The success story of Sun Pharma and Mr. Dilip Shangvi

1. Sun Pharmaceuticals
Industries Limited
Group number: 6
Rakshith Kumar
Prateeksha
Raman
Sachin
Sri krishna
Vaishnavi

2. INTRODUCTION
• Sun Pharmaceuticals was set up in 1983 by Dilip
Shangvi and the company started off with only 5
products to cure psychiatric illness.
• Its headquarters is situated in Mumbai,
Maharashtra
• It has manufacturing plants in India, US, Canada,
Brazil, Mexico and Israel.
• 75% of products produced are exported.
• It gets its 60% of its turnover from US.
• In 1994 Sun pharma was listed on stock exchange

3. Conti...
• Industry: Pharmaceutical (Recently entered in
to power sector)
• Type of company: Public company
• Product: Pharmaceuticals, generic drugs.
• No. Employee: 32,700
• Revenue- $166.33 billion (2013-2014)
• Manufacturing Locations – 26 including US,
Canada, Brazil, Mexico, and Israel

4. Mergers And Acquisitions
YEAR DEALS RATIONALE
1996 Bulk drug unit, Knoll
Pharma
Bulk capacity
1996 Caraco Acquired initial equity stake; entered the US
Generic market.
1996 Gujarat Lyka Organics Manufacturer of cephalexin bulk active with a
USFDA approval for the intermediate, 7ADCA.
1996 MJ Pharma Manufacturer of several dosage form lines with a
UK MHRA approved plant.
1997 Tamil Nadu
DadhaPharma
Enabled a quick entry into high growth therapy
areas of interest: fertility, anticancer,
anaesthesiology, gynaecology, pain managemen
1998 Milmet Labs Quick entry into ophthalmology
1998 NATCO brands Respiratory and asthma range.
2000 Pradeep Drug company Chennai based bulk-active manufacturer
2004 Phlox Pharma Bulk-active company EDMF for cefuroxime axetil
Amorphous

5. YEAR DEAL RATIONALE
2004 Womenís First Two branded generic products
2005 Manufacturing facility , US Liquid/ointment manufacturing facility in the US.
2005 ICN Hungary Manufacturing facilities in Hungary; controlled
Substances.
2005 Assets of Able Labs
.
Acquired from bankruptcy for US$23.5m; sales of
>US$100m before USFDA suspended operations,
plant has replacement value of c.US$45m
2010 ToraPharma Largest Generic producer in US and Israel, to
acquire market share in US
2011 MSD To bring complex or differentiated generics to
emerging markets.(Other than India )
2012 DUSA Pharmaceuticals Inc Access to branded derma product
2013 Intrexon R&D in ophthalmology
2014 Ranbaxy Laboratory To increase presence in global and domestic
markets

6. Company followed Merger and
acquisition Strategy for speed growth
• Sun Pharma has grown to be the Indian largest pharma co. in US
market by expanding through acquisition almost every year.
• Sun pharma has a first mover advantage over rival in chronic drug
sales.
• Sun Pharma international business increased after he grappled with
problem of integration with acquired companies.
• They make an attempt at antibiotics, but they realized that it was
late, as other are already strong in that segment, so they bought
Ranbaxy as it was already good in it.
• The decision were created based on the market feedback each of the
decision were working as a separate unit, started from introducing
new therapies and sale began going through the roof.
• They are concentrating on single disease, so that they could
concentrate sales to a particular set of doctor

7. Market share of SUNPHARMA over the
years

9. Acquisition of Ranbaxy
• It will make the company the largest pharma
company in India.
• The largest Indian pharma company in the US,
and the 5th largest speciality generic company
globally.
• Sunpharma was making an attempt at entering
into antibiotics, and Ranbaxy was already good
in that.
• Ranbaxy shareholders will get four shares of Sun
Pharma for every five shares held by them

11. Advantages of acquiring Ranbaxy
• It will make the company the largest pharma
company in India.
• The largest Indian pharma company in the US,
and the 5th largest speciality generic company
globally.
• Sunpharma was making an attempt at entering
into antibiotics, and Ranbaxy was already good
in that

12. Diversification of business
• Dilip Shanghvi invested Rs 1800 crore in Suzlon
(wind turbine maker) and got 23 per cent stake
• Shanghvi says its just a financial investment and
he don't have any intentions to take over the
control of Suzlon

13. Team that leads to speed and
perfection
Mr. Israel Makav, chairman Mr. Dilip Shanghav, Managing Director
Non Executive Independent Directors
Mr. Hasmukh
S Shan
Mr. Keki M
Mistry
Mr. Ashwin
Dani
Mr. M
Mohanchandra
Dadha
Ms. Rekha Sethi Mr. Vijay Patel

14. What did we learn?
• Update with the market that can be the speed
that sun pharma have adopted.
• When growth is goal of business then perfection
will always follow that growth.
• So, to conclude, Hard work, speed, perfection
and a good team will lead to shine like a sun.
• The fire inside the sun should be your objective
that never goes off.