The Hindu Business Line : Nicholas Piramal aims for multi-fold export growth

THE country's fourth-largest pharma company, Nicholas Piramal India Ltd (NPIL), on Thursday said it looks to increase its exports multi-fold over the next five years essentially on the back of custom manufacturing contracts with global innovator companies.

Given that NPIL had crossed the Rs 100-crore export sales mark, Mr Ajay Piramal, NPIL, Chairman, said: "Exports is the next growth horizon."

Further, he pointed out that NPIL's exports at Rs 107.66 crore or 8.5 per cent of total sales for the year ended March 31, 2004, would increase to 50 per cent in five years.

The optimism was grounded in the company's recent "differentiated exports strategy" that looks to partner with global innovator companies, rather than get into patent challenges with them. Having announced similar deals last year, he said NPIL had four deals in the pipeline; two of them were expected to fructify by September this year.

NPIL closed the fourth quarter ended March 31, 2004, with a net profit of Rs 77.53 crore, as against Rs 39.62 crore for the same quarter in the previous year. Total income increased from Rs 291.13 crore to Rs 437.06 crore.

The company posted a net profit of Rs 188 crore for the year ended March 31, 2004, as against a net profit of Rs 118.11 crore in the same period last year. It also recommended a 150 per cent dividend at Rs 15 per share. Income increased to Rs 1,293.3 crore in fiscal 2003-04 compared with Rs 1,014.7 crore previously.

The group posted a consolidated profit of Rs 199.66 crore for the year ended March 31, 2004, as against Rs 115.52 crore for the year ended March 31, 2003. Total Income (Net of Excise & Sales Tax) increased from Rs 1,401.5 crore to Rs 1,412.93 crore.

Mr Piramal pointed out that the top 10 brands, forming about 30.4 per cent of the portfolio, grew at 14.3 per cent. NPIL said its two joint ventures with Allergan and Boots were profitable. The Allergan venture clocked a sales of Rs 75 crore and a bottomline of Rs 9 crore. Similarly, the Boots venture clocked sales of Rs 70 crore and profits of Rs 14 crore.

Path-labs venture

The NPIL path-labs network has been branded Wellspring, said Mr Harsh Piramal, Chief Operating Officer, Allied Pharmaceutical Businesses, NPIL. The venture clocked a sales of Rs 38 crore and is in the process of setting up more centres in major cities across the country, he said.