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Dilip Shanghvi, billionaire owner of India's largest drug maker, Sun Pharma, has been accepting various accolades in the past couple of years. In 2013, two financial dailies adjudged Sun the 'Company of the Year'; two business channels gave similar awards in 2012 to the largest Indian drug maker. In 2011, he was awarded 'Indian of the Year' by another news channel.
Growth is the reason. Sun Pharma, as a start-up, had first year sales of $0.02 million in 1983. This had grown to a company worth $19.5 billion (market cap) in 2013. This growth from a psychiatric drugs manufacturer to India's largest drug maker in 30 years was driven by the one-man army of Shanghvi. His plan of turning Sun into the largest generic drug maker in the US is being driven through large buyouts. These include acquisition of Ranbaxy; the combined entity will be the fifth largest generic maker in the US.
He had to face a tough time when minority shareholders raised concerns over the offer price Sun had made to acquire shares of Israeli company Taro Pharma. But he managed to acquire the controlling stake and settle all the issues in the five years since the deal was announced in 2007.
Sun went public in 1994. It made its first acquisition in 1997, when it acquired Tamil Nadu Dhada Pharmaceuticals, followed by acquisition of the US-based Caraco the same year.
"In the US, we are still a small player and we have to find a way to increase our presence," said the low-profile chief executive. Currently, Sun has leadership in seven speciality therapy areas in India, and has a little over 70 per cent of sales from international markets.
To increasing its international exposure and bring better professionalism, Shanghvi, 58, decided to step down as chairman in 2012, in favour of Israel Makov, former president and chief executive officer of Teva Pharmaceutical. Like other Indian promoters, Shanghvi also wanted to hand over the baton to his son, Aalok Shanghvi, but not in a hurry. "No immediate plans to bring Aalok into the management. He has to grow well in his current position before he can be given additional responsibilities," he has said.
At present, Aalok is a general manager with the international marketing team.
