From scratch to $17.5 billion with Sun shining bright

Early life

       Yes. A person who started his pharmaceutical company in Vapi, Gujarat, now has net worth of whooping approximately $18 billion. Dilip Shanghvi was born in Amreli, a small village in Gujarat in 1955. He completed his bachelor of commerce from University of Calcutta and joined his father’s wholesale generic drug shop in Kolkata. During his work as a drug distributor, he thought of manufacturing his own drugs instead of selling others’ products. 

From Kolkata to Mumbai

        He borrowed 10000 rupees (amount same as Narayan Murthy borrowed from his wife Sudha to establish Infosys) from his father and came to Mumbai from Kolkata in 1982. In 1982, he started Sun Pharmaceuticals with 5 person and 5 products of psychiatry and capsules. Four years later, company started selling across India. In 1989, after launching a few cardiology products, Shanghvi began to export to neighbouring countries, and has never looked back. In 1991, he set up a research centre for his company. Sun pharmaceutical Advanced research company is first ever R&D company enlisted on Indian stock market. Three years later, Sun Pharma went in for an initial public offering.

Grow, buy, grow

       A large part of Shanghvi’s success can be attributed to his acquisition strategy. His first buyout was in 1996 when he acquired a drug manufacturing plant of Knoll Pharma in Ahmednagar, Maharashtra. The same year the company’s sales operations expanded to 24 countries.

The most notable of these acquisitions was a controlling stake in the Israeli drug maker, Taro Pharmaceuticals Industries, in 2010. Two successful purchases of US companies URL pharma and DUSA pharmaceuticals happened in 2012. These acquisitions strengthened Sun Pharma’s position in key markets such as the US, Israel and Canada. In 2014, Sun pharma acquired Ranbaxy. Now Sunpharma's 60% revenue comes from US market.

Acknowledgements

       Shanghvi is richest Indian who surpassed Mukesh Ambani from this title. He is among Asia’s top 10 wealthiest self made billionaire. He owns 60.8% stake in Sunpharma and 23% stake in world’s 5th largest wind energy turbine producer, Suzlon. In 2016, Dilip Sanghvi received Padma Shri honour from Government of India.