Sun Pharmaceutical Industries has embarked on a remarkable journey marked by strategic mergers and acquisitions, transforming challenges into triumphs. Among their noteworthy deals, the acquisition of Ranbaxy Laboratories Ltd in 2014 stands out as the most significant, valued at a staggering $4 billion.
In addition to this milestone, Sun Pharma has orchestrated several other key acquisitions, including Milmet Labs and Gujarat Lyka Organics in 1999, Pradeep Drug Company in 2000, Phlox Pharma in 2004, and many more. These strategic moves have played a crucial role in shaping Sun Pharma’s position in the pharmaceutical landscape.
Dilip Shanghvi, the visionary behind Sun Pharma, embarked on his entrepreneurial journey with a clear mantra – calculated risks. Starting as a pharmaceutical wholesaler in Kolkata, Shanghvi took an unconventional route. Instead of selling others’ products, he ventured into manufacturing lifestyle and psychiatry drugs in 1982, a niche explored by only a few multinational companies at the time.
His foray into drug manufacturing aimed to establish a presence in a market where these medicines were relatively unknown. This bold move paid off, and within the first year, Sun Pharma achieved a business turnover of about INR 7 lakhs. Buoyed by this success, Shanghvi, with the support of Shashikant Sanghvi, established his factory in Vapi.
By the 1990s, Sun Pharma began to make its mark, reinvesting profits to set up a research center in 1993. Dilip Shanghvi’s business acumen led the company to join the capital market with a public issue in a short span. During this period, the company smartly expanded its product portfolio, encompassing drugs for heart, and respiratory complications, diabetes, and more.
Sun Pharma strategically expanded its footprint in the pharmaceutical arena. In 1996, the company acquired a bulk drug manufacturing plant from Knoll Pharmaceuticals in Gujarat and a dosage plant from MJ Pharmaceuticals in Halol, both approved by the U.S. FDA. In 1997, Sun Pharma made its debut in the U.S. market by acquiring Caraco Pharmaceuticals in Detroit.
The company’s growth trajectory included acquiring respiratory brands from Natco Pharma in 1998 and Chennai-based Tamil Nadu Dadha Pharmaceuticals Limited in 1997. Sun Pharma’s entry into the U.S. market and various acquisitions solidified its standing in the pharmaceutical industry.
Awards and Recognitions
Dilip Shanghvi and Sun Pharma have earned numerous awards and accolades, recognizing their contributions to the pharmaceutical sector. Some notable recognitions include Dilip Shanghvi receiving the Business Leader of the Year award by Economic Times in 2014, and Forbes listing Sun Pharma in the World’s 100 Most Innovative Companies.
Dilip Shanghvi’s steadfast commitment to staying ahead of the competition has propelled Sun Pharma to new heights. Today, with a market cap exceeding Rs 1.20 lakh crore, revenues of INR 166.33 billion ($2.6 billion), and a net income of INR 56.6 billion, Sun Pharma continues to be a key player in the pharmaceutical landscape.
In conclusion, visionaries like Dilip Shanghvi have not only contributed to Sun Pharma’s success but have also played a pivotal role in elevating the Indian pharmaceutical industry to the third-largest producer globally, with the potential to become a 20-billion-dollar industry shortly.