Story of Dilip Sanghvi a self-made billionaire and founder of Sun Pharma
Dilip Sanghvi, a self made billionaire, he became the 12th richest person of the India last year with the net worth of more than 790 crores USD.
The Goverment of India awarded Dilip Sanghvi the civilian honour of Padma Shri in 2016. He founded and built Sun Pharmaceuticals in 1982.
This story of Dilip Sanghvi will inspire you and it will show you the up and downs of life, so stay with me :-
Dilip Sanghvi Early Life
So it all started from a small town when Dilip sanghvi was born on 1 October 1955. He was born in Jain family in the small town of Amreli in Gujarat. He spent his childhood and college life with his parents in the Burrabazar locality of Calcutta.
Dilip Sanghvi completed his schooling from J. J. Ajmera High School following which he graduated from Bhawanipur Education Society College. He then proceeded to earn a Bachelor of Commerce degree from the University of Calcutta.
What was the journey of Dilip Sanghvi after studies?
So after completing his journey of school and college life. His professional journey began.
After completing studies Dilip Sanghvi started helping his father in his wholesale generic drugs business in Kolkata as a drug distributor. One fine day came when he thought that why not I should start my own manufacturing of drugs instead of selling other products.
And that was the time when he started Sun Pharmaceuticals Industries by borrowing Rs 10,000 from his father. And in 1982 he established Sun Pharma in Vapi, Gujarat.
Start of Sun Pharma
Dilip Sanghvi started Sun-Pharma with a two-man marketing team and a small manufacturing facility where only five psychiatry products were produced.
Dilip Sanghvi set up his first unit at Vapi in Gujarat, with few number of psychiatrists and so it would be easier to reach out to them rather than sell to a whole lot of general physicians, which would require a large field force.
And with one goal in mind Sun Pharma, from the very beginning, has focussed on the high-margin chronic care therapy products which have made the company very profitable this time.
Wrong Decision of Sanghvi
In 1987 Sun, bought Caraco Pharma for $50 million a loss-making American Company with the vision of expanding Sun in US(United States) and took over.
Initially, the Caraco takeover seemed to be a wrong move which became hurdle for Sun Pharma that time, and the Sun management perhaps miscalculated the timelines required to sort out some of the US FDA issues that Caraco faced.
But this Wrong decision became vision
Sometimes we have to make our wrong decision a mission to recreate it as right decision.
Rise of Sun Pharma and Dilip Sanghvi
However, Sanghvi managed to stabilize Caraco and finally Caraco started making money. After that company managed to develop according to new era. The company did IPO in 1994, and expanded its sales network across 24 countries in 1996.
When Sun Pharma acquired Tamil Nadu “Dadha Pharma” it gained entry into the oncology space; with Milmet Labs they acquired expertise in ophthalmology.
After Sun’s takeovers on Valeant and Able Pharma it takeover the controlled on substances segment.
In 2007 Sun bought acquisition of Israel-based Taro also a loss making company for an enterprise value of $454 million. The $300 million generics player, which has a subsidiary in Canada, is a strong contender in the dermatology segment which accounts for more than 50 per cent of its revenues.
How Sun Pharma became biggest pharma in India
Sun Pharma stood second in the India’s Most Reputed Brands in Pharmaceutical list in a study conducted by BlueBytes.
In April 2014, Ranbaxy, and Daiichi Sayko (the majority shareholder in Ranbaxy) agreed that Sun would acquire all outstanding shares of Ranbaxy for $3.2 billion in Sun stock and that Sun would take on $800M in Ranbaxy debt; the deal closed in March 2015.
After this acquisition of Ranbaxy, Sun Pharma has become the largest pharmaceutical company in India, the largest Indian Pharma company in the US, and the 5th largest generic company worldwide.
When Sun Pharma first started selling its products on a national scale, way back in 1987, it ranked a low 108 on the ORG list. Today, with a Market Capitalization of 1,20,998 Crore and a Domestic market share of 3.7 percent, it is ranked number one. The numbers tell the story: whether it’s building a profitable business or creating wealth for his shareholders, Dilip Shanghvi’s has done a great job.
Recently about Dilip Sanghvi
Today Dilip Sanghvi is the 12th richest person in India with a net worth of US$6.9 billion. India Today magazine ranked him 8th in India’s most powerful people of 2017 list.
In January 2018, the Indian government appointed Shanghvi to the Reserve Bank of India’s 21-member central board committee. He is chairman of the board of governors at IIT Bombay. He was made a trustee of the Rhodes Scholarship programme at Oxford University in 2017.
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