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Mandal is not afraid to take on pharmaceutical giants head-on. And Lab & Allied has just laid the ground for the tough battle ahead
It’s hard to overstate the mystique surrounding Dr. Suprakash Mandal. He is a man with a vision; to give pharmaceutical giants a run for their money.
His brilliance, vision and the breadth of his ambition makes him the one-man embodiment of the Lab & Allied’s future.
Dr Mandal is the CEO of Laboratory & Allied ltd (Lab & Allied), a pharmaceutical firm that currently manufactures over 250 products. He has been occupying the corner office for the last four months.
“We are aware of the competition in the industry and are prepared for it. We however want to consolidate our generic market segment where we are already strong,” he says during an interview at Lab & Allied’s head office in Nairobi.
The journey of Lab & Allied has not been an easy one, as Dr Mandal reveals. The firm started as a wholesale business where it imported products from Europe, United States and some in India, but later converted into a manufacturing entity in the 1970’s. It started manufacturing about 30 to 50 different medicinal products which has since grown to over 250 products today.
His ambition is to propel Lab & Allied to be a market leader in the pharmaceutical industry with ethics, compassion and sensitivity. This is by bettering the health of patients worldwide through quality and innovation.
He wants to grow Lab & Allied’s Ksh1.5 Billion annual revenue by between 25 and 30 per cent over the next five years, the company therefore plans to embark on an aggressive marketing drive, competing on pricing and high standards and branding of products.
The company which is estimated to command about 35 industry’s market share has so far spent Sh1.2billion investment on expansion and upgrading of its Mombasa Road plant and has set aside Sh1billion for entries into newer markets including Ethiopia, Angola, and DRC as well as in Zimbabwe and Botswana, with between Sh10million to 15million to be spent in each market.
Dr Mandal says the firm is currently awaiting legislation approvals in these markets and further targets to launch 10 new product brands in the next five years.
The expansion fund, he says will come from reserves and some components from bank loans.
The marketing will change the perception by doctors and the public that medicine produced in Europe is better than locally manufactured drugs.
“One advantage we have over these multi-nationals is pricing. These giant companies price their products way higher than what we price ours. If doctors and pharmacists prescribe locally-manufactured drugs, the perception will end,” adding that the company further intends to focus on high-end segment of lifestyle diseases like hypertension, diabetes and progressive diseases and antibiotic drugs.
That and use of other marketing channels will lead to a rise in sales of up to 10 times by 2020.
The company also plans to brand and label its products to increase customer retention. The CEO says this will be followed by venturing into providing drugs for lifestyle diseases, antibiotics, pain and chronic illnesses.
“Though we had previously branded our products, we did it on small-scale and it was very difficult for our consumers to notice us,” says the father of two, who has been in the marketing profession for the last 20 years.
As it enters the prescription market, it plans to segment its product portfolio into six divisions.
And just like many businesses, Dr Mandal says quacks and counterfeits have hindered the growth of the company. Though acknowledging the efforts of State agencies responsible for cracking down on the menace, he reckons that a lot more needs to be done.
“Do the impossible” is one of Dr. Mandal’s slogans, and he has set out to make it happen. He’s looked to spread the costs as he seeks a mammoth package of incentives from states for the right to be the company’s home, and all things are pointed towards him succeeding in his quest to breathe fresh air of optimism and success into the pharmaceutical outfit.
“To succeed, you need to fill a market gap and have a good team behind you. The team also needs to embrace you,” he concludes.
About Lab & Allied
-It was incorporated in 1970 and began manufacturing of affordable and essential generic drugs. Lab & Allied is 45 years old today with a total of over 500 employees.
-Tanzania is the company’s largest market state with operations in Uganda, Rwanda, Burundi, Botswana, Ethiopia, Malawi and Zambia
-Plans to spend Sh2.2billion for production capacity, Ksh1.2B on expansion and upgrades of its facilities.
-Lab & Allied has operations in over 10 African countries and plans to enter five more nations over the next five years.
By Steve Umidha