Journey of Cipla

Cipla Ltd came into existence as in 1935 as Chemical, Industrial & Pharmaceutical Laboratories Ltd. The founder of Cipla, Khwaja Abdul Hamied, gave the company all his patents and proprietary formulas for multiple drugs and medicines royalty-free. On August 17, 1935, the company was registered as a public limited company. Starting with its first manufacturing unit at Bombay Central in 1936, Cipla currently has over 40 state-of-the-art manufacturing facilities globally, including in countries like the USA, China, and South Africa, along with India. In 1941, Cipla took advantage of the shortage in drug supply due to the Second World War by producing fine chemicals. In 1952, the company set up its first research division. In 1968, it manufactured ampicillin for the first time in India. In the year 1972, Cipla started the Agricultural Research Division at Bangalore for scientific cultivation of medicinal plants. In the year 1985, US FDA approved the pharma company's bulk drug manufacturing facilities. Over time, Cipla has become one of the biggest global brands, with multiple facilities and products launched over the years.

Business Segments of Cipla

Cipla is the third-largest pharmaceutical company in India. One of the biggest product categories of Cipla is finished medicines. The company has a diversified portfolio of more than 1,500 products in over 50 dosage forms and 65 therapeutic categories. It is a market leader in therapies such as those in respiratory and urology. It is also the 2nd largest Indian exporter in emerging markets, including the market in South Africa. Cipla is also a major producer of APIs or active pharmaceutical ingredients. It partners with major generic pharmaceutical companies in order to support their supply chain. Geographically, the market in India counts for slightly less than 50% of its revenues, while North America supplies around 22% as of September 2023. In 2021, it had around 55 subsidiary companies. The list includes both domestic subsidiaries like Meditab Specialities Pvt. Ltd. and Cipla BioTec Pvt. Ltd., as well as foreign subsidiaries such as Cipla BioTec South Africa (Pty) Limited and InvaGen Pharmaceuticals Inc.

Key Personnel of Cipla

• Mr. Umang Vohra, Managing Director & Global Chief Executive Officer

Mr. Vohra has been the MD and Global CEO of Cipla since September 2016. He has previously worked with Eicher Motors, PepsiCo and Dr. Reddy’s Laboratories. With a distinguished career spanning almost two decades in both India and the US, Mr. Vohra comes with a deep understanding of the various aspects of the global pharmaceutical business.

Corporate Actions

The following are some of the key corporate actions undertaken by Cipla in the past few years: Bonus Shares Cipla had last announced a bonus share issue in 2006 in the ratio of 3:2. Split Stocks Cipla had last split the face value of its shares from ₹10 to ₹2 in 2004. Cipla has not had any rights issues or buyback of shares.

Mergers and Acquisitions

• During FY 2018, Anmarate (Pty) Limited was gained complete control of in South Africa as a part of a strategy to strengthen its OTC portfolio.
• In February 2016, Cipla‘s UK arm, Cipla (EU) Limited, successfully completed the acquisition of InvaGen Pharmaceuticals Inc. and Exelan Pharmaceuticals Inc.
• In July 2013, Cipla gained complete control of 100% of the issued shares of Cipla Medpro South Africa Ltd. for ZAR 4507 million (₹2,707 crore).

Management Outlook

In 2020-23, Cipla optimised its business models, restructured its portfolio, and strengthened its competitive position in key geographies. Throughout the pandemic, Cipla upscaled its capabilities to ensure the widespread availability of quality medicines. The company has also invested in automation and digitisation to drive sustainable efficiencies across its portfolio selection, manufacturing, supply chain, and quality operations.