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MembersSr No. Name

Roll No

1. Nishant Jain19

2. saizeen manasiya

46


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3 Priyanka Singh

55

IntroductionRanbaxy Laboratories Ltd. is a research based

International pharmaceutical company with

its headquarters in India. It manufactures arange of high quality, affordable generic

drugs. The company has manufacturing

facilities in around 9 countries. It has strong

presence in around 49 countries, products

available in around 125 countries globally. It

has dedicated workforce of about 10,500

employees representing 51 different

countries.Ranbaxy was established in 1961

and went public in the year 1973. It has

global sales of US $1340 million for the year

ended on 31st December, 2006. It has the


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largest market in USA (sales appx. US $380

million); then come Europe and BRICS (Brazil,

Russia, India, China, South Africa).

Daiichi Sankyo

Company,Daiichi Sankyo Co., Ltd. is a Japan-based

major pharmaceutical company, which ranks

number 22 in the world in sales.Daiichi

Sankyo was established in 2005 through themerger of Sankyo Co., Ltd. and Daiichi

Pharmaceutical Co., Ltd. , which were

century-old pharmaceutical companies based

in Japan.In 2006, Daiichi Sankyo acquired

Zepharma, the OTC drugs unit of Astellas

Pharma.On June 10, 2008, Daiichi Sankyo

agreed to take a majority (35%) stake in


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Indian generic drug maker Ranbaxy, with a

deal valued at about $4.6 billion. Ranbaxy's

Malvinder Singh will remain CEO after the

transaction.

HISTORY OF

RANBAXYRanbaxy was started by Ranbir Singh and

Gurbax Singh in 1937 as a distributor for a

Japanese companyShionogi. The nameRanbaxy is a combination of the names of its

first owners Ranbir and Gurbax. Bhai Mohan

Singh bought the company in 1952 from his

cousins Ranbir and Gurbax. After Bhai Mohan

Singh's son Parvinder Singh joined the

company in 1967, the company saw a

significant transformation in its business and
http://en.wikipedia.org/wiki/Shionogihttp://en.wikipedia.org/wiki/Shionogi


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scale. His sons Malvinder Mohan Singh and

Shivinder Mohan Singh sold the company to

the Japanese companyDaiichi Sankyo in June

2008. DIAZEPAM was the first product

manufactured by Ranbaxy and was most

effective at that time to hit the Indian market

and was vastly accepted. Ranbaxy was

established in June 16, 1961. In year 1973

Ranbaxy went public.

After the governments liberalization policy in

year 1995, Ranbaxy was the 1st Indian

company to become a MNC. Over the years,

Ranbaxy has invested heavily and built up

considerable strength in manufacturing and

marketing. Currently it has 14,000 strong

team over 50 nationalities with sales over a

125 countries and manufacturing in 7

countries.Earlier in June 2008, Ranbaxy
http://en.wikipedia.org/wiki/Malvinder_Mohan_Singhhttp://en.wikipedia.org/wiki/Shivinder_Mohan_Singhhttp://en.wikipedia.org/wiki/Daiichi_Sankyohttp://en.wikipedia.org/wiki/Malvinder_Mohan_Singhhttp://en.wikipedia.org/wiki/Shivinder_Mohan_Singhhttp://en.wikipedia.org/wiki/Daiichi_Sankyo


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entered into an alliance with one of the

largest Japanese innovator companies,

DAIICHI SANKYO. And the combined entity

will be catapulted to the no. 15th position in

the global pharmaceutical space. The

company is steadily moving towards its vision

of becoming a 5 billion dollar company by the

year 2012. Dr. Tsutomu Une and Mr. Arun

Sawhney are the Chairman and C.E.O of

Ranbaxy respectively.

RANBAXY

ACQUISITIONREASONS FOR THE DEAL:
http://www.ranbaxy.com/aboutus/Team_DispNew_.aspx?id=77&flag=http://www.ranbaxy.com/aboutus/Team_DispNew_.aspx?id=77&flag=http://www.ranbaxy.com/aboutus/Team_DispNew_.aspx?id=77&flag=http://www.ranbaxy.com/aboutus/Team_DispNew_.aspx?id=77&flag=


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1. A complementary business combination

that provides sustainable growth by

diversification that spans the full spectrum of

the pharmaceutical business.RLL & D.S. are

major player in the world pharmaceuticals

industry. Both have potential to cater the

demand and through research to generate

the demand for further development of the

business.

2. An expanded global reach that enables

leading market positions in both mature and

emerging markets with proprietary and non-

proprietary products. Ranbaxy has large

market in India and neighbour countries,

while .D.S. has wide market in developed

countries like: Japan U.S.,Europe and U.K. So,

both can extend their market and provide

best quality services & products.


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3. Strong growth potential by effectively

managing opportunities across the full

pharmaceutical life-cycle. The world

pharmaceutical industry is growing at 11%.so,

this acquisition will beneficial to meet the

extending opportunities of the industry. The

future industry scenario demanding more

quality product which can definitely be cater

by this acquisition.

4. Cost competitiveness by optimizing usage

of R&D and manufacturing facilities of both

companies, especially in India. As in terms of

the labour cost, manufacturing cost,

exporting cost lower than the other countries,

it reduces the cost per unit and that is directly

beneficial to customers. Cost advantage get

in the India ,by that surplus amount utilise

into r&d.


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THE DEAL THAT

WAS :

Singh sold his 34.8% stake for around Rs.

10,000 crore ($2.4 billion) at Rs. 737 ($17)per share. Daiichi Sankyo was to pick up

another 9.4% through a preferential

allotment. According to Securities & Exchange

Board of India (Sebi) norms, it was to a make

an open offer to the shareholders of Ranbaxy

for another 20%. There could also be a

preferential issue of warrants to take the

Daiichi Sankyo stake up by another 4.9%.

That would come into play if the ordinary

shareholders don't respond to the open offer

and Daiichi Sankyo needs another way to


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raise its stake to 51%.Ranbaxy, with $1.6

billion in global sales in 2007, had a profit

after tax of $190 million, a gain of 67% over

the previous year. It has a footprint in 49

countries and manufacturing facilities in 11. It

has 12,000 employees, including 1,200

scientists and has been pouring money into

R&D, though obviously not on the same scale

as the Western majors. Ranbaxy is among

the top 10 global generic companies. Its

stated vision has been to be among the top

five global generic players and to achieve

global sales of $5 billion by 2012. Daiichi

Sankyo is the product of a 2005 merger

between Sankyo and Daiichi. In the financial

year ended March 2008, it had net sales of$8.2 billion and a profit after tax of $915

million. It has a presence in 21 countries and


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employs 18,000 people. It is the second

largest pharmaceutical company in Japan.

The combined company will be worth about

$30 billion..

BENEFIT OF THEDEAL

Benefit of the Deal a win-win for Ranbaxy and

Daiichi. Competitiveness by optimizing usage

of R&D and manufacturing facilities of both


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companies The combination of the two

companies will give Ranbaxy access to Daiichi

's expertise in research while the Japanese

company will benefit from low-cost production

on the sub-continent, amid a deepening

profits crisis in Japans drugs industry. Daiichi

will Gain position of major player in Generics.

RECENT

PROGRESS


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Recent progress 13% rise in annual sales,

helped by a strong contribution from Ranbaxy

Laboratories Ltd, Indias largest drug maker

by revenue, which it bought two years ago.

Daiichis sales increased by 16% in the US

and by 28.2% in Europe. In India, revenue

rose 292.8% to 59.9 billion, mainly on

Ranbaxys sales. Ranbaxy posted a net profit

of Rs 963 crore for the quarter ended 31

March, against a loss of Rs761 crore a year

ago. Sales had improved 60% to Rs2,490

crore, as the firm for the first time sold

medicines in excess of $500 million (Rs2,255

crore) in a quarter.


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EFFECT ON STOCK

MARKETEffect on Stock Market The share price of

Ranbaxy rose 3.86% to Rs 526.40 on June 9,

two days before the company announced its

buyout by Daiichi Sankyo. The benchmark

Sensex plunged 506 points the same day .

Effect on Stock Market June 10, a day before

the deal was announced, the Ranbaxy scrip

surged 6.52% to Rs 560.75 and the Sensex

fell 177 points. The stock ended almost flat at

Rs 560.80 on June 11 June 11 The reason as

to why the Ranbaxy stock had been movingagainst the general market direction since it

became public when the company announced


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about the sale of a majority stake in it to the

Japanese firm Daiichi Sankyo .

Strategy

Ranbaxy is focused on increasing the

momentum in the generics business in its key

markets through organic and inorganic

growth routes. It continues to evaluate

acquisition opportunities in India, emerging

and developed markets to accentuate its

business and competitiveness. The

Companys growth is well spread across

geographies with near equal focus on

developed and emerging markets. Ranbaxy

has entered into new speciality therapeuticsegments like Bio-similars, Oncology,

Peptides and Limuses. These new growth


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areas will add significant depth to its existing

product pipeline.

TABLET NAMES


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SNo

Brandname

Generic name Therapeutic segment

1CHERICOFCOUGH SYRUP

Complete Cough Syrupfor family

CCA - Cough, Cold &Allergy

2CHERICOFSOFTGEL

Cough remedy capsulesCCA - Cough, Cold &Allergy

3 EATEASEAppetite enhancer-Children (Herbal)

GI - Gastro-intestinals

4 GARLIC PEARLSGarlic oil for all roundhealth


5 GESDYP Digestive Enzymes GI - Gastro-intestinals

6 OLESAN GEL Cold rub (Herbal)CCA - Cough, Cold &Allergy

7OLESANLOZENGES

Cough & sore throat cure( Herbal)


8 OLESAN OILNasal decongestant oil(Herbal)


9 PEPFIZ Effervescent digestiveenzymes


10REVITALSOFTGELS

Ginseng, vitamins &minerals

VMS-Vitamins, Minerals& Supplements

11REVITALLIQUID

Ginseng, vitamins &minerals

VMS-Vitamins, Minerals& Supplements

12REVITALSENIOR

Vitamins, Minerals,Ginseng and Isoflavones(Specially formulated for50 years+)

VMS Vitamins,Minerals andSupplements

13REVITALWOMAN

Ginseng, Vitamins andMinerals(Specially formulated forwomen)

VMS Vitamins,Minerals andSupplements

14 REVITALITE Soy Protein Supplement VMS Vitamins,Minerals & Supplements15 VOLINI GEL Complete Pain relief Gel ANALGESIC-Topical

16 VOLINI SPRAYComplete Pain reliefSpray

ANALGESIC-Topical

17 VOLINI TABS Complete Pain relief tabs ANALGESIC-Oral


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MISSION

The Company is driven by its vision to

achieve significant business in proprietary

prescription products by 2012 with a strong

presence in developed markets. It aspires to

be amongst the Top 5 global generic players

and aims at achieving global sales of US $5

Bn by 2012. Ranbaxy's mission is To become

a Research-based International

Pharmaceutical Company. The Company is

driven by its vision to Achieve significant

business in proprietary prescription products

by 2012 with a strong presence in developed

markets.


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VALUES

1. Achieving customer satisfaction is

fundamental of business.2. Provide products and services of the

highest quality.

3. Practice dignity and equity in

relationship and provide

4. opportunities for our people to realizetheir full potential.

5. Ensure profitable growth and enhance

wealth of the shareholders.

6. Foster mutually beneficial relations

with all our business partners.

7. Manage our operations with high

concern for safety and environment.


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SWOT ANALYSIS

Strengths

1. Low cost of production.

2. Large pool of installed capacities

3. Efficient technologies for large number of

Generics

4. Large pool of skilled technical manpower.5. Increasing liberalization of government

policies.


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Weakness

1. Low technology level of Capital Goods of

this section.

2. Non-availability of major intermediaries

for bulk drugs.

3. Lack of experience to exploit efficiently

the new patent regime.

4. Very low key R&D.

5. Low share of India in World

Pharmaceutical Production

Opportunity

1. Growing incomes.

2. Growing attention for health

3. New diagnoses and new social

diseases

4. Spreading prophylactic approaches


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5. New therapy approaches

Threats

1. Containment of rising health-care cost.

2. High Cost of discovering new products &

fewer discoveries.

3. Stricter registration procedures

4. High entry cost in newer markets

5. High cost of sales and marketing.

Corporate Social

Responsibility

As a global leader in

pharmaceuticals the company takes pride not


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only in providing products that enable people

to live healthier and fuller lives, but also in

giving back to the society. At Ranbaxy,

Corporate Social Responsibility and concern

for Environment, Health and Safety are a part

of the corporate DNA.

Anti HIV/AIDS Project

Ranbaxy comprehensive anti-HIV portfolio

comprises Bio-Equivalent Anti-Retrovirals

(ARVs) and Anti-Infectives for Opportunistic

infections. Ranbaxy provides pre & post sales

support to institutions, NGOs, and Ministries

of Health, making Ranbaxy ARVs available in

their respective treatment programs Several

humanitarian and government programmes

have sourced ARVs from etc.


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TOP COMPETITORS OF

RANBAXY IN PHARMAMARKET

Cipla Ltd. Dr. Reddy'S Laboratories Ltd

Nicholas Piramal India Ltd. Glaxosmithkline Pharmaceuticals Ltd Cadila Healthcare Ltd. Pfizer Ltd. Sun Pharmaceutical Inds. Ltd Wockhardt Ltd

Aventis Pharma Ltd Biocon Ltd


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CONCLUSION:

Ranbaxy laboratories ltd. (which is the no.1

pharmaceutical company in India) acquired

by Daiichi Sankyo Company Ltd.(a Japans

third largest pharmaceutical company and

also in top 20 pharma company in the world It

was the biggest acquisition of a domestic

pharmaceuticals company by foreign

company. This acquisition provided benefit to

both companies. D&S could enter into the

Asian market which is worlds largest

pharmaceuticals.

Ranbaxy got the strategic partner which

helped to explore the foreign market and itsinnovator facility to accelerate the growth of

the company. We hope this acquisition will

prove more beneficial not only D & S and


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Ranbaxy but also to the mankind in terms of

the new innovative drugs and medicines for

the deadly diseases.

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