Lyka Laboratories chairman and managing director N I Gandhi told The Financial Express that the joint venture is expected to generate revenues of atleast $ 3 million (once the product registrations are complete) in the first year of operation. Product registrations could, on an average, take six months to a year in Russia.

Under the current alliance, products would be manufactured at Lyka's facilities in Gujarat and Tarapur and Gandhi said that the new alliance will not, in any way, disturb the company's existing set-up. Lyka Labs has already registered around 30 to 40 products in the Russian market over the recent past. The office of the alliance partners was inaugurated in Russia on June 21, by the Deputy chief of mission (Embassy of India) N Ravi.

Gandhi also added that depending of the "performance of the marketing joint venture", both partners can explore further growth opportunities, though the details on further areas of possible co-operation could not be got.

Lyka Laboratories is targeting a turnover of Rs 225 crore (50 per cent of which could come from exports) for 2000-2001 and has launched a host of new products including a combikit for treating sexually transmitted diseases (branded FAS-3), fluticasone (Fluticare), besides others like ofloxacin and cefuroxime.

Lyka was in the news recently when it completed the sale of three brands - Alex (for dry cough), Flucort (a topical steroid) and Sensur (an ointment to treat pain) -- to Glenmark Pharmaceuticals for Rs 34.25 crore.

Lyka Laboratories is, however, expected is reap additional gains from the inclusion of a royalty clause in the brands sale deal with Glenmark Pharmaceuticals.

Lyka Laboratories plans to use the proceeds from the sale of its three brands to rationalise its debt basket. The company may, in future, explore the private placement option to rationalise its debt further.