The company is in the process of forming a nodal group of R&D experts to chalk out a strategy for the biotech sector. "We are exploring several options. The company may go for technical tie-ups and acquisition of biotech firms in India and abroad," Ranbaxy chairman Tejendra Khanna said.Mr Khanna declined to divulge further details about the size of the acqusitions in the biotech sector, but said "we have enough internal resource to fund the acqusitions."

Ranbaxy is believed to be eyeing acquisitions in France and Germany, while exploring a joint venture in Brazil with a majority 75 per cent stake.The company was also planning to introduce a healthcare product in China, by the end of last year and foray into `branded business' in the United Kingdom this year. The entry into the high-growth biotech sector, which is expected to witness a 2.5 billion dollars turnover this year, is part of the company's strategy to increase its market-share from domestic and overseas markets, by the year 2004," Mr Khanna, the former lieutenant Governor of Delhi, said. The biotech sector covers the entire range of healthcare, agriculture, food, and pharmaceuticals sector. Ranbaxy, it is learnt, is planning to launch new drug formulations for ulcers, hypertension, psychiatry, cancer and immunosuppressant, to increase its sales by about Rs 1,900 crore in the near future.

The company, which recently launched the Indian version of `viagra', is also working on an environmentally-friendly insecticide based on `neem', These initiatives would be undertaken through increased expenditure on R&D, Which has been offered tax sops in the Union Budget for 2001-02. "Pharmaceuticals industry will benefit from the incentives offered to R&D activities in the Budget for 2001-02," Mr Khanna said. He did not like to comment on the impact of the hike in drug prices by the National Pharmaceutical Pricing Authority (NPPA) yesterday on items like dettol and insulin.