However, the Bangalore-based company has not yet snapped its ties with the Indonesian partners as Recon feel that there are enough opportunities for a further recovery of the market in that country at a later stage.

"The idea behind the joint venture was to explore South Asian markets using Indonesia as the hub. A formulation plant could be set up as and when the market flourishes," according to Recon managing director Jayaprakash Mady.

In fact, the company had floated a joint venture firm in 1997 for setting up the formulation drug unit there. In that joint venture styled PT Recon Pharmagriya of Indonesia, Recon was planning to hold a majority stake by injecting around $7.65 lakh. The total project cost was to the tune of $5.5 million with an equity capitalof $1.5 million.

The agreement between the three companies envisaged that the joint venture partners will have to provide a lumpsum payment of $3 lakh to Recon as technology transfer fee alongwith a royalty of 25 per cent of the net sales made by the new company for a period of 10 years.

"The company is unlikely to show any major improvements in its bottom line during the fiscal as it has already put its Indonesian poroject on the backburner," an official with a stock broking firm said.

"The move for Indonesian joint venture was considered as a leap forward in exploring the other Asian markets for Recon and it was expected to cash in on the facilities and financial muscle of the joint venture partners. The manufacturing facility was to have come up in April 1999," a senior Recon official said.

The product portfolio of the Rs 50 crore Recon which has presence in the fields of pharmaceuticals, fine chemicals, agro chemicals and allied business, encompasses a wide range of formulations, therapeutic, bulkdrugs and pesticides. The company's pesticide range includes formulation drugs in insecticides and fungicides.

The company is also redefining its marketing strategy by focussing more on research and development in order to unveil new range of products.

Currently the company has a joint venture with Tech India Inc of the US. The joint venture firm - Criticare - based in Bangalore is developing and marketing a range of speciality products in oncology and specialised nutritional segments and for critically ill patients.