J. B. Chemicals and Pharmaceuticals Ltd is set to achieve further improvement in performance during the current year with more focus on R&D and new products. J B Mody, chairman & managing director, told shareholders at the 28th annual general meeting that the management is taking steps to strengthen its financial position by expanding markets and product range. He said that in the domestic market, the company has increased its therapeutic coverage from 32 per cent to nearly 41 per cent by introducing nine new products/brand extensions in therapeutic areas.
The company has forayed into the fastest growing segment of anti-diabetics by launching a slew of new products such as Daoryl 1 & 2 mc, Daomet-SR 500 and 1000 mg and Daoryl-M 1 & 2 mg. It is planning to launch a new division to focus on CNS and Respiratory segments. Mody said, "With our entry in the newer and fast growing therapeutic segments, we expect to increase our therapeutic segment representation to 50 per cent in due course of time."
The company has sharpened its focus on R&D and the same will continue to commit significant funds to further strengthen its R&D capabilities to successfully counter the challenges posed by the product patent regime - post 2005 and also tap the large generic opportunity globally. The contribution of domestic and export sales to total turnover during the year was 48 per cent and 52 per cent respectively.
Mody pointed out that the company is taking appropriate measures to offset the adverse effect of the appreciation of the rupee in the current year. With this measures, the company will improve its earnings in the current year. The ratio of R&D expenditure to sales will go up to 5 per cent in the current year from 2.18 per cent in 2003-'04. Meanwhile, shareholders have passed all its resolutions in the AGM.