Ranbaxy clocks $100 mn sales a year

NEW DELHI: Africa which has escaped the gaze of many Indian pharma companies has been a silent money spinner for India's largest drug maker Ranbaxy generating about $100 million every year. The company is now planning to invest more money in infrastructure and will set up a new manufacturing facility in the continent.

Currently, the company's revenue from the continent constitute about 7% of the company’s global revenue. But revenue from the region is registering double-digit growth.

Ranbaxy CEO and MD Malvinder Singh told ET: ”Our investments in the region are giving good returns. The company plans to invest more in infrastructure and business and will set up a manufacturing unit in the region. Africa will be an important market for us the next 15-20 years.” Mr Singh however did not specify details about the investment or expansion plans in Africa.

At present, the company has two manufacturing facilities, one each in Nigeria and South Africa, which caters to the entire continent. Ranbaxy had recently acquired Be-Tabs, the fifth largest generic company in South Africa for $70 million.

“Today, Ranbaxy markets its products in around 45 countries in the African continent with South Africa and Nigeria being the two biggest markets in this region,” said Ranbaxy executive director Ramesh Adige.

Ranbaxy was among the first Indian companies to venture in the continent as early as the 70’s when most countries were transitioning from colonial rule to independent states.

The arrival of Ranbaxy and generic drugs has led to lowering medicine costs in the continent. For example, Ranbaxy which is a major supplier of anti retro drugs (ARVs) to NGOs and governments in the region and the company’s ARV regime drugs are available at about 30 cents a day.

Other Indian pharma companies Cipla and Hetero drugs strong in the ARV drugs segment also have prominent presence in the continent.

“While we will continue to strengthen our position in the anti-infectives segment, we will also increase our presence in the chronic segment which is growing at a good pace,” said Mr Adige.

At present, the key therapeutic focus for Ranbaxy in the region is on ARVs, anti infectives, cardiovascular drugs, nutritional supplements, gastro intestinal products and nervous system products. The other key markets in Africa are Kenya, Tanzania, Uganda, Zimbabwe, Zambia, Morocco and Cameroon.