Looking outwards

INTERVIEW: Manish Doshi

'Our plans revolve around strengthening our R&D'

Amoli Organics is a member of Amoli Group of Companies founded by Umed Doshi 40 years ago. The group is engaged in the manufacturing and marketing of active pharmaceutical ingredients (APIs) and intermediates. It's a leading manufacturer of diclofenac salts and carbamazepine' has two multi-purpose plants with reactor volume nearly 400 KL, follows WHO Good Manufacturing Practices (GMP), has a full-fledged R&D center, undertakes contract research and custom synthesis, and has a large client base which includes many multinational companies. Amoli has a 500-odd workforce. A government of India recognised export house, it exports to more than 45 countries. Amoli Managing Director, Manish Doshi (also the Indian Drug Manufacturers Association (IDMA) general-secretary), shares his vision how he wishes to take his company to a Rs 180 crore turnover in the next two years. What is your share in the domestic pharma market? How do you hope to improve your position?

We are consistently looking at opportunities and have been registering a 30 per cent in the dometic market over the last two years. We intend keeping up this pace of growth, even exceeding it perhaps, taking our current Rs 100 crore turnover to around Rs 180 crore in the next two years. Our plans revolve around strengthening our R&D which currently accounts for around two per cent of our turnover; increasing our capital expenditure; and increasing our customers' trust.

How are your exports growing? What are the new markets you have identified for exports?

We are already active in regulated and semi-regulated markets. However, since the last couple of years, we have been concentrating more on regulated markets since the yields here are better than in unregulated markets. We are moving at a rapid pace and expect to add Rs 15-20 crore each year to our exports' revenue over the next 2-3 years.

What is your current manufacturing capacity? Any plans for expansion in India and foreign markets?

It's difficult to put a finger on the exact volume of business we do since there are so many types of API (active pharmaceutical ingredients or bulk drugs). All the same, we have a 400 KL reactor capacity and we have achieved a 90 per cent capacity utilisation throughout the year.

What is your take on contract manufacturing and research for major Indian foreign companies? How is this part of the business going to grow in future?

It's true that contract manufacturing holds a lot of potential. The reason is that India has a rich pool of technical resources and is ahead in quality manufacturing. China is ahead of India in the volumes game. However, India has the necessary management skills to deliver what our clients are seeking and it's here that we score over China.

What sort of challenges are you anticipating in the days to come?

The biggest challenge is, and will remain, China. It is catching up with whatever skills India has "� and very rapidly. We, on the other hand, are not improving upon our own disadvantages. For instance, we have to modify our taxation structure "� our tax on energy consumption is among the highest in the world.

What are your expectations from the government? Is the government kind to SMEs in the pharmaceutical sector?

We have no grievance with the government. We understand their situation. However, the government does not give SMEs any special preference in the policy document. There can be extra benefits provided to exporters from the SME category. The government could also facilitate the process of venture capital (VC) funding to strenghten the SME sector.

"The biggest challenge is, and will remain, China. It is catching up with whatever skills India has "� and very rapidly"

Manish Doshi, MD, Amoli Organics