Executive director KP Mundhra told The Financial Express that the company will launch a host of drugs to increase its presence in the formulations market.

According to him, Albert David, flagship of the Kotharis, will introduce therapeutic drugs like anti-inflammatory, anti-ulcerant and antibiotic drugs this year. "We will also launch a natural herbal protein drug this year," Mundhra said.

In 1998-99, the company registered a net profit of Rs 1.6 crore on a turnover of Rs 89.53 crore. Gross profit before depreciation and taxation was Rs 5.51 crore. Last year, Albert David suffered a net loss of Rs 1.74 crore on a turnover of Rs 73.56 crore and in 1996-97, turnover and netloss were Rs 61.78 crore and Rs 2.16 crore, respectively.

Mundhra said for the current year, the company has targeted a turnover of Rs 110 crore, which will also include exports of Rs 6-8 crore. Exports during 1998-99 were Rs 4 crore. The consignments were sent to Vietnam, Cambodia and Russia among others.

Last year, Albert David changed its focus from IV fluids to formulations. Mundhra said the Indian fluids market was suffering from overcapacity and a mere five per cent growth rate. So the best available option before the company was to shift the focus to another area that is witnessing steady growth.

"India's IV fluid market size is around 35 crore bottles a year and the existing capacity is almost 80 crore bottles. It resulted in cut throat competition and our profitability suffered miserably. We decided to change our over dependence on this product and concentrate on formulations and it has already yielded results," the director said.

The share of formulations, now accounting for 55 per cent ofAlbert David's business, is likely to go up to 70 per cent following the realignment. The share of IV fluids will slowly come down from 45 per cent to 20 per cent in another 2-3 years. Disposal syringes and needles will continue with a share of 7-8 per cent.

In 1996 Albert David, that was taken over by the Kotharis from the original British promoters in 1965, invested Rs 16 crore to increase the capacity of its IV fluid manufacturing unit at Ghaziabad by two crore bottles a year. Presently, the unit can make 3 crore plastic bottles and one crore of glass bottle of IV fluid in a year.

The drugs launched recently include Nimeril, a non-steroidal anti-inflammatory suspension, Ferrochelate Z iron capsules and Siozole, an anti-ulcerant.

For the current year a number of antibiotics in the cephalosporine group and in the marcolides are lined up. The company will also introduce Alstat, a hemostatic drug and Albendazole, an anti-worm medicine.

Mundhra added that Albert David will try to increase its presencein the western and southern markets. "We have a strong presence in the east and north, specially in the states of Uttar Pradesh, Bihar and West Bengal. With a more aggressive marketing drive and a bit of in-house restructuring we will try to grab more markets in the west and south," he added.