For Indian pharma companies, boosting exports is driving growth

For many of India's domestic pharmaceutical companies, exports are the key driver to growth and, during the quarter ended December 31, 2005, Nicholas Piramal India (NPIL), Cipla, Lupin and Glenmark Pharmaceuticals had increases ranging from 19% to 66% in their international business.

NPIL achieved the largest increase in exports, up 66.2% in the quarter, and export sales now account for 18.4% of the company's total turnover. Conversely, the company suffered a series of setbacks in the domestic market with lower sales of phensedyl and withdrawal of two valdecoxib brands, Vah and Valto, in which NPIL was a market leader. Also affecting the quarter's results was a foreign exchange loss which reduced net profit 70%, while net sales registered a modest 9% growth.

During the quarter, Lupin witnessed a significant 56% increase in exports, mainly to North America and Europe, which contributed significantly to growth as revenues jumped 139%. Lupin chairman DB Gupta, commenting on the results, said sales of the company's products in the regulated markets have improved, resulting in better profitability. He added that the company's finished dosage revenues in the USA and Europe increased, while active pharmaceutical ingredients turnover decreased 15%.