Eyeing 18-20% growth in domestic market in FY13: Ipca Labs

Exectuive director of Ipca Labs AK Jain told CNBC-TV18 that Ipca Lanbs aims to grow by 18-20% in the domestic market in FY13. “In the next three to five years, we are looking for 30% growth in the international segment as well,” he added.

Ipca’s domestic business grew by a sluggish 8% in FY12, but strong business revival in the later quarters of the year helped pick up the business. Jain goes on to say that the company could achieve higher than guided revenue target of Rs 350 crore if they get WHO’s go ahead for a second anti-malarial drug. "If it get delayed, then probably the business could be little lower,” he added. Below is an edited transcript of his interview with Udayan Mukherjee and Mitali Mukherjee. Also watch the accompanying video. Q: How’s your branded generics business doing, particularly some of the international markets like Latin America (Latam) and CIS? A: This part of the business in last five years has been growing by almost around 30% and this year also we had a similar kind of growth. In the next three to five years, we are looking for a very good growth in this segment. The business is driven by the CIS market and then the French speaking African market and then Latam, so these three markets have done very well for us. Q: The problem for your company has been what’s happened on the domestic business side. Is there any change on that in terms of visibility for this year? A: Domestic business is on revival now. In last five years, we have been on an average growing by around 18-20%. This is the only year where our growth rate was very low at around 8% or so. From third quarter and fourth quarter we have seen good amount of business revival, so we will be around 18-20% kind of growth in domestic market in the current financial year. Q: Can you give us some specific details on the institutional tender business in anti-malaria? A: This business on anti-malaria, particularly with WHO, has really done very well in last financial year. We did business of almost around Rs 300 crore from a base of around Rs 100 crore which was there a year before. We have right now one product approval from WHO, we are expecting a second product approval which may happen anytime in next three to four months. So we see a good amount of business growth coming from anti-malarials, particularly after the second product addition. Q: You had guided for Rs 350 crore in terms of revenues in FY13 from the institutional business. Are you holding that target or do you think you could better it? A: We are holding that guideline. It all depends on when we get the second product approval. If it get delayed, then probably the business could be little lower, but if it comes early then business could even be better.