‘We will invest in Triveni in the years to come to foster growth and quality strategy’
Recently, Gerresheimer acquired Triveni Polymer, to enhance its business plans. The company has already made several initiatives to equip the plant at Triveni with access to their know-how and technology. Niels During, Head of Gerresheimer Plastic Packaging discusses how the plant will contribute to the growth of the company in the years to come and about the company’s various primary packaging solutions, with Usha Sharma
India seems to be a preferred destination for global pharma companies. What does this mean for Gerresheimer?
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| Niels During |
We expect very good growth opportunities in India, especially with generics and other mass pharma market, which result in high volume demand for primary packaging. After having acquired Neutral Glass last April with a state-of-the-art glass primary packaging production, mainly for parenterals, it is important to have a local production for plastic primary packaging. In addition to that, India plays an increasingly important role as a generics supplier for export in the Western world. India has the highest number of US FDA approved productions. This results in even higher growth rates in India.
Recently, Gerresheimer has acquired Indian plastic packaging company Triveni. What was the rationale for this acquisition?
Triveni is a very fast growing market leader with all necessary national and international approvals and certifications. Triveni has a very broad, well diversified, customer base in the pharma market, a great management team and a state-of-the-art production including clean room technology. Their product portfolio covers plastic containers and closures. We see great opportunities for synergies and to leverage our joint growth.
Which technologies do you plan to bring to the Indian market?
Gerresheimer produces all its products under the same technological and quality aspects and framework worldwide. Therefore, we have already prepared a number of initiatives to make sure that the plant in Triveni will be given access to our know-how and technology as well as our very wide and strong product portfolio to produce according to Gerresheimer standards.
Why did you choose Triveni for this acquisition?
We always look into several opportunities. We decided to sign the agreement with Triveni since the company is a very fast growing market leader with all necessary national and international approvals and certifications as well as a very broad pharma product portfolio and a very good customer base.
What is the market size of Triveni and how will it further enhance Gerresheimer’s capabilities?
Triveni generated annual revenues of approximately Rs 1.3 billion (around EUR 20 million) in the financial year 2011-12 and will become a strong platform for realising our customer pipeline in India.
Triveni Polymer is the only company to get an US FDA approval for crucial Drug Master Files (DMF) for plastic containers and closures. Do you think this will enhance the product quality?
Yes definitely, since it proves and shows the high quality standards under which Triveni manufactures. At the same time, it opens export opportunities which we will intensify even further in the future.
India has a spurious drug market and the Government is trying to implement a standardised strategy in place to counter this. What are your plans to tackle this problem?
We will support any approach which increases product quality and attacks the counterfeiting of drugs.
With the help of the recent acquisition you are exploring emerging markets. Please tell us about the marketing strategy behind this plan and how will this help to accelerate the company’s growth further?
The estimated annual growth rate of the Indian pharma market is 14-17 per cent. With the combined expertise of Triveni and their very good customer relations in India together with the global footprint, strong and broad product offering and technological expertise of Gerrresheimer we plan to increase the current market share and grow fast.
What are your plans for the Indian market?
We are confident that the Indian pharma market will grow very strong in the years to come and we want to contribute to this growth with our primary packaging solutions. This can be done either by further acquisitions or by organic growth. We always look into interesting investment opportunities, especially in fast growing countries like India. But there are no concrete projects to be disclosed as of today.
Do you have plans to set up/ upgrade facilities in India?
We will invest in Triveni in the quarters and years to come to foster their growth and quality strategy. Concrete investment and enhancement decisions will be announced in due course.
How many employees are you planning to recruit for India operations and how soon?
According to our growth plans for Triveni we will expand and improve the platform to match the growth and hire additional staff, when required. Concrete plans will be announced in due course.
What are the company’s plans for the India market in the next two years.
Gerresheimer, together with the local management, will explore further opportunities to broaden the product portfolio and local production as well as broaden the customer base for Triveni.
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