The Lupin Ltd, a Rs 1225-crore company, is setting up a subsidiary called Lupin Australia (Pty) Ltd in Australia to tap business opportunities in Australian market. Lupin is planning an investment of US$ 2 million over a span of two years. Australia is the 14th largest pharmaceutical market in the world and was valued at approximately US$ 3.8 billion during the year 2003 and it is growing at a rate of 7 per cent. Since the Australian laws require a local entity to hold product registrations, Lupin is establishing a wholly owned subsidiary in that country. The company is taking necessary shareholders approval in its annual general meeting to be held on July 29, 2004.

The Australian subsidiary will assist in product registrations and act as the vehicle for marketing Lupin's products. Lupin is proposed to start marketing operations of branded generics in Australia and it is not feasible to handle operations from India.

The sixth largest Indian Pharma company's export earnings on FOB basis during the year ended March 2004 improved to Rs 55.85 crore from Rs 40.15 crore in the previous year. The company entered into various marketing alliances with well-entrenched companies like Watson Pharmaceutical Inc and Baxter Healthcare Corporation for its finished dosage initiatives. The company launched first branded product - Suprax Dry Suspension and first generic- Cefuroxime Axetil -in USA during 2003-'04.

Further, Lupin is also investing Rs 1 lakh in paid-up capital of another subsidiary called Lupin Herbal Pvt Ltd (LHPL) to bring about flexibility to field force operations and to promote herbal products manufactured by the company in an optimal, cost effective and flexible manner. It has already entered into a commission agency agreement with a LHPL.