Abstract
The Indian Pharmaceutical Industry has succeeded import-substitution, has emerged as one of the major drug exporters and has showed a promise of its global competitiveness. There is no doubt that these measures like anti-patent policy under the Patent Act of 1970, drug policies and industrial policies which the government of India implemented since 1970 contributed to the growth of the industry. However, it is important to evaluate the corporate capability in examination of the industrial development. This paper seeks to examine the corporate capability of the Indian pharmaceutical industry through a case study of Ranbaxy Laboratories. The company developed its own business model suited to the policy framework of India's import substitution industrialization, and pursued the export oriented strategy since 1980s. The company has achieved sustainable growth by showing its corporate capability in the sense that the company understands the trends of policies, technologies, and market, transforms this information to commercial activities and achieves new business value creation through organisational innovation and technical innovation.
