IPCA Laboratories is focusing more on exports and Research & Development in the coming years to encash the growing opportunities in the pharma sector. The company is investing Rs 120 crore for expansion of capacities in the current year.
Talking to shareholders at the annual general meeting, R S Hugar told that the Indian pharma sector is globally competitive and important destination for producing cost effective quality products. The company is currently exporting to over 100 countries and its exports to highly lucrative market of US and Europe accounted for over 58 per cent. He added that the company has incorporated two new subsidiaries each in US and UK for strengthening its marketing and new product registration activity.
Meanwhile, all the resolutions including bonus shares in the ratio of 1:1, re-classification of preference share capital and increase in authorized capital were passed by the shareholders.
Hugar told shareholders that the company's profitability for the first half ended September 2004 was slightly affected due to unfavourable exchange rate movements. There was a loss of around Rs 7 crore due to rupee depreciation in terms of dollar. Further, lower off-take of anti-malarial products also put some pressure on sales.
He said that the company is taking steps to increase it production capacity to overcome the present capacity constraint. It is setting up a new formulation plant at Special Economic Zone, Indore with total outlay of Rs 60 crore. The plant is likely to commission in the next fiscal year. However, the company is not entering immediately for NDDS on account of high costs and time period.
A K Jain, executive director, said, "We are exploring for new marketing tie-ups as well as acquisition. The new patent regime will not affect our business as very few items may come under Patent review. IPCA is planning to incur total capital expenses of Rs 120 crore in the current year. Our sales of lifestyle drugs are increasing very fast and we are reducing the products under price control act with substantial rise in other branded products. The company has successfully reduce its products under DPCO to 21 per cent.''
While addressing the shareholder query about the future plans, Premchand Godha, managing director, told that the biotechnology segment is getting more and more importance and IPCA will enter in this field at right time with right people. We will achieve more growth from exports. Besides, regulated markets we are looking out for developing and under develop countries for export growth.