DRIVIN G ROWTH - Dr. Reddy's

MUCH OF THE CASH FLOW ARISING OUT OF FLUOXETINE
WILL BE INVESTED IN MOVING UP THE VALUE CHAIN — IN
DRUG DISCOVERY, R&D, INNOVATION, ACQUISITIONS AND
COMMERCIALISATION.
2002, the joint venture had secured 7
product approvals, with another 12 in the
pipeline.
In India, Dr. Reddy’s total revenue has
grown by 13 per cent — from Rs. 5,362
million in 2000-01 to Rs. 6,041 million in
2001-02. This has been driven by a 15 per
cent growth in the revenue of APIs (from
Rs. 1,433 million to Rs. 1,641 million), and
11 per cent in that of branded formulations
(from Rs. 3,642 million to Rs. 4,042
million). In addition, emerging business,
though small in absolute terms, grew by 25
per cent to Rs. 358 million.
In December 2001, Dr. Reddy’s acquired
six brands in the dental segment from the
Mumbai-based Group Pharmaceuticals,
propelling us to No. 1 position in the dental
segment as per CMARC’s prescription audit.
SBU performance
WE NOW MOVE ON to the
performance of Dr. Reddy’s Strategic
Business Units or SBUs. These are: (i) APIs
or bulk actives, (ii) branded formulations,
(iii) generics, (iv) emerging businesses, and
(v) custom chemical services or CCS. Table
2 gives the revenues according to SBUs.
APIS (BULK ACTIVES)
DURING THE YEAR, the APIs business
Table 2
|
Dr. Reddy’s revenues according to SBUs
RS. MILLION
2001-02 AS A% GROWTH % 2000-01 AS A %
API (bulk actives) 4,997 32% 16% 4,312 44%
India 1,641 33% 15% 1,433 33%
International 3,356 67% 17% 2,879 67%
Branded formulations 6,057 39% 23% 4,938 50%
India 4,042 67% 11% 3,642 74%
International 2,015 33% 55% 1,296 26%
Generics 4,066 26% 304 3%
Emerging businesses 358 2% 25% 287 3%
Custom chemical services 100 1% – 0%
Total revenues 15,578 100% 58% 9,841 100%
Other operational income 423
Total operational income 16,001 9,841
recorded a revenue of Rs. 4,997 million
compared to Rs. 4,312 million in FY 01.
This 16 per cent increase was driven by
ciprofloxacin and sparfloxacin and the
Table 3
|
Sale of major APIs and their share in
APIs revenue
RS. MILLION
2001-02 AS A% 2000-01 AS A %
Ciprofloxacin 838 16.8% 568 13.2%
Nizatidine 373 7.5% 3 0.1%
Ibuprofen 371 7.4% 373 8.6%
Sparfloxacin 358 7.2% 161 3.7%
Ranitidine Fm 1 231 4.6% 47 1.1%
Naproxen Sodium 226 4.5% 240 5.6%
Dextromethorphan 223 4.5% 194 4.5%
Ranitidine Hcl 209 4.2% 336 7.8%
Enrofloxacin 172 3.4% 194 4.5%
Doxazosin Mesylate 131 2.6% 197 4.6%
Others 1,865 37.3% 1,999 46.3%
Total 4,997 100.0% 4,312 100.0%
DR. REDDY’S LABORATORIES LTD. | MANAGEMENT DISCUSSION AND ANALYSIS | ANNUAL REPORT 2001-2002
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