Emerging mkts to equal US, Japan combined sales by 2018: Lupin

Drug firm Lupin is eyeing major expansions in emerging markets, including having on-shore presence in Brazil and Mexico, to make revenues from these regions to equal the combined sales of the US and Japan by 2018.

The drug maker, which posted a net sales Rs 4,740.5 crore in financial year 2010, had a combined sales of Rs 2,134 crore from the US and Japan, nearly 45 per cent of its overall revenues.

"...Our plan is to develop Lupin's onshore presence in all major 'pharmerging' markets, which by 2018 are expected to become equal to the US and Japan put together," Lupin Founder and Chairman Desh Bandhu Gupta wrote to shareholders in its annual report for 2010.

He, however, said the triad of the US, Europe and Japan would continue to be the major growth drivers for the company.
    
The company said its Asia, Africa, Middle East & Latin America (AAMLA) business division has a focused approach to to establish on-shore presence in promising emerging markets, through organic route, acquisitions or alliances.
    
"Brazil and Mexico have been identified as two of the emerging markets for an on-shore presence," it said.
    
Quoting IMS (2009) figures, it said the Brazilian market is valued nearly $15.4 billion, while the Mexican market is estimated to be around $11.4 billion.
    
The Brazilian market presents attractive opportunities in segments like gynaecology,cardiology, oral contraceptives and biotechnology, it added.
    
Lupin also said it is looking at strengthening its operations in other markets to drive further growth.
    
"We have established new beachheads in Europe, Africa and other important regions like Japan and Australia and we continue to explore and enter new territories to extend our global footprint," it said.
    
During the year, its South African subsidiary, Pharma Dynamics, posted revenues of Rs 132.8 crore up 57 per cent from FY 2009.
    
India also continued to be a main revenue driver for the company posting Rs 1,350.2 crore during the year.
   
"The growth was mainly driven by strong performance and increasing market share in the CVS, diabetes, CNS, asthma and gastro therapy segments," it added.