Sun Pharma's latest move comes even as the management has, in principle, decided to move away from its conservative dividend policy so that at least 20-25 per cent of its profits can be distributed to shareholders. Proposed dividend for the year ended March 31, 1998, is Rs 6 a share (60 per cent).

Sources said Sun Pharmaceuticals, which holds an 80 per cent stake in Sun Pharma Exports, had acquired the rest 20 per cent at the book value. The compensation is understood to be in the region of Rs 1.5-2 crore.

The remaining 20 per cent holding in Sun Pharma Exports is equally held between Sun Pharma's managing director Dilip S Shanghvi and Sholapur Organics Ltd. Sun Pharmaceuticals, as on March 31, 1997, had invested Rs 7.72 crore as capital in its export arm,while Sholapur Organics and Dilip Shanghvi invested Rs 2.37 crore nad Rs 1.74 crore respectively as on that date.

Sources said Sun Pharma Industries would continue to export through its newly formed 100 per cent arm as part of its tax-saving strategy. "Instead of getting pro-rata benefits, it is more prudent to try and get benefits on the total export performance," sources said.

The Rs 282-crore Sun Pharma Industries (including those through Sun Pharma Exports) registered an export turnover in excess of Rs 50 crore for the year ended March 31, 1998. Significantly, during that period, the company's share of profits from Sun Pharma Exports was Rs 10.28 crore.

Meanwhile, Sun Pharma Industries is targeting a turnover of Rs 350 crore and a net profit of around Rs 75 crore for the current fiscal, backed by a slew of new launches. These products include fertility and anti-cancer drug, Leuprolide, gastrointestinal Octreotide, analgesic Fentanyl Citrate and Tizanidine for spasticity.

The company is alsogearing up to cash in on the generic wave for products like tizanidine and garbapentin, slated to go off the patent list in key overseas markets shortly.

Sun Pharma Industries and associate company, Virtuous Finance, have also received an exemption from Sebi to make an open offer for acquisition of an additional 20.06 per cent equity in MJ Pharmaceuticals. The acquirers currently hold approximately 50.22 per cent of MJ Pharmaceuticals equity, though Sun Pharma is expected to maintain its holding in the company at 30 per cent.