ended December 2003. The company had commenced exports since June 2003. The current overseas price of bulk Vitamin E acetate is Rs. 757 per kg.
Merck India is the only company, which has made direct exports any such bulk drug scale to the next neighbor. The current exports of pharmaceuticals from India to Pakistan is negligible. Most of the current trading is indirectly routed via Dubai, Singapore and Germany.
"Vitamin E is the only product that we export on a large scale to Pakistan. We have plans to make further inroads into the new market with our other products," said R.L. Shenoy, director, finance, Merck India.
Pakistan with a population of about 15 crore is a potential market for Indian industries. The total pharma market size in Pakistan is worth $ 1,500 million. "We have realized a revenue of Rs. 2.5 crore in 2003 from our Vitamin E exports to Pakistan," said a senior company official.
Merck also exports its Vitamin E and other formulations to markets like Sri Lanka, Burma, Nepal, and African countries.
For the year ended December 2003, Merck achieved net turnover of Rs. 364.1 crore for the year ended December 2003, compared to Rs. 346.6 crore the previous year. The company's profit stood at Rs. 52.2 crore compared to Rs. 52.6 crore, the year ago.
Pharmaceuticals constitutes over 60 per cent of the total revenue realization of the company, out of which, 67 per cent of the total turnover is from Vitamin formulations.
Merck is the largest manufacturer of Vitamin E in the country, which caters to both direct sale as well as the company's captive requirements. The company's mega brands i.e. Evion, Polybion and Neurobion have a lot of potential to further consolidate their market position.
The turnover from Vitamin E showed a marginal decline over the last year's achievement. More than 50 per cent of the production of Vitamin is captively consumed by the company in the preparation of Evion, an important Vitamin formulation. Because of competition from international players and predatory pricing, the turnover of Vitamin E as well as margins is under pressure.
The company also has products in other therapeutic categories as cardiologicals, anti-malarials, cough & cold segment, dermatologicals, haematinics, NSAIDS and oral rehydration salts.
Merck outsource 70 per cent of its requirements from contract manufacturers and the balance 30 per cent is manufactured on an in-house basis.