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Geno Pharma's plans

By P. Vikram Reddy

HYDERABAD OCT. 29. Riding on the pre-2005 pharma euphoria, the Goa-based Geno Pharmaceuticals has chalked out ambitious plans to become a Rs. 100 crore turnover company in three years. The growth plans will see enhanced capacities, increased workforce (doubling), introduction of three new products every year, and raising of fresh capital.

Having seen its own ups and downs, the company which was originally promoted by the Economic Development Corporation of Goa (a Government corporation) in 1975 and later taken over by Dilip R. Salgaocar, is now a closely held public limited company. It was a listed company in the 1980's. Though it had its worst moments in 1984 when it almost became bankrupt, it has been nursed back to good health and is now an example of what efficient management can do.

Geno manufactures tablets, capsules, liquid orals and ointment at a facility spread over a five acre site in Goa and has a network of 300 field force, and a turnover of Rs. 50 crores. Some of its well-recognised brands are cypon, myolaxmi ointment and vertigon.

Interestingly, the company does not have a general manager, national sales manager or a vice-president. Hiranmoy Roychowdhury, Director (Marketing Operations), who has risen from the position of a junior manager to Director, is credited with much of the good work that has seen the company come through difficult times.

Speaking to The Hindu here he said there was never an agitation in geno in 25 years, and that this message (good industrial relations) must reach the pharma industry, which has seen several good companies suffer on that cause. Being a basically formulations company, it spends 3-4 per cent on R&D. Entry into new segments, control on expenditure, and being the only organisation which is `not top heavy' has helped recover to a strong position, he says. The astern region contributes 47 per cent to turnover.

By December this year a new facility will be ready which will add 20 million tablet making capacity. In addition it has in principle decided to go for a public issue to raise Rs. 20-25 crores. Though the timing has not been worked out, one option being seriously considered is the first half of 2004. Of this Rs. 12 crores will go into the setting up of another factory, which will make injectibles and latest generation antibiotics with focus on neurology and psychiatry. The focus will also be greater on exports with the new facility which will be the most modern of its kind, says Mr. Roychowdhury.

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