Caring For

Life
CIPLA : GLOBAL EXPANSION
STRATEGY
GROUP-6
Tushar Agarwal H002
Supriya Kirtiman H027
Kshitij Mittal - H037
Rupali Singhania H061
Nirati Ranjani Sinha -

INDUSTRY
OVERVIEW

- Indian pharmaceutical industry is highly fragmented

and has relatively low drug prices as compared with
the regulated markets
- It is sized at USD 34 billion in 2013-14
- strong growth trajectory over the past few years.
- The domestic formulations market is only 1.1per
cent of the global pharmaceutical market.
- Lower drug prices and lesser penetration of
healthcare, vis-a-vis developed markets, such as US
and Europe.
- India spends only3.5 - 4% of its total GDP on
healthcare (developed countries spend 10-13%)
- Exports are the cornerstone for growth with key
strengths of cost-competitiveness and advanced
process chemistry skills

Founded by Dr. K.A.Hamied as Chemical, Industrial & Pharmaceutical

Laboratories in the year 1935
Ciplais thethird largest player in the domestic pharmaceutical
industry, with a market share of 4.9 per cent as of March 2014
The company manufactures both active pharmaceutical
ingredients (API) and formulations with exports to around 170
countries
Ciplaisone of the largest manufacturers of anti-retroviral (AntiHIV)in the world.
Cipla's revenues grew strongly by close to22 per cent (y-o-y) in
2013-14, driven bya25 per cent (y-o-y) growth in exports
The company also offers services like consulting, commissioning, plant
engineering, technical know-how transfer and support

VISION

None shall be denied, to

make India self-sufficient in
healthcare

MISSIO
N

To be a leading global
healthcare company which
uses technology and
innovation to meet
everyday needs of all
patients

Timeline
India joined World Trade
Organization in 1995 and
amended its 1970 Patents Act
Demand for self-sufficient
and not to import

Basic chemicals
required for
pharmaceuticals

Entered drug
delivery market,
global generic
market

Cipla entered
Africa to sell
combination
of AIDS
drugs

1970 Indias
Patents Act
that gave
Cipla the
authority to
make generic
drugs

Established
1935

1944

1947

1970

1999

2001

2005
onwards

Timeline(ContdCommitment to
work with global
.)
partners
Sales increased
by Rs. 31 crore
Cipla decided to acquire
i-pill, top 300 pharma
product

Revenue tripled
Cipla supported
North Africa and
sub Saharan
regions

Cipla reverse
engineered in
developing markets
violating TRIPS as
against affordability

2006

Cipla had
strategic alliances
with Ivax and
Teva

2007

Merck ties up with Cipla

to sell HIV
drug(raltegravir) in
India

OTC portfolio
strengthened
with brands
like Lacto
Calamine,
Saridon,
Polycrol
antacid
2009

2010

CIPLA acquired
Medpro, South
Africa, distribution
partner

Company slashed prices

of 3 life saving cancer
drugs in SA by 50-64%

2011

2012

2013
onwards

Strengthened position
in South African market

Prahalads Value Creation Model

Bottom of Pyramid Framework

Private
Enterprise

Civil society and

local govt.

Economic
development
and social
transformation
BOP Consumers
and BOP
entrepreneurs

Sales
and
distri.
agenci
es

MARKET STRATEGY

Immensely
leveraged in
3rd world
countries.
Public
Cipla has
relied heavily
Private
on
Partner
partnerships
ships
to enter into
international
markets
Cipla develops,
manufactures and supplies
formulations while its
partner is responsible for
regulatory filings, legal
matters and marketing of
products

For the first time, the firm

is also looking outward
with regards to gain a front
line presence abroad and
also financing its RnD
projects and is open to
partnering, in licensing and
acquiring "pioneering
work"

Low Risk
partnership
model for
Exports to avoid
pricing
pressures

rategy Execution Steps

Cost Leadership
Price cutting to
management orientation
operation
Low risk partnership
model for export
business
PPP formations in 3rd
world
Evaluation of licensing
deals
Seek Front end presence
in developed countries
Seek external R&D
funding
Strategic alliances and
JVs

FUTURE GROWTH
STRATEGY

Home Markets
- Further strengthen
position in home
markets (India &
South Africa)

Global Markets
- Focus on developed
markets of U.S and
EUROPE
- Build a front-end
presence

R&D and
Innovation
- Cipla New Ventures
will identify
investment
opportunities and
acquire R&D
companies

Talent Pool
- Hire senior-level
talent and senior
professionals to
build capability in
international
markets

Product
rationalization
Focus towards
more lucrative
product portfolio