The Hindu Business Line : Pharma kids

Zahabiya Khorakiwala juggles her time between running `Tapioca Bar', an alternate café, and clinical research. Anuj Saxena balances his workday at office with a career on television as prime-time hero. Malvinder Singh has a passion for photography. Sameer Hiremath's love for chemistry nearly set off a fire at home! Anand Piramal dreams of an `Indian awakening' while Dr Akshay Batra hopes to popularise traditional medicine.

Dr Akshay Batra

Meet the young turks who have picked up the reins (or hope to, at a later date) in India's sunrise sector, the estimated Rs 30,000-crore pharmaceutical industry. These "pharma kids" are fired by the desire to take their respective pharma and healthcare companies into the global arena.

"It was a tough time in 1997 when we found out about my Dad's illness. I had to be with him and yet could not give up my studies in the US; I had to take the difficult decision of continuing with my studies. But I also had to plan for taking on higher responsibilities earlier in life," says Ranbaxy's President (Pharmaceuticals) and Executive Director, Malvinder Singh, recalling how he entered the business.

The late Dr Parvinder Singh, former Chief Executive Officer and Managing Director of Ranbaxy, is regarded as the doyen of the pharmaceutical industry. His untimely death in 1999 forced his two sons to step into his shoes, no mean task.

Shivinder Singh (left) and Malvinder Singh

Malvinder's younger brother, Shivinder Singh went into healthcare since he enjoyed the customer interface. He runs Fortis, a hospital network promoted by the Ranbaxy family.

"It gives me the opportunity to do something that can directly alter life and give people the gift of health; and last, but not the least, it allows me to bring in world-class health delivery standards," says Shivinder.

All in the family

Family ties are an important factor among the other pharma kids too. Elder Pharma's Alok Jagdish Saxena was an early entrant in the pharma industry. "In fact, even while attending college I was already doing an apprenticeship in the export department of a pharma company," he says. A second-generation member of the pharma family, Alok reflects: "I learnt a lot from my father (Jagdish Saxena). Especially on the international front and working with alliance partners."

A valuable learning indeed, given that Elder Pharma's business model involves striking alliances with other pharma companies. Alok's brother Anuj Saxena is a familiar face on prime-time television, playing the lead role of Abhay in Sony TV's teleserial Kkusum. Though acting is a passion with Anuj, he stumbled into it by accident. "I wanted to be a doctor. My father had started the pharma business, which was flourishing. Father needed more hands so I entered the business." Their sister Shalini Kumar handles the company's medical devices segment.

Anuj Saxena

But it was a different kind of accident that kindled Sameer Hiremath's interest in Hikal. His chemistry experiments at home nearly set off a fire! "My father, who founded Hikal, used to take me to the factory where I was fascinated by the array of reactors, pipes etc. As a child I was exposed to the business talk at home, maybe this also kindled a desire within me," he recounts. His sister Pallavi Swadi is a business analyst with Fidelity Investments in New York.

Sameer Hiremath

All three children from the Khorakiwala family are involved with Wockhardt's pharma and healthcare business. Huzaifa Khorakiwala, the eldest son, is Director, Mother & Child Care Division, Animal Health Division, and Corporate Administration. The second son, Dr Murtaza Khorakiwala is Director, International Business Development. And Zahabiya, the daughter, works at the company's clinical research centre.

Also in the realm of healthcare, Dr Akshay Batra perhaps has it easier than the two generations that preceded him. His father, Dr Mukesh Batra, reflects on the past when homeopathy received step-motherly treatment. Financial institutions, for example, would not fund any homeopathic venture.

Today, homeopathy is more accepted globally, but even at the crossroads of his student-life Dr Akshay Batra was sure of his choice. Having grown up watching his father heal people through homeopathy, he decided it would be his only choice for a career.

Some of the other scions in the pharma industry include Dr Anji Reddy's son, Satish Reddy, who is Managing Director and Chief Operating Officer with Dr Reddy's Laboratories Ltd. And there is Glenn Saldanha of Glenmark Pharma. His brother Mark Saldanha is at the helm of Glenmark Laboratories. So, the two run two separate ships.

But it's early days yet for 20-year-old Anand Piramal. An economics student at the University of Pennsylvania in Philadelphia, he started a youth movement called DIA or Dreaming of an Indian Awakening, three years ago. This non-profit educational initiative by the youth and for the youth, works on development projects, says mother Dr Swati Piramal of the Nicholas Piramal group. Anand's older sister, Nandini, an MBA student at Stanford University, is currently doing her internship with a leading biotech company in California. She too has a deep interest in community projects.

Anand Piramal with President Dr A.P.J. Abdul Kalam

Winds of change

For the second and third generations in pharma families, 2005 has been a year that has changed many rules of the game. Making copycat drugs has become difficult owing to global trade commitments and patents issues. This meant that new drugs in the market would command a premium, as copycat versions were outlawed.

Pharma's generation-next is at the helm at a time when domestic drug majors are forced to invest in research and develop innovative medicines to keep abreast of competition. "I am guided by my passion for healthcare which is the biggest inspiration... My dream extends beyond making Ranbaxy a global pharmaceutical company, it means bringing quality healthcare to India, tapping India's capabilities in New Chemical Entity research and delivering world-class products and services at affordable and competitive prices worldwide," says Ranbaxy's Malvinder.

Ranbaxy achieved the billion-dollar landmark in 2004 and has a medium-term goal of clocking $2 billion by 2007. By 2012, Ranbaxy aspires to be amongst the top five global generic players with a turnover of $5 billion through a significant contribution from the proprietary prescription products business.

Fortis' Shivinder dreams of creating world-class medical institutions, in line with his father's vision. "An integrated healthcare delivery system, entailing the finest medical skills combined with compassionate patient care," he elaborates.

Smooth takeovers...

Meanwhile, 31-year-old Sameer wants to take Hikal past the Rs 1,000-crore mark over the next few years. Having spearheaded the IT-integration of his company, he says: "There is a general feeling that professionally-run companies are better managed. I feel that a combination of family-run business and professionals is also a good option. Many of the first and second-generation entrepreneurs are well educated and even have work experience in global companies. Plus they have loyalty, a selfless attitude and care for the well being of the organisation."

His sentiments are echoed by the other pharma-kids as well, and this is particularly relevant at a time when family-run businesses are in the spotlight over the high-profile settlement between Reliance's Ambani brothers. Ranbaxy's Malvinder stresses on the camaraderie he shares with his brother. "We look quite similar yet we are quite distinct as individuals, " he says. "Both of us role-play for each other often, we complement each other in terms of having the same value system, are very close and supportive, and draw a lot of strength from our close-knit family. We respect each other's space and behave more like equals and friends."

Despite shouldering different roles and responsibilities in the family business, they were united by their objective to fulfil the vision of their late father, he says. Elder Pharma's Alok and Anuj also dream of making their company a global player. But in the days ahead the pharma kids' mettle will be tested by the product-patent regime and the prospects of intense competition and consolidations.

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