Ananlysis Dr. Reddy's Lab

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Dr. Reddy’s Laboratory Ltd

Swapnil Gosavi
N Karimi
Padmanabham
MVS Prasad
P Ansari

1. Reasons for successful performance of Dr. Reddy’s can be described in 2 parts viz Pre FY 2000 Era and Post 2000 Era.

Pre 2000 Era

• Dr. Reddy’s formed a chemical based company named Dr. Reddy’s Laboratories to manufacture and supply active pharmaceutical ingredients to domestic drug companies by identifying a potential opportunity to do business in the chemical sector. This gave Dr. Reddy’s opportunities to popularize it s brand by formulating its own drugs to sustain in the highly competitive single product base market • To bypass the cut throat competition in domestic market, DRL seized the opportunity to venture overseas markets and formed another company named Cheminor Drugs Ltd to manufacture and bulk supply drugs (whose patents have expired) to pharma companies in US, Italy, Spain and Japan • After this extraordinary achievement of bein first Indian company to expand overseas, Dr. Reddy, formed four pillar based strategy comprising - product diversification, international expansion with branded formulation, & growth in Generic businesses. It was also well supplemented by efforts in building of capabilities in new drug discoveries to set required vision in front of the rapidly growing organization. This is considering the overall vision of Dr. Reddy himself who wanted not only acquire wealth but also quench his thrust of doing R&D in chemical sector. • While growing exponentially overseas, Dr Reddy’s maintained all major asset base in India to retain its cost leadership. This was one of the reasons DRL products were attractive overseas especially in US. DRL took the systematic approach and entered easier markets, where patent regimes were lose, like Eastern Europe, Latin America, South East Asia etc. Post this DRL focused on Russia, China, Brazil and Mexico for further growth • Till, 1993 DRL & Cheminor Drugs Ltd were having the image...
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