Sun Pharma rejigs top deck at India biz

Written by MG Arun | Mumbai | Updated: Aug 3 2012, 09:21am hrs
After a recent top-deck reshuffle at its international operations, Mumbai-based Sun Pharmas promoter Dilip Shanghvi has rejigged top executives handling the India operations and finance.

Abhay Gandhi, who was formerly heading Suns rest of the world (ROW) business excluding the US, is now in charge of domestic formulations, and is designated executive vice-president (marketing). He joined the company in mid-1990s as a product manager in the cardiac division.

Uday Baldota, who heads investor relations and communications at Sun Pharma, will don the hat of chief financial officer, and has been designated senior vice-president (finance and accounts). He has been with Sun Pharma for over a decade now, except for a short stint with cement major Lafarge. He replaces Sudhir Valia, former CFO, and Shanghvis brother-in-law, who will continue to be a whole-time director on Sun Pharmas board. Valia has been with Sun Pharma for close to two decades now.

Meanwhile, Shanghvis son Aalok Shanghvi has joined Sun Pharma as a senior general manager in its international marketing team and is learning the ropes to take up larger responsibilities in the future. A Bachelor of Science in molecular biology at the University of Michigan, Aalok is also the founder promoter of PV Powertech, a manufacturer and exporter of photo-voltaic solar panels.

Aaloks wife, Karishma, who hails from the Mehta family that owns Deepak Fertilisers & Petrochemicals Corp, has joined Sun Petrochemicals, a private business owned by Shanghvi, and is expected to subsequently join Sun Pharma. A Sun Pharma spokesperson said the company has no comments to offer on these movements.

The Indian pharmaceutical market, given its current size and growth rate, will be a major driver going forward, in our view, with growth in the sector to remain strong over the medium term, said Piyush Nahar of Jefferies Equity Research in a July report. The growth drivers, he said, would be rising incomes, increasing reach of healthcare and a growing middle class.

Although Sun Pharma derives a bulk of its revenues (62%) from international operations, the domestic business has been growing at around 20%. As on March, it held a 4.6% market share in the R64,000-crore Indian pharma market and is the fourth-largest player, data from market research firm AIOCD-AWACS showed. It derived a sales of R2,915 crore in its branded formulations business in India for the fiscal ended March, out of a total income of R8,006 crore.

Our overall guidance is 18-20% growth for the entire company over last year, Shanghvi told FE in a recent interview. Sun Pharma made a net profit of R2,587 crore for the fiscal.

In April, Sun Pharma appointed Kal Sundaram, earlier its CEO and a former GlaxoSmithKline Pharma MD, as the chairman of Tel Aviv-based Taro Pharma, where Sun Pharma has 66.7% stake. Shanghvi also stepped down as Sun Pharma chairman, appointing Israel Makov, former president and CEO of Teva Pharma, to the post. Shanghvi is now Sun Pharma MD.

Ever since Sun Pharma took a controlling stake in Taro, the latter has turned around.

For the fourth quarter ended March 2012, Sun Pharma posted an 85% growth in net profit, rising on the performance of Taro, whose sales and net profit nearly doubled.