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The company that opened the way for generic drugs in India CIPLA is going to be sold, Gandhi, Nehru and Bose were also followers, the British were also in awe

CIPLA (The Chemical Industrial And Pharmaceutical Laboratories) is one of the biggest names in pharmaceutical companies in India. Big news is coming out about this 88 year old company. It is being told that the Cipla company is going to be sold soon and Blackstone, one of the world’s largest private equity firms, is at the forefront of the race to buy it. Currently the company is owned by the family of founder Khwaja Hameed, but now he is going to sell his entire 33.47 per cent stake.

Drug business spread in 86 countries

Talking about business, Cipla is currently the third largest pharmaceutical company in India. Cipla’s name appears in the ranking list after Sun Pharma and Dr Reddy’s. The market capitalization of the company is $9,979 million. Its manufacturing units are present in 47 places in the world and the medicines made in this Indian company are supplied to about 86 countries.

Indigenous Cipla will become foreign

Yusuf Hameed’s niece Samina (Executive Vice-Chairperson Cipla) is currently handling the company that brought the Indian pharma industry from the floor and the Hameed family is now ready to sell their entire 33.47% stake in it.

A big reason to sell stake

Talking about the reasons for selling Cipla, one major reason is the lack of a successor. In fact, if we look at Cipla’s Succession Plans, Khwaja Abdul Hameed had handed over the reins of the company to Yusuf Hameed, whereas now that the non-executive chairman YK Hamied has turned 80 years old, in 2015, he handed over the reins of the company to his niece. Samina Hamied was included in the board.

Started in India in 1935

Chemist-turned-businessman Khwaja Hameed started Cipla in the year 1935, before India got independence, with the aim of providing adequate supply of affordable and life-saving medicines to the people of the country. The special thing is that he left his job as a chemist in Germany and laid the foundation of the first pharmaceutical company in India at a time when the medicines coming for the treatment of minor to major diseases came from foreign companies. Along with this, the pharmaceutical companies of western countries did not give much importance to India, due to which many essential medicines were not available to the needy.

Since its launch, it has created a buzz in the pharma sector. In the 60s, a big jump in the company’s income started and in 1968 its income crossed Rs 1 crore. After this the company made milestones one after the other in the pharma sector. The company’s formula for providing cheap medicines came down and affordable medicines of almost every merge in the country started being available through it.

After this the company made milestones one after the other in the pharma sector. In the 90s, by 1991, the company’s business had crossed Rs 100 crore. The most important thing is that before the beginning of Cipla, India was dependent on western companies, till now the same country had started exporting its medicines to many countries.

The formula of cheap medicines came in handy

Cipla was establishing its supremacy in the world by giving tough competition to the other big pharma companies that were already dominating the market. The company’s formula for providing cheap medicines came down and affordable medicines of almost every merge were available in the country through this. Apart from removing the shortage of medicines in the country with a large population, Cipla also created a big market abroad and about 60 percent of its income came from foreign markets. In no time, this Indian pharma company became a top firm in the manufacturing of respiratory and HIV medicines.

The way was opened for generic drugs in India

Khwaja Hameed’s vision of making medicines available to every class at low cost instead of earning, started being appreciated not only in the country but also abroad. When the country was a slave of the British, the growing steps of the Indian pharmaceutical company Cipla, which defeated foreign companies, were appreciated by Father of the Nation Mahatma Gandhi, Prime Minister Pandit Nehru to Netaji Subhash Chandra Bose. Slowly India came to be recognized as the drug capital. Be that as it may, after all, this was the company which, after a lot of struggle, finally opened the way for generic drugs in India.

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