Eli Lilly & Ranbaxy: Strategic Joint Venture 1
ADMN 417: International Business Mgmt ASSIGNMENT 2 CASE ANALYSIS: ELI
LILLY IN INDIA: RETHINKING THE JOINT VENTURE STRATEGY NEW
UPDATE FALL 2025|2026 Athabasca University
Case Analysis: Eli Lilly In India: Rethinking the Joint Venture Strategy
ADMN417: International Business Mgmt.
Melike Kinik-Dicleli, Instructor
September 30, 2025
, Eli Lilly & Ranbaxy: Strategic Joint Venture 2
Executive Summary
Eli Lilly (Lilly) and Ranbaxy created a Joint Venture (JV). The newly formed Eli Lilly-
Ranbaxy (ELR) began operations in 1992. Both companies were looking to gain an
advantage to help with expansion. While Ranbaxy was able to provide manufacturing and
logistics within the Indian market region, Lilly provided expertise in research and
development, human resources protocols to help build a team culture. In the years the
ELR has operated each company has been able to leverage the other to improve their
position within the market, Ranbaxy gained credulity on the world stage and Lilly grew
their market share in India along with their reputation. Through ELR the companies
learned from each other while building a profitable entity. However, 2001 is seeing a
change in the industry. Mergers and acquisitions are increasing; new entities are making
up a large portion of the market (45%) compared to when ELR was formed (28% in
1990). Pharmaceuticals are seeing increased regulations. The Indian government has
signed the General Agreement on Tariffs and Trade (GATT) and joined the World Trade
Organization (WTO). This coupled with Foreign Direct Investment (FDI) allowances
moving to 100% and upcoming changes to patent protection rights, the two parent
companies are looking at how they can leverage what they have gained over the last 9
years and what their options are. Thus, the JV of ELR is being re-evaluated, with
Ranbaxy and Lilly working to determine what the future holds for their partnership.
Problem statement
The JV of Eli Lilly and Ranbaxy is being re-evaluated ahead of an upcoming meeting
between the President of Lillys Intercontinental Operations and the CEO of Ranbaxy.
With the recent and upcoming changes in the Indian market regarding foreign
investments, patent recognition, and projected growth of competition, ELR was looking at
a potential change in dynamics. While Ranbaxy has shown a desire to sell its position in
the JV, it was time for a decision on a path forward for ELR.
Analysis
Eli Lilly’s leaders saw potential in the emerging markets in the Asian market; several
countries were beginning to open their market foreign investment. This would provide the
opportunity for Lilly to expand and grow their testing, change way the company is
viewed in the medical industry. However, it needed a way to gain this regional presence,
utilizing FDI would provide this opportunity. Based on the companies’ goals and
trajectory we can see through application of the porter diamonds we can identify why
international markets were being targeted. “The Porter diamond identifies four elements
that form the basis of national competitiveness: (1) factor conditions; (2) demand
conditions; (3) related and supporting industries; and (4) firm strategy, structure, and
rivalry.” (Wild, J. J., & Wild, K.L., p. 145).
Ranbaxy as an industry leader in India was looking to expand further into the
international market and take advantage of higher prices. Partnering with a foreign
company could help with product supply and expand distribution.
ADMN 417: International Business Mgmt ASSIGNMENT 2 CASE ANALYSIS: ELI
LILLY IN INDIA: RETHINKING THE JOINT VENTURE STRATEGY NEW
UPDATE FALL 2025|2026 Athabasca University
Case Analysis: Eli Lilly In India: Rethinking the Joint Venture Strategy
ADMN417: International Business Mgmt.
Melike Kinik-Dicleli, Instructor
September 30, 2025
, Eli Lilly & Ranbaxy: Strategic Joint Venture 2
Executive Summary
Eli Lilly (Lilly) and Ranbaxy created a Joint Venture (JV). The newly formed Eli Lilly-
Ranbaxy (ELR) began operations in 1992. Both companies were looking to gain an
advantage to help with expansion. While Ranbaxy was able to provide manufacturing and
logistics within the Indian market region, Lilly provided expertise in research and
development, human resources protocols to help build a team culture. In the years the
ELR has operated each company has been able to leverage the other to improve their
position within the market, Ranbaxy gained credulity on the world stage and Lilly grew
their market share in India along with their reputation. Through ELR the companies
learned from each other while building a profitable entity. However, 2001 is seeing a
change in the industry. Mergers and acquisitions are increasing; new entities are making
up a large portion of the market (45%) compared to when ELR was formed (28% in
1990). Pharmaceuticals are seeing increased regulations. The Indian government has
signed the General Agreement on Tariffs and Trade (GATT) and joined the World Trade
Organization (WTO). This coupled with Foreign Direct Investment (FDI) allowances
moving to 100% and upcoming changes to patent protection rights, the two parent
companies are looking at how they can leverage what they have gained over the last 9
years and what their options are. Thus, the JV of ELR is being re-evaluated, with
Ranbaxy and Lilly working to determine what the future holds for their partnership.
Problem statement
The JV of Eli Lilly and Ranbaxy is being re-evaluated ahead of an upcoming meeting
between the President of Lillys Intercontinental Operations and the CEO of Ranbaxy.
With the recent and upcoming changes in the Indian market regarding foreign
investments, patent recognition, and projected growth of competition, ELR was looking at
a potential change in dynamics. While Ranbaxy has shown a desire to sell its position in
the JV, it was time for a decision on a path forward for ELR.
Analysis
Eli Lilly’s leaders saw potential in the emerging markets in the Asian market; several
countries were beginning to open their market foreign investment. This would provide the
opportunity for Lilly to expand and grow their testing, change way the company is
viewed in the medical industry. However, it needed a way to gain this regional presence,
utilizing FDI would provide this opportunity. Based on the companies’ goals and
trajectory we can see through application of the porter diamonds we can identify why
international markets were being targeted. “The Porter diamond identifies four elements
that form the basis of national competitiveness: (1) factor conditions; (2) demand
conditions; (3) related and supporting industries; and (4) firm strategy, structure, and
rivalry.” (Wild, J. J., & Wild, K.L., p. 145).
Ranbaxy as an industry leader in India was looking to expand further into the
international market and take advantage of higher prices. Partnering with a foreign
company could help with product supply and expand distribution.
