Ranbaxy lines up Brazil unit

Ranbaxy Laboratories is setting up a manufacturing facility in Brazil to cater to the Latin American market.

It has also established a regional office in Rio De Janeiro. Ranbaxy is the fifth largest generic company in Brazil with sales of $32 million.

The plant is coming up on the outskirts of Rio and is expected to be complete in 2006. Ranbaxy entered the Brazilian market in 2000 and the new plant would support Ranbaxy's regional business in Central America.

Though the company is unwilling to disclose financial details, it is learnt that the plant would produce drugs that are already being supplied to the Brazilian market. These would include anti-infectives, cardiovasculars and CNS drugs.

"Besides the development of capsule and tablet medicines, the company will study the production of creams and syrups," senior Ranbaxy executives said.

It is not clear what market share the company hopes to capture in the coming five years.

The company's operations in the region include in countries like Brazil, Peru, Mexico & Venezuela which together account for around $50 million.

The last couple of years have been rife with rumours of Ranbaxy's manufacturing plans in Brazil, since the company is the largest international generic player in the market.

Brazil has been a lure for other generic drug companies (those that make medicines that are chemically equivalent to an original drug) because it is among the fastest growing markets, said an analyst tracking the pharma industry.

Globally, Ranbaxy has manufacturing units in more than seven countries including India, China, Ireland, Malaysia, Nigeria and the US. Its principal manufacturing facilities are located in India (in the states of Punjab, Himachal Pradesh and Madhya Pradesh).

Ranbaxy's global business model envisages feeding the global generics market from its low-cost units in India.