Biocon

The Entrepreneur (Kiran Mazumdar)

- Grew up in a middle class family in Bangalore.
- Couldn’t pursue dream of becoming a brewmaster, the profession was male-dominated.
- Went to the UK where she met L. Auchincloss (owner of Biocon) who offered her to
open the Biocon office in India.
- With the support of her parents and her strong character, she accepted.

Start of Biocon:
- Incorporated in Nov. 1978. Kiran had 70% and Auchincloss 30%.
- First BioTech company in India.
- Financed by Canara Bank thanks to personal contacts.
- Hiring staff and finding offices was very hard.
- Initial operations: extract enzymes for the UK office.

Growth of Biocon:

- 1st Phase:
o 1984, beginning of R&D efforts in other enzyme technologies.
o In 3 years, became a successful producer of sophisticated Koji enzymes.
o 1989: Unilever acquires BioCon UK and 30% of BioCon India.
o Kiran refused to sell her part in Biocon India.
- 2nd Phase:
o Biocon starts contract R&D (outsourcing) for US and UE firms.
o Biocon becomes independent entity: Kiran buys the remaining 30%
- 3rd Phase:
o Expansion into the Statins business is a success: 78% of revenues in 2000.
o Expansion into the clinical studies business is promising.
o Milestone in 2001: FDA approval in the US.
- 4rd Phase:
o In 25 years, evolved from enzymes producer to major Pharma company.
o 2004: 1ST biotech cie in Asia and #16 in the world by revenues.
o Successful IPO in 2004.
o All growth metrics are spectacular (sales, net profits…)
Characteristics of Kiran:

- Long term thinking to identify opportunities.

- Personal skills:
o Perseverance.
o Faith in her abilities.
o Pursuit of excellence.

Corporate culture at Biocon:

- Favorite employer for Indian scientific students:
o Delegation of work as a motivation tool.
o Intellectual freedom.
o Informal interaction encouraged.

- Advocates women rights:

o 50% of employees.
o Day care centre for children.

- CSR initiatives:
o Polio camps for children and Hepatitis B.
o Biocon foundation: affordable health services for the poor.
o Health services for rural families.
o Primary education for the poor and school equipment.
o Improve quality of life in Bangalore (garbage, clean water, roads)