Mehernosh B. Kapadia wins in transformation agent mid-size category
Anusha Subramanian July 5, 2011
Mehernosh B. Kapadia is soft-spoken, extremely patient and prudent - not exactly qualities that one would associate with the winner in the category of Best Transformation Agent.
But it is this combination - together with work practices such as an open door and aversion to micromanagement - that have helped him transform GlaxoSmithKline Pharmaceuticals, or GSK Pharma, and keep it at pole position.
After ambling along for five years, GSK Pharma stepped up the pace from 2008 (it follows the calendar year) to nine per cent per year. In 2010, net profit increased by 15 per cent to Rs 581.38 crore, net sales by nearly 13 per cent to Rs 2,112 crore.
Kapadia played a key role in allocating resources for promotion, expanding the field force and ensuring the right product mix. The company currently has Rs 2,000 crore in cash reserves.
Kapadia helped the process by controlling expenses, generating enough cash and constantly looking at ways to deploy accumulated cash balances.
"Sales are vanity, profit is sanity and cash is king" is Kapadia's favourite aphorism. But he worries about talent retention. "How we manage our talent and look after our human capital will be key in the years to come," he says. What of the future? "We want to commercialise all our assets, especially the patented products, branded generics and vaccines, which currently contribute 11 per cent to our sales, but could contribute up to 20 per cent by 2015," says Kapadia.
Alongside there will be geographical expansion and in-licensing deals with companies that are not yet in India. "We will add branded generics in areas where we are not adequately represented," says Kapadia.