Fourrts eyes 56% rise in turnover this fiscal

Chennai-based Fourrts (India) Laboratories Private Limited expects a 56 per cent increase in its turnover for the current financial year.

Speaking to Business Standard, S V Veerramani, chairman and managing director of Fourrts (India) Laboratories Private Limited, said, "For the financial year ended March 31, 2004, we had a turnover of Rs 64 crore and this year we expect to close at Rs 100 crore."

The company is currently in the process of building its second plant on the outskirts of Chennai, which would cater to the export market.

"Our first plant is WHO-GMP compliant and to cater to the increasing export needs and to get into the regulated market we plan to have a second manufacturing unit," he said. Fourrts is investing close to Rs 15 crore on this plant, which would be raised through internal accruals and debt.

"The plant would be ready in the next 12 months and we would be filing for the approval from the United States Food and Drugs Administration (USFDA) next December," Veerramani said.

According to him, the company currently exports to 25 countries mainly in Africa, South America and Southeast Asia. It plans to expand its portfolio by adding another 10 countries mainly in the CIS region by the end of the current financial year.

Veerramani said that, at present, the exports contribute around 15 per cent to the total turnover, which is expected to go up significantly during the next financial year to touch around Rs 18 crore.

Fourrts is going in for another plant that would also cater to the domestic market. "The construction activity on this plant would start in November or December next year," he said.

The company also plans to step up its investments in research and development. "The company's R&D is mainly on development of formulations and in new drug delivery systems. Till now, we were investing very little on R&D but from this year we plan to invest around five per cent of our turnover in the division," Veerramani said.

Fourrts manufactures products in the anti-diabetic, neutraceuticals, women health care, dental, ophthalmic and neurology segments.

The company plans to launch five to six products in the next financial year. "Some of the products which are in the pipeline are being launched in association with foreign companies," he said.

On the possibility of going public, Veerramani said, "We have not thought about going public for the moment. But as part of our long-term plan we expect the turnover to cross Rs 500 crore over the next five years and then maybe go for an IPO."

He also said that the company plans to increase its representative strength from the present 400 to around 1,000 in the next three years.