HMR's exports to Russia and the Ukraine, which include Rs 25-crore worth of business of Roussel India, represent over 50 per cent of its export turnover. Hoechst Marion is believed to command around 12-15 per cent market share in CIS countries.

Managing director Debabrata Bhadury said that the company will be hit in the short term, forcing it to curtail exports to Russia. "There will, obviously, be no growth in exports to Russia, though I don't see it as a major problem in the medium term. Exports to Russia are expected to be lower by 10-15 per cent this year, but we expect some positive development by the end ofthe year," Bhadury said. Key HMR products exported to Russia include Trental, Lasix and Sofradex.

On whether the company would explore new markets to make up for the decline, Bhadury said that it will not be an easy task given the registration formalities involved.

Industry sources say that the company has stopped exports to Russia and the Ukraine since late August this year and recoveries from these markets have been rather poor."The company appears to be taking no chances in the case of the Ukrainian market too. Exports are, however, expected to recommence by January," sources said. No official confirmation on this could be got.

According to sources, under the present circumstances, HMR's exports for the current fiscal are expected to fall short by about 10 per cent to Rs 130 crore. This scenario, sources add, could change if there is a dramatic improvement in the overall situation in Russia. The company's exports during the year ended March 31, 1997 were Rs 87.7 crore compared with Rs 62.3 crore inthe previous year. The economic crisis in Russia has forced a host of pharmaceutical companies across the globe, including domestic players like Dr Reddy's Laboratories and JB Chemicals, to review their business plans there. Dr Reddy's Labs, in its latest business review, says that it has not made sales to Russia in August and September even as Anglo-US healthcare giant, SmithKline Beecham on Friday finally decided against pulling out of the Russian market.