From steel to medicine, the man who mastered it all

MEET THE ENTREPRENEUR/MAHENDRA G PATEL

From being a small trader of iron and steel to the managing director of Lincon Pharmaceuticals Ltd, Mahendra G Patel has come a long way.

Patel started his career in 1970 by trading in iron and steel. In 1974 he set up Mahindra Steel Corporation, with an investment of Rs 10,000, while his brother Rajani Patel started Lincoln Pharmaceuticals with an initial investment of Rs 10 lakh.

Patel used to help his brother by taking care of the financials of the company and soon developed a keen interest in the pharmaceutical business.

In 1980 they set up a bulk drug manufacturing unit called 'The Continental Chemicals' at the Gujarat Industrial Development Corporation, Naroda, with an investment of Rs 5 lakh. In 1991, Patel moved out of the country to tap the exports market and bagged orders from east African countries such as Tanzania, Uganda and Zambia.

"With export orders from east African countries, Lincoln Pharmaceuticals' exports contribute around 30 per cent to its turnover," said Patel.

The turnover of Lincon Pharmaceuticals as on December 31, 2004, is at Rs 31 crore.

In 1993, Patel set up a paracetamol manufacturing unit at Khatraj in Kalol with an investment of Rs 90 lakh, where ampules and vials were manufactured in liquid and dry powder form. Apart from exports, Patel started expanding within the country and marketed his products in different parts of the country including Rajasthan, Madhya Pradesh, Uttar Pradesh, Orissa, and Assam.

In 1995 the company was converted into a public limited entity. In 1996 it issued an initial public offering (IPO) which was oversubscribed by almost two times. The company raised Rs 12 crore through the issue.

"The fund raised through the IPO was used to set up a tablets, capsules and syrup manufacturing unit at Kalol, with WHO GMP and ISO 9002 certification," said Patel.

In 2001, Patel invested Rs 2 crore to set up a research and development unit at its Kalol plant. Patel expects to achieve a Rs 45 crore turnover before the end of fiscal 2003-04.

"We will focus on research and development and we are planning to invest Rs 15 crore in this regard. We are also planning to expand overseas by tying up with a US company soon," said Patel. Patel is married to Kailasben and has a son Munjan and a daughter named Nidhi.

Munjan, after completing his BBA, is perusing his masters in finance. Nidhi is in last year BBA. Munjan wishes to join his father's business after studies. Patel's hobbies include travelling and meeting different people, and reading.