German drugs and chemicals firm Merck KGaA will invest one-fifth of the current revenue of its Indian subsidiaries over the next two to three years in an attempt to increase revenue from these companies to €500 million (Rs3,280 crore) by 2013, said Karl-Ludwig Kley, chairman of the executive board of the company who is currently visiting India.
The company operates in India through wholly owned subsidiary Merck Specialities Pvt. Ltd and Merck Ltd, which is listed on the stock exchanges. Plans for India: Karl-Ludwig Kley, chairman of the Merck KGaA executive board, says India is on the firm’s global development map and there will be more products coming the country for development studies. Ashesh Shah / MintMerck Ltd ended 2007 with a revenue of Rs314 crore. Although Merck Specialities is privately held and doesn’t disclose its revenue, the aggregate revenue of Merck KGaA’s Indian arms in the first half of this year was around €150 million.
The planned investments will go towards expanding production, infrastructure, and research and development infrastructure. The Indian business currently has two research centres in Navi Mumbai, Maharashtra, and Goa, and will set up a third in a location that is yet to be finalized.
Kley added that the company would also look to acquire “technologies and brands” to expand its presence in India, with investments for “such acquisitions…coming in addition to the already planned ones.”