Dr. Reddy's New Corporate Identity

It had increased drastically between 1980 and 2000. The 250 leading pharmaceutical companies controlled 70% of the market. Glaxo-Wellcome was the market leader with 6.3% of the marketshare in 1999. The industry had become extremely competitive due to fragmentation with severe price competition and government price control. Over the years, the Indian pharmaceutical industry had evolved around the opportunities presented in the regulated environment:

» Lack of product patent: The Indian Patent Act of 1970 allowed Indian companies to reverse - engineer the patented molecules and launch them in the domestic market...

In the new corporate identity, changes were carried out at two levels-

i) institutional: implemented throughout the company, and

ii) at a more individual level surrounding the persona of the founder, Dr Reddy. The new corporate identity plan also emphasized control of the top management should be passed onto by the second generation: Dr Reddy's son-in-law and Chief Executive Officer, GV Prasad (Prasad), and son and Chief Operating Officer, Satish Reddy (Satish). Commented Prasad, "We have almost reinvented ourselves, compared to what we did in 1994 when we only tinkered with the logo..."