As the company puts it, the single-minded focus on quality and professionalism exhibited by the leadership of the company, has resulted in Promed establishing a strong market presence and wide distribution network in Russia and other CIS countries. It is the second largest player in the Russian eye-care market and also ranks fifth among Indian companies exporting formulations to Russia. The company's growth rates and financial strengths are comparable with well-known Indian companies. Focus on quality and customer orientation has earned the company ISO 9000:2001 accreditation.

Promed has continually re-invented itself to keep up with the changing market environment and has taken a strategic decision to enter into the arena of contract manufacturing. The pharmaceutical outsourcing market is large, and it is growing. In 2002 the market was estimated at US$8 billion and is expected to grow steadily during the next few years.

Deepak Bahri, president, Promed comments on contract manufacturing as an option for growth: "In the past, major international companies have been reluctant to partner with Indian companies for fear of product quality and delayed deliveries, but over the last few years India has become a preferred destination for contract manufacturing as Indian companies are proving their capabilities in this area.

Promed, with its international presence was able to envisage the opportunity early on. It came to know of various pharma companies and distributors in U.S. and European markets who were interested in outsourcing their products to Indian companies competent in sterile product manufacturing. In order to tap this opportunity it was important for the company to set up a world-class manufacturing facility and develop competence in producing sterile products.

As a next logical step, Promed is setting up a new state-of-the-art sterile formulation unit at Baddi, Himachal Pradesh. The project is estimated to have an initial investment of Rs.25 crores and a dedicated work force of approximately 250 people. Latest technology will be used to manufacture a wide range of sterile products. Specially designed high efficiency machines are being imported from reputed suppliers in the U.S. and Europe. The plant is designed to comply with USFDA, EU & other international regulatory guidelines. Construction has already started and production is expected to commence by 2005 end.

"At Promed the focus is on cost-quality balance and we look to explore the potential for cost reduction in manufacturing by utilizing the latest international technology and economies of scale. In today's scenario, outsourcing partnerships have an important role to play in the growth of pharmaceutical companies," says Bahri.

With the inception of its manufacturing unit, Promed will have the capabilities to produce clinical and commercial batches of various products as per the requirements of its customers. Promed will be offering outsourcing benefits to its partners and customers abroad that have large and regular requirements to help them improve their operating efficiencies.