Dilip Shanghvi (born 1 October 1955) is an Indian billionaire businessman and one of the country's richest people. He founded Sun Pharmaceuticals. According to Forbes, as of October 2019, Shanghvi is the 12th richest person in India with a net worth of US$6.9 billion. Dilip Shanghvi earned a Bachelor of Commerce degree from the University of Calcutta.
He started by helping his father in his wholesale generic drugs business in Kolkata. It was during this work that he thought of manufacturing his own drugs instead of selling others' products.
Shanghvi started Sun Pharmaceutical Industries with capital of INR 10,000 in 1982 at Vapi, with one psychiatry drug. In 1997, Sun acquired Caraco Pharma, a loss-making American company, with the aim of expanding Sun's reach in the United States. Sun also acquired Israel's Taro Pharma in 2007. Shanghvi stepped down as chairman and CEO in 2012 and chose Israel Makov, formerly CEO of Teva Pharmaceuticals, as his successor; Shanghvi became managing director. In April 2014 Sun, Ranbaxy, and Daiichi Sankyo (the majority shareholder in Ranbaxy) agreed that Sun would acquire all outstanding shares of Ranbaxy for $3.2 billion in Sun stock and that Sun would take on $800M in Ranbaxy debt; the deal closed in March 2015 and made Sun the largest drug company in India and fifth largest in the world, and made Daiichi the second largest shareholder in Sun.
Sun Pharmaceuticals was established by Mr. Dilip Shanghvi in 1983 in Vapi, Gujarat with five products to treat psychiatry ailments. Cardiology products were introduced in 1987 followed by gastroenterology products in 1989. Today, it is the largest chronic prescription company in India and a market leader in psychiatry, neurology, cardiology, orthopedics, ophthalmology, gastroenterology and nephrology.
The 2014 acquisition of Ranbaxy has made the company the largest pharma company in India, the largest Indian pharma company in US, and the 5th largest specialty generic company globally.
Over 72% of Sun Pharma sales are from markets outside India, primarily in States. US is the single largest market, accounting for about 50% turnover; in all, formulations or finished dosage forms, account for 93% of the turnover. Manufacturing is across 26 locations, including plants in US, Canada, Brazil, Mexico and Israel. In US, the company markets a large basket of generics, with a strong pipeline awaiting approval from the U.S. Food and Drug Administration (FDA).
Sun Pharma was listed on the stock exchange in 1994 in an issue oversubscribed 55 times. The founding family continues to hold a majority stake in the company. Today Sun Pharma is the second largest and the most profitable pharmaceutical company in India, as well as the largest pharmaceutical company by market capitalisation on the Indian exchanges.
The Indian pharmaceutical industry has become the third largest producer in the world in terms of volumes and is poised to grow into an industry of $36.7 billion from $20 billion in 2015. In terms of value India still stands at number 14 in the world.
1987: Sun Pharma begins sale of products across India
1988: Sun Pharma launches Monotrate and Angizem, first cardiology products that are sold till today
1989: Sun Pharma introduces gastroenterology products in India
1998: Sun Pharma acquires a basket of products from Natco Pharma
2014: Sun Pharma and Merck & Co. Inc. enter into licensing agreement for Tildrakizumab (MK-3222)
2016: Sun Pharma launches Imatinib Mesylate in USA
2016: Sun Pharma launches first branded ophthalmic product, BromSite™ in USA