The Mumbai-based Elder Pharmaceuticals is considering to set up a joint venture manufacturing plant in Nepal. The idea is to have a JV along with a local partner in that country.
The company would target markets of Nepal and the surrounding places like Bhutan from the facility.
It is currently exporting its formulations, new range of dermatological products and consumer care products to Nepal, garnering sales of Rs 4 crore annually. The total size of Nepalese pharma market is about Rs 2, 500 crore.
"Elder had sound plans to invest in Nepal, but we will have to go slow now after the coup," said Dr. Anuj Saxena, director, Elder Pharmaceuticals.
"When the situation eases out, we will invest in that country. It is logistically advantageous to have our own facility in Nepal than to export your products there," he added.
It is learnt that Elder is in discussions with Universal, a pharmaceutical distribution company in Nepal for a possible JV.
Likewise, the company is in talks with companies across countries like Brazil, Kenya, South Africa, US, Europe and China for setting up joint ventures in these locations.
"While exploring a new territory, it is always better to partner with a local company than to go on your own," he said.
Besides, the company is looking at ways to directly export products like Tiger Balm and other formulations to Pakistan, from where the company is getting continuous orders.
Elder is planning to enter anti-smoking chewing gum segment, with its new product 'Nu Life,' which will be launched by mid-February. Nu Life will be manufactured by CJ Healthcare and marketed by Elder across the country. "We will be working closely with medical practitioners for marketing Nu Life in the country. A team of 35 representative would create awareness among the medical fraternity for the product," said Dr. Saxena.
Exclusive marketing is a segment, which Elder has traditionally eyed on. The focus is believed to have strengthened further after India went product patent in 2005. Although, Elder expects an increase in contracts from new players, its responsibility on quality and credibility has further increased post 2005, said Dr. Saxena.
Elder is already marketing life style-oriented products for international companies like Fujisawa, Tanabe Seiyaku, Laboratories Biorga, Blistex, and others.