Twelfth Global Studies Conference

Abstract

Aurobindo Pharma (APL) is one of the largest Active Pharmaceutical Ingredients (API or Bulk Actives) manufacturers in Asia. It has commercialized over 200 APIs and claims to have one of the strongest generic product pipelines in the world. This study explores the international foray of Aurobindo Pharma using the eclectic OLI framework. Technology seeking turns out to be the main reason behind the global foray. Focus on quality control, R&D, customer need etc. constitute the Ownership (O) factors important for Aurobindo to earn the more than compensating advantage in the overseas market. The locational factors was driven by a motive of technology seeking mainly to expand the product portfolio. APL has a twin benefiting business model. APL has tied up with Pfizer and AstraZeneca for selling and distribution in various countries. Secondly, the strategy is to leverage on its manufacturing and strong product filings capability. The dominant mode of entry has been acquisitions. The overseas patterns exhibited by Aurobindo can be captured by the O-L-I framework. However, the overtime changes in the motives of the internationalization path have been addressed separately. Further, each of the major overseas deals was analyzed separately. After studying, the rationale behind each of the deals, it was found that technology seeking has been the main motive. This was driven by the need to expand the product portfolio.