Nicholas Piramal India has chalked out a four-pronged growth strategy for its businesses including spin-offs of low value-added businesses to counter growing competition in the domestic industry.
It has identified pharmaceutical formulations, both ethical and over-the-counter, as thrust areas. The company also proposes to build up its research and development base and leverage it to take strategic positions at the frontiers of new technology.
According to the company's corporate review for 1998-99, the four fundamental corporate strategies are:
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continuous introduction of new products, brands and healthcare services from a growing product pipeline
strategic partnerships with well-known international and domestic players
strategic spin-offs of low value-added businesses that are tangential to core healthcare activities
sustained investment in high quality research and development
The growth plan has already been initiated with the spinning-off of the flaconnage and bulk drugs division into two separate companies, entering into strategic alliances as well as introduction of new brands.
Decentralisation, empowerment and networking improved the company's sales and profit during the financial year 1998-1999. Besides the new products launched and marketed by its joint ventures and alliances, the company launched 12 new brands including Recormon, Accutrend, Amexyl and others. It is planning to launch many more products in the near future like Gaviscon.
Building shareholders' value is being seen as the company's thrust area. Under way are a slew of steps including making the company's balance sheet more transparent.