Ranbaxy to explore less-saturated global markets to drive growth

Speedy resolution of the cases pending with US regulatory authorities, maximising synergies with its parent Daiichi Sankyo and improving geographical market spread will be the key growth drivers for the pharmaceutical major

Driven by a surge in sales in the US market, Ranbaxy, the country's largest drug maker, reported an over two-fold jump in its net profit to Rs312.80 crore for the quarter ended 30th September from Rs116.60 crore in the same period last fiscal. The company also benefited from favourable forex movement in the third quarter.

The Gurgaon-based company's total operating income rose to Rs1,934.60 crore for the third quarter, as against Rs1,885.8 crore in the corresponding period previous fiscal.

During the July-September quarter, company posted sales of Rs491.20 crore in the North American region, an increase of over 70%, on the back of robust sales of Valacyclovir, which continued to enjoy a healthy market share of 36%, even after losing exclusivity for the drug. Valacyclovir, an anti-herpes drug, was a first-to-file (exclusive marketing rights for 180 days) product of the company in the USA.

The company's domestic sales stood at Rs493 crore for the third quarter, while CIS region's sales stood at Rs120.90 crore.

The company's Africa sales stood at Rs164.40 crore for the third quarter. The company's active pharmaceutical ingredient (API) business posted sales of Rs108.20 crore in the quarter.

In Europe, the company posted sales of Rs 276.90 crore in the third quarter. In Romania, the firm continued to do well and posted an increase of 20% in revenue.

Further, the company made 37 filings and received 47 approvals in the quarter globally, it said.

"Our key markets continued to perform well attributable in large measure to balanced sales across geographies. This has also been aided by a favourable forex movement," Ranbaxy managing director Arun Sawhney said.

The company said it is co-operating with the US Food and Drug Administration (USFDA) and the Department of Justice for early and comprehensive resolution of all outstanding issues.  The company has put in place enhanced systems and processes in upgrading its manufacturing and research and development facilities.

In 2008, the USFDA had banned over 30 generic medicines manufactured by Ranbaxy after two of its manufacturing plants were found to have not followed the good manufacturing practices prescribed by the US authorities.

During the quarter, Ranbaxy and Daiichi Sankyo announced plans for Ranbaxy to market Tavanic (Levofloxacin) in Romania and South Africa. Levofloxacin is a synthetic antibacterial agent originally discovered by Daiichi Sankyo.

Commenting on the road ahead, the drug major said it will continue to maximise synergies with its parent, Daiichi Sankyo that holds 64% in the company.

"As we move forward, our focus will be on bettering operational performance, maximising synergies with Daiichi Sankyo and on seeking a speedy resolution to the challenges in the USA," Mr Sawhney added.

Brokerage firm Religare Capital maintains a BUY on Ranbaxy with a September 2011 (six-month rolled forward) target price of Rs 720. It adds, "Given the current restructuring exercise and incremental costs, we prefer to value Ranbaxy on EV/sales (versus PE for other companies). We value the base business at Rs630, at 3.4x (15% premium to mean, 55% discount to the sector lead). The NPV of FTF opportunities is at Rs90."

(This article is based on secondary research. The report is for information only. None of the stock information, data and company information presented herein constitutes a recommendation or solicitation of any offer to buy or sell any securities. Investors must do their own research and due diligence before acting on any security).


FM concerned at slackening industrial growth numbers

New Delhi: Finance minister Pranab Mukherjee today expressed concern at massive decline in industrial growth, which almost halved to 4.4% in September against 8.2% a year ago, reports PTI.

"We will have to analyse why that is happening. And after that considered comments can be made. But it's a matter of concern," Mr Mukherjee told reporters.

In the month of September, there was all-round decline in growth numbers across segments.

While manufacturing, which comprises of almost 80% of the IIP, grew at slower rate of 4.5% in September against 8.3% a year ago, electricity generation expanded by just 1.7% against 7.5%. Mining output rose by 5.2% against 7.4% in the year-ago period.

Also, capital goods production contracted by 4.2% in September, which may have a bearing on industrial growth figures for times to come.


Amul butter: Where’s the girl??

 When a fabulous brand like Amul butter, which already has a huge asset in the Amul girl, reduces itself to such trash on TV, it leaves you more angry than sad

So, the Amul butter makers find no place for the cute girl in the new TV commercial. That is quite strange indeed… the girl has been the brand's mascot for years and years, she's become synonymous with Amul butter, and has served the brand well in the outdoor campaign. In fact, after all these years, Amul's topical, witty hoardings still enthuse a lot of commuters.

But they have dumped a huge asset, and one watched the Amul commercial with a great deal of expectation. In the sense that the creative better be more than outstanding for it not to find a place for the little one. And criminally, they've released a seriously banal ad, and it's back to the tired, done-to-death 'desh ka butter' positioning.

The same old 'all of India feeds on Amul'. Something 'Hamara Bajaj' began decades ago, something the ad world still can't seem to let go of. Probably because it's such an easy-to-do, safe idea.

All that the maha boring commercial does is to feature assorted desis applying makhan on various cuisines. And then happen the expected food shots and collages of different people devouring the dishes laced with 'real butter'. Pav bhaji, brun maska, sandwiches, masala dosas, etc.

You can complete the boring menu. And they have tried to pep things up using the voiceover of a waiter. And that only adds to the misery.

Sounds like an extremely irritating radio spot. The sort that makes you reach out for your CDs in the car, and log off from FM radio for good.

Yes, agreed, there is a lot of ordinary advertising going around. In fact, 90% of ads are usually mediocre and that's not just the case with India. And it more often than not happens because brand managers are characteristically risk averse. And they shy away from adventure.

So fine, one lives with this reality. But when a fabulous brand like Amul butter, which already has a huge asset in the Amul girl, and which already does wonderful work in the outdoor media, reduces itself to such trash on the TV, it leaves you more angry than sad. This is nothing short of 'advertising murder' so to speak. What a waste of a wonderful opportunity, what a criminal waste of a power mascot!

And all I can think of now is the ridicule the pissed-off Amul girl would heap on the TV commercial in one of her hoardings.




7 years ago

All you're left with is the memory of the Amul moppet to cherish. It saddens and chokes me to say she seems to have been sent with Eustace who had created her and who passed away not even a year ago!



In Reply to ucd 7 years ago

Hey ucd please tell us more about Eustace and the creation of the amul mopped. I am a student of advertising and it would be lovely to hear the story!


In Reply to sania 7 years ago

See Margaret's helping hand below.


In Reply to sania 7 years ago

Eustace passed away sometime ago and I have not seen the "utterly, butterly delicious" Amul moppet (not mopped!) since then. There were abundant write-ups in the press upon Eustace's death which gave the whole story. You may get them on the net. Or, if you contact the D'Cunha family of advertising fame who lives or lived in Colaba or one of the brothers - Gerson da Cunha - you may get more help than I can give you. Or, try Amin on 2641 2559, 2642 0986 at "Amore" on Perry Cross Road, Bandra which is where Eustace used to live.


In Reply to ucd 7 years ago

You could also speak to Conrad, his (Eustace's) brother who works at XIC on 22622877.

We are listening!

Solve the equation and enter in the Captcha field.

To continue

Sign Up or Sign In


To continue

Sign Up or Sign In



The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)