• Sun Pharma has been one of India’s fastest growing
pharmaceutical companies. It was promoted by Dilip Sangvi
with the aim of manufacturing pharmaceutical formulations. It
started as a partnership firm in 1982 and became a limited
company in 1993. The major segments that the company
concentrates on are the niche segments such as psychiatry,
cardiovascular, gastroentology and neurology. During the last
two years Sun Pharma has improved its topline by over 30
percent YoY when the overall pharma industry has grown by
not more than 12 percent per annum.
• Type Public (BSE: 524715)
• Industry Pharmaceutical
• Founded 1983
• Headquarte Mumbai, India
• Products Pharmaceuticals
• Revenue 2,508.91 crore
• Net income 898.65 crore
• Employees 8,000 (2008)
• Website www.sunpharma.com
• Brand (% sales) Market (in segment) Growth
• Monotrate 7 23.7% (Cardiac Care, Anti-anginal) 13.5%
• Alzolam 4.8 9.3% (Sedatives/ Tranquil ) 25.6%
• Glucored 3.9 5.5% (Anti-diabetic) 34.7%
• Famocid 3.2 1.9% (Famotidine, Anti-ulcer 40 %
• Zeptol 3.6 6 % (Antiepileptic) 53.5%
• Encorate 3.1 5.2% (Antiepileptic) 138.6%
• Angizem 2.9 4.4% (CalciumChannelBlocker) 9.1%
• Syndopa 2.3 27% (Anti-Parkinson’s) 48.4%
Key Acquisitions & Rationale
• Year Country Acquisition
• 2008 US Caraco acquired some products of Forest’s Inwood business
• 2008 Tennessee, US Acquired Chattem Chemicals, Inc
. 2005 New Jersey, US Assets of Able labs
2005 Ohio, US Formulation plant in Bryan
2005 Hungary Acquired ICN Hungary
2004 US Women's Health Brands
2004 Baroda, India Merged Phlox Pharma
2000 Chennai, India Merged Pradeep Drug Company Ltd (PDCL)
1999 India Merged Milmet Labs
1998 India Brands from Natco
1997 Detroit, US Acquired Caraco
1997 Chennai, India Merged Tamilnadu Dadha Pharmaceuticals Ltd (TDPL)
1996 Halol, India Acquired MJ Pharma
1996 Ankleshwar, India Acquired Gujarat Lyka
1996 Ahmednagar, India Bulk Drug plant from Knoll Pharma
Ability to launch new products with a great amount of speed and
The company has only 20% exposure to the DPCO.
The past growth rate of the company has always been double that of the
industry as a whole.
Continuous losses of Caraco Pharma .
Declining profit margins
The relaxation of DPCO will be a big boost for the company and this might
marginally improve the profit margin.
The company has already made ANDAs (Abbreviated new drug application) in
USA and it provides a great opportunity for growth for the company.
The company has entered the US market This provides a great opportunity for
the company to make the most out of the expiring patents in USA.
The entry of foreign players
The company is more into acquisition based growth and this might lead to a
stage of financial crunch as it has already happened in the case of Caraco
Sun pharma provided debt to Caraco and is facing problems due to the
continuous losses made by the latter.