DRL was founded in 1984 by Dr. K. Anji Reddy (Dr. Reddy) to create and deliver innovative pharmaceutical healthcare solutions. DRL became a public limited company in 1985 and had an IPO of equity linked debentures aggregating Rs.24.6 million in May 1986. During the 1990s, the company consolidated its position in the domestic formulations market through aggressive product launches as well as acquisitions. By late 1990s, DRL transformed itself into a global pharmaceutical powerhouse with research and drug development as its strengths. In 2000, DRL hired Enterprise IG (EIG)1, to implement its new corporate identity plan. The whole exercise was completed in a year and evolved over nine stages, beginning with an across-the-board study of the perceptions of different stakeholders and ending in a brand manual that was to be implemented by the employees. In the new corporate identity, changes were carried out at two levels—i) institutional: implemented throughout the company, and—ii) at a more individual level surrounding the persona of the founder, Dr Reddy. The new corporate identity plan also emphasized control of the top management should be passed onto to the second generation: Dr Reddy’s son-in-law and Chief Executive Officer, GV Prasad (Prasad), and son and Chief Operating Officer, Satish Reddy (Satish). Analysts felt that DRL was too closely identified with its founder. It was this realization that prompted Dr.Reddy, to make way for other professionals. The study undertaken prior to the formulation of the new corporate identity plan showed that while DRL’s strengths as a research and development company were widely recognized, its other attributes like professionalism and quality consciousness, were less evident. The new corporate identity was designed to emphasize these attributes of DRL. Explained Manoj Tadepalli, Senior Consultant, EIG, “The new image was tailored to bring out these attributes that were subdued.” The new corporate identity was forged from the merger of DRL, Cheminor Drugs Ltd. (CDL) and American Remedies Ltd. The subsequent increase in the size of DRL and the company’s global ambitions called for the creation of multiple leadership levels. Prasad said, “This meant that the three of us moved away from the role of an operator to don the mantle of a strategic controller. This also means that it has to be a nose-in but hands-off approach, which was a fundamental shift from an entrepreneurial company to a professionally oriented set up.” The new corporate identity also aimed to create a flatter organization structure and to inculcate a stronger performance ethic within the company. One of the objectives of the new identity exercise was to bring energy to the workplace and change the way people perceived work. Other objectives included retaining talent, and speeding up the process of developing products based on the research they have undertaken. However, the main aim of the entire exercise was to establish DRL as a global pharmaceutical major.

1. By late 1990s, DRL transformed itself into a global pharmaceutical powerhouse with research and drug development as its strengths. Then why did it try to change its identity all of a sudden? 2. What were the changes that were carried out at DRL as a result of a study undertaken prior to the formulation of the new corporate identity plan?