Novartis India Ltd, a leading MNC in the country and a part of US$ 24.9 billion Novartis AG, Switzerland, is spreading its business in India by entering into rural markets. Ranjit Shahani, vice-chairman & managing director assured in analyst meet that the company would achieve higher growth in the domestic market in the current year by introducing new products, cost cutting measures and raising marketing activity. The company will focus on life cycle management and in-licensing opportunities.
Shahani pointed out that despite several challenges, the pharmaceutical industry in India is favourably poised to be an important player globally. Novartis India became the first pharma entity in India to be granted exclusive marketing rights for its breakthrough product Glivec. Out of total sales of Rs 505 crore, the pharmaceutical division sales amounted to Rs 310 crore, representing 62 per cent of total sales. The company introduced four new products in therapeutic area.
Suresh Advani, vice president (generics sector), told that generic business was under pressure due to competition, but our major brands like PZA Ciba and Regestrone are enjoying No1 and No 2 position with a market share of 36 per cent and 33.3 per cent respectively. The company launched Regeeva and Rimthree during 2003-'04. He said that the operations of Mahad plant affected due to competition, cheap products from China and counterfeit products. Further, there is shrinking of TB market. However, Advani pointed out that the generic business will improve its working with better presence in the market.
The OTC segment, which started operations four years back, also suffered a setback mainly on account of investments in brand buildings. Further, lack of clear-cut guidelines from government is putting pressure on OTC business. Ragu Kumar who is looking after OTC segment said that Novartis was pushing its existing brands and also launching new brands Calcium Sandoz for women. Currently, Otvivin and Calcium Sandoz brands holding a market share of 30.2 per cent and 10.5 per cent, he added.
Shahani said that the company is taking special care of poor people and offering medical services to large section of community. The recent Union Budget has not offered any special benefit for the pharmaceutical sector. Commenting on the future of the pharma business, he told that consolidation would take place after patent regime and quality will play crucial roll. According to the companies official, the future growth of the pharma sector is closely connected with the clear government policy and unless there is clear policy, the foreign companies will likely to invest more in the country. The signals from new Central Government are not that much favourable for more investments.