COMPANY ANALYSIS

MADE BY : N . Deepak Raaunak Kochar Shweta Madan

LI . R E S E A R C H . H O P E FE

Agenda
Company overview Key business Financial result Q2 FY 12 Corporate strategy Business strategy Competitors Resource based view Porters analysis PEST analysis SWOT analysis Kellers brand equity model Proposed strategy

Overview
The start (1984 1990)
1984 Established by Dr. Anji Reddy with initial capital of Rs 25 lakhs. Goes public listed in BSE Enters international market

1986

by exporting to Methyldopa

1988

Acquired

Benzex Laboratories

1990

Becomes first Indian Pharmacy industry to export Norfloxacin & Ciprofloxacin to Europe & far East

Overview
Expansion & Innovation(1991 1999)
1991 Formulation exported to Russia

1993

Established Dr. Reddy's Research Foundation. Drug Discovery program was started Dr. Reddy's Research Foundation filed first patent in the US Became first Indian company to outlicense an original molecule DRF 2593 (Balaglitazone) to Novo Nordisk

1995

1997

1999

Acquired American Remedies in India

Overview
Growing Globally (2000 Present)
2000 Cheminor Drugs (A group company) merged with Dr. Reddys Established Reddy US therapeutics in USA Acquired Roche's API business in Mexico Acquired Betapharm in Germany Became a AG partner Merck's Proscar & in the 2007 for Merck Zocor US Launched Reditux (Rituximab) the World's first monoclonal antibody biosimilar Entered into a strategic alliance with GSK for emerging markets Launched darbepoetin alfa in India under the brand name Cresp worlds first generic darbepoetin alfa and the only one in India

2005

2006

2007

2009/10

Key Business

Financial Results Q2 FY12

Corporate Strategy
Strategy: Leverage industry-leading science & technology, product offering and customer service to provide affordable and innovative medicines for healthier lives.

Affordability: High cost of medicine put them out of reach from many needy people. As global pharmacy company DRL takes responsibilities to help alleviate the burden of diseases on individuals. Through their global generics DRL provides high quality, low cost drugs which brings hope & health to people.

Innovation: Proprietary product business dedicated to discovering new or better treatments than currently existing. DRLs Custom Pharmaceutical

Business Strategy
Major focus on discovery of new chemical entities Focus areas : diabetes, anti-cancer, non-sterodial, anti-infectives, anti-inflammatories Progress licensed two anti-diabetes molecules to Novo Nordisk, five molecules in pipeline

Competitors

Resource based view

Porters forces

Porters forces

S U P P LI R P O W E R E
Low to Moderate High no of suppliers At times, use of single supplier as sole source for particular material Delay in supplying materials hampers their ability to deliver products

BUYER POWER
Moderate to High For generics and OTC drugs its high Need to keep buyers satisfied otherwise will risk to lose to competitors For some of the patented and Life saving drugs buyer power will be moderate

BARRIERS TO ENTRY
Moderate to High High no. Of legal procedures and licences High capital requirement for mfg, supply chain & R&D Patent issues Barriers are moderate in case of generics as R&D expenses

are low

Porters forces

TH R EAT O F SU B STI U TES T

Moderate to High For R&D intensive drugs threat is moderate For generics and off patent drugs threat is very high Alternative medicines like auyrveda, Unani posing threat Very High Generics , Very Low - R&D Intensive High competition across companies for generics Very less differentiation points in generics Price discounting and margin pressures in generics For patented drugs it acts almost as monopoly

COMPETITION

PEST Analysis

SWOT Analysis

Keller's brand equity

Stages of Brand Development Building Blocks Branding Objective at Each Stage
Intense , Active Loyalty

RELATIONSHIPS : What about you & me?

Resonance

RESPONSE : What about you? Judgments Feelings

Positive , Accessible Reactions

MEANING : What are you? Performance Imagery

Points - of Parity & Difference

IDENTITY : Who are you?

Salience

Deep , Broad Brand Awareness

Proposed strategy

Recommended strategies for Indian markets

Focus on Chronic therapy market since the growth in chronic therapy is approximately 20% Identify merger and acquisition opportunities with robust product pipeline Increase presence in the rural markets Huge opportunity

Recommended Strategies for Overseas market

Focus on markets other than the US Emerging markets like Africa provide a huge opportunities Tie up with other players to reach these emerging markets