The Hindu Business Line : Claris Lifesciences to set up units in China, Japan

After setting foot in the Latin American market this month, the Rs 425-crore Claris Lifesciences Ltd is now readying itself to open manufacturing facilities in China, Japan and other East and South-East Asian countries, after achieving its targeted growth of turnover to Rs 1,000 crore in 2008.

Mr Sushil Handa, Founder-CEO of the Ahmedabad-based critical care and hospital product major, told Business Line, "We have already set up two subsidiary companies recently — Claris Lifesciences Venezuela C.V. in Venezuela and Claris Lifesciences n cia Ltda, Chile. We have also employed more than 100 people there and set up a sales and marketing network of 1,200 distributors-business partners. Now, we are planning to look East."

Claris, an international company set up in the year 2000 on an 85-acre plot and market leader in critical care segment in India, operates in more than 60 countries through its subsidiaries, offices, and marketing and distribution network the world over. "We are planning to set up new facilities at par with international standards out of India."

Focus on expansion

The company already had subsidiaries in the UK and the US — Claris Lifesciences Ltd, UK and Claris Lifesciences Inc, USA, and a representative office in China. Earlier this year, the Washington-based global private equity firm, the Carlyle Group, invested $20 million (Rs 90 crore) to fund Claris' Rs 190 crore expansion plan.

The company had nearly 1,000 product dossiers filed globally and six ANDAs in the US and 40 Marketing Authorisation Applications in Australia and Europe. Now, it was targeting the United States Food and Drug Administration's inspection and approval of its manufacturing facility this year.

The pharma major is all set to strengthen its research and development capabilities to increase its product portfolio. It would shortly invest nearly Rs.40 crore through internal accruals.

In China, Claris was already marketing two of its products and planning to add four more. In Japan, no other Indian pharma company has set foot so far, making Claris the first one to explore market and even think of a manufacturing unit there.

Mr Handa said Claris was working "on different parameters and financial avenues to set up our manufacturing units in other big markets outside India".

Building up resources

At present, however, the company was not working on the model of mergers and acquisitions (M&A) and was busy building its own strength and resources, Mr Handa pointed out. "Right now, our focus will be on existing set up in India."

Justifying the setting up of subsidiaries in Latin America, he said the Venezuelan market was worth $3 billion, the fourth largest in Central and South America, whereas the injectable market in this region was worth an estimated $30 billion.

Claris already had a sizeable market presence in Venezuela and two of its brands are leading brands in the injectable market there for the last five years. Chile, too, was a large, potential market in the region.

Better prospects

The Government of India was also currently busy talking with its Chilean counterparts for a bilateral trade agreement. The company has also opened its offices in Caracas (Venezuela) and Santiago (Chile), respectively, he said.

The company, which was in the business of manufacturing and marketing sterile parenteral preparations and life-saving medicines used during critical illness, was currently producing a range of about 175 products and would add 40 more soon to its portfolio, Mr Handa said.

Claris had plant approvals from international regulatory authorities, including the UK, Australia, Gulf Cooperation Council, Brazil and Columbia. The facilities are also geared up for the USFDA.

Recently, Claris had entered Germany and South Korea as well and expected to grow its business in the UK and the USA by about 50 per cent this year.

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