Plethico to bank on CIS nations
Plethico has made the untapped CIS nations markets with relatively easy FDA rules, its export hub with 70% of its export share.india Updated: Mar 13, 2006 16:02 IST
Emerging global healthcare company Plethico Pharmaceuticals Ltd has made the Commonwealth of Independent States (CIS) nations, which are untapped markets with relatively easy FDA rules, its export hub with 70 per cent of its export share.
"CIS nations do not have stringent norms like US FDA. They have a strong payment position and huge demand potential. But there is no back-up in these countries for manufacturing facilities. So we decided to enter this market in 1996 to explore the opportunities," Pethico General Manager (Finance) Hemant Modi said.
"Sixty eight per cent of our total turnover of Rs 225 crore comprise exports, of this CIS nations generate around Rs 107 crore," Modi said.
The company acquired a marketing and distribution chain in the CIS, with susidiaries in Ukraine, Kazakhastan, Moldova, Azerbaijan and Kyrghystan.
"These are integrated distrbution network throughout the country. We have tied up with distributors known as Aptica in these countries. They have a strong network to distribute medicines," Modi said.
It deputed its own marketing team in all these countries for marketing operations. Some of its products like Over The Counter (OTC) products marketed through television advertisements are selling briskly. More
Travisil is also the company's blockbuster product. It fetches 41 per cent of its all export products which is around Rs 20 crore.
Another brand recently launched was Therasil. It is the allopathic preparation for cough and cold.
Outside CIS market, Plethico's largest market is African countries, especially in East Africa, with 18 per cent share of its total exports. It is also setting up a new manufacturing plant through joint venture in Kenya.
Other markets include Latin America, Gulf Cooperation Council members and South East Asia.
"With over 400 different formulations in more than 39 therapeutic segments, Plethico has a strong presence in anti-malarial, anti-tubercular, anti-infectives, pain, cardiac, gastro and cough and cold," General Manager - International, Account and Finance Sanjay R Pai said.
"We now intend to increase our presence further in all these segments and focus on the other export markets too besides CIS. We are expecting 100 per cent growth from all our export markets in next two years," Pai said.