.
Responsible businesses make good businesses! Don't you agree? One such responsible business that has achieved great heights, was launched with a humble seed capital of 10,000 rupees in 1978 by a young and aspiring 25-year old entrepreneur in Bangalore, India. Despite all odds, it went onto become one of India's most respected and foremost biotech and pharmaceutical giants, Biocon, under the exemplary leadership of its founder and chairperson, Dr. Kiran Mazumdar-Shaw.
Over the years, Dr. Mazumdar-Shaw has strived hard to grow a company with a strong sense of corporate social responsibility. Today, Biocon prides itself in "delivering affordable innovation" in healthcare for millions across India and the world. Dr. Mazumdar-Shaw has also led an exceptional series of discussions on "India's Healthcare Challenge", which is a great learning resource for anyone looking to improve healthcare in the developing world.
She is widely recognised as one of the most influential and powerful women in the world of business (by Time, Forbes and Financial Times). Yet, at every stage of interaction with her, I was simply amazed by her exceptional humility and strong personal sense of responsiblity. Here is a glimpse into her remarkable journey as an entrepreneur and as a champion of healthcare improvement in India.*
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Photograph of Dr. Kiran Mazumdar-Shaw (Courtesy: Biocon Limited)
.
The Interview:
Q. Dr. Mazumdar-Shaw, please share what inspired you to become an entrepreneur at quite an early stage in your scientific career.
A. I call myself an accidental entrepreneur. I was all set to take up a brewing job in Scotland when a chance encounter with an Irish entrepreneur led me to set up a biotech business in India instead.
I owe my drive and determination to my upbringing, which instilled in me a set of values that make me who I am. I was greatly inspired by my late father, who was a well-known name in the brewing industry. It was he who encouraged me to take the road less traversed and gave me the confidence to pursue my path of entrepreneurship. He prodded me to persevere and never give up in the face of adversity but rather learn from failure and seek new ways of doing things. In a sense, I learnt my lesson on differentiation from my father, which then became my business hall mark. My Irish collaborator, Les Auchincloss, also infused a tremendous sense of confidence in me, which enabled me to start Biocon in 1978 as a 25-year-old woman entrepreneur. It was he who gave me the break and the challenge that gave me a strong sense of purpose.
.
.
Q. What were some of the initial challenges you faced as an entrepreneur and how did you overcome them?
A. When I started Biocon in 1978, the obstacles I needed to navigate were manifold – ranging from infrastructural hurdles to issues related to my credibility as a business woman. With no access to venture capital, money was scarce and high-cost, debt-based capital was all I had. Beyond the financial challenges was the business of biotechnology itself, which was unheard of in India. Enzyme technology, the biotechnology with which I started, was a new concept back then. There was skepticism about the commercial viability of eco-friendly but expensive enzymes to replace cheap chemical processes.
My challenge was to get the market to accept biotechnology and change old practices. Moreover, enzyme manufacturing for industrial application involved sophisticated fermentation procedures, which demanded uninterrupted power supply and precision process control. However, the unreliable power supply situation and the limited resources that I had at that time were a serious challenge.
Recruiting was another big challenge. My gender was a huge perceived handicap. I couldn't get anyone to join me not only because I was a woman but also because mine was a start-up company. I couldn't even get a secretary to work for me. However, I refused to let these challenges intimidate me. Eventually, a few brave folks did join me in my entrepreneurial journey.
.
.
Q. What personal and professional qualities in your opinion have enabled you to ascend the heights of your profession?
A. I have been single-minded in my determination to see my venture succeed. I have never been the one to give up easily. So, when I faced the initial hiccups that any start-up in India faced during the pre-liberalization period, I simply became more determined to make it work.
What gave me the courage to pursue my ambition was my ability to attract scientific talent – people who were as excited as me, to create a new business model based on innovation and differentiation. Another key enabler was the fact that I had an Irish joint venture partner who was willing to support me through my starting phase.
I am also open to new ideas, experimentation and innovation. I knew then that we could make Biocon work if we followed a strategy of differentiation by leveraging our early-mover advantage. Instead of being hampered by what we did not have, we tried to use what we did have to our advantage and, through home-grown innovations, maximized results.
.
.
Q. You are credited for pioneering biotechnology industry in India. What do you see as the key innovations of your company, Biocon?
A. My passion for innovation and my interest in the "business of science" has seen Biocon commercialize many innovative platforms and products. We started with a diverse portfolio of innovative enzymes and were credited with several proprietary platform technologies (e.g. a solid-state fermenter, the Plafractor, followed by a recombinant Pichia fermentation platform that has enabled us to commercialize the world's first Pichia-derived recombinant human insulin and insulin analogs). This has allowed us to be the lowest-cost producer of Insulins which are today competing in over 40 countries across the world.
On the original innovation front, we have commercialized the first novel biologic in India, an Anti-EGFR monoclonal antibody, Nimotuzamab, for head and neck cancer, which has benefited over 6000 patients since its launch in 2006. Most recently, we have commercialized our second novel biologic, Itolizumab, for Psoriasis. This drug has an enormous potential to address a number of unmet needs of multiple autoimmune diseases like Multiple Sclerosis, Sjogren's Disease, Lupus etc. We also have a very exciting oral insulin development program which can transform Insulin therapy for diabetic patients. It has also been my unfulfilled aspiration to deliver a global blockbuster from Biocon, with a "Made in India" label.
.
.
Q. How would you describe the entrepreneurship climate in India? What needs to be done to make it more conducive to the birth and growth of new enterprises in India?
A. India is a fertile ground for entrepreneurs, given its large pool of world-class talent and resources. India's ability to generate wealth and create social good will come if we let entrepreneurs flourish by encouraging and enabling innovation. Innovation and biotechnology can transform our numerous challenges – healthcare, education, development, agriculture, environment, and energy among others – into opportunities by developing innovative products that can benefit millions and drive economic growth.
However, unlike in the West where capital markets are willing to invest in innovation for a long term, innovation in India is viewed as high-risk, low gain option and hence not investor-friendly. Investors in India are not prepared to invest in capital intensive long-term innovation based business models. India, therefore, needs a robust innovation "ecosystem." The government needs to establish strong industry-academia linkages to foster the spirit of enterprise and drive employment. However, a national innovation ecosystem is not enough, because if innovation is to flourish, ideas have to be funded to bring them to the market.
I believe the solution here is to set up a secondary stock exchange that allows technology-driven, revenue-less, innovative companies to access capital markets, emulating the role of NASDAQ in the US for technology companies and AIM in London for technology companies in the UK. If this were to happen, it will spur innovation and attract much-needed investment.
.
.
Q. How can the gender gap be bridged in senior management positions, in the corporate world?
A. It's true that even today board rooms and senior management positions are still the preserve of men except for a handful of companies. However, it is also true that the situation is changing, albeit slowly. I have seen a positive shift in gender equality in Corporate India. I do believe that women are being provided greater opportunities to participate in strategic areas of management.
Indian business women like Indra Nooyi, Chanda Kochhar, Naina Lal Kidwai, Shikha Sharma, Swati Piramal, Anu Agha, Swati Piramal, Sulajja Firodia Motwani and Zia Mody have put India on the global firmament. These women have gained respect and made a big difference to the corporate world by managing the gender bias that exists in our world.
These enormously talented women in our country can be role models and drive corporates to realize that gender diversity is of key importance in all Boards. I believe gender diversity can introduce a balance of views and opinions that allow for more informed decisions.
.
.
Q. How do you keep your team energized and motivated as their leader?
A. I believe in empowering, trusting, enabling and mentoring leaders at multiple levels in my team. By providing ample opportunities to others to develop their leadership potential, one can instill a sense of ownership among team members to take forward the leader's vision and mission. I also believe in leading from the front. At the same time, I am tremendously result-oriented and always open to new ideas.
.
.
Q. What are some of your favorite lessons that you have learnt from your own mentors?
A. Right from my childhood days my parents instilled in me the values of integrity and humility. My teachers at Bishop Cottons taught me how to think for myself and to excel in everything I do. A few of my professors at college taught me to focus on doing things differently and creatively in order to make a difference. These exceptional professors encouraged me to develop my own perspective and personality.
"Science is about curiosity-driven learning" is what one of them said and it is etched in my mind even today. "Unless you are curious, you will never find science exciting" I was told. It is this approach that has allowed me to pursue a path of innovation. Innovation, as I understand it, is both about doing different things as well as doing things differently.
.
.
Q. What policy, practice or mindset changes can help take India from being a collaborative manufacturer to a strong pioneer in innovation on the international stage?
A. As a traditionally risk-averse nation, India has rarely been at the forefront of innovation. Indian companies have mostly imitated others and became very good at it. Even in the biotech sector, most companies operate in the low-risk services and generic diagnostics, vaccines and therapeutics space.
It is time for biotechnology companies, especially in India and other developing countries, to re-orient their efforts to aggressively harness innovation through partnerships and collaborations to attain the dream of ensuring healthcare for all. As I have mentioned earlier, the government also needs to be an enabler by putting in place policies that will create a robust innovation "ecosystem" in India.
.
.
Q. You champion the cause of healthcare improvement in India. What do you see as the major challenges & opportunities on this mission?
A. Today, the Indian government has abdicated its responsibility to provide basic healthcare to its people, but it's holding a gun at the pharma industry and asking it to shoulder the burden. The industry has worked very hard to create a cost-effective and competitive sector. It is actually producing the cheapest drugs in the world, but on top of that the government is dictating how much profit the pharma industry is allowed to make. A complete lack of political will and effective administration have kept accessible and affordable healthcare out of the reach of most Indians.
The lack of a universal healthcare system in our country compels patients to bear almost 80% of the healthcare costs directly from their pocket. The opportunity therefore lies in leveraging India's value advantage and scientific excellence to come up with innovative technology for offering world-class products at affordable prices, thus making a huge difference to millions of patients in India. This is exactly what Biocon has been doing.
.
.
Q. What initial steps would you recommend on the path towards providing high-quality, reliable healthcare to every Indian?
A. Tamil Nadu has taken an early lead in providing universal health coverage to its people by putting in place an effective drugs procurement and distribution mechanism as far back as 1994. Even more commendable is that Tamil Nadu created an IT-enabled supply chain management system that ensures delivery to real patients who need the medication - offering transparency to prevent misuse with stringent quality control, to weed out spurious drugs and their manufacturers. States like Kerala and Rajasthan have also made significant progress in healthcare by implementing this model.
Free medicines cannot fix an overburdened public healthcare system in which many hospitals lack up-to-date equipment and doctors. Thus, the free essential drugs scheme is just one of the many steps the government will need to take to ensure universal healthcare. I feel the adoption at the national level of an e-healthcare system like the one followed in Tamil Nadu can help to provide free medicines to those who need them in a transparent and efficient manner.
.
.
Q. What would be your commandments for success for budding entrepreneurs and innovators?
A. 1. Evolve with the times: One of the significant lessons that I have learnt as an entrepreneur and innovator is that business visions evolve and change over time. As opportunities beckoned and better prospects for growth were found, I have changed my business model. I steered Biocon towards incremental innovation, thus morphing into improved versions of its older self over and over, while keeping our core values intact. I have also found it essential to always challenge myself through out-of-the-box solutions. At Biocon, we never forget that our sustainable success is rooted in the fact that we have made innovation the cornerstone of everything that we do.
2. Have a sense of purpose: Businesses must be driven by a sense of purpose and the spirit to take on challenges to ensure sustainable success. When we started Biocon, our resources were limited, the available infrastructure was primitive and we had to function in a fairly hostile business environment. But we succeeded against these odds because we believed in ourselves and our ability to succeed. Entrepreneurs must challenge themselves and the status quo and keep trying to differentiate - that will determine their success.
3. Work out the business model: One of the biggest challenges that any entrepreneur faces is working out an effective business model. I find most entrepreneurs don't know how to do that. So, even though they have a great product, they don't know how to market it. Business translation is something that entrepreneurs must address upfront.
4. Assess your capital needs: Another important thing that entrepreneurs need to do is to carefully work out their capital needs. They must work that out very carefully. Often people underestimate their resource and capital requirements.
5. Build an effective team: It is also important to get an effective team together. As an entrepreneur, you must lead the way and make sure that the team helps you in taking your vision forward.
.
.
Q. Is there a favourite life wisdom that you would like to share with everybody?
A. In my entrepreneurial journey, my ability to face and learn from failure and move on has helped me a great deal in being successful. It is a trait that most entrepreneurs need to have in order to be successful. Failures provide the experience that no amount of success can. I am not suggesting one must seek failure, but when it comes, learn from it. I often say failure is temporary but giving up is permanent. We should never feel defeated in the face of failure, but should take it in our stride, learn from it and move on.
.
Me: Thank you so much Dr. Mazumdar-Shaw for sharing such wonderful insights!
Dr. Kiran Mazumdar-Shaw: It's my pleasure! Thank you.
.
.
.
....................................................................................................................................................
* Liked the suggestions? Do share them with friends and family.
Spread the awareness and help people make the right career decisions, early on!
.
