Sarabhai Chemicals a pioneer in Anti-Bacterial Market in 1970s, had a downfall in the forthcoming decade due to their negligence towards the new evolving market growth.

1. Once a Leader,
not always a Leader !
Presented by :
G.Sandhya ,
Regd.No. 617209507007
M.Pharmacy,
Pharmaceutical Management
and Regulatory Affairs,
A.U.COLLEGE OF PHARMACEUTICAL SCIENCES 1

2. The year 1976 :
The largest growing
segment of the lot. The Rs. 395 crores
large anti-bacterial market, which had
been a testing ground in the Indian
Pharmaceutical Industry for the
fluctuating fortunes of many a company.
THE ANTI-BIOTICS MARKET IN INDIA
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3. CASE STUDY
Sarabhai Chemicals, the No.1 Pharmaceutical company in
1976, was also the leader in the Anti-Bacterial market with as
many as 8 of its 11 brands, occupying pride place of among the
pharmaceutical industry’s top 120 brands.
•Narrow spectrum antibiotics and oral
penicillins accounted for over forty
percent of the total antibiotic sales of the
company in 1976, whereas the subgroups
formed about 28% of the systemic
antibacterial group.
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4. •The antibiotics market had been undergoing rapid changes
since then with introduction of more potent, broad spectrum,
semi-synthetic antibiotics such as Ampicillin , Amoxycillin ,
Cephalosporins , Doxycycline, Tri-methoprim combinations.
•Standard Pharmaceuticals, Ltd., was amalgamated with the
Company with effect from 1st April 1979. Due to this
amalgamation, the Company derived the advantage of the
industrial licences for the bulk manufacture of penicillin,
Erythomycin, Ampicillin, Vitamin C, Doxycycline insulin and
other pharmaceutical preparations.
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5. •These new drugs grown at an annual growth rate of over 80%
since 1976. Thus improving their market shares in
antibacterial market from 21% in 1976 to a staggering 44% in
1988.
•About the same time the narrow spectrum antibiotics were
losing their shares in the market.
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6. •The industry pioneer, Sarabhai chemicals did not noticed their
significant fall of 14 % in the shares .
•If it had been identified then itself , it would have saved the loss
of the market share for narrow spectrum anti- bacterials from
28% in 1976 to 1 % in 1988; as these segments were growing at
an respectable pace of 20% per annum on an average.
•But due to the complacent attitude of the company it led to an
huge loss of their narrow spectrum antibiotics market shares
during 1988.
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7. •During the 12 year period of 1976-1988, there was
remarkable growth of total antibiotics over 40% annually.
It was twice the growth of the narrow spectrum antibiotics.
•At the other hand there was a evolving growth of the
newer and broad spectrum antibiotics at 80% which was
twice of the total antibiotic market shares.
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8. The net result:
The company that was once a leader- sort of a
emperor in the antibiotics market now had a struggle to
remain a king who had surrendered all new markets to a
one time upstart turned emperor due to complacency and
lack of alertness.
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9. THANKYOU
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