As many as nine subsidiaries and associate companies in Europe, Africa, CIS, Asia Pacific and north America suffered net losses of $8.7 million while nine other companies made profit after tax of $1.7 million.

Ranbaxy has invested over Rs 300 crore in 22 overseas subsidiaries and joint venture companies. These companies generated a turnover of $134.2 million in the year ended December 1998 as against $113.40 million in the previous year.

The biggest loss making wholly-owned subsidiaries are Ranbaxy Netherlands BV ($2.2 million), north-America based Ranbaxy Pharmaceuticals Inc ($2.1 million) and Ranbaxy Schein Pharma LLC ($1.6 million) and Europe-based Ranbaxy Ireland ($1.4 million).

Other overseas subsidiary and affiliate companies which are making losses are Ranbaxy Pharmaceuticals BV ($0.5million), Ranbaxy SA Pty Ltd ($0.4 million), Ranbaxy Poland Sp. zo.o. ($0.2 million), Ranbaxy Malaysia Sdn Bhd ($0.1 million) and Ranbaxy Hong Kong Ltd ($0.2 million).

However, company officials say that though many overseas subsidiaries and affiliate companies are in losses their turnovers are improving. Some of them have also cut down losses in 1998 compared to previous year. For instance, Ranbaxy SA Pty has cut down its losses from $1.2 million in 1997 to $0.4 million, Ranbaxy Egypt and Ranbaxy Thailand made profit after tax of $0.1 million each against net losses of $0.1 million and $0.5 million, respectively, in 1997.

The Ranbaxy management believes that all its overseas operations are performing fairly well. Ranbaxy chairman Parvinder Singh said at the company's annual general meeting last week that it investments overseas specially in the UK and US markets do not give returns in one or two years. "We need to creat brands, establish presence and then returns will begin," he said. He said thereasonable time frame to expect profits is five years. "If these investments fail to give returns in five years, then there is a problem," he said.

The US-based Ohm Laboratories, a 100 per cent owned subsidiary, was the star performer in 1998 with a turnover of $19.5 million against $15.5 million in the previous year. Ohm had a net profit of $0.2 million. Other subsidiaries which are doing well in terms of turnover are Rexcel Pharmaceuticals ($18.9 million), Ranbaxy Pharmaceuticals BV ($14.5 million), Ranbaxy (UK) Ltd ($12.1 million), Ranbaxy Guangzhou China ($11.5 million), Ranbaxy Pharmaceuticals Inc ($10.30 million) and Ranbaxy Ireland ($8.9 million).