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Successful Formula

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Its's small, but packs a punch. Amoli Organics, a Rs 200-crore turnover company, is not a run-of-the-mill small-to-medium pharmaceutical firm. Managers of top pharmaceutical companies in India and abroad know it well. The 19-year-old company is among the largest manufacturers of active pharmaceutical ingredient (API) diclofenac sodium in the world.

Diclofenac sodium is an important raw material for many NSAIDs (non-steroidal anti-inflammatory drugs) or pain management drugs. Over 35 per cent of Amoli's annual revenues comes from the sale of this API.

Umesh Doshi, who founded Amoli, came to Mumbai from Jamnagar at the age of 16. He started off as an employee at a chemist on Princess Street, Mumbai's medicine wholesale market.

Over the years, he became an independent medicine trader. In 1981, he started a drug formulation manufacturing company, Umedica Laboratories. Today, it has a turnover of Rs 50 crore and exports its entire production to Asia, Africa and Latin America. "Umedica sells formulations under our own brand in all these countries," says Manish Doshi, managing director of Umedica, and Umesh's son.

The father-son duo started Amoli Organics in 1993. After Umesh's death two years ago at the age of 77, Manish runs Amoli and Umedica. 

Amoli Organics has two world-class manufacturing facilities for APIs at Vapi and Baroda in Gujarat. It manufactures 15 APIs. The fastest-moving include seven variants of diclofenac, anti-depressants sertraline and venlafaxine, pharma and food-grade vitamin C, anti-convulsant carbamazepine and cardiac drugs atorvastatin and rosuvastatin.

Doshi says there are only about six manufacturers of diclofenac globally — three in India and three in China.
Various reports say pain management drug sales are expected to grow to $32.8 billion globally by 2013 and diclofenac is the most widely prescribed NSAID worldwide.

Amoli Organics' exports have grown at a compounded annual growth rate (CAGR) of 28.01 per cent over the past three years. Its export turnover went from Rs 34.71 crore in 2008-09 to Rs 56.88 crore in 2010-11. "From the Rs 200 crore turnover in 2011-12, Amoli will grow to a Rs 300-crore company by 2012-13 and to Rs 400 crore by 2013-14," says Doshi.

The plan is to grow 25-30 per cent every year. The company has a strong research and development team of 60 people and is planning to launch 15 new products within three years. 

"In the pharmaceutical business, the investments bear fruit only after one or two years. We did the same two years ago and now we are getting the results," says Doshi. He says the strength of Amoli Organics lies in the chemistry skills and talent pool of its manufacturing and research teams.

(This story was published in Businessworld Issue Dated 11-06-2012)