On brand performance, the company's Ciprolet brand (ciprofloxacin) made steady progress contributing Rs 7.15 crore to the turnover, a 157 per cent increase over the corresponding period of the previous year. The company also launched a range of new products and brand extensions like Ciprolet-A, a combination of ciprofloxacin and tinidazole, Nise Gel, Stamace.

Formulation exports were Rs 12.7 crore in the second quarter, compared with Rs 14.6 crore during the same period of 1997-98. The company hasidentified Brazil and China as focus countries and plans are under way for tapping these markets. During the quarter, the company has obtained 18 additional product registrations in countries other than the CIS. Dr Reddy's has also started operations in Venezuela with the launch of six products.

The company has also stated that it has taken a conscious decision to restrict its exposure in Russia. "No further sales have been made to Russia in August and September 1998. It is too early to ascertain the impact the Russian crisis will have on the company's operations," the release says.

The bulk drugs division achieved sales of Rs 45.4 crore registering an increase of 42 per cent over the corresponding quarter in 1997-98. Domestic sales contributed 67 per cent to the turnover of this division while the balance came from the international operations. Meanwhile, the company's diagnostic business registered sales of Rs 4.1 crore for the quarter, against Rs 2.69 crore during the corresponding period of the lastyear.