The Hindu Business Line : `Working in Brazil, an enjoyable experience'

Chennai June 5 With the Brazilian President in India and both Governments inking co-operation pacts to boost trade ties, interest in Brazil is at a new high. Brazil is already India's biggest trading partner in South America and both nations are now aiming at achieving $10-billion bilateral trade by 2010.

Many companies have established base in Brazil, especially in the pharmaceutical segment. And Cellofarm, a wholly owned subsidiary of Strides Arcolab, is planning to increase its share of the total Brazilian pharma market, which is worth $11 billion, according to Mr V. Madhusudhan, President of Cellofarm.

Speaking to Business Line on doing business in Brazil, the Rio de Janeiro-based Mr Madhusudhan said that Cellofarm expects to make bigger strides in the Brazilian pharma market with the inauguration of its second local manufacturing plat at Campos in the city.

"The total investment in the plant is more than $25 million. We propose to obtain USFDA certification apart from GMP approval from the Brazilian authority, ANVISA."

Besides import substitution, Cellofarm plans to export the products produced in this facility to other countries, including the US.

Speaking on the plant and its capacity, Mr Madhusudhan said that it is equipped to produce penems and penicillin-based injections and orals.

"This plant, which is highly automated, is expected to create around 150 direct and indirect jobs. We expect to employ local people."

He also said that only a few Indians with specialised skill sets are expected to be based in the plant till it becomes fully operational.

"However, raw materials will be sourced mainly from India or through the support of Strides."

He added that all research and development happens at the Bangalore centre of Strides.

Cellofarm started full-fledged operations in 2001, mainly in the hospital segment. It inaugurated its first manufacturing facility in Brazil in September 2002.

On what attracted Strides to the Brazilian market, Mr Madhusudhan said: "In Brazil, there is huge buying, close to $2.7 billion, by private and Government hospitals. The hospitals themselves dispense medicine to patients. They buy in larger packs, unlike the retail packs sold by pharmacies. And we specialise in hospital supplies."

In 2006, Cellofarm clocked sales of $70 million. It expects to grow at 30 per cent per annum.

"With the new manufacturing plant, we are confident of making the company more competitive in terms of speed in supplies and pricing," he said.

"Besides, our products are registered as branded generics and generics and they are priced below the innovators' prices. The prices are competitive, but not low."

Cellofarm currently sells only in the Brazilian market. But with the addition of the new plant, the company expects service other markets in South America, besides exporting to the US and Australia.

On working in Brazil, Mr Madhusudhan said that it has been an enjoyable experience. "I have been living here for the last five years with my family. We have adjusted quite well to this beautiful country. Only language is an issue."

He added: "Though Brazil is culturally very different from India, the people have been friendly and supportive. It has been a very fruitful stay here, and not only because business is booming."

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