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Wockhardt plans tie-up with Charak

Baburajan K in Mumbai

Wockhardt, the domestic pharmaceutical major, has begun talks with Charak Pharma, the second largest ayurvedic drug firm, for a marketing alliance to sell Charak's ethical products in select foreign countries.

The marketing alliance will enable Charak to leverage on Wockhardt's marketing network and manpower abroad.

When contacted, Wockhardt executives declined to comment on the issue. "Talks with Wockhardt are at a nascent stage and the agreement could be for a marketing alliance or a joint venture," Pulin Shroff, director of Charak Pharma, said.

Charak is planning to tap countries in the US and Europe excluding Germany, Italy and the UK as part of its strategy to achieve a turnover of Rs 2 billion in the next five years from the present Rs 1 billion.

Charak will not use the marketing venture to further exploit the existing markets of the company which has an export turnover of Rs 200 million.

Charak Pharma, which has a joint venture with Nicholas Piramal India for selling its six over-the-counter drugs, has also decided not to invest further in the venture and it will not take up more products for marketing as it is not a thrust area.

"We have not yet snapped ties with Nicholas, but discussions are on now," Shroff told Buisness Standard.

The company does not want to enter into any agreement with other drug firms for the purpose. The company's five-year business plan also does not involve any major capital expansion plan. Recently, Charak has invested around Rs 200 million for a new plant at Silvassa.

Research and development is also a major thrust area for Charak. It has developed a new ayurvedic anti-depression product called Sumenta.

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