The company's excellent showing has been driven by its leadership strategy in therapeutic areas of focus, and by effective management of innovation in international markets. Sun Pharma wants to back up this strategy with its emphasis on research and development (R&D), brand positioning, optimising product mix, licensing out of new molecules and by developing its marketing strengths. Six leading brands of the company find a place among the top 300 brands on the ORG list. Cardiology and diabetology account for 25 per cent, psychiatry 17 per cent and neurology contributes around 11 per cent to the company's total turnover. Its leading brands are in the therapeutic segment such as GI tract, orthopedics & pain, respiratory, anti-infectives, gynec, fertility and ophthalmology.

The company is also improving its formulations to bulk drug ratio. It is also focusing on the export of formulations. During the last few years, the company has changed its strategy and has concentrated more on the formulations segment. Although initial expenses in brand building in the formulations segment are high, they yield better margins in the long term. The strategy has therefore worked very well with the company.

Sun has spent Rs8 crore on R&D during the six months to September 2000, closer to the Rs 10 crore spent during the entire year to March 2000. This emphasis on R&D coupled with the company's resolve to move up the value addition chain extends to higher margin dosage forms and generics. This is apart from its emphasis on bulk active sales in its bid to move from less regulated markets to high value markets. These moves are expected to add sheen to its showing in the future.

Dhruv Rathi