With the 2005 patent regime drawing near, Nicholas Piramal India Ltd, the second largest pharmaceuticals company in the country, has devised a corporate strategy that will entail a Rs 400 crore (Rs 4 billion) investment over the next two years.
The three-pronged strategy, named 'Agya Chakra', will concentrate on consolidating the company's position in the global marketplace.
Ajay Piramal, chairman, Nicholas Piramal, said: "Through Agya Chakra we will work towards tapping the untapped potential in both the domestic and global markets. We will increase our presence in the domestic market, exports by enhancing the research and development capabilities."
The company expects a 25 per cent growth in the domestic market every year for the next three years vis-a-vis an estimated industry growth of 8-10 per cent.
This will be achieved through investments in increasing its field force and doctor coverage, introducing new products and technologies, in-licensing and raising the revenue share of its top-ten drugs from the current 30 per cent.
The drug maker is also weighing the inorganic route to hasten the pace of growth.
On the exports front, the company has set a target of increasing the contribution of exports revenues to the total from 10 per cent to 30 per cent by 2009.
"We have a very different strategy when it comes to exports. We believe it is more advantageous to collaborate with multinationals than compete. Towards achieving that, we will establish intimate relationships with innovation-oriented companies," said Piramal.
Nicholas Piramal has earmarked a Rs 100 crore (Rs 1 billion) investment for R&D activities for the financial years 2003-04 and 2004-05. The company will double the number of scientists at its R&D facilities to 400 by 2007.
"The non-chemical entity of our oncology cancer drug will go into Phase-I trials by the end of this calendar. We have begun doing work in the biotechnology field," Piramal said.
