Sun Pharmaceutical Industries was formed as a partnership firm in 1982 by Mr. Dilip Shanghvi and his family members to manufacture Pharmaceutical Formulations at Vapi Gujarat. The firm made a modest beginning with five products and turnover of Rs 10 lacs in the year 1982. With a balanced product mix and innovative marketing strategies the firm made rapid progress to reach a turnover of over Rs. 30 crores in 1992-93. In order to sustain the pace of growth the Firm was registered as a Limited Company under Part IX of the Companies Act 1956 w.e.f. 1st March 1993. There was no change in the Company''s management on its conversion into a limited company. The Company procured the Certificate of Commencement of Business on 18th March 1993. The Company specialises in selected therapeutic segments i.e. Psychiatry Cardiology Neurology and Gastroenterology. The formulation plant at Vapi with an installed capacity to manufacture 4800 lac tablets possesses the Good Manufacturing Practices Performance Certificate (under renewal) issued by the Commissioner Foods and Drugs Control Administration Gujarat State Gandhinagar. The second formulations unit of the Company started commercial production in April 1994 at Silvassa which will significantly enhance the Company''s formulations capacity. This will strengthen the company''s entry bid into certain high potential international markets with stringent entry specifications. The Bulk drug unit at Panoli (Gujarat) started commercial production in July 1994. This Plant will help the company in backward integration and also holds a good export potential. This facility at Panoli uses technology developed at the chemical synthesis lab at SPARC. During 1993-94 the Company recorded a turnover of over Rs. 50 crores establishing itself as one of the fastest growing pharmaceutical companies. Industry Growth rate(%) Sun''s Growth rate(%)-----------------------------------------------------------1989 12.0 999.01990 28.9 72.6 1991 19.1 69.8 1992 18.7 42.7 1993 11.5 42.0 1994 (Jan) 11.9 44.0-----------------------------------------------------------(Source: ORG Ranking of Companies in terms of retail chemist sales) The ORG rank trend in terms of retail chemist sales of some of the pharmaceutical companies also indicates the Company''s accelerated growth.-----------------------------------------------------------Company Rank in 1988 Rank in Jan 1994 Change -----------------------------------------------------------Torrent 36 6 +30 Wockhardt 22 21 +01 IPCA 49 28 +21 Kopran 130 79 +51 Sun Pharma 107 34 +73-----------------------------------------------------------The compounded annual growth rate in the Company''s turnover has been over 51% in the last 4 years. The company improved its ranking from 107th position in 1988 to 34th position in January 1994 as per the cumulative retail chemist sales audit conducted by ORG.-----------------------------------------------------------Years Rank-----------------------------------------------------------1988 107 1989 79 1990 70 1991 57 1992 48 1993 44 1994 (Jan) 34-----------------------------------------------------------Recognising the fact that the future growth would be research driven the Company set up a state of art research centre named Sun Pharma Advanced Research Centre (SPARC) at an initial cost of Rs. 5 Crore. SPARC has comprehensive research facilities in areas of organic synthesis peptide synthesis genetic engineering tissue culture and formulation development. More than 60 scientists have been employed to work on specific timebound projects. The Company has spent over Rs. 8.95 crores on R & D till 1993-94. In 1993-94 the total R & D expenditure was Rs. 4.42 crores forming 8.62% of its turnover. The Company has committed around 4% of its turnover to research in the future. The industry average for R & D expenses as a percentage to sales was 1.4 % in 1992-93. (Source: OPPI study)Sunkalp Laboratories Ltd. was incorporated as a subsidiary of Sun Pharmaceutical Industries Ltd. for the purpose of purchase and export of pharmaceutical goods manufactured by companies other than Sun Pharmaceutical Industries Ltd. However currently no major business activity is being carried out in this Company.The Company has also recently received a Temporary Registration Certificate for incorporating a wholly owned subsidiary at Moscow. There has been no closure/suspension of operations due to any labour problems/litigations/defaults in the Company till date. A section of workmen at the Vapi plant had resorted to mass absenteeism for around 15 days in September 1992. However the operations of the Company were not affected as the Company had recruited casual labourers to ensure uninterrupted production. Other than the above the Company has generally enjoyed good industrial relations.
Name | Position |
---|---|
Mr. Dilip S Shanghvi | Managing Director |
Mr. Sailesh T Desai | Whole Time Director |
Mr. Sudhir V Valia | Non Exe.Non Ind.Director |
Dr. Pawan Goenka | Independent Director |
Mr. Rama Bijapurkar | Independent Director |