The Hindu Business Line : Ranbaxy forays into herbal medicine

Dr Brian W. Tempest, Joint Managing Director and CEO-designate, Ranbaxy Laboratories Ltd (right), with Mr Atul Malhotra, Head-Global Consumer Health Care, Regional Director-Asia Pacific & Middle East, launching new products at a press conference in the Capital on Wednesday. — Kamal Narang

New Delhi , Jan. 21

IN an attempt to tap the domestic $1 billion herbal medicines market, Ranbaxy Laboratories Ltd on Wednesday unveiled three new brands under the `New Age Herbals' brand.

As part of its expansion in the over-the-counter (OTC) segment, the company has launched Olesan Oil for cold, Olesan cough syrup and Eat Ease, an appetite enhancer. Ranbaxy had forayed into the OTC market through a separate division - Ranbaxy Global Consumer Healthcare (RGCH) in October 2002 and is hoping to launch five to six products this year.

According to Mr Atul Malhotra, Head, RGCH and Regional Director Asia Pacific and Middle East, "The global market size for herbals is estimated to be at $20 billion growing at 10-15 per cent per annum while the Indian market is growing at 12 per cent per annum." The company sees huge opportunity in the cold and cough market as the size of the cold market is estimated to be at Rs 400 per cent and growing at a compounded annual growth rate (CAGR) of 6 per cent. The size of the cough market is estimated to be Rs 645 crore and growing at a CAGR of 8 per cent. The appetite enhancer market is a nascent one and the company hopes to build this segment.

Dr Brian W. Tempest, Joint Managing Director and CEO (designate) Ranbaxy said, "Our OTC products have been a success and we have been able to meet all the targets. Some of the assets within our portfolio are being repositioned." Olesan, for instance, was a prescription drug that has been made an OTC product.

`Acquisitions part of growth strategy'

ACQUISITION seems to be the way forward for Ranbaxy. After the recent buy of France-based RPG (Aventis), the company is eyeing companies in the US and Europe.

"Acquisitions are a part of our overall growth strategy. We have a team in Germany that is examining about three to four proposals at any given point of time," Dr Brian W. Tempest, Joint Managing Director and Chief Executive Officer (designate), Ranbaxy Laboratories told newspersons at the sidelines here.

He also added that the company is also looking at licensing opportunities in the US and added that the company had a core team for clinical trials there under its research and development initiative in the country. He also added that the company has a robust product pipeline for the new year.

Mr Tempest added that the company's Chinese operations could turnaround this calendar year by making operating profits. Ranbaxy is planning to introduce propriety products in China as generics faced severe price undercutting. The company was looking at getting approvals for some products there.

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