Cadila: Case Study, Founding Team, Business Model, Revenue Model, Competitors, and Many More

Cadila: Case Study, Founding Team, Business Model, Revenue Model, Competitors, and Many More
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One of the biggest privately held pharmaceutical firms in India is Cadila Pharmaceuticals Ltd. They have been creating and producing accessible medications for patients all around the world for the past 70 years.

Processes for medication discovery at Cardila that are innovation-driven protect and promote global health. Medical marvels that have altered lives and had a significant influence on daily life have been made possible by Cardila’s increased investment in innovation and its successful track record in research and development.

Being a care-focused, research-driven company, Cardila are committed to complying with the highest ethical standard in clinical research and medical practice. Cardila want to be valued not only for Cardila pharmaceutical products but also for the way Cardila conduct their research and business activities.

Cadila Company Highlights:

Company NameCadila
HeadquarterAhmedabad, Gujarat, India
FounderLate Indravadan Modi

Cadila About:

Cadila Pharmaceuticals is an Indian multinational pharmaceutical company based in Ahmedabad, Gujarat, India. The company’s operations focus on manufacturing products ranging from API’s-Intermediates, finished formulations, OTC-Food Supplements, Biotechnology Products and Pharmaceutical Machinery.

Cadila Pharmaceuticals manufacturing facilities are approved by International bodies such as WHO-GMP, UK-MHRA, USFDA-API, TGA-Australia, and AIFA-Italy. The company’s international operation of is spread across 58 countries including the Americas, Japan, Asia, CIS and Africa.

Cadila Industry:

Cadila Healthcare (CHL), incorporated in 1995, is part of the Zydus Cadila Group. The company operates in areas of active pharmaceutical ingredients (API) to formulations, and animal health products to cosmeceuticals. Cadila Pharmaceuticals Ltd. is one of the largest privately held pharmaceutical companies in India, headquartered in Ahmedabad, in the state of Gujarat.

Over the last five decades, it has been developing and manufacturing pharmaceutical products and selling and distributing these in over 50 countries around the world. An integrated healthcare solutions provider with a pharmaceutical product basket, it caters to over 45 therapeutic areas that include cardiovascular, gastrointestinal, analgesics, haematinics, anti–infectives and antibiotics, respiratory agents, antidiabetics, and immunologicals.

The company focuses on providing high-quality, appropriately priced products to its customers and supports all these with dedicated customer service. Cadila Pharmaceuticals has a multicultural, multilingual, and multinational workforce of more than four thousand employees including over two hundred people outside India in forty–nine countries of Africa, CIS, Japan, and the USA.

Cadila Pharmaceuticals has its formulation manufacturing facilities at Dholka, Gujarat (India); Samba, Jammu (India), and at Addis Ababa (Ethiopia), and 2 API manufacturing facilities are located at Ankleshwar, Gujarat. The manufacturing facility at Dholka and the API unit at Ankleshwar in Gujarat are USFDA-certified; the overseas manufacturing facility in Ethiopia is the WHO – cGMP-compliant facility.

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Cadila Founder & Team:

Cadila Founder image

Cadila Founder (Image Source:

Rajiv I. Modi is the Chairman and Managing Director of Cadila Pharmaceuticals Ltd. Indravadan Modi (1926 – 2012) founded it.

Cadila Startup Story:

Cadila Laboratories:

In 1951 Indravadan A Modi had quit his job as a chemist in a Mumbai firm to start Cadila Laboratories with childhood friend Ramanbhai Patel. The company started in a rented bungalow with a capital of Rs 25,000 and achieved a turnover of around Rs 1.25 lakh in its first year of operation.

1995: Birth of Cadila Pharmaceuticals:

The Modi and Patel families decided to split the business in 1995, two entities were formed – Cadila Pharmaceuticals Ltd (owned and controlled by Shri. I A Modi and his son Dr. Rajiv Modi) and Cadila Healthcare (owned by Shri. Ramanbhai Patel and his son Pankaj Patel family). Rajiv Modi and I A Modi worked closely to run Cadila Pharma, now considered one of the largest privately held pharma companies in the country.

  • July 27, 2011: Cadila acquired German company, Bremer Pharma GmbH, from ICICI Venture, gaining a global footprint in the animal healthcare business.
  • October 14, 2010: Cadila launches Pramipexole Tablets in the US market.
  • May 12, 2010: Cadila to launch India’s 1st H1N1 vaccine.
  • March 30, 2009: Cadila announces research collaboration to discover and develop new cardiovascular medicines.

Cadila Mission & Vision:

We shall provide total customer satisfaction and achieve leadership in chosen markets, products, and services across the globe, through excellence in technology, based on world-class research and development.

Cadila Name & Logo:

The tagline of the Company – “The Care Continues…” addresses not only the customers and stakeholders but also the society at large.

Cadila image

Cadila (Image Source:

Cadila Business Model:

Incorporated In 1995, Ahmedabad-based Cadila Healthcare is the flagship company of the Zydus Cadila group. The company manufactures formulations – branded as well as generics – active pharma ingredients (APIs), intermediates, and animal healthcare & consumer products. In the domestic market, it is a dominant player in the therapeutic categories of cardiology, gastrointestinal, respiratory, and women’s healthcare.

The export business contributed 37% to the gross sales of the company during FY08, having increased from 32% in FY07. The company operates in the US, Europe, Japan, Brazil, and South Africa, and 25 other emerging markets. In the consumer business space, its brands include Sugar-Free, EverYuth, and Nutralite.

Besides organic growth, the company is looking at the expansion of its business through acquisitions and joint ventures. To enter the fifth largest market in Europe, Cadila acquired Spain-based generic player, Laboratories Combix, in May this year. It acquired an export business. During the year, Cadila’s domestic formulations business grew 17% to record a sale of Rs 1,488 crore. Against this, the export business has grown 45% to register a sale of Rs 875 crore.

With a focus on innovation, Cadila invests in research & development (R&D). Its FY08 R&D expenditure stood at Rs 158.5 crore, constituting 6.7% of its consolidated net sales. The company has five new molecular entities (NME) under the Phase I and II stages of clinical trials. It has also entered into collaborative research programs with Kara Bio, Sweden, and Prolong Pharmaceuticals, USA.

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Cadila Revenue Model:

Over the past five financials, the company has posted a compound annual growth rate (CAGR) of 17.3% in its consolidated revenues, which stood at Rs 2,266 crore in FY08. Likewise, the company’s consolidated earnings have grown at a CAGR of 18% during the same peri-70 % stake in South Africa-based Simalya Pharmaceuticals in June to consolidate its reach in Africa’s largest market. The products marketed by Simalya have the same focus areas as those of Cadila. The company’s growth is prominently coming from its od to Rs 257.6 crore for FY08.

Cadila image

Cadila (Image Source:

From ’06, Cadila’s growth in profits has been faster than that in sales. On average, the company distributes around a quarter of its reported net profits as dividends to shareholders. In the past five years, Cadila’s dividend payouts grew at a CAGR of 23%, much faster than its profit growth. The company’s profit margins took a beating during the past two quarters on account of a weakened dollar, high-interest costs, and rising input prices for its API business. However, with the dollar strengthening again, the margins are likely to beef up again.

The company’s integrated business model along with high growth potential makes it a promising pick in the mid-cap defensive space. With a year-to-date return of 2%, the stock has outperformed the Sensex, which has lost nearly 30% of its value from the peak recorded in the first week of January. The company is currently trading at a consolidated EPS of Rs 20.5. It has plans of achieving a revenue target of $1 billion by FY10. Considering Cadila’s estimated consolidated earnings for FY09 and FY10, its stock is currently trading at a forward P/E of 12.3 and 10.3 times respectively.

Cadila Products & Services:

The company is one of the leading players that cater to various therapeutic areas such as cardiovascular, gastrointestinal, respiratory, pain management, CNS, anti–infectives, oncology, neurosciences, dermatology, and nephrology segments.

CHL manufactures its formulations in various forms such as oral, vaccines, and inhalers. The company has a portfolio of 200 products and created brands like Aten, Ocid, Deriphyllin, Pantodac, Atorva, Nucoxia, and Mifegest, to name a few.

Cadila Funding & Investors:

Ahmedabad-based Cadila Pharmaceuticals, a privately held drug company, is looking for setting up a Special Purpose Vehicle (SPV) for funding innovation done by individual or start-up firms in the field of drug/medicine. The initial fund corpus would be Rs 50- Rs 100 crore.

Drug maker Cadila Healthcare Ltd is in talks to raise around Rs1,000 crore through a qualified institutional placement (QIP) of shares, three people aware of the development said.

Cadila Employees:

It has more than 500 employees as it is one of the oldest company for pharmaceutical in India.

Cadila Challenges Faced:

One of the worst-performing pharma stocks in the last year, Cadila Healthcare’s June quarter performance was impacted by subdued performance in all its key markets of the US, India, Brazil, and Japan. The company’s diversified model is not yielding it the desired profitable growth.

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Besides the domestic market, Cadila has a presence in the US, Brazil, EU, Japan, and other smaller emerging markets. It manufactures active ingredients, has joint ventures with other companies, and has a presence in animal health and also a subsidiary Zydus Wellness marketing over-the-counter consumer healthcare products. The company is also into biosimilars in India and is engaged in innovative research.

Cadila Acquisitions:

The company has spent over $ 659M for the acquisitions. Zydus Cadila has invested in multiple sectors such as Infectious Diseases and more.

Cadila Growth:

Zydus Cadila posted business growth of 12% in human health formulations with consolidated revenue of Rs. 3785 crores, up 3% on a year-on-year (y-o-y) basis for the second quarter ended September 30, 2021. Earnings before Interest, Depreciation, and Tax (EBIDTA) for the quarter was Rs. 861 crores, up by 6% y-o-y.

Cadila Partners:

In 2019, Cadila Pharmaceuticals formed a partnership with Norwegian start-up, Serca Pharmaceuticals to develop new treatment for heart patients.

Cadila Competitors:

Cadila Pharmaceuticals’s primary competitors are Intas, Solara, and Titan Pharma.

Cadila Awards & Achievements:

  • Most Trusted Companies of 2008, Sara Media and Zee Business.
  • WorldStar Packaging Award, 2018.
  • TISS LeapVault CLO Award, 2019.
  • Observenow Future of Workplace Award, 2019.
  • Great Place to Work Certified, 2020.

Cadila Future Plan:

The company is likely to launch about 50 new products in the US during 2022.

FAQs about Cadila:

What does Cadila do?

Cadila Pharmaceuticals is an Indian multinational pharmaceutical company based in Ahmedabad, Gujarat, India. The company’s operations focus on manufacturing products ranging from API’s-Intermediates, finished formulations, OTC-Food Supplements, Biotechnology Products and Pharmaceutical Machinery.

When was Cadila founded?

It was founded on 1951.

Who is the founder of Cadila Corporation?

Indravadan Modi (1926 – 2012) founded it.

Who is the CEO of Cadila Corporation?

Jawed Zia is the CEO.

Who are the main competitors of Cadila?

Cadila Pharmaceuticals’s primary competitors are Intas, Solara, and Titan Pharma.

What is the benefit of Cadila medicine?

Famotidine (Cadila) 20 mg Tablet is an anti-ulcer medicine that is used to treat stomach and intestine ulcers and reflux diseases (condition in which the stomach acid flows back into the food pipe). It is also used to treat and prevent indigestion, heartburn, and other acidity related symptoms.

Is Cadila a antibiotic or not?

Oxytetracycline (Cadila) 250 mg Capsule is an antibiotic that is used for the treatment of bacterial infections of the respiratory tract, intestines, genitals, urinary tract, reproductive organs, etc. This medicine may cause teeth discoloration in the children.

Is Cadila used for fever?

Ibuprofen (Cadilla) 400 MG Tablet is a non-steroidal anti-inflammatory medicine, which is used to relieve pain associated with osteoarthritis, rheumatoid arthritis, menstrual cramps (dysmenorrhea), muscle aches, headache, back pain, dental pain, etc. It is also used to treat mild-to-moderate fever.

Is Cadila used for headache?

Vasograin Tablet, Cadila Pharmaceuticals, Treatment: Treats Migraine.

Is Cadila Tablet safe for pregnancy?

Pregnancy. Animal studies indicate that Montelast (Cadila) 4 mg Tablet does not harm your foetus. However, due to lack of human data, this medicine should be used in pregnancy if clearly needed. Consult your doctor and discuss the possible risks and benefits before taking this medicine.


Cadila Healthcare announced that the company’s formulations manufacturing facility located at SEZ, Ahmedabad has received an Establishment Inspection Report (EIR). The USFDA conducted an inspection from 25 March to 03 April 2019. The EIR report stated that the classification of the facility is ‘Voluntary Action Indicated’.

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Sai Sandhya