MSN Laboratories: A master in the making
In less than a decade, MSN Laboratories has consolidated
its place as one of the fast growing pharma companies in India. Sachin Jagdale
analyses the growth trajectory of the company
Dr MSN Reddy, Chairman and Managing Director, MSN Laboratories
It has barely been a decade since MSN Laboratories' inception,
but the company's achievements would make even the industry veterans give them
a standing ovation. It is never an easy thing to start your own company, and
to survive the grueling competition, is even more difficult; but when has a
smooth sea made a good mariner: MSN Reddy, Chairman and Managing Director, MSN
Laboratories, strongly believes in this philosophy. MSN Group is one of the
fastest growing manufacturers of active pharmaceutical ingredients (APIs) and
finished dosages in India. Established in the year 2003, MSN group comprises
four API manufacturing plants, one finished dosage facility and a dedicated
technology development centre.
From employee to employer
"When I worked as an employee in an Indian multinational
company, one thought was etched my mindthat instead of being an employee
today, why can't I be an entrepreneur? Thats how I started my own company,"
says an ambitious Reddy. Prior to starting his own firm, Reddy was R&D head
in one of India's leading pharma companies. Today, if you go through the list
of his colleagues, at least 75-80 of them worked with him in his previous organisation,
which shows the trust that Reddy had garnered. He says, "When I was in
the other company, my responsibility was very wide, from product identification
to Drug Master File (DMF) filing, but basically I am an R&D person."
group management comprises of top notch professionals, with extensive experience
in synthetic chemistry, process engineering, quality, IT, SCM, marketing, regulatory
requirements and environmental safety and a proven track record in the pharma
industry. Thriving on the platform of innovation and excellence, the company
has grown into a successful and profitable enterprise with a portfolio covering
all the major therapeutic areas. Speaking about the features of its facilities,
Reddy informs, "Our plants are ISO 9001-2000 certified, WHO: GMP, EU: GMP
and US FDA approved. Our manufacturing units are designed as per WHO- GMP standards
and confirm to the principles of quality, safety and sound environment. Our
outstanding team of well-educated, motivated and result-oriented employees has
contributed actively to our spectacular growth." He adds, "We have
very efficient systems driven supply chain management and a highly responsive
customer relationship management team. In fact, we are the youngest pharma company
in the world to have SAP in place for all our commercial operations. We guarantee
competitive edge to our customers because of our absolute cost efficiency and
aggressive product development timelines. Along with this commitment comes an
irrevocable promise of quality and consistency."
A capable entrepreneur
an R&D head to an entrepreneur, there has been a tremendous shift in Redyy's
responsibilities. He recalls, "When I was working in the previous company
I used to handle R&D, IP, regulatory affairs, quality, as well as part of
the manufacturing. But I was oblivious to other functions. Today, I need to
look into corporate functions like finance, business development, supply chain
management, marketing as well. There was a time when as a pharma professional
I got the chance to complete only 60 percent of operations, but today I have
the chance to finish the rest of the 40 percent as well." According to
him, the business model that they chose ensured success as presently, there
is a difference between the products of MSN Labs and that of other companies.
"The size of our products is different from those in other companies, which
may be primarily due to the age factor. Our product portfolio can be compared
to only four to five companies in India, which has brought us to the stage we
are at today," avers Reddy.
Laboratories has shown a mind boggling growth. The company has clocked 150 percent
year-on-year (Y-O-Y) growth since its inception, making it one of the fastest
growing pharma companies in India. Apart from financials, they have made tremendous
progress in improving themselves. The company received the Outstanding Export
Performance Award in 2008-09, and within less than 20 months of inception, it
received ISO 9001:2000 certifications. WHO: GMP approvals came in less than
24 months of inception, whereas; EU: GMP approvals came in less than 48 months
of establishment, followed by an FDA approval. Other than having a Department
of Scientific and Industrial Research (DSIR) recognition to its credit, MSN
Laboratories also received an Udyog Ratna Award.
Reddy has very interesting and intelligent business plans
in mind. According to him, as chemistry is going to remain a core area for the
company, they can develop a product in time with cost effective process. But
to convert it into a business they need to have expertise in other areas also.
"For instance, we should have a good marketing team, finance team etc,"
opines Reddy. Being in the pharma industry for more than two decades, Reddy
is a familiar and reliable face in the industry, which must have helped MSN
to grow as well. Reddy says, "Since the inception of this company, recognition
of customers as well as suppliers has been very different as compared to my
previous company, and the fact that I was recognised in the industry definitely
helped us go further."
core strength is R&D, which is how they are converting this strength into
business by developing important molecules in time and supplying it to big generic
players in the global market. As far as revenue is concerned, 60 percent is
exports and 40 percent is from domestic sales. Currently, the company's R&D
centre is catering to the R&D needs of the group of companies. In the future,
the centre will also look at contract research for multinational companies.
Biotechnology will be ruling the medicine world soon and Reddy understands this
fact very well, hence they may foray into this category in the near future as
Caring for future
All the functions of MSN Laboratoires are located in Andhra Pradesh, however,
Reddy is happy with his current operational locations. He says, "All our
plants are in close vicinity of each other. So it is very convenient for us
to visit any plant in case of any emergency." He adds, "By 2012-13
we definitely want to cross the 1,000 crore mark, and want to be the preferred
API source for global generic players." Like a good employer, Reddy wants
his employees in future to improve in their work. He thinks that work done in
time will obviously increase the value of the products. As it is always said-'well
begun is half done'. MSN Laboratory's extraordinary beginning has already put
them in league with one of the greatest achievers in the Indian pharma industry.
However, the company is capable of doing much more, and with a person like Reddy
at the helm, every new challenge looks miniscule.