With changing lifestyles and times, high blood pressure is a common health problem. It seems to affect almost every other person in India. You’ve likely heard of medications like Propranolol and Losartan, popular choices for managing hypertension. But who produces these widely used drugs? One company, a major supplier of APIs, has been dedicated to addressing our health concerns since its establishment in 1949. As of the quarter ending March 2024, they reported an annual income of ₹1526.72 crore. So, what’s the story of Ipca Laboratories?
Let us see!
Ipca Laboratories Limited| An Overview
| Establishment | 1949 |
| Founder | K.B. Mehla, Dr. N.S. Tibrawala |
| Products | 80+ APIs and 350+ Formulations |
| Global Presence | 120+ Countries |
| Brands | 175+ |
| Key Executives | Ajit Kumar Jain (MD & CFO), Pranay Godha (MD & CEO) |
| Market Cap | ₹ 30,521 Cr. |
| Turnover (March 2024) | ₹ 6,166.46 Cr. |
Ipca Laboratories History
With over 70 years of its presence, the history of Ipca Laboratories is extensive. The company’s beginnings in 1949 coincided with a challenging period in newly independent India.
However, driven by a clear vision, Ipca Laboratories has since expanded its footprint across 120+ countries.
Let’s take a brief walk down memory lane to explore Ipca’s history further.
In 1949, Ipca Laboratories was established in Mumbai as ‘The Indian Pharmaceutical Combine Association Limited’.
Do you know about Ipca founders?
They were a group of medical professionals and businessmen. It is said that the company was promoted by Dr. N.K. Chaina, Dr. A.M. Desai, Dr. N.S. Tibrawala, K.M. Shroff, S.F. Kirawal, U.H. Dalal and K.B. Mehla.
Transitioning to 1964, the company rebranded as ‘Ipca Laboratories Ltd.’ and underwent subsequent name changes. It finally became a public company in 1993.
How did these transformations work in its favour?
By 1975, a new management team, including iconic figures like Amitabh Bachchan, Ajitabh Bachchan, Jaya Bachchan, M.R. Chandurkar, and P.C. Godha, took charge.
This change influenced the Ipca Laboratories’ history amidst a turnover of just Rs. 0.54 crores.
Moving to 1994, Ipca initiated the establishment of a state-of-the-art plant in Athal, Silvassa. This expansion included Plant and machinery comprising auto tablet coaters, blenders,, fluid bed dryers, etc.
In 1995, Ipca Laboratories took significant steps to strengthen its financial footing:
They issued a total of 9,225,000 equity shares to promoters, friends, relatives, and associates, including 225,000 Rights shares at Rs 120 per share.
Additionally, they issued 3,275,000 shares at Rs 10 each, with a Rs 120 premium per share.
How did this initiative impact Ipca’s ownership structure?
In 2002, R S Hugar, former managing director of Global Trust Bank, assumed the role of non-executive chairman on Ipca’s board, starting June 11th.
In 2003, Ipca Laboratories achieved several milestones:
They launched ACTIVA, India’s first domestic marketing division dedicated to Rheumatology Care.
The introduction of Hy Care followed the above; It was another new division focused on Cardio-Diabetology segments.
Ipca also established wholly owned subsidiaries: Ipca Pharmaceuticals Inc. in the USA and Ipca Laboratories (UK) Ltd. in the United Kingdom.
Notably, Forbes recognised Ipca among its top 200 successful companies outside the USA with sales under USD 1 billion.
Moving to 2004, Ipca Laboratories made another big move!
Ipca also introduced ‘Sultax’, a novel injectable antibiotic combination, pioneering this treatment in India. For export promotion, it received the ‘Lifetime Achievement Award’ from CHEMEXIL.
In 2006, Ipca Laboratories set its sights on the US market, joining forces with Ranbaxy Pharmaceuticals Inc.
Transitioning swiftly into expansion mode, Ipca’s state-of-the-art plant in Dehradun kicked off operations on May 5th, 2006.
Fast-forward to 2007, when Ipca’s collaboration with Ranbaxy bore fruit, they clinched U.S. FDA approval for Atenolol Tablets.
Simultaneously, Ipca earned another accolade from the FDA for their Hydroxychloroquine sulfate tablet.
Not content with domestic success alone, Ipca made strategic moves internationally by acquiring full ownership of formulation dossier registration holding companies in Australia and N.
Back at home, they launched ‘Altus’, their eighth division.
Recognition came knocking as well. In 2007, Forbes Inc. bestowed upon Ipca Laboratories the title of ‘Best under a Billion’ in Forbes Global’s 200 Best Small Companies.
The company had previously won the same award in 2003, 2004, and 2005.
In 2008, Ipca Laboratories achieved several key milestones:
Ipca Laboratories also re-appointed Mr. Premchand Godha as Managing Director.
Moreover, Ipca-Piparia, their formulation manufacturing unit, received MHRA-UK approval, marking its third facility to achieve this prestigious qualification.
Ipca Laboratories Ltd is the second company globally and the first Indian company to receive WHO prequalification for their ARTESUNATE + AMODIAQUINE Co Blister.
From Struggles to Success: The Rise of Ipca Laboratories
Premchand Godha and Amitabh Bachchan’s family transformed a struggling pharmaceutical company into a Rs 28,000 crore powerhouse. Premchand Godha was originally a Chartered Accountant who managed Amitabh Bachchan’s accounts.
Later, he became a business partner with the Bachchan family in 1975.
Together, they acquired Ipca Laboratories, founded by an Englishman in 1949.
Since then, Ipca has evolved into a leading pharma manufacturer with an impressive market capitalisation.
Premchand Godha, from a farming family in Rajasthan, is now one of India’s wealthiest individuals. As chairman of Ipca Labs, a company with a revenue of $711 million, he oversees the production of bulk drugs, drug intermediates, and formulations.
During the 1990s, Amitabh Bachchan’s brother, Ajitabh Bachchan, chaired the company.
However, financial challenges faced by the Bachchan family in 1999 led to the sale of their stake, ending their association with Ipca.
Under Godha’s leadership, Ipca transformed financially, with turnover soaring from Rs 54 lakh to Rs 4,422 crore.
At 71 years old, Premchand Godha, Ipca Laboratories owner, is now a billionaire with a net worth exceeding Rs 10,800 crore ($1.3 billion).
About Ipca Laboratories Limited
Ipca is a global pharmaceutical company dedicated to improving health since 1949.
For over 60 years, Ipca Laboratories has been a key healthcare partner in more than 120 countries across six continents. As a fully integrated pharmaceutical company, Ipca manufactures over 350 formulations and 80 APIs.
Since 1949, Ipca’s network of manufacturing units has expanded to 15 locations across the globe.
Driving Industry Progress
- Ipca is one of the largest suppliers of APIs worldwide, with manufacturing leadership in over 12 APIs globally.
- Ipca operates 15 APIs and 11 formulations manufacturing facilities across the globe.
- In India, Ipca leads in pain, rheumatology, antimalarials, and hair care therapy.
- IPCA Laboratories Subsidiaries– As of 2024, Ipca has around 10 subsidiaries spread globally.
Ipca Laboratories Subsidiaries-
| Ipca Pharma (Australia) Pty. Ltd., Ipca Pharma (NZ) Pty. Ltd., Ipca Pharma Nigeria Ltd., Ipca Pharmaceuticals, Inc., USA, Pisgah Labs, Inc., USA, Bayshore Pharmaceuticals LLC, USA, Ipca Pharmaceuticals Ltd. SA de CV, Mexico, Onyx Scientific Ltd., UK, Trophic Wellness Pvt. Ltd., Ipca Foundation. |
- IPCA Market Cap- ₹ 30,521 Cr.
- Ipca Laboratories Turnover- ₹6,166.46Cr, as of March 2024
- Ipca Laboratories Founder– K.B. Mehla and Dr N.S. Tibrawala
- IPCA Laboratories Owner- Premchand Godha and Family,
- IPCA Laboratories Products- Pharmaceutical drugs, generic drugs, antiviral drugs, over-the-counter drugs, vaccines.
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Ipca’s Commitment to Renewable Energy and Sustainability
Over the past five years, Ipca has invested over Rs. 170 crore (USD 20 million) in setting up 36.57 MW of captive solar and wind projects. These projects have successfully replaced an average of 26% of total power consumption with renewable energy.
The areas that come under this are the manufacturing units in Maharashtra, Silvassa, Gujarat, and Madhya Pradesh.
Ipca Laboratories continues to lead the way in renewable energy and sustainability, ensuring a greener and healthier future globally.
FAQs| IPCA Laboratories Ltd.
The current owner and the Chairman & Managing Director of Ipca Laboratories is Premchand Godha.
The full form of ‘Ipca’ in Ipca Laboratories is ‘The Indian Pharmaceutical Combine Association Limited’.
Ipca Laboratories manufactures pharmaceutical drugs, generic drugs, antiviral drugs, over-the-counter drugs, and vaccines, used for various therapeutic purposes.
Source- financialexpress.com, ipca.com, moneycontrol.com
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