SUPPLY CHAIN AND

LOGISTICS
OF
DR.REDDYS
LABORATORIES
By Himanshu Shekhar
Chairman - Dr. K. Angi Reddy
Dr.Reddys Lab Ltd
Type Public
Tradedas NSE:DRREDDY BSE:500124 NYSE:RDY
Industry Pharmaceuticals
Founded1984
Headquarters Hyderabad,Telangana, India
Key people Anji Reddy(Founder) G. V. Prasad(CEO) Kallam Satish
Reddy(Chairman)
Revenue$2.3 billion(2014)
Net income$350 million(2014)
Number of employees 20,000(April 2015)
Website www.drreddys.com
TAGLINE/SLOGAN: Life. Research. Hope.
USP: Strong Vertically integrated Portfolio of Products,
Businesses & Geographies.
TARGET GROUP: Healthcare Professionals, Retail Outlets
POSITIONING: Committed to Providing Affordable &
Innovative Medicines for Healthier Lives.
 Company Background
Dr.Reddys Laboratories Ltd founded in 1984 by Dr.
Kanga Reddy and has become Indias second biggest
pharmaceutical company and its headquartered is in
Hyderabad.
It produces and sells active pharmaceutical ingredients,
finished dosages and biologics.
It manufactures ulcer medicines, antibiotics, pain
relievers, antidepressants and cardiovascular drugs.
Controlling the entire Value Chain
Dr. Reddys controls the entire supply chain and offers
high quality products at competitive prices at opportune
time .
In addition it ensures that quality is maintained at every
stage.
Industry Classification
Pharma
Pharma

Contract
Contract
Bulk
Bulk Drugs
Drugs (API)
(API) Formulations
Formulations
Research
Research

Patented
Patented Generics
Generics

Generic
Generic Branded
Branded
generics
generics generics
generics
STRATEGIC GROUPS IN THE INDIAN PHARMA INDUSTRY

Domestic
Formulation

Global DR. REDDYS LAB

Branding
NOVO
NORDISK RANBAXY

Glaxo
Generics Smithkline

TORRENT SANOFI-AVENTIS
Torrent
Local
Branding CIPLA
CIPLA International
Formulation

Applied R & D Basic R & D

Supply Chain
SWOT Analysis of Dr. Reddys
Strengths
Partnerships with key players in
the market keeps its cost base
down
Research Driven & Global
Opportunities
Take a drug all the way to market
Take a molecule from its pipeline
all the way to the market place
cost-effectively market
Increase domestic footprint in
generics
Weaknesses
Over-reliance on partnerships
Lack of resources similar to US
and Europe based competitors to
develop a drug to marketing
Threats
Needs to gain FDA approval for
all sources and products
Products have to pass strict FDA
trials before going to market,
which can be costly and time
consuming
 DRLs Strategic Goals
Glob
al
Phar
Longer Term (6-7 years) mac
eutic
al
com
pany
Mid Term (3-6 years) Integrated global mid
sized pharmaceutical
company

Today Diversified emerging generics &

specialty company
Dr Reddys Infrastructure & Capabilities :

Pharma services & Product

Global Generics
Active ingredients Development
6- FDA approved 7 Formulations Integrated product
plants in India plants in India (US development
1 Cytotoxic facility FDA inspected) capabilities that
1 Plant in Mexico 2 FDA inspected include API
1 FDA approved plants in USA development,
Formulations
plant in Mirfield, UK
development and
4 Technology analytical
Development development skills.
Centres ( 2 in One integrated
Hyderabad, 1 in
Product
Cambridge, and 1
Development
in Leiden,
facility in
Netherlands
Hyderabad, India.
 New Chemical
Biologies Plan
Entities (NCEs)
Research in Biological To set up R&D
the areas of development centre at New
metabolic, centre Jersey, USA
cardiovascular, GMP GSK-Dr
anti-bacterial, production Reddys
and pain & E coli and alliance to
inflammation. mammalian register their
cell platforms 1st product in
the EU in 2014
 o u!
n k y
T h a