Dr Reddy’s Laboratories – Flying High and Well

There are a few Indian companies, which are GLOBAL Companies in the truest sense of the world. And Dr Reddy’s Laboratories happens to be one among them. It is a company which has set new highs in the annals of Indian Pharmaceuticals Industry and has set many firsts in indigenous medicines of which it can truly be proud of. It has propelled Indian Pharmaceutical industry into a force in the global markets and made us all feel proud. And instead of wallowing in the past glory, it is successfully forging ahead, looking ahead with tremendous optimism and feels completely confident of doing full justice to the same.

Brief History

Dr Reddy’s Laboratories is the brainchild of one man Dr K ANJI REDDY who had the vision, the daring, the resolve, the spirit and above all immense self-confidence to transform a small entity into a global powerhouse that it is today. His inquisitive, spirit of entrepreneurship led to the formation of the company back in the year 1984. Success did not come easily to this company and had to battle its way through numerous obstacles. It did the same with poise and lots of patience and none can begrudge its tremendous worth and brand name today.

It is applauded for innovative products which are life saving and most importantly affordable to the common man, the same of which can be made out from the fact that its medicines are just a mere one-fifth of the international market rates.

Not content with sticking to just two or three areas it has striven forward confidently. Expanding its base, it has taken over “American Remedies Ltd” and merged its group company “Cheminor Drugs” with its arm. This has given it the foothold to put its capabilities and vast resources into other segments and become a global company, in the real sense of the word.

Its terrific self-worth can be made out from the fact that its capabilities range from base research to finished dosages to generics to bulk actives to biotechnology and diagnostics.

Company Philosophy

The company believes in producing safe and innovative products and making the world a healthier place to live. For with good health, comes hope. Towards this end it firmly believes in deployment of cutting–edge research which spawns breakthrough in pharmaceutical solutions, which in turn sustains life.

Specialties

• Not one to feel shy and proceed on a tough path, the company has embarked upon sponsorship of research into drugs formulation to battle two of mankind’s deadliest diseases —Cancer and Diabetes. It is the first Indian company in licensing a molecule for clinical trials to a Multi National Company.
• It looks ahead confidently with its drug discovery programme poised at an ideal stage with three molecules at different stages of clinical trials plus several others waiting in the wings.
• The company is currently ranked fifth in the domestic market in Branded Formulations. In addition to this, the company has a notable presence in the overseas market in over 30 countries and aims to enter emerging markets.
• Generic Formulations is expected to witness a significant rise in the near future and a many products in well-regulated markets are set to go off-patent. The company is well entrenched with its low cost products of good quality.
• The company with a little over two years entry into Critical Care Business, is on its way to become the second largest company in India in oncology segment.
• Bulk Archives are expected to record a good expansion in the coming years and has caught the company eye. In this regard, it has hit upon the strategy of delivering custom specific value-added services.
• Another area which is motivating Dr Reddy’s Lab is Custom Chemical Synthesis —a business which is driven by the twin power of trust and a close partnership with the customer. The company is fuelled by the lure of becoming a service provider by choice to its customer.
• It feels encouraged by the fact that it possesses over fifteen years of expertise in process research and is aided by its pool of its highly skilled scientists, advanced analytical equipment, C CGMP infrastructure and facilities to move up from milligrams to metric tons.
• Bio-Technology is the hot technology of the day. In less than 3 years, the company, aided by its team of dynamic scientists, has developed protein therapeutics ranging from molecular cloning and fermentation to process development and production.
• It has a large manufacturing unit, which confirms to international regulation standards and produces top class diagnostic products.

A clear study of the above inputs gives one a definite and a clear picture about the company’s many multi-faceted focus areas and strong points.

Achievements

Dr Reddy’s Laboratories has many spectacular achievements to its credit and the same are highlighted below and will give one a clear idea of its exalted status.

• In 1984, it began its entry into the world of medical business with a capital outlay of Rs 25 lakhs.
• In 1986, it crossed the Indian frontiers and well into international market with exports of a drug called “Methyldopa”.
• In 1987, it procured its first USFDA approval for a drug called Ibuprofen.
• In 199, it became the first Indian drug company to develop new molecules and also exported NORFLOXACIN and CIPROFLOXACIN to the developed Europe and the Far East.
• In 1993, Dr Reddy’s Research Foundation is established.
• In 1994, it went for US$ 48 million GDR issue and foundation stone was laid for a generic formulations facility, which meets the needs of highly regulated markets.
• In 1995, it set up a subsidiary in Hong Kong and a JV in Russia. Also the merger of its group company Standard Equity Fund with it took place.
• In 1998, it licensed its anti-diabetic molecule, DRF-2593 to Novo Nordisk for clinical trials and upfront payments, establishing a milestone in payments and royalties.
• In 1999, it acquired a Chennai based company “American Remedies Ltd.”.
• It signed off the old millennium in glory when it became India’s third largest pharmaceuticals company thanks to merger of American Remedies Ltd and merger of Cheminor Drugs Ltd.
• It began its tryst with the new millennium in a spectacular manner by becoming the first Asia Pacific pharmaceutical company outside Japan to be listed on the famed New York’s Stock Exchange.

Export Details

Dr Reddy’s Labs has done INDIA proud with its impeccable record despite the odd hiccups here and there. Its drug exports touches the shores of 60 countries around the world and has brought cheer and relief into the lives of their residents. Its strong export areas are bulk drugs and formulations at affordable rates. Some of its drugs like Norfloxacin, Ciprofloxacin and Enrofloxacin possess a wide customer base. Added to this, some of its other drugs like Nise, Omez, Enam, Stamlo, Stamplo Beta and Ciporlet are rated as being popular in India and other developing nations.

It has a fine tuned and well-coordinated marketing team, which has done a fine job in popularising the above drugs in the highly competitive global market.

Factors responsible for Company’s Success

DR Reddy’s Labs believes in the norm of quality and TOP QUALITY at that. Nothing less, than its products confirming to stringent quality standards satisfies the company. Towards this end the company has the enviable distinction of having accreditations from all the international regulatory authorities. In addition to this, the company’s Bulk Archives manufacturing plants possess the approval of USFDA.

It has also been successful in getting ANDA and Dossier approvals in the high niche generics markets. The quality monitoring aspect has also been made possible with support from its implementation of “Quality Management Concept” through SAP R/3. This path breaking ERP product has helped it to sustain product quality, on-time delivery and pricing. The excess overheads have been done away with and near perfect information made available at fingertips. The company has also adopted Just-in-time (JII) system for packaging components.

The employee motivation level at Dr Reddy’s Labs is excellent and each and every one of the employees are geared up to perform better and better thereby infusing a bigger dose of performance level which out-beats the previous one. A number of programmes are arranged by the company, which enhances employee’s personal and professional status. A good example of one such programme is the Management Development Programme, which psyches each employee, to do better, in the bargain identifies, motivates and develops a team of high performers. In other words, it encourages employees to give their best and move up the ladder to leadership roles. Another excellent brainchild of the company is ANKUR a learning centre that focuses on knowledge management and self-development.

In this way the company encourages its employees to think out new ideas, experiment with them and thereby take risks in the bargain. No wonder the company has been such a success. Success does not come on a platter with such a large team of employees scattered at various places. It comes only when the employee is given a free hand of course within the limits to outdo oneself. This is what Dr Reddy’s Labs has been able to do so and that too with enormous success.

Social Achievements of the Company

The company’s founder Dr K Anji Reddy having achieved so much success in his professional as well as personal life, making a fortune for himself believes in giving back something to the society at large. And by this enhance the quality of the lives of the people. The work is carried out under the aegis of Dr Reddy’s Foundation for Human and Social Development. It has several programmes under its wings, which focuses upon the dark side of people’s lives and snuff them out so as to bring out their good aspect for the betterment of society.

A classic example is Clothes Bank, which touches upon the basic needs of clothing among slum dwellers. The other two fine programmes are the Child and Police Project in which the company collaborates with the Police Department to do away with the menace of Child Labour and in the bargain offer children a smile on their lips and that something called DIGNITY. The other good programme is the Livelihood Advancement Business School, which aims to tackle the problem of urban poverty and empower able, bodied youth with belief in themselves.

Future Plans

The company is not content with sitting on the laurels earned so far. It looks ahead and does so with confidence and immense belief in itself. Its main goal is to join the ranks of the global pharmaceutical giants. And hopes to do the same with a slew of measures such as focus on talent development and cultivation, application of IT, improvements in operations through initiatives in supply chain plus knowledge management.

Board of Directors

Whole Time Directors

• Dr K Anji Reddy, Chiarman
• Dr B V Prasad, Vice Chairman and Chief Executive Officer
• Mr Satish Reddy, Chief Operating Officer

Independent and Non Whole Time Directors

• Dr Omkar Goswami
• Mr P N Devarajan
• Mr Ravi Boothalingam
• Dr P Satyanarayana Rao
• Dr A Venkateswarlu
• Dr V Mohan

Corporate Office

Dr. Reddy's Laboratories Ltd.
7- 1 - 27 Ameerpet Hyderabad 500 016.
India
Phone: +91-40-3731946
Fax: +91-40-3731955
e-mail: drg@drreddys.com

Media

Anuradha Altekar / R Rammohan
Corporate Communications
Phone - 91-40-6511725
Fax - 91-40-6511621
email - anuradha@drreddys.com / rammohanr@drreddys.com