Aurobindo targets 33k cr biz by 2020
Drug maker Aurobindo Pharma Limited is looking to more than double its business to $5 billion dollars (nearly Rs 33,400 crore) in next five years. The pharma major is also planning to invest Rs 2,000 crore in Andhra Pradesh in the similar period.
To invest 2,000 cr in Andhra Pradesh over next 5 years
Visakhapatnam: Drug maker Aurobindo Pharma Limited is looking to more than double its business to $5 billion dollars (nearly Rs 33,400 crore) in next five years. The pharma major is also planning to invest Rs 2,000 crore in Andhra Pradesh in the similar period.
“Our objective is that we should have a turnover of at least $4-5 billion turnover by the year 2019 or 2020. We have clarity on our growth (prospects),” M Madan Mohan Reddy, Director, Aurobindo Pharma, told The Hans India on the sidelines of CII Partnership Summit here on Tuesday.
The company had reported Rs 12,120 (nearly $2 billion) in total revenues in the last financial year, representing a growth of whopping 49.6 per cent from the FY14. The company’s net profit also clocked 34.4 per cent to Rs 1,575.7 crore in the same period.
Asked whether Aurobindo’s revenues would cross those of Dr Reddy’s Laboratories, the country’s second largest drug maker, he refused to make a comment. “We can’t comment on that. It’s not about crossing (somebody’s revenues). Everyone is having their own strengths. They are there since long-time. Our growth is recent growth,” Reddy explained.
He further said that Aurobindo was also going for inorganic growth. “In the US, we acquired nutraceutical company. We are also expanding our own plants here as there is growth,” he said. On the investment plans in Andhra Pradesh, he said: “In AP, we are investing Rs 1,000 crore this year.
We started at Nayudupeta (in Nellore district). We will expand our plants every alternate year. Every plant has limitation on expansion. We will expand the plants till that limitation”. Our plan is to invest Rs 2,000 crore more in Andhra Pradesh in next four to five years. We will invest Rs 400 to 500 crore every year, he revealed.
He also said that Aurobindo would have to set up a new plant every three years given the growth targets the company had set for itself. “We are also spending lot of money on R&D (research & development) and expanding our plants in Telangana,” he added.
Reddy, who is also vice-chairman of Pharmaceuticals Export Promotion Council of India (Pharmexil), said that representatives from the pharma industry body were in Visakhapatnam to meet AP Chief Minister N Chandrababu Naidu to discuss challenges faced by the industry in the State.
“They called for some meeting on pharmaceutical industry. We came here to appraise them about pharma industry, its possible growth in AP and also to take the government inputs. We need some support from the government,” he said.