Biocon- Case Study

Presented By: Javed Akhtar- 010066 MD Anwar Khan- 010083 Kuntal Chakraborthy- 010076 Pawan Singh- 010102 Rahul Prajapati- 010115

Biocon
Industry: Biotechnology Founder: Kiran Mazumdar Shaw Founded in: 1978 Revenue: INR 28.14 Billion Headquarter: Bangalore, India

Introduction
Biocon India, is the brainchild of a woman, Kiran Mazumdar Shaw. It was her spirit of entrepreneurship that led to the formation of this company in 1978 in Bangalore. It was started in the rented garage with seed capital of INR 10,000 in Bangalore. In 2004 Biocon went in for Initial Public Offering(IPO) of 10 Million Equity Share of INR 5 each. Its shares were oversubscribed 33 times with most of its bids coming at the upper end of INR 275-315 price band.

Kiran Mazumdar Shaw

She was born and brought up in Bangalore. She completed her specialisation in Malting and Brewing Technology from Ballaret College in Melbourne. She started Biocon India in joint venture with Biocon Biochemical Ltd (Ireland) in 1978 with 70% stake in it. She started Biocon with manufacturing papain, with the technology imported from Ireland. In 1979 Biocon became the first Indian company to manufacture and export enzymes to US and Europe.

Product Portfolio
A) Small Molecules
Anti Diabetic Agent Anti Oxidant

B) Biological
Insulin EPO C) Dosage from Cardio Diabetes Range Enzyme

Cont.
D) Product Range
Enzymes Food addictives

process AIDS
E) End use Industries Beverage Detergents Leather

Rise Of Biocon
In 1994, Biocon India along with a group of international scientist set up Syngene International Private Ltd, a contract research company.
The promoters of Biocon India negotiated with ICI and acquired the equity holdings of ICI in Biocon India, thus making it an independent entity in 1999. In 2000 Biocon underwent restructuring and also set up Clinigene International Ltd in India as a subsidiary of Syngene International, to conduct clinical studies.

Financial Complication
In 2000, Kiran wanted to hive off Biocon as an independent entity. She failed to gather enough money from financial institution as they were hesitant to fund a woman entrepreneur. Finally Canara bank agreed to fund her, later ICICI ventures funded her first enzymes technology by acquiring a 10% stake at INR 15 Crore. Exim Bank also came forward to support the companys Export marketing efforts.

Obstacle in Hiring
Hiring competent employees initially had been a problem for Biocon as it was unable to pay high slaraies. But by the turn of 21st century Biocon became one of the most preferd employer in India. With its strong intellectual capital Biocon invested heavily in R&D, which totaled 5% of its turnover in 2003.

Proliferation of the Company

The company launched itself into the next phase of expansion transforming itself from a biotech enzyme company to a biopharmaceutical company by shifting its focus from a drug research company to drug development company. It started to increase its pharmaceutical product line. Moving to 21st century it splitted into two main units- Biochemizyme India Ltd and later Biocon Quest India Ltd.

Top 5 Biopharma Co. in India

Biocon India Panacea Biotech Wockhardt Haffkin Biopharma Eli Lily India

Biocons CSR Wing

While Biocon was involved in community programs from inception, it started a corporate social responsibility wing the Biocon Foundation in 2004 through which it works in the areas of health, education and infrastructure, especially in rural areas.

Achievements
Indias largest producer and exporter of enzymes.
First Indian company to manufacture and export enzymes to USA and Europe.

Sets up India's first clinical research organization, Clinigene (2000).

First Indian company to be approved by US FDA for the manufacture of lovastatin, a cholesterol-lowering molecule (2001).

Thank You