Pharmaceutical major Ranbaxy Laboratories on Friday said it will set up a wholly-owned subsidiary in Spain as part of its strategy to expand presence in Europe.

The move comes close on the heels of Ranbaxy's entry into France through the acquisition of RPG (Aventis) SA, last month.

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The company plans to grow its business organically in Spain, launching products from its existing wide range of quality generic medicines though its wholly-owned subsidiary Laboratories Ranbaxy SL, based in Barcelona, a company statement said in New Delhi.

The Ranbaxy board, which met on Friday, gave its go-ahead to the establishment of a subsidiary operation in Spain.

With a prescription medicine market valued at around euro 7 billion and growing at nine per cent, Spain ranks ninth in the global market for prescription pharmaceuticals and fifth in the European Union, a company release said.

Commenting on the move, Brian Tempest, joint managing director and chief executive officer designate said: "This move is a key element in our strategy of expansion in Europe."