Divi's Laboratories | Journey of Divi to become India's second most valuable pharma company

Shalini Rath Shalini Rath
Oct 11, 2022 12 min read
Divi's Laboratories | Journey of Divi to become India's second most valuable pharma company

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 Divi's Laboratories.

Medicines, or drugs, or tablets, cough syrups, or pills, have become a part of our everyday lives. Have you ever thought about what would have happened if medicines were never discovered? Scary to think, right? because how else we would survive without treating different illnesses, or diseases?

Things were very different before 1800 as to how humans used to treat and prevent diseases. Although it's tough to put so much information in one go, we can say that the first pharmaceutical medication was produced in 1804 by Friedrich SertΓΌrner, a German scientist.

The establishments and inventions with curious methods of preventing many diseases provoked a lot of discoveries. As a result, the pharma industry was born with a lot of organizations indulging in manufacturing and producing drugs and medicines.

Divi's Laboratories with its headquarters in Hyderabad is an Indian global Pharmaceuticals company founded in 1990 by Dr. Murali Krishna Prasad Divi. The company is regarded as one of the top pharmaceutical companies for 'custom synthesis' and also as India's second most valuable pharma company.

Want to know what makes the company a custom manufacturer? then please do give a read to this article, where we cover details of Divi's Laboratories' success journey, who are its founders, its mission & vision, products and services offered by Divi's Lab, its business and revenue model, what are its plans for the upcoming future and much more interesting information.

Divi's Laboratories - Company Highlights

Headquarters Hyderabad, India
Sector Pharmaceuticals
Type Public
Founder Divi Murali Krishna Prasad
Key People Satchandra Kiran Divi (CEO)
Founded 1990
Revenue $1.2 billion (2022)
Subsidiaries Divis Laboratories (USA) Inc, Divi’s Laboratories Europe AG, Divi’s Nutraceuticals
Website divislabs.com

About Divi's Laboratories
Divi's Laboratories - Industry details
Divi's Laboratories - Founder and Team
Divi's Laboratories - Startup Story
Divi's Laboratories - Mission and Vision
Divi's Laboratories - Name, Tagline, Logo
Divi's Laboratories - Business Model
Divi's Laboratories CSR & Sustainability activities
Divi's Laboratories Covid-19 Response
Divi's Laboratories - Revenue Model & Growth
Divi's Laboratories - Shareholdings
Divi's Laboratories - Awards and Achievements
Divi's Laboratories - Competitors
Divi's Laboratories - Future Plans

About Divi's Laboratories

Standing tall since 1990, Divi's Laboratories is India's second pharma company by market capitalization touching nearly $17 billion in 2021. It is one of the leading pharmaceutical companies in the world that is engaged in manufacturing Active Pharmaceutical Ingredients (APIs), Intermediates, and Nutraceuticals. The Hyderabad-based pharma company is also recognized as a Reliable Supplier of generic APIs and Custom manufacturers to Big Pharma.

The company has two subsidiary brands namely:

  • Divi's Laboratories (USA) Inc -located in New Jersey, USA
  • Divi’s Laboratories Europe AG - Basel, Switzerland

Divi's Laboratories has three manufacturing units located near Hyderabad and Visakhapatnam in India, and three R&D centers with more than 400 scientists and 42 patents across India. As the company is the world's leading manufacturer of APIs, Intermediates, and Registered Starting Materials, it also provides high-quality goods with the greatest degree of compliance and virtue to more than 100 countries. Divi's Laboratories was listed as a public limited business on the Indian stock exchange.

The manufacturing zones of Divi's laboratories have been audited by authorities such as Regulatory Authorities, several Big Pharma/Multinational Companies, Statutory Authorities, and Global Environmental, Health, and Safety teams. On top of that, Β agencies such as USFDA, EU GMP (UK, Slovenia, German, and Irish authorities), HEALTH CANADA, TGA, ANVISA, COFEPRIS, PMDA, and MFDS keep have all visiting its advanced manufacturing plants in Hyderabad and Vizag for inspection.


One of the most recent achievements of Divi's is the distinction of being one of the top three API manufacturers in the globe, as well as one of the top API firms in Hyderabad. Divi's Lab claims to have more than 17,000 trained people who work tirelessly to make the company the leading pharma company in India.

Divi's Laboratories - Industry details

According to experts, the global pharmaceuticals manufacturing industry is predicted to expand at a compound annual growth rate (CAGR) of 11.34% from 2021 to 2028. The Indian pharmaceutical sector is expected to be worth US$ 49 billion in FY22, representing a 9% increase over FY21.

The introduction of new technologies and efficient manufacturing types of equipment has transformed this industry massively following which, the industry is only expected to grow positively to newer heights. India is the largest contributor to exports, followed by North America, African countries, and Europe.

Divi's Laboratories - Founder and Team

The founder of one of the leading APIs manufacturer companies, Divi's Laboratories, is Dr. Divi Murali Krishna Prasad.

Divi Murali Krishna Prasad

Dr. Divi Murali K. Prasad was born in a small village in Andhra Pradesh. He was the youngest among his twelve other siblings.

Dr. Divi Murali is a graduate of the Manipal College of Pharmaceutical Sciences with a degree in Bachelor of Pharmacy. His career started by working at Warners Hindustan Company. While working at Warners, Dr. Divi Murali left for America with his family during 1976-77 in search of better opportunities. Dr. Divi Murali's entrepreneurial journey began in 1984 after he came to India after working in key research and development positions at American companies such as Fike Chemical.

Upon returning to India, Dr. Divi Murali met Dr. Anji Reddy, the founder of Dr. Reddy's Laboratories, with whom he bought a company called 'Keminar'. Eventually, with the experience and knowledge, Dr. Divi Murali had gained, he finally founded his own company, Divi's Laboratories in 1990.

Presently, Dr. Divi Murali Krishan Prasad is the Chairman and Managing Director of Divi's Laboratories. He is also a member of the American Institute of Chemical Engineers, American Chemical Society, and American Cosmetic Society. He was listed as the 45th wealthiest man in India in 2013 as Forbes listing. Furthermore, he was featured in Hurun India Rich List 2021 with a net worth of β‚Ή79,000 crores making him the 14th richest person in India.

Dr. Satchandra Kiran Divi

Commonly known as Kiran Divi is the Whole-time Director & Chief Executive Officer of Divi's Laboratories. Dr. Kiran Divi is the son of Dr. Murali Divi. He is also the youngest billionaire in the Telugu States with a stake of 20.34% in Divi's Labs. Dr. Kiran Divi holds a bachelor's degree in Pharmacy from Mangalore University and a master's degree from Jawaharlal Nehru Technological University. Along with this, Dr. Kiran Divi achieved a doctorate from the Gitam Institute of Technology and Management. He is married to Shakuntala Divi. The pharma company has been producing high-quality company strategies and plans under his guidance, guaranteeing alignment with both short and long-term objectives.

Nilima Prasad Divi

Nilima Prasad Divi is the Whole-Time Director (Commercial) of Divi's Labs. She holds a master's degree in International Finance from the University of Glasgow, UK. She oversees Material Sourcing & Procurement, Corporate Finance, and Investor Relations.

Ms, Nilima owns a stake of 20.34% in Divi's Laboratories, which makes her a billionaire woman and also the richest woman in the Telugu States. Ms. Nilima also manages the company's Material Sourcing & Procurement, Corporate Finance, and Investor Relations. Ms. Nilima developed substantial business acumen and knowledge with material need planning and finance before joining Divi's.

Divi's Laboratories - Startup Story

Divi's Labs started as a Research & Development Centre as its core area in 1990. It grew and concentrated on inventing novel processes for the manufacturing of Active Pharmaceutical Ingredients (APIs) and Intermediates, as well as delivering comprehensive turnkey solutions and advising to the local pharmaceutical sector. Divi's Laboratories' brand name was changed from Divi's Research Centre in 1994. Later after, in 1995, the business opened its first manufacturing facility in Choutuppal, Telangana. Its second production plant, located near Visakhapatnam, began operations in 2002.

On February 17, 2003, Divi's Labs went public with an initial public offering (IPO). In 2007, the pharma company set up a Nutraceuticals facility at its Manufacturing Unit 2, near Vishakhapatnam. After a few years, the organization opened a research center in Hyderabad in 2010. Today, the company is a leader in producing one of the highest quality APIs and other drugs and medicines.

Divi's Laboratories - Mission and Vision

The vision statement of Divi's Laboratories is, "To create value for all stakeholders by manufacturing high-quality Generic APIs, Custom synthesis of APIs & Intermediates along with Nutraceutical Ingredients to the Global Pharmaceutical & Nutraceutical industry through sustainable leadership in chemistry." The company aims to add some significance in the area of manufacturing through its core values and serving society in general.

Its mission is, "To be a responsible business, adding value through our core competency in the area of chemistry while adhering to our core values and serving the immediate community and at large through our diverse social initiatives that would establish a strong foundation for a better tomorrow for all stakeholders."

Divi's Laboratories consists of five core business values:

  • Financial Stability
  • Reliable Supply Partner
  • Trustworthy
  • Transparency
  • Complimentary

The name of the company is after the founder Dr. Murali Divi's family name, 'Divi'.

The tagline of Divi's Laboratories is, "Striving for leadership through chemistry".

Divi's Laboratories - Business Model

The business model of Divi's Laboratories operates on a B2B model.

Its business mostly engages in export markets and features a diverse product portfolio that includes generics APIs and bespoke synthesis. The company includes World-class production facilities with a total capacity of 14000 m3, one of which is the world's largest API manufacturing plant. It has three major manufacturing units near Hyderabad and Visakhapatnam. Two huge cGMP API manufacturing machines produce thousands of tonnes of APIs that are sold to over 100 countries.

With its motto, "Delivering a product with a value proposition, throughout the life-cycle of the product", Divi's Laboratories have about 400 best-in-class scientists working in their three R&D facilities across India. DRCs, Divi's Labs Research Centres are located in Sanath Nagar, Hyderabad, while Process Development & Support Centres (PDSCs) are located at the production locations.

There are more than 2000 employees who are assigned to Divi's Labs Quality Assurance and Quality Control. These employees are dedicated to upholding the highest quality standards in cGMP production through frequent assessments and ongoing development of the Quality Management System. As mentioned earlier, all the manufacturing facilities are fully inspected regularly by top health agencies such as the FDA, EU GMP, HEALTH CANADA, TGA, ANVISA, COFEPRIS, PMDA, and MFDS.

Generic APIs products

The pharma company is a global pioneer in High Volume Generic APIs. The product list contains a highly selected 30 APIs that are commercially made in batches of tens to hundreds to thousands of Tonnes per year, thus making it the world's largest API manufacturer.

To name a few generic APIs products, these are Bupropion HCl, Diltiazem HCl, Gabapentin, Levetiracetam, Capecitabine, Nabumetone, Pregabalin, Quetiapine Fumarate, Valsartan, Triprolidine HCl, and many more. Some of these products are regulated by other countries like Australia, Singapore, Saudi, China, Thailand, Korea, EU Countries, and Taiwan among others.

The company is currently developing new eight products in the therapeutic categories such as - anti-diabetic, anti-viral, anti-hypertension, anti-coagulant, etc.

Custom Synthesis

Divi's Laboratories is also engaged in the business of manufacturing customized synthesis, which means it offers its manufacturing services on a contract basis for many global pharma companies. It has established relationships with 6 of the top 10 Big Pharma.


Nutraceuticals

Located at its Unit II manufacturing location, the Nutraceutical Facility by Divi's is an integrated facility for the synthesis of active ingredients as well as final forms of carotenoids. It is one of the world's leading producers of Carotenoids. The facility contains a full-service R&D, application testing, and support center. Divi's Laboratories' nutraceutical product line includes a complete spectrum of carotenoids such as Beta Carotene, Astaxanthin, Lycopene, Canthaxanthin, and Canthaxanthin, as well as additional completed forms such as Lutein and Vitamins, these include A, D3, D2, E Acetate, and A Palmitate. This high-quality carotenoid and vitamin components by Divi's are used by many food & beverage, nutritional supplement, pet food, and feed sectors.

Divi's Laboratories CSR & Sustainability activities

Since its inception, Divi's has concentrated on various corporate social responsibility initiatives, affecting the lives of thousands of people living in and around Andhra Pradesh and Telangana. Its CSR initiatives include promoting education, empowering women, rural development, preventive health care, safe drinking water, animal welfare, and raising the living standards of community members.

So far, Divi's Laboratories have empowered more than 22,000 children by building around 206 schools and providing around 92 safe drinking water to more than 2,41,000 people in villages. Alongside, the company has executed more than 1,36,000 plantation drives in 35 villages, and more.

The company has distributed Study material to 10th-grade students across the government schools in Andhra Pradesh, distributed Horlicks Sachets to 180 schools, and donated dual desk benches to Government schools. It has also dedicated its efforts to improving the lives of many villagers in Panthangi village in Telangana and Chippada village in Andhra Pradesh through its Model Village Project.

Divi's Laboratories has also dedicated itself to a sustainable environment by launching various sustainable initiatives like Water Management (installed new Sewage Treatment Plants (STPs) at manufacturing sites aided in the saving of 1,22,400 M3 of water) Energy Management (Installed advanced and energy efficient equipment - 1,08,79,000 KWH), and Waste Management (solvent recovery stations were established to recover and reuse solvents)

Their CSR activities don't end there. Besides, over 33,550 EHS training sessions were conducted, with 3,30,900 participants.

Divi's Laboratories Covid-19 Response

In response to the pandemic, the company has been very quick to implement tight measures at its sites. Divi's has been checking all of its business processes and production schedules, prioritizing activities of significance such as making sure appropriate behavior of its employees following all safety and sanitation protocols and ensuring its supply chain's engagement with vendors and customers. Even though there were certain pitfalls, in the beginning, it has been able to sustain its business operations and assure an ongoing supply of active pharmaceutical ingredients to clients for the manufacture of important medications. The pharma company has also begun to vaccinate its employees and their dependents.

Divi's Laboratories - Revenue Model & Growth

For Fiscal Year 2021-22, Divi's Laboratories has been able to achieve another year of decent business growth and profitability. As the company is primarily engaged in the export market, the exports accounted for 90% of total sales income, and 77% of commerce was conducted in cosmopolitan markets such as Europe and America. The Rest of the World accounted for 4.0%, Asia for 9.2%, and India accounted for 10.0%.


The company made a revenue of $1.2 billion in 2022. It claims to have a revenue growth of 31%.

Revenue Distribution of Divi's Laboratories

Divi's Laboratories - Shareholdings

Divi's Laboratories is a publicly listed company with its IPO in 2003. Its ISIN code is INE361B01024. The company has been funded by many fund managers. Some of the important ones have been highlighted in the following list:

Fund Name Fund Manager Shares in %
SBI Equity Hybrid Fund-Reg(G) R. Srinivasan 2.89
Axis Long Term Equity Fund-Reg(G) Jinesh Gopani 4.60
SBI BlueChip Fund-Reg(G) Sohini Andani 2.92
SBI Nifty 50 ETF Raviprakash Sharma 0.65
Axis Bluechip Fund-Reg(G) Shreyash Devalkar 1.90
UTI Flexi Cap Fund-Reg(G) Ajay Tyagi 1.39
Nippon India Pharma Fund(G) Sailesh Raj Bhan 7.47
UTI Nifty 50 ETF Sharwan Kumar Goyal 0.65
Axis Growth Opp Fund-Reg(G) Jinesh Gopani 2.25
Aditya Birla SL Equity Hybrid 95 Fund(G) Satyabrata Mohanty 1.70
Aditya Birla SL Pure Value Fund(G) Milind Bafna 3.19
SBI Healthcare Opp Fund-Reg(G) Tanmaya Desai 6.89
UTI Mastershare-Reg(G) Swati Kulkarni 1.12
SBI Magnum Equity ESG Fund-Reg(G) Rohit Shimpi 2.12
Sundaram Large and Mid Cap Fund(G) Ravi Gopalakrishnan 1.43
Aditya Birla SL Pharma & Healthcare Fund-Reg(G) Dhaval Shah 6.62
Edelweiss Nifty 100 Quality 30 Index Fund-Reg(G) Bhavesh Jain 3.04
Motilal Oswal S&P BSE Healthcare ETF Swapnil P Mayekar 8.18
Axis NIFTY Healthcare ETF Jinesh Gopani 10.58
Aditya Birla SL Nifty Healthcare ETF Lovelish Solanki 10.59

Divi's Laboratories - Awards and Achievements

Divi's Laboratories has been a continuous recipient of many prestigious awards for its manufacturing, CSR, and sustainability activities. Here's a list of awards achieved by the company in recent years:

2022

  • Divi's received the EHS excellence Award by CII South Region

2021

  • Lifetime Achievement Award by ICON SWM
  • Lifetime Achievement Award for significant contribution to the circular economy and waste management by International Society of Waste Management, Air & Water (ISWMAW)
  • Divi's received the CII-SR EHS Excellence Award 2020 – β€œ4 Star Rating” for commitment to EHS practices
  • It has received India's most prestigious Safety Award 'Suraksha Puraskar Award for the year 2021 from theNational Safety Council of India (NSCI)

2020

  • Achieved the Prashansa Patra – NSCI Safety Awards -2020 from the National Safety Council of India (NSCI)


2019

  • Divi's was recognized as the Best Partner – Smart Village Smart Ward by Andhra Pradesh State Government
  • CII EHS Excellence Awards 2019 – 3 star rating by the Confederation of Indian Industry (CII)
  • Divi's Labs was recognized as the 2019 HURUN Self-made Philanthropist of the Year as per Hurun Report

2018

  • Divi's Labs achieved IconSWM (International Conference on Sustainable Waste Management) by the International Society of Waste Management, Air & Water
  • Achieved the May Day award for Best Management Department of Labour, Government of Andhra Pradesh

Divi's Laboratories - Competitors

The top competitors of Divi's Laboratories are:

  1. Dr. Reddy's Laboratories
  2. Sun Pharmaceuticals Pvt. Ltd.
  3. Cipla Limited
  4. Abbott India
  5. Torrent Pharma
  6. Alkem Lab
  7. Pfizer
  8. Aurobindo Pharma Ltd.
  9. Zydus Lifesciences Ltd.
  10. Lupin Ltd.
  11. Gland Pharma Ltd.
  12. Ajanta Pharma
  13. Glenmark Pharma Ltd.
  14. P&G

Divi's Laboratories - Future Plans

The company aims to expand its capacity in producing more specialized APIs to the changing marketing conditions. As the leading pharma company for manufacturing customized APIs, it further wants to expand by seeking to hit a market size of $20 billion in molecules going off-patent during FY23–25.

FAQs

Who owns Divi Labs?

Divi Murali Krishna Prasad is the owner of Divi Labs.

What is the full form of API in pharma?

In pharma, API stands for Active Pharmaceutical Ingredient.

Is Divi an MNC?

Yes, Divi Labs is an MNC from India.

Where is Divi Labs based?

Divi Labs is based in Hyderabad.

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