Aurobindo Pharma's 5 arms in the red

Five of the eight subsidiaries of city-based Aurobindo Pharma Ltd have reported net losses totalling Rs 25.07 crore for the financial year ending March 31, 2004.

Aurobindo, which reported revenues of Rs 1,341.07 crore for the last financial year, has also made Rs 49.48 crore in fresh investments into five of its subsidiaries in the last fiscal.

The loss-making subsidiaries are Aurobindo (HK) Ltd, APL Holdings Inc, Aurobindo (Datong) Bio-Pharma Company Ltd, Aurobindo TongLing (Datong) Pharmaceutical Co Ltd and the ShangHai Widetex Chemical Co Ltd. These subsidiary companies reported losses of Rs 7.75 crore, Rs 0.61 crore, Rs 9.8 crore, Rs 5.85 crore and Rs 1.05 crore respectively.

The three profit-making subsidiaries include APL Pharma Thai Ltd which made a nominal profit of Rs 0.29 crore, APL Chemi Natura Ltd which made a profit of Rs 0.24 crore and AB Farmo Quimica Limitada which made a profit of Rs 2.8 crore.

The eight subsidiaries contribute close to Rs 386.15 crore in revenues with Aurobindo TongLing (Datong) Pharmaceutical Company Ltd alone contributing close to Rs 137.42 crore.

This apart the company has made fresh investments in the form of loans and equity in five of its overseas subsidiaries.

Aurobindo has infused Rs 4.56 crore in its Hong Kong subsidiary, Aurobindo (HK) Ltd as equity for additional working capital requirements, extended a loan of Rs 1.53 crore in APL Holdings Inc, USA, for a formulation facility, extended a loan of Rs 42.42 crore to Aurobindo (Datong) Bio Pharma Company Ltd in China for capacity expansion purposes, extended a loan of Rs 87 lakh to its Brazilian subsidiary for a formulation facility and invested Rs 8.6 lakh as equity in its Netherlands subsidiary.

Aurobindo's annual report points out that the company's international subsidiaries have been strategically located so as to facilitate global production and marketing initiatives.

"Significant advantages have been obtained from the China operations, and the company would stand to gain at all the locations as the business plans gather momentum," the annual report notes.