Aurobindo Pharma rules out stake sale
13 Jun 2007
Media reports suggest that Aurobindo Pharma is laying off stake to either co-player in industry or to a private equity player. However, Lanka Srinivas, director, Aurobindo Pharma, refuted the rumours saying that the reports were out of context. CNBC-TV18 reports.
He added that at this point in time, most of the acquisitions
in Europe were for platform building. "We have filed as many as 45 products
for Europe and we are looking for a marketing platform so that we grow faster."
On whether the company will need funds for the acquisition, Srinivas said
that the company has the required funds. "What we are looking for is a small
marketing platform as we are planning to buy in Spain, Italy and Portugal and
these acquisitions don''t require enormous cash."
He added that the company already has more than $100 million cash and also the future cash flows will added to the chest of purchases.
The company books show a debt of Rs900 crore. On that, he said that debt has been very well addressed. "We have a working capital debt at this point in time for which we have receivables against the working capital," he added.
Srinivas pointed out that the long-term debt is about $50 million -$55 million and a sales tax deferment, which the company had to pay after 14 years. "Debt is not the primary issue and any dilution to reduce debt is out of question," he said.
Aurobindo Pharma had crossed $500 million sales this year and did about $387 million in FY06."We have achieved tremendous growth and believe that the new drivers are growing at 75 per cent to 100 per cent year-on-year. We are looking to cross the $1-billion mark from the current $500 million," he added.