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Sun Pharma In The News

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Business Leader of the Year – Dilip Shanghvi

Dilip Shanghvi, the low-key, but persistent, managing director of Sun Pharmaceutical Industries is a self-made billionaire who in the last decade has changed the face of Indian pharma. Shanghvi, 59, was listed by Bloomberg as the world's richest pharma billionaire with a net worth of $17.2 billion this August. His knack for picking up distressed assets and turning them around inspires both awe and envy among competitors. An announcement made in April that Sun is to take over Ranbaxy Laboratories for $3.2 billion is yet in the approval-seeking phase. It will create a company with combined sales of Rs. 24,000 crore with Sun Pharma controlling Rs. 6,000 crore of a total Rs. 75,000-crore pharma market. In the entire therapy segment, the combined entity of Sun and Ranbaxy will be the leader. This acquisition has given rise to a hope in pharma circles, that Sun could one day dislodge Israel's Teva Pharmaceutical Industries as the world's biggest generic drug maker. With Shanghvi at the helm, it all seems possible.
"I thank The Economic Times and jury members for this honour. It's a humbling moment. I dedicate this award to my 14,000 employees whose commitment and performance is reflected in Sun Pharma's success." Shanghvi said, when told about his selection for the ET Business Leader award. He was The Economic Times' Entrepreneur of the Year in 2008.
Today, Sun is among the fastest- growing generic companies in the US market and the most profitable in India. It took 28 years for Sun to reach the $1 billion revenue mark, in 2010, but a mere two more years to touch $2 billion and another two to double it further to $4 billion in 2014. It is now the fifth-largest generic drug maker in the world.
From being yet another promising, albeit low-profile, Indian generic company a decade ago to the torchbearer of the home-grown pharma industry, Sun has come a long way in a short time. The reason for this is Shanghvi's hands-on management style, which is conservative and bottom-line-focused, yet has delivered high growth. Shanghvi has also initiated steps to steer Sun towards innovation aimed at rediscovering old molecules and creating highly specialised branded generics. The coming years will determine whether Sun has the ability to handle the complex integration exercise that is coming up, assuming that all regulatory clearances are forthcoming for the Ranbaxy deal. If that process is successful, it won't be too hard to imagine Sun-Ranbaxy getting to the No. 1 spot in generics globally.