India's Ranbaxy forecasts strong 2008, eyes M&A

MUMBAI (Reuters) - Ranbaxy Laboratories Ltd (RANB.BO: Quote, Profile, Research, Stock Buzz), India's largest drug maker by sales, expects strong growth in 2008 and would continue to look for acquisitions in India and abroad, Chief Executive Malvinder Singh said on Thursday.

"We expect a strong 2008 after a good 2007. We are aiming for 20 percent revenue growth," Singh told the Reuters India Investment summit in Mumbai.

Ranbaxy has a long-stated aim to be among the top five generic players with $5 billion in annual sales by 2012, but Singh said it had goals beyond sales targets.

"I'm not only looking at a focus on the topline of $5 billion, but what we are doing internally ... is clearly focusing on a much higher profitability as we move forward," he said.

Ranbaxy, valued at $3.7 billion, has been eyeing acquisitions to penetrate new markets and acquire additional skills. It announced eight deals last year, including the $324 million purchase of Romania's Terapia.

This year its M&A drive has slowed. Singh said the company had backed out of the race for acquisitions such as Merck KGaA's (MRCG.DE: Quote, Profile, Research, Stock Buzz) generic unit as it was overpriced.

He said the India's fragmented pharmaceuticals market needed consolidation, and Ranbaxy saw a role for itself in the process.

"If something comes up in India, I'll be the first one to go get it," Singh said.

(Reporting by Himangshu Watts and Bharghavi Nagaraju; Editing by John Mair)