Cipla Five-Month Turnover Up 7%

Cipla has registered a seven per cent growth in turnover for the first five months of 1997-98. This was informed by the company's chairman and managing director, Y K Hamied, during the annual meet yesterday.

He said a sales target of Rs 500 crore has been set for the full year. Attempts will be made to maintain margins this year, though last year's profit was boosted by one-off interest income, he added.

Explaining future plans, Hamied said Cipla will invest Rs 25 crore for expanding facilities at its existing manufacturing sites, particularly on the phase two of the Pune factory.

 

Shareholders expressed concern over the reported sale of promoters' stake in Cipla to Glaxo. Replying to persistent queries, Hamied said "I deny it as there is nothing from my side".

Company sources said underwriters involved in the rights issue fiasco wanted to reach a settlement with Cipla.

Seven underwriters had earlier defaulted on their payments and some had filed a case against the company.

Cipla sources said that, at the Sebi hearing in August, an adjournment was sought by underwriters for reaching a settlement.

At the annual general meeting, shareholders passed resolutions for the re-appointment of H Chawla, Amar Lulla and V C Kotwal as directors on the board. Besides, resolutions were passed for investing not more than Rs one crore in charitable trusts and Rs 87.11 lakh in Cipla Cancer & AIDS Foundation.

Hamied said the company was not looking for collaborations but was considering marketing alliances abroad.

He added that Cipla's applications for exempting drugs salbutamol, norfloxacin and ciprofloxacin are pending with the government and were expected to be looked into by the new National Pharmaceutical Pricing Association (NPPA).

Analysts are upbeat about Cipla's performance during 1997-98. An Inquire Equity Research report says that the company is working on developing a number of new drugs and drug delivery systems.

Cipla introduced a number of drugs during 1996-97. Azec, antibiotic, Cipril, combination hypertensive, Mytolar, cardio-vascular and Budecort, an anti-asthamatic are some of the new formulations.

Manufacture of new bulk drugs like acetazolamide, risperidone, stavudine, nabumetone and venlafaxine was also undertaken during the year.