Alembic Pharma: One of the oldest generic medicine producer

Shalini Rath

Nov 27, 2022 — 8 min read

Alembic Pharma Logo

Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Alembic Pharmaceuticals.

Pharmaceutical manufacturing goes through many stages before producing a single medicine. This industry is by far one of the most successful industries of today. The success rate of these pharmaceutical manufacturing has resulted in outstanding progress in the medical world.

With its headquarters in Vadodara, Alembic Pharmaceuticals Ltd. is a global pharmaceutical firm based in India. Founded in 1907, Alembic Pharmaceutical produces pharmaceutical goods, pharmaceutical ingredients, and pharmaceutical intermediates. It is also referred to as the market leader in India's macrolides anti-infective medication category. Alembic Pharmaceuticals belongs to the Alembic Group, which was founded by Prof. T.K. Gajjar, Prof. Kotibhaskar, and B. D. Amin.

Learn all about Alembic Pharmaceuticals' success story, its startup story, mission, and vision, and its business and revenue model.

Alembic Pharmaceuticals - Company Highlights

Headquarters	Mumbai, India
Sector	Pharmaceuticals, Healthcare
Type	Public
Founder	Prof. T.K. Gajjar
Founded	1907
Revenue	Rs 3131 crores
Parent Organisation	Alembic Group
Website	www.alembicpharmaceuticals.com/

Alembic Pharmaceuticals - About

Alembic Pharmaceuticals Ltd. works on the production and marketing of Indian formulations, active pharmaceutical ingredients, international generics, and pharmaceutical intermediates. The company's corporate office and headquarters are located in Vadodara, Gujarat, India, while its production facilities are spread out between Sikkim and Panelav, both in Gujarat. Active pharmaceutical ingredients (APIs) and formulation production are handled by its Panelav factory, while formulation production for India and unregulated export markets are handled by its Sikkim plant. Recently, the company's production capacity was increased by the addition of three new plants for oral solids and injectables for cancer, general injectables, ophthalmology, and oral solids, bringing the total to six state-of-the-art facilities that epitomize manufacturing excellence.

Alembic Pharmaceuticals is among the most reputable suppliers of specialty medications in India for a range of acute and chronic treatments. In the domestic market, it provides a range of high-quality items that address ten therapeutic categories. Alembic Pharmaceuticals is renowned for providing its customers with deliveries on time.

Alembic Pharmaceuticals' CSR initiatives

The Alembic CSR Foundation was founded in 2015 to uplift and strengthen communities across various areas of Education, Health, and Overall Community Development.

The company's plantation initiatives have resulted in 1,300 saplings being planted over the past 5 years in 4 panchayats of the Panchmahals district, including 100 saplings planted in Gopipura village during 2020-2021. Alembic's CSR foundation has built 242 domestic toilets in the Karkhadi and Pindapa panchayats in the Vadodara district as part of its sanitation activities. In the Vaseti Panchayat villages of Tajpura, Dadiyapura, and Shivjipura, it has also constructed 346 domestic toilets.

Alembic Pharmaceuticals - Industry details

Over the past two decades, India's pharmaceutical business has expanded at a compounded growth rate of 16% for exports and 11% for the domestic market.

Through 2025, the worldwide pharmaceutical industry is anticipated to expand at a 3-6% CAGR, with a projected market value of $1.6 trillion. This does not include COVID-19 vaccine investment, which is expected to total $157 billion overall through 2025.

Alembic Pharmaceuticals - Founder and Team

Alembic Pharmaceuticals is managed by Chirayu Amin, the Chairman & CEO of the company.

Chirayu Amin

Chirayu Amin is a multimillionaire businessman from India who also oversees cricket. Amin has guided the organization through the shifting demands of modern business while maintaining its legacy.

He got his MBA degree from Seton Hall University. Furthermore, Chirayu Amin served as the Federation of Indian Chambers of Commerce's chairman. Malika Chirayu Amin, his wife, has been listed by Kotak Wealth Hurun as one of India's wealthiest women in 2020.

Chirayu was also the Baroda Cricket Association's president. He has received the Federation of Gujarat Industries (FGI) Lifetime Achievement Award in January 2021. According to Forbes, Chirayu Amin's net worth as of May 2021 was US$1.8 billion.

Pranav Amin

Alembic Pharmaceuticals Ltd's Managing Director, Pranav Amin, is in charge of the division's global business operations. He is a graduate of Thunderbird University in the United States with an MBA in International Management and a degree in Economics/Industrial Management from Carnegie Mellon University in Pittsburgh, USA. Pranav Amin is considered a fantastic people leader who directs the company via participation, empowerment, and autonomy.

Alembic Pharmaceuticals - Startup Story

In 1907, Alembic Chemical Works, which is now Alembic Pharmaceuticals Ltd., began producing tinctures and alcohol at its Vadodara facility. The business subsequently started producing sulfur medications, vitamins, tonics, and cough syrups around the 1940s.

Additionally, Alembic started producing penicillin in the 1960s. Lal Bahadur Shastri, the Indian Prime Minister at the time, dedicated this Alembic factory to the production of penicillin in 1961.

The pharma company immediately started producing vitamin B12 in large quantities in 1967.

In the field of antibiotics, Alembic started producing erythromycin in India for the first time in 1971, not long after the manufacturing of penicillin was started. Alembic also created and introduced the erythromycin brand "Althrocin." Althrocin surpassed all other erythromycin brands in sales in India in 1997.

After a few years, Alembic got ISO 14000 accreditation in 2000 for its Vadodara plant. Following the distribution of 133,515,914 equity shares worth $2 each to the shareholders of Alembic Ltd. in 2010, Alembic Pharmaceutical Ltd. separated from Alembic Ltd. As a result, Alembic Ltd.'s ownership of Alembic Pharmaceutical decreased from 100% to 29.18%.

Alembic Pharmaceuticals Ltd.'s equity shares were placed on the Bombay Stock Exchange and the National Stock Exchange of India in 2011.

Around 2012, the company revealed the dermatology department in Indian markets with eight new products. In 2017, Alembic Pharmaceuticals based the manufacturing facility for Oncology medicines in presence of the then Hon'ble Chief Minister of Gujarat, Shri. Vijay Rupani.

Alembic gained a $250 million sales milestone in the USA front end.

Alembic Pharmaceuticals - Mission and Vision

Alembic Pharmaceuticals' mission is, "To improve healthcare with innovation, commitment, and trust."

The company believes that the four pillars of quality, capability, customer centricity, and diversity are the key enablers for its future growth.

Alembic Pharmaceuticals - Name, Tagline, Logo

Alembic Pharmaceuticals Logo

Alembic Pharmaceuticals - Business & Revenue Model

Alembic Pharmaceuticals Ltd. runs its business as a vertically integrated pharmaceutical company. Each of the company's business areas may benefit from the premium items in its varied range, which command greater margins.

Alembic deeply invests in developing a portfolio of specialized, specialist medications that offer chances for long-term revenue development. It takes advantage of its manufacturing and intellectual edge, through strategic acquisitions that offer prospects for internal product development and value enhancement.

Domestic Business:

Alembic offers products in 10 therapeutic areas including Cardiology, Orthopaedic, Ophthalmology, Nephro/Uro, Anti-Diabetic, Gynaecology, Gastrology, Dermatological, Anti-Infective, Cold, and cough with 185 brands in the market.
Most of its caters to several chronic and acute therapies and around 1,75,000 doctors in India.
It has two R&D centers situated in Vadodara (Gujarat), and Hyderabad (Telangana)
Alembic's formulation facility is located in Sikkim, Panelav, Karkhadi
Alembic's two brands are in the top 300
1.4% market share in the Indian pharma space
Alembic APIs are supplied to formulators in over 60 countries across the globe
Alembic has generated Rs 1,497 crores (2020-2021) in domestic business

International Business

Alembic is present in the US, Europe, Canada, Australia, Brazil, South Africa, and other markets
Offers diversified products in various therapeutic areas
The company has launched more than 90 products in the USA till now
It has one R&D facility in New Jersey, USA
Alembic generated around Rs 2,942 crores (2020-2021)
The company's international business grew by 62% in Quarter 1 FY21 on a Y-o-Y basis, this excludes the USA.

As per reports, Alembic spent around 12.4% of its revenue on R&D activities during 2020-2021 to upscale its generic business to the international markets.

Alembic Pharmaceuticals - Growth

Alembic Pharmaceuticals claims that it had enormous growth and a huge increase in market share for Azithral OSD. The company also established itself as a serious player on a worldwide scale since azithromycin was a crucial drug in the management of COVID-19. With a 30% market share of the domestic formulation market in India, it is one of the biggest makers of azithromycin.

The implementation of the Laboratory Information Management System (LIMS) in its plants to ensure smooth workflow and data tracking, as well as the Quality by Design (QbD) initiative to improve the safety and efficacy of its products, are just a few of the significant initiatives carried out by the company in the recent years.

Alembic Pharmaceuticals - Mergers and Acquisitions

During its 115 years of legacy, Alembic has acquired some renowned business operations. The year 2012 saw the announcement of Paragraph IV ANDA litigation between Alembic Pharmaceuticals and Breckenridge Pharmaceutical, Inc., and Pfizer about desvenlafaxine (Pristiq). Additionally, Alembic and AccuBreak Pharmaceuticals Inc. engaged in product development and license arrangement.

Alembic Pharmaceuticals and Ranbaxy Pharmaceuticals Inc. engaged in an out-licensing arrangement in 2013 to allow Alembic Pharmaceuticals to commercialize its medications in the USA. Later after one year, Alembic Pharmaceuticals entered into joint ventures with Adwiya Mami SARL Algeria through its wholly-owned subsidiary Alembic Global Holdings, expanding its business in Algeria. Besides this, Alembic also signed an exclusive contract with Novartis around 2015, expanding its business in Switzerland.

Here's the list of acquisitions made by Alembic Pharmaceuticals Ltd.:

Date/Year	Acquiree Name	Amount
March 29, 2022	Aleor Dermaceuticals	-
November 1, 2017	Orit Laboratories	-
2007	Dabur's non-oncology formulation business	Rs 150 crores

Alembic Pharmaceuticals - Funding and Investors

In a qualified institutional placement (QIP) on Thursday, Alembic Pharma collected Rs 750 crore from investors including Tata Mutual Fund, HDFC Life, Sundaram, Bajaj Life, and Nippon India Mutual Fund.

Alembic Pharmaceuticals - Awards and Achievements

Alembic Pharmaceuticals has won many awards and achievements, those are:

Excellent Efforts in Risk Management Award
Alembic Pharmaceuticals was listed in Forbes' 2016 list of "India's Super 50 Companies."
Job Safety Analysis (JSA) Finished as the first runner-up in Job Safety Analysis (JSA) at CII Industrial Safety Summit 2016
Gujarat Best Employer Brand Award -Recognised for the ‘HR Event of the Year’ and ‘Outstanding Contribution to the cause of Education at the Gujarat Best Employer Brand Awards 2017
Alembic Pharmaceuticals received the Thomson Reuters Top 50 Indian Innovators Award in 2015

Alembic Pharmaceuticals - Competitors

Below is the list of competitors of Alembic Pharmaceuticals:

Alembic Pharmaceuticals - Future Plans

Presently, Alembic Pharmaceuticals is establishing new capacities and funding R&D initiatives with more favorable risk-return profiles. In addition, its consumer interaction skills are driven by its US marketing team, who also assists them in adding more value. It further plans to take advantage of scale economies and guarantee an adequate supply for its clients by gradually investing in boosting capacity.

FAQs

Who is the CEO of Alembic Pharmaceuticals?

Chirayu Amin is the CEO of Alembic Pharma.

Is Alembic Pharma an MNC?

Yes, Alembic Pharma is an Indian Multinational Company based in Vadodara, Gujrat.

What is the rank of Alembic Pharmaceuticals?

Alembic Pharma ranks 18 in India in terms of market cap.

Is Alembic Pharma a public company?

Yes, Alembic Pharma is a public company.

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