Ranbaxy aims to buy US brand

Ranbaxy Laboratories Ltd is likely to post over 20 per cent growth in turnover for the year ending December 31, 2004, the company's chief executive officer and managing director Brian Tempest said on Tuesday.

A 20 per cent growth would translate into a turnover of over Rs 5,400 crore (Rs 54 billion). In 2003, Ranbaxy had consolidated sales of Rs 4,516 crore (Rs 45.16 billion).

"When we started this year, we were looking at a 16-20 per cent growth (in turnover). We are now a little bit upbeat and hope to achieve over 20 per cent growth," Tempest told reporters on the sidelines of the India Economic Summit 2004.

In 2003, the pharmaceuticals major had earned a net profit of Rs 739 crore (Rs 7.39 billion), up 14 per cent on year.

Tempest said while Ranbaxy was open to the idea of acquiring a partner drug maker in India, its current top priority was to acquire a brand in the US and buy out a generic drug company in Germany.

However, he did not reveal a timeframe for these proposed acquisitions, adding that Ranbaxy's acquisition in France had taken three years.

"It may take time, may be 2-3 years to find the right company in Germany," Tempest said. "Our business in Germany this year has been the best in many years and the profits have been growing well," he added.

He said the company was currently expanding its business to Canada, Australia and Mexico. However, he did not detail the investments being made in these countries.

Ranbaxy's current turnover is 50 per cent from the US, 20 per cent from Europe, while the remaining comes from Brazil, Russia, India and China.

"While we are looking to expand business in India, which accounts for 18-20 per cent of our turnover, our key market continues to be US. What happens in the US generic market is important for us," Tempest said. He also said Ranbaxy's drug manufacturing plant in Brazil will come up early next year.

"We have bought land, hired a project manager, and the work has started on the plant," Tempest said.while refusing to comment on the investment made for the setting up of the Brazilian plant. The plant will support Ranbaxy's business in central America, he said.