ABOTT INDIA

Abbott Laboratories is an American multinational medical devices and health care company with headquarters

in Abbott Park, Illinois, United States. The company was founded by Chicago physician Wallace Calvin Abbott in
1888 to formulate known drugs; today, it sells medical devices, diagnostics, branded generic medicines and
nutritional products. It split off its research-based pharmaceuticals business into AbbVie in 2013.Among its well-
known products across the medical devices, diagnostics, and nutrition product divisions
are Pedialyte, Similac, Ensure, Glucerna, ZonePerfect, FreeStyle Libre, i-STAT and MitraClip. Abbott's first
international affiliate was in London in 1907, and the company later added an affiliate in Montreal, Canada (Fact
21). Abbott started operations in Pakistan as a marketing affiliate in 1948; the company has steadily expanded to
comprise a work force of over 1500 employees. Currently, two manufacturing facilities located at Landhi and
Korangi in Karachi continue to produce pharmaceutical products.[6] Expansion continued in 1962 when Abbott
entered into a joint venture with Dainippon Pharmaceutical Co., Ltd., of Osaka, Japan, to manufacture radio-
pharmaceuticals. In 1964, it merged with Ross Laboratories, making Ross a wholly owned subsidiary of Abbott,
and Richard Ross gained a seat on Abbott's board of directors until his retirement in 1983.] The acquisition of
Ross brought Similac under the Abbott umbrella. In the years following the acquisition, Pedialyte and Ensure
were introduced as nutritional products by Ross Laboratories while under Abbott's leadership. In 1965, Abbott's
expansion in Europe continued with offices in Italy and France. Abbott Laboratories has been present in India for
over 100 years through its subsidiary Abbott India Limited and it is currently India's largest healthcare products
company. According to Harvard professor Lester Grinspoon and Peter Hedblom

Share Holding Pattern

Shareholding Pattern - Abbott India Ltd.

Holder's Name No of Shares % Share Holding

NoOfShares 21249302 100%

Promoters 0 0%

ForeignInstitutions 215661 1.01%

NBanksMutualFunds 683280 3.22%

Others 492665 2.32%

GeneralPublic 3431949 16.15%

FinancialInstitutions 491699 2.31%

ForeignPromoter 15934048 74.99%

MANAGEMENT OF THE COMPANY

Anil Joseph – Managing Director

Mr Anil Joseph, aged 45, has an excellent track record of working with reputable companies across
different business sectors (predominately Healthcare & FMCG). With over 25 years of experience,
his focus areas included driving revenue and income growth; business turnaround and managing
emerging markets. Hel has an extensive exposure in Sales & Marketing and General Management.
Besides, having managed both Developed and Emerging Markets, Anil also has diverse experience
of different countries and market types. As a P&L Head, he has managed multiple functions
including Sales, Marketing, Key Account Management, Finance, Supply Chain, Quality, Customer
Experience & Technical Service.
Prior to joining Abbott India, Anil was working with Abbott Laboratories, Singapore heading the
Diagnostics Division (Transfusion Medicine) for APAC, China and Japan since March 2016.  At
Abbott Singapore, he was instrumental in setting up the Transfusion Medicine Business Unit in
Asia Pacific building a team, developing retention and growth strategies and executing strategy in
a high-pressure environment. He has worked with Johnson & Johnson and Coca-Cola in various
senior leadership positions in India and across the Asia Pacific Region and has experience in
managing growth, sustaining success, in a “start-up” environment as well as working in “turn
around” situations.
Anil holds a Master’s in Business Administration (dual specialization – Marketing & Human
Resources) from Symbiosis Institute of Business Management, Pune University and Bachelor of
Science (Mathematics) from C.M.S College, MG University, Kerala.

Rajiv Sonalker – CFO and Whole-time Director

Rajiv joined as Director - Finance in November 2006 and has 29 years of experience in the
Pharmaceutical, FMCG and Engineering sectors.  Prior to joining Abbott India, he worked with
Bristol-Myers Squibb as Director – Finance.  Rajiv has also worked with Voltas Ltd, Johnson &
Johnson, Sanofi - Aventis in India and Germany.  Rajiv has a Bachelor’s Degree in Science from
the University of Bombay and is a fellow member of the Institute of Chartered Accountants of
India.

Krupa Anandpara – Associate Director - Secretarial & Company

Secretary
Krupa joined as Company Secretary in 2006 and was subsequently appointed as Associate Director
– Secretarial & Company Secretary. She has over 16 years of experience in handling secretarial
compliance with companies such as Borosil Glass Works Limited and Wimco Limited.  Krupa is a
Member of the Institute of Company Secretaries of India and has a Law degree from Mumbai
University.  Krupa obtained Post Graduate Diploma in Securities Laws from Government Law
College, Mumbai.

Milind Tendulkar - Commercial Director - GenNext & Vaccines

Milind joined in January 2017 as a Commercial Director - GenNext & Vaccines Business. He has
over 27 years of rich experience in sales and marketing. Prior to joining Abbott India, he was
associated with Abbott Healthcare Pvt Ltd (AHPL), Zydus Cadila, Emcure, and Ipca Labs Ltd. He
has a Masters degree in Pharmacy with specialization in Pharmacology from University of Pune.

T Ramakrishna Prasad - Commercial Director - Specialty Care

Mr Prasad has over 22 years of diverse experience in the area of Supplychain, Sales and
Marketing.  He joined Abbott in August 2004 and since then has successfully served multiple roles
in the areas of Supply Chain, Sales and International Business. In July 2017, he took over as
Associate Director of GenNext division and has been instrumental in transforming this complex
multi-therapy business and bringing in performance excellence.  After a long period of around
three years, GenNext business exceeded the plan in 2018 and is positioned to close 2019 with a
strong performance.

Prateek Gupta - Director - Commercial Excellence

Prateek has over 15 years of rich experience in B2B and B2C sales and marketing across pharma,
consumer goods and financial services. His functional expertise includes digital, new business
build, JV/partnership strategy and large project management. Prior to joining Abbott, he was
Head of Strategy & Business Development at Aditya Birla Finance Limited. Prateek also worked for
ten years with the Boston Consulting Group (India), where he led top management strategy
consulting engagements. He started his professional career as an Applications Developer at Oracle
India.
Prateek holds a B. Tech from IIT Kanpur and a PGDM from IIM Bangalore. His key professional
internships were with Lehman Brothers Hong Kong, TU Munich Germany and TU Kaiserslautern
Germany, respectively.

Kunal Chowdhury - Commercial Director - GI Businesses

Kunal joined Abbott India limited in May, 1996 . He has transitioned through multiple roles in
Sales and Marketing and advanced to leadership roles in both the functions. He has been
instrumental in leading many business transformation in his previous assignments including
launch of new business unit, brand transition to OTC, setting up of Task Force and Activation
teams  as well as  scaling up of businesses.
Kunal holds a certification in Marketing from IIM Calcutta and have completed his Bachelor’s
degree in Botany, Zoology and Chemistry  from University of North Bengal.

Sridhar Kadangode – Director - Finance

Sridhar has worked with Abbott Healthcare Private Limited, Nutrition Division and was part of the
core management team which evolved the Path to Profitability for the Nutrition Business of the
Company. He has been part of some of the key business projects linked to Demonetization and
Distributor Optimization.
 
Sridhar has over 20 years’ of experience and started his professional career with Britannia
Industries. He then moved to Danone where he had multiple assignments overseas (Singapore,
US, Malaysia, South Africa) before moving back to India in 2011. He has handled Finance, Supply
Chain and Procurement functions in his last assignment in Danone prior to joining Abbott
Healthcare in 2014.
Sridhar is a qualified Chartered Accountant and Cost Accountant. 
 

Dr Vijay Patil - Associate Director – New Product Introductions and Therapy Area Strategy
Vijay has joined (erstwhile Solvay Pharmaceuticals India Limited) in January 2009 as General
Manager – Technical and has 34 years of experience in the Industry. Vijay is a post graduate in
Pharmaceutical Technology from Mumbai University and has completed his Doctorate in
Complementary Medicine and Diploma in Business Management. Prior to joining Abbott India, he
was associated with reputed organization like Schering Plough Fulford, Aventis, German Remedies
and Novartis.  
As Associate Director – New Product Introductions and Therapy Area Strategy, he has contributed
significantly to Abbott - NPI function through innovative projects, sourcing new products, driving
Legal, Regulatory & Quality Compliance & Standards.  In his career span of 20+ years in NPI, he
has instrumental in designing, developing and supporting commercial team to launch 90+ new
products.

Dr. Srirupa Das – Director – Medical Affairs

Srirupa has over 15 years of experience in Medical Research, Clinical Research and Drug
Development. Prior to joining Abbott in 2011, she was associated with Fresenius Kabi, Lupin and
Sun Pharma.
  
Keya Phatnani - Director – Business Human Resources
Keya joined Abbott in December, 2012. She has over 17 years of experience in Human Resources
across Talent Acquisition, Business HR and Internal Communications across large
Pharmaceutical, Insurance and ITES companies, including IBM and Prudential. She holds a post
graduate degree in Clinical Psychology from Mumbai University.
 
Mandar Keskar - Associate Director - Consumer Care
Mandar comes from a rich consumer marketing background. He worked with Perfetti vanMelle for
more than 17 years across sales, marketing and P&L roles, before joining Abbott in 2018. At
Abbott, Mandar leads the Consumer Health Business, where he has led a successful
transformation in 2019 to deliver market beating growth, while managing a restructuring of the
entire team.
 

SWOT ANALYSIS OF ABOTT INDIA

Strengths of Abbott Laboratories – Internal Strategic Factors

As one of the leading organizations in its industry, Abbott Laboratories has numerous strengths that help it to thrive in
the market place. These strengths not only help it to protect the market share in existing markets but also help in
penetrating new markets. Based on Fern Fort University extensive research – some of the strengths of Abbott
Laboratories are –
 Strong distribution network – Over the years Abbott Laboratories has built a reliable distribution network that
can reach majority of its potential market.
 Strong Brand Portfolio – Over the years Abbott Laboratories has invested in building a strong brand portfolio.
The SWOT analysis of Abbott Laboratories just underlines this fact. This brand portfolio can be extremely useful if the
organization wants to expand into new product categories.
 Successful track record of integrating complimentary firms through mergers & acquisition. It has successfully
integrated number of technology companies in the past few years to streamline its operations and to build a reliable
supply chain.
 Strong dealer community – It has built a culture among distributor & dealers where the dealers not only
promote company’s products but also invest in training the sales team to explain to the customer how he/she can
extract the maximum benefits out of the products.
 Reliable suppliers – It has a strong base of reliable supplier of raw material thus enabling the company to
overcome any supply chain bottlenecks.
 High level of customer satisfaction – the company with its dedicated customer relationship management
department has able to achieve a high level of customer satisfaction among present customers and good brand equity
among the potential customers.
 Good Returns on Capital Expenditure – Abbott Laboratories is relatively successful at execution of new
projects and generated good returns on capital expenditure by building new revenue streams.
 Superb Performance in New Markets – Abbott Laboratories has built expertise at entering new markets and
making success of them. The expansion has helped the organization to build new revenue stream and diversify the
economic cycle risk in the markets it operates in.
Weakness of Abbott Laboratories – Internal Strategic Factors
Weakness are the areas where Abbott Laboratories can improve upon. Strategy is about making choices and
weakness are the areas where an organization can improve using SWOT analysis and build on its competitive
advantage and strategic positioning.

 Limited success outside core business – Even though Abbott Laboratories is one of the leading organizations
in its industry it has faced challenges in moving to other product segments with its present culture.
 Organization structure is only compatible with present business model thus limiting expansion in adjacent
product segments.
 Not very good at product demand forecasting leading to higher rate of missed opportunities compare to its
competitors. One of the reason why the days inventory is high compare to its competitors is that Abbott Laboratories is
not very good at demand forecasting thus end up keeping higher inventory both in-house and in channel.
 Need more investment in new technologies. Given the scale of expansion and different geographies the
company is planning to expand into, Abbott Laboratories needs to put more money in technology to integrate the
processes across the board. Right now the investment in technologies is not at par with the vision of the company.
 Days inventory is high compare to the competitors – making the company raise more capital to invest in the
channel. This can impact the long term growth of Abbott Laboratories
 High attrition rate in work force – compare to other organizations in the industry Abbott Laboratories has a
higher attrition rate and have to spend a lot more compare to its competitors on training and development of its
employees.
 Financial planning is not done properly and efficiently. The current asset ratio and liquid asset ratios suggest
that the company can use the cash more efficiently than what it is doing at present.
Opportunities for Abbott Laboratories – External Strategic Factors
 New environmental policies – The new opportunities will create a level playing field for all the players in the
industry. It represent a great opportunity for Abbott Laboratories to drive home its advantage in new technology and
gain market share in the new product category.
 Economic uptick and increase in customer spending, after years of recession and slow growth rate in the
industry, is an opportunity for Abbott Laboratories to capture new customers and increase its market share.
 New customers from online channel – Over the past few years the company has invested vast sum of money
into the online platform. This investment has opened new sales channel for Abbott Laboratories. In the next few years
the company can leverage this opportunity by knowing its customer better and serving their needs using big data
analytics.
 Lower inflation rate – The low inflation rate bring more stability in the market, enable credit at lower interest
rate to the customers of Abbott Laboratories.
 Government green drive also opens an opportunity for procurement of Abbott Laboratories products by the
state as well as federal government contractors.
 New trends in the consumer behavior can open up new market for the Abbott Laboratories . It provides a great
opportunity for the organization to build new revenue streams and diversify into new product categories too.
 Stable free cash flow provides opportunities to invest in adjacent product segments. With more cash in bank
the company can invest in new technologies as well as in new products segments. This should open a window of
opportunity for Abbott Laboratories in other product categories.
 The new taxation policy can significantly impact the way of doing business and can open new opportunity for
established players such as Abbott Laboratories to increase its profitability.
Threats Abbott Laboratories Facing - External Strategic Factors
 Intense competition – Stable profitability has increased the number of players in the industry over last two
years which has put downward pressure on not only profitability but also on overall sales.
 New environment regulations under Paris agreement (2016) could be a threat to certain existing product
categories .
 Growing strengths of local distributors also presents a threat in some markets as the competition is paying
higher margins to the local distributors.
 No regular supply of innovative products – Over the years the company has developed numerous products
but those are often response to the development by other players. Secondly the supply of new products is not regular
thus leading to high and low swings in the sales number over period of time.
 Shortage of skilled workforce in certain global market represents a threat to steady growth of profits for Abbott
Laboratories   in those markets.
 Liability laws in different countries are different and Abbott Laboratories may be exposed to various liability
claims given change in policies in those markets.
 The company can face lawsuits in various markets given - different laws and continuous fluctuations regarding
product standards in those markets.
 Rising pay level especially movements such as $15 an hour and increasing prices in the China can lead to
serious pressure on profitability of Abbott Laboratories

Competative Analysis

Name Last Price Market Cap. Sales Net Profit Total Assets
(Rs. cr.) Turnover

Sun Pharma 681.25 163,454.69 12,803.21 2,139.70 31,525.70

Divis Labs 4,519.65 119,982.51 6,798.61 1,954.72 9,271.92

Dr Reddys Labs 5,575.70 92,757.42 13,349.10 2,186.40 18,182.30

Cipla 979.20 78,981.95 13,900.58 2,468.28 19,927.56

Cadila Health 639.35 65,452.98 7,790.40 1,476.20 16,049.90

Aurobindo Pharm 994.20 58,254.02 15,823.68 3,112.91 19,877.71

Gland 3,462.60 56,753.65 3,462.88 997.01 5,907.22

Lupin 1,160.50 52,675.42 11,055.93 1,258.62 18,864.51

Torrent Pharma 2,950.35 49,926.63 6,451.00 1,138.00 9,381.00

Alkem Lab 3,194.50 38,195.04 7,219.68 1,685.08 8,964.91

Laurus Labs 677.65 36,362.86 4,768.72 956.11 3,971.78

Abbott India 16,764.65 35,623.71 4,310.02 690.69 2,602.16

Pfizer 5,720.25 26,168.85 2,238.55 497.61 2,395.54

GlaxoSmithKline 1,515.80 25,678.57 3,193.73 357.56 1,517.94

Ipca Labs 2,015.25 25,563.87 5,139.16 1,140.77 4,909.30

Natco Pharma 1,150.00 20,968.85 1,653.50 309.50 4,347.50