An Incredible M&A

The second largest acquisition Indian pharmaceutical industry, SunPharma’s $4 billion acquisition of Ranbaxy is making a lot of buzz in the world. What this acquisition is pointing towards? The size of the deal is greater than anyone’s imagination so there will be a great deal of hope invested by SunPharma founder Mr Dilip Sanghvi in this acquisition.

Through this SunPharma has emerged as India’s most valuable company in the pharmaceutical segment. SunPharma was started 20 years back with a capital of 5 lakh made crores within a short time span. Not only that, SunPharma became the fifth largest pharmaceutical company in the world, through this deal, which specializes in speciality generic medicine. This is obviously a great victory for a company which started off with a single manufacturing unit in 1983, which grew so big that they started operating in 65 countries. With this move their revenue will be almost double to $4.3 million

Lets think about the global impacts of this acquisition. India will be regaining its reputation as the provider for quality and affordable medicines. The SunPharma- Ranbaxy association will help to form a formidable generic power house, which will make an impact in world’s pharmaceutical industry.

Having effectively managed compliance issues at Caraco Pharmaceuticals, subsidiary of SunPharma in the US, SunPharma is known for the efficient administrative service. They have managed the compliance issues successfully than Ranbaxy. The track records of SunPharma and Ranbaxy in the US market is strong to reinstate the lost faith in Indiann Pharma industry. Mr Dilip is known for his administerial skills while handling Israeli based Taro Pharmaceuticals.

Another possibility which came up through this acquisition is that, without getting enthangled in the FDI policies Indian companies can work well through M&A s. The strategy of M& A has cleared all the hassles of red tapism and given a fresh life to the MNC s as well as other companies also.