Mumbai-based Ajanta Pharma is all set to restructure its debt amounting to Rs.55 crore. It has already initiated talks with its lenders, IDBI and Exim Bank. "We hope the overall interest rates after restructuring would come down to nine per cent from 14 per cent," said Arvind Agarwal, Chief Financial Officer, Ajanta Pharma.

The company's heavy borrowing in order to meet its financial requirements in its aggressive expansion activities in the overseas-unregulated markets, along with its domestic manufacturing, R&D and other investments, have been the reasons for its debt.

However, the pending outstandings of Rs 35 crore from the CIS governments of Turkmenistan, Uzbekistan and Tajikistan to the company is a prime factor for the company's inability to clear the debts.

"We did not want to kill the joint ventures in these countries as the market is very good. A great deal of investments have been made on behalf of these governments, which have resulted in these outstanding," said Agarwal.

Ajanta Pharma had dreamt of making a liability-free business from its joint ventures in Turkmenistan, Uzbekistan and Tajikistan. Although, the company is making reasonably profitable business from these countries, it has not received full support from the respective governments on the other end, who have not been able to adequately invest in manufacturing activities of the the JV, in proportion to their stake holding in the joint ventures.

Turkmenistan, Uzbekistan and Tajikistan JVs cover about 13 per cent of the total turnover of Ajanta Pharma. In the Uzbekistan JV, the company holds 51 per cent of the stake with the balance owned by the government. In Turkmenistan, the company owns a 50:50 JV with the government and in Tajikistan, Ajanta Pharma is a minority shareholder owning 35 per cent of the stake, and the balance being owned by the Tajik government.

Nevertheless, the company is expecting to reap rich harvest from the branded exports seeds that it had sown a couple of years back in the unregulated markets like the Middle East, South East Asia, Africa and the CIS countries.

The company is already exporting brands in the segments like cardiovascular, premium antibiotics, anti-diabetics and neutraceuticals, in these countries. Some of these brands are Thirty Plus, Figurin, Carofit, Livoplus, Apdyl H, Stamina and Nimlodi.

Besides, the company has already initiated its product registration activities in the semi-regulated market of Brazil. "Brazil is the eighth largest pharma market in the world with a size of $ 8 billion. We have already registered 11 products there and the potential is unlimited," said Agarwal. Also the company is looking at markets like Venezuela, Peru and Haiti.

With more than 50 per cent of the net sales being contributed through exports, which is annually growing by about 40 per cent, the company will be netting in more profits, which will enable the company to clear its debts in the next couple of years, he said.