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Sun Pharmaceutical Industries, which recently completed a $3.2-billion acquisition of Ranbaxy Laboratories, is considering rationalising its manufacturing network. Of the combined entity's 45 manufacturing plants, 21 are Ranbaxy's.
Chief Financial Officer (CFO) Uday Baldota told Business Standard no decision had been taken on plant closures.
More than two months after the Sun-Ranbaxy deal secured all regulatory approvals, the Dilip Shanghvi-led company is in the middle of integration.
Baldota did not give any indicative number when asked how many Ranbaxy employees might have to leave. "In a growth organisation such as ours, performing people will always be required to drive growth," he said. Recent reports said about 20 senior Ranbaxy executives have been asked to leave.
Earlier, Sun had said it was looking for an appropriate role for Ranbaxy's chief executive and managing director, Arun Sawhney, in the merged entity.
Following the acquisition of Ranbaxy, Sun has overall employee strength of about 30,000, with the two entities accounting for almost equal numbers.
Asked about the company's top focus areas, Baldota cited regulatory compliance, in addition to pursuing Sun's growth agenda. "It is substantial work for us to regain the confidence of the American regulator," he said.
Ranbaxy has been under a US Food and Drug Administration import ban for long over alleged violations in manufacturing practices. Some of Sun's facilities have also come under scrutiny in the past. "As expectations of regulators are increasing, we have to keep pace with those," Baldota said.
Therefore, the company was investing in training people and ensuring better checks and controls, beside strengthening internal audits.
Sun wasn't looking at any fresh acquisitions, as that might "take away the management's time or attention away from current issues," the CFO said, adding it was planning expansion in emerging markets.
Asked about the priority in terms of the Indian and international markets, Baldota said it wasn't a question of "either or". While it was important to remain a leader in India, growing the international business was a priority because of the opportunity abroad, he added.
About 25 per cent of Sun's total business is accounted for by the Indian market.
Sun Pharma is emphatic about the significance of the domestic market. Of its 30,000 employees, 8,000-9,000 are devoted to the India business. And, of its overall revenue of Rs 25,000 crore, Rs 7,000 crore is from India business.
