Glenmark Pharmaceuticals is planning to double the production capacity and headcount of its manufacturing unit in Brazil in two years and use this production to reach South American markets. Glenmark says that the South American market is the second fastest growing market (after the U.S.) and is seeing growth rates of 99 per cent and expansion plans are to meet anticipated growth in demand.
Glenmark's main business in the Latin America market is generated from branded generics and contributes 8.5 per cent of its Rs. 893.4 crore (USD 203 million) turnover. Brazil's semi-regulated market itself is rated as the 11th largest for pharmaceutical products valued at USD 7 billion and is the largest in South America.
Glenmark found an entry into the South American market through the acquisition of Laboratories Klinger along with its Greater Sao Paulo manufacturing units for USD 5.2 million. The acquired unit had 21 approved product registrations and 176 employees. This acquisition has clearly paid off as the unit is generating about USD 17 million a year.