Flamingo drugs now in India

Flamingo Pharmaceuticals, a Mumbai-based export oriented company, has embarked upon a major expansion programme to enhance its domestic distribution network, as it plans to introduce nearly 20 new drug formulations in the Indian market in the next six months.

The new drug category will include generic formulations to fight cardio-vascular disease and diabetes, apart from anti-biotic and hospital care products like anesthesia.

At present, the company manufactures 20 generic formulations at its two manufacturing units in Maharashtra. The total capacity of the two units is close to 800 million units of tablets, capsules and injectable medicines.

Over the next two years the company plans to invest nearly Rs 100 crore towards doubling its present capacity.

Flamingo started domestic marketing activities in October 2006, and since then has employed nearly 1,000 distributors. The company is eying a revenue of Rs 25 crore in the first year of its domestic operations. By 2011, it plans to reach Rs 300 crore mark through domestic operations. The company is eying a total turnover of Rs 500 crore through export and domestic operations.

Last fiscal, Flamingo had a turnover of Rs 125 crore from exports. About Rs 60 crore came from contract manufacturing activities for nearly 20 multinational drug companies.

"For the first phase of expansion about Rs 100 crore has earmarked. We will invest around Rs 30 crore from our internal accruals. For the rest, we are examining the possibility of raising money through private equity or IPO," said K K Puri, director, Flamingo Pharmaceuticals.