Sanguine outlook

INTERVIEW: Gopal Ramourti

'We need to be more innovative to attract clients'

Despite competition getting tougher, Gopal Ramourti, managing director of Pune-based Li Taka Pharmaceuticals seems confident of taking his company among the top 50 names in the sector. With two new manufacturing facilities being negotiated, the company forsees a substantial growth in the current financial year.

What is your share in the domestic pharma market and how do you hope to improve your position?

Right now, we have a negligible share in the overall pharma market which is commensurate with our ranking. But this is an industry where the leader's share ranges between 3-5 per cent of the domestic ethical prescription market. However, we rank in the top 100 in the country's domestic market, following our merger with the Twilite group.This will sharply improve our position to the top 50 within a year-and-a-half.

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

Our exports are growing at over 200 per cent annually and we expect to grow very sharply over the next two years for the following reasons. The company's strategy has been to approach semi-regulated/under-regulated markets due to possibilities of quick response and rapid growth. Third, due to the our merger with the Twilite group, contracts and sourcing of export orders have virtually doubled.

Any plans to enter advanced markets?

Yes, the company intends to enter markets like the US and Western Europe and our 4th manufacturing facility in HP will be set up keeping in requirements of regulated markets.

What is your take on contract manufacturing and research?

The company has been engaged in contract manufacturing for major foreign companies for many years now. We have been able to attract some of the biggest names in the pharma industry and food nutrition business. We foresee tremendous demand for high quality manufacturing facilities especially those with prior experience of handling large multinationals.

What is the kind of growth you foresee for this year?

The company expects to grow at over 40 per cent in the current year in all the areas of activities i.e domestic marketing, contract manufacturing and exports.

What is your current manufacturing capacity? What are the company's plans for expansion in India and foreign markets?

We currently have three WHO-GMP approved facilities in Maharashtra with adequate capacities to achieve a Rs 500 crore turnover. As for expansion plans, apart from the facility being set up in Himachal Pradesh, we are negotiating another acquisition for a injectible manufacturing facility in the country. The company is poised to achieve and fulfill the growing demand for formulations.

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

The market is extremely competitive and newer and innovative approaches to attract customers will be the biggest challenge in the days to come. Also, alternative medicines will pose a great challenge especially in India.

What are your expectations from the government? In your opinion is the government kind to the SMEs?

We expect the government to pursue the present policies where domestic pharma majors make available reasonably priced medicines and introduction of new molecules from multinationals at higher prices.

"The market is highly competitive and innovative approaches will be a big challenge in the days to come. Alternative medicines too will pose a challenge"

Gopal Ramourti, MD, Li Taka Pharmaceuticals