Promoters not selling out, plan to scale up revenues: Cipla

Pharma major Cipla today said it expected revenues to grow over six times to Rs 15,000- 20,000 crore by 2020 and assured shareholders that the promoters have no plan to divest their stake in the company.

"With a significant growth in the business, we are expecting revenues to grow to between Rs 15,000 crore and Rs 20,000 crore by 2020," Cipla Chairman and Managing Director YK Hamied told shareholders at the 75th annual general meeting here.

Hamied assured shareholders that he or his family have no plans to divest their stakes in the company.

"We want Cipla's name to grow over and over forever... I can assure you that most of them [stake sale reports] are baseless."

Earlier this year, there have been reports that founders of Cipla were planning to sell out and German pharma major Merck would buy the domestic drug major. Besides, there was also a rumour about Japanese drug major Takeda Pharma being interested in the company.

The company had achieved net revenue of Rs 6,135 crore in 2010-11.

In the first quarter of 2010-11, the domestic drug market grew by 14%, while Cipla grew by 10.11%, Hamied said.

However, Hamied declined to give any specific guidance for the current fiscal. "This year, with the rationalisation planned, your company is aiming to stabilise and consolidate," he said.

The company is upgrading its facilities at Kurkumbh, Baddi, Sikkim, Patalganga and Goa at a capex of Rs 600 crore, he said. This would also include the R&D centre at Patalganga (Maharashtra) and Vikroli in Mumbai.