Dilip Shanghvi, India's fifth wealthiest individual, owns Sun Pharmaceutical Industries, which has planned a two-week tour to Vietnam for 4,500 of its employees. The trip will take them to various locations in northern Vietnam, including Hanoi, Ninh Binh and Ha Long Bay.
Forbes values Shanghvi’s net worth at $29.3 billion as of August 26, 2024. Despite leading a pharmaceutical empire generating over $5 billion annually, Shanghvi's journey had humble beginnings.
Born in 1955 in a small town in Gujarat, he grew up in Kolkata, West Bengal, where his father operated a pharmaceutical trading business, dealing in branded and generic drugs. While pursuing his bachelor’s degree in commerce from the University of Calcutta, Shanghvi assisted his father and soon envisioned manufacturing his own pharmaceutical products instead of merely distributing others'.
After graduating in 1982, Shanghvi borrowed 10,000 rupees (about $120) and, together with a business partner, Pradeep Ghosh, founded Sun Pharmaceutical Industries. Starting as a small operation in Vapi, Gujarat, the company focused on a single drug for bipolar disorder. Leveraging his business insight and a strategy centered on acquisitions, Shanghvi quickly found success, expanding Sun Pharmaceutical in its first year.
Recognizing the need for in-house manufacturing, he secured loans to establish a production facility in Vapi. He also founded the Pharma Advanced Research Center to enhance the development of generic drugs. The following year, Sun Pharmaceutical went public on the Bombay and National Stock Exchanges, with demand for shares exceeding supply by 55 times.
In 1997, the company made its first move into the U.S. market by acquiring Caraco Pharmaceuticals, giving Sun access to the world's largest generic drug market and essential expertise in navigating the Food and Drug Administration's regulations.
Over the years, Sun Pharmaceutical has acquired more than a dozen pharmaceutical companies, focusing on turning around struggling or unprofitable firms. The company's largest acquisition came in 2014, when it purchased Ranbaxy Laboratories for $4 billion, marking the largest deal in Asia's pharmaceutical industry that year.
In a December 2013 interview with The Economic Times, Shanghvi reflected on his cautious approach, saying, "My limitation is that I don't have a clear vision beyond this year. I try to stay focused on what I need to deliver this year. As for the next year, we try and see that we remain consistent. Essentially, we try to be better than what we were the previous year."
By the time the Ranbaxy deal was finalized in 2015, Sun Pharmaceutical had become India’s largest pharmaceutical company and the world’s fifth-largest generic drug maker. That year, Shanghvi briefly overtook Mukesh Ambani as India’s richest person, although Ambani reclaimed the title a few months later.
In 2023, Sun Pharmaceutical strengthened its position further by acquiring U.S.-based Concert Pharmaceuticals for $576 million, as reported by Financial Express.
Despite his immense wealth and accomplishments, Shanghvi prefers to stay out of the public eye and is uncomfortable with the attention that comes with being one of India’s wealthiest individuals. He leads a modest life and avoids flaunting his financial success. His wife, Vibha, is occasionally seen traveling in an auto-rickshaw, and Shanghvi himself enjoys South Indian food and dislikes traveling.
