Category Archives: 2016

New book celebrates Indian entrepreneurs in the UAE

‘India Connection’ highlights the success of expats who have made the best of opportunities in the UAE

New chapter. (From left) Immanuel Azaad Moonesar, Anurag Bhushan, Shaikha Lubna, Melodena Balakrishnan, Professor Barry O’Mahony and Dr Ali Sebaa Al Merri at the launch of the book ‘The Indian Connection’ in Dubai on September 30 

Dubai: The Mohammad Bin Rashid School of Government (MBRSG), a research and teaching institution, on Tuesday launched a book titled The India Connection, which highlights the success stories of Indian entrepreneurs in the UAE.

The book is the fourth in a series titled Actions and Insights: Middle East North Africa, published by the University of Wollongong – Dubai in collaboration with the International Business Academy.

“The stories we have highlighted are of people who made the best of the opportunities available in the UAE to transform their lives. They are role models for aspiring entrepreneurs,” said Melodena Stephens Balakrishnan, Chair and Founder of the Academy of International Business-MENA.

Notable personalities in the book include Dr. B.R. Shetty of NMC Healthcare, UAE Exchange and Neopharma; Dr. Azad Moopen of Aster DM Healthcare, Yogesh Mehta of Petrochem Middle East FZE, Abdulla Ajmal of Ajmal Perfumes, Uma Ghosh Deshpande, flight attendant turned TV producer; and Kalra sisters – Ruchika and Shobika – who started a social initiative, Wings of Angelz, a disability awareness group.

Uma Ghosh Deshpande, who attended the launch at Dubai World Trade Centre, said: “Starting a business in the UAE is not difficult at all, sustaining it is a challenge. I am a mother, a wife, a businesswoman and balancing all this is another challenge in itself. But if you believe in yourself – you can achieve a lot and the UAE helps you achieve your dreams.”

The 160-page hardcover is available on Amazon for Dh180. Besides it is also available for download on Emerald Emerging Market case studies.

 

Dubai Dreams: From jobless medical rep to billions – BR Shetty

Husband-wife partnership is now a hospital chain

 

A young, indebted and jobless Indian who came to the UAE in the early 1970s is today one of the most successful entrepreneurs in the world and among the list of Forbes’ richest billionaires.

Dr. Bavaguthu Raghuram Shetty, better known as B.R. Shetty, came to the UAE with nothing more than a degree and a few dirhams in his pocket.

He stepped in the UAE with a mission to repay a bank loan that haunted his family but, 43 years later, Dr Shetty is one of the most successful businessmen in the UAE, employing nearly 40,000 employees.

 

Then owning just one shirt, Shetty started off as a medical representative and also undertook part-time jobs including canvassing advertisements for yellow pages.

The young man from Karnataka, India, was born in an aristocratic landlord family, but he came to the UAE as a last resort, losing everything in life.

Dr Shetty (centre) from back in the day

An Indian bank was after him for not settling a personal loan of Rs50,000 (Dh2,250 at today’s exchange rate).

Dr Shetty, who spearheaded the growth of a single-doctor clinic and pathology lab from a dilapidated building in Abu Dhabi now heads the London Stock Exchange-listed NMC Healthcare and the NMC Group, present in different continents.

Speaking to Emirates 24|7, Dr Shetty, a self-made billionaire, recalled the challenges that he had to overcome before starting a long successful journey through the corporate ladder.

“I came here on May 3, 1973, in search of a job because I had lost everything back home due to my excessive social work as the Deputy Municipal Chairman of the local municipality and generosity to help everyone seeking help,” he said.

Dr Shetty with his entire family today

When he landed at Abu Dhabi airport, he had just the shirt he was wearing. “My dream was to get a government job in Abu Dhabi to repay the bank loan, but I was disappointed because without the knowledge of Arabic, it was impossible to get a government job.

“I had no money and was desperate for a job to survive here. In India, I’d studied pharmacy and had worked as a pharmacist for some time,” he said.

When he failed to get a job, the young Shetty went directly to a pharmaceutical distribution warehouse, where several cartons of medicines were dumped on the ground – some were even getting spoiled due to flooding of the warehouse.

“I went to Al Fahimi Pharmacy group of Dr Ismail Fahimi, seeking a job. When they said there is no job, I told them to give me a chance to sell their medicines outdoor.

“Those days, nobody was going out to sell. I am perhaps the first outdoor medical representative in this country,” says Dr Shetty proudly, remembering the crucial moments in his life.

“Dr Fahimi gave me my first bread in the UAE. I used to go out with a medical representative bag filled with samples of medicines, tablets and other products. I had to wait outside many clinics, hospitals or other customers for appointments.

Dr Shetty receives a top award from the government of India

“The first thing that I bought from the commission was a new shirt of Dh10. I had only one shirt –I washed it every night to wear it the next day.”

At the time, the UAE’s pharmacy and healthcare business was not well organised as the young nation was just embarking on its development progress.

“I still remember the Dh10 beige coloured shirt,” said Shetty. “It too hot and humid, especially in summer and I could not even open my eyes due to dust. My shoes and shirt were sometimes dirty. I had to wash my shirt every night because I had no other shirt,” he said.

Working as the outdoor medical representative, he earned around Dh1,500 per month, but started other part-time jobs to earn enough money to settle the personal loan to Syndicate Bank in India.

“When I saved enough money after one-and-a-half years, I went to meet the Syndicate Bank Chair K.K. Pai and cleared my loan which was sanctioned because of the reputation and social status of my father, Shambu Shetty, who was the Municipal Councillor of Uduppi.

“When I cleared my loan and placed a fixed deposit of Rs25,000, I could see tears coming out of Mr Pai’s eyes,” choked with emotion, Dr Shetty told Emirates 24|7.

“Since then, I have maintained good relationship with my bankers who have been my best partners in business,” he added.

From a single clinic the group developed into a major healthcare provider, diversified into hospitality, pharmaceutical manufacturing, trading and financial services.

From a mere medical representative scouting for customers on foot, Dr Shetty started NMC Neo Pharma in 2003, a leading pharmaceutical and medicine manufacturing firm that has contract manufacturing arrangements with leading drug multinationals like Merck, Pfizer, Boots UK, Astra Zaneca, etc.

“I started the first clinic in 1975 in a small building. As I could not afford to appoint an expensive doctor, my wife, Dr. Chandrakumari R Shetty, was the only doctor who worked for me in the clinic which had a pathology lab, X Ray machine and a small pharmacy too,” he said, adding that while his wife took care of the patients, she was not paid a regular salary.

On the location of the first clinic now stands the NMC Specialty Hospital with several surrounding buildings owned by the group. The husband wife partnership is now a global conglomerate and four of his children too are involved in the business now.

He himself handled the pharmacy and other businesses and continued his job as outdoor salesman not only selling medicines, but a lot of other products including cosmetics, healthcare and food items from various supermarkets.

Now, nearly 2.5 million patients per year utilise the multiple hospitals, medical shops or other facilities of NMC Group in different Emirates. Every day 6,500 patients visit any of the 15 NMC facilities across the UAE.

“I used to carry a Dh150 Samsonite bag filled with not only medicine samples, but other products too. I have preserved that bag to show my children how I struggled initially to make both ends meet,” Shetty added.

“At a time when everything was available free from government hospitals, I dared to start the first private clinic in Abu Dhabi, charging patients. People laughed at me because, at that time, nobody was charging money for treatment.

“Expat families of government employees who were in the UAE could buy medicines for one year free of cost from government hospitals,” Dr Shetty said, adding that after the first clinic was successful, he started expanding the hospital and medical shop business to Dubai and other emirates.

That process has continued unabated, without being affected by cyclical recession, regional wars or other major crises that confronted the business community in the UAE.

From a part-time business of selling Nivea and other consumer goods, NMC Trading now handles the wholesale distribution of Nivea products, one of the leading international brands.

“When we did not have an ambulance to carry critical patients, I used to carry even very heavy Asian patients on my shoulders. Now we have a fleet of ambulances and the latest emergency facilities,” he added.

The UAE healthcare sector was rudimentary in the formative years and from a single clinic, NMC Healthcare has become a global conglomerate.

“In 1980 when I went to remit money home, it took almost eight hours for issuing one draft.

“Realising the need for faster and safer money remittance service to the thousands of expatriates in the UAE, I approached the UAE Central Bank for license and took over a sick company that was in loss of Dh18 million.

“The company has not only turned around, but UAE Exchange is today one of the most successful money exchange companies that account for a major chunk of annual remittances to India. It has around 750 direct offices across 32 countries, employs 9,000 multinational employees and caters to 20 million customers per year.”

Dr Shetty still works several hours a day and maintains cordial relationship with his employees as well as the community at large, by indulging in charitable and social ventures.

“I have witnessed many crisis periods, including the Kuwait War, economic recessions and many other developments. Even though my employees were sometimes worried about being laid off or retrenched during crisis periods, I have never retrenched them and kept them all safe during all uncertainties.”

His advice to the young entrepreneurs and day dreamers is not to hesitate to go out in the sun and doing hard work and efficiently use the banking facilities in the UAE and be good to people around you and give back to society part of your earnings.

“It is the society that nurtures you. It is your duty to give back to society. Only when you share your success, does it multiply. I have strongly believed in this and it has worked well for me.”

Drug manufacturing to increase in the UAE

The number of pharmaceutical manufacturing plants in the UAE is expected to more than double in the next five years to 34 from 16 currently as part of economic diversification efforts, a leading official said yesterday.

Amin Al Amiri, the assistant undersecretary of Public Health Policy and Licensing at the Ministry of Health, said he expects three deals this year between international drug companies and domestic makers for manufacturing medicines in the UAE.

He was talking on the sidelines of the two-day Pharma in the GCC conference in Dubai.

In 2014, Dubai-based Global­pharma joined Sanofi in a partnership to produce some of its generic medicines in the UAE. In the same year, Abu Dhabi’s Neopharma entered a deal with Pfizer’s Wyeth to make medicines for pain management, cardiovascular diseases and women’s health. Julphar opened its 12th factory in the UAE at Jebel Ali in November 2013.

Despite the low oil prices and reduced government spending in the region, the UAE’s health budget is expected to remain steady for the next few years, with the research company BMI forecasting it would actually increase.

In 2019, the total healthcare expenditure in the UAE is expected to touch Dh70.67 billion, an annual growth rate of 7.9 per cent, from Dh53.8bn last year.

Of that amount, expenditure on pharma products is expected to be Dh13.97bn in 2019, up from Dh10.32bn last year, an 8.1 per cent growth rate per year.

The overall healthcare expenditure is expected to be 3.87 per cent of the GDP, up from 3.3 per cent in 2014.

“Healthcare expenditure would increase even if the oil prices come down because we are depending upon many other things beyond oil,” Mr Al Amiri said. “For sure, we will be in safe hands,” he said, referring to possible continued low prices of oil beyond this year.

Despite the focus on private sector increasingly providing more healthcare services, Mr Al Amiri expects the role of government to get stronger.

“We will be concentrating on regulation, audits, compliance and controls,” he said. “It’s not that the prices would come down, the prices should be as per the performance and outcome.”

On the private sector investment side, the focus is expected to be on specialised hospitals and day surgery centres.

The ministry will focus on tackling non-communicable diseases and changing lifestyles to bring down the incidence of diabetes and obesity. That will reduce the financial burden on the government in the long run, Mr Al Amiri said.