Good article on Laurus with some interesting inputs…Translation available in english
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my apologies but could not find a translator in the above article.Could anyone please let know the link for English translator or what’s written in Telugu.
Thanks in advance.
If you open it on mobile, Google automatically shows an option to translate into English for me. Not sure what the experience is like on web, it should be possible to install a chrome Google translate extension which translates each webpage on demand.
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translated link:
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the article about his journey from childhood to now .he has worked all the these years before he starts his own company “LAURUS” .it talks about his educational journey ,family members details .
Points to be noted .
- Started giving free food to his employees
- His top team is his friends only .
3)HIV related revenue earlier it was 80% now down to 73% .reason being said was their presence in different segments in the last 10 years. - Chava is having 25% share in company
- Current CFO ravi kumar who has been with him for the past 25 years was room mate when Chava was pursuing PG
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The biggest takeaway for me from this interview is that
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Dr.Satyanarayana Chava has diluted his share for Laurus growth. He has helped and carried his friends and relatives along the Laurus journey for the past 25 years. He gives his employees free food. He for one takes care of all the stakeholders.
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It looks like he had extreme confidence on Laurus path right from the start. He is one that will not shy away from growth opportunity and will pursue it aggressively. In the first few years Laurus was a cash burning machine and Dr.Chava’s close entourage were also significantly tied to this venture. He could have gone for short term benefits but he emphasized on R&D to build process expertise and build capabilities, had they instead invested on manufacturing they would not be an innovator but at best an average company. He is definitely a visionary and a strategic thinker.
He is not risk averse he is a risk taker he will aggressively pursue new opportunities. The deadly combination of vision and execution capability seems to be the case in Laurus till now. It is to be seen how the next phase of growth from Laurus Bio, CDMO etc. will be scaled. Will Laurus Bio be a world class innovator? Only time will tell but future looks exciting for Laurus.
Disc: Invested
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Humble Beginning
One small suggestion changed his life
He went to take admission in Bachelor of Sciences in RVN College Amaravathi, he wanted to take Physics as his main subject but one of his sister’s friend spotted him in the college and suggested take Chemistry, chemistry faculty is very good in this college, so this changed his life
Chemistry - Andhra University First in terms of marks
Did Masters in Organic Chemistry from Andhra University
After masters used to take tuitions for students preparing for EAMCET (Entrance exam for Engineering and Medicine )
Joined PHD in Andhra University - during this Stint got an opportunity to work as a faculty in Geetams (my favourite location in Vizag - Rishikonda the beautiful beach view from the college 
)
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Ranbaxy - Delhi (Management Trainee in R&D - Two Years) - First Job after PHD (Already married and with kids , how can you survive with this kind of salary in Delhi that too with kids ? I am ok, i can adjust to excel in my career)
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Veera Labs - Hyderbad (Joined in 1995) - Head of R&D
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Moved to Vorin Labs , later this company merged into Matrix Labs , later Veera Labs also merged with Matrix
By this time he worked in all the departments ( R&D, QC, Manufacturing, Business Development ) of the organisation and gained the expertise in every aspect of the pharma cycle , filed many patents during my stay in Matrix labs, due to these company made lot of profits and that give confidence that there is huge demand for innovation
Due to difference of opinion with the boss decided to come out of Matrix Labs
With the experience and conference in R&D opportunity size in India started Laurus Labs in 2005
Angel Investors : Family, Friends invested and Ex Colleagues , PG Class Mates joined as staff
Finances : Reached out to banks for funding and said we will incur losses in the tune of 80 crores due to the nature of the business (R&D) and they understood the challenges and agreed to lend
First focus is on drugs that helps society hence picked HIV drug for our research
Break fast , lunch and dinner free for all the staff who are on the relevant shifts
Vizag plant has a kitchen that can cater 7000 people
Food is free for the people for the visitors of plant as well
Usually if you go pharma plants you get chemical smell everywhere but you will not have that kind of feeling in our plant, many people said that you are spending too much on welfare but we are always first in “Great Place Work” rankings
My share in the company is 25%, if I had thought I have to have more than 50% share, I doubt we would have reached to this stage ( 5 Stars here )
At the moment total 5000 staff my aim is to double that number by that time I retire
Science on wheels - mobile lab - visits 20 government schools
Organises Science fairs every year
WIth the help of Geetams assisted 250 students to complete integrated MSC courses for free
Wanted to highlight one more thing about Vizag, it has reputed Andhra University (top notch University in various course and dream destination for many in AP ) Also Andhra Medical College and very good private institutes like Geetams , all these help to hire the best talent for the company
Daughter - Clinical Research - MS MBA, Son in Law working in Laurus - MS MBA (ISB) worked in McKenzie
Son - MS, MBA (ISB) , worked in Reddys currently working in Laurus
With the inspiration from son and son in law have done my executive MBA from ISB
Interesting fact : All the promoters of Pharma companies meet with their families once a month and they don’t discuss anything about the business
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Laurus Labs,
will be included in “Nifty Midcap 150” index.
Laurus labs will be included in “Nifty Healthcare Index”. It will replace “Glaxo smith/GSK” in this index.
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Thanks for all the information about the people of the company. I always wanted to know more about the company culture. I feel the nature of the CEO and the fact that he has long term working relationship with his employees means lesser key man risk.
Disclosure: Largest holding in my PF. Always wanted to ask about company HR/culture in conf call, but somehow never felt like the right place to ask.
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you need to correct last point of your translation “and they do not discuss about business during that time”
LaurusLabs
won the “INDIA PHARMA LEADER AWARD”, Sri.D.V.Sadananda Gowda, Hon’ble Minister of Chemicals & Fertilizers, Govt of India, presented the award to Mr. CHV. Ramana Rao, VP, LaurusLabs at FICCI house, New Delhi today on Feb 25, 2021.
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https://twitter.com/punitbansal14/status/1366357668286324739?s=20
Strong increase in #Dolutegravir (DTG) regimens Dovato (DTG/Lamivudine) share growing in new & switch patients, sales grew >100% in FY20 Sales of DTG products from Innovator in FY20 ~ £4.7B #Lauruslabs has 30% MS in Dolutegravir as API & also expanding capacities
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Promoters sold 1.3% stake in the company to remove 4.5% pledged shares in the company. Smart move in my opinion, Dr.Chava took advantage of the recent run up in prices and locked in his gains while doing away with pledges.
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My view on the sale of shares by laurus labs promoters
In the year 2018 Dr. Chava and Mrs chava purchased laurus labs shares worth about 150 crores which is 3% of the company share holding. For which they have to avail loan of 150 crores by pledging their existing share holding(in 2018 market cap of company around 5000 crores) The interest for 1 year would be at around 18 crores per annum @12% ROI.As the promoters don’t have any other business they have to avail Bigger loan to makeup for the interest payments. The loan amount would be 150+54( 3 years interest upto 2021) I.e, 204 crores. Today they sold of shares worth 257 crores worth shares. By this the promoters would revoke the pledged shares and they would be having 43crore surplus funds. As far as I can see dr chava pulled of a great trade in believing the growth potential of his company and it paid off well. Now everyone will ask why Dr chava sold his shares?? Can’t he remove it by his own funds?? My answer would be how a person who has invested all his funds to build such a company and having no interest in other businesses can repay the loan of around 200 crores without selling part of share holding??. The salary of Dr.chava is around 8 to 10 crores. There is no chance he can repay the loan with the salary. He can’t even make the interest payments with the salary.
This view holds good if and only if he don’t sell any shares in future from now onwards. Otherwise the shareholders should be careful .
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Calculations will still not change much. As per the last shareholding pattern, Dr. Chava and family hold 15.43 Cr shares. This year dividend is 1.2 Rs. (0.8 + 0.4). They would have got around 18.5 Cr dividend. Take 42% tax on dividend at highest slab and they would have in-hand dividend of 10.73 Cr.
This is not even enough to pay interest on 200 Cr loan. Paying off principal is another matter altogether.
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