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Walking With the Giants

Although Sun Pharma has become the first Indian pharma company to cross the Rs 1 lakh crore mark in capitalisation, it lags way behind globally...

Sun Pharmaceuticals is the newest addition to the industry bellwethers of India, with its market capitalisation crossing the Rs 1 lakh crore mark. It is the first Indian pharmaceutical company to have crossed this threshold. There are currently only 13 other companies which are in the same league. A pharma company having reached this size is pretty surprising as the industry is a very fragmented one and there are numerous players in this space.

Looking at traded companies with a market cap of over Rs 1,000 crore, pharma sector comes second only to banks in the total number of companies but ranks 27th when we look at average market capitalisation per company.

There are several other companies such as DLF, MMTC and Reliance Communication that had reached this mark, but could not maintain that level for long. It remains to be seen whether Sun Pharma can continue to grow at the current rate and how the new drug pricing regime, which came into effect this May, will affect its growth.

Although Sun Pharma is 3 times its next competitor -- Dr Reddys Laboratories -- it is still just a dot on the global scale when compared to the likes of Johnson & Johnson, which is the largest pharma company in the US with a market cap of Rs 13,47,581 crore, and Pfizer, the second-largest, with a market cap of Rs 11,35,640 crore.