Lupin founder-chairman passes away at 79
DESH BANDHU GUPTA (1938 - 2017)
Lupin founder-chairman Desh Bandhu Gupta, who transformed the company from a tuberculosis drugs specialist in the 1980s to a global leader in generic drugs, passed away in Mumbai on Monday. Gupta, 79, is survived by wife and five children.
Lupin founder-chairman Desh Bandhu Gupta, who transformed the company from a tuberculosis drugs specialist in the 1980s to a global leader in generic drugs, passed away in Mumbai on Monday. He was 79 and is survived by a wife and five children.
Gupta founded Lupin in 1968, borrowing ~5,000 from his wife. It is now the sixth largest generic drugs maker in the world. Sales in 2016-17 were a little over ~17,000 crore.
Much of its growth came in the past decade, when the company ventured into newer markets and diversified its product base. It was the first Indian generic drug maker to enter Japan, by acquiring Kyowa in 2007, and the first to tap the branded generic segment in the US, in 2004. In FY17, the US market sale crossed $1 billion, close to half of Lupin’s total.
Though Lupin was not the first to make tuberculosis drugs in India, Gupta took a big leap by also setting up facilities to manufacture Active Pharmaceutical Ingredients (raw materials used in dosages) for these. Till a decade ago, the APIs contributed to nearly a third of sales.
“He saw there was a need to manufacture TB drugs in those days,” said Dilip Shanghvi, managing director of Sun Pharmaceutical Industries, the country’s largest drug maker.
When Gupta started his pharma business, the Indian market was dominated by multinationals. Among doctors, too, there was a perception issue about the quality of medicines made by local companies. These were the challenges Gupta had to overcome. "We take a lot of things for granted. He had to work hard to achieve these,” said Shanghvi. Adding: “I have been his student. I have tried to observe how he managed to retain talent.”
Former employees vouch for Gupta’s people management skills. “He had the ability to attract talent and create a vision for the company,” said Shakti Chakraborty, former head of Lupin's domestic business. “His other big achievement was a foray in Japan, the first by an Indian company.”
Over the past few years Lupin made 12 acquisitions, including an $880-million one of US drug maker Gavis, giving itself a wider base in America.
Pharmaceutical Export Council of India's former director general, P V Appaji, who has seen the Lupin’s journey from close quarters, says Gupta's professionalism laid the foundation for sustained growth.
Four years ago, Gupta passed on the reins of his company to his children Nilesh, now managing director, and Vinita, the company’s chief executive officer. Kamal Sharma, who steered the company’s growth in the last decade, was made vice-chairman. Though not involved in day to day management, Gupta was a regular to the office, mentoring the team.
In a joint statement, Vinita and Nilesh Gupta said: “We’re deeply saddened. What DB G put in motion 50 years ago in helping to create, innovate and lead in the pharmaceutical space is an unparalleled legacy. Those who knew and worked with DBG remember him giving generous ly and fostering a dynamic environment, where people could learn and grow. We’ll continue to build on his legacy and live by the values he instilled.”