From the national independence in the late 40s, the Indian companies have acted in two ways – either forging partnership with a globally acclaimed conglomerate or remaining as the raw material supplier to any multinational corporation. But now, it seems, those days are gone and Indian companies are desirous to capitalize on the changing worldwide fiscal scenario and Dr. Reddy’s Laboratories, Indian pharma major, is set to be the vanguard. How?
India’s second biggest pharmaceutical company has an exceedingly optimistic plan and it is to pay money for brands in Russia and introduce new products in India. The only reason behind all these endeavors is that it plans to expand businesses in key emerging markets.
“In India, we were among the top 10 pharma companies a few years ago and we expect to be back there, ” Satish Reddy, MD and COO of Dr Reddy’s told reporters during an interaction with company executives last weekend. Mr. Reddy added the slip in the market ranking was on account of the management’s deficiency of focus in the country’s operations and limited drug launches.
Why is Dr. Reddy’s Laboratories focusing on Russia then? As indicated by the company’s key officials, Russia is one of its crucial markets and contributed Rs 180 crore ($38 million) in its second quarter’s sales. The company, it has come to the knowledge, is also open to marketing alliances with other companies in the Russian market, including those from India.
What is the current position of Dr Reddy’s in India? As maintained by research firm ORG IMS, at the moment, Dr Reddy’s is ranked 13th with about 2.7% share in the Rs 37,000-crore domestic drug retail market. The company also has a limited presence North and East India.
It ought to be stated that following its recent agreements with UK-based GlaxoSmithKline (GSK), a number of of its drugs would be marketed by GSK in those developing markets where Dr Reddy’s is not present or exited a moment ago.