MICRO LABS LTD.

Industry overview: Being one of the consistently progressing industries in India, the healthcare sector is
characterized as a highly competitive market with over 50,000 brands, involving 600+ registered marketing
companies. The majority of local players focused on low priced drugs, but some players like Micro Labs
concentrate on high quality, high price by reverse-engineering the drugs due to lack of a robust intellectual
property regime.

Current RBV Analysis of Micro Labs Ltd.

Resource Valuabl Rar Imperfectly Imitable Non-substitutable

Surana’s ability regarding drug’s chemistry Yes Yes Yes Yes
MD Dilip Surana’s business acumen Yes No Yes Yes
Strategic Business Units (SBUs) Yes No Yes Yes
Global trade focussed strategy Yes No Yes Yes

Pathway from RIN to VRIN resources

Below mentioned are some of the ways how Micro Labs gradually made its RIN resources valuable:
 Ghewar Chand Surana had a good amount of experience (about 10 years) in the distribution of
pharmaceutical drugs. He learned from his failures during his stint in distribution.
 He had an ability to pick up the chemistry of drugs, which helped him in exploiting the IP regime of
India by reverse-engineering the popular drugs and selling them in international markets.
 His son developed great business acumen, which was visible from how the company was running
debt-free.
 Micro Labs created Strategic Business Units (SBUs), one of the few companies in 1980s to have
those separately focussing on areas such as cardiology, neurology, dermatology and nephrology.
 All this helped the company to boost its revenue from Rs 30 crores in 1980s to Rs 2500 crores in
2014-15.