Dr. Reddy's Laboratories Limited (BSE:500124) said it aims to be among the top five drugmakers in India, largely driven by mergers and acquisitions (M&A) of brands, companies and in-licensing deals targeting chronic categories, along with broadening of nutraceutical and over-the-counter (OTC) portfolios. The company did not set a deadline but said it wants to achieve the target in the "foreseeable future". It is ranked 10 and has been steadily moving up the ranks.

It was ranked 16 about five years ago. In an interview to ET, GV Prasad, chairman of Dr Reddy's Laboratories, said the management's focus, attention and significant capital allocation will be directed towards India. "Getting into the top five is our aspiration," said Prasad.

"On an organic curve you can't reach there (top five). We are open for M&A but for the right price and buttressed by organic execution. We have to pull all the levers." He said private equity players have pushed up prices of the assets.

"These are all cycles. They come, and they go," he said. Prasad said the company is well positioned for acquisitions, as it is debt-free with a cash surplus of INR 15.00 billion and net cash generation of INR 20.00 billion.

He said the company will be targeting 25% Ebitda margin and return on capital employed, taking care of future investments.