Plethico Pharma to bank on CIS nations for exports

Plethico Pharmaceuticals, an emerging global healthcare company, has made the commonwealth of independent states (CIS) its export hub, as 70 per cent of its exports are to these places. The CIS nations are untapped markets with relatively easy FDA rules.

"CIS nations do not have stringent norms like the US FDA. They have a strong payment position and huge demand potential. But there is no backup in these countries for manufacturing facilities. So, we decided to enter this market in 1996 to explore the opportunities," said Hemant Modi, general manager (finance), Plethico Pharmaceuticals.

"Sixty eight per cent of our total turnover of Rs 225 crore comprise exports, of which, the CIS nations generate around Rs 107 crore," added Modi.

The company acquired a marketing and distribution chain in the CIS, with subsidiaries in Ukraine, Kazakhastan, Moldova, Azerbaijan and Kyrghystan. "These are part of an integrated distribution network throughout the country. We have tied up with distributors known as Aptica in these countries. They have a strong network to distribute medicines," said Modi.

It deputed its own team in all the CIS countries to carry out the marketing operations. Some of its products like over-the-counter (OTC) products marketed through television advertisements are selling briskly.

"We are selling ayurvedic, allopathic and herbal medicines in these countries. We are leaders in cough and cold preparations marketed under the brand name Transvisil - a herbal preparation for sore throat," he said.

Transvisil is also the company's blockbuster product. It fetches 41 per cent of its all export products which is around Rs 20 crore. Another brand recently launched was Therasil. It is the allopathic preparation for cough and cold.

Outside the CIS market, Plethico's largest market is African countries, especially in East Africa, with 18 per cent share of its total exports. It is also setting up a new manufacturing plant via joint venture in Kenya.

Other markets include Latin America, Gulf cooperation council members and South East Asia.

"With over 400 different formulations in more than 39 therapeutic segments, Plethico has a strong presence in anti-malarial, anti-tubercular, anti-infectives, pain, cardiac, gastro and cough and cold," said Sanjay R Pai, general manager - international, account and finance .

"We now intend to increase our presence further in all these segments and focus on the other export markets too besides CIS. We are expecting 100 per cent growth from all our export markets in next two years," said Pai.