Drug-maker Lupin is not past the investment phase, said its Managing Director, Dr Kamal K. Sharma, as more manufacturing facilities are lined-up to support products in segments including dermatology and asthma in overseas markets.
Last year's investments in the Indore Special Economic Zone (SEZ) and in expanding field-forces in India and overseas are bearing fruit, but investments will not cease for another year or so, Dr Sharma told Business Line .
About $100 million (about Rs 500 crore) would be invested in the current financial year, he said, of which about 45 per cent will go into the new facilities. Last year, investments went into plants in Indore dedicated to oral contraceptives, and this year the ophthalmology plant will be complete, he said.
The new facilities will support dermatology, and asthma (possibly in Indore, as well), besides another plant in Jammu for the overseas market. In fact, all the therapeutic segments mentioned have products launched or lined-up for launch in the United States.
Rupee volatility
The investments in manufacturing are to strengthen the base, to help the company weather currency volatility, Dr Sharma said. In fact, rupee volatility saw the company lose Rs 26 crore on forward contracts, he said.
In fact, companies will have to prepare to live with such challenges in the domestic and global market-place, he added.
The company's net profit for the three months under review, ending December 2011, saw a 10 percent increase due to an enhanced tax payout, compared to the corresponding quarter in the previous year. With the export-oriented units losing their status last year, the days of the tax-cushion are also gone, he added.
Lupin shares were up close to 2 per cent on the BSE, at Rs 445 on Tuesday.