From a company with annual turnover of $400 million in 2007, the Ahmedabad-based pharmaceutical giant, Zydus Cadila, has become a $1 billion turnover firm in just seven years.
From a company with annual turnover of $400 million in 2007, the Ahmedabad-based pharmaceutical giant, Zydus Cadila, has become a $1 billion turnover firm in just seven years.
The company's turnover crossed the $1 billion (Rs4,500-crore) mark in 2010-11. With market capital of Rs16,379 crore, Zydus Cadila is today listed as Cadila Healthcare on Indian bourses.
An official statement released by the company says that it had ended the financial year 2010-11 on a high note with its revenues crossing the $1 billion-a-year mark. This estimate is based on the company's management information system, as the financial results are yet to be audited.
The pharmaceutical giant's journey to billion dollar turnover began in 2007, soon after it crossed its goal of posting a turnover of $400 million (from an annual turnover of just Rs200 crore in 1995). The company has now set its sights even higher and is aiming at an annual turnover of $3 billion by 2015. According to an official of the company, all this was planned three years back.
"The $1 billion turnover is not a bonanza. It is the result of systematically planned activity. Overall, huge rise in exports have contributed to a major jump in sales of the company," the official said.
Incidentally, Zydus Cadila is the third Ahmedabad-based firm to be part of the club of companies with $1 billion turnover. The other groups in this elite club are Adani Enterprises Limited with a turnover of $ 2.57 billion (Rs11,584 crore) in 2009-10, and Torrent Power with a turnover of $1.31 billion (Rs5,909 crore), also in 2009-10.
Zydus Cadila has also entered the exclusive club of Indian pharmaceutical companies with a turnover of $1 billion. It is now the fifth biggest pharma company in the country. The other top four companies are Cipla, Ranbaxy, GSK and Piramal Group.
In the official statement, chairman and managing director of Zydus Cadila, Pankaj R Patel, says that due to "an all-round effort", the company had succeeded in achieving this target.
"When we began our journey to the billion in 2006-07, we knew it would be a big leap forward. This has been the result of an all-round effort in terms of strengthening existing businesses, building new capabilities and venturing into new geographies. Our expansive vision continues as we move beyond the billion," he said.
Since 2007, when the company achieved an annual turnover of $400 million, Zydus Cadila's growth in key markets such as the US, France, Spain, Japan, Brazil and South Africa, contributed to its $1 billion turnover goal. The company has grown by more than 40% in the last four years. In the first three quarters of 2010-11, domestic sales contributed 52% while exports accounted for 48% of Zydus Cadila's total turnover.
With the company launching over 300 new products, including more than 60 first-in-India launches, the India formulations business has been the mainstay of the operations. The group focuses on women's healthcare, gastro-intestinal, respiratory and cardiovascular segments of the pharma sector.
Its forays into specialised areas like dermatology, nutraceuticals, hepatology and rheumatology with the setting up of new specialty divisions has helped the group make new inroads into the Indian drugs market. The most striking development that underscored the group's ability to respond swiftly to the demands of the market was the launch of VaxiFlu-S in 2010. VaxiFlu is India's first indigenously manufactured vaccine for swine flu.
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