Hyderabad: Andhra Pradesh Government is keen on promoting micro, small and medium enterprises (MSMEs), according to Minister of Major Industries J. Geetha Reddy.
In her inaugural address at a bankers’ conclave on the MSME sector organised by the Federation of Andhra Pradesh Chambers of Commerce and Industries here on Saturday, she said Government would consider allotment of land to such clusters on a proactive basis.
There were about 1.8 lakh SMEs in the State employing a capital of Rs 33,900 crore and providing jobs to close to two lakh people, she said.
However, many MSMEs did not have enough understanding on the financial institutions and credit availability. “There is a need for conducting awareness campaigns to improve awareness,” the Minister said.
In his keynote address, Sanjaya Baru, Director, International Institute for Strategic Studies, said there was a need for collaboration between small and medium enterprises and financial institutions.
“It should be a day-to-day interaction to ensure that small businesses are on a firm financial footing,” he said in his address. Small and medium enterprises should focus on finance, technology and efficiency to reduce the mortality rate, he said.
The MSMEs should try to stand on their own after a period of time without fear of losing the initial concessions, he added.
Banks should extend finance to smaller units on a competitive basis but not due to Government intervention, Baru said.
Devendra Surana, President, Fapcci, said the power supply situation in the State was “very bad’ causing lot of trouble to the industry.
The MSME sector should be strengthened, he added.
Success in my Habit
Wednesday, March 13, 2013
Africa rolls out the red carpet for Indian investors with projects worth $65 billion
New Delhi: Indian companies’ interest in Africa is set to get a major boost. A three-day India-Africa Project Partnership Summit, starting from March 17 in Delhi, will roll out the red carpet for Indian investors. Representatives from almost all the African countries will participate at the summit, being organised by the Confederation of Indian industry (CII) and Exim Bank, with Burundi, Cameroon and Zambia as the main guest countries.
Already, 30 African countries have submitted 475 project proposals worth $65 billion, in which Indian companies can invest. Even if half of these find takers, it would push India Inc’s overall investment in Africa from $35 billion to about $60 billion.
The major sectors that the African countries are looking for Indian investment include agriculture, consumer durables, infrastructure, energy, transport, mining, finance and telecom.
There are huge opportunities in Africa, especially in consumer durables and agriculture. Moreover, these countries provide ideal investment climate, too. We want to showcase the opportunities there to the Indian corporates, said Adi Godrej, CII president and chairman of the Godrej group.
Among the companies that have invested in Africa are Airtel, Godrej, Emami, Marico, Dabur, ONGC Videsh, Essar, Coal India, Tata Group, Godrej group, Bharti, Kirloskar, Mahindra & Mahindra, Escorts and Apollo.
The bilateral trade between Indian and Africa has gone up from $3 billion in 2000 to about $70 billion during the current financial year. The trade is expected to touch $90 billion by 2015.
Although Africa is widely seen as a battleground between India and China for trade supremacy, the buzzword at the ground level is collaboration, rather than competition.
“For us, it is much like a hand-holding approach by two elder sisters,” said Jonathan Wutawunashe, Zimbabwe’s ambassador to India.
In an effort to tackle the aggressive Chinese expansion in Africa, India had extended a $5.7-billion credit and grants for developmental projects and over 100 capacity building institutions in Africa. This is apart from the line of credit that EXIM Bank provides to African nations.
Among the proposals that CII received from the African nations are 126 agricultural projects worth an investment of $4.74 billion, 177 infrastructure projects worth $34.19 billion, and 34 energy sector plans costing $20.74 billion.
“In the last decade, both India and Africa signed 24 major bilateral treaties and we have already become the fourth largest trading partner with Africa. The summit would further boost those initiatives,” said Chandrajit Banerjee, director-general, CII.
India has also been helping Africa in pan-African e-network projects, tele-education and developing basic infrastructure facilities like water management projects.
Already, 30 African countries have submitted 475 project proposals worth $65 billion, in which Indian companies can invest. Even if half of these find takers, it would push India Inc’s overall investment in Africa from $35 billion to about $60 billion.
The major sectors that the African countries are looking for Indian investment include agriculture, consumer durables, infrastructure, energy, transport, mining, finance and telecom.
There are huge opportunities in Africa, especially in consumer durables and agriculture. Moreover, these countries provide ideal investment climate, too. We want to showcase the opportunities there to the Indian corporates, said Adi Godrej, CII president and chairman of the Godrej group.
Among the companies that have invested in Africa are Airtel, Godrej, Emami, Marico, Dabur, ONGC Videsh, Essar, Coal India, Tata Group, Godrej group, Bharti, Kirloskar, Mahindra & Mahindra, Escorts and Apollo.
The bilateral trade between Indian and Africa has gone up from $3 billion in 2000 to about $70 billion during the current financial year. The trade is expected to touch $90 billion by 2015.
Although Africa is widely seen as a battleground between India and China for trade supremacy, the buzzword at the ground level is collaboration, rather than competition.
“For us, it is much like a hand-holding approach by two elder sisters,” said Jonathan Wutawunashe, Zimbabwe’s ambassador to India.
In an effort to tackle the aggressive Chinese expansion in Africa, India had extended a $5.7-billion credit and grants for developmental projects and over 100 capacity building institutions in Africa. This is apart from the line of credit that EXIM Bank provides to African nations.
Among the proposals that CII received from the African nations are 126 agricultural projects worth an investment of $4.74 billion, 177 infrastructure projects worth $34.19 billion, and 34 energy sector plans costing $20.74 billion.
“In the last decade, both India and Africa signed 24 major bilateral treaties and we have already become the fourth largest trading partner with Africa. The summit would further boost those initiatives,” said Chandrajit Banerjee, director-general, CII.
India has also been helping Africa in pan-African e-network projects, tele-education and developing basic infrastructure facilities like water management projects.
Friday, March 8, 2013
AirAsia's joint venture with Tata Group airline gets Foreign Investment Promotion Board's green signal
New Delhi: Domestic air travellers will soon have the option of flying a Tata Group airline. The Foreign Investment Promotion Board (FIPB) on Wednesday cleared Malaysian low-cost carrier (LCC) AirAsia's proposal to form a budget airline in a JV with the Tatas and Telstra Tradeplace at an initial investment of Rs 80 crore.
After the FIPB meeting, economic affairs secretary Arvind Mayaram said: "They will now have to take the necessary licence from the Directorate General of Civil Aviation (DGCA). They can start operating now once they get the licence."
However, getting the aviation ministry's nod could prove to be a time-consuming process as it requires some changes in the recently liberalized foreign direct investment (FDI) policy. "I welcome the proposed new airline. But, the policy of FDI cleared by the commerce ministry allows foreign airlines to invest in existing Indian carriers. FIPB may have cleared the proposal but it has to meet the existing requirements. Now the commerce ministry will have to change that rule and allow a startup FDI JV," aviation minister Ajit Singh told TOI, while terming it a "procedural issue that will not derail the proposal."
Aviation secretary K N Srivastava, who attended the FIPB meeting, is learnt to have raised this issue and sought clarification from the department of industrial policy and promotion. Aviation ministry officials point out that "procedural issues" in the proposed AirAsia India JV. "As of now no company has been formed in this joint venture. So, under the current FDI rule, we may not be able to clear it till the commerce ministry makes the required changes or tells us it can be cleared in the current form under the existing rules," said a senior official. However, Ajit Singh reiterated that there was no opposition to the proposed new airline and that the ministry has already sought commerce ministry views on this issue.
Tata Group chairman emeritus Ratant Tata tweeted: "FIPB approval of the airline project ... reflects the true investor friendly policies of the government. This and other similar actions will, without doubt, reinforce investor confidence in India. I applaud the government for its transparency and its principled implementation of the stated policy."
Highly placed sources say that the government is unlikely to allow any technical issue to delay the new airline despite stiff opposition from some influential existing carriers, since the AirAsia-Tata JV is being seen as a test case of India's commitment to attract foreign investors. In the past also, Tata Group's attempts to enter aviation space by tying up with Singapore Airlines were thwarted by a big Indian airline and the government is unlikely to allow a repeat this time.
AirAsia chief Tony Fernandes has started making preparations for an early launch of the Indian subsidiary in which the Malaysian LCC, Tata Group and Telstra Tradeplace will have 49%, 30% and 21% stake respectively. Subject to getting the clearance from the aviation ministry, Chennai-based AirAsia India could take off as early as this summer with a fleet of three to four aircraft that would then be ramped up. Fernandes remains hopeful of an early nod and has already chosen an Indian as the JV's CEO and is looking at more recruitment.
"The good always win. People and companies with good intentions to create jobs and make life of the average man better will always win.... Fantastic range of candidates put in front of me by Tata and Sons. In my mind I can't believe the talent in India. Final call is Tata and Sons. Part of JV agreement but I know who my fave is. Hope they agree," Fernandes tweeted.
Once approved, AirAsia India will be the first real action after the government last year allowed foreign airlines to invest in Indian carriers. Captain G R Gopinath of Air Deccan fame is also planning to launch a start-up. Among existing airlines, Jet Airways is in advanced stage of talks with Abu Dhabi-based Etihad for investment. LCC SpiceJet and GoAir are also learnt to be in talks with foreign airlines. India's largest LCC IndiGo is being pursued by a number of foreign suitors but has so far not shown any interest in a stake sale. Grounded Kingfisher is yet to find an investor.
After the FIPB meeting, economic affairs secretary Arvind Mayaram said: "They will now have to take the necessary licence from the Directorate General of Civil Aviation (DGCA). They can start operating now once they get the licence."
However, getting the aviation ministry's nod could prove to be a time-consuming process as it requires some changes in the recently liberalized foreign direct investment (FDI) policy. "I welcome the proposed new airline. But, the policy of FDI cleared by the commerce ministry allows foreign airlines to invest in existing Indian carriers. FIPB may have cleared the proposal but it has to meet the existing requirements. Now the commerce ministry will have to change that rule and allow a startup FDI JV," aviation minister Ajit Singh told TOI, while terming it a "procedural issue that will not derail the proposal."
Aviation secretary K N Srivastava, who attended the FIPB meeting, is learnt to have raised this issue and sought clarification from the department of industrial policy and promotion. Aviation ministry officials point out that "procedural issues" in the proposed AirAsia India JV. "As of now no company has been formed in this joint venture. So, under the current FDI rule, we may not be able to clear it till the commerce ministry makes the required changes or tells us it can be cleared in the current form under the existing rules," said a senior official. However, Ajit Singh reiterated that there was no opposition to the proposed new airline and that the ministry has already sought commerce ministry views on this issue.
Tata Group chairman emeritus Ratant Tata tweeted: "FIPB approval of the airline project ... reflects the true investor friendly policies of the government. This and other similar actions will, without doubt, reinforce investor confidence in India. I applaud the government for its transparency and its principled implementation of the stated policy."
Highly placed sources say that the government is unlikely to allow any technical issue to delay the new airline despite stiff opposition from some influential existing carriers, since the AirAsia-Tata JV is being seen as a test case of India's commitment to attract foreign investors. In the past also, Tata Group's attempts to enter aviation space by tying up with Singapore Airlines were thwarted by a big Indian airline and the government is unlikely to allow a repeat this time.
AirAsia chief Tony Fernandes has started making preparations for an early launch of the Indian subsidiary in which the Malaysian LCC, Tata Group and Telstra Tradeplace will have 49%, 30% and 21% stake respectively. Subject to getting the clearance from the aviation ministry, Chennai-based AirAsia India could take off as early as this summer with a fleet of three to four aircraft that would then be ramped up. Fernandes remains hopeful of an early nod and has already chosen an Indian as the JV's CEO and is looking at more recruitment.
"The good always win. People and companies with good intentions to create jobs and make life of the average man better will always win.... Fantastic range of candidates put in front of me by Tata and Sons. In my mind I can't believe the talent in India. Final call is Tata and Sons. Part of JV agreement but I know who my fave is. Hope they agree," Fernandes tweeted.
Once approved, AirAsia India will be the first real action after the government last year allowed foreign airlines to invest in Indian carriers. Captain G R Gopinath of Air Deccan fame is also planning to launch a start-up. Among existing airlines, Jet Airways is in advanced stage of talks with Abu Dhabi-based Etihad for investment. LCC SpiceJet and GoAir are also learnt to be in talks with foreign airlines. India's largest LCC IndiGo is being pursued by a number of foreign suitors but has so far not shown any interest in a stake sale. Grounded Kingfisher is yet to find an investor.
Ashok Leyland sets up tech centre in UK
Chennai: Ashok Leyland has set up a technical centre in the UK to strengthen R&D and address new markets in South America and Africa.
Established at a technology park in Warwickshire, the centre will help Ashok Leyland develop capabilities to build products that are on par with stringent European standards and draw on the region’s wealth of technical skills, said Sam Burman, Chief Technology Officer, in e-mailed responses to Business Line.
The tech centre will serve as a hub for future products with enhanced safety features for which there isn’t sufficient know-how in India, whereas European manufacturers have been refining these features for a long time, said Burman. “We envisage a growing demand for products with enhanced safety features and high levels of customisation. Vehicle electronics will also start to play a more crucial role in overall product development.”
The company will hire 30 people at the tech centre. It is looking for professionals specialising in safety features such as airbags and roll-over protection cabs, and homologation (certifying a vehicle is road-worthy after it meets mandatory specifications) of trucks and buses for new markets in South America such as Brazil, Peru, Chile, Bolivia and in Africa.
The commercial vehicle maker currently exports to over 30 countries in SAARC markets of Sri Lanka and Bangladesh, West Asia, Africa and the CIS. Its revenue from international operations (Rs 1,600 crore) has doubled over the last two years.
The UK Tech Centre is a part of Ashok Leyland’s overall R&D initiatives, said Burman.
The company’s R&D spend in 2011-12 was 2.8 per cent of the turnover.
The global benchmark is 3-4 per cent. It has a technical research centre in Chennai, employing 1,200 people and catering to the domestic market.
Established at a technology park in Warwickshire, the centre will help Ashok Leyland develop capabilities to build products that are on par with stringent European standards and draw on the region’s wealth of technical skills, said Sam Burman, Chief Technology Officer, in e-mailed responses to Business Line.
The tech centre will serve as a hub for future products with enhanced safety features for which there isn’t sufficient know-how in India, whereas European manufacturers have been refining these features for a long time, said Burman. “We envisage a growing demand for products with enhanced safety features and high levels of customisation. Vehicle electronics will also start to play a more crucial role in overall product development.”
The company will hire 30 people at the tech centre. It is looking for professionals specialising in safety features such as airbags and roll-over protection cabs, and homologation (certifying a vehicle is road-worthy after it meets mandatory specifications) of trucks and buses for new markets in South America such as Brazil, Peru, Chile, Bolivia and in Africa.
The commercial vehicle maker currently exports to over 30 countries in SAARC markets of Sri Lanka and Bangladesh, West Asia, Africa and the CIS. Its revenue from international operations (Rs 1,600 crore) has doubled over the last two years.
The UK Tech Centre is a part of Ashok Leyland’s overall R&D initiatives, said Burman.
The company’s R&D spend in 2011-12 was 2.8 per cent of the turnover.
The global benchmark is 3-4 per cent. It has a technical research centre in Chennai, employing 1,200 people and catering to the domestic market.
Elder Pharma inks pact with Japanese firm for cosmetics
Mumbai: To tap into the changing world of women’s fashion and taste in cosmetics, drug-maker Elder Pharmaceuticals has forged its maiden joint venture with Japanese firm Kose Corporation.
“It is a completely different area for us,” Elder Pharma Joint Managing Director Alok Saxena told Business Line, adding that Elder would make the specialised cosmetics at its Paonta Sahib plant, in Himachal Pradesh.
Elder has in the past followed the strategy of in-licencing products from foreign companies. The departure this time to form a joint-venture format was because of the huge opportunity in the domestic market, he said.
The product portfolio includes skincare and body care products, he said, adding that they were over-the-counter (OTC) products.
The Japanese firm will hold 60 per cent equity in the venture, and Elder the remaining 40 per cent.
The reason the cosmetic tie-up happened with the Rs 1,350-crore Elder Pharma and not its healthcare arm, was because the Japanese company needed specialised manufacturing, something the pharma company was familiar with, he said.
The cosmetics, to be made locally, will be in the market in three months, he added.
“It is a completely different area for us,” Elder Pharma Joint Managing Director Alok Saxena told Business Line, adding that Elder would make the specialised cosmetics at its Paonta Sahib plant, in Himachal Pradesh.
Elder has in the past followed the strategy of in-licencing products from foreign companies. The departure this time to form a joint-venture format was because of the huge opportunity in the domestic market, he said.
The product portfolio includes skincare and body care products, he said, adding that they were over-the-counter (OTC) products.
The Japanese firm will hold 60 per cent equity in the venture, and Elder the remaining 40 per cent.
The reason the cosmetic tie-up happened with the Rs 1,350-crore Elder Pharma and not its healthcare arm, was because the Japanese company needed specialised manufacturing, something the pharma company was familiar with, he said.
The cosmetics, to be made locally, will be in the market in three months, he added.
Share of goods exports rises to 17.7% of GDP
New Delhi: Despite a slowdown in global demand for goods, the share of India’s merchandise exports has increased to 17.7 per cent in 2011-12 from 13.9 per cent in 2009-10. In a written reply to the Rajya Sabha, Minister of State for Commerce and Industry D. Purandeswari said there has been a continuous upward movement of percentage share of merchandise exports in the overall GDP of India which showed that it played an important role in the economic development of the country. The percentage share of merchandise exports in the overall GDP of India from increased from 13.9 per cent in 2009-10 to 16 per cent in 2010-11 and 17.7 per cent in 2011-12, she said. The Minister also pointed out that as per WTO trade statistics, India’s share in the total global exports has also been increasing since 2007. “The long-term vision of the Government is to make India a major player in world trade and assume a role of leadership in international trade organisations commensurate with India’s growing importance,” Purandeswari said.
India surpasses China in HSBC's composite index in February 2013
New Delhi: India expanded more than China in February 2013, according to a survey by HSBC. The HSBC Emerging Markets Index (EMI) stood at 52.3 in February 2013.
The HSBC composite index for India for manufacturing and services stood at 54.8 in February 2013, whereas for China it was 51.4. The index above the 50 mark indicates expansion, below it indicates contraction.
“Emerging Market economies continued to expand in February but the pace of growth lost steam,” as per Mr Murat Ulgen, Chief Economist for Central and Eastern Europe and Sub-Saharan Africa, HSBC.
There has been a softening in new orders across the BRIC economies and particularly for new export orders in manufacturing industry, highlighted the EMI report in February 2013.
The business expectation for the next 12 months continues to be robust. The HSBC Emerging Markets Future Output Index registered growth for the second month in February 2013, added the report.
The HSBC composite index for India for manufacturing and services stood at 54.8 in February 2013, whereas for China it was 51.4. The index above the 50 mark indicates expansion, below it indicates contraction.
“Emerging Market economies continued to expand in February but the pace of growth lost steam,” as per Mr Murat Ulgen, Chief Economist for Central and Eastern Europe and Sub-Saharan Africa, HSBC.
There has been a softening in new orders across the BRIC economies and particularly for new export orders in manufacturing industry, highlighted the EMI report in February 2013.
The business expectation for the next 12 months continues to be robust. The HSBC Emerging Markets Future Output Index registered growth for the second month in February 2013, added the report.
Godrej arm launches Bandra Kurla project
New Delhi: Godrej Properties on Tuesday launched a major commercial project at the Bandra Kurla Complex here. The project, Godrej BKC, is expected to generate Rs 3,500-4,000 crore for the company. It would be developed jointly with Jet Airways.
Spread over 1.3 million sq ft, Godrej BKC would be one of the largest real estate projects in Mumbai, the company said. "Construction on this project has commenced. By the end of 2015, we expect it to be completed. We expect it to generate Rs 3,500-4,000 crore," said Pirojsha Godrej, managing director and chief executive, Godrej Properties. "The profit from the development would be shared equally by the two partners," he added.
The company, however, didn't specify the development cost.
"The economy seems to be reviving. The demand for commercial space, which has been subdued through the last few years, is also expected to pick up. Since the project is strategically located, we expect to get a good response," Godrej said. The company expects average realisations of Rs 27,000-28,000 per sq ft.
Of Godrej BKC's saleable area of 1.3 million sq ft, Jet Airways would use 1,60,000 sq ft for its new headquarters. Godrej BKC would offer floor plate area of 70,000 sq ft.
The construction contract for the project has been given to Larsen & Toubro. Skidmore, Owings and Merrill, which has designed the Burj Khalifa in Dubai and the Freedom Tower in New York, is the lead architect.
Spread over 1.3 million sq ft, Godrej BKC would be one of the largest real estate projects in Mumbai, the company said. "Construction on this project has commenced. By the end of 2015, we expect it to be completed. We expect it to generate Rs 3,500-4,000 crore," said Pirojsha Godrej, managing director and chief executive, Godrej Properties. "The profit from the development would be shared equally by the two partners," he added.
The company, however, didn't specify the development cost.
"The economy seems to be reviving. The demand for commercial space, which has been subdued through the last few years, is also expected to pick up. Since the project is strategically located, we expect to get a good response," Godrej said. The company expects average realisations of Rs 27,000-28,000 per sq ft.
Of Godrej BKC's saleable area of 1.3 million sq ft, Jet Airways would use 1,60,000 sq ft for its new headquarters. Godrej BKC would offer floor plate area of 70,000 sq ft.
The construction contract for the project has been given to Larsen & Toubro. Skidmore, Owings and Merrill, which has designed the Burj Khalifa in Dubai and the Freedom Tower in New York, is the lead architect.
Videocon to partner Nokia Siemens for 4G broadband network
New Delhi: Videocon Mobile Services on Monday said it plans to partner Nokia Siemens Networks to roll out fourth generation (4G) technology based broadband services.
Videocon had bagged spectrum in seven telecom circles, including Madhya Pradesh, Chhattisgarh, Haryana, Gujarat, Uttar Pradesh (East and West), Bihar and Jharkhand at the auctions held in November.
Though this spectrum is in the 1800 MHz band, used till now for 2G mobile services, Videocon wants to deploy 4G-based broadband service. But the key issue here will be the availability of devices that supports 4G data on this spectrum band. Videocon is, therefore, planning to start offering data services instead of voice as this can be done through dongles.
Arvind Bali, Director and CEO, Videocon Mobile Services, said, “4G Network is capable of providing comprehensive Internet Protocol-based telecom solutions that allows voice, data and streamed multimedia services in a seamless manner at much higher data speed than the existing generation network including 2G and 3G.”
Videocon will be in direct competition to the likes of Reliance Industries backed Reliance Jio Infocomm and Bharti Airtel. While Airtel has launched 4G based broadband services in select areas of Bangalore and Pune, other operators are yet to start. High cost of devices and the cost of setting up a full mobile network are acting as dampeners.
Videocon had bagged spectrum in seven telecom circles, including Madhya Pradesh, Chhattisgarh, Haryana, Gujarat, Uttar Pradesh (East and West), Bihar and Jharkhand at the auctions held in November.
Though this spectrum is in the 1800 MHz band, used till now for 2G mobile services, Videocon wants to deploy 4G-based broadband service. But the key issue here will be the availability of devices that supports 4G data on this spectrum band. Videocon is, therefore, planning to start offering data services instead of voice as this can be done through dongles.
Arvind Bali, Director and CEO, Videocon Mobile Services, said, “4G Network is capable of providing comprehensive Internet Protocol-based telecom solutions that allows voice, data and streamed multimedia services in a seamless manner at much higher data speed than the existing generation network including 2G and 3G.”
Videocon will be in direct competition to the likes of Reliance Industries backed Reliance Jio Infocomm and Bharti Airtel. While Airtel has launched 4G based broadband services in select areas of Bangalore and Pune, other operators are yet to start. High cost of devices and the cost of setting up a full mobile network are acting as dampeners.
Ranbaxy subsidiary to market Alembic's anti-depressant drug in US
Mumbai: Ranbaxy Pharmaceuticals Inc, US-based subsidiary of Ranbaxy Laboratories announced that it has entered into an in-licensing agreement with Alembic Pharmaceuticals to exclusively market desvenlafaxine base extended release tablets in the US.
Alembic Pharmaceuticals is the sponsor and manufacturer of the new drug application (NDA) desvenlafaxine. The product is a bioequivalent version of innovator drug, Pristiq by Pfizer, and is indicated for the treatment of major depressive disorder.
The market size for Pristiq is $590 million (IMS - MAT January 2013).
Desvenlafaxine base extended release tablets is indicated for the treatment of major depressive disorder. The product will be available in 50 mg and 100 mg dosage strengths. Alembic has received the final approval from the US Food and Drug Administration (USFDA) and Ranbaxy expects the product to be available in the US marketplace during the first quarter this year.
Commenting on the development, Bill Winter, vice president, Ranbaxy Trade Sales and Distribution, North America said, "Ranbaxy is pleased to partner with Alembic to offer a safe, effective, affordable generic alternative to the brand formulation much ahead of the patent expiration. We are committed to expand our portfolio of products offered in the US market for the benefit of patients, prescribers and the US healthcare system."
Alembic Pharmaceuticals is the sponsor and manufacturer of the new drug application (NDA) desvenlafaxine. The product is a bioequivalent version of innovator drug, Pristiq by Pfizer, and is indicated for the treatment of major depressive disorder.
The market size for Pristiq is $590 million (IMS - MAT January 2013).
Desvenlafaxine base extended release tablets is indicated for the treatment of major depressive disorder. The product will be available in 50 mg and 100 mg dosage strengths. Alembic has received the final approval from the US Food and Drug Administration (USFDA) and Ranbaxy expects the product to be available in the US marketplace during the first quarter this year.
Commenting on the development, Bill Winter, vice president, Ranbaxy Trade Sales and Distribution, North America said, "Ranbaxy is pleased to partner with Alembic to offer a safe, effective, affordable generic alternative to the brand formulation much ahead of the patent expiration. We are committed to expand our portfolio of products offered in the US market for the benefit of patients, prescribers and the US healthcare system."
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