Dilip Shanghvi, Young Entrepreneur Who Became India’s Richest Man
The man who once beat Mukesh Ambani in the list of richest people in India, Dilip Shanghvi is the owner of India's biggest pharmaceutical company, Sun Pharma. The Pharma Magnate covered a long journey before he reached this status from one of a young entrepreneur.
His reality is indeed a dream of many young professionals and entrepreneurs who wish to enjoy the rewards of being the richest and powerful man in the country. Let's get to know about the man behind the world's fourth-largest speciality generics company according to Forbes.
Dilip Shanghvi is 65 years old as per January 2021 given he was born on 1 October 1955 in Amreli, Gujarat, India to Shantilal Shanghvi and Kumud Shanghvi. He grew up in a Jain family.
Although Dilip was born in Gujarat, he was raised in Burrabazar locality of Calcutta where he spent his childhood and college life living with his parents. He attended J. J. Ajmera High School and Bhawanipur Education Society College for his schooling and graduation. He graduated with Bachelors of Commerce degree from the University of Calcutta.
As per September 2020, Dilip Shanghvi stands at the Net Value of US$8.7 billion which has climbed from his previous net value of US $6.9 Billion in 2019.
Dilip Shanghvi has been identified as the 8th most powerful people of 2017 by India Today. He also ranked 12th in the richest people in India list by Forbes in 2019.
To reach such status, there's indeed an interesting success story that he persuades. We have accumulated the timeline of events that followed Dilip's journey:
Shanghvi helped in his father's wholesale business of generic drugs in Kolkata, it was then that the entrepreneurial seed got sowed in his mind and he envisioned manufacturing his drugs instead of selling drugs manufactured by someone else.
1982: A classic way an entrepreneur would think, he started off Sun Pharmaceutical Industries with mere 10,000 rupees loan from his father. Sun Pharma, that would become India's most valuable pharma outfit with March 2019 revenues of $4.1 billion, started at Vapi with one psychiatry drug.
1997: Sun acquired Caraco Pharma, a loss-making American company, intending to expand Sun's reach in the United States.
2007: Pharmaceutical Entrepreneur Dilip Sanghvi led Sun acquired Israel's Taro Pharma.
2012: Shanghvi stepped down as chairman and CEO and chose Israel Makov, formerly CEO of Teva Pharmaceuticals, as his successor and took the position of Shanghvi became managing director.
2015: After a soaring high phrase, Sun Pharma faced a critical situation while Shanghvi lost around 60% of his wealth owing to the US Food and Drug Administration's warning against Sun Pharma's Halol plant over manufacturing lapses.
2019: Given the rapid decline of his wealth, Dilip stepped in as selfless leader who took only Rs. 1 as his salary. He gave up around the value of 99% markdown of his FY18 salary of Rs.3 crore according to Business Leader.
2014: A notable acquisitions after the smaller companies acquired before, was Sun Pharma's acquisition of Ranbaxy. Both Ranbaxy and Daiichi Sankyo (the majority shareholder in Ranbaxy) agreed that Sun would acquire all outstanding shares of Ranbaxy for $3.2 billion in Sun stock and that Sun would take on $800M in Ranbaxy debt.
2015: The acquisition closed in March 2015 and made Sun the largest drug company in India and fifth largest in the world. While Daiichi became the second-largest shareholder in Sun, Pharmaceutical Entrepreneur Dilip Sanghvi has acquired more than 15 companies in different pharma spaces, some around the world, to aid the growth of Sun Pharma.
2015: Dilip Shanghvi's wife received a perfect gift from her mother-in-law Kumud S Shanghvi i.e. nearly 31 lakh shares worth Rs 282 crore increasing share from 0.28 per cent to 0.43 per cent. While this off-market transaction led to Kumud owning 0.01 per cent stake in her son's Sun Pharma.
2016: The Pharma tycoon was awarded Padma Shri, the prestigious civilian honour by Government of India.
2017: He was made a trustee of the Rhodes scholarship programme at Oxford University.
2018: Indian government-appointed Shanghvi to the Reserve Bank of India's 21-member central board committee. He is chairman of the board of governors at IIT Bombay.
2019: Journalist Soma Das authored the first and only biography of Dilip Shanghvi which was published by Penguin Random House. "The Reluctant Billionaire" was nominated for Tata Literature Award in the Best Business Book category in November 2019.
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