(Cover Page)
“PROJECT ON “SUCCESS STORY OF AN ENTREPRENEUR – KIRAN MAZUMDAR”
Master of Commerce
Semester – III
(2014-2015)

Submitted
In Partial Fulfillment of the requirements
For the award of degree of
M.Com
By
Arati Sachidanand Mishra
Seat No. _86_

Tolani College of Commerce
Sher – E – Punjab society,
Andheri (East),
Mumbai – 400 093.

PROJECT ON “SUCCESS STORY OF AN ENTREPRENEUR – KIRAN MAZUMDAR”
Master of Commerce
Semester – III
(2014-2015)

Submitted
In Partial Fulfillment of the requirements
For the award of degree of
M.Com
By
Arati Sachidanand Mishra
Seat No. _86_

Tolani College of Commerce
Sher – E – Punjab society,
Andheri (East),
Mumbai – 400 093.

CERTIFICATE

This is to certify that Arati Sachidanand Mishra of M.Com. Semester III (2014–2015) has successfully completed the project on “Success Story of an Entrepreneur- Kiran Mazumdar” under the guidance of Prof. Mahalaxmi Ramaprasad.

Project Guide: - ___________________

Course Co-Ordinator: - ___________________

External Examiner: - ___________________

Principal: - ___________________

DECLARATION

I, Arati Sachidanand Mishra the student of M.Com.Semester III (2014-2015) hereby declare that I have completed the project on “Success Story of an Entrepreneur- Kiran Mazumdar” in the course (Entrepreneurship Management).

The information submitted is true and original to the best of my knowledge. References have been cited wherever necessary.

Date: - ________
Place: - Mumbai ____________ (Arati Sachidanand Mishra)

ACKNOWLEDGEMENT Preparing the project on “Success Story of an Entrepreneur- Kiran Mazumdar” has given me extensive knowledge related to the course. I would like to first thank our Principal Dr. A.A.Rashid, for his valuable support in preparing this project.

I express my deep sense of Gratitude to the course Co-ordinator, Ms.Sadhana Venkatesh for the valuable guidance and support during my project work.

I am thankful to my guide Prof.Mahalaxmi Ramaprasad for providing me the guidance throughout the course of this project. I am also thankful to her for patiently and critically evaluating the content of this project.

I would like to take this opportunity to express my gratitude to all the staff of the Library and the Computer Lab for their support.

Contents of the Project

1) Kiran Mazumdar Shaw

1) Introduction 2) Educational Qualifications & Personal life

2) Industry Review of Biotechnology

1) Introduction of Biotechnology. 2) Biotechnology Industry in India

3) Company Review of Biocon

1) History 2) Major Products of Biocon 3) Profitability Position 4) Strength of Employees 5) Success of Biocon 6) Controversy related to Biocon 7) Achievements of Biocon 8) Corporate Governance

4) Analysis of Kiran Mazumdar Shaw

1) As an Entrepreneur 2) Personality Traits 3) As a Leader 4) Awards 5) Conclusion

KIRAN MAZUMDAR SHAW

Introduction:

Kiran Mazumdar Shaw is an Indian Businesswoman who was born on March 23, 1953 in Bangalore. She founded the company Biocon in India in the year 1978. From what started as an Indian subsidiary company of the Irish parent company Biocon, today Biocon is the leading biotechnology company in India. She has been a huge factor in making the company evolve from an industrial enzymes manufacturing company to a fully integrated bio- pharmaceutical company.

Biocon is also India’s first biotech company. She has established two subsidiaries to Biocon named Syngene (a custom research organization) in 1994 and Clinigene (a clinical research organization) in 2000 where she is the Chairman of both the companies. She is a huge promoter of biotechnology sector in India and is a member of the Advisory Council of the Indian government’s Department of Biotechnology where she has played a great role in bringing the Indian government, industry and academia together for the growth of this sector in India. She is highly respected in the corporate world because of her tremendous work in biotechnology.

Kiran Mazumdar Shaw is responsible for steering Biocon on a trajectory of growth and innovation over the years. Within a year of its inception, Biocon became the first Indian company to manufacture and export enzymes to USA and Europe. In 1989, Biocon became the first Indian biotech company to receive US funding for proprietary technologies.

Under her leadership, Biocon is building cuttingedge capabilities, global credibility andglobal scales in its manufacturing and marketing activities.

Educational Qualifications & Personal Life:

Kiran Mazumdar Shaw was born in Bangalore. She did her schooling from Bishop Cotton Girl’s High School in Bangalore. She wanted to join a medical school but took up biology instead and completed her B.Sc. in Zoology with Honors from Bangalore University in 1973.She did her post graduation in Malting and Brewing from Ballarat College, Melbourne University in 1975. She is married to a Scotsman John Shaw, who is currently the Vice-Chairman of Biocon.
Under her stewardship, Biocon has evolved from its inception in 1978 as an industrial enzymes company to a fully integrated Biopharmaceutical enterprise encompassing a well-balanced business portfolio of products and services with a research focus on Diabetes, Oncology and Auto-immune disease. Biocon also has a subsidiary, Syngene, which was established in 1994 to provide research services and contract manufacturing to the big pharma industry. Biocon has also built a remarkable Research Services business through Syngene and Clinigene that offers integrated discovery and development solutions for both small and large molecules.

A leading US trade publication, Med Ad News, in its 2007/08 listings ranked Biocon 20th amongst the leading biotechnology companies in the world and the 7th largest Biotech employer in the world. Science' Magazine has ranked it at No. 6 on the annual Global 'Top Twenty Employers' list for the Bio-Pharma sector.

Ms Shaw’s commitment to affordable healthcare extends beyond business. She is passionately focused on innovation led healthcare solutions for sustainable and affordable healthcare for the marginalized communities. Her philanthropic initiatives include an innovative micro-health insurance program based on delivering cashless healthcare through primary healthcare clinics in rural areas of Karnataka, an education initiative based on math education for school children in government schools as well making quality cancer care affordable to a larger patient population. She has established the 1,400-bed Mazumdar-Shaw Cancer Center (MSCC) in Bangalore in partnership with renowned heart surgeon Dr Devi Shetty to deliver affordable world-class cancer care services to patients irrespective of socio-economic status and class. She is also the Honorary Consul of Ireland in Bangalore.
She is married to John Shaw, a Scotsman and Indophile, who headed a leading textiles MNC, Madura Coats from 1991-1998 as Chairman and Managing Director. John Shaw is currently the Vice-Chairman, Biocon Limited.
Failure Is Not Final, Giving Up Is
Daughter of a brewmaster and without a job, raising funds for her entrepreneurial venture was not going to be easy.
Mazumdar-Shaw was prepared to fight it out -- she knew she would have to stave off opposition at every step.
Mazumdar-Shaw was trying to build an enterprise in an area that was relatively nascent in India, and the fact that she was a woman and had no family money to fall back on didn’t help either.
She was twenty five at the time. Getting banks to fund her venture was nearly impossible. Banks wanted her father to be a guarantor. And Kiran disagreed on principle.
Being a woman entrepreneur also put her at a disadvantage. But the challenges and setbacks did not hold her back from setting up office with a seed capital of ten thousand rupees -- around four lakh rupees today.
‘There are many examples of failure. I had a huge credibility hurdle to overcome. I failed to get financial support. I failed to recruit people I wanted to. The first fifteen years were all about survival,’ says Mazumdar-Shaw looking back at the initial years of her entrepreneurial life.
Biocon Limited was launched in 1978, in partnership with an Irish Biotechnology company Biocon Biochemicals founded by a first generation Irish entrepreneur Leslie Auchincloss.
The company produced enzymes for alcoholic beverages, paper, and other products.
Growth was slow, as a pioneer Mazumdar-Shaw faced resistance and discrimination from all quarters -- employees didn’t want to work for a woman and investors remained wary of investing in a woman run company.
But Mazumdar-Shaw persevered.
The company started to make profits and almost a decade later, Auchincloss sold his stake in Biocon to Unilever.
Though the challenges of her journey would seem insurmountable to many, Shaw went about slicing her setbacks with almost clinical precision.
She says, ‘You must understand why you are failing. You are failing because your credibility is at stake. You have got to make credibility to ensure people trust you.’
As Mazumdar-Shaw went about building credibility and the company started adding to its bottom line, she also started dreaming bigger. She had understood the scale of her potential and ambition.
She wanted to build a global scale company and for that she would have to go beyond enzymes.
The focus of the business was changed from enzymes to biopharmaceuticals in the nineties. She sold off the enzyme business she had spent fifteen years building, and put in all her energies into the biopharmaceutical business -- where the first batch of enzymes failed.
‘Here I was trying to scale up a home grown biotechnology firm and my first batch failed. We checked why it failed. We identified process failures,’ she says. Mazumdar-Shaw took the failure in her stride and did not internalize it, a personality trait most women are guilty of.
Years later, Mazumdar-Shaw failed again, this time at her dream project of building oral insulin.
The drug failed to give the desired outcome in the clinical study.
It brought down the glucose levels to desired levels, but failed to lower the haemoglobin count in patients with type 2 diabetes to the desired levels. This came out in the late stage clinical trials.
‘That was a dark hour. I had built the drug with great expectations,’ she laments.

Philanthropic activities
In 2004, she started the Biocon Foundation to conduct health and environmental programs to benefit of the economically weaker sections of society.
The Biocon Foundation's 7 ARY clinics are located where healthcare facilities are poor and they offer clinical care, generic medicines and basic tests for those who cannot afford them. Each of the clinics serves a population of 50,000 people living within a radius of 10 km.[12] All the clinics organise regular general health checks in remote villages by bringing in physicians and doctors from network hospitals. Each year, the Foundation touches more than 300,000 lives through its holistic healthcare approach.
She helped establish a 1,400-bed cancer care center at the Narayana Health City campus at Boommasandra, Bangalore, along with Dr. Devi Shetty of Narayana Hrudayalaya in 2007.
She liked the innovation model and thinking that Dr. Prasad Kaipa brought to Biocon and funded multi-year research at Indian School of Business by creating Biocon Cell for Innovation Management as part of Center for Leadership Innovation and Change.

2) Industry Review

Introduction of Biotechnology:

Biotechnology refers to the use of microorganisms such as bacteria or biological substances such as enzymes, to perform industrial or manufacturing processes. Biotechnology is being used to produce drugs and synthesize hormones. Biotechnology is divided into three sub fields:-

1) Red Biotechnology:

Red biotechnology deals with genetically changed microorganisms being used for manufacturing products like insulin and vaccine for medical use. It is due to research in red biotechnology that antibiotics for various infections have been developed and vaccines to bolster the bodies’ resistance to various diseases were developed. It has also been used in reproductive technologies like in vitro fertilization, DNA profiling, forensics and transplantation technologies.

2) White Biotechnology:

White biotechnology deals with creating useful chemicals for the industrial sector through organisms like moulds or yeast. This type of bio technology is also referred to as grey biotechnology. White biotechnology has proven to be of immense benefit environmentally in cleaning oil spills and in storing DNA samples of endangered species for future research. It is also useful for removing excess nutrients in soil and water and for detection of landmines.

3) Green Biotechnology:

Green biotechnology also called agricultural biotechnology is to do with factors pertaining to agriculture. Green biotechnology is concerned with the genetic modification of plants and animals to produce environmentally friendly species.

Future Growth of the Indian biotech industry:

The Indian Biotech sector is on a growth trajectory with the potential to deliver $5 billion revenues by 2010 and $20 billion by 2020. If the National Biotech Strategy is successfully implemented, this ambition will be easily achieved. We need to focus on creating a strong educational foundation in terms of higher and specialized education and on forging strong links between Industry and Academia.

3) Company Review

History

While planning for a brewing career abroad, Kiran Mazumdar had a meeting with Les Auchincloss who had started a biotechnology company called Biocon in Ireland.He asked her to be his business partner and start Biocon in India. As she wasn’t having anyentrepreneurial background, she refused the offer. However, Les Auchincloss persuaded her to give it a try with a buy-back clause if the business failed, she finally accepted and spent six months in Ireland and underwent training for the job.

She started Biocon in 1978 in Bangalore with Rs. 10,000 as the initial capital as she faced credibility challenges because of her youth, gender and her untested business model. Funding was a big problem for her as no bank wanted to lend finance to her. After failing to find any financial institution to back her, she also found it difficult to recruit people for her start-up.

She began operations out of the garage of a rented house with two employees. She faced several hurdles. Uninterrupted power, superior quality water, sterile labs, imported research equipment, and advanced scientific skills were not easily available in India during the time.

The company was operating in an environment with suboptimal infrastructure and personally she was a 25-year-old first generation woman entrepreneur without business experience. There was the risk of the business of biotechnology itself, an unknown business in 1978.

iii) Biocon’s first product to go to market was peptinpapain, an enzyme found in papaya which is used to prevent beer from turning hazy. Until 1983, the company blended enzymes and supplied them to brewing, textiles, biofuels, animal feed and other such industries across the world. In the mid-1980s with a loan of US $250,000 from ICICI Bank, Biocon was able to build a solid-state fermentation plant which helped in the growth of its R&D.

iv) In 1989, the Irish Biocon was acquired by Unilever. In the 1990s, Kiran Mazumdar-Shaw decided to focus on bio pharmaceuticals rather than enzymes. Unilever, which was a major shareholder, did not want to be in the biopharmaceuticals business. John Shaw, the Scotsman whom Kiran Mazumdar-Shaw had married in 1998, used his savings to reclaim the entire Biocon stake from Unilever.

v) Biocon ventured into the lucrative biopharmaceutical segment.
They sensed a greatopportunity when branded drugs went off patent.They began to develop lovastatin, acholesterol-lowering drug whose patent expired in 2001. Biocon eventually began making other forms of statins. The company’s revenue went up from Rs. 70 crore in 1998, to Rs. 500crore in 2004 when it went public.

In 2007, Biocon made a strategic decision to divest its historic enzymes business to Novozymes A/S of Denmark. Today, Biocon has evolved from an enzyme company to a fully integrated biopharmaceutical company.
It takes originality and a strong will for a woman to first study brewing, and then to turn to a nascent industry when hurdles in the brewery business prove insurmountable. Kiran Mazumdar-Shaw, Chairman and Managing Director of Biocon, India's first biotechnology company (it was set up in 1978) has plenty of both. As someone who made unconventional choices - brewmaster, biotechnology pioneer, to personal life choices (she married at 44) - she says she admires people who dare to do things differently.

Her confidence, and her conviction in her idea at a time when the biotechnology industry barely existed, impressed Narayanan Vaghul, former chairman of ICICI Bank and founder of ICICI Ventures, at their first meeting. "It was difficult to not to place faith in her... she walked into my room, we spent half an hour talking, and I could see she had fire in her belly." Mazumdar-Shaw, for her part, says Vaghul funded a technology that proved crucial for her business. "When I wanted to scale up our technology, I could not find anyone in India," she says. "There was no venture funding. No bank wanted to touch it. Nobody wanted to fund a home-grown technology by some young scientist. But Vaghul said: 'These are exactly the kinds of things we want to fund in this country.'"

Biocon head Kiran Mazumdar-Shaw says the award goes hand in hand with responsibilities

Mazumdar-Shaw used that technology to develop enzymes for Ocean Spray, an American fruit juice company. "Till today, that enzyme has not been replaced," she says with pride. "It feels so good that we did all that here, in Bangalore."
Biocon, today a billion-dollar company and Asia's largest biopharma concern, started in the garage of Mazumdar-Shaw's rented home in Bangalore, with seed capital of Rs10,000 (around Rs4 lakh today). When she set up what is now one of the top 20 biotechnology companies in the world, banks wanted her father to be a guarantor.
Mazumdar-Shaw disagreed on principle. "I would argue that I am Managing Director, and bank norms require the MD to stand guarantee," she says. "Why am I different?" When she met the General Manager of Canara Bank at a friend's wedding reception, she complained about the bankers' attitude.
The next day, the manager called her to say the loan had been sanctioned. The company's shift in the late 1990s from enzymes to biopharmaceuticals made global scale possible. But for Mazumdar-Shaw, the eureka moment was its 2004 initial public offering, or IPO. It was oversubscribed by 33 per cent. "See, until you have worked hard and go for an IPO, you will not realise the value of what you have built."
If Mazumdar-Shaw had succeeded at becoming a brewmaster, Biocon would probably not exist. But in the 1970s, brewing was a male-dominated industry, and she could not get a job. She says: "The words were: 'You're a woman. It is difficult for a woman to deal with labour unions. You are high-risk. Can you command the respect of your male colleagues?'" Today, things have changed drastically. "It is interesting to see how the people who said, 'I have 15 minutes for you' are in awe of me.'" Mazumdar-Shaw, who is one of India's richest women, says she is a self-taught entrepreneur.

Among the influences in her life, she counts Vaghul, the banker who thought differently; Raghunath Mashelkar, promoter of science and technology in India; and cardiac surgeon Dr Devi Shetty, architect of the world's cheapest health insurance scheme.

But there is reverence in her voice when she talks about her father, whose ashes rest under the almond tree outside her office. She describes his role in her success. At a time when fathers did not take their daughters' intellect very seriously, Mazumdar-Shaw says hers told her: "I want you to use your knowledge to do something meaningful."

While the 25-year-old Mazumdar-Shaw was setting up Biocon, her friends were getting married. It was her father who encouraged her to stay the course. "When I started the company, my father was so excited for me," she says, her eyes moistening.

Her father taught her that people were the most valuable asset in business. She says: "My dad always said, 'Treat them with respect. Everyone has something to contribute.'" Her ground-level office on Biocon's leafy campus has a relaxed, informal feel, and her door is always open. Her staff is fiercely protective of her.

Her vision for the company has evolved from the goal of improving India's scientific record to the dream of "a made-in-India novel drug". When she talks about Biocon's plans to take insulins global and move from cancer care to cancer cure, her enthusiasm seems almost childlike.

Behind many dreams that come true, there is a choice that many might quail at. "I got married only at 44," says Mazumdar-Shaw. "My work was so important that I didn't even think about having a family. I miss having a child. But that's a sacrifice." She says she is happy with all that she has achieved. "I have made discoveries about myself, and have learnt to get ordinary people to do extraordinary things," she adds.

PROFITABILITY:-

Biocon Ltd’s profitability improved in the quarter ended September, as it benefited from higher sales and licensing income. During the quarter, sales of biopharmaceuticals rose by19% to Rs. 601 crore, with product sales rising by 16%, while licensing income doubled to Rs. 23 crore. It has an alliance with US-based Mylan Inc. and receives license income based on the progress of work.

The first bio similar product under this alliance has entered the pre-clinical trials phase, said the company. Biocon has also announced a $350 million (around Rs. 1,500 crore) licensing arrangement with Pfizer Inc. pertaining to its insulin products. Its share price has risen nearly 10% since the announcement was made, explaining why the good results did not move the stock. Biocon’s revenue rose by 17% and its material costs rose by only 15%. But a decline in other expenses and slower growth in material costs enabled it to improve its operating profit margin by 170 basis points.

Its profit-before-tax rose by 26% but higher taxes lowered the net profit growth to 20%.The company’s biopharmaceuticals business is doing well, with branded formulations’ sales up by 32% year-on-year in the first half of the year. It has started two new divisions of immunotherapy and comprehensive care. Its German subsidiary Axi Corp GmbH won some key tenders for supplying generic drugs, and its sales rose by 30% to Rs. 523 crore in the first half. Biocon’s biopharmaceutical division is expected to do well in the second half as well.

On the research front, a key development is the company deciding to launch its oral insulin simultaneously worldwide, which will involve carrying out US clinical trials. Earlier, the company was contemplating an India launch, followed by a roll-out in other markets. The company believes the benefits of following this approach will be substantially higher. Its research services business saw slow growth of 7% in the second quarter, which appears to partly be a result of an effort to focus only on value-added work.

In the near term, the inflows from the Pfizer transaction will hold investor interest. Around$200 million will be in the form of an upfront payment, though it will reflect in Biocon’s profit and loss statement in stages. It will use this money to fund its capital investments and regulatory filing fees, which would have otherwise put a strain on its finances. This will ensure that Biocon can fund its growth without resorting to more borrowings. As of September, its debt levels have fallen by 17%. Biocon’s per share earnings, based on consensus estimates, are expected to rise by 13% in fiscal 2011 and by 17% in fiscal 2012. Its share trades at around 26 times its fiscal estimated 2011 earnings. That appears justified, given the boost to its business from the Pfizer transaction, and its earnings so far having risen much faster.

Biocon Continues to Deliver Strong Performance:

Biocon Limited announces earnings for the half year ended September 30, 2010. Revenues atRs 1,360 crores; EBITDA at Rs 293 crores; PAT at Rs 166 croresCommenting on recent developments, Chairman and Managing Director Kiran Mazumdar-Shaw said, “This is an exciting time for Biocon.

Our strategy of building and unlocking high value innovation in Biotechnology has seen us enter into a new phase of growth. The recently announced global commercialization alliance with Pfizer is a validation of this approach. All our core businesses have delivered robust performance for the first half of this fiscal and are expected to sustain this level of growth for the rest of the year.”

For Half-Year ended September 30, 2013

•Total Income at Rs 1,360 crores. Up 24% YoY.
•EBITDA at Rs 293 crores. YoY growth was 24%.
•PAT at Rs 166 crores. YoY growth was 26%.
•Operating Margin at 22%.
•Earnings Per Share at Rs 8.5.
•Headcount at 5,100+ employees.

For three months ended September 30, 2013

•Total Income at Rs 688 crores. Up 16% YoY.
•EBITDA at Rs 153 crores. YoY growth was 21%.
•PAT at Rs 89 crores. YoY growth was 20%.
•Operating Margin at 22%.
•Earnings Per Share at Rs 4.5

The global biosimilars market is expected to be worth $19 billion by 2014.
Biocon outsourced Research and Development globally for the year 2009 which was worth $30 billion. Between 2005-10, more than 2.200 high value R&D licensing and other deals were done within the biopharmaceutical and pharmaceutical space. Net income increased 44% to Rs. 24,048 million crossing the $ half billion mark. Profits grew 215% to Rs. 2933 million.Pharmaceutical Business exceeded Rs. 20,871 million in revenue and the Net R&Dexpenditure increased to Rs. 917 million, up 42% over 2008 and up 282% over 2005. It acquired The Bulk Pharmaceutical Plant of IDL Specialty Chemicals Limited in this fiscal year. Research services business crossed Rs. 2807 million

STRENGTH OF EMPLOYEES:-

Today, Biocon has worldclass research outsourcing capabilities, US FDA-compliant bio-manufacturing facilities and a self-financed R&D pipeline. As we can see in the table below, Biocon has been providing employment to the youth and employs about 4478 employees including the subsidiaries.

The hire Biologists, chemists, medical practitioners, pharmacologists, engineers,finance/legal/marketing analysts, HR generalists and general administrators.

Around 6% of its employees have PhD degrees, 45% have a post graduate master’s degree, and 33% are graduates. Biocon also collaborates with educational institutes to make courses more industry oriented.

It is regarded as the 7th largest employer among the top 100 global bio technology companies.
.

As on 31.03.2013

Success of Biocon:

The Biocon India Group story began in 1978 when Leslie Auchincloss, owner of the small Irish multinational company Biocon Bio chemicals and Kiran Mazumdar founded Biocon India - owned 70 per cent by Kiran and 30 per cent by the Irish company. The business was established In Bangalore and Ms Mazumdar was appointed Chairman & Managing Director.

In 1983 the company acquired 20 acres of land close to Bangalore city and moved its operation where it is presently located. In 1989 a new phase in the development of Biocon India opened when Biocon Ireland was acquired by the Anglo Dutch giant - Unilever. Unilever thereby acquired the 30 per cent holding in Biocon India owned by Biocon Ireland. As a result of this, Biocon India became an associate of the multinational giant. In 1997 when Unilever put its Specialty Chemicals Division up for sale. it was purchased by lCI
(Imperial Chemical Industries) in a global deal valued at $9 million.

As a result, the shareholding In the Biocon India Group was transferred from Unilever to ICI ownership. This gave Ms Shaw the opportunity to negotiate with ICI as the articles of the various companies in the Biocon Group gave pre-emptive rights to existing shareholders. Eventually her husband John Shaw purchased the entire shareholding of ICI in the various Biocon India Group companies and joined the management team of the group.

As a result of this transaction, the Biocon India Group Companies were owned and controlled by Ms Shaw and her husband with key employees participating via various stock option schemes. An associate company or Biocon, Syngene International was established in 1994 to carry out drug-based contract research as well as informatics- based software development for the pharmaceutical industry.

Syngene International designs and manages research projects for companies with interests in pharmaceuticals and biotechnology. Syngene's strengths lie in the areas of molecular biology, synthetic chemistry and informatics. In August 2000, Clinigene International was established to conduct longitudinal clinical studies in select disease segments. The diversity and density of Indian patient populations was perceived to be a unique niche for Clinigene to pursue a new approach in specialised clinical studies with a view to create new medical wisdom.

The objective was to create clinical data bases that can be used to identify new biomarkers as well as other genotypic and phenotypic disease indicators. For this purpose Biocon has tied up with Strand Genomics. Strand Genomics studies the trends and patterns in the data to identify new biomarkers. Biocon has also entered into a joint venture with Shantha Biotech to produce and market Human Insulin.

Controversies:

In the year 2008, villagers of the Hebbagodi region claimed that the company had polluted air and ground water, where the company's factory is located. They held a protest march and the angry villagers protested in front of the Biocon factory in Hebbagodi. K M Muniratnam, a handicapped fisherman accused the company over the huge losses he had sustained over the last 3 years, as the fish he reared in the lakes were dying due to chemical effluents from the factory. He had taken the licence to fish in two lakes in the Hebbagodi region, but there had been at least six occasions when the fish had died.

The company had told K M Muniratnamthat they'll pay compensation, but he didn’t get anything. Hebbagodi residents complained about the contamination before, but no one took notice is what they claimed. A government analysis in 2007 showed industrial discharge was harming water quality. People were suffering from skin diseases, headaches, kidney problems. A government assurance about starting a river water supply to these areas got the protestors to put off their strike.

But the Biocon company officials replied that they were being unfairly blamed. The COO of Biocon Arun Chandavarkar claimed that Biocon in no way was connected to quality of water. Bad smell had been a problem earlier but over the last two years, they claimed to have taken many steps to reduce the odour.

Biocon’s Methylcobalamin Row:

In 2006, there was a lot of controversy surrounding Biocon Ltd, one of the leading biotech companies in India, for allegedly violating certain norms of manufacturing Methylcobalamin. The controversy was that Biocon had requested the Union Government for a license to import the base material and manufacture Methylcobalamin (MeB12) in India.

The company had also obtained license from the Karnataka government to manufacture the drug in seven stages. On March 17, 2003, the Karnataka government had given license (No.46 A-MF 668) to manufacture the drug in seven stages. On January 17, 2006, the office of the drug controller of Karnataka on a routine inspection found that Biocon was not manufacturing the product in its Bangalore facility and that it was importing the drug from China.

The state government then cancelled the license due to this. The Karnataka health minister during that year, R Ashok pointed out that the company had not manufactured the drug as per the seven stages and that government rule clearly states that if there are any changes in the manufacturing of the drug, which was not according to the license, then the company had to obtain permission from the government.

Else it violates the Rule 18 (g) under Drugs and Cosmetics Act. Following the state government's notice to Biocon, the company admitted that they were importing the drug without the government's permission. The State Drug Controller wrote a letter to the Chief Drug Controller in Delhi on March 28, 2006 on this issue to take action against the company. On February 10, 2006, Biocon got the license from the Central government to import Methylcobalamin. Kiran Mazumdar-Shaw, chairman and managing director, Biocon Ltd informed, "Methylcobalamin is a form of Vitamin B12 and an internet search will indicate that it is available internationally as a dietary supplement or nutritional supplement and is not regulated as a drug in many countries.
The other common forms of Vitamin B12 are cyanocobalamin and hydroxocobalamin. However, in India, it has been regulated as a drug since 2002."Biocon initially intended to manufacture the product starting from cyanocobalamin using a multi-step process for which it obtained a manufacturing license from the state drug controller's office. But competition from cheaper imports made this unviable.

Hence, Biocon revised its manufacturing process to begin from an advanced intermediate with fewer manufacturing steps without compromising the quality of the final product. However, there was a regulatory oversight in not updating the manufacturing license to reflect the new manufacturing process. During a routine inspection, the state drug controller's office noticed this lapse and issued a show cause notice to Biocon.

Biocon admitted the lapse and hence the manufacturing license for the product was cancelled. Biocon immediately stopped manufacturing the product and also stopped importing the advanced intermediate. Biocon made a fresh application to the Central and state drug controller's office and has obtained a fresh license from both. This is how the issue was then resolved.

Awards and Achievements

Biocon has the following awards and achievements to its credit

Med Ad News, in its 2007/08 listings has ranked Biocon 20th amongst the leading biotechnology companies in the world.

Biocon also recently received the 2009 BioSingapore Asia Pacific Biotechnology Award for Best Listed Company

Med Ad News, in its 2007/08 listings also ranked Biocon as 7th Largest Employer in the world.

2010:
Bio-Excellence Award for Outstanding Achievement in the Healthcare Sector at Bangalore

2009:-
Among Top 20 Indian companies in Forbes ‘Best Under A Billion’ list- Bio-Excellence Award for Outstanding Achievement in the Healthcare Sector at BangaloreBio- Bio-Excellence Award for outstanding achievement in the Biotech Service Sector atBangalore Bio for Syngene IDMA ‘Best Patent of the year’ award- BIOMAb EGFR

voted ‘Bio-Spectrum Asia-Pacific Product of the year’, 2008- BioSingapore Asia Pacific Biotechnology Award for Best Listed Company
2008:-
Ranked among the top 20 global biotechnology companies (Source: Med Ad News, June2008)- 7th largest biotech employer in the world (Source: Med Ad News, June 2008)
2007:
‘BioServices Company of the Year’ for Syngene, BIOMAb EGFR
®wins ‘Product of theYear’, BioSpectrum Awards
2006:
Best IT User Award in the Pharmaceutical Sector, NASSCOM
2004:-
India's first and No. 1 biotech company with a global ranking of 16 (Source: Biospectrum,July 2004)- India's top 5 Life Sciences companies (at close of trade as on July 30, 2004)- Best Reinvention of HR Function Award, Indira Group, Mumbai- Best Employer of India Award, Hewitt
2003:-
Bio-Business Award for bio-entrepreneurship, Rabo India- Express Pharma Pulse Award for excellence in the pharmaceutical industry

2001:- Biotech Product, Process Development and Commercialisation Award, Department of Biotechnology, Ministry of Science and Technology, Government of India
2000:-
Technology Pioneer Recognition, World Economic Forum
1985:- Export Performance Award, Karnataka State Financial Corporation (KSFC)- National Award for Best Small Industry, Government of India

Firsts

Set up in 1978, Biocon is India's first biotech company
•First Indian biotech company to receive US funding for proprietary technologies(1989)
•Sets up India's first clinical research organization, Clinigene (2000)
•First Indian company to be approved by US FDA for the manufacture of lovastatin, acholesterol-lowering molecule (2001)
•First company worldwide to develop human insulin on a Pichia expression system(2003)
•Biocon enters the stock market with its IPO and becomes only the second Indiancompany to cross the $1-billion mark on the day of listing (2004)
•Launches India’s first cancer drug, BIOMAb EGFR
®
(2006)
•First Indian company to manufacture and export enzymes to USA and Europe
•India’s largest producer and exporter of enzymes
•Releases country’s first 24-hour diabetes drug, Glargine (2009)
•First biotech company to receive ISO 9001 certification in India
•Syngene is country’s first custom research company in drug discovery

CORPORATE GOVERNANCE

Biocon Foundation provides essential primary healthcare services to individuals and familiesin target communities by means acceptable to them through their full participation and at costs that they can afford. They have established Arogya Raksha Yojana (ARY) Clinics.

Delivering on its commitment to affordable healthcare, Biocon Foundation has been setting up ARY Clinics in areas where large numbers of people are enrolled with the ARY health micro insurance program. These Clinics have been set up to make primary healthcare facilities more accessible and more affordable for surrounding communities.
Supporting the ARY micro insurance program, the Clinics will guide member patients to network hospitals and help them avail of the benefits due to them. Each Clinic is equipped with:

•a full-time doctor
•an ARY pharmacy stocking subsidized generic drugs
•a Laboratory offering basic diagnostic tests, at discounted rates
•a Mobile Medical Service to enable the clinic doctor and staff to travel to and provide consultation at remote villages. The Foundation currently runs seven clinics in both urban and rural settings. In Bangalore their clinics are located at Austin Town, Huskur, Hennagara and K.R.Puram. The rest of the clinics are in Mandya, Chickballapur and Bagalkote districts of Karnataka.

In 2008-09, the Arogya Raksha Yojana through its clinics had treated around 22,000 patients and had assisted many with minor and major surgeries through the ARY health insurance program. The ARY Clinic in Kaladgi, Bagalkote was an anchor point during the Foundation’s flood relief effort in the aftermath of the devastating floods that hit North Karnataka in October 09

Health Camps:

General and specialized health camps are conducted in remote areas where good medical facilities are not available. These camps provide cardiac, neurological, ophthalmic, orthopedic, gynecological and general health checks. Three to four camps are held every month in collaboration with Narayana Hrudayalaya and other network hospitals. Every campis attended by an average of 300 people

.In Oct 2009, the team from Biocon Foundation’s Health Program held numerous health camps in the various flood hit villages in Bagalkote district of North Karnataka. The teams also collaborated with the Government doctors and Public Health Center’s to ensure maximum reach and effectiveness.. Through these health camps our doctors were able to reach and help more than 5,000 people.

There has been tremendous progress in the treatment strategies for various diseases, which were once considered inoperable. Unfortunately, most Indians cannot afford the cost of high technology healthcare. For example, India requires a 2.5 million heart surgeries a year, but has the capacity to do only about 80,000-90,000. India also has a very high incidence of head and neck cancer, which can be cured if diagnosed early and proper treatment is given.

EDUCATION:-

In the area of child education, Biocon Foundation has collaborated with Pratima Rao, a prominent educationist and Macmillan India, a leading educational publisher to inculcate a love for math and self reliance in learning through innovative mathematics text books -‘Chinnara Ganita’. The project covered 11,000 children in Grade 1 & 2 in its first year and 15,000 children from Grade 1 to 4 in the second year in rural districts of Karnataka. Because of Biocon Foundation’s effort to increase access and exposure to learning opportunities from children, the Aata Pata Wadi project was launched in 2009 with its first Aata Pata Wadi (after school resource center) in Thithimati in Kodagu district of Karnataka.

The aim of these centers is to provide an open and fun learning environment for children, many of who come from marginalized communities thus enabling them to nurture their interests, learn new skills and awaken their spirit of enquiry.

Objectives:

•To provide access to computer aided leaning
•To emphasize experiential learning and extracurricular activities
•To boost language skills
•To provide life skills educationTo encourage talent and support academics, Biocon Foundation has initiated a grant for talented and deserving students of the Guha Centre for Genetic Engineering andBiotechnology, University of Kolkata.

Kiran Mazumdar Shaw’s view about corporate social responsibility:-

“I sincerely believe that it is important to give back to society - the very society that has allowed us to attain the heights we have. At Biocon, our efforts extend beyond the realm of biotechnology through our community-support initiatives and corporate citizenship programmes.

We recognise our responsibility to India - her health, education and environment. Our particular focus is on child welfare as we realise the importance of investing in children, to positively impact their future. Biocon Foundation has been established with the aim of identifying and implementing projects that will impact the social and economic scenario in the country. The main focus areas of the Biocon Foundation are providing quality healthcare and health education for the betterment of Indian society.”

The Mazumdar-Shaw International Oncology Fellows Program is a high-impact, bilateral collaboration with India focusing on cancer research training as its cornerstone. The program offers opportunities for postdoctoral scientists, engineers, and physicians to undertake cancer research at the Koch Institute for Integrative Cancer Research at MIT, working at the interfaces between biology/medicine and the diverse fields of mathematics, engineering, computer science, and the physical and chemical sciences.
The program is funded by Koch Leadership Council member Kiran Mazumdar-Shaw, who is chair and managing director of Biocon, one of India’s largest biotechnology firms. Started in early 2011, the Mazumdar-Shaw Fellows Program brings fellows at the postdoctoral level to the Koch Institute to train for a period of two years. Those researchers will then return to India to help jump-start cancer research programs there. As part of the program, MIT faculty also travels to India to interact with scientists there.

4)Analysis of Kiran MazumdarShaw

As an Entrepreneur:

Kiran Mazumdar Shaw, the chairperson of Biocon started her own business with justRs.10,000 in hand and a degree in Brewery, and went on to become the richest womanentrepreneur in India though she actually became an entrepreneur by accident. Mrs. Shaw wanted to start her Brewing industry and in spite of her degree she established Biocon in1978 which lead to the foundation of India’s Biotech industry.

But still she had to overcome difficulty as banks refused to provide her loans due to the lack of assets and as she was a woman entrepreneur which was a rare phenomenon. Above all, Biotechnology industry was anew field at that point of time. She has become the Poster Girl for Indian women entrepreneurs, and also a source of inspiration to many others, though she had a number of failures, she still became a successful leader. In India, Kiran Mazumdar Shaw is a motivator of all aspiring women entrepreneurs.

Personality Traits:

According to us, a combination of several factors such as Determination, Confidence and Motivation led her to build up a valuable organisation. Let us look at these traits in detail and let us see how they have been factors for the success of Biocon.

Determination:

Initially when Kiran Mazumdar Shaw approached financial institutions, they refused it as:

Company had no assets.
Woman entrepreneur was a new word.
Biotechnology was a new concept to Indians.
In that stage also her determination to build up

Biocon didn’t turn down. As a leader she used to set possible goals like production of enzymes and antibodies from fermentation and research process.
Confidence:

Her confidence level is clearly seen through her activities as she started her business in relatively new and innovative field, even when banks refused loans to Kiran, she still went against all odds as a belief that women can be entrepreneurs. The confidence of Kiran iscommendable when comparing that with the challenges that she faced.

These challenges have evolved with the growth of Biocon. Initial challenge that she faced was her young age, her gender and the nature of unfamiliar business. There was no inflow of fund as banks refused to give loans. Once she overcame all these, she had to face technological challenges to build a Biotech business in a country like India which was not so good in infrastructure at that pointof time.

The hightech biotech industry was dependent on high quality, power, hightechnological lab, equipments etc. Now the challenges have moved on to maintain quality, about growth, managing a large company and managing investor expectations like other CEO’s.

Motivation:

In Biocon, employee feedbacks are being regularly asked so as to motivate them and it will further help them to excel in their field. In Biocon, performance checks are done annually and implemented at the end of the financial year. It helps to measure employee performance and also helps to reduce grievances. They also conduct Behavioural training, leadership programs, and also provide with compensation packages. Due to all these HR policies, the rate of attrition is less than 1% in Biocon.
She has set up a mission for her to build pride into her workplace and also into her country.Work place principles which helped her to keep employees motivated are Excellence,Integrity, Accountability, Organizational Pride, Fairness, Learning, Informality in work place, Elegant and refined working environment.

Socially Responsible:
Along with the growth of Biocon she also involved her support in various community programs and corporate citizenship initiatives with a focus in the areas of healthcare,education, and environment. The Biocon Foundation in 2004, setup “Arogya Raksha Yojana” which is a unique health initiative for rural India. In her effort to protect the uniqueness of her hometown Bangalore, she has been involved in various city improvement programs like the Bangalore Agenda Task Force (BATF).
Risk Taker:

Kiran Mazumdar Shaw is a risk taker, and it can be seen from the beginning of Biocon itself. She has also proved it when she had done her Post-Graduate in brewery which had never been touched by a woman in India. Further when she failed to continue her career in Brewery, she was directed towards Biotechnology industry which was a new business to Indians. But due to her confidence and determination she was able to be India’s richest woman. Other risks which she had taken in her organization were:
Beacon’s R&D programme was rapidly advanced
Took the risk to produce Oral Insulin an Anti - CD6 Monoclonal antibody.

Innovative:
Kiran is an innovator in all sense, in creating a successful company, developing innovative ideas, new products, etc.
Also shehas a clear vision and prefixed objective for her organisation and to achieve those objectives, she encouraged her employees to think innovative and keep on researching. Some of the products of Biocon are:
INSUGEN R: It is useful when Oral agents fail to control blood glucose levels or when therapy with Insulin.
BIOMAB-EGFR: This is used in head and neck cancer.
RAPACAN: This is used for the prevention of rejection and rescue therapy for rejection in renal transplantation.
Mission or Vision…??
Kiran Mazumdar Shaw personally did not believe in vision
She believed more in missions rather than vision
Her mission was to build a biotech company that would be respected globally
And most importantly, she wanted to change perception that India is not capable of a research-based business
To her, a leader should have more missions than vision.
According to her, all leaders should be passionate about their sense of purpose.

As a Leader
We say that Kiran Mazumdar Shaw is a transformational leader as she has similar personality traits like that of other transformational leaders such as Richard Branson of Virgin group,A.G. Lafley CEO of Proctor & Gamble. Kiran Shaw had a vision of her own and she never followed the footsteps of others or never bothered about what others think or say about her.
She also possesses the ability to bring the changes or transform her organisation, and she also has influential power to motivate and encourage her employees to think innovative and research.
Eg. As the book Introduction to Organisational Behaviour by Robins, Judge, Sanghi;describes A. G. Lafley as a transformational leader as he has brought flexibility and creativity to a slow growing company and also the innovations which helped them to achieve the no. 1 position from the 5.
The position in United States for their brand and doubled the sales worldwide. Whereas Mrs. Shaw started her business with the initial capital of Rs 10,000 an dat present the company is worth Rs. 1.79 crore. From this we can observe that she was determined about her company’s success and also has taken number of risks and continue dinnovating new products. As a result Biocon has become the number 1 biotech company in India. ix)Kiran Mazumdar Shaw has transformed Biocon from an enzyme company to a fullyintegrated biopharmaceutical company therefore on this basis we say that Mrs. Shaw is a transformational leader.

Achievements of Kiran Mazumdar Shaw

Kiran Mazumdar Shaw is an entrepreneur who has the potential to take risk and she succeeded in turning Biocon as India’s largest biotechnological firm. She has won many awards and honours. Some of the major awards and prizes are:

She is the list of 100 most powerful women (by Forbes, 2010)

 Nikkei Asia Prizes- Regional Growth by Nikkei Inc. (2009)

Express pharmaceutical leadership summit award for dynamic entrepreneur (2009)

Businesswomen of the year by Economic Times (2009)

Honorary Doctorate from university of Abertay Dundee UK.(2007)

Wharton Infosys Business transformation Award (2006)

Padma Bhushan (2005)

Honorary Doctorate from Manipal Academy of Higher education –MAHE (2005)

Life time Achievement Award from Indian chamber of Commerce (2005)

Honorary Doctorate of Science from Ballard University (2004)

The Economic Times Business Women of the year (2004)

Whirlpool GR8 women award for science and technology (2004)

Australian Alumni High Achiever Award from the IDP Australian AlumniAssociation (2003)

Ernst & Young Entrepreneur of the Year Award in Healthcare & Life SciencesCategory (2002)

Woman of the Year from the International Women's Association, Chennai (1998– 1999)

Padma Shri (1989)

Outstanding Young Person Award by Jaycees (1987)

Rotary award for the Best Model Employer (1983)

Outstanding Contribution Award (AWAKE) (1983)

Gold for Best Woman Entrepreneur, Institute of Marketing Management (1982)

Conclusion:

We would like to conclude our project by mentioning the words of Kiran Mazumdar Shaw herself. This is what she has to say: “Life is about the very difficult journey. But it’s those difficulties that make it very interesting, very exciting. If you had smooth sailing all the way I think life will be very boring. But it’s those challenges that overcoming those challenges that gives you a sense of confidence to move on. So my advice to young people is Don’t Give Up. Life and entrepreneurship is about failures, but learn from these failures. Because failing is big experience, big learning. It makes you stronger, it makes you very confident when you actually overcome that failure. You know, Yes it’s demoralizing and demotivating if you keep failing and if you keep making same mistakes over and over again then there is something radically wrong, but by failing and picking yourself up and then succeeding believe me that failure is a big deal in itself. I have done it and I belong to it all the way.” but its most failure that they made very strong because every time I picked myself up and then succeeded. It’s those failures that I remember which they really made me very strong.”
Ms Shaw’s commitment to affordable healthcare extends beyond business. She is passionately focused on innovation led healthcare solutions for sustainable and affordable healthcare for the marginalized communities. Her philanthropic initiatives include an innovative micro-health insurance program based on delivering cashless healthcare through primary healthcare clinics in rural areas of Karnataka, an education initiative based on math education for school children in government schools as well making quality cancer care affordable to a larger patient population.
She has established the 1,400-bed Mazumdar-Shaw Cancer Center (MSCC) in Bangalore in partnership with renowned heart surgeon Dr Devi Shetty to deliver affordable world-class cancer care services to patients irrespective of socio-economic status and class.

Bibliography

i http://www.moneycontrol.com/news_html_files/news_attachment/2010/Biocon.pdf ii http://www.mariosalexandrou.com/definition/biotechnology.asp iii http://www.hindu.com/mp/2010/04/27/stories/2010042750410100.htm iv http://www.outlookmoney.com/article.aspx?88528 v http://www.forbes.com/forbes/2004/1018/088.html vi http://en.wikipedia.org/wiki/Biocon vii http://www.technologyreview.in/biomedicine/23610/ viii Annual Report 2009-2010 (http://www.biocon.com/docs/AR10-BIOCON.pdf) ix Introduction to Organisational Behaviour by Robins, Judge, Sanghi x Source Youtube http://www.biocon.com/biocon_press_kmprofile.asp?subLink=down http://ki.mit.edu/approach/training/mazumdar-shaw