ATHARVA INSTITUTE OF MANAGEMENT STUDIES

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MITUL SHAH 33 VINEET CHINTAM 06 PARAS GADA 12 NIKHIL SOLANKI 39 SAGAR SAWAIKAR 30 NITIN KONDI - 19

DR. REDDY LABORATORIES Established in 1984, Dr. Reddys Laboratories (NYSE: RDY) is an emerging global pharmaceutical company. As a fully integrated pharmaceutical company, purpose is to provide affordable and innovative medicines through our three core businesses:

Pharmaceutical Services and Active Ingredients, comprising our Active Pharmaceuticals and Custom Pharmaceuticals businesses; Global Generics, which includes branded and unbranded generics; and Proprietary Products, which includes New Chemical Entities (NCEs), Differentiated Formulations, and Generic Biopharmaceuticals.

Products of the company are marketed globally, with a focus on India, US, Europe and Russia. Dr. Reddys conducts NCE research in the areas of metabolic disorders, cardiovascular indications, anti-invectives and inflammation. Strong portfolio of businesses, geographies and products gives us an edge in an increasingly competitive global market and allows us to provide affordable medication to people across the world, regardless of geographic and socioeconomic barriers. THE SUCCESS STORY The Patents Act, 1970 signaled the arrival of good times for the pharmaceutical companies. Soon after the Act was announced, hundreds of companies started reverse engineering of western pharmaceutical products. There was a virtual explosion in the pharma space, with entrepreneurs making most of this opportunity. This also beckoned a young researcher, Kallam Anji Reddy from a small village near Vijaywada. In 1974, the 34-year-old Reddy quit his job with the

government-owned Indian Drugs and Pharmaceuticals Limited (IDPL) to set up his own company and he called it Uniloids. Kallam Anji Reddy, chairman, Dr Reddy's Laboratories says that One of the reasons that he left IDPL was that he was doing all this hard work for a few rupees but if he become an entrepreneur there was import duty on all the imported drugs and if his technology is as good as western technology, then he could make money from day one. This is what compelled him to come out and start on his own." Small ventures prepared Anji for bigger things. While he worked on the manufacture of generic drugs, his real strength lay in research. In 1984, Dr Reddy pooled in all his resources and thrust himself completely into research and set up Dr Reddy's Laboratories (DRL) in Hyderabad. With an initial capital outlay of Rs 25 lakh (Rs 2.5 million), DRL started as a manufacturer of active pharmaceutical ingredients and soon it went out to surprise its competition by introducing branded formulations at half the prevailing prices. DRL decided to go public with an IPO of equity-linked debentures aggregating Rs 2.46 crore (Rs 24.6 million) in May 1986. In 1987 when he got approval from the United States Food and Drugs Administration, USFDA, to make Ibuprofen. This was again a giant stride on DRL's road to success. And this approval to make Ibuprofen opened a whole new world of opportunities for Reddy. In March 1997, it achieved its first breakthrough by licensing out an antidiabetes molecule to the world leader in diabetes drugs -- Novo Nordisk of Denmark. In fact, this small step taken by DRL proved to be a giant stride for the Indian pharmaceutical industry. The pharmaceutical industry went through an instant paradigm shift in its image from being known just as copycats to innovators.

 In 2000, he became the third largest pharmaceutical company in India but Reddy was keenly eyeing for much more -- beyond Indian shores. On the April 11, 2001, Dr Reddy's Laboratories was listed on the New York Stock Exchange. The issue was dubbed as the year's best performing American depositary receipt, or ADR. DRL moved to Germany in early 2006 and acquired Betapharm Arzneimittel one of the largest generic drug companies in Germany for Rs 2,250 crore (Rs 22.50 billion). It was the biggest every overseas acquisition by an Indian pharmaceutical company. DRL was now gearing up to become a global company with a presence in all the key markets of the world with a net worth of Rs 5,800 crore (Rs 58 billion). From Rs 25 lakh in 1984, DRL today is one of the most significant companies in the global pharmaceutical industry.