Dr.Reddy's pharmaceuticals: A market analysis on the companys global operations and revenues across the globe
"One of the most aspiring and second largest pharmaceutical companies in India, Dr. Reddy's Laboratories Ltd. was founded in the year 1984 by Dr. Anji Reddy. The company headquarters is in Hyderabad, India. The company manufactures and markets Active Pharmaceutical Ingredients (API), finished dosages, biologics, medicines for ulcer, various kinds of antibiotics, analgesics, antidepressants and cardiovascular drugs. Dr.Reddy's pharmaceuticals is also involved with a number of research and development (R&D) works in the field of diabetes, carcinoma (cancer and its causes), various cardiac disorders, infections caused due to bacterial effect and inflammations. The company has also shown noteworthy existence in the field of biotechnology. The company today holds a part from the generics market of the United States, which is extremely rewarding and at the same time equally competitive. The company provides services mainly through its three business sectors, i.e., Global Generics sector, Pharmaceutical Services and Active Ingredients (PSAI) sector and Proprietary Products sector.
The company, in addition to being the largest producer and manufacturer of drugs in the local market, is also equally active in the international market. In the year, 2003 the total revenues generated from the international market was Rs 18 billion ($392 million), which was 64% of the company's total sale. Revenues generated from North America were 32% and that from Russia was 28%. The other markets, which contributed towards its total international sales, were the Asian market, African and South American markets. The company generated revenues worth $1.67 billion in the year 2011 with a net income of $248 million in the year 2010. Today the main competitors of the company are RPG Enterprises, GlaxoSmithKline Consumer Healthcare Ltd., East India Pharmaceutical Works Ltd., Cipla Ltd., Concept Pharmaceuticals Ltd., Khandelwal Laboratories Ltd. and Dabur India Ltd.
In the year 1970, new rules to reduce the health care cost in India opened up new opportunities for the pharmaceutical companies in the country. Encouraged by the emerging new market Dr. Reddy conceived the idea of setting up his own business. The outcome was his company in the 1970 wherein his business was to produce and market bulk actives, which is the fundamental element of drug compounds to various pharmaceutical companies. Dr. Reddy's Laboratories was later founded in the year 1984 through which he emerged into the business of producing copies. The company provided high-quality medicines at affordable prices at the appropriate moment. Keeping in mind the quality, the company took care of all the processes from the production of the API and providing the finished dosage report to the intended agencies. The acquisition of one of the Germany's fastest developing generic companies, Betapharm was an indication of the company advancing into a global organization and finally achieving its aim in becoming a billion dollar by 2008. "