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City-based Divi’s Laboratories became the second pharma player in the country, after Sun Pharma, to enter the big league of companies with a market capitalisation of Rs 1 lakh crore or more. Led by Reliance Industries, there are just 31 companies, out of a total of about 5,000 companies in India, which can boast of this milestone.
Divi’s has set a blistering pace on the bourses in the past decade: From about Rs 8,000 crore in December 2010, the company’s market value at Thursday’s close was Rs 1.02 lakh crore — a jump of over 12 times during this period. The stock closed the day’s session on BSE at Rs 3,826, more than double from its March low of Rs 1,633. The day the company, a major player in the contract research & manufacturing services space (CRAMS), reached a milestone on the bourses, it had to encounter protest by hundreds of farmers and fishermen at one of its underconstruction plant at Kothapakala village in East Godavari district of Andhra Pradesh. The protesters fear that effluents from the plant may adversely affect their catch.
According to analysts, the main ingredient of the company’s success is its positioning as the one of the key global suppliers of APIs like Naproxen (nonsteroidal anti-inflammatory drug), Detromethorphan (cough suppressant) and Gabapentin (anti-convulsant), a position it attained by edging out some global pharma giants, and sharp focus on CRAMS.