Lupin plans to triple its revenues in the next three ye­a­rs and would look

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at over­seas acquisitions to boost sa­les. India’s fifth largest pharmaceutical company posted a turnover of $1 billion (Rs 4,767 crore) for FY10 and has targeted revenue of $3 billion by 2013.

“We have identified a few geographies where we need an onshore presence. Though our first choice would be to go for organic growth, we are looking for acquisitions in certain parts of Europe and Latin America,” S Ramesh, president, finance & planning, told Financial Chronicle.

Mumbai-based Lupin is looking to strengthen its existing portfolio and expand into newer geographies.

Lupin is bullish on the Japanese market, where it is one of the few Indian pharma companies to have carved out a niche, again through the acquisition route.

Back in 2007, the company had acquired a majority stake in Kyowa Pharmaceutical Industry, one of the top 10 generic pharmaceutical companies in Japan.

“No global aspirant can ever ignore the Japanese market. It is the second largest in the world. The penetration level of generics is still pretty low there as compared with other major markets. This offers us a tremendous growth opportunity,” said Ramesh.

The company’s sales in Japan went up 21 per cent annually to Rs 534.1 crore, contributing 11 per cent of the total revenue.

Speaking about Kyowa Pharma, Ramesh says the subsidiary’s profitability has grown greatly since the acquisition, and ‘the best is yet to come’.

Ramesh believes that the US, Europe and Japan would continue to be major pharma markets in the future, with emerging econo­mies increasingly making their presence felt.

“The healthcare sector in developing countries like India would grow faster than the countries’ gross domestic product. With disposable incomes rising, health consc­iousness amo­n­g people would also go up,” he said.

Analysts remain bullish on Lupin. Sarabjit Kour Nangra of Angel Securities said, “Lupin is one of the best plays in the generic space given its strong execution capabilities, improving financial performance and diversifying business model. The high-margin branded generic business has been the key differentiator for Lupin in the Indian pharma space.”

Lupin has an exciting product pipeline for the US market over the next 2–3 years, said Vikas Sonawale of Religare Institutional Research. “Also, the domestic formulations and Japanese operations will sustain its growth momentum.”