The Structural

Evolution
of – Biocon

Case study presentation

MBA 2021-23
Foundation of Biocon
• Biocon Limited is an Indian biopharmaceutical company
that is based in Bangalore, India founded by Kiran
Mazumdar-Shaw in 1978.
• The company manufactures generic active
pharmaceutical ingredients (APIs) that are sold in over
more than 120 countries across the globe.
• Kiran’s initial capital was Rs 10,000/- .
• After banks refused to lend her money, she decided to
give Biocon a life in her garage in Koramangla.
• In November 1978, Kiran and an Irish entrepreneur, named Les Auchincloss
started a joint venture by manufacturing enzymes that are used for brewing.
• Later on they expanded their business by manufacturing enzymes for baking,
textiles, papers, biofuel, starch and fruit juices.
• The companies stakes were owned in the ratio of 70:30 by Kiran and Les
Auchincloss respectively.
• Biocon listed a market capitalizations of more than a million dollars in 2004.
• Biocon is the 1st biotechnology company to export microbial enzymes to U.S. and
Europe.
• Kiran has been entitled with India’s Biotech Queen and has been recognised
with 2 National Awards.
Organisational Growth of Biocon
• It was founded in November 1978 by Kiran Mazumdar-Shaw.
• In 1988, Kiran had approached for a loan to finance Biocons expansion.
• In 1989, the Chairman of ICICI Bank – Mr Vaghul, his bank sanctioned Rs
7,50,000/- for 20% stake in Biocon.
• In 1994, to provide efficient, high quality, cost effective research & development
they established Syngene and Clinigene as subsidiaries.
• In 2003, Biocon becomes the first company worldwide to develop human insulin
on a Pichia expression system.
• In 2004, Biocon went public and listed its initial public offerings (IPO).
Financial structure and Revenue distributions
• Though it was established with the capital amount of Rs 10,000/-, now listed among the market
capitalisation more than a billion dillars.
• The table in the previous slide shows the evolution of Biocon &
a constant growth and apparent Revenues in rupees (million)
Year R&D
organisation effectiveness. There Biocon Syngene Clinigene
are at least more 2 years to the
2004 4.2 5100 380 10
sustainability status to Syngene &
2005 3.3 6610 660 10
Clinigene
2006 5.2 6890 980 60
2007 4.9 8490 1320 90
2008 6.0 9120 1600 180
Stock performance
• The constant growth & with lots of profit.
• When compared to the other pharmaceutical company, Biocon has a rapid
growth in it’s stocks
• Biocon should look beyond Clinigene in the long term expansion
• Partnering with incubators and research centers.
• Continuously try to build a brand.
How the corporate and organisational structure will
look by 2030 ?
• Biocon has expanded and commercialised a different portfolio of novel biologics.
• Now the company’s shares have 52 weeks price band of INR 396.211 and a total
market capitalisation of INR 462 billion which makes it a large capital company.
• The shares have a price earning ratio of 61.96 and a dividend yield of 0.13%.
Biocon’s Growth expectations for 2030 :-
• Till the end of this decade, we expect that Biocon will emerge as best in their field
because of the development and manufacturer of life saving drugs which include
drugs for a diabetes, kidney, oncologic patients etc.
• They also try to develop some vaccines for the breast cancer people because of
all of that Biocon Ltd. which they can attain at the end of this decade.
• First share is around Rs 2589/- and the largest shares of Biocon is Rs 3432.
• Biocon Ltd will have a healthy liquidity position in market in the end of this
decade.
CONCLUSION
1. We learned about the foundation and establishment of Biocon.
2. We came to know how Biocon grew from being scratch to one of the most
money capitalized company in the corporate world.
3. The financial status and distribution of revenue at Biocon.
4. In this article we have done a detailed analysis about the growth expectation
and we are expecting that the financial growth of Biocon will sustain as like this
or more than this in future.
THANK YOU Smaraki Pattanayak ma’am for
guiding us..
 Team Members

RAJASHREE SUBHASHREE
T SIMRAN PATTANAYAK PATTANAYK
 RITUSHA SENAPATI
RAHUL PATRA
THANK YOU EVERYONE FOR
YOUR ATTENTION !