India's Ranbaxy group has started reorganising the Terapia Cluj drug maker it acquired this spring in a deal worth 324 million dollars (around 270 million euros). The company has set a target of a 6.2% market share and sales topping 100 million dollars (around 81 million euros) for the new managers to reach by yearend.
The commercial department of the company was restructured and has been divided into seven business units, each led by a manager. The entire department will be coordinated and supervised by Dragos Damian, a former commercial manager with Terapia.
In order to accomplish the set targets, the company will strengthen its sales force from 250 to 350 persons, as well as proportionally increase its product portfolio.
Ranbaxy began operating on the Romanian market as early as six years ago. "We saw the domestic market as highly challenging for us, however, Ranbaxy's opportunities have gradually increased here," said Peter Burema, the new chairman of Terapia Ranbaxy and chairman of Ranbaxy Europe, CSI, Africa and Latin America. He added that, strategically, Romania is very well positioned in Europe, and the fact that it will join the EU next year was one of the reasons that prompted Ranbaxy to acquire a player in this country.
"We'd considered several companies in Romania, but we decided Terapia was the most suitable. Terapia is a strong player that proved it had the capacity to sell brands," says Peter Burema.
He specified the Terapia brand would not be discarded; instead, it is to be incorporated into the new name of the company, Terapia-Ranbaxy. "Terapia is a very strong brand that has grown gradually and radiates confidence," stated Peter Burema. In 2006, in terms of sales, Romania will be the third largest market for the company, contributing 7-8% to sales made globally.
"We plan to make Romania a strategic point for Europe, a hub for Ranbaxy operations in Europe," specified Malvinder Singh, Ranbaxy chairman and managing director.
Regarding Terapia's production capacities, Peter Burema said Ranbaxy would use the facilities to manufacture part of its brands here.
Terapia's portfolio includes more than 150 products, with around 25 of these being exported. The drug maker was set up in 1921, and last year registered sales around 80 million dollars. According to current Cegedim data, Terapia is number eight among the leading domestic players.
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