Cipla: Capturing the Global AIDS Drugs Market

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Case Details:

Case Code : MKTA009
Case Length : 14 Pages
Period : 2003-2004
Pub Date : 2004
Teaching Note :Not Available
Organization : Cipla
Industry : Pharmaceuticals
Countries : Global

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Background Note

Khwaja Abdul Hamied, the founder of Cipla was filled with the spirit of nationalism when he was just 15. In college, he found chemistry fascinating. He set sail for Europe in 1924, registered in Berlin University as a research student and earned his doctorate three years later. In 1935, he set up The Chemical, Industrial & Pharmaceutical Laboratories, which came to be popularly known as Cipla.

He gave the company all his patents and proprietary formulas for several drugs and medicines, without charging any royalty. On August 17, 1935, Cipla was registered as a public limited company with an authorised capital of Rs 6 lakhs.

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Cipla was officially opened on September 22, 1937 when the first products were ready for launch. Cipla attracted considerable media attention. The Sunday Standard wrote: "The birth of Cipla which was launched into the world by Dr K A Hamied will be a red letter day in the annals of Bombay Industries. The first city in India can now boast of a concern, which will supersede all existing firms in the magnitude of its operations".¹

In the 1940s, Hamied not only consolidated Cipla's operations but also pursued various social causes. His blueprint for a technical industrial research institute was accepted by the government and led to the birth of the Council of Scientific and Industrial Research (CSIR).

In 1944, Cipla bought the premises at Bombay Central and decided to put up a modern pharmaceutical works and laboratory. It was also decided to acquire land and buildings at Vikhroli.

With severe import restrictions hampering production, the company decided to start manufacturing the basic chemicals required for pharmaceuticals...

Excerpts >>

1] www.cipla.com

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