UDAY BALDOTA, VP - INVESTOR RELATIONS, SUN PHARMA
B&E: The pharma industry was hit badly during the slowdown. Sun seemed to have escaped. What was prescribed strategically?
Uday Baldota (UB): We created sustainable revenues streams, with greater differentiation and speed to market. We also focused on cost leadership through vertical integration. There was also a focus on optimising operational costs and making acquisitions which yielded high ROI… Marketing was critical too!
B&E: But recession always hits profit margins...
UB: Surprisingly, our margins have actually gone up from 70% in 2005-06 to 80% in 2008-09. So even during recession, our margins have not been affected. This simply means that focus on costs has remained a top priority for us even in good times.
B&E: Still, there is turmoil in the sector at present, especially if we look at the ever-deteriorating condition of many major players...
UB: Not really! I don’t agree because the sales growth of the top 12 Indian pharma companies averaged above 20% in the year ended recently. Moreover, as far as Sun is concerned, there is no manpower cut on account of issues in the economy. In fact, our recruitment continues apace. Yes, there was one rare instance though at Caraco, our US subsidiary, where we had to reduce headcount, but that was only because it had problems.
B&E: $200 billion to be earned by generic players by 2014 from patent expiries. What’s your game plan in this regard?
UB: In our view, generic drugs is a significant, growing and profitable opportunity, worldwide. We are working towards getting a meaningful presence in the worldwide generic industry over the longer term...
B&E: The pharma industry was hit badly during the slowdown. Sun seemed to have escaped. What was prescribed strategically?
Uday Baldota (UB): We created sustainable revenues streams, with greater differentiation and speed to market. We also focused on cost leadership through vertical integration. There was also a focus on optimising operational costs and making acquisitions which yielded high ROI… Marketing was critical too!
B&E: But recession always hits profit margins...
UB: Surprisingly, our margins have actually gone up from 70% in 2005-06 to 80% in 2008-09. So even during recession, our margins have not been affected. This simply means that focus on costs has remained a top priority for us even in good times.
B&E: Still, there is turmoil in the sector at present, especially if we look at the ever-deteriorating condition of many major players...
UB: Not really! I don’t agree because the sales growth of the top 12 Indian pharma companies averaged above 20% in the year ended recently. Moreover, as far as Sun is concerned, there is no manpower cut on account of issues in the economy. In fact, our recruitment continues apace. Yes, there was one rare instance though at Caraco, our US subsidiary, where we had to reduce headcount, but that was only because it had problems.
B&E: $200 billion to be earned by generic players by 2014 from patent expiries. What’s your game plan in this regard?
UB: In our view, generic drugs is a significant, growing and profitable opportunity, worldwide. We are working towards getting a meaningful presence in the worldwide generic industry over the longer term...
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
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Ranked 6th Overall
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IIPM B-School Detail
IIPM Links
IIPM : The B-School with a Human Face
IIPM – FLP (Flexi Learning Program)
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
IIPM : The B-School with a Human Face
IIPM – FLP (Flexi Learning Program)
