The journey of Sanjeev Jain and Sandeep Jain, the promoters of Akums Drugs and Pharmaceuticals, mirrors a compelling narrative akin to a movie plot. For thirty years, their family resided in a rented home in Delhi. Today, their company stands as the foremost leader in contract drug manufacturing nationwide. Let’s delve into their remarkable journey of success.
Early Ventures and Family Struggles
Arriving in Delhi, both brothers faced challenging financial circumstances within their family. They somehow managed to clear their 10th and 12th-grade exams. Instead of pursuing higher education, they contemplated entrepreneurial ventures. Initially considering a paan shop and a juice bar, they eventually leaned towards wholesale medicine distribution. With modest savings and assistance from relatives, they inaugurated a compact 55-square-foot store near Chandni Chowk in Delhi’s Bhagirathi Palace.
Sanjeev Jain, the elder brother, recalls that their father moved to Delhi from Rohtak in 1961. Due to their father’s limited income, they lived in rented accommodations and saved diligently over the years. After a 30-year struggle, they finally succeeded in building their own house in 1991. Until then, their lives had been spent in rented homes.
Medicine Scarcity Amid Demand
Sanjeev Jain mentions that their pharmaceutical shop began to thrive. However, during that period, there was a significant scarcity of medicines in the market. Despite the growing population, the production of medicines was insufficient to meet demand. Every year during the monsoon season, malaria outbreaks would commence, yet their medicine wasn’t accessible. They had to start stocking up from April onwards. When they inquired with manufacturers, they were informed about inadequate manufacturing capacity, particularly for tablets or capsules.
During the peak season at their shop, there was consistently a shortage of medicines for ailments like malaria, tuberculosis, and even common fever and body pain. One day, they queried a prominent pharmaceutical company owner about the lack of capacity expansion. He advised them to establish their own factory: “Build a factory, and we’ll purchase medicines from you.” This suggestion ignited their aspiration to establish a Pharmaceutical Contract Development and Manufacturing Organization (CDMO).
Infrastructure Challenges Overcome
Sandeep Jain describes how their initial factory was established in Sidkul, Haridwar. When they acquired the plot, it lacked basic infrastructure—there were no roads, electricity, or telephone lines. They took it upon themselves to construct an 800-meter road to facilitate the transportation of materials to the factory by trucks. Similar challenges were encountered with communication infrastructure like telecommunication. They invested Rs. 1.17 crores in setting up the factory, utilizing all their savings, which created a shortfall in working capital. To resolve this issue, they mortgaged their nearby house to the bank and secured the necessary working capital.
Rapid Expansion
After the factory commenced operations, there was no stopping them. They expanded from one plant to two, then three, four, and beyond. Presently, their company boasts 15 facilities that manufacture a wide range of products such as tablets, capsules, injections, ointments, and more. Sanjeev Jain highlights that their factories are currently engaged with 18,000 Stock Keeping Units (SKUs). They serve approximately 1500 clients, including 26 of the top 30 pharmaceutical companies in the country.
Connectivity Error
Despite the availability of mobile phones at the time, Sidkul lacked a cell tower, rendering mobile phones unusable inside the factory premises. One day, they devised a novel solution: typing messages and releasing them into the air to catch a signal. If there was a signal reception above, the message would transmit successfully. This innovative approach proved effective. Subsequently, they erected an iron tower within the factory compound. Climbing the tower enabled them to use their mobile phones and facilitate communication via text messages, thus resolving the communication issue.
From Shop to Success
In 1961, the Jain family relocated from Rohtak, Haryana, to Delhi. The family’s breadwinner worked in various private companies to sustain their household, yet they were unable to acquire their own home. Their two sons discontinued their education after completing the 12th grade. They ventured into opening a wholesale medicine shop, which unexpectedly provided them with everything they needed: the financial means to purchase a house and the inspiration to establish a pharmaceutical company. This story revolves around Sanjeev Jain and Sandeep Jain, the promoters and managing directors of Akums Drugs and Pharmaceuticals Limited.
Clients network
When asked about their customers, they say there are too many to count. Akums Drugs makes medicines for lots of Indian and foreign companies. Some of them are Abbott, Albert David, Alembic, Aristopharma, Bayer, Cadila, Cipla, Dabur, Emcure, Dr. Reddy’s, Procter & Gamble, Sun Pharma, Piramal Healthcare, Zydus Cadila, Jubilant Pharma, Glenmark, Intas, and more.
Largest company in India
Sandeep Jain explains that Akums Drugs and Pharmaceuticals Limited is now the largest company in India in the pharmaceutical Contract Development and Manufacturing Organization (CDMO) sector. Globally, there’s only one company larger than theirs in this field, which is Lonza Group from Switzerland. Currently, their facilities employ 16,000 individuals, including 7,000 permanent employees and 9,000 outsourced workers.
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