Bayer Eyes Bigger Share Of Pharma Pie
Bayer (India) Ltd, the 51 per cent subsidiary of German major Bayer AG, is planning a fresh strategy to grab a sizeable share in the pharma market.
In consultation with its parent, it is working out a plan of action to improve its minor position in the market. A major player in agrochemicals and chemicals, pharma forms a small portion of its overrall turnover. Bayer (India) managing director Alan McGilvray is scheduled to meet soon with a team from Bayer AG to discuss the plans finer points.
We are in the process of reviewing the complete pharma market in India, since we are not at all happy with our market position, said McGilvray to Business Standard. Bayer (India) posted a Rs 446.4-crore ( net of excise) turnover this year with the agrochemical business contributing 61 per cent. The rubber chemicals business comprises 23 per cent of the total turnover, while the pharma business share is 13.5 per cent .
As part of its efforts, Bayer is seeking good manufacturing practices (GMP) certification for its Thane plant. This will enable the company to increase pharma exports from the plant. Also, the certification is essential to increase presence in export markets such the US, the UK and Germany. Approval is also being sought for increasing capacities at the plant. At present, the Thane plant makes agrochemicals, rubber chemicals and pharmaceutical products. Bayer AG had recently started sourcing its requirement of the bulk drug mebhydrolin napadisylate from the Thane plant.
I intend to meet with our world-wide pharma management in the near future to discuss our strategy for this very important market, explained McGilvray.
The fresh thrust on pharma is a logical fallout of the German parents decision to focus on this fast-growing market.
Bayer AG has set up a wholly owned subsidiary called Bayer Industries Ltd, which will make and market chemicals and healthcare products and source raw materials for the German multinationals global requirements. Besides, Bayer Industries will undertake research and development work. Bayer AG is a DM 44.6 billion diversified chemicals and healthcare major. It has six companies in India--Bayer (India) Ltd, Bayer Diagnostics India Ltd, Bayer Sanmar Ltd, Bayer Indian Syntans Ltd, Bayer ABS Ltd and a wholly owned subsidiary Bayer Industries Ltd.
Charge of the Teutonic brigade
Bayers thrust on pharma is in line with its aggressive approach to the Indian market. In the last one year, the company has forged a majority joint venture with south-based Sanmar group and taken over management of two companies, Indian Syntans and ABS Industries. The aim is to acquire more companies and products in key groups and grow the pharma business, which has been languishing so far.
Like Bayer, fellow German major BASF has also announced big plans for India. BASF has set up a Rs 2,300-crore corpus for increasing the focus on its Indian operations. The companys 100 per cent subsidiary will source chemical raw materials from India.
Hoechst AG, another chemicals giant, has also entered into joint ventures in India and has set aside Rs 1,700 crore for investing in new and existing businesses.
Moreover, Knoll AG and E Merck have set up 100 per cent subsidiaries to export bulk drugs and pharmaceuticals, manufacture and market herbal products and conduct clinical trials.