Alpa Labs ties up with Nigeria's Tinez Pharma

CNBC-TV18 has learnt that Alpa Labs is in a tie up with Tinez Pharma in Nigeria, for a product distribution venture.

Tinez Pharma is among the largest importers in Nigeria. The tie-up is for 15 products and will be effective immediately. At present, Alpa Labs has approval for 15 products and are in talks to get approval for 15 more products from the government over there.  

This tie-up will add Rs 20 crore to Alpa Labs’ FY08 sales. The Alpa-Tinez deal profit margins are seen at 10% and it is likely to add 20% to FY08 profits.

Jayesh Patel , CEO, Alpa Labs said that the sales in FY08 from the Nigeria tie-up will be about Rs 20 crore and the net profit will be of Rs 2 crore. 

Excerpts from CNBC-V18’s exclusive interview with Jayesh Patel:

Q: How much would this product contract add in terms of sales to your company?

A: At the conservative end of expectation, we are expecting the sales in FY08, from this tie-up, to be around Rs 20 crore, with a net yield of Rs 2 crore.

Tinez in one of the biggest pharma importers in Nigeria and Nigeria is a very big generics pharma market. We, being in that space, are happy to tie up with Tinez.

As more of our products get registered with Nigerian authorities, these numbers will tend to move upwards.

Q: What do you think you might do in FY08, in terms of total sales and profit, post this arrangement coming through?

A: For total sales, we are on target as we had projected earlier, to about Rs 150-160 crore and with PAT of about Rs 15-16 crore.

Q: Does it factor in the tie-up you had with the Nigerian company?

A: Right now, we have not realigned all our figures to see if it is going to have an impact on the overall margins, as well as overall sales. But this is not something that had been factored in earlier. So, this would add to our earlier figures that we had.

Q: Lotus Global picked up about 3% stake in your company. Was that through promoters or through open market purchase of public shareholding?

A: It was through open market purchase.