Using the tiny capital of Rs 10,000 with which he founded his company Sun Pharmaceuticals in 1982 in Gujarat’s Vapi, Dilip Shanghvi has walked a long way by taking its net worth to $18 billion. With just a commerce degree from Calcutta University, he surpassed Reliance Industries’ Mukesh Ambani as the world’s richest Indian, as per Forbes, with a net worth of $21.5 billion in March. In December, he is the country’s second-richest person after Ambani.
A self-made man, he started out by helping his father in his wholesale drugs business in Kolkata, and soon decided to manufacture drugs instead of selling others’ products. Known as the “takeover tycoon” in pharma circles, Sun Pharmaceuticals initially produced psychiatric drugs but gradually evolved into manufacturing medicines such as Doxil to treat cancer and Prandin, an anti-diabetic drug. It was his appetite to gobble up ailing companies that saw Sun Pharmaceuticals emerge as the the world’s fifth largest generics player.
The 60-year-old pulled off 17 acquisitions in Sun Pharmaceuticals’ 33-year existence, turning around distressed or poorly performing companies such as Caraco Pharmaceutical Laboratories and Taro Pharmaceutical Industries into profitable outfits. His riskiest acquisitions include Ranbaxy Laboratories Ltd for $4 billion, which has been under the US FDA scanner for violation of good manufacturing practices.
He maintains a low-profile and rarely interacts with the media. Industry peers recall him a man who picks the right cards and reaps the best benefits from them. Shangvi’s appetite for buying out ailing ventures is not just limited to the pharmaceutical sector. In February, he gave a new lease of life to the debt-ridden wind turbine-maker Suzlon by acquiring one of its divisions, Senvion, in a $1.3-billion deal. As a CEO, his pay is one of the lowest at Rs 2.73 crore for 2013-14, which included salary, bonus and perquisites such as house allowance, insurance and provident fund.
TAKEOVER TYCOON
17 acquisitions have been pulled off by Shanghvi in Sun Pharmaceuticals’ existence, turning distressed firms into profiting companies.