MIRA INFORM REPORT
|
Report Date : |
6th June, 2006. |
IDENTIFICATION DETAILS
|
Name : |
CADILA HEALTHCARE LIMITED |
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Registered Office : |
Zydus Tower, Satellite
Cross Road, Ahmedabad – 380 015, Gujarat, India |
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Country: |
India |
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Financials (as on): |
31.03.2005 |
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Date of Incorporation : |
15th
May, 2005 |
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Com. Reg. No.: |
04-25878 |
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TAN No.: [Tax Deduction & Collection Account No.] |
AHMC00020G |
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PAN No.: [Permanent Account No.] |
AAACC6253G |
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Legal Form : |
Public
Limited Liability Company. The
company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturer and Seller of
pharmaceuticals, bulk drugs, formulations and injectibles. |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
RATING
|
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial &
operational base are regarded healthy. General unfavourable factors will not
cause fatal effect. Satisfactory capability for payment of interest and
principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 24000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a leading
pharmaceutical company in the country.
Available information indicates high financial responsibility of the
company. Directors are experienced,
respectable and resourceful industrialists.
Their trade relations are reported as fair. Financial position of the company is good. Payments are reported as correct and as
per commitments. The company can be
considered good for normal business dealings at usual trade terms and
conditions. |
LOCATIONS
|
Registered Office : |
Zydus Tower, Satellite
Cross Road, Ahmedabad – 380 015, Gujarat, India |
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Tel. No.: |
91-79-2677 0100 |
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Fax No.: |
91-79-2673 2365 / 2673 2366 |
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E-Mail : |
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Website : |
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Corporate Office : |
Zydus Tower, Satellite Cross Roads, Ahmedabad – 380 015, Gujarat |
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Tel. No.: |
91-79-2686
8100 (20 Lines) |
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Fax No.: |
91-79-2686
2365 / 66 |
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Website : |
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Factory 1 : |
Sarkhej-Bavla N.H. No.8,
Village Moraiya, Taluka Sanand, District Ahmedabad - 382210, Gujarat Tel No. 91-79-23750331 / 36
/ 36 Fax
No. 91-79-23750319 Formulation
Unit:
S.
No.417, 419 & 420, Village Moraiya, Taluka Sanand, District Ahmedabad,
Gujarat. Kundaim
Industrial Estate, Ponda, Goa – 403 401. Village
Saraj Mujra, P. O. –Baddi, Tehsil –
Nalagarh, District - Solan Neutraceutical
Plant
5504, GIDC Estate, Phase
III, Vatva, Ahmedabad, Gujarat. SBI
Bulk Drug Unit
Plot No. 291, GIDC
Industrial Estate, Ankleshwar – 393 002, District Bharuch, Gujarat Tel No.
91-2646-220621/220719 Fax
No. 91-2646-250672 |
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Research Center : |
Zydus
Research Centre
Ø
C/4, MIDC, Pawne
Village, Thane Belapur Village, Vashi, Navi Mumbai – 400 705, Maharashtra. Tel No. 91-22-27670224/27670225 Fax No. 91-22-27670223 Ø
S. No. 396/403,
Village Moraiya, Taluka Sanand, District Ahmedabad, Gujarat. Ø
Sarkhej-Bavla N.H.
No.8, Village Moraiya, Taluka Sanand, District Ahmedabad - 382210, Gujarat. Tel
No. 91-79-23750802-05 Fax
No. 91-79-23750606 |
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Business Development
Office : |
203/204, Neelkant
Commercial Centre, Sahar Road, Andheri (East), Mumbai – 400 099, Maharashtra. Tel
No. 91-22-28394690/28394698 |
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Branches : |
Khemka House, Drive-in
Road, Ahmedabad - 380 052, Gujarat |
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Tel. No.: |
91-79-27410861 |
DIRECTORS
|
Name |
Mr.
Pankaj R. Patel |
|
Designation |
Chairman
& Managing Director |
|
Address |
16,
Azad Society, Ambawadi, Ahmedabad – 380 015, Gujarat, India |
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Other Directorships |
Ø
Indon Healthcare Limited Ø
Cadila Laboratories Limited Ø
Zydus Pharmaceuticals Limited Ø
Zydus Finance Limited Ø
Zydus Aqrovet Limited Ø
Zydus International Private Limited, Ireland Ø
Zydus Healthcare S.A. (Pty) Limited, South Africa Ø
Zydus Byk Healthcare Limited Ø
Zoom Properties Private Limited Ø
Pharmaceuticals Business Group (I) Limited Ø
Pripan Investment Private Limited Ø
Rampan Investment Private Limited Ø
Pritpan Investments Private Limited Ø
Sharvil Investment Private Limited Ø
Shivpan Investment Private Limited Ø
Pankram Investment Private Limited Ø
Vadilal Chemicals Limited Ø
Cadmach Machinery Company Private Limited C
Gujarat Themis Biosyn Limited |
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|
|
|
Name |
Mr.
Mukesh M. Patel |
|
Designation |
Director |
|
Address |
Ashwamegh
Bungalows, Part II, Off. Satellite Road, Ahmedabad – 380 015, Gujarat, India |
|
Other Directorships |
Ø
Indo Healthcare Limited Ø
Symphony Comfort Systems Limited Ø
Magnum Fincap Limited Ø
Caditronics Limited Ø
Nutan Tobacco Company Private Limited Ø
Instavision Systems (I) Private Limited |
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|
|
|
Name |
Dr.
Manubhai A. Patel |
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Designation |
Director |
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Address |
4,
Purohit Society, B/H Swaminarayan Society, Sardarnagar, Chhani Road, Baroda –
394 220, Gujarat, India |
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Other Directorships |
Ø
Gujarat Lyka Limited Ø
Vadilal Chemicals Limited Ø
Elysium Pharmaceuticals Limited Ø
Nilkamal Synfabs Limited |
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|
Ø
|
|
Name |
Mr.
Pranlal Bhogilal |
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Designation |
Director |
|
Address |
122,
Walkeshwar Road, Mumbai – 400 006, Maharashtra, India |
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Other Directorships |
Ø
Wood Papers Limited Ø
Bengal Hotels Private Limited Ø
Bilimora Commerce Private Limited Ø
Bilimora Trading Company Private Limited Ø
Das Organochem Private Limited Ø
Oriental Estates & Manufactures Private Limited Ø
Consolidated Holdings Limited Ø
Bharat Trading & Manufacturing Corporation Private Limited Ø
Modern Bobbin Company Private Limited Ø
Das Jubilee Private Limited Ø
Collinson & Company Private Limited Ø
Midas Touch Investments Limited Ø
Dastan Private Limited Ø
Karnvati Trading Company Private Limited Ø
Sabarmati Trading Company Private Limited Ø
Ellisbridge Holds Private Limited Ø
Kathwada Holdings Limited Ø
Aashka Holdings Limited Ø
Aashka Investments Limited Ø
Dastan Leasing & Finance Limited Ø
Lok Prakashan Limited |
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|
|
|
Name |
Mr.
Sharvil P. Patel |
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Designation |
Director |
|
Address |
16,
Azad Society, Ambawadi, Ahmedabad – 380 015, Gujarat, India |
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|
|
|
Name |
Mr. H. K. Bilpodiwala |
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Designation |
Director |
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|
Name |
Mrs. Pritiben P. Patel |
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Designation |
Director |
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|
Name |
Mr. A. S. Diwanji |
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Designation |
Director |
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|
Name |
Mr. H. Dhanrajgiri |
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Designation |
Director |
KEY EXECUTIVES
|
Name |
Mr.
Ramanbhai B. Patel |
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Designation |
Founder |
|
Address |
16,
Azad Society, Ambawadi, Ahmedabad – 380 015, Gujarat, India |
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Other Directorships |
Ø
Cadmach Machinery Company Private Limited – Managing Director Ø
Cadila Laboratories Limited Ø
Indon Healthcare Limited Ø
Zydus Pharmaceuticals Limited Ø
Zydus Finance Limited Ø
Zydus Aqrovet Limited Ø
Zydus International Private Limited, Ireland Ø
Zoom Properties Private Limited Ø
Pharmaceuticals Business Group (I) Limited Ø
Pripan Investment Private Limited Ø
Rampan Investment Private Limited Ø
Pritpan Investments Private Limited Ø
Sharvil Investment Private Limited Ø
Shivpan Investment Private Limited Ø
Pankram Investment Private Limited |
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|
Name |
Mr. Upen H. Shah |
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Designation |
Company Secretary |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
Indian Promoters |
45064885 |
71.75 |
|
Mutual Funds and UTI |
1403562 |
2.23 |
|
Banks, Financial
Institutions and Insurance Companies |
4457301 |
7.10 |
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FIIs |
5119473 |
8.15 |
|
Private Corporate Bodies |
740414 |
1.18 |
|
NRIs / OCBs |
5862277 |
9.33 |
|
General Public |
158942 |
0.26 |
|
Grand Total |
62806854 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Seller of
pharmaceuticals, bulk drugs, formulations and injectibles. |
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Product: |
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Exports to : |
Ethiopia,
Ghana, Kenya, Mauritius, Tanzania, Uganda, Zambia, Sierraleone, South Africa,
Bahrain, Sudan, Sultanate of Oman, Yemen, Jordan, Belarus, Estonia, Georgia,
Kazakhistan, Khirgstan, Latvia, Lithuania, Moldova, Russia, Ukrain,
Uzbekistan, Cambodia, Hong Kong, Malaysia, Myanmar, Philippines, Singapore,
Sri Lanka, Thailand, Vietnam, Bulgaria, Czech Republic, Romania, Malta,
Panama, West Indies, Mexico, Papua New Guinea, Germany and UK. |
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Imports from : |
Europe
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Terms : |
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Purchasing : |
L/C |
PRODUCTION STATUS
|
Particulars |
Unit |
Installed Capacity |
Actual Production |
|
Tablets |
ML. Nos. |
4440 |
3644 |
|
Capsules |
ML. Nos. |
630 |
370 |
|
Injections |
KLtrs. |
513 |
650 |
|
Dry Powder Injections |
KGs. |
200 |
4040 |
|
Liquids |
KLtrs. |
3000 |
430 |
|
Dry Syrup, Powder &
Granules |
Tones |
6632 |
364 |
|
Ointments |
Tones |
0 |
52 |
|
Suppositories |
Tones |
7 |
18 |
|
Bulk Drugs |
Tones |
413 |
371 |
GENERAL INFORMATION
|
No. of Employees : |
3000 |
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Bankers : |
Ø
ICICI Bank Limited Ø
Citi Bank Ø
IDBI Bank Ø
State Bank of India Ø
Bank of Baroda Ashram Road Branch, Opp. Natraj Cinema, Ashram Road,
Ahmedabad – 380 009, Gujarat, India Ø
Corporation Bank,
Industrial Finance Branch, Rangoli Complex, 1st Floor, Opp. V S
Hospital, Ellisbridge, Ahmedabad – 380 006,
Gujarat, India Ø
State Bank of
Saurashtra Industrial Finance Branch, Gujarat Chambers of Commerce
Building, Ashram Road, Ahmedabad – 380 009, Gujarat, India Ø
Global Trust Bank
Limited G-2, Samedh, Near Associated Petrol Pump, C G Road,
Ahmedabad – 380 006, Gujarat, India |
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Facilities : |
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Banking Relations : |
Good |
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Auditors : |
Ø
R. R. Patel &
Company Chartered
Accountants 14/15,
K. B. Commercial Centre, Lal Darwaja, Ahmedabad – 380 001, Gujarat Ø
Mukesh M. Shah &
Company Chartered
Accountants 3,
H. K. House, Second Floor, Ashram Road, Ahmedabad – 380 009, Gujarat |
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Associates : |
Ø
Pharmaceutical
Business Group (India) Limited Ø
Zydus Byk Healthcare
Limited Ø
Pripan Investment
Private Limited Incorporated on 1st December, 1980 Ø
Taram Investment
Private Limited Incorporated on 30th October, 1984 Ø
Pritpan Investment
Private Limited Incorporated on 22nd May, 1992 Ø
Sharvil Investment
Private Limited Incorporation on 22nd
May, 1992 Ø
Shivpan Investment
Private Limited Incorporated on 22nd May, 1992 Ø
Rampan Investment
Private Limited Incorporated on 22nd May, 1992 Ø
Pankram Investment
Private Limited Incorporated on 22nd May, 1992 Ø
Zydus Travelease
Private Limited Incorporated on 15th May, 1995 Ø
Zydus Finance Limited Incorporated on 31st October, 1994 Ø
Caditronics Limited Incorporated on 6th July, 1982 Ø
Instavision Systems
(India) Private Limited Incorporated on 16th November, 1984 Ø
Cadmach Machinery
Company Private Limited Incorporated on 6th September, 1973 Ø
Onconova Therapeutics
Inc., U.S.A. Ø
Sarabhai Zydus Animal
Health Limited |
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|
|
|
|
Ø
Zydus Pathline Limited -
Engaged in diagnostic
business Ø
Zydus Pharmaceuticals
Limited -
Incorporated on 17th
October, 1994 -
Manufacturing &
trading of pharmaceutical products Ø
Zoom Properties
Limited -
Incorporated on 18th
March, 1994 -
To hold Zydus Cadila’s
Mumbai Office -
Owns and manages
commercial property at Mumbai Ø
Zydus International
Private Limited, Ireland -
Incorporated on 30th
April, 1998 -
Trading of drugs and
pharmaceuticals and providing technical and marketing assistance for setting
up manufacturing facilities for setting up manufacturing facilities for
pharmaceuticals, bulk drugs, etc. Ø
Zydus Healthcare S.A.
(Pty) Limited, South Africa
(Subsidiary of Zydus International Private Limited – Ireland) -
Incorporated on 27th
July, 1998 -
To sell trade and
market, pharmaceuticals, cosmetics intermediates and bulk drugs, manufacturer
of Healthcare products and the operation of hospital and diagnostic centres. Ø
Dialforhealth India
Limited, Ahmedabad, Gujarat Ø
Recon Healthcare
Limited, New Delhi Ø
Zydus Helathcare (New
Zealand) Limited, New Zealand Ø
German Remedies
Limited Ø
German Remedies Specialities
Limited Ø
Banyan Chemicals
Limited Ø
Zydus Healthcare SA
(Proprietory) Limited Ø
Zydus Healthcare
Brasil Limitada (ZHBL) |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
90,000,000 |
Equity Shares |
Rs. 5/- each |
Rs. 450.000 millions |
|
500,000 |
Preference Shares |
Rs. 100/- each |
Rs. 50.000
millions |
|
|
Total
|
|
Rs. 500.000 millions |
Issued, Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
62,806,854 |
Equity Shares |
Rs. 5/- each |
Rs. 314.000 millions |
FINANCIAL
DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
314.000 |
314.000 |
314.000 |
|
|
2] Reserves & Surplus |
5830.000 |
5081.000 |
4298.000 |
|
NETWORTH
|
6144.000 |
5395.000 |
4612.000 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2874.000 |
3437.000 |
3293.000 |
|
|
2] Unsecured Loans |
841.000 |
620.000 |
1136.000 |
|
TOTAL
BORROWING
|
3715.000 |
4057.000 |
4429.000 |
|
|
DEFERRED TAX LIABILITIES |
1012.000 |
974.000 |
857.000 |
|
|
|
|
|
|
|
TOTAL
|
10871.000 |
10426.000 |
9898.000 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
6784.000 |
6476.000 |
6539.000 |
|
Capital work-in-progress
|
396.000 |
408.000 |
284.000 |
|
Preoperative & Project Expenses Pending allocation
|
4.000 |
8.000 |
6.000 |
|
|
|
|
|
|
|
INVESTMENT
|
1368.000 |
1381.000 |
840.000 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
1939.000 |
1603.000 |
1756.000 |
|
|
Sundry Debtors
|
1088.000 |
1659.000 |
1368.000 |
|
|
Cash & Bank Balances
|
264.000 |
372.000 |
90.000 |
|
|
Loans & Advances
|
1372.000 |
701.000 |
826.000 |
Total Current Assets
|
4663.000 |
4335.000 |
4040.000 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
1844.000 |
1819.000 |
1723.000 |
|
|
Provisions
|
575.000 |
511.000 |
310.000 |
Total Current Liabilities
|
2419.000
|
2330.000
|
2033.000 |
|
Net Current
Assets
|
2244.000 |
2005.000 |
2007.000 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
75.000 |
148.000 |
222.000 |
|
|
|
|
|
|
|
TOTAL
|
10871.000 |
10426.000 |
9898.000 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
Sales Turnover [including other income]
|
11419.000 |
11243.000 |
9627.000 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
1504.000 |
1634.000 |
1053.000 |
Provision for Taxation
|
190.000 |
205.000 |
287.000 |
Profit/(Loss) After Tax
|
1314.000 |
1429.000 |
766.000 |
|
|
|
|
|
Export Value
|
1388.000 |
1773.000 |
1037.000 |
|
|
|
|
|
Import Value
|
1285.000 |
1072.000 |
1354.000 |
|
|
|
|
|
Total Expenditure
|
9791.000 |
9484.000 |
8475.000 |
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
|
|
31.03.2006 (Full Year) |
|
Sales Turnover |
|
|
12460.000 |
|
Other Income |
|
|
756.000 |
|
Total Income |
|
|
13216.000 |
|
Total Expenditure |
|
|
10507.000 |
|
Operating Profit |
|
|
2709.000 |
|
Interest |
|
|
205.000 |
|
Gross Profit |
|
|
2504.000 |
|
Depreciation |
|
|
616.000 |
|
Tax |
|
|
154.000 |
|
Reported PAT |
|
|
1649.000 |
|
Dividend (%) |
|
|
1200.000 |
KEY RATIOS
|
PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
|
Debt
Equity Ratio |
0.67 |
0.85 |
0.70 |
|
Long
Term Debt Equity Ratio |
0.53 |
0.68 |
0.50 |
|
Current
Ratio |
1.07 |
1.06 |
1.25 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
1.25 |
1.36 |
1.72 |
|
Inventory
|
6.35 |
6.64 |
7.25 |
|
Debtors |
8.19 |
7.37 |
10.01 |
|
Interest
Cover Ratio |
7.04 |
6.71 |
3.63 |
|
Operating
Profit Margin (%) |
20.60 |
21.96 |
19.49 |
|
Profit
Before Interest and Tax Margin (%) |
15.58 |
17.20 |
15.74 |
|
Cash
Profit Margin (%) |
16.70 |
17.56 |
12.05 |
|
Adjusted
Net Profit Margin (%) |
11.68 |
12.80 |
8.31 |
|
Return
on Capital Employed (%) |
18.37 |
21.19 |
18.89 |
|
Return
on Net Worth (%) |
22.77 |
28.61 |
16.74 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
The company was incorporated
on 15th May, 1995 at Ahmedabad in Gujarat as a Private Limited
Liability Company under the Companies Act, 1956 and subsequently the company
was converted into a Public Company and then renamed as Cadila Healthcare
Limited effective from 17th July, 1996.
It’s Company Registration
Number is 25878.
Subject is the flagship of
Zydus Cadila Group.
Subject was established in
1951. After an existence of four and a
half decades subject restructured its operations in 1995, to keep pace with the
new business environment. Subject,
under the aegis of the Zydus Group came into existence with a focus on total
healthcare solutions.
Two families,
"the Patel's" and "the Modi's", promoted the Cadila group
of companies. The flagship company was Cadila Laboratories. There were other
companies named Cadila Chemicals, Cadila Exports, Cadila Antibiotics and Cadila
Veterinary Limited. In 1995, to pursue their independent business philosophies
a restructuring of the group was carried out under which two companies were
formed Cadila Laboratories Limited (Modi's) and the subject.
The business was
divided into two equal parts. After the restructuring the company embarked on a
major marketing exercise, which helped it, catapult from 15th rank to 6th rank
in the Indian Pharma industry. The promoters of the company, Mr. Ramanbhai
Patel and Mr. Pankaj Patel are both well qualified in the field of Pharmaceuticals
and have received several awards for their recognition.
In February, 2000 it came out
with a pubic issue of 14886000 shares of Rs. 5 each which included a book build
portion of 13397400 equity shares of Rs. 5 each and a fixed price portion of
1488600 equity shares at a premium of Rs. 245/- per share.
The fund raised is proposed
to utilise for financing new formulations unit at Moraiya, near Ahmedabad and
for expansion of bulk drug unit at Ankleshwar, Gujarat. It entered into technical collaboration with
Ethical Holdings of UK to manufacture and market transdermal patches in India.
The company’s operation
include pharmaceuticals (human formulations, veterinary formulations and
bulkdrugs), diagnostics, herbal products like skin care products and OTC products.
Its formulation complex is located at Moraiya Village, Sanand Taluka,
Ahmedabad.
The company has entered into
a joint venture with USA based Onconova Teherapeuticsl Inc. a biopharmaceutical
company specialising in the field of oncology (cancer research). This agreement
provides for future collaboration on research manufacturing and marketing of
products.
As a result of the merger of
4 companies the company has been rated
as fourth largest Pharmaceutical company in the domestic formulations market
with a market share of 3.80%.
Consequent of merger the
Equity Paid up has been risen by 5% during the year 2003.
Highlights
of Domestics operations for the year 2003-04
Ø
Domestic formulations
business grew at 11.9%, well above the market growth rate of 7.3%
Ø
Overall 5th
ranking in the domestic formulations market (ORG MAT-March 2004).
Ø
Retained No. 1 Position
in CVS, GI and FHC participated segments (ORG-MAT-March-2004)
Ø
Launched 69 new products
in the domestic market.
Ø
Crystallised
in-licensing arrangements with Schering AG, Boehringer ingelheim.
Ø
Manufacturing
optimisation implemented.
Financial
Highlights For the year 2003-04
Ø
Sales revenue of Rs.
11723 millions, up 14% from Rs. 10282 millions in 2002-03.
Ø
PBIDT up 29.4% y-y to
Rs.2488 millions from Rs. 1922 millions last year.
Ø
PBIDT margin up to
21.2%, compared to 18.7% last year.
Ø
PBT up 55.2% to Rs. 1634
millions, from Rs. 1053 millions last year. PBT margin expanded to 13.9% from
10.2% in 2002-03.
Ø
Net profits of Rs. 1429
millions, up 86.5% y-y from Rs. 766 millions in 2002-03. Net Margin of 12.2%
compared to 7.4% last year.
Ø
EPS of Rs. 22.75
compared to Rs. 12.2 in 2002-03, up 86.5%.
Business
:
The company’s wide range of
operations include formulations, bulk drugs, diagnostics, biologicals,
oncologicals, herbal products, animal healthcare products and cosmeceuticals.
At Zydus-Cadila subject carry out its business operations under self-reliant
strategic business units (SBU's). Each team collectively contributes to the
group's overall performance.
Leveraging company’s valuable assets of technical excellence, extended
manufacturing base and marketing proficiency, subject have evolved a growth
strategy which focuses on fast growth segments like Cardiovasculars,
Gastro-intestinals, Biologicals, Pain Management and Anti-infectives.
The future thrust area of the
company is to focus on high margin export markets and to this end it is getting
the plant registered with international drug regulatory authorities like the
U.S.F.D.A., MCA of UK and TGA of Australia.
The company has already received approvals from Medicines Control
Council of South Africa.
The company has, also set up
subsidiaries in South Africa and New Zealand to strengthen its overseas
operations.
The company's acquisition of
27.72% stake in German Remedies made the company the fourth largest
pharmaceuticals group in the domestic formulations market. It also acquired formulation business of the
Bangalore based Recon to form Recon Healthcare. It launched two patent anti-HIV drugs Lamivudine, Zidovudine,
Solotrate (Isosorbide Mononitrate) in the cardiovascular segment and Zycel
(Celecoxib) in the pain management segment.
It signed three year collaborative R & D agreement with Danish
Pantheco A/S in the field of anti-bacterial compounds. It also launched its fifth speciality
division on Zydus Neurosciences. Its
diagnostic division, Zydus Pathline is the first in India to manufacture and
market the diagnostic kit to detect reproductive hormones like Preganendiol
Glucuronide, Estrone Glucuronide, Follicle Stimulating hormone, etc.
The company has got a formal
GMP certificate from The Bureau of Foods and Drugs (BFAD) Philippines. It is the first Indian healthcare company to
receive this certificate and 3rd company outside Philippines.
The top brands of the company
are – Penegra, Aten, Pantodac, Oflin, Atorva, Zyrof, Ciprobid, Ocid, Dexona,
Oxalgin, Depin GRD, Oriprim and Globac-Z are among the top 300 Indian
Pharmaceutical brands of ORG (October 1999).
Financial
Review
During
the year under review, the Company achieved sales of Rs. 11253 millions, up
marginally compared to the previous year. The PBIDT decreased by 2.5%
year-on-year to Rs. 2395 millions. The Profit before Tax was down 8% to Rs.
1504 millions. The Profit after Tax decreased to Rs. 1314 millions down by 8%
compared to Rs. 1429 millions in 2003-04. The Company achieved EPS of Rs. 20.93
compared to Rs. 22.75 in 2003-04. The introduction of VAT from April 2005 by
most states led to destocking by traders. Under the new regime the rate of tax
for formulations which ranged from 8-12% was reduced to 4%. As a result
company's branded product sales suffered substantially during February and
March 2005. Total sales was down by 24% of domestic formulation sales for the
quarter. This led to lower profits for the last quarter and the year.
A detailed ahalysis of the operations of the
Company has been provided in the Management Discussion and Analysis Report,
which forms a part of this Annual Report.
Dividend
Your
Directors are pleased to recommend a dividend of Rs. 6/- per equity share on
62,80,6854 equity shares of Rs. 5/- each for the financial year ended 31st
March 2005. The dividend, if approved by the shareholders at the forthcoming
Annual General Meeting, will be paid to the eligible shareholders on or after
30th July 2005 and will absorb Rs. 430 millions including dividend tax.
Scheme of
Amalgamation
During the year under report
subject decided to amalgamate the wholly owned subsidiary Banyan Chemicals
Limited with the subject. The Hon’ble High Court of Gujarat has sanctioned the
Scheme on 25th March, 2004.
This scheme of amalgamation
of 100% subsidiary has not resulted in issuance of any new shares and hence
there is no change in the capital structure of the company. Subject’s investments
in its subsidiary so amalgamated has been extinguished.
Joint
Ventures
Ø
Zydus Atlanta Healthcare
Private Limited (ZAHL)
This 50:50 joint venture company between the company and Atlanta Pharma AG, is a 100% EQU situated at Navi Mumbai. ZAHL paid out three interim dividend of 100% in addition to a final dividend of 200% during the year.
Ø
Onconova Therapeutics
Inc., U.S.A. (ONCONOVA)
This is a US-based oncology research company. Subject has
invested Rs. 187 millions in
Convertibles Preferred Stock, amounting to 18.17% in stake in total paid up capital
Ø
Sarabhai Zydus Animal
Health Limited (SZAHL)
SZAHL is a 50:50 joint venture formed between the company
and Ambalal Sarabhai Enterprises Limited
to market animal healthcare products.
It incurred loss of Rs. 36.090 millions for the year under report.
Technical Collaborations:
Ø
The company
has entered in a technical collaboration with Swiss Serum and Vaccine Institute
to manufacture purified embryo anti-rabies vaccine.
Ø Subject has also entered in a technical
collaboration with Ethical Holdings of U.K. to manufacture transdermal drug
delivery technologies in India in the areas of anti-smoking, female healthcare
& pain management.
The company is a Government
of India Recognised Export House.
The company has an
international presence in more than 40 countries including Russia and other CIS
countries. With representative offices
in 10 countries, the company markets over 68 brands in various dosage forms.
In
recognition of the company’s efforts to promote, the Basic Chemicals,
Pharmaceuticals and Cosmetics Export Promotion Council (CHEMEXCIL) twice
conferred the company with its first award in 1982-83 and 1983-84 and late the
Top award for the year 1985-86.
The
company is in trade terms with:
Ø
Maxima Systems Limited
Ø
Beam Offset Private
Limited
Ø
Samrat Pharmachem
Limited
Ø
Redson Laboratories
Private Limited
Ø
D. K. Scientific
Industries
Ø
Precision Machine Tools
Ø
Azide & Allied
Chemicals
Ø
Gujarat Microwax
Ø
Jay Jalaram Engineering
& Fabricators
FIXED ASSETS
Freehold Land, Leasehold
Land, Buildings, Plant and Machinery, Furniture, Fixtures and Office
Equipments, Trade Marks, Technical Know-how and Vehicles.
Press
Releases :
Zydus Cadila receives approval for Warfarin tablets from US FDA
Zydus Cadila has received approval from the US FDA to market Warfarin Tablets in different strengths of 1 mg, 2 mg, 3mg, 4 mg, 5 mg, 6 mg, 7.5 mg, and 10 mg. The group plans to launch the product within a month time. The branded sales of the product in 2005 was reported to be over $210 millions. With this, the group now has a total of 14 approvals.
The group is likely to have considerable competitive advantage in this product as it will be sourcing the APL from its own USFDA approved manufacturing facility at Dabhasa. The drug, an anti – coagulant, falls in the cardiovascular segment
Zydus Cadila announces bonus of 1:1 Q4 Net Sales up 47% Net Profit up 377%
Ahmedabad, April 28, 2006.
With a strong all round
performance. Zydus Cadila
has posted excellent results for the Fourth
Quarter ended 31.03.2006. The net Sales for the Quarter is up 47% at RS.
3364.000 Millions as compared to Rs. 2297.000 Millions in the corresponding
period last year on a consolidated basis. Net profit for the same period is up
377% to Rs. 306.000 Millions y-y
In what has been a remarkable
year with the launch of operation in US generics market. the company posted
Gross Sales of Rs. 15078.000 Millions for the year 2005-06, on a consolidated
basis, up by 18% y-y.S The topline growth was driven by 15% growth in domestic
formulations sales and 114% growth in formulation exports. The growth in
exports was buoyed by 78% growth in sales in the French market, start up of
sales in US and Brazil and 29% growth in exports to other emerging markets.
Tacking stock of the
company’s growth in operations, the board of Directors have recommended an
issue of bonus shares in the ratio of 1:1 (1 Equity Shares of Rs. 5 each for
every equity shares held) and a dividend of 120% (Rs. 6 per share of Rs. 5
each) subject to approval by the shareholders at the Annual General Meeting.
The company notched up
several achievements during the year. US operation clocked sales of Rs. 500.000
Millions with launch of just 5 products in a short span of 7 months. The
operation become profitable in the very first year
The French business
operations have also received a boost with the signing of a diastribution agreement with Evolupham,
the 2nd Largest groupment of pharmacies in France, representing 2250
pharmacies.
To bring in grater focus on
the pure generics business, the branded business of Zydus France SAS was sold
for 7.000 Millions Euros. This non-core asset comprising OTC and mature brands
had been acquired for 37.000 Millions Euros.
Strengthening its regulatory
pipeline, the company filed 12 ANDAs and DMFs during the year taking cumulative
to 36 ANDA filings and 40 DMFs. It has so far received 13 ANDA approvals.
Making brisk progress in its research programme, the company’s NNE ZY H1 entered phaseII clinixcal trials. Additionally, two more INDs have been filed for NMEs Zyl1 and ZY H2.
Extending its equity in the health lifestyle segment, the company acquired 30.7% stake in Carnation Nutra – Analogue Foods Limited, the manufacturers of nutralite, India’s largest selling margarine with a market share of 60% Nutralite, which is free from cholesterol, is a healthier substitute for butter. It adds value to the product offering of the company’s Consumer Products Division which markets India’s largest selling sweetener – Sugar Free.
Opening new revenue streams for the company, the global contract Manufacturing Cell registered an income of Rs. 92.000 Millions in the first year of operations.
CMT REPORT [Corruption, Money
laundering & Terrorism]
The
Public Notice information has been collected from various sources including but
not limited to: The Courts, India Prisons Service, Interpol, etc.
1] INFORMATION ON DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or anti-terrorism
sanction laws or whose assets were seized, blocked, frozen or ordered forfeited
for violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial Crime :
Charges or conviction registered
against subject: None
5] Records on Violation of Anti-Corruption Laws :
Charges or investigation registered
against subject: None
6] Records on Int’l Anti-Money Laundering Laws/Standards :
Charges or investigation registered
against subject: None
7] Criminal Records
No available information exist that suggest that
subject or any of its principals have been formally charged or convicted by a
competent governmental authority for any financial crime or under any formal
investigation by a competent government authority for any violation of anti-corruption
laws or international anti-money laundering laws or standard.
8] Affiliation with Government :
No record exists to suggest that any director or
indirect owners, controlling shareholders, director, officer or employee of the
company is a government official or a family member or close business associate
of a Government official.
9] Compensation Package :
Our market survey revealed that the amount of
compensation sought by the subject is fair and reasonable and comparable to
compensation paid to others for similar services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA
INFORM as part of its Due Diligence do provide comments on Corporate Governance
to identify management and governance. These factors often have been predictive
and in some cases have created vulnerabilities to credit deterioration.
Our
Governance Assessment focuses principally on the interactions between a
company’s management, its Board of Directors, Shareholders and other financial stakeholders.
CONTRAVENTION
Subject
is not known to have contravened any existing local laws, regulations or
policies that prohibit, restrict or otherwise affect the terms and conditions
that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US
Dollar |
1 |
Rs. 45.93 |
|
UK
Pound |
1 |
Rs.85.32 |
|
Euro |
1 |
Rs.58.75 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP
CAPITAL |
1~10 |
8 |
|
OPERATING
SCALE |
1~10 |
8 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT
LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT
POINTS |
|
|
|
--BANK
CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER
ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT
POINTS |
|
|
|
--SOLE
DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT
ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
71 |
This
score serves as a reference to assess SC’s credit risk and to set the amount of
credit to be extended. It is calculated from a composite of weighted scores
obtained from each of the major sections of this report. The assessed factors
and their relative weights (as indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit
history (10%) Market
trend (10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses
an extremely sound financial base with the strongest capability for timely
payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses
adequate working capital. No caution needed for credit transaction. It has
above average (strong) capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial
& operational base are regarded healthy. General unfavourable factors
will not cause fatal effect. Satisfactory capability for payment of interest
and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall
operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable
& favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
Small |
|
11-25 |
Ca |
Adverse
factors are apparent. Repayment of interest and principal sums in default or
expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute
credit risk exists. Caution needed to be exercised |
Credit not recommended |