Dr. Reddy’s Laboratories announced that it has crossed the ilestone of US$ 150 million of revenues in the Russia/CIS region for the fiscal year 2009. This milestone is a result of the efforts in building a branded franchise, cementing strong customer relationships and partnering with trade channels over last several years.
Dr. Reddy’s entered the Russia market in 1992 and consolidated its position during the turbulent currency crisis of the late 1990s. Today Dr. Reddy’s is the largest Indian Pharmaceutical company in Russia and is also the fastest growing international branded generic company by volume. Commenting on the growth story, M V Ramana, Head-Russia & CIS Operations, Dr. Reddy’s said “The company has been growing rapidly over the last several years with revenues of $80 mn, $110 mn and $138 mn in the fiscal years 2006, 2007 and 2008 respectively in the Russia/CIS region. During the 11 months ended February 2009, the year-on-year revenue growth rate in Russia / CIS was a healthy ~24% in USD terms and we hope to maintain this growth and manage receivables pro-actively. The company has further reduced the receivable days (DSO) in Russia since December 2008. With almost 80%+ of the revenues generated from the top 4 distributors, the product portfolio is well penetrated geographically and enjoys good availability in the pharmacies.” “With our strong presence in Russia over the past 15 years backed by leading branded generic products, we are deeply committed to this market. We are confident of tackling the challenges posed by the macroeconomic factors in the country as the branded generic and generic segments in Russia & CIS are relatively defensive to these factors. With strong brands, sustained growth in the OTC segment and our association with top tier distribution partners, we are confident on meeting the growth expectations in Russia and CIS”, said Satish Reddy, MD & COO, Dr.Reddy’s.