We all know about Salman Khan being the highest taxpayer from the Indian film industry followed by Akshay Kumar. But Bhaaijaan comes only fifth on the list of the top income tax payers of the country for the financial year 2015-16. And the first four names in the highest individual tax payers’ list belong to the same family. The very famous Marwari business family — The Taparias.
The Taparias of Famy Care Ltd — a Mumbai based contraceptive manufacturer and one of the world’s largest – have paid a sum total of Rs 211 crore in advance tax to the government. Individually Asutosh Taparia, the joint Managing Directorof Famy Care paid Rs 75 crore, while the other managing director Sanjeev Kumar Taparia paid Rs 63 crore. Aruna Devi Taparia and Anjali Ashutosh Taparia have paid Rs 37 crore, and Rs 36 crore respectively being on the third and fourth position on the list.
JP Taparia the father of Asutoh and Sanjeev founded the company in 1990 and now the sons rule the business. The Taparias are also, globally, the biggest producer of Copper-Ts. In fact, about 15% of all women in the world who are on oral contraceptive pills consume Famy Care products.
Taparia’s extended family was in the hand tools and engineering business but he wanted to start something of his own. His inspiration was his grandfather, who had started off as a first-generation entrepreneur. Taparia says he saw opportunity in the pharma business. The government of India was, at the time, importing IUDs (intra uterine contraceptive devices) for the family-planning programme and, needless to say, in huge quantities. The potential was obvious to Taparia who then set up Famy Care in 1990. He began with a technology tie-up with Finnish company LierasOy. Later, in 1991, he started to rapidly indigenise the products and soon became the first Indian supplier to the Union health ministry.
His sons got into the business in 1996 and looked for opportunities beyond IUDs. Famy found a new niche in oral contraceptive pills, which were also in great demand from the government. Thus was born the seemingly ubiquitous Mala-D brand. As opportunities emerged, the Taparias began exporting the contraceptive to other Asian countries and Africa. Volumes grew and they quickly scaled up. In 2010, PE firm AIF Capital invested $40 million to pick up 17.5 percent in the company.
The strategy was clear: First injectable contraceptives, then moving into oral pills, and later condoms. The idea was to provide all the options.
The first overseas supply contract from the United Nations Population Fund in 2001 provided a major boost. PE investment brought a professional edge to a family-owned business. A second line of managers is now in the making. Three independent directors have steered the company with a broader vision than that solely of the promoters. The company now has stricter audit processes and corporate governance.
Last year in November, Mylan Laboratories, an arm of the US-based drugmaker, Mylan NV acquired the women’s healthcare business of Famy Care for $800 million.
Featured image courtesy: googleimages
