Dr. Reddy's New Corporate Identity|Business Strategy|Case Study|Case Studies

Dr. Reddy's New Corporate Identity

            
 
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Case Details:

Case Code : BSTR013
Case Length : 9 Pages
Period : 2000-2001
Organization : Dr. Reddy Labs, American Remedies Ltd, Cheminor Drugs Ltd.
Pub Date : 2002
Teaching Note : Available
Countries : India
Industry : Healthcare & Pharmaceuticals

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"In 1999, we got the critical mass and the feeling within the company was that we had arrived. We were close to the Rs 1,000-crore mark in turnover, which called for a new way of looking at things and taking the message to the stakeholders."

- Satish Reddy Chief Operating Officer, Dr. Reddy's Laboratories.

"The new identity highlights the company's ethos - a caring organization that leverages its expertise in research for a healthier life."

- Dr. K. Anji Reddy, Chairman, Dr. Reddy's Laboratories.

Introduction

On April 26, 2001, Dr. Reddy's Laboratories (DRL) unveiled its new corporate identity and philosophy, reinforcing its commitment to bring hope to life through meaningful research. (Refer Exhibit I) It unveiled a new logo, new colors, (Refer Exhibit II) a code of conduct for employees, a Dr. Reddy's anthem and the new base line - Life, Research, Hope.

DRL had changed its corporate identity for the second time in less than a decade.1 This was despite the fact that DRL already had a well-defined, widely recognized identity. Analysts felt that the change in corporate identity was necessary as DRL was targeting the global market.

DRL officials felt that the company needed a corporate image that was more in tune with its international profile. The new corporate identity was forged from the merger of DRL, Cheminor Drugs Ltd. (CDL)2 and American Remedies Ltd. (ARL)3 into a homogenous unit in 2000 and DRL's subsequent listing on New York Stock Exchange (NYSE) in 2001.

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Background Note

DRL was founded in 1984 by Dr. K. Anji Reddy (Dr. Reddy) to create and deliver innovative pharmaceutical healthcare solutions.

DRL became a public limited company in 1985 and had an IPO of equity linked debentures aggregating Rs.24.6 million in May 1986. During the 1990s, the company consolidated its position in the domestic formulations market through aggressive product launches as well as acquisitions.

By late 1990s, DRL transformed itself into a global pharmaceutical powerhouse with research and drug development as its strengths. DRL's operations were divided into six divisions including branded finished dosage, generic finished dosage, bulk actives, custom chemicals, biotechnology and diagnostics (Refer Exhibit III)...

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1] DRL undertook a branding exercise in 1994.

2] Incorporated in 1981, CDL had been a part of DRL since 1984.

3] ARL was a Chennai (TamilNadu) based company, with a strong presence in the neutraceutical market. DRL acquired ARL in 1998.

 

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