A Rs 569 cr windfall for Matrix boss

When N Prasad and his co-promoters invested close to Rs 6 crore (Rs 60 million) for acquiring the loss-making Matrix Laboratories Ltd, they would not have never imagined that there could be a windfall six years down the line.

Prasad, executive chairman of Matrix, netted over Rs 569 crore (Rs 5.69 billion) by
divesting 12.1 per cent stake (1.86 crore equity shares) in the company to US generics major Mylan today. He still holds 5 per cent (about 77 lakh shares), worth about Rs 235 crore (Rs 2.35 billion), in Matrix.

Earlier in February also, Prasad sold about 40 lakh shares to institutions and individuals netting Rs 100 crore (Rs 1 billion), while his co-promoters sold their stake in 2004 earning around Rs 400 crore (Rs 4 billion), sources said.

After acquiring Matrix six years back, Prasad and associates infused fresh capital in the company through a preferential offer. Even then, the promoters' investment in the company did not exceed Rs 25 crore (Rs 250 million), sources said.

Prasad has a successful track record of turning around loss-making companies. Medicorp, Fine Drugs & Chemicals and Vera Laboratories may be cited here.

Besides Vorin Laboratories, all these companies were merged with Matrix. Prasad was stated to be the driving force behind the successful implementation of M&A strategy at Matrix and has proven his skills in terms of selection, integration and turning around the merged entities.

Under the leadership of Prasad, Matrix has emerged as one of the major players in the pharma industry within six years of the change of management in May 2000.

The company lays a strong emphasis on intellectual property. Its turnover grew from Rs 45 crore (Rs 450 million) to Rs 670 crore (Rs 6.7 billion) in the six-year period.

Matrix achieved a net profit of Rs 182 crore (Rs 1.82 billion) for the year ended March 31, 2006, as compared with a loss of Rs 9 crore (Rs 90 million) in 1999-2000. Equity
research firm Motilal Oswal Securities presented the "Fastest Wealth Creator (1999-2004)" award to Matrix in January 2005.

Born into an Army officer's family in 1961, Prasad pursued his education in Hyderabad and Delhi. He holds masters degrees in science and business administration.

He started his career in 1984 as a management trainee in Delhi in Indian Molasses Company (an associate of United Molasses Co, UK).

In 1989, he joined Rhone Poulenc Chemicals (India) Ltd (now part of Sanofi-Aventis) as area sales officer and was elevated as the regional sales manager based at Hyderabad.

Prasad joined Vorin Laboratories as general manager (marketing) in 1993 and became managing director in 1995. When Ranbaxy acquired a controlling stake in Vorin Laboratories in 1999, Prasad was reappointed as senior managing director and CEO.