Ranbaxy is operational in these regions in the generic market. The performance of these companies, though too early to comment, has been unspectacular. However, in the initial years it is turnover growth that matters and in this area the group has done well, with almost all the companies recording a positive growth rate.

Among the subsidiaries that have performed well during the year has been the US venture -- Ohm Laboratories. The subsidiary has recorded aturnover of $19.5 million ($15.5 million previous year) while it has recorded a bottomline of $0.2 million. Topline growth has been propelled in the US and UK mainly on account of sales of ranitidine. Ranbaxy had acquired Ohm Laboratories, New Jersey, USA in 1995. The company manufactured solid dosage forms primarily OTC products in the categories of analgesics, anti-diarrheals, laxative, antacids and cough and cold preparations. Inspite of being a well established company, it has taken Ranbaxy with all its marketing strength a good part of four years to record a profit.

This drives home a message to other pharmaceutical companies in India, most of whom are looking forward for entry in international markets in the generic area. It will require a lot of funds and a substantial amount of time to create a brand image in the highly competitive generic markets abroad. Returns are not easy to come by. Thus if a company sticks to the philosophy of manufacturing and marketing products that have gone off-patent,they should not expect gains in the short term. Companies will have to go in for developing new molecules in order to post good returns, a fact that Ranbaxy has recognised and is pursuing.