Jubilant looks overseas to corner 50% revenues

Jubilant Organosys Ltd plans to mop up half of its revenues from overseas markets in three years. The company earned Rs 364.4 crore from international sales in 2004-05 against Rs 228.5 crore in the previous fiscal.

Riding on acquisitions, the company targets the custom research and manufacturing (CRAM) segments and less explored, bio-informatic and chem-informatic market.

"We expect around 50 per cent of our net sales to come from international sales especially in the next three years," said Shyam S Bhartia, chairman & managing director, Jubilant Organosys.

The company has acquired 100 per cent stake in US-based Target Research Associates Inc for $33.5 million. Last year, Jubilant had bought over 80 per cent stake in Belgian companies Psi and Psi Supply for $17 million and followed it up with controlling stake in US based Trinity Labs and its subsidiary Trigen for $12.25 million this year.

"We are scouting US and Europe for CRAM and research service companies", commented a company spokesperson. We will continue with our mix of both organic and inorganic growth as the latter accelerates our entry into newer markets and business segments", added Bhartia.

As for greenfield ventures, a facility for finished solid dosages in Uttaranchal is likely to come up by December, 2006 while two plants would be set up in Gajraula (UP) for expanding its CRAM facilities and one active pharmaceutical ingredient (API) unit in Nanjangud.

Bio-informatics and chemo-informatics is another business segment that is looking up for Jubilant. "With the largest 'kinase' database in the industry with over 235,000 molecules, it generated Rs 10.7 crore last year for the company. We expect a growth rate of 100 per cent here this year", added the spokesperson. It already counts Pfizer, GSK, Novartis, Eisai of Japan, German Schering AG and John Hopkins School of Medicine amongst its clients.

Undertaking minimal risk is paying off for now. In the US market, all the three Abbreviated New Drug Apllications (ANDAs) for the off patent drug Oxcarbazepine, have been filed using Jubilant's DMF. Hence, the slicing of the market pie doesn't affect it and it stays comparatively insulated from price erosions.

Jubilant Organosys was predominantly a chemicals company until it acquired Max's API unit in 2002. Now, the pharmaceuticals business contributes 42 per cent to the revenue and about 57 per cent to the operating profit and is the segment where Bhartia is looking for growth and further consolidation.

OFFSHORE CALLING

---

• The company to target custom research and manufacturing segments and the less-explored bio-informatic and chem-informatic market.
• The company has acquired 100 per cent stake in the US-based Target Research Associates Inc for $33.5 million.
• For greenfield ventures, a facility for finished solid dosages in Uttaranchal is likely to come up by December, 2006 while two plants would be set up in Gajraula (UP) and one API unit in Nanjangud.