Emcure To Market Ciba Anti-Tb Products In Up

Emcure would be co-promoting our anti-TB drugs in the interior of UP, said K G Anantha Krishnan, marketing manager, HCG. It will pay an amount to Emcure as service charges which he refused to disclose.

This move is expected to help HCG increase its dwindling market share of its anti-TB market. The company, which was having 11.8 per cent share of the anti-TB market in January 1995 has declined to 10.6 per cent .

According Krishnan, Ciba has a field strength of 33 people compared to Emcure's 40. Its sales volume are expected to grow substantially as a result of the new arrangement.

 

The anti-TB segment of the pharmaceutical market is already under pressure from new entrants. From just 4 pharma-majors in 1994 the segment has 12 firms at present. According to industry sources this has forced Hindustan Ciba Geigy into this arrangement.

HCG is not expected to expand the arrangement with Emcure beyond UP. A separate venture is being worked out with Gems Pharmaceuticals for marketing the Hag's anti-TB range in Bihar.

With the Ciba Geigy employees already bracing for the merger with Sandoz, such link-ups are being looked at with suspicion.

Union sources have alleged that Emcure field employees are unhappy as additional work has been burdened on the marketing staff without adequate returns.

Hindustan Ciba Geigy's turnover was Rs 510 crore for the year 1995-96 against Rs 467.21 crore in 1994-95.

In the pharmaceuticals segment, the company recorded sales of Rs 138.8 crore in the year 1995-96, a growth of 4 per cent over the previous year.

The meagre growth rate was attributed by the company to lower sales and production of bulk diclofenac sodium.