NEW DELHI: Piramal Healthcare plans to invest 6,500 crore in its contract manufacturing and research, over the counter (OTC) and critical care businesses over the next five years as it seeks to achieve global leadership in these areas, a top company executive said.
The money would be used for both acquisitions and organic expansion Ajay Piramal, chairman at Piramal Healthcare, told ET. The company is flushed with cash after it sold its domestic formulation business and diagnostic chain for over 17,000 crore last year.
Malvinder and Shivinder Singh, who also sold their stake in Ranbaxy for $2 billion in 2008, have invested in their hospital and financial services business. They have since bought over a dozen firms in India and globally.
In the OTC business, it will invest 2,500 crore to become among the top three players in the Indian market. It bought Cipla's popular contraceptive drug iPill last year and from the 40th position two years ago, it has now leapfrogged into the top 10 OTC companies in the country, Piramal said.
For its existing brands, the company will invest in sales & promotion, human resources and distribution network. "With growing middle class, the OTC business will grow significantly," he said. The company added 650 people in its field force during the last fiscal taking its total head count to about 900.
According to the company's presentation to investors, Piramal Healthcare has set a revenue target of 10,000 crore by 2016. For the fiscal ended FY11, the company had operating income of 2009 crore.
The money would be used for both acquisitions and organic expansion Ajay Piramal, chairman at Piramal Healthcare, told ET. The company is flushed with cash after it sold its domestic formulation business and diagnostic chain for over 17,000 crore last year.
Malvinder and Shivinder Singh, who also sold their stake in Ranbaxy for $2 billion in 2008, have invested in their hospital and financial services business. They have since bought over a dozen firms in India and globally.
In the OTC business, it will invest 2,500 crore to become among the top three players in the Indian market. It bought Cipla's popular contraceptive drug iPill last year and from the 40th position two years ago, it has now leapfrogged into the top 10 OTC companies in the country, Piramal said.
For its existing brands, the company will invest in sales & promotion, human resources and distribution network. "With growing middle class, the OTC business will grow significantly," he said. The company added 650 people in its field force during the last fiscal taking its total head count to about 900.
According to the company's presentation to investors, Piramal Healthcare has set a revenue target of 10,000 crore by 2016. For the fiscal ended FY11, the company had operating income of 2009 crore.