Lupin has teamed up with a local pharma distributor and will hold a majority stake in the venture. Once the marketing network is in place, the joint- venture company will subsequently get into manufacturing of Lupin's anti-TB range in a phased manner, in which the bulk active will be sourced from the Indian partner by way of exports. The joint venture will have its own medical representatives to promote Lupin's formulations.

Lupin's president for international business Lalit Kumar said the Russian market is extremely competitive and estimated to be worth over $2 billion. "Lupin, through this joint venture, is attempting to improve its competitive position," he said.

The idea of forming a joint-venture company is to cater to the Russian demand for anti-TB andcephalosporin antibiotics, where Lupin Pragati will have the added advantage of being a Russian company and thereby also cash in on government supplies by way of tenders. "Government tenders for such drugs account for almost 20 per cent of the $2-billion Russian market," Kumar said.

TB has been identified as the number one killer disease in Russia, even as the World Health Organisation (WHO) has, in a recent study, identified Russia as one of the seven hot zones apart from India where multi-drug resistant TB bacilli has reached alarming proportions.

Lupin has received all requisite clearances from the government of India while on the Russian front, all company-related matters on the joint venture have been completed and business is expected to commence in this quarter.

Lupin's turnover from the Russian market is Rs 15 crore and this is slated to go up to Rs 20 crore in 1998-99, and further to Rs 45 crore in the third year of operations. The latest venture is Lupin's fourth major foray overseas. Thecompany's other ventures include alliances in Thailand, the US and South Africa.

INSIGHT -- footprints in lucrative markets

Following the strategic alliances entered earlier with Merck Generics and proposed acquisition of Eli Lilly's US facility for entering the generic market, the joint venture in Russia will help the company establish itself in one of the biggest anti-TB markets.

Apart from higher price realisations in exports the company will also get dividends. Further, this is sure to raise the percentage of exports sales' turnover from the current 35 per cent.

Apart from a lower tax rate because of greater proportion of income from exports, the current policies of the company indicate an appetite for investments which have low risks and simultaneously provide higher returns, in marked contrast to their earlier diversifications.