Ranbaxy seeks buys, upbeat on Romania

By Himangshu Watts
MUMBAI (Reuters) - Ranbaxy Laboratories Ltd. is eager to expand aggressively and expects business in Romania, where it bought a firm this year, to be a key driver of profit growth in 2007, its top official said on Friday.
"We are a very growth-hungry company and we always endeavour to grow more and more, organically and inorganically," Chief Executive Malvinder Singh told Reuters in a telephone interview after announcing the $70-million acquisition of South Africa's Be-Tabs Pharmaceuticals.
Singh said Be-Tabs, South Africa's fifth-largest company valued at 2.2 times of sales and 7.7 times EBITDA, would give Ranbaxy a strategic advantage in a large and growing market, which he said had high entry barriers.
The acquisition, which would be completed by March, would double its revenue in South Africa and help it expand in the continent as a whole, he said.
"From a strategic perspective, it is very good."
Ranbaxy, which aims to be one of the top five generic players with $5 billion in annual sales by 2012, has acquired several firms in Europe, including Romania's Terapia in March, for $324 million.
He said the company had doubled its sales force, expanded capacity and modernised its facilities in Romania.
"I see Romania as a very strong growth driver in the profits for 2007. Romania is a very good story for us."
"It is going to be our third-biggest business. It's a strong high-margin market for us.
The company's July-September profit increased by more than six times to 1.40 billion rupees ($31.33 million) although price erosion in the U.S. market restrained growth.
Singh said the company's business in the key U.S. market would continue to grow despite tough competition.
"Competition (is) going to remain intense in the U.S. market. Our business is growing and it will continue to grow."
Europe was going through some "market changes" which would impact its business but he expected a recovery in western Europe next year.