The Hindu Business Line : Alembic launching 7 new products

Vadodara April 13 The Vadodara-based pharma company Alembic Ltd is set to launch several new products and expects to enter the $200-million formulations spectrum as a future growth strategy in the overseas market in the next couple of years.

The century-old Alembic with a basket of 200 products is now actively eyeing the $200-million spectrum in branded formulations business or API. It is also set to launch seven new products apart from the 24 it recently acquired from Dabur.

Plans are afoot to celebrate Alembic's centenary this year, Chairman and Managing Director, Mr Chirayu Amin, told Business Line here.

Besides, it is putting in place a new marketing strategy of its popular cough syrup Glycodin whose sales have shown a downward trend in the recent past.

Announcing completion of acquisition of the entire non-oncology formulation business of Dabur Pharma Ltd with 24 brands for a consideration of Rs 159 crore, Mr Amin, said that the company may try to reallocate its assets for financing the recent take-over. Alembic Ltd and Alembic Glass own about 130 acres each in Vadodara. "We created debt to finance Rs 159 crore and borrowed money. We have good accruals and we may unlock our assets in a couple of years," he told reporters.

The acquired product mix had a turnover of Rs 75 crore in the last fiscal, which Alembic expects to increase to Rs 100 crore this year and double in the next three to four years.

Alembic, whose turnover was nearly Rs 700 crore also expects to increase it to Rs 1,000 crore next year. "We expect our bottomline from the acquisition to be more than 25 per cent and operating margin Rs 200 crore."

In the next four years, the company expected to equalise its revenue from domestic and foreign sales from the current 75 per cent and 25 per cent, respectively.

Mr Amin pointed out that most brands Alembic acquired from Dabur are in the high growth lifestyle therapeutic segments of cardiology, diabetology and gynaecology. Alembic has created a new marketing arm, named "Summit," to cater to the needs of these speciality segments. It is already the largest player in the Macrolides (anti-infective) segment of drugs and is now set to increase market share in the lifestyle segment as well.

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