Monday, 19 July, 2021

Dawa Life Sciences journey from a trading business to a leading Pharmaceutical manufacturer

Business background

With a footprint in 11 countries, revenues of US$60 million in 2020 from over 1000 product lines, and supply capacity of over 110 million packs of medication a year, Dawa Group has a vision to become a reference for pharmaceuticals in Africa. The Group has been able to resist the threats of multinational giants, new entrants and cheaper substitutes with their deep knowledge and intelligence of the local pharmaceutical market in Kenya and East Africa

The expansion journey

The beginning of the journey

Dr. Mohindra, who currently serves as the Chairman for Dawa Group and the Chair of the Strategy committee, is a consultant radiologist by profession. He teamed up with Dr. Patel, who is a pharmacist, to form Medisel Kenya Limited in 1994. Medisel started in the generics and disposables market segment by first trading in products already available on the market. After this, the business began importing generics and branded products.

Growth through acquisition

In 2004, the state-owned business Dawa Pharmaceuticals, which had been under receivership, became an attractive target for acquisition and a potential catalyser for Medisel’s expansion into manufacturing. Medisel successfully outbid competitors for the purchase of Dawa Pharmaceuticals by securing funding from local banks.

Growth strategy post-acquisition of Dawa Pharmaceuticals

The acquisition in October 2004 created Dawa Group, which comprised of Medisel Kenya Limited and Dawa Limited (the new name for the acquiredDawa Pharmaceuticals) and other subsequent acquisitions. Dawa Pharmaceuticals was not optimally run and required revamping. Investment in the infrastructure and skills of the management team were undertaken to turn around and transform the newly acquired manufacturing entity.

Using stakeholder management strategy to improve its branding

Dawa Group has implemented a robust stakeholder management strategy. They have access to and have built relationships with governments, nongovernment actors, key opinion leaders and key users (physicians, clinical officers and pharmacists).

Stabilising the rapid growth

Dawa Group is following several diversification strategies. The group has invested in the chemicals and real estate industries as a means of supporting cash flow and acquiring good locations for factories.

Rethinking decision-making processes

Dawa is in the process of shifting from a traditional family-run business to one with a professional management culture to enable it to accelerate growth. Getting quality right The expanded management team has brought in solid operational and supply chain processes as part of the professionalisation of the company.

The future is investing in “One Health” across Africa

The group is planning a geographical expansion to 14 new markets. It is investing US$15 million in the refurbishment of its manufacturing facility. The senior management team is positioning Dawa Group as a total life science healthcare group that focuses on value creation and patient support programmes.[/vc_column_text][/vc_column][/vc_row]

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