Japanese major, Daiichi Sankyo Company, decided to take a majority stake in Ranbaxy Laboratories of India, on June 10, 2008. It was quite a shock for all of us from India. Ranbaxy has become quite a star performer in the past few years. It has definitely been a crown jewel of Corporate India. The deal, valued at about $4.6 billion appears to be under priced at first glance. The details are yet to be disclosed. What is surprising to me is that the Communist Parties of India have not kicked up a ruckus yet. The left parties in India need some excuse on any issue to take to the streets. This is huge deal considering the survival of generic drugs in the domestic industry. Ranbaxy supplied affordable drugs to millions around the world.
Ranbaxy Laboratories Limited is the largest pharmaceutical company in India. It was incorporated in 1961 and is ranked among the top 10 generic companies, worldwide. Bhai Mohan Singh was the founder of the company. He bought the company from his cousins Ranjit Singh and Gurbax Singh. Ranbaxy is a derivation of Ranjit and Gurbax. Ranbaxy went public in 1973. The current CEO of the company is Malvinder Mohan Singh. Ranbaxy exports its products to 125 countries around the world.
Daiichi Sankyo Company Limited is a holding company, established in 2005 in Japan. It was created by the amalgamation of Sankyo Company, Limited and Daiichi Pharmaceuticals Company, Limited, two pharma giants of Japan. It’s headquarters are located in Tokyo. Sankyo purchased rival Daiichi Pharmaceutical for $7 billion in 2005. The merged company, Daiichi Sankyo, is a giant pharmaceutical manufacturer in Japan. It produces prescription drugs as well as OTC (over the counter) products.
Earlier this year, Tata Motors Limited acquired the British brands, Jaguar-Land Rover for $2.3 billion from Ford Motor Company. We were all so proud of the Tatas. When Corus Group (Europe’s second-largest Anglo-Dutch steel producer) was taken over by India’s Tata Group on April 2, 2007, we were all giddy with glee. On June 25, 2006, Mittal Steel decided to merge with Arcelor to form Arcelor Mittal, all Indians were smiling from ear-to-ear. Why then should we feel depressed by the sale of Ranbaxy? In fact, we should celebrate the maturing of Corporate India.
Filed under: Corporate India | Tagged: $4.6 billion, Affordable Drugs, Anglo-Dutch, April 2nd 2007, Arcelor, Arcelor Mittal, Bhai Mohan Singh, British Brands, Communist Parties of India, Corporate India, Corus Group, Crown Jewel, Daiichi Pharmaceuticals Company, Daiichi Sankyo, Daiichi Sankyo Company, Daiichi Sankyo Company Limited, Domestic Industry, Europe, Ford Motor Company, Generic Drugs, Gurbax Singh, Incorporated in 1961, India, Jaguar-Land Rover, Japan, Japanese Major, June 10th 2008, June 25th 2006, left-parties, Limited, Malvinder Mohan Singh, Mittal Steel, OTC, Over the Counter, Pharma Giants, Pharmaceutical, Ranbaxy, Ranbaxy Laboratories, Ranbaxy Laboratories Limited, Ranbaxy's, Ranjit Singh, Sankyo Company, Steel Producer, Tata Group, Tata Motors Limited, Tatas, Tokyo
