The Rs 477-crore, Micro Labs Ltd, Karnataka's leading pharmaceutical company, is poised to expand its trade destinations in CIS countries. Being one of the early entrants to this region, the company hopes to bolster its marketing efforts in CIS through brisk marketing initiatives.
Currently, Micro Labs generates 20 per cent of its total international earnings from CIS market through its full-fledged presence in the Russian Federation, Ukraine, Azerbaijan and Kazakhstan. It is the only company in Karnataka with an established marketing base in CIS.
For the last six years, Micro Labs Ltd. has had a direct presence in the CIS through its strategic marketing offices headed by Indian expatriates who are assisted by product managers apart from a team of local sales and ethical promo-tion executives. The region holds immense potential for branded generics in disease segments like antibiotics, gastroenterology, cardiology, anti-diabetics, central nervous system (CNS) and pain management, Sriram Iyer, vice president, exports, Micro Labs Ltd., told Pharmabiz.com
With the market in the region opening up at dramatic pace, Micro Labs intends to grab a sizeable share of the generic pie. Micro has invested substantially to counter the challenge from local units and to retain its presence in the region.
The company is currently pursuing an aggressive strategy through ethical demand creation. It already has an indirect presence in Belarus, Georgia and Republic of Moldova through agents who are entrusted with the task of product registration and generating a demand for its range of products, informed Iyer.
Although CIS is viewed as a buoyant and rapidly growing export destination with a market size of around $3 billion, growing at 20 per cent annually, the region is perceived as a high risk and high return destination despite a fairly sophisticated distribution network.
Receivables management is unpredictable in CIS markets and hence most companies are apprehensive on this front.
Commenting on this, Iyer opined, "Further maturing of bill discounting and factoring services can lead to immense progress in the region."
Currently, pharma companies engaged in activities here have to face the challenge of competition from the domestic players, which are now emerging as a potential threat for formulation exporters. However, there is immense scope for bulk drugs, he stated.
The accepted products in CIS depend on the disease profile in the region. Of late, the population in CIS countries is falling victim to fast life syndromes and lifestyle disorders have led to a rise in sales of diabetes and cardiac drugs.
Furthermore, cold climatic conditions trigger depression and anxiety disorders, which increase CNS drug prescription. In order to capitalise on the demand, Micro Labs is orienting itself towards strategic brand creation in related disease segments, added Iyer.