In.com
Join a billion hands

  • Quotes

  • NAVs

  • News

  • Messages

  • Opinions

  • Notices

  • Videos
You are here : Moneycontrol » News » Business

To focus on custom mfg, research: Ajay Piramal

Published on Thu, Sep 14, 2006 at 10:57 , Updated at Thu, Sep 14, 2006 at 21:32
Source : Moneycontrol.com

Email    Print   

ads by google

Ajay Piramal, Chairman of Nicholas Piramal says that their growth model is to look at custom manufacturing as well as research. These are their future areas for international growth, he says.

He adds that their target for the long-term is to look at launching a molecule discovered by them internationally. Piramal further states that the challenge for them is to look at distinct areas like technology or a more efficient supply chain.

Excerpts from CNBC-TV18’s exclusive interview with Ajay Piramal:

Q: Could you tell us about your company’s strategy in untapped markets like Eastern Europe, Latin America, Russia and Japan?

A: We believe that our model is to look at custom manufacturing as well as to look at research. These are our future areas for international growth.

Q: You have already reached 50% of your sales coming from custom manufacturing and exports, what are the future targets for you?

A: The future target in the long-term is that we should be able to launch one of our own discovered molecules internationally.

Q: Right from the beginning you had the physical muscle to buy out companies and gain size, what about the mid-sized and small companies going forward, are there limitations to their growth?

A: I think after two to three years one will find some consolidation taking place in the domestic market as well. With increased competition, both from multinationals in India as well as the requirement to invest in research, one will find that some of the mid-sized companies will find it difficult to grow.

Q: Over a period of time, we have seen companies jumping on to the CRAMs business, Contract Research and Manufacturing Services, we have a cost advantage right now; do you think that will fade over a period of time?

A: Cost can never be a long-term sustainable advantage because one can do something today at some cost and there will be others who will do it at a lower cost. One has to look at other areas of distinctiveness, whether it is in technology or whether it is in a more efficient supply chain; that is the challenge for all of us.

Messages on Business Talk

Post a comment

Other comments

TCS reviewing capex plans: Ramadorai

Tata Consultancy Services Ltd (TCS) is in the process of reviewing its capital expenditure plans for the current ye...

in Business Talk - MMB Messenger at 05-Dec-08 11:31

IT industry growth may halve to 15% this fiscal: Infosys

The country’s second largest IT services company Infosys Technologies said on Thursday that the growth rate of over...

in Business Talk - MMB Messenger at 05-Dec-08 11:03

More on Messageboard »

Rate this article

Feedback

 
Mumbai plot revealed in Feb by arrested LeT man .. Mumbai plot revealed in Feb by arrested LeT man ..

CNBC TV18 CNN IBN CNBC Awaaz IBN 7 IBN LOKMAT

Chat

Prakash Gaba

Technical Analyst ,

(05 Dec- 15:30hrs)

How to be an effective trader?  

Upcoming Chat Schedule »

Previous Chat Transcripts »

Poll

How much rate cut do you expect in repo & reverse repo?

50 bps 100 bps
150 bps  
 
View Result  View all comments

Newsletter

Keep in touch with News day & night. Subscribe to:

Mobile Services

Want us to track your stocks 24x7?

Subscribe to our Stock Messaging System

Get news on the move SMS to 52622

  • SMS M for Market News
  • SMS B for Latest Business News
  • SMS S (stock name) for latest news