Yusuf Hamied, chairman, Cipla says the company is likely to grow its exports from the current 55 percent to 70 percent.
Speaking to CNBC-TV18’s Senthil Chengalvarayan, Hamied says the company is also targeting a growth of USD 3-4 billion by 2020.
On the days to come, Hamied says the pharma major may open units in foreign countries just like its peers.
The company's Q3 net sales grew 10 percent to Rs 2,281 crore from Rs 2,079 crore during the same period while total expenses jumped 18 percent to Rs 1,961 crore compared to a year-ago period.Below is the verbatim transcript of the interview.
Senthil: Will your company’s focus on exports grow now?
A: Today, 55 percent of Cipla’s business comes from abroad. About 45 percent is local and I see this figure going up – 70 percent abroad and 30 percent local.
Senthil: Today most of exports come you sell to foreign companies. Others like Ranbaxy and Lupin have chosen to setup their own companies abroad. So, what is the model going forward?
A: Model going forward is that some countries are insisting for local manufacture like Brazil, Turkey. In some countries we would do so. We already have a factory in Uganda; we already have a factory in South Africa. We already have partners in China. So, it is a process of evolution. I think we will have to go overseas like our colleagues in the industry have already done.
Senthil: You said you need to plan for five years. I think you have set yourself a target for USD 5 billion by 2020?
A: I hope so, it may not be USD 5 billion, it maybe USD 3-4 billion. This year we are crossing just under or crossing the figure of Rs 10,000 crore.
Senthil: You have always also built your own path so the government aside what will Cipla do to achieve that?
A: We are today exporting to about 150-160 countries. So, all our eggs are not in one basket. Some of our colleagues in the industry have targeted America. We have probably not targeted America like they have. Therefore, they have gone ahead in the topline, bottomline but they have also gone ahead in their headaches and worries as you see in the press recently.
Senthil: Does it worry you that it will cause the Indian industry reputational damage beyond control?
A: We have to live by the laws of the land and different countries have different rules. We have 30 factories in India today out of which atleast 15 are USFDA approved, European approved and Japan approved. Australia, South Africa, Saudi Arabia all of them come for audit. We have had many deficiencies but we have never, by the grace of god, received what is called a warning letter like some of our colleagues received.
Senthil: You succession plan; you have got family in the company, you have got nephew and your niece and you made news by recruiting a lot of people from outside; top names from outside. So, what is succession looking like?
A: With the growth of Cipla and like you yourself said if we are aiming at USD 4-5 billion by 2020, we have to manage a company professionally and it is very difficult. Cipla has 20,000 employees in India. I can’t manage so the change has to take place.
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