Rhone-Poulenc (India) (RPRI) has posted a marginal increase of around two per cent in the first five months turnover for 1997-98. Sales stood at Rs 61.22 crore compared with Rs 60.14 crore for the same period last year.
Speaking at yesterday's AGM, D D Chopra, chairman, RPRI, said the company would have to suffer for two years as currently a restructuring of product portfolio is being carried out.
RPRI has acquired several generic products and two brands from Max India for a consideration of Rs 3.25 crore and is expecting to generate revenue of around Rs 24 crore on an annualised basis from these, Chopra added.
Six products have been discontinued.
He said the company was suffering heavy losses on account of spurious drugs in some markets. He said the company was incurring major losses on account of the spurious reproduction of its major brand, Phensedyl, which contributes 40 per cent of the total turnover.
Replying to shareholders queries regarding an increase in the parent company's holding from 40 to 51 per cent, Rhone-Poulenc Rorer (India), B Girette, vice president, Middle East for Rhone-Poulenc Rorer, said they are keen to increase their operations in India but there is no urgency to hike the stake.
Regarding the merger of another group company, he said the nature of business and operations justified the continuance of separate operations.
Rhone-Poulenc recently closed the Bhandup plant for 14 days due to inventory build-up. However, the problem will be resolved soon, said Chopra.
Meanwhile, RPRI will pay three per cent of its domestic turnover and five per cent of the export turnover as royalty to Rhone Poulenc Rorer, France. The company will pay Rs 2.5 crore as royalty this year.
Rhone Poulenc Rorer will be sourcing part of its requirements from Rhone Poulenc (India). Nigel Toft, who replaced A M B Henderson on the board, said the parent company is interested in sourcing its requirements for the European and Chinese market from the Indian subsidiary.
