Mumbai: With a view to give a sharp focus to its formulations business, RPG Life Sciences has set up two new verticals and plans to launch nine new products by the end of this month, a top company official said on Monday.
“We have set up two verticals—empathy (neuro-psychiatry) and neolife (oncology) and will launch nine products from the two divisions by July-end. Five will be from empathy and the remaining four from neolife,” RPG Life Sciences’ managing director A S Chouhan told PTI.
The two new verticals which were set up over the weekend would give a sharp focus to RPG’s formulations business which has been growing rapidly over the last two-three-years.
The Harsh Goenka-led company has also invested in human resources and has upped its formulations marketing team from 325 to 410 and plans to take it up to 550 by end-this fiscal, Chouhan said.
“We are very strong in formulations and we want to now leverage our strengths in the marketplace and hence, the decision to beef up our marketing,” he said.
The formulations business contributed Rs100-crore of the company’s turnover of Rs163-crore in FY 10, having grown to Rs84-crore from Rs66-crore in the previous years. Its PAT in FY 10 stood at Rs10.8-crore.
“Overall, we are on track to become a Rs200-crore company in the next two-years,” Chouhan said.
The company is now awaiting US FDA approval for its two immuno-suppressants plants at Vashi and Ankleshwar as well as for its multi-purpose plant at Vashi. It has two plants at Ankleshwar.
It had recently invested Rs25 crore in its plants to make them FDA-compliant and has earmarked a further Rs60 crore investment over the next three-years to add capacity.
The formulations business provides a tremendous opportunity with its present market-size pegged at around Rs70,000-crore. It is expected to rise to Rs1,00,000-crore by 2014, he said.