Mankind Pharma eyes turnover of Rs 3,400 crore
Mankind Pharma, which started off with an investment of Rs 50 lakh, has become the sixth largest pharma company with revenue of Rs 3,400 crore this year. RC Juneja, founder & chairman, Mankind Pharma, talks about the company’s growth, why it is not listed and delivering medicines at affordable prices. Q: What has been the journey of Mankind Pharma? A: Mankind Pharma was started with an investment of merely Rs 50 lakh and only 20 employees. Today, we are among the top five fastest growing pharmaceutical companies of India with an employee base of more than 10,000 and heading towards a turnover of Rs 3,400 crore. We aspire to aid the community in leading a healthy life through two parallel objectives: formulating, developing & commercialising medicines and delivering affordable & accessible medication that satisfies urgent medical needs. Our strong portfolio of businesses, geographies and products ranging from pharma to popular OTC & FMCG brands — Unwanted72, PregaNews, Kustody, Adiction, Gas-O-Fast, and Manforce condoms provide us the strategic benefits of integration that allow us to perform best in an increasingly competitive market. In 2010, Mankind launched its first overseas market, SriLanka and we are expanding the horizon in Vietnam, Philippines, Myanmar, African market, CIS and other regulated and semi-regulated markets by 2015. Q: What are the revenue projections for Mankind Pharma and its size in the industry? A: Mankind Pharma clocked revenue of Rs 2,900 crore for FY13-14. The company is aiming to clock Rs 3,400 crore for FY14-15. Mankind Pharma currently holds 6th rank in the pharma industry and is aiming to be among top three pharma companies by FY 2018. Q: What about manufacturing capabilities and R&D plans of the company? A: At present, Mankind Pharma houses 15 state-of-the-art manufacturing units at Paonta Sahib in Himachal Pradesh. As regards research & development, the company started its R&D in the year 2011 with 15 scientists and now has a total of 150 scientists. The company has developed 100 formulations and 20 API (Active Pharmaceutical Ingredients) in addition with filing 10 patent applications & four publications. The company plans to enter the oncology segment by next year, coupled with bio-technology. Mankind Pharma is also entering into the cosmoseuticals industry segment in a couple of years. Q: How is the company differentiating itself from other pharma players? A: Mankind Pharma’s mission is to provide high quality medicines at affordable prices for healthier lives, with the business model spanning across three segments: generics, active pharmaceutical ingredients and OTC products. The company analysed that Indian companies' increase or hike their prices when the cost of active pharmaceutical ingredient (API) imported from other countries goes up. However, when API’s price falls, the prices of the medicines are not regulated or reduced. For example: This is the main reason why Mankind Pharma has been able to sell at a less than half its rivals cost, its antibiotic Moxikind CV was launched and selling for Rs 13 against competitors’ brands priced at approx. Rs 40. With a ‘Bottom to top of the pyramid’ approach, Mankind Pharma has been able to penetrate with affordable and easily available drugs in rural India’s small towns and villages, which had been neglected otherwise. According to IMS Health, a US-based firm that collects proprietary industry data, Mankind Pharma was present in every village in India that had 1,000 or more inhabitants in 2009, which contributed to 58% of the company’s revenue. We have the largest sales force in the sector for penetrating nook and corner of the country and manage a very low attrition rate at half the industry level. Q: What are the plans for listing and acquisitions? Mankind Pharma currently has no plans for listing and acquisitions until there is no pertinent brand value.