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Dr Reddy's shifting export focus

Rajesh Unnikrishnan

Dr Reddy's Laboratories is shifting its export focus to growing markets like Brazil, Vietnam, Venezuela, Myanmar, China and Sri Lanka from its traditional market in the CIS countries.

As a first step in this direction, it has begun a $1 million alliance with a Brazilian pharma firm for marketing and distribution of its entire range of formulations in Brazil.

Satish Reddy, managing director of Dr Reddy's Laboratories said: "The growth in countries like Brazil, Vietnam, Myanmar and Venezuela will be faster as compared with the CIS countries. We have tied up with a Brazil-based pharma company for the supply of formulations." However, he declined to divulge the name of the foreign company.

Formulation exports constitute 28 per cent of Dr Reddy's total exports of Rs 3 billion. Of these 62 per cent is exported to the CIS countries alone. Dr Reddy's brands like Omez (anti-ulcer) Enam (CV care) are the market leaders in the CIS market.

Reddy said the company is also in talks with several firms abroad for possible marketing alliances. In China, Dr Reddy's has already formed a joint venture with Kushan Double-Crane Pharmaceuticals and in Canada with Rotam Enterprises.

The company has also appointed local sales forces in Venezuela, Myanmar and Vietnam, where its sales have crossed more than $1 million.

Analysts said the company's export receivable from CIS and Russia were affected drastically in the financial year 2000, due to the crises in these economies and this could be a reason for the company's plans to shift its focus to growing markets.

Meanwhile, Reddy's Laboratories has unveiled its corporate identity and philosophy - 'Life. Research. Hope' - reinforcing its commitment of bringing hope to life through research.

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