J B Chemicals & Pharmaceuticals Ltd.

The environment under which the Indian pharmaceutical industry is operating is changing very slowly at present, but is likely to change very significantly - and significantly faster - in the future. The Indian pharmaceutical industry grew at a very slow pace from 1947 to 1970, largely due to the lack of incentives and the failure of the government to set-up a concrete regulatory framework.

Today, numerous governmental regulations and policy changes, stifling price controls, rigorous controls on formulations, and an absence of international patent protection characterize the industry. The new WTO rules imply that India will have to switch to a product patent regime post 2005 from its current process patent regime. This would alter the scenario in the Indian market over the next 10-15 years.

Currently the Indian pharmaceutical industry is highly fragmented, but has grown rapidly due to the friendly patent regime and low cost manufacturing structure. Intense competition, high volumes and low prices characterize the Indian domestic market. Old and mature categories like anti- infectives, vitamins, analgesics are stagnating or growing at a slower pace while new lifestyle categories like cardiovascular, CNS, anti diabetic are growing at double-digit rates. The growth of a company in the domestic market is thus critically dependent on its therapeutic presence.

J. B. Chemical & Pharmaceuticals Ltd. distributes its products to doctors and millions of users across lndia through a penetrative strong network of over 2,000 distributors and dealers. Who redistribute to more than 2 lacs relations in th domestic market.

J. B. Chemical & Pharmaceuticals Ltd.'s operations in CIS countries, makes it a strong Indian Multinational with its powerful marketing tie ups in Sri Lanka, Philippines, Malaysia, Vietnam and Myanmar in South East Asia

The past and the present

JBCPL today is ranked 38th with sales of Rs. 127.5 crores ($28.3 million) from the domestic market. J. B. Chemical & Pharmaceuticals Ltd. distributes its products to doctors and millions of users across lndia through a penetrative strong network of over 1,300 distributors and dealers

More than 400 committed marketing professionals faithfully maintain over 100,000 monthly contacts with doctors all over the country. Imbibed with the strength of precision, perfection, efficiency and accuracy JB chemical has a plethora of 11 manufacturing facilities in four exquisite locations of Ankleshwar, Belapur, Daman and Panoli.

JBCPL has a strong presence in various therapeutic segments that includes life style management therapy such as cardio vascular drugs & anti ulcerants and acute therapy such as pain management & anti infectives. JBCPL enjoys a brand leadership status in most of these segments with its brands amongst the top three in their categories.

Over the past five years, JBCPL has been defending its position in the market and has grown at a CAGR of 7%. JBCPL has also improved its ranking from 39 in 1998 to 38 in 2003.

JBCPL understands the need of the market and is providing tailor made solutions to therapeutic challenges faced by physicians. Keeping in tune with this philosophy JBCPL has further strengthened its presence in Gastroenterology with the launch of Panum (Pantoprazole) to ensure 24 Hours Acid Control & Motiza (Itopride) - A Novel GI Prokinetic. Its flagship brand - Metrogyl & Rantac have recorded a reputed growth in the GI Segments.

In the life style category JBCPL has shown an impressive performance with its flagship brand Nicardia Retard fighting the battle against an onslaught of new generation anti-hypertensives. In order to consolidate its presence in ever growing Cardiology segment JBCPL has launched new generation therapies like Myoram (Ramipril), Vasolip (Atorvastatin) and Nebilol (Nebivolol).

OF is a brand with a growth of more than 14% in a sluggish anti-infective market. JBCPL has increased its presence in the orthopedic segment with the launch of Dicloran MR and Moviz. The Dicloran range contributes Rs. 8 crores and is growing at 6%.

With the launch of Cefjoy and Zudo JBCPL has entered one of the biggest segments of the industry i.e. Cephalosporins and Multivitamins. Due to the rapid growth of these segments, Cefjoy and Zudo have a potential to become big brands in the first year of its launch.

The Future

In order to consolidate its position in the Indian pharma market, JBCPL is looking at therapy management module for its growth. JBCPL will be setting up various Strategic Business Units (SBUs) to optimise the product mix. JBCPL will leverage its core competence of low cost manufacturing and marketing for providing maximum return to its shareholders.

CNS drugs are one of the major growth drivers in the world with high level of R&D activities channeled in this segment. Awareness of neuro psychiatry related problems has also increased over a period of time thus throwing open enormous opportunity for growth. JBCPL has launched ‘ZEPHYR’ – A Neuro Psychiatry division of JBCPL. The launch of ZEPHYR is JBCPL‘s first foray into niche marketing through focus on selected specialty.

With ever increasing cardiac and diabetic patients, increasing awareness about cardiac and diabetic problems among general population and having a strong presence in cardiovascular segment, JBCPL is aggressively pursuing its plan to launch a division in cardiology and diabetology segments. The cardio-vascular and anti-diabetic markets together are worth about Rs. 2000 crores ($445 million) and are growing at double digit growth rates. In tune with the philosophy of providing highest quality care at low cost, this division will bring in the latest developments in the field of cardiology and diabetology to improve patient care.

In order to stay competitive in the future, JBCPL will focus and invest in R&D and also take advantage of recent developments in the field of biotechnology. JBCPL will also invest in information technology to upgrade its infrastructure facilities. Mergers & Acquisitions, Co-marketing, Co-developing and licensing agreements will form the corner stone for growth of JBCPL in the years to come. Brand building, disease management and Customer Relationship Management will be the core strategy to take JBCPL into the post GATT era.