Rhone-Poulenc chairman and managing director DD Chopra told shareholders at the company's annual general meeting on Thursday that the sales growth for the first five months has been achieved primarily due to the contribution made by the generics division.

On the acquisition of Max India's formulation business, he said that the unit had helped the company increase its presence in the anti-infective segment. The entire Max range would be in the market by 1998, except for those products which are covered by patents.

In the case of certain patent-protected drugs, the company has received permission to market these products in India and would pay aroyalty too, Chopra said. Industry sources say that Rhone-Poulenc may have received permission from German multinational Bayer to introduce a ciprofloxacin brand, though no official confirmation was available for the same.

Chopra also indicated that the Max range of anti-cancer products which is currently "handled" by group outfit Rhone-Poulenc Rorer (India) "will be taken back in due course of time by Rhone-Poulenc India," in keeping with the latter's portfolio implementation programme.

The company had completed a study on portfolio optimisation in early 1998 in consultation with Rhone-Poulenc Rorer, France, and is now in the midst of implementing the project. Rhone-Poulenc has also completed a voluntary retirement scheme (VRS) at its Bhandup facility in June 1998 which attracted 126 employees. The total cost of the VRS stood at Rs 10.79 crore and included an innovative part-payment of around 40 grams of gold per person.

The VRS, along with the refurbishment of the Bhandup liquid formulation facility,is expected to see a 40 per cent increase in productivity there. The total cost of refurbishment is approximately Rs 10 crore.

Meanwhile, Chopra added, "In deference to shareholder wishes, the group had decided to allow import and sale of its hi-tech cancer and cardiovascular products" in India.

Rhone-Poulenc has already introduced an anti-bacterial product and a cough syrup to strengthen its generics portfolio, even as plans are afoot to launch an anti-TB range of drugs.