Pharma stocks have opened the day on a negative note. Losers here include Orchid Chemicals and Lupin. As per a leading business daily, Ranbaxy Laboratories and its Japanese parent Daiichi Sankyo are looking at a three-year plan for unlocking operational synergies in their global generic and branded businesses. The plan focuses on research and development and marketing. For instance, Ranbaxy could access the Japanese market through Daiichi and while Daiichi could access emerging regions like Romania and Mexico. It may be noted that generic medicines can be branded in the semi-regulated markets. Moreover, they are not subject to price control as in India. Little wonder then that Daiichi is seeking to significantly leverage Ranbaxy's presence in these regions.

FMCG stocks have opened the day on a mixed note. Gainers here include P&G Hygiene and HUL, while Gillette India is in the red. Marico announced its 2QFY10 results yesterday. The company reported a robust topline growth of 14.4% YoY during the quarter on the back of strong volumes in all its categories. Parachute in rigid packs witnessed a 10% YoY volume growth during the quarter while volumes for value added hair oils grew by 17% YoY. The company's international business during the quarter grew by 33% adjusting for currency with strong demand seen in Bangladesh, Middle East, South Africa and Egypt. Operating (EBITDA) margin grew by 1.5% during the quarter on the back of fall in raw material costs offset by increase in employee and advertisement expense. Given Marico's successfull diversification into non-Parachute portfolio through new products launches and foray into international markets, we see the company efficiently positioning itself amongst the top FMCG companies in the country in the next three to five years.