This article is based on discussion between Mahesh Bindra and Miss. Kiran Mazumdar-Shaw:
- What challenges did she face as a woman entrepreneur? and
- How she became a successful entrepreneur?
### Highlights from Miss. Kiran Mazumdar-Shaw Professional Journey
- 1978 – Established Biocon India
- 2004 – Listed Biocon India in Bombay Stock Exchange and become a Billion Dollar company
- Currently – More than 5 Billion Dollar
- Miss. Kiran Mazumdar-Shaw has more than 60% holding in Biocon India.
**Challenges faced by Miss. Kiran Mazumdar-Shaw while Establishing the Company**
- Miss. Kiran Mazumdar-Shaw does not have any business experience. She was searching for a job but accidentally became an entrepreneur when an Irish businessman wanted her to be his business partner in the company that he wanted to start in India.
- It was not easy to get Foreign Direct Investment (FDI) in India at that time.
- Miss. Kiran Mazumdar-Shaw does not have enough money to start the business.
- Banks were not ready to give loan to Miss. Kiran Mazumdar-Shaw because:
- She did not have any collateral to give to banks.
- She was entering into a high-risk business – Biotechnology – which was a new concept, and bankers did not have any knowledge about it.
- She was the first woman who is starting a business.
- During recruitment, people were not ready to join the Biocon India as they were not able to accept a woman as their boss. They felt a lack of job security.
**Philosophy of Biocon India**
- Biocon India should be a research-led business.
- This company should be an opportunity for scientists.
- Biocon India has 12,000 employees, and half of them are scientists.
**The mission of Biocon India**
**_To produce medicines that can be bought by 100 crores people._**
### **How Biocon India defeated MNCs?**
**1. Working of MNCs:**
- MNCs want to earn lots of money by selling a few medicines.
- They follow the business model – **“Low Volume, High Value.”**
- They give benefit to only affluent people.
**2. Working of Biocon India:**
- Biocon India wants to sell 100 crores medicines at small margins.
- They follow the business model – **“High Volume, Low Value.”**
- They give benefit to all whether they are from affluent class or the general public.
#### **Reduction of Prices of Expensive Drugs**
**1. Diabetes Medicine**
- Cost of Diabetes Medicine – Rs. 50-100 per day
- Cost of Insulin – $5 per day
- Biocon India has worked a lot to reduce the cost of insulin, and it recently announced in one of the United Nations’ Forum that the Biocon India’s Insulin would cost **10** **cents per day**, i.e. **Rs. 7 per day**.
**2. Cancer Medicine:**
- Earlier, Breast Cancer medicine – Trastuzumab (or Herceptin) – Costs Rs. 2 Lakhs per dose (i.e. Rs. 20 -50 lakhs a year)
- Biocon India decided to reduce this cost by making a Biosimilar Trastuzumab for the World. Initially, Biosimilar Trastuzumab costs Rs. 50,000 and now it costs less than Rs. 20,000.
- They have also expanded the accessibility of this medicine more than 10 times.
- They have also developed Biomab medicine for head and neck cancer.
### Learnings:
- Identify the business opportunity
- Always determine ways to overcome business challenges
- Make a mission and vision statement of your company
- Price your product in a manner that maximum people can buy it
- Invest in research and technology to make a better quality product at low prices