Four years back, Ipca came out with a public issue. Since then, it has justified investors' faith on it and is performing well. It was incorporated in 1949. It has grown through acquisitions, expansions and through setting up of units in new geographic locations. It is the biggest manufacturer of chloroquine phosphate which is a malaria drug in India. There is a price war going on in this bulk drug. More than a dozen competitors are in the fray and to add to the woes, China isdumping this drug in India which is going unnoticed. Luckily for Ipca, more than three quarters of its production is used captively to prepare formulations. Therefore the price war affects the company to the least.

Reliance Industries, in the case of depressed prices for PTA, proved that a captively consuming unit will not be shaken by a fall in the price. Ipca has proved the same in the case of not only chloroquine phosphate but also in several other drugs like erythromycin estolate, atenolol and metaclopromide. The anti-malaria drug sold under the brandname Lariago is the breadwinner for the company and contributes nearly 40 per cent of its turnover. Thedepartment of science & technology, and government of India has recognised the R&D centres of the company in Mumbai, Ratlam and Indore.

In terms of prescription generations and prescriber base, the company is ranked among the top ten pharma companies in India. Around 40 per cent to 45 per cent of its products are covered under the DPCO and the company istrying to reduce this to even lower figure. For doing this, the company needs to launch new drugs which are not covered under DPCO.

Brand building is an important step for a pharma company. Ipca has already tasted success in the new brand Roxeptin which is an antibiotic drug. There is a dog-eats-dog war going in throughout in the pharma industry. No player including the multinationals enjoys more than 10 per cent market share.

In this cut-throat competitive environment, only brand building can assure a slow but steady growth. Ipca seems to have realised this fact and is planning to build up more brands and also to acquire new brands if possible.

For exports, the company is targeting US FDA markets in case of bulk drugs. Already the company's products are exported to around 65 countries, the most important of which are Britain, Russia, USA, Germany and Italy. The company accounts for about three fourths of the export of atenolol from India. It is also the second largest manufacturer of atenolol in theworld.

Last year the company's new comprehensive cardiac care division named as `3C' to exclusively market drug therapies in the field of cardiology diabetology, and neurology had become fully operational. The company has lined up several new formulations for introduction under this new division.

IPCA is entering the natural product market for treatment of malaria-flaciparum which accounts for 15 per cent of all malarial cases by manufacturing the bulk drug artimether. The formulation will be sold under the brand name Larither. Ipca will be the first company in India to manufacture this bulk drug. The company is introducing new drugs in the high margin macrolides, anti-malarial, anti-diabetic and anti-obesity segments. These products will help the company to record a good growth rate in future.

The company has planned that in future, about 15% of its turnover should come out of new formulations.

The company is gradually reducing its dependence on the therapeutic category by focussing on other areassuch as cardiovascular. Having tied up with many foreign players has helped the company to become a global sourcing base for many of the bulk drugs and intermediates. Intermediates account for a major part of the company's exports.

Ipca's ownership pattern has changed recently with film star Amitabh Bachchan and family selling most of their stake to the two managing directors whose holdings have crossed 50 per cent now. Only through innovations can the company catapult itself into the big league in the coming years.