Mumbai, Dec. 21
THE Mumbai-based JB Chemicals & Pharmaceuticals Ltd has decided to formalise its business operations in the Russian market by setting up a wholly- owned subsidiary called OOO Unique Pharmaceuticals Laboratories in Moscow.
Initial investment in the company is pegged at $3 million and JB Chemicals expects this initiative to increase its business significantly in Russia and the CIS markets, a company release said. The Russian pharma market is estimated at $5.5 billion.
About 45 per cent of the company's Rs 370-crore turnover comes from exports to the Russian and CIS markets.
International business has been a driver of growth for the company, which clocked exports of Rs 211.38 crore in 2004-05.
JB Chemicals was among the early entrants into the Russian market, in the mid-1990s, the company said.
Currently, it has two marketing offices in Moscow and Kiev and operates in 10 countries in the CIS region, employing a marketing team of 160 people.
The company now has over 10 years working experience in this market and its flagship product in Russia is Doktor Mom herbal cough range, comprising syrup, rub, and lozenges.
Other major products in these markets include Metrogyl IV, Metrogyl Dental Gel, Rinza Tabs, and Rinza Sip.
The company's scrip closed at Rs 90.75 on the BSE today, up 2.02 per cent from the previous day's close.