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The Company's API and Intermediates business has continued its global leadership and has been fueling the growth of the Company's Formulations business. Our integrated model has not only given us cost leadership, but also furnished the additional thrust necessary for pushing Lupin into higher orbits of growth.
Lupin continues to maintain its global leadership status in its key APIs and Intermediates. Attaining a global scale of operations has been the underlying principle governing Lupin's API business model. Today, the Company has established an enduring presence in the Cephalosporins and Anti-TB space. It has also built up a solid position in the CVS space, helping to widen the Company's product portfolio.
The Company's API business clocked in Rs. 7,138 Mn during FY 2008-09. The API business put up a robust operating performance, with ROCE comparable to the best in the industry at 33%. Today, the Company undoubtedly runs one of the most profitable API businesses in the industry. This has come about from Lupin's consistent pursuit of operational improvement, and better product and business mix, which has helped the Company sustain its profitability despite the adverse price volatility witnessed on the Pen G front (Pen G is one of the vital inputs into making the building blocks of several oral Cephalosporins).
Lupin's Global TB business (GTB) is a part of the API business unit. GTB performed very well and recorded sales of Rs. 826 Mn during FY 2008-09, as compared to Rs. 575 Mn, during the previous year.
With growing captive consumption resulting from the Company's fast expanding Formulations business, the API division continued to be the bedrock of its business. Going forward, Lupin expects its Formulations business to continue its onward march, which would be built on and around its API and Intermediate strengths.
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