From Alchemists of Health to Global Powerhouses: The Singh Family and Alkem Laboratories

Within the bustling landscape of Indian pharmaceuticals lies a story as potent as the life-saving medicines it produces – the saga of the Singh family and their brainchild, Alkem Laboratories. This narrative, like a carefully formulated prescription, is brimming with ambition, innovation, and a dash of familial harmony.

The Singhs, led by the visionary Samprada Singh, embarked on their pharmaceutical odyssey in 1973. "We envisioned a company that wouldn't just manufacture medicines,

" Samprada once declared, "but one that empowered healthcare and improved lives."

This noble ambition became the cornerstone of Alkem's philosophy.

The early days were a crucible of dedication. "We started small, with a single manufacturing unit," reminisced Mr. Singh.

"But our commitment to quality and affordability never wavered."

This unwavering focus resonated within the Indian market. Alkem's generic drugs, meticulously formulated and reasonably priced, became a beacon of hope for millions seeking accessible healthcare.

But the Singhs weren't content with domestic success. Their sights were set on a global stage.

"We saw a responsibility to extend the reach of affordable healthcare,"

declared their son. The Singh family inherited a majority stake in generics maker Alkem Laboratories after the passing of its founder, Samprada Singh, in 2019. Alkem Laboratories is a leading pharmaceutical and nutraceutical company in India, with a presence in several therapeutic segments such as anti-infective, gastrology, pain management, vitamins, minerals, nutrients, neurology, cardiology, diabetology, and dermatology The company was founded in 1973 by Samprada Singh, who led and shaped Alkem into what it is today. He had a B.Com. degree from Patna University and was the 42nd richest person in India with a net worth of $3.8 billion. Alkem Laboratories has a significant presence in the Indian market, with a portfolio of over 800 brands and a strong sales and distribution network across the country. The company also has a presence in over 40 countries across Europe, Africa, the Asia Pacific, and South America. Alkem has 21 manufacturing facilities, with five of them being US FDA, TGA, and UK MHRA-approved. The company has developed a portfolio of 705 branded generic drugs, with 13 of the brands featured among the top 300 brands in India for the fiscal year 2015. Samprada Singh's brother, Basudeo Narayan Singh, was also a co-founder of the company. After completing his graduation, Samprada Singh tried his hand at various businesses before founding Alkem Laboratories. He roped in his younger brother Basudeo Narayan Singh, who was teaching in a college in Bihar, to consolidate the pharmaceutical business. The Singh family expanded the business into other geographies and set up manufacturing facilities and R&D centres across India and the US. The company's US business alone generated $300 million in revenue in FY20 . Today, the business is run by the second and third-generation members of the family. In 2022, Alkem Laboratories announced the launch of a unique patented technology for the treatment of Diabetic Foot Ulcer (DFU) in India by the latter half of 2022. This advanced technology for DFU management has a high scope of preventing amputations in diabetic patients and is available at affordable rates to Indian patients. Sandeep, the current Managing Director. Under his leadership, Alkem expanded its footprint, establishing a presence in over 40 countries. Their dedication to research and development (R&D) also yielded impressive results, with Alkem becoming the first Indian pharmaceutical company to achieve the coveted US Food and Drug Administration (FDA) approval for a generic anti-epileptic drug.

So, what propelled Alkem Laboratories to such dizzying heights? Let's dissect the secret formula behind their success:

• Patient-Centric Approach:  Alkem prioritized affordability and accessibility, ensuring their medicines reached those who needed them most.

• Unwavering Innovation:  Their commitment to R&D ensured a constant stream of life-saving and cost-effective drugs.

• Global Vision:  They understood the importance of a global market and actively pursued expansion strategies.

• Family Values: The Singhs fostered a culture of collaboration and support, treating their employees like an extended family.
  

The Alkem story offers valuable lessons for aspiring entrepreneurs:

• Purpose-Driven Mission: A clear vision that extends beyond profit margins fosters long-term success.

• The Power of Innovation:  Constant research and development are crucial for staying ahead of the curve.

• Building a Strong Team:  Surrounding yourself with talented and dedicated individuals is vital for achieving ambitious goals.

• Giving Back to Society:  Businesses can thrive while contributing to the betterment of society.
  

Awards and Recognitions

As Alkem carved its niche, accolades followed. Prestigious awards like the Economic Times Pharma Excellence Award and the CII Industrial Excellence Award adorned their illustrious shelf.

"These recognitions weren't just trophies,"

shared Mrs Singh, Samprada's wife and a pillar of support,

"They were a validation of our efforts and a motivation to keep striving for excellence."

Conclusion

Today, Alkem Laboratories stands as a testament to the Singh family's enduring legacy. From a single manufacturing unit to a global pharmaceutical powerhouse, their journey is an inspiration for anyone with a dream and the determination to see it through. As Sandeep Singh aptly concluded,

"Our story is just beginning. We are committed to pushing the boundaries of healthcare and making a positive impact on the world, one life-saving formula at a time."

The world of pharmaceuticals may seem like a complex web of chemicals and diagnoses, but Alkem Laboratories, under the leadership of the Singh family, proves that it can also be a story of human ambition, innovation, and a desire to make a genuine difference in the lives of others.

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Sumit Poddar

Chief Investment Officer & Smallcase Portfolio Manager

Tikona Capital

www.tikonacapital.com