IM Project on

The Saga of Globalization of Indian

Brand

Submitted by:-

Ashish Chatrath

Corporate Profile
Ranbaxy Laboratories Limited, India's largest pharmaceutical company, is an integrated, research
based, international pharmaceutical company, producing a wide range of quality, affordable
generic medicines, trusted by healthcare professionals and patients across geographies. The
Company is ranked amongst the top ten global generic companies and has a presence in 23 of the
top 25 pharma markets of the world. The Company with a global footprint in 49 countries,
world-class manufacturing facilities in 11 and a diverse product portfolio, is rapidly moving
towards global leadership, riding on its success in the world’s emerging and developed markets.

Key Dates:
• 1962: Ranjit Singh and Gurbux Singh incorporate Ranbaxy to market pharmaceuticals in
Amritsar, India, and borrow funding from moneylender Bhai Mohan Singh.
• 1966: Bhai Mohan Singh takes over Ranbaxy in lieu of repayment of the loan.
• 1967: Son Dr. Parvinder Singh joins the company, which begins producing generic drugs.
• 1969: Calmpose, a Valium generic, is launched, becoming the company's first success.
• 1973: Ranbaxy goes public and builds new API chemicals facility in Mohali.
• 1977: The Company begins production in Lagos, Nigeria through a joint venture.
• 1983: The Company opens a dosage plant in Dewas.
• 1987: The Company builds a state-of-the-art API facility in Toansa in preparation for
entry into the U.S. market.
• 1988: The Toansa facility receives FDA approval.
• 1992: The Company launches a joint marketing agreement with Eli Lilly.
• 1993: A joint venture is launched in China; a new research-driven NCE and NDDS
strategy is launched.
• 1994: The Company opens a new research and development facility in Gurgaon, India.
• 1995: The Company acquires Ohm Laboratories in the United States and builds a new
FDA-approved production facility.
• 1998: Ranbaxy begins marketing its own branded drugs in the United States; the
company launches clinical trials on the first in-house developed molecule.
• 2000: Ranbaxy acquires Basics, Bayer's generics business in Germany; the company
enters Brazil.
• 2003: Ranbaxy successfully completes the first NCE phase I clinical trial; the company
acquires RPG (Aventis) in France, becoming the leading generics manufacturer for that
market.
• 2005: The Company launches a new $100 million production facility in Brazil.

Vision & Aspirations

The Company is driven by its vision to achieve significant business in proprietary prescription
products by 2012 with a strong presence in developed markets. It aspires to be amongst the Top 5
global generic players and aims at achieving global sales of US $5 Bn by 2012.

Manufacturing Facilities
An organizations capabilities and intent are strongly reflected in the product it manufactures. In
other words, the manufacturing competencies and facilities echo truly, the R&D extent and the
ability to implement it for the best of the market it targets. RANBAXY® possesses the
manufacturing strengths that have established it as a producer of world-class generics, branded
generics and a major supplier of its range of Active Pharmaceutical Ingredients for
pharmaceutical products of companies worldwide. Ranbaxy has world-class manufacturing
facilities in 11 countries namely Brazil, China, Ireland, India, Japan, Malaysia, Nigeria,
Romania, South Africa, USA and Vietnam. The Ranbaxy’s manufacturing facilities for the
compliance with international Good Manufacturing Practices and have registered its products for
safety, quality and efficacy.

Strategy
Ranbaxy is focussed on increasing the momentum in the generics business in its key markets
through organic and inorganic growth routes. It continues to evaluate acquisition
opportunities in India, emerging and developed markets to accentuate its business and
competitiveness. The Company’s growth is well spread across geographies with near equal
focus on developed and emerging markets. Ranbaxy has entered into new speciality
therapeutic segments like biosimilars, oncology, peptides and limuses. These new growth
areas will add significant depth to its existing product pipeline.
 R&D
Ranbaxy views its R&D capabilities as a vital component of its business strategy that will
provide the company with a sustainable, long-term competitive advantage. The Company
today has a pool of over 1,200 scientists engaged in path-breaking research.
Ranbaxy is among the few Indian pharmaceutical companies in India to have initiated its
research program in the late 70’s. To support its global ambition, a first of its kind world class
R&D centre was commissioned in 1994. Today, the Company’s multi-disciplinary R&D
centre at Gurgaon, in India, houses dedicated facilities for generics research and innovative
research. The Company’s robust R&D environment for both drug discovery & development
reflects the Company’s commitment to be a leader in the generics space and offer value
added formulations based on its Novel Drug Delivery System (NDDS) and New Chemical
Entity (NCE) research outcomes.
Ranbaxy has enhanced its focus on NCE research with the proposed De-merger of its New
Drug Discovery Research (NDDR) unit into a separate entity, Ranbaxy Life Science
Research Ltd, subject to requisite approvals. This significant step will open up new growth
opportunities and provides a platform for increased collaboration.
The new drug research areas at Ranbaxy include anti-infectives, inflammatory / respiratory,
metabolic diseases, oncology, urology and anti-malaria. Presently, the Company has 8-10
programs comprising one anti-malaria molecule in Phase-II clinical trials. The Company has
two programs in Phase I and the remaining in the pre-clinical stage. This includes a
collaborative research program with GSK.
The company's NDDS focus is mainly on the development of NDA/ANDAs of oral
controlled- release products for the regulated markets. The Company’s first significant
international success using the NDDS technology platform came in September 1999, when
Ranbaxy out-licensed its first once-a-day formulation to a multinational company.

World wide operation

Ranbaxy’s global footprint extends to 49 countries embracing different locales and cultures to
form a family of 51 nationalities with an intellectual pool of some of the best minds in the world.

Africa, Europe, India, North America, Latin America, Global API, Asia Pacific, CIS,
Global Consumer Healthcare and Middle East and Sri Lanka
India: Strong brand building capabilities, reflected in the fact that 20 brands feature in the “Top-300
brands of the Industry” list. The leading 5 brands are Sporidex (Cephalexin), Cifran (Ciprofloxacin), Mox
(Amoxycillin), Zanocin (Ofloxacin) & Volini (Diclofenac)

North America (Canada): Ranbaxy in Canada is currently ranked at No. 9 amongst the generic pharma
companies, in terms of sales and market share.

 Lead Molecules:Ciprofloxacin and Domperidone

 Presence in Therapeutic Segments Diabetes, Anti-infectives, Cardiovasculars and CNS
North America (USA): Ranbaxy Pharmaceuticals Inc. (RPI), a wholly owned subsidiary of Ranbaxy
Laboratories Limited, established operations in the USA in 1994, and began marketing ANDA approved
generic products in 1998 after receiving FDA approval for Cefaclor, a broad spectrum anti-infective agent

Brand Product Marketing

The Brand Marketing Team is the functional area which is focused primarily on developing and
establishing different strategies for the promotion/ distribution of branded products as well as for the OTC
product offerings.

One of the key tasks for the team is to identify/look out for various opportunities in different markets or
channels of distribution and to pursue those opportunities to develop and establish new relationships in
the market. Managed care and mail order pharmacy are important areas that are being pursued to further
enhance the ever expanding product portfolio.

Latin America: (Brazil): Ranbaxy initiated is operations in Brazil , in November 2000 through its
majority-owned entity - Ranbaxy SP Medicamentos Ltd.

Globally, what does the Ranbaxy brand stand for today?

 It stands for high quality, integrity and affordability.

Global Branding for the New Century

Ranbaxy made good on its mission—by the middle of the next decade, nearly 80 percent of its
sales came from outside of India. As a first step, the company launched a new joint venture, in
China, backing its entry into that market with a production facility in Guangzhou. The following
year, the company established subsidiaries in London, England, and in Raleigh, North Carolina.
In 1995, the company stepped up its U.S. presence with the purchase of Ohm Laboratories Inc.,
which gave the company its first manufacturing plant in that market. Ranbaxy then launched
construction of a new state-of-the-art manufacturing wing, which, completed that year, gained
FDA approval.

This new facility enabled Ranbaxy to step up its presence in the United States, and in 1998 the
company began marketing its generic products under its own brand name. That year, in addition,
the company filed an application to begin Phase I clinical testing on its first in-house developed
NCE. The following year, the company's NDDS efforts paid off as well, when Bayer acquired
the rights to market Ranbaxy's single daily-dosage ciprofloxacin formulation.

Ranbaxy's international expansion continued as well, with the launch of marketing operations in
Brazil. As the largest pharmaceuticals market in Latin America, that country was the cornerstone
of the company's plans to expand throughout the region. Ranbaxy also expanded in Europe, with
the agreement in 2000 to acquire Bayer's Germany-based generics business, Basics. The
company also added production plants in Malaysia and Thailand.

Principal Subsidiaries
Basics GmbH (Germany); Gufic Pharma Ltd. (98%); Ohm Laboratories Inc. (United States);
Ranbaxy (Hong Kong) Ltd.; Ranbaxy (Malaysia) Sdn. Bhd. (56.25%); Ranbaxy (Netherlands)
B.V.; Ranbaxy (S.A.) Proprietary Ltd.; Ranbaxy (UK) Ltd.; Ranbaxy Do Brasil Ltda.; Ranbaxy
Drugs and Chemicals Company; Ranbaxy Drugs Ltd.; Ranbaxy Egypt Ltd.; Ranbaxy Europe
Ltd. (United Kingdom); Ranbaxy Farmaceutica Ltda. (Brazil; 70%); Ranbaxy Fine Chemicals
Ltd.; Ranbaxy France SAS; Ranbaxy Ireland Ltd.; Ranbaxy Nigeria Ltd. (84.89%); Ranbaxy
Panama, S.A.; Ranbaxy Pharmaceuticals Inc. (United States); Ranbaxy Poland Sp. z.o.o.;
Ranbaxy PRP (Peru) S.A.C.; Ranbaxy Unichem Company Ltd. (Thailand; 88.56%); Ranbaxy
USA, Inc.; Ranbaxy Vietnam Company Ltd.; Ranbaxy (Guangzhou China; 83%); Ranbaxy, Inc.
(United States); Ranchem Inc. (United States); Ranlab Inc. (United States); RanPharm Inc.
(United States); Rexcel Pharmaceuticals Ltd.; Solus Pharmaceuticals Ltd.; Unichem Distributors
(Thailand; 99.96%); Vidyut Investments Ltd.; Vidyut Travel Services Ltd.

Making Ranbaxy a Global Brand

The Indian pharmaceutical industry has long struggled with an international image that has
collectively labelled its members as trespassers of Intellectual Property Rights.

Even as the industry attempted to rid itself of this label, there were few who actually ventured
out to test their mettle with the best in the world. Ranbaxy Laboratories was one such company.
For nearly two decades, it has had its sights focussed outwards. The last 10 years saw this
spotlight intensified. Whether the world of pharma took India seriously or not, this company was
serious about its image as an “international” player and fought hard and long to improve its
perception.

Today Ranbaxy is amongst the top 10 generics companies in the world. It closed 2002 with
revenue worth $764 million, with more than 70 percent of this coming from international
operations. The lion’s share, or 38 percent, came from the United States alone.
With its sights now set firmly on becoming a research-based international player in
pharmaceuticals, Ranbaxy Laboratories’ CEO and Managing Director D. S. Brar is perhaps the
first Indian CEO who is virtually relocating to the United States. Having led a trail of expansion
that has resulted in operations in 25 countries, manufacturing facilities in seven and exports to
100 countries, Brar is at the helm of a rare but growing corporate breed: the Indian multinational.

The road has been long and arduous. When the CEO looks back, his eyes light up at the
successes. There is irrepressible emotion as he shares the pride displayed by a worker’s wife in
her expectation for flying the Ranbaxy flag high in the United States. Yet there is pain as he
recollects the struggle against the irrationality of the stigma attached to Indian companies in
pharma. He shows gritty determination as he talks about looking straight in the mirror to check
periodically if the corporate walk is matching the talk.

It has taken a lot of brainstorming, planning, meticulous execution and reviews. In the process,
the company has virtually institutionalised innovation. Ranbaxy has inventive thinking
entrenched deep into its business processes—be it the core area of innovative research, foreign
exchange management, management trainee programme or its annual budgeting and planning
exercise.

When did Ranbaxy brand first set its sights abroad?

 Ranbaxy has always been very outward looking as a company. Since the early days, Ranbaxy
have recognized that if 99 percent of the pharmaceuticals market lay outside India; tapping the
international potential was always something bigger than just meeting export commitments.

Therefore they developed a culture of internationalization through exports in the early 1980s
when they were very small. They had created their subsidiaries in Nigeria, Malaysia and
Thailand as experimental labs of their internationalization in the 1980s .

Company Perspectives
The Endeavour at Ranbaxy is to provide value. Value through pioneering work, research &
development and quality pharmaceuticals across the globe. Ranbaxy keeps alive this Endeavour
as it steps into the new millennium, and reaffirms its commitment to the environment, the people
and a healthier future.

Key Strengths
• Broad product portfolio.
• Strong distribution network including the largest and the most powerful generic sales
force in the Romanian pharmaceutical market.
• Strong product development and regulatory departments.
• Deep new product pipeline.
• Excellent R&D capabilities including world-class in-house bioequivalence facilities.
• Low-cost manufacturing

Branding-the FORTIS way

Fortis Healthcare, India was established in 1996 by the promoters of Ranbaxy Laboratories, among
the world's top 10 generic companies, also India's largest pharma company. Founded by the late
Dr. Parvinder Singh, the architect of Ranbaxy's growth, Fortis Healthcare, India is driven by the
founder's vision of "creating a world-class integrated healthcare delivery system in India, entailing
the finest medical skills combined with compassionate patient care".

From the pursuit of this mission emanates a passion to excel. At Fortis Healthcare we have
assembled the finest talents in medicine, be they doctors, nurses or technicians, and even
management professionals across a wide spectrum. Enabling them to deliver the highest quality of
healthcare are state-of-the art facilities and support infrastructure at each of our hospitals.

Fortis Healthcare India hospitals are benchmarked to International standards - achieving quality
through the relentless adherence to the protocols observed in some of the world's leading hospitals.

The hallmark of Fortis hospitals, distinguishing them from their contemporaries, is the 'patient-
centricity' that you will discern all over: in hospital design, services, programmes and most
significantly in the caring approach of our people.

The Fortis Healthcare circle of caring is fast expanding, spreading the name of Fortis Healthcare,
India... reaching out to distant communities, welcoming patients from beyond India's shores.

AIDS
Fighting the Menace
The AIDS epidemic today is unparalleled in the challenges it poses to the world and it is clearly
an issue that no one can address alone. Ranbaxy is contributing its might to the cause. As a
conscientious research-based pharmaceutical company, it has successfully introduced high
quality Bio-equivalent,single-dose and fixed dose generic Anti- retrovirals (ARVs) for
HIV/AIDS patients at affordable prices. Ranbaxy today offers the most comprehensive portfolio
of ARV medicines for the afflicted.

Making Treatment Even More Affordable

Ranbaxy has always been at the forefront in the attempt to make HIV treatment more affordable.
Taking this initiative to a new high, the Company has brought down the daily cost of therapy to
as low as 16 cents a day. Ranbaxy has committed to provide 19 ARVs at this price to UNITAID
& Clinton Foundation. Ranbaxy and Cipla have signed the agreement with the Former US
President Bill Clinton, during his visit to India, in December. With this agreement, Ranbaxy
hopes to reach out to many more people who are in need of ARV therapy.

US White House Partnership

Ranbaxy participated in the Pediatric ARV Formulation Task Force, a public/private partnership
under the US President’s Emergency Plan for AIDS Relief (PEPFAR), to help children with HIV.
Ranbaxy partnered with the US Government and other generic and innovator pharmaceutical
companies, and multilateral organizations such as UNICEF and UNAIDS. The initiative,
launched at the White House with First Lady Laura Bush, brings together a wide range of
expertise to develop much needed formulations for pediatric HIV/AIDS. The partners are
working to identify scientific obstacles to treatment for children, taking practical steps to address
key barriers by sharing best practices on the scientific issues surrounding dosing of ARVs for
pediatric applications, and helping develop systems for clinical and technical support to facilitate
rapid regulatory review, approval, manufacturing and availability of pediatric ARV formulations.
The Company’s ARVs have been used as mainstays in various large treatment programs by both
national and international NGO/Institutions with good results. The Company has a total of 12
ARVs on the WHO prequalification list and three approvals from USFDA for ARVs, making it
eligible for making supplies to the US funded PEPFAR program. Commenting on the effort Mr.
Malvinder Mohan Singh, CEO & MD, said, “Ranbaxy has devoted significant resources and
research to pediatric HIV/AIDS drug development, which places us in an excellent position as a
contributing member to the Pediatric ARV Formulation Task Force. We’re proud to contribute in
this meaningful effort.” A Special Formulation for Children For the first time in the world,
Ranbaxy has introduced a triple ARV combination for children. In August 2006, the company
received approval to manufacture and market Triviro-LNS kid and Triviro-LNS kid DS,
dispersible tablets, in India. The company has also filed the product with WHO Geneva for pre-
qualification. Currently, children have to either combine different liquid formulations or crush
adult doses. Both methods are cumbersome and may not give the precise dosage. With these new
formulations, Ranbaxy provides children with a much needed convenient dosage form. The
tablets are scored to provide dosage options depending on the child’s weight. The pleasantly
flavored distabs will go a long way to ensure compliance among children.

Strategy of Ranbaxy to make its overseas foray a success?

Ranbaxy's ability to produce generic medications at far lower cost than its branded competitors
placed the company in a strong position for international expansion, especially in less developed
markets.
In 1993 they did some soul-searching as an organization. This was not what aspired for.
Spending six to eight months studying what Ranbaxy really wanted to be. This led to the coining
of their Vision 2004-07, and the mission statement that they wanted to become a research-based
international pharmaceutical company. This has three clear elements to it.

 First, pharmaceutical signified that the company will not look at diversification into
unrelated or even related areas and it will stick to its core area of pharmaceuticals.
 Second, it stated their intent to be an international company. This implied a focused and
rapid expansion into foreign countries.

 Third, it clarified that Ranbaxy, will be a research-based company, which meant that
Ranbaxy, will discover their own proprietary innovative drugs.
They will be a generics company to expand, but eventually their mission is to become a
research-based company, which meant in practical terms, investment in innovative
research.
They also set a vision of becoming a billion-dollar company in 10 years—from 1994 to
2004. At that time they were over US$ 100 million at the exchange rates prevalent then (around
Rs 31 to a US$).
This was the point when Ranbaxy also undertook made some basic changes in direction and
started becoming truly international. Investing in multiple subsidiaries, affiliates, joint ventures
and acquisitions, saw a pace of frenzy from about 1994 to 1998 and most of what we see of
Ranbaxy today—the infrastructure, the investment, the basic plans—were implemented in those
four to five years.
 Fourth, Ranbaxy advertisement: released in 2003, clearly state the mission and its
vision where it stated that: “Better sets the standards, innovation still remain the core-
competence of the brand. A research based company, internationally renowned for its
research and development of novel Drug Development System.
The message behind the campaign: to educate the consumers about the brand, which
is renowned for it innovative subjective matters.
Brand strategy: to educate the consumers about the brand and to clear its strong
intention of becoming a global brand.