RPG Life Sciences targets Rs 1,000 crore revenue in five years

The company is diversifying in new areas such as cosmetology and dermatology

RPG Life Sciences aims to quadruple its revenue to Rs 1,000 crore over the next five years through a mix of product in-licensing, product diversification and entry into the US market.

The company recently tied up with Italian firm Labo Cosprophar to sell cosmetology products such as anti-aging and hair growth treatments in domestic market. The products will be sold on prescription initially and through over the counter (OTC) in second phase.

The company’s managing director C T Renganathan said the focus is on growing formulations business and will introduce innovative and differentiated products in oncology and other therapies. He added company is in discussions with other firms for in-licensing these products.

 

RPG Life Sciences is a part of RPG Group and has an annual turnover of Rs 280 crore (FY16) but under Renganathan the company is looking to expand its portfolio, increase exports and enter new markets. About 40 per cent of the revenue comes from exports.

The company's formulations  units in Ankleshwar and active pharmaceutical ingredients plant in Navi Mumbai were served warning letters by the US Food and Drugs Administration (FDA) in 2013 and the company hopes to receive clearance from the regulator next year.

Renganathan said remedial measures are underway at the plants and the company  hopes to enter the US market by 2019.

"We are establishing partnership arrangement  for research and development and active pharmaceutical ingredients. We will make the formulations and supply to US either through a partner or directly. We are exploring both the  models," he added.

The company  is also diversifying in new areas such as cosmetology and dermatology. Currently its tie up with the Italian company covers only two products but is exploring marketing of more products in beauty and skin care.

Manuel Falsarella, President and international sales manager  of Labo Cosprophar said the company sees a big potential in cosmetology space in India and aims to capture ten per cent of market in hair growth and anti-aging segments. Currently the prescription market in these two segments is valued around Rs 250 crore.