The Hindu Business Line : Polar Pharma eyes US, European markets

POLAR Pharma India Ltd is planning to expand its condom business to the US and European markets as it aims to increase its turnover to Rs 200 crore from Rs 35 crore.

Speaking to Business Line, Mr Anil Agarwal, Chairman, Polar Group, said, "We are planning to enter into a tie up with a US-based large pharmaceutical company having dominance in the condom business. We hope to finalise the deal soon." The US-based company is likely to source condoms from the Indian company. Besides, Polar Pharma is also planning to launch its own label in the US market. It has initiated talks with some of the leading pharmacy chains in that country. "We want to leverage the cost advantage that India has. Also, India is a large producer of good quality latex rubber," he added. While condoms are sold at $1 a piece in the US, in the Indian market, they are available for as low as Rs 2 per unit.

The company has also signed an MoU with MMD, a company based in Germany, to distribute the product in the European market. It hopes to generate about Rs 50 crore from the region in the next two years.

However, for the domestic market, Mr Agarwal said the company had no plans of branding its products. "The market is too small for us to invest in branding in India," the Chairman said.

Meanwhile, Polar Pharma continues to supply to programmes supported by the Indian and other Governments. For instance, it has received a large order from the Brazilian Government, and recently filled one placed by the Health Department in South Africa. It has participated in tenders for supply to Bangladesh, Vietnam, Kenya and South Africa and hopes to bag some orders.

With all these initiatives, the company is hoping to grow at a compounded rate of 25 per cent. It hopes to end the current fiscal with a turnover of Rs 70 crore. As part of a financial restructuring, the company recently entered into a one-time settlement with the Stressed Assets Stabilisation Fund (SASF) leading to a waiver of Rs 23 crore. With this, the company has realigned the debt that has led to savings in interest cost.

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