Biocon

The Entrepreneur (Kiran Mazumdar)

- Grew up in a middle class family in Bangalore.- Couldn’t pursue dream of becoming a brewmaster, the profession was male-dominated.- Went to the UK where she met L. Auchincloss (owner of Biocon) who offered her to

open the Biocon office in India.- With the support of her parents and her strong character, she accepted.

Start of Biocon:

- Incorporated in Nov. 1978. Kiran had 70% and Auchincloss 30%.- First BioTech company in India.- Financed by Canara Bank thanks to personal contacts.- Hiring staff and finding offices was very hard.- Initial operations: extract enzymes for the UK office.

Growth of Biocon:

- 1st Phase:

o 1984, beginning of R&D efforts in other enzyme technologies.

o In 3 years, became a successful producer of sophisticated Koji enzymes.

o 1989: Unilever acquires BioCon UK and 30% of BioCon India.

o Kiran refused to sell her part in Biocon India.

- 2nd Phase:

o Biocon starts contract R&D (outsourcing) for US and UE firms.

o Biocon becomes independent entity: Kiran buys the remaining 30%

- 3rd Phase:

o Expansion into the Statins business is a success: 78% of revenues in 2000.

o Expansion into the clinical studies business is promising.

o Milestone in 2001: FDA approval in the US.

- 4rd Phase:

o In 25 years, evolved from enzymes producer to major Pharma company.

o 2004: 1ST biotech cie in Asia and #16 in the world by revenues.

o Successful IPO in 2004.

o All growth metrics are spectacular (sales, net profits…)

Characteristics of Kiran:

- Long term thinking to identify opportunities.

- Personal skills:o Perseverance. o Faith in her abilities.

o Pursuit of excellence.

Corporate culture at Biocon:

- Favorite employer for Indian scientific students:o Delegation of work as a motivation tool.o Intellectual freedom.o Informal interaction encouraged.

- Advocates women rights:o 50% of employees.o Day care centre for children.

- CSR initiatives:o Polio camps for children and Hepatitis B.o Biocon foundation: affordable health services for the poor.o Health services for rural families.o Primary education for the poor and school equipment.o Improve quality of life in Bangalore (garbage, clean water, roads)