Case Study: U.S.-based Mylan Pharmaceuticals
Aug. 21 – Right on the heels of Ford Motor’s announcement that their global auto sales manufacturing hub would be in India, U.S.-based pharmaceutical giant Mylan said that the company has additional plans to invest in India. With half its global work force of 20,000 persons located in the country, about one-seventh of its global income is from its India operations – but this is also expected to jump significantly.
Mylan plans to acquire Agila Specialties through its Indian subsidiary for US$1.6 billion. If the proposal is accepted, Mylan expects to increase its domestic sales 12-fold by 2018. The deal would also help Agila increase its capacity to 600 million units by 2017, up from its current production of 180 million units. The news comes as Mylan made their latest submission concerning the Agila acquisition to the Indian Department of Industrial Policy and Promotion (DIPP).
Mylan, the world’s largest pharmaceutical generics producer in the world, has seven development sites in India focused on R&D with premier research facilities located in Hyderabad and Bangalore. According to Mylan’s DIPP submission, which includes the company’s investment plan and Indian sales figures, investment by the company has increased 42 percent each year over the last five years, while sales have risen 44 percent. During this time, Mylan’s workforce in India has also quadrupled.
Mylan entered the Indian market in 2006 with a buyout of Matrix Laboratories worth US$736 million. The company currently employs 9,700 people in India and has 8 units producing pharmaceuticals.