Betting big on the Indian market, Dr Reddy’s Laboratories is driving its R&D team for products which are centred around the needs of the domestic market. The company plans to launch 30 products every year and sustain organic growth in India. Having narrowed from over 30 to four key focussed markets, which include North America, Europe, Russia and India, the company is bullish on discovery-led innovation and manufacturing with renewed focus on emerging markets such as India with stronger sales force and more products.
In the process, the company is scaling up its focus on the Indian market by targeting more chronic diseases which are mostly volume-driven. With a large population base and unmet medical needs, India is one among the focussed markets for the company which will drive growth for Dr Reddy’s Laboratories in the coming years.
Going by the trend, emerging markets such as India outside of North America, Europe and Japan, once attractive to the pharmaceutical industry for low-cost manufacturing, are now attractive pharmaceutical markets by themselves. “The Indian business is a significant engine of growth and we plan to invest optimally in this market,” says Alok Sonig, senior vice-president and head, India business. “We have seen a progressive improvement in growth rate. The key reasons are new launches, focus on select brands and our investments in sales force,” he says.
Dr Reddy’s has strengthened sales representatives from 3,500 to 4,500 people. “There is distinction in the go-to-market models for urban versus rural markets. We are working to educate both doctor and patient communities to improve care and overall disease management,” he says.
The company has laid out strategies to innovate its product portfolio for the domestic market, which contributes to 20% of total revenues.
“This is expected to double in five years given the opportunities in the domestic market,” he says.
By B V Mahalakshmi