Amazing Business Model & Success Story of Granules India
Granules India - About
Granules India is a pharmaceutical company that was founded back in the year 1984. The company has its headquarters based in Hyderabad and is responsible for manufacturing several off-patent drugs. Some of them include drugs like paracetamol, Ibuprofen, Metformin, and Guaifenesin on a large scale for customers in the regulated and rest of the world markets.
The company manufactures high-quality API, FD, PFI, and other specialty products with a focus on customer-centricity.
| 1 | Type | Public |
| 2 | Traded as | BSE: 532482 |
| 3 | NSE: GRANULES | |
| 4 | Industry | Pharmaceuticals |
| 5 | Founded | 1984 |
| 6 | Founder | Mr. Krishna Prasad Chigurupati |
| 7 | Headquarters | Hyderabad, India |
| 8 | Area served | Worldwide |
| 9 | Key people | Krishna Prasad Chigurupati (CMD), Harsha Chigurupati (ED),Sandeep Neogi (CFO), GSR Prasad(COO), Priyanka Chigurupati (ED) |
| 10 | Products | Paracetamol, Ibuprofen, Methocarbamol, Metformin, Guaifenesin, etc. |
| 11 | Revenue | FY 2018–19 |
| 12 | INR 2,279 Crore | |
| 13 | Net income | FY 2018–19 |
| 14 | INR 236 Crore | |
| 15 | Number of employees | 2789 |
| 16 | Website | www.granulesindia.com |
The company’s vision statement states that ‘To be the global leader in pharmaceutical manufacturing by process innovation and unparalleled efficiencies.’ Whereas the mission statement of the company states that, ‘Our drive to be the best is unparalleled. We will match our drive by partnering with global leaders in our markets, building lasting relationships, and foundation for mutual growth and success.’
The company always wants to keep its customers prioritized so that they can get the best-manufactured pharmaceutical and other necessary products. The company believes in continuous enhancement which helps them develop enhanced value products, processes, and services in pursuit of excellence.
Granules India - How It Works?
Granules India as mentioned earlier is responsible for manufacturing pharmaceutical items and drugs. It is a fully integrated pharmaceutical manufacturer. The company manufactures APIs (Active Pharmaceutical Ingredients), PFIs (Pharmaceutical Formulation Intermediates), and FDs (Finished Dosages) which are distributed in more than 50 countries worldwide. Let us see in detail how each of these (APIs, PFIs, and FDs) has created a huge business for the company globally.
Active Pharmaceutical Ingredient
- The company is the leader in manufacturing drugs like Paracetamol, Metformin, Guaifenesin, and Methocarbamol.
- It uses cost-effective methods for manufacturing APIs with a focus on continuous manufacturing.
- Granules India is a contract manufacturer for strategic customers globally.
- The brand has its products marketed to over 80 countries across the world.
Pharmaceutical Formulation Intermediates
- The company pioneered the concept of commercializing PFIs with the objective to reduce the cost economics of its products.
- The company is known to be the largest PFI producer in India.
- It is also a contract manufacturer for strategic customers across the globe.
Finished Dosages
- The company is an integrated manufacturer of Rx and OTC products.
- In this segment,, the company has the ability to develop and manufacture tablets, capsules, press fits, oral solutions, suspensions, and powder for oral solutions.
- They have the ability to package in bulk, bottles, and blisters.
- It is also a contract manufacturer for strategic customers across the globe.
Granules India - Target Market Size
Granules India has got a huge market size not only in its home country but away at the international level as well. The company has become one of the biggest manufacturers for many pharmaceutical drugs and other related items.
It is responsible for not just manufacturing them but also distributing them to more than 50 countries worldwide. Therefore, it can only be imagined the market size of Granules India today.
The company also provides contract research and manufacturing services as well. The company’s key clients include leading generic and branded pharmaceutical companies from all across the globe. The products that they come up with can be consumed by regular consumers who are in need of it. All in all, the market size of Granules in India is huge since it manufactures some significant off-patented drugs like Paracetamol.
Granules India - Founders and Team
Founder of Granules India is Mr Krishna Prasad Chigurupati. He is also the founder of Triton Laboratories Pvt Ltd. He is currently the Chairman & Joint Managing Director at Granules India. Mr Krishna Chigurupati has got immense knowledge and experience in the pharmaceutical industry which is almost more than three decades.
It was back in 1984, when he had set up a paracetamol manufacturing facility which has become one of the most popular manufacturers in the world. His core team members include the following people.
- Harsha Chigurupati (ED)
- Sandeep Neogi (CFO)
- GSR Prasad (COO)
- Priyanka Chigurupati (ED)
- Uma Rao (CHRO)
Granules India - How It All Started?
The company was formed back in the year 1984 as Triton Laboratories. The company manufactured Paracetamol API at its factory in Bonthapally which is located on the outskirts of Hyderabad. Later, scientists working on Triton had found out a much better and more efficient way to produce the Paracetamol API which ultimately led to lower capital and requirements for raw materials.
By the year 1987 arrived, Triton became the only Indian company apart from Dr Reddy’s Laboratories to export its manufactured pharmaceutical products to the United States.
It was a necessary step that had to be taken by Triton to distinguish itself from its competitors. This is why the company pioneered the concept of manufacturing and selling in bulk granulated Paracetamol. By the year 1990, the company had already opened its second manufacturing facility at Jeedimetla to produce multiple APIs at a time.
It was only in 1991 when the management of the company had decided to give the company a new identity and soon it was incorporated as Granules India Limited. In the year 1995, Granules had become a public company, only after having initial public offerings on the Bombay and Hyderabad Stock Exchanges.
The growth of the company has always been at its peak. It was in the year 2013, when Granules India acquired Auctus Pharma for a whopping amount of INR 120 crore. Currently, the company has seven manufacturing facilities where six facilities are in India and the seventh is a joint venture with Hubei Biocause in Wuhan, China. The company has got two of its research centers located in Hyderabad and Pune.
Granules India - Name, Tagline, & Logo
The name Granules was a decided name by the management made back in the year 1991. Prior to this the company was functioning its business as Triton Laboratories. The company does not have a tagline of its own but believes that they only want what’s best for customers all across the globe.
The company did participate effectively in its several marketing campaigns. The events proved to be successful for the company because they got a chance to give and take valuable information during these campaigns.
The logo of the company is shown as the first initial of the word ‘Granules’. It is seen that the design is quite simple yet an attractive one. We can also see that the design of a pill or a tablet is also designed on their logo depicting that it is a pharmaceutical company.
Granules India - Business & Revenue Model
Granules India company’s primary business is to manufacture off-patent drugs and not only sell them in India but export them off to other countries worldwide. The company has entered the CRAMS segment, which focuses on contract research and manufacturing.
The active pharmaceutical ingredients (API), pharmaceutical formulation intermediates (PFI), and finished dosages (FDs) contribute about 31%, 18%, and 51% of the revenue of operations, respectively for Q4FY2023.
The company’s net profit increased by 8% to a whopping amount of INR 120 crore in the fourth quarter that ended on March 31st, 2023, compared with INR 111 crore in the same period last year. The revenue of this Hyderabad-based company increased to around 16% to INR 1195 crores against INR 1030 crore in the year-ago period.
Granules India - Funding & Investors
Granules India is funded by MAPE Advisory Group. MAPE was set up as a financial services company that was set up back in the year 2001. The company was founded by a team of senior bulge-bracket investment bankers with excellent individual track records of closing high-profile transactions.
MAPE Advisory Group is the investor in this company. The company was incorporated as a private limited company but it was in 1993 when it was converted into a public limited company.
Granules India - Growth
The growth of Granules India has so far been magnificent. The company is already earning crores of revenues every year. The company has opened up several manufacturing facilities and has also got its own research centers as well. It was in the year 2013 when the company made its first acquisition of Auctus Pharma for a whopping amount of INR 120 crore.
Three years later in the year 2016, Granules India commissioned a new state-of-the-art manufacturing unit that hosts facilities for Oncology and High Potent APIs. This new plant is located in Visakhapatnam. The company had commissioned the world’s single largest PFI plant in Gagillapur back in August 2003 with a batch size of 6 MT and an annual capacity of 7200 MT per annum.
Granules India - Awards & Recognitions
- CII Champions Trophy-Platinum Award 2020
- Smart Pharma Award 2018
- 37th CII National Kai-Zen Competition - Innovation Award 2020
Efforts made by the company over the years have been recognised by CRISIL, which is an S&P Global company, with a healthy score among the pharmaceutical companies in their ESG Gauge of the top 225 Indian companies.
Granules India - Future Plans
The future plans of Granules India seem very promising as they look to bring a lot of innovative solutions and changes in their customer experience. The company will be spending about INR 250 crore on its backward integration and INR 150 crore on its greenfield formulation manufacturing unit in Genome Valley near Hyderabad. The company is in the midst of capacity expansion which will take its tablet capacity from 23-24 billion to around 29 billion.