Success Story of Cipla | How This Indian Pharma Company Became a Global Name?

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 Cipla Limited.

Pharma industries are one of the most crucial industries as they are considered the largest contributors to a country's economy. We know, that the pharma industries are responsible for creating several medicines. In India, pharmaceutical companies are growing at a rapid rate, which makes India among the top pharmaceutical exporting countries.

Pharmaceutical companies have made tremendous advancements in the field of biomedical science and offer numerous solutions to mankind with their innovative and effective medicines.

Cipla is one such Indian multinational pharmaceutical company that develops various medicines to treat different types of diseases. It was founded in 1935 and has its headquarters in Mumbai.

Read on to find out more about Cipla. In this article, you will come across Cipla's startup story, its founders, business model, revenue growth, challenges faced, awards achieved by Cipla, and more.

Cipla - Company Highlights

Cipla - About
Cipla - Industry
Cipla - Founders and Team
Cipla - Startup Story
Cipla - Name, Logo, and Tagline
Cipla - Mission and Vision
Cipla - Business Model
Cipla - Revenue Model
Cipla - Investments
Cipla - Mergers and Acquisitions
Cipla - Shareholding
Cipla - Online and Social Media Presence
Cipla - Advertisements and Social Media Campaigns
Cipla - Awards and Achievements
Cipla - Challenges / Controversies faced
Cipla - Competitors
Cipla - Future plans

Cipla - About

The Indian multinational pharmaceutical business, Cipla Limited is based in Mumbai. Founded by Khwaja Abdul Hamied in 1935, the pharma company focuses on creating medications to treat a variety of illnesses, including asthma, cardiovascular diseases, arthritis, diabetes, depression, and many others.

Cipla aims to never stop working to make sure that patients in need have access to high-quality, reasonably priced medications. For the past eight decades, medical professionals and patients worldwide have trusted Cipla because of this.

Care has been the cornerstone on which Cipla as an organisation has been constructed, brick by brick. The company has expanded its footprint to 80+ markets and provides more than 1,500 medications across numerous therapeutic categories in 50+ dosage forms. Currently, Cipla is expanding its footmark in key areas including India, South Africa, and the United States as well as other developing nations' economies in an effort to make healthcare more accessible globally. Cipla is also present in countries like - Kenya, Australia, South Africa, the USA, Europe, Malaysia, Morocco, Nepal, Sri Lanka, Uganda, and United Kingdom.

Cipla - Industry

The Indian pharmaceutical industry is the world’s 3rd largest by volume and 14th largest in terms of value. According to the Indian Economic Survey 2021, the domestic market is expected to grow 3 times in the next decade.

It is reported that India supplies around 20% of the generic medicines globally in terms of volume. As already mentioned, the Indian pharmaceuticals industry is among the top 10 for having the highest value of drugs and medicines during 2020.

Cipla - Founders and Team

Cipla Limited is founded by Dr. Khwaja Abdul Hamied in 1935.

Khwaja Abdul Hamied

Dr. Khwaja Abdul Hamied laid the foundation of Cipla in 1935. Dr. Hamied was born to Khwaja Abdul Ali and Masood Jahan Begum in Aligarh, Uttar Pradesh in 1898. He was a follower of M.K. Gandhi and also a founder professor along with Zakir Husain of  Jamia Millia Islamia, Aligarh, which is now based in Delhi. Dr. Hamied received his undergraduate degree from Allahabad University, Uttar Pradesh, and his Master's and Doctoral degrees from the Humboldt University of Berlin, Germany. Dr. Hamied was a scientist who opposed imperialism and was a nationalist and freedom fighter in India.

Dr. Khwaja Abdul Hamied started Cipla with a very strong aim, "Never again will India be starved of essential drugs."

Yusuf Khwaja Hamied

Yusuf Khwaja Hamied is the Non-Executive Chairman of Cipla Limited. An Indian scientist and billionaire businessman, Yusuf took over the company after his father, Dr. Khwaja Abdul Hamied. His popularity is known outside the national boundaries as he is best recognised for fighting against powerful Western pharmaceutical companies to offer affordable generic AIDS medications and therapies for other illnesses that largely afflict people in developing nations. Additionally, he was chosen as a fellow of the Indian National Science Academy.

Umang Vohra

Umang Vohra is the Managing Director and Global CEO of Cipla Limited. He has done Bachelor of Engineering in Computer Science from M.S. Ramaiah Institute of Technology, Bengaluru, Karnataka and got his degree in Master of Business Administration from T.A.Pai Management Institute, Karnataka. Umang was also Head of the North America business at Dr Reddys Laboratories, and Manager, Financial Planning at Pepsico India.

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Cipla - Startup Story

The history of Cipla goes back to 1935 when Dr. Khwaja Adbul Hamied founded one of the leading pharma companies in India. Initially, the company was known as, 'The Chemical, Industrial & Pharmaceutical Laboratories.' Later on, in 1984, the company was named 'Cipla Limited.'

It was in 1968 when Cipla's revenue crossed over Rs 1 crores. Soon after, at Mumbai Central Headquarters, an ORG 2001 computer was installed by the company to streamline the payroll and financial accounting processes, saving 20 days of labour from seven people. Then in 1991, the turnover of Cipla crossed Rs 100 crores.

The first oral iron chelator in history, Deferiprone, was introduced by Cipla in 1995. Antiretrovirals for HIV treatment were made available by the company in 2001 for less than $350 per patient annually.

In order to give patients with real-time monitoring, coaching, and advice, Cipla has partnered with Wellthy Therapeutics in India and Brandmed in South Africa in 2019. This collaboration combines behavioural science, actual clinical evidence, and artificial intelligence.

During the covid-19 outbreak, the establishment of Maharashtra's only pediatric isolation facility specifically for COVID-19 is supported by Cipla Foundation.

The company completed its 85 years on 17th August 2020. The Cipla Foundation is said to have given funds to set up a world-class chemistry research laboratory at the Indian Institute of Science Education and Research (IISER) Pune.

Now, the company has over 25,000 employees working in the organisation all over the world.

Cipla - Name, Logo, and Tagline

The company was first established as 'The Chemical Industrial & Pharmaceutical Laboratories Ltd. and then later changed its name to Cipla Limited in 1984.

Cipla goes by the slogan, "Caring for Life."

Cipla - Mission and Vision

Cipla's values include guiding and conduct in every conversation, organisational decision, and action of its employees.

The mission of Cipla is to be the top global healthcare provider, utilising innovation and technology to cater to all patients' basic needs.

The mission and vision of the company in the words of Dr. Y K Hamied, Chairman Cipla, "Our work is not just making medicines. It is about making a difference."

Cipla - Business Model

The business model of Cipla can be called a Generic Pharmaceutical Company (GPC) business model. Cipla is one of the largest pharmaceutical firms in India. The company operates in more than 80 countries and has 47 manufacturing facilities spread across the globe.

Cipla has a wide portfolio of drugs across therapies. Let's take a look at what Cipla offers:

Therapies

Cipla offers various treatments for diseases like heart failure, MI, lipid abnormalities, angina, hypertension, arrhythmia, diabetes, and obesity.

Respiratory

Cipla has introduced products for Asthma, Chronic Obstructive Pulmonary Disease (COPD), Allergic Rhinitis (AR), and more recently other diseases such as Pulmonary Arterial Hypertension (PAH), lung cancer, and Idiopathic Pulmonary Fibrosis (IPF). Some of the common respiratory products by Cipla are Salbutamol tablets and Salbutamol inhalers.

HIV/AIDS

Cipla is dedicated to the cause of HIV/AIDS by staying true to its motto, 'None shall be denied.' To help eradicate AIDS, Cipla introduced the first ever prescribed 3-in-1 fixed-dose combination in the year 2001 (stavudine, lamivudine, and nevirapine). In contrast to the average annual cost of over $12,000 per patient in most developed nations, it was made available for around $350 per year. The WHO and FDA have also approved Cipla's biggest selection of antiretroviral medications.

Oncology

Cipla was the first company in India to introduce the drugs Vincristine and Vinblastine in 1984. To provide free care for cancer patients who were nearing the end of their lives, the Cipla Palliative Care and Training Centre in Pune was founded in 1997. More than 11,000 patients and their families have received assistance from the Center over the years.

Urology

With products for BPH (Benign Prostatic Hyperplasia), prostate cancer, urinary stones, hypogonadism, and sexual dysfunction conditions, Cipla has a sizable presence in the field of urology.

Cardio Metabolism

Products like Propranolol, which was introduced in 1972, were the company's first fight against heart problems. For diabetes, Cipla has introduced several pills like Metformin, Metformin plus Glimepiride, and Metformin plus Glimepiride plus Pioglitazone.

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Child Health

Cipla is present in nine essential pediatric therapeutic segments like Anti-bacterial, Gastrointestinal, Anti-asthmatics, Chelation therapies, etc.

Infectious Diseases & Critical Care

Cipla has products like Tazobactam + Pipercillin, Colistin, Vancomycin, Paracetamol Infusion, etc. to fight various types of infections caused by viruses or bacteria.

Hepatitis

Cipla has managed to produce drugs to treat diseases like Hepatitis B & C.

Women’s Health

Cipla launched Clominphene citrate for infertility in women in 1979. Since then, the company has created a range of products to improve the overall health of women. The company has medication to help women at every stage of their lives, from managing polycystic ovarian syndrome to maintaining early pregnancy, from reducing post-partum haemorrhage to hormone treatment, to addressing menopausal difficulties. It has expanded its global product offering for women's health to a number of nations.

Ophthalmology

Cipla Ophthalmology is aimed at treating diseases like glaucoma, infective keratitis, and endophthalmitis in association with the All India Ophthalmology Society.

Cipla's R&D main areas of interest were the creation of novel formulations, drug delivery methods, and APIs (active pharmaceutical ingredients). In addition, Cipla collaborates with other businesses on projects involving consultation, commissioning, engineering, project evaluation, quality control, know-how transfer, support, and plant supply.

Some of the major products under the label of Cipla are:

• Cofsils - Provide relief from sore throat and cough
• Ciphands - Range of hand sanitisers, hand rubs, and surface sprays.
• Nicotex - A range of products to quit smoking.
• CIPREMI - Gilead Sciences' Remdesivir for emergency COVID-19 treatment for critical patients.

Cipla also offers many Covid-19 diagnostics products for easy accessibility. It has products like- CIPTest, CIPtest Plus, and ViraGEN.

Cipla Palliative Care and Training Centre

To treat patients who have a serious illnesses and support them with the best possible facilities and care. The company has teamed up with the government, public health institutions, local administration, NGOs, and frontline workers to treat and take care o people who were affected because of covid.

Cipla's main area of focus is on health, education, skill development, and environmental sustainability & disaster response.

Cipla - Revenue Model

Cipla mainly generates its revenue by selling active pharmaceutical ingredients to other manufacturers as well as pharmaceutical and personal care products.

The company's revenue for FY21-22 is $2.7 billion ( Rs 21,763 crores). This was nearly a 14% Y-o-Y growth in the revenue from $2.4 billion (Rs 19,160 crores) in FY20-21. The profit recorded by the company in FY21-22 stood at $315 million (Rs 2,517 crores) which was nearly a 4% increase from $301 million (Rs 2,405 crores) in FY20-21.

Cipla - Investments

As of 2022, Cipla has made four investments. Their most recent investment was on June 28, 2022, when GoApptiv raised ₹260 million. The other investments are:

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Cipla - Mergers and Acquisitions

Cipla has acquired six organizations. Their most recent acquisition was Mirren Pty Ltd. for $33 million on July 12, 2018. The other acquisitions are:

Cipla - Shareholding

The equity shares of Cipla are traded on the National Stock Exchange of India (CNX Nifty) and the Bombay Stock Exchange (BSE). The Luxembourg Stock Exchange lists its Global Depository Receipts (GDRs). The prominent shareholders of the company include the Promoter and Promoter Group, Foreign Institutional Investors, Indian Institutional Investors, GDR, and Others.

Cipla - Online and Social Media Presence

The company have a very influential social media presence. It can be seen from the number of social media accounts they have on popular platforms like:

• Facebook Page - 78,712 followers
• LinkedIn Page - 958,173 followers
• Instagram Page - 9.9K followers
• Twitter Page - 32.2K followers
• YouTube - 8.63K subscribers

The followers and subscribers count are as of August 2022.

Cipla - Advertisements and Social Media Campaigns

Quite recently, Cipla has launched an ad on various digital mediums, TV, cinema, and social media platforms with their new brand ambassador Ayushmann Khurrana. The company through this advertisement wants to raise people's awareness of the value of taking multivitamin pills daily. The brand wanted to capture people's attention through Ayushmann about keeping oneself fit and having stamina and energy in day-to-day life.

Another major campaign by Cipla is the 'Berok Zindagi campaign' with hashtags like - #InhalerHainSahi and #SayYesToInhalers. There are many campaigns featuring different actors who share their stories of having asthma and how using an inhaler is absolutely safe and easy to use even for kids as well. With regard to this campaign, there is also a song that was launched with the song name 'Inhalers Hain Sahi'. It is sung and composed by renowned music composer Amit Trivedi.

Cipla - Awards and Achievements

Here's the list of major awards won by Cipla:

• Cipla received Economic Times Family Business Award.
• Cipla won the 4th India Logistics and Warehousing Excellence Awards 2022.
• BW Businessworld featured Cipla amongst the Top 40 BW Most Sustainable Companies in India.
• Cipla scores highest among pharma companies in CRISIL's Sustainability Rating 2022.
• Cipla bags the first prize in the GOQii Corporate Challenge at an organisational level.
• Cipla was recognised at the 35th Goa Statehood Day for contributing significantly to healthcare in the state of Goa.
• ET Brand Equity Kaleido Awards 2022.
• Best New Product Introduction/ Promotion in the U.S. Generic Industry - Cipla USA Inc.
• Cipla won Silver in Public Awareness Campaign in Healthcare & Wellness Category – Berok Zindagi.
• Cipla receives the India Pharma Leader of the Year Award.
• Cipla receives US-INDIA Trade Award – “Pharma & Healthcare” Category.
• Cipla won Bronze in Best Integrated Report (Large Company) Category - Cipla Integrated Report.
• Cipla was recognised as an Industry Mover in the S&P Global Sustainability Yearbook 2022.

Cipla - Challenges / Controversies faced

Just like any business, Cipla had to go through some challenges and criticism. An over-the-counter emergency contraceptive medication known as the "i-pill" was introduced by the company in August 2007. The company faced a lot of objections because it could be purchased without a prescription and carried a significant amount of medication in each dose.

Cipla - Competitors

Some of the top competitors of Cipla are:

1. Sun Pharma
2. Divi's Laboratories
3. Dr. Reddy's Laboratories
4. Torrent Pharma
5. Abbott India
6. Gland
7. Alkem Lab
8. Pfizer
9. AstraZeneca
10. Procter&Gamble

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Cipla - Future plans

Presently, Cipla is planning to scale-up injectables with five packings in the USA. Additionally, it is also thinking to gear up and launching high-quality products for generic versions.

With the rising cases of monkeypox, Cipla is also looking for opportunities to tie up with different partners in combating the new virus.

FAQs

Who founded Cipla?

Khwaja Abdul Hamied founded Cipla Limited in the year 1935. The Indian pharma company has its headquarters in Mumbai, Maharashtra, India.

Who is the owner of the Cipla medicine company?

Yusuf Khwaja Hamied is the non-executive chairman and owner of the medicine company, Cipla Limited.

Who is Umang Vohra?

Umang Vohra is the current Managing Director and Global CEO of the Indian pharmaceutical company, Cipla Limited.

What is Cipla's revenue in 2022?

Cipla Limited revenue for FY21-22 is $2.7 billion ( Rs 21,763 crores).

Which is the best medicine company in India?

The best medicine companies in India are:

• Sun Pharma
• Divi's Laboratories
• Cipla Limited
• Dr. Reddy's Laboratories
• Torrent Pharma
• Abbott India
• Alkem Lab