The Hindu Business Line : Teva's Indian acquisition plans deferred

Contrary to the widespread market talk, Teva Pharmaceuticals, the Israel-based world's largest generics company, may not go in for any acquisitions in the Indian pharmaceuticals space at least for the next couple of years, according to Mr V.K. Batra, the Managing Director of Regent Drugs Ltd, a member of Teva group.

Talking to newspersons here on Monday, he said Teva, which made an entry into the Indian market three years ago by acquiring JK Industries' pharmaceuticals business, plans to focus more on organic growth.

"From a four-unit entity at the time of acquisition, we have now grown to seven units. We have ample scope for substantial expansion at the existing location, which has close to 67 acres of infrastructure available. From a $11-million size at the time of acquisition, we have now grown to $40-million with around 70 per cent growth year-on-year. We expect to reach a size of around $60-million by next year," Mr Batra said.

Talking to reporters on the sidelines of a national seminar on `Environmental Protection - Challenges ahead for Process Industry' organised by the Bulk Drug Manufacturers Association, he said the company's focus in India would be API generics and was committed to pump in $7-8 million per annum into manufacturing and R&D activities.

"Though we are not keen on inorganic growth at least for the next couple of years, I cannot rule of the possibility of an Indian acquisition if highly exciting opportunity comes up," Mr Batra said.

According to him, the focus of the Israeli pharma giant in the Indian pharma space is on backward integration for intermediaries.

"While we prefer to confine our scope to the existing manufacturing facility and expand there itself, we keep exploring the opportunities for setting up of units wherever the opportunities were attractive. We are currently operating as a 100 per cent export-oriented unit. We will enjoy the benefits of an EOU till 2009.

"We may consider entering the special economic zones if we find the opportunity and incentives attractive. As of now, we have no plans to enter SEZs," Mr Batra said responding to a query.

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