Pushing For Holistic Growth: Murali K. Divi, MD & CEO, Divi's Laboratories

Divi’s Laboratories has grown to be among the top generic drug makers in the country focused on active pharmaceutical ingredients (API) and intermediates. The company not only commands 60-85 per cent of the global market share in generic naproxen, dextromethorphan and gabapentin APIs today, it also produces nutraceuticals as well as undertakes custom manufacturing for Big Pharma.

And all this has been achieved over the last three decades when US-trained scientist Murali Divi founded Divi's Laboratories in the 1990s. In its early days, it was known as Divi's Research Centre. After 1994, it was renamed Divi's Laboratories signalling his intent to enter the API and intermediates manufacturing market.

Sound Financials
The company’s success is also reflected in its sound financials. In FY22, total income stood at Rs 8,991.08 crore, while consolidated total revenue was Rs 9,074 crore, as against Rs 7,032 crore during the previous year, reflecting a growth of 29 per cent. Profit after tax (PAT) for the year amounted to Rs 2,960 crore compared to Rs 1,984 crore recorded in FY21, reflecting a growth of 49 per cent.

“The year had been challenging with several headwinds and against this backdrop, our results for the year demonstrate our execution prowess, agility, strategic clarity and the strength of supply chain. Our core investment for the past two years on debottlenecking, capacity expansion and backward integration strength helped us achieve scale and de-risk external starting material dependence,” Divi said in his address to the shareholders.

Billion-dollar Revenue
“During the year, revenue of Divi’s surpassed the billion-dollar mark, making us one of the few companies reaching this milestone in the small molecule API segment. This is amidst the volatility and uncertainty in raw materials, challenges in logistics, energy crisis and geopolitical tensions,” he added.

Over the past decade, Divi has focused on several corporate social responsibility programmes and impacted the lives of lakhs of people in Andhra Pradesh and Telangana. With a commitment to make meaningful change a reality, Divi’s continues to undertake varied initiatives aimed at improving lives. Divi’s has supported hundreds of government schools in Telangana and Andhra Pradesh to improve their infrastructure and provide a conducive environment for learning and social development of children. Since 2014, Divi’s has installed adequate safe water stations in Telangana and Andhra Pradesh, providing safe drinking water to lakhs of people.

Green Commitment
During FY22, apart from creating additional capacities for its pipeline of products and new capacities for emerging custom synthesis projects, the company also upgraded its utility infrastructure which also included environment management. “We strive to create brand value by adopting sustainable practices and implementing green chemistry principles,”Divi adds.

As an industry leader and a responsible enterprise, Divi’s Labs served the communities around its manufacturing facilities in several ways by enhancing the village infrastructure, providing safe drinking water, empowering women and improving public healthcare.

Responding to the continued global challenges due to pandemic and geo-political developments in FY21 and FY22, Divi said: “The uncertain market conditions, induced by the pandemic and geopolitical disorder, has resulted in business transformation for one and all. At Divi’s, we adapted and calibrated ourselves to emerge stronger from the adversity and sustain our market leadership in the API business segment.”