Four new plants coming up at Indore SEZ: Cipla

Excerpts from CNBC-TV18’s exclusive interview with Amar Lulla:

Q: We have seen a huge jump in bulk drugs and APIs. Where has this growth come from?

A: There have been various intermediates and chemicals that we sold this quarter which has got reflected in the about 117% growth in bulk drugs and chemicals.

Q: What has been the growth in exports and domestic?

A: Domestic and export sales grew by about 16% and 50% respectively. The main contribution was the 117% growth in bulk drugs, intermediates, and chemical exports.

Q: Are there any new approvals that you have got in Europe for non-CFC inhalers? Have revenues kicked-in from that space?

A: We have received approvals for Budesonide inhalers in Germany and Portugal, Salbutamol MDI in Denmark and Portugal, and Beclomethasone in Portugal.

So far, there are about eight HFA inhalers developed for EU and six have already been submitted. We are in the process of initiating clinical trials on dry powder inhalers for the European market.

Q: Over the last few months we have seen a lot of consolidation happening especially in the innovative and generic space. Fresenius have bought over APP, Daiichi Sankyo has acquired Ranbaxy, and Sanofi bought Zentiva. Do these deals affect your partnerships with any of them?

A: There is no impact on our partnerships with various companies, because they are based on products and territories. Despite the merger, contract commitments continue. So, there has been no impact at all on business.

Q: Even on the US side you already have 10 partners. Any new partners that you have looked up in this quarter or any new partners that you have added on?

A: Two new partners have been added in the last six months. Also, some niche products have been added on. We hope to see good business going forward.

Q: What are the names of the two partners that you have added in the past six months?

A: Our commercial confidentialities would not allow us to disclose that. These are very significant positions that the partners are taking. So, it may not be in their interest to disclose that.

Q: Are the total number of US partners increased to 12 now?

A: There will be 12 partners in the US now.

Q: A lot of capacity expansion had been taken up in the past two years. What is your capacity utilization right now? How does your tie-up with Sigma help you to utilize your capacities?

A: If we are adding Rs 700-800 crore, we need to create additional capacity. Right now, we are in the process of creating additional capacities at the Indore SEZ. We have four plants coming up there. Our Sikkim plant has commenced operations this April. So, we need capacities all the time as we are in a growing phase of business.

Q: Have you already started manufacturing for Sigma?

A: Sigma has OTC products. We have started some of them already and some more are in the pipeline. That is not going to take away any significant portion of that capacity.

Q: Last year, we had seen good amount of revenues contributed from the consulting and licensing business. This year, how much are you looking at from that particular line of business?

A: We will be able to maintain that, because in the first quarter itself, our technology fees or income other than sales has been about Rs 36 crore as compared to Rs 22 crore in the same period last year. So, we will be able to exceed last year’s technology figures.