MIRA
INFORM REPORT
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Report Date : |
11.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
HIKAL LIMITED |
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Registered Office : |
6, Nawab
Building, 327, Dr. D. N. Road, Fort, Mumbai – 400 001, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
08.07.1988 |
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Com. Reg. No.: |
11 – 48028 |
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CIN No.: [Company
Identification No.] |
U24200MH1988PTC048028 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMH07537F /
BRDH00497A |
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PAN No.: [Permanent
Account No.] |
AAACH0383A |
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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 : |
The company is engaged
in to carry on the business of producers, manufacturers, processors,
converters, importers, exporters, buyers and sellers and dealers in chemicals
and pharmaceutical together with preparations and by-products thereof and of
dyes, dyestuffs and dyes intermediates, pigments, and colours and of
pharmaceuticals, intermediates, chemicals products, heavy chemicals, acids,
alkalise, drugs, etc |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 7000000 |
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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
well-established and reputed company having fine track. Directors are reported
as experienced, respectable and resourceful industrialists. Their trade
relations are fair. Financial position is good. Payments are correct and as
per commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. It can be
regarded as a promising business partner in a long run. |
LOCATIONS
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Registered
Office / Corporate Office : |
717/718, Maker
Chambers V, 7th Floor, Nariman Point, Mumbai – 400 021,
Maharashtra, India |
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Tel. No.: |
91-22-22301801 |
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Fax No.: |
91-22-22833913 |
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E-Mail : |
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Website : |
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Head Office : |
6, Nawab
Building, 327, Dr. D. N. Road, Fort, Mumbai – 400 001, Maharashtra, India. |
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Tel. No.: |
91-22-22301801 |
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Fax No.: |
91-22-22833913 |
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Administrative
Office : |
603 A, Great Eastern
Chambers, Sector 11, CBD – Belapur, Navi Mumbai – 400 614, Maharashtra, India |
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Tel. No.: |
91-22-27574276 /
27574336 / 27574991 |
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Fax No.: |
91-22-27574277 |
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Email : |
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Plant
Locations |
·
MAHAD A-18, MIDC Industrial Area, Mahad – 402 301, Maharashtra, India. ·
TALOJA Plot No. T – 21, MIDC Industrial Area, Taloja – 410 208, Maharashtra,
India. ·
PANOLI Plot Nos. 629/630, GIDC Industrial
Area, Panoli – 394 116, Gujarat,
India. ·
R&D Unit Bannerghatta, Karnataka ·
Pharma Unit - I Jigani, Karnataka ·
Pharma Unit - II Jigani, Karnataka ·
Dombivli, Maharashtra ·
MIDC, Taloja, District Raigad, Maharashtra ·
MIDC, Mahad, District Raigad, Maharashtra ·
GIDC, Panoli, District Bharuch, Gujarat ·
KIADB, Jigani, Bangalore, Karnataka ·
Bannerghatta, Bangalore, Karnataka ·
MIDC, Dombivli, Maharashtra |
DIRECTORS
|
Name : |
Mr. Baba N.
Kalyani |
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Designation : |
Chairman |
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Name : |
Mr. Prakash V.
Mehta |
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Designation : |
Director |
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Name : |
Mr. Shivkumar M.
Kheny |
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Designation : |
Director |
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Name : |
Mr. Bimal Raizada |
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Designation : |
Director |
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Name : |
Mr. Kannan K.
Unni |
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Designation : |
Director |
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Name : |
Mrs. Sugandha J.
Hiremath |
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Designation : |
Director |
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Name : |
Mr. Sameer J.
Hiremath |
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Designation : |
Director |
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Name : |
Mr. Jai Hiremath |
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Designation : |
Managing Director |
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Name : |
Mr. Sham. V.
Wahalekar |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Promoters |
11305114 |
74.97 % |
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Resident
Individuals |
2120512 |
14.06 % |
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FII |
1308160 |
8.67 % |
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Foreign National |
24310 |
0.16 % |
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Non – Resident
Individuals |
43145 |
0.29 % |
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Corporate Bodies |
278859 |
1.85 % |
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Total |
15080100 |
100.00 % |
BUSINESS DETAILS
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Line of Business : |
The company is engaged
in to carry on the business of producers, manufacturers, processors,
converters, importers, exporters, buyers and sellers and dealers in chemicals
and pharmaceutical together with preparations and by-products thereof and of
dyes, dyestuffs and dyes intermediates, pigments, and colours and of
pharmaceuticals, intermediates, chemicals products, heavy chemicals, acids,
alkalise, drugs, etc |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Crop Protection
Products |
MT |
5036 |
4436 |
3924.35 |
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Pharmaceutical
Products |
MT |
-- |
180 |
-- |
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Bulk Drugs |
MT |
-- |
-- |
440.78 |
|
Trading in Crop
Protection Products |
Rs. in Millions |
-- |
-- |
184.500 |
GENERAL
INFORMATION
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No. of Employees : |
730 |
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Bankers : |
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Facilities : |
Secured Loan
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
RSM & Company Chartered
Accountants |
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Group Company
: |
·
Hikal International B.V. ("HIBV") ·
Hikal Pharmaceuticals Limited ("HPL") ·
Hikal Technologies Limited ("HTL") ·
Marsing & Company Limited A/S ("Marsing") ·
SteriSuma Limited Denmark ·
Marsing Scandinavia, Denmark ·
Medipharma Limited, Denmark ·
DanskPulver, Denmark ·
Brermer Pharma, Germ'any ·
Intsel Chimos S. A., France Marsing Meditalia, Italy Marsing &
Company, Africa |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2,50,00,000 |
Equity Share |
RS.10/- Each |
Rs. 250.000 Millions |
|
50,00,000 |
Cumulative
Redeemable Preference shares |
Rs. 100/- Each |
Rs. 500.000 Millions |
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Total |
|
Rs. 750.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1,50,80,100 |
Equity Shares |
Rs. 10/- Each |
Rs. 150.800 Millions |
|
4,698,225 |
7% Cumulative
Redeemable Preference Shares |
Rs. 100/- each |
Rs. 469.820 Millions |
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Total |
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Rs. 620.620 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS
FUNDS |
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1] Share Capital |
620.620 |
150.801 |
150.794 |
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2] Share
Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves &
Surplus |
1168.180 |
897.134 |
673.918 |
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4] (Accumulated
Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH
|
1788.800 |
1047.935 |
824.712 |
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LOAN FUNDS |
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1] Secured Loans |
1267.810 |
1419.394 |
861.509 |
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2] Unsecured
Loans |
710.940 |
212.041 |
25.187 |
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TOTAL BORROWING
|
1978.750 |
1631.435 |
886.696 |
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DEFERRED TAX
LIABILITIES |
0.540 |
13.824 |
42.200 |
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TOTAL
|
3768.090 |
2693.194 |
1753.608 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
|
1412.230 |
1489.708 |
1226.867 |
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Capital work-in-progress
|
411.690 |
131.134 |
193.241 |
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INVESTMENT
|
306.900 |
291.517 |
2.864 |
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DEFERREX TAX ASSETS
|
22.500 |
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CURRENT ASSETS, LOANS &
ADVANCES
|
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Inventories
|
932.340
|
590.311 |
389.331 |
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Sundry Debtors
|
450.970
|
418.186 |
128.529 |
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Cash & Bank Balances
|
378.000
|
27.537 |
18.804 |
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Other Current Assets
|
0.000
|
0.000 |
0.000 |
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Loans & Advances
|
373.000
|
255.035 |
139.745 |
Total Current Assets
|
2134.310
|
1291.069 |
676.409 |
|
Less :
CURRENT LIABILITIES & PROVISIONS
|
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Current Liabilities
|
432.890
|
432.353 |
288.134 |
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Provisions
|
114.730
|
78.581 |
64.934 |
Total Current Liabilities
|
547.620
|
510.934 |
353.068 |
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Net Current Assets
|
1586.690
|
780.135 |
323.341 |
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MISCELLANEOUS EXPENSES
|
28.080 |
0.700 |
7.295 |
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TOTAL
|
3768.090 |
2693.194 |
1753.608 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
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Sales Turnover |
2634.230 |
2025.987 |
1416.208 |
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Other Income |
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Total Income |
2634.230 |
2025.987 |
1416.208 |
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Profit/(Loss) Before Tax |
381.520 |
315.880 |
260.863 |
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Provision for Taxation |
(32.670) |
(25.210) |
(16.334) |
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Profit/(Loss) After Tax |
414.190 |
341.090 |
277.197 |
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Earnings in Foreign Currency : |
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Export Earnings |
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Commission Earnings |
1756.500 |
1543.752 |
1173.454 |
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Other Earnings |
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Total Earnings |
1756.500 |
1543.752 |
1173.454 |
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Imports : |
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Raw Materials |
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Stores & Spares |
464.180 |
231.466 |
NA |
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Capital Goods |
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Others |
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Total Imports |
464.180 |
231.466 |
NA |
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Expenditures : |
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Cost of Goods Sold |
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Manufacturing Expenses |
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Administrative Expenses |
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Raw Material Consumed |
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Purchases made for re-sale |
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Consumption of stores and spares parts |
2252.710 |
1710.107 |
1155.345 |
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Increase/(Decrease) in Finished Goods |
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Salaries, Wages, Bonus, etc. |
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Managerial Remuneration |
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Payment to Auditors |
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Interest |
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Insurance Expenses |
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Power & Fuel |
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Depreciation & Amortization |
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Other Expenditure |
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Total Expenditure |
2252.710 |
1710.107 |
1155.345 |
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QUARTERLY RESULTS
|
PARTICULARS |
30.06.2006 [1st
Quarter] |
30.09.2006 [2nd
Quarter] |
31.12.2006 [3rd
Quarter] |
|
Sales
Turnover |
520.000 |
598.000 |
557.000 |
|
Other
Income |
6.000 |
12.000 |
17.000 |
|
Total
Income |
526.000 |
610.000 |
574.000 |
|
Total
Expenditure |
403.000 |
458.000 |
412.000 |
|
Operating
Profit |
123.000 |
152.000 |
162.000 |
|
Interest |
30.000 |
38.000 |
36.000 |
|
Gross
Profit |
93.000 |
114.000 |
126.000 |
|
Depreciation |
33.000 |
40.000 |
38.000 |
|
Tax |
1.000 |
1.000 |
1.000 |
|
Reported
PAT |
65.000 |
79.000 |
91.000 |
Notes
200606 Quarter 1 –
1. The above results were taken on record by the Board of Directors
at their meeting on July 31,2006. 2. The EPS forthe quarter has been calculated
considering prorata to preferential share holder of Rs. 8 million. The EPS
would have been Rs. 4.28 3. The financial performance of Consolidated Marsing
& Company Limited A/S, the subsidiary company for the quarter ended June
30,2006 shows sales of I minority interest was Rs. 22 million. 4. The auditors
of the Company have carried out a 'Limited Review' of the financial results for
the 3 months ended on June 30,2006 in terms of C Stock Exchanges. The review
report will be submitted to the concerned Stock Exchange with in the stipulated
time. 5. There were no investors complaints at the beginning of the quarter.
During the quarter 1 compliant was received and resolved therefore no complia
6. Previous period's figures have been re-grouped wherever necessary. 7. The
company is in the process of compiling data and ascertaining the final impact
of the Accounting Standard 15 'Employee Benefits' (Revised 2 Accountants of
India and would account for the same in the subsequent quarters / by year end.
8. Retrospective reduction in duty free entitlement under Target Plus Scheme
for exporters was announced in June 2006 by the Government. The exp
representations to the government for restoring the benefit under this scheme,
the matter is under consideration. Pending the final outcome, tht 2005-2006 of
approx. Rs. 11.20 million has not been considered in these results.
200609 Quarter 2 –
1. The above results were taken on record by the Board of
Directors at their meeting on October 31,.2006. 2. The EPS for the quarter has
been calculated, considering prorata dividend to preference share holders of
Rs. 8 million. The EPS for the quarter would have been Rs. 5.72 without
considering the above dividend and for half year Rs.10/-. 3. The financial
performance of Consolidated Marsing & Company Limited A/S, the subsidiary
company for the quarter ended September 30, 2006 shows sales of Rs. 474 Million
and net loss after tax and minority interest was Rs. 37 Million. The sales for
the half year is Rs.1020 million and loss after tax and minority interest was
Rs. 59 million. 4. The auditors of the Company have carried out a 'Limited
Review' of the financial results for the 6 months ended on September 30, 2006
in terms of Clause 41 of the Listing Agreements with Stock Exchanges. The
review report will be submitted to the concerned Stock Exchanges within the
stipulated time. 5. There were no investors complaints at the beginning of the
quarter. During the quarter 1 complaint was received and resolved therefore no
complaints were pending as on September 30, 2006. 6. The company plans to
obtain High Court approval for utilisation of General Reserve, interalia, for
adjustment of premium payable on Foreign Currency Convertable Bonds (FCCB) on
maturity, pending which premium on FCCB has not been amortised starting July 1,
2006. The amortisation for the quarter ended September 30, 2006 amounts to Rs.
8.8 Million. 7. During the quarter, the company has written off export
incentives of Rs. 7 Million net of tax that had accrued and accounted during
last year, due to reduction of incentives under Target Plus Scheme announced by
Government of India which has been retrospectively amended and has been
re-confirmed by Government during August 2006.
200612 Quarter 3 –
Expenditure Includes (Increase)/Decrease in stock Rs (22.00)
million Raw Material & Utilities Rs 307.00 million Staff Cost Rs 62.00 million
Other expenditure Rs 65.00 million Tax Includes Provision for Fringe Benefit
Tax Rs 1.00 million Deferred Tax Rs (4.00) million EPS is Basic & Diluted
Status of Investor Complaints for the quarter ended December 31, 2006
Complaints Pending at the beginning of the quarter Nil Complaints Received
during the quarter 01 Complaints disposed off during the quarter 01 Complaints
unresolved at the end of the quarter Nil 1. The Board of Directors have
declared an interim dividend of 30%. 2. The above results were taken on record
by the Board of Directors at their meeting on January 30, 2007. 3. The EPS for
the quarter has been calculated, considering prorata dividend of Rs 28.3
million to preference share holders (previous year Rs 4 Million). The EPS for
the quarter would have been Rs 6.01 (previous year Rs 6.60) without considering
the above dividend and for nine months Rs 15.99 (previous year Rs 19.21). 4.
The financial performance of consolidated Marsing & Co Limited A/S, the
subsidiary company for the quarter ended December 31, 2006 shows sales of Rs
516 Million and net loss after tax and minority interest was Rs 41.2 Million.
The sales for the nine months is Rs 1536 million and loss after tax and
minority interest was Rs 99.5 million, which includes exceptional expenditure
of Rs 18 million and other restructuring cost. 5. The auditors of the company
have carried out a 'Limited Review' of the financial results for the 9 months
ended on December 31, 2006 in terms of clause 41 of the Listing Agreement with
the stock exchanges. The review report will be submitted to the concerned Stock
Exchanges within the stipulated time. 6. The Company plans to obtain High Court
approval for utilisation of Capital Reserve, interalia, for adjustment of
premium payable on Foreign Currency Convertible Bonds ( FCCB) on maturity,
pending which premium on FCCB has not been amortised starting July 1, 2006. The
amortisation for the quarter and nine months ended December 31, 2006 amounts to
Rs 8.8 Million and Rs 17.6 million
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt Equity Ratio |
1.27 |
1.35 |
1.26 |
|
Long Term Debt
Equity Ratio |
0.89 |
0.95 |
1.01 |
|
Current Ratio |
1.53 |
1.16 |
1.14 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
0.99 |
0.89 |
0.86 |
|
Inventory |
3.18 |
3.98 |
3.90 |
|
Debtors |
5.56 |
7.13 |
16.87 |
|
Interest Cover
Ratio |
4.04 |
5.35 |
7.11 |
|
Operating Profit
Margin (%) |
27.06 |
26.95 |
26.63 |
|
Profit Before
Interest and Tax Margin (%) |
20.97 |
19.93 |
19.87 |
|
Cash Profit Margin
(%) |
23.22 |
24.52 |
24.91 |
|
Adjusted Net
Profit Margin (%) |
17.14 |
17.50 |
18.14 |
|
Return on Capital
Employed (%) |
15.80 |
17.73 |
18.65 |
|
Return on Net
Worth (%) |
34.03 |
36.43 |
38.05 |
STOCK PRICES
|
Face Value |
Rs. 10.00/- |
|
High |
Rs. 335.00/- |
|
Low |
Rs. 324.00/- |
LOCAL AGENCY
FURTHER INFORMATION
Fixed Assets:
·
Freehold Land
·
Leasehold Land
·
Building
·
Plant & Machinery
·
Electrical Installation
·
Office Equipment
·
Furniture &
Fixtures
·
Vehicles
·
Computer Software
History :
Subject was
incorporated on 8th July 1988 at Mumbai in Maharashtra under the
name & style of Hikal Chemical Industries Limited having company
registration number 48028.
The name of the
company has been changed to Hikal Limited with effect from 29th
September 2000.
Subject was
incorporated with equity participation of Hiremaths, Kalyani Group, and
subsequently Sumitomo Corporation of Japan. The manufacturing activities
started at Mahad in 1991, at Taloja in 1998 and at Panoli in 2000.
The company has expanded facilities of its existing products--MCA, PC, MNCB,
etc, and diversified into the production of metoxuron technical, a wheat
herbicide, which is being manufactured for the first time in the country.
Sumitomo Corporation, Japan, which earlier marketed Hikal's products, acquired
an equity stake in the company to source intermediates on a toll-manufacturing
basis to be marketed through Sumitomo's worldwide marketing network.
During 1996, the company came with public issue to part finance the expansion
project of Thiabendazol. The company has been accorded Export House status by
the Government of India.
The company set up a new manufacturing facility near Mumbai in collaboration
with Merck & Co Inc, USA, for the manufacture of a post-harvest fungicide.
A 100% EOU unit for the manufacture of Thiabendazole at Taloja has been
successfully commissioned and quality matches Merck & Company, Inc. USA
standard and is now being sold all over the world.
During the year
1999-2000, the company has acquired an Agrochemical manufacturing site at
Panoli, Gujarat from Novartis India Limited. The Company's status as an Export
House has been elevated to that of a Trading House.
THE YEAR UNDER REVIEW
In the last two years, the Indian economy has witnessed a strong growth
of 7 to 8% and projected rate for next year is 7.5 to 8%. There was a
remarkable growth in the manufacturing and service sector while a decent growth
was observed in the agricultural sector. Inflation has been in the range of 4
to 5%.
FIIs have been investing heavily into the equity of Indian companies on
the back of robust economic growth leading to BSE index crossing many
landmarks. During the year, new customers have been identified and agreements
with them have been concluded. The benefits of these contracts will accrue in
the coming years.
EXPORTS
Exports for the year were Rs. 1780 millions as against Rs. 1540 millions
in the previous year registering a growth of 16%.
OPERATIONS
Taloja Site:
Thiabendazole off take by Syngenta Crop Protection AG was lower than the
previous year. New products are being developed to be manufactured at this
site. They expect two new products to be manufactured at this site in the near
future.
Mahad Site:
Mahad plant's capacity utilization has increased resulting in better absorption
of costs. New projects are under evaluation, which could lead to a significant
increase in contributions.
Panoli Site:
The sale of agro product was satisfactory and the price realizations were under
pressure. However, the Pharma intermediate product saw a significant increase
in sales, which is also being used as an intermediate for their Pharma products
manufactured at Bangalore.
Bangalore Site:
Export of Gabapentine to the US and Canada markets have already commenced and
has been well accepted. To cater to the increased demand, the capacity of
Gabapentine is under expansion. The new site to manufacture high value low
volume pharmaceutical products is under implementation and should be
operational by 3rd quarter of 2006-07.
Their R&D unit is also performing satisfactorily and has started executing
custom synthesis orders for multinationals. This year, they filed many DMFs
with the regulatory authorities.
ACQUISITIONS
During the year, the company made a strategic investment in Jiangsu Chemstar
Industries Company, Limited (a subsidiary company of Sinochem Corporation,
China 'A FORTUNE 500' company). Hikal acquired a 10% stake (with an option to
invest up to 20%) in this year.
This arrangement, they believe will give us an opportunity for expanding their
business operations globally and will enable us to market their own products
through their networks and also provide us an opportunity to import raw
materials at a competitive rate for use in their own manufacture.
Last year, the company acquired Marsing & Company A/S, Denmark and they
have already commenced marketing and distribution of APIs in various
countries.
This year, a restructuring exercise has commenced in the company and the
results of these efforts will be seen by 4th quarter of 2006-07.
FOREIGN CURRENCY CONVERTIBLE BONDS (FCCB) PREFERENCE SHARES
ISSUE
During the year, the company raised US$ 12 million from FCCB, convertible at
the option of the bondholder at any time on or after November 21, 2005 but
prior to the close of business on October 10, 2010 at a price of Rs.745 per
share of par value of Rs. 10 per share. Investors are overseas Institutional
Investors. The FCCB funds are being utilized for overseas acquisition as well
as capital expenditure for expansion of existing facilities at various
locations.
The company has also raised Rs. 470 millions from 7% Cumulative Redeemable
Preference Shares. Redeemable at par at the end of 3 years and one day from
November 24, 2005 (issue date) i.e. November 24, 2008 with put/call option at
the end of 18 months, these preference shares are convertible in whole or in
part @ Rs. 665 per share from the issue date till the end of 18 months. The
proceeds from these Preference Shares was utilized for paying of some of the
high interest bearing debts and additional working capital requirements.
Outlook:
The company's initiatives have been bearing fruit over the past few years
and as a result, the company has registered growth at a CAGR of 23%. The
company has been closely monitoring its short term/long term strategies and has
been realigning them with changing market scenarios. In 2006-07, the new
initiatives will produce results towards the end of the 3rd quarter/ the
beginning of the 4th quarter. The company is revamping operational efficiencies
of its plants and streamlining the business at its subsidiaries in Europe.
These benefits will accrue in the year 2007-08.
Some of the initiatives that will boost Hikal's growth in the future
are:
1. Hikal's foray into the US regulated market with FDA approved products.
2. The company's custom synthesis and contract manufacturing model which has
added several customers.
3. The company has added a new API unit and a cGMP Kilo Lab for its Bangalore
plant and a pilot plant at Taloja. A new R & D center at Pune will be
dedicated to contract research. It will be completed by mid 2007. All these
investments will yield results in the forthcoming year.
4. A minority stake of 10% in the subsidiary of US$ 20 billion Sinochem
Corporation will enable the company to compete in the international market in a
cost effective manner by sourcing its intermediate products through this
Chinese company. It will manufacture and source its products through this
Chinese company.
5 The crop protection segment is in the process of phasing out old molecules
and introducing high value low volume molecules.
6. Marsing is undergoing restructuring. Positive results are expected after the
restructuring process.
AWARDS
During the year, the company received the following
awards from 'Association of Business Communicators' of India
Folder design AGM speech -1st prizeWebsite-2nd prizeAnnual report-3rd
prizeMagazine design - Hikal Happenings-2nd prizeNewsletter - Hikal
Happenings-2nd prize
Future plan of action:
Significant investments in R & D is proposed in the coming year in the
areas of Crop Protection and Pharmaceuticals. The company sees significant potential
for tie-ups with multinationals for contract research. Also in order to pursue
an aggressive growth strategy to penetrate the US and the EU market, it is
necessary to have a good product pipeline which derisks the company's business
model. The company will continue to focus on improvement of process for
existing products, development of new process keeping in mind quality, safety
and environmental control as well as the opportunities available for
collaborative research with global corporations. The aim of R & D is to
enable the company to become a partner of choice for life sciences companies
around the world.
Hikal
was incorporated in 1988, with equity participation of Hiremaths, Kalyani
Group, and subsequently Sumitomo Corporation of Japan. The manufacturing
activities started at Mahad in 1991, at Taloja in 1998 and at Panoli in 2000.
The company has expanded facilities of its existing products--MCA, PC, MNCB,
etc, and diversified into the production of metoxuron technical, a wheat
herbicide, which is being manufactured for the first time in the country. The
client list for the company's products include Hoechst, Montari, Sandoz, IPCA,
Bayer, Sumitomo, etc. Sumitomo Corporation, Japan, which earlier marketed
Hikal's products, acquired an equity stake in the company to source
intermediates on a toll-manufacturing basis to be marketed through Sumitomo's
worldwide marketing network.
During 1996, company came with public issue to part finance the expansion
project of Thiabendazol. The Company has been accorded Export House status by
the Government of India. The Company set up a new manufacturing facility near
Mumbai in collaboration with Merck & Company Inc, USA, for the manufacture
of a post-harvest fungicide.
A 100% EOU unit for the manufacture of Thiabendazole at Taloja has been
sucessfully commissioned & quality matches Merck & Company, Inc. USA
standard and is now being sold all over the world.
During 1999-2000, the company has acquired an Agrochemical manufacturing site
at Panoli, Gujarat from Novartis India Limited. The Company's status as an
Export House has been elevated to that of a Trading House.
The Company entered into an agreement to acquire the R&D Unit and Bulk Drug
Manufacturing Facility of Wintac Limited at Bangalore in Karnataka. The
Company's status was enhanced from Export House to Trading House. The Company
also received the prestigious '5 star Safety Award' from British Safety
Council' UK for high standards maintained at the Taloja Site. The Bangalore API
Plant is now awaiting for USFDA inspection and the plant was already approved
by Australian TGA. Hikal intends to introduce new products in the coming year.
A 100% EOU plant for pharamaceutical intermediates is being set up. This unit
is expected to be operational in the first half of the coming year.
A
company built on enduring relationships
A technology-driven
company, Hikal began operations in 1988, with a clear vision. They wanted to be
a partner in growth-rather than a competitor-a partner to national and multinational
corporations as an independent source of quality fine chemicals,
pharmaceuticals API's and agrochemicals. Crop protection, industrial chemicals,
healthcare... these were the spheres they set out to make their mark in and
have done so successfully for well over a decade.
Over the years,
they have earned respect and recognition from some of the best-known names in
the business. World leaders in their respective fields have sought partnerships
with us, and they have always lived up to their expectations.
High safety
standards
British Safety
Council Award received in 2000
A signatory to
“Responsible Care” programme
Environment
Protection Awareness
ISO 14001 Accredited
OHSAS 18001 Accredited
All locations have elaborate Waste Water Treatment facilities
High temperature Thermal Oxidiser incineration system servicing all Hikal
plants and other customers
Quality
ISO 14001/9002
US FDA, TGA
& WHO GMP approved facility
Confidentiality
Reliability
Quick
response to Customer requirements
In all that they do, they
are guided by their mission statement - The Hikal Way. Doing business in this
manner has paid dividends... today, companies choose us for their transparency,
their integrity, their respect for confidentiality, their observance of high
standards and IPR and their commitment to technical excellence.
The Hikal Way
·
Be a
complimenting partner in progress rather than a competitor
·
Ensuring total
customer satisfaction
·
Observing and
respecting Intellectual Property Rights (IPR)
·
Sharing
benefits through continuous improvement
·
Building and
sustaining relationships
Hikal is a
multi-product, multi-location company with activities spanning research,
development, manufacturing, formulation and packaging. It provides a strong
bridge in the research to marketing value chain through its excellence in
development and manufacturing.
For
Hikal, R&D is the force that drives their business. While the emphasis at
their R&D Centre has been on their in-house requirements, they also carry
out Contract Research with complete confidentiality.
·
Process
development under GLP
·
Scale up from
gms to multi kgs
·
Contract
synthesis
·
Contract
research
·
Analytical
method development
·
Formulation
development
·
Isolation of bioactive
principles from natural resource
·
Documentation-USA,
EU-DMF, cGMP, SMF,
·
ISO 9001:2000
High on their
priority list
The safety of their people
and their environment is of paramount importance. It always will be. Their organisational
and plant systems, procedures and practices are under constant review for
enhancement of standards to improve safety of plant and personnel. Hikal has an
elaborate Safety Management Plan which includes : Project safety reviews,
Process safety management policy and procedures, Process specific training
programmes, Hazard identification and safety review procedures, Process safety
testing and Emergency preparedness.
Hikal in deal with
US firm for agrochemical supply - The Financial Express (February 23, 2005)
Hikal Limited Which is engaged in custom synthesis and manufacture of
active pharmaceutical ingredients and crop protection chemicals, has joined
hands with US based $2 Billion Crompton for supply of new generation
agrochemicals which are more potent than the existing ones. These include some
of the highly potent insectisides used for hoticultural crops. In the pharma
front, the company has filed five drug master files (DMF's) and expects to
launch two blockbuster drugs during the second half of this year. Speaking to
FE, Jai Hiremath, Vice-chairman and managing director said : " We are
upbeat with the tie-up with Crompton as we can manufacture and supply new
generation agrochemicals" he said.The chemicals have higher potency when
applied for fruits and vegetables. Further in the pharma sector, the company is
planning to launch two clockbuster drugs which are Gabapantene and Bupropion.
Gobally Gabapantene has a market of $3 Billion for treatment of epilepsy and
Bupropion has a share of $2 Billion and acts as an anti-depressant, he
informed.
Hikal hits the roof
on new US deal buzz - Business Standard ( February 23, 2005 )
Hikal stock spurted on the bourses after the company said that it has
entered into a long-term agreement with a leading American company, Crompton
Corporation USA, for manufacture and supply of a new generation crop protection
product. As a result the stock was up 10.10 per cent to close at Rs 425.55 with
over 47,000 shares changing hands on the BSE.
Hikal is already supplying crop protection products to multinationals
such as Syngenta and CropScience AG. In September 2004, Hikal had entered into
a tie-up with Bayer Crop Science AG, to manufacture and supply key agrochemical
intermediates.
Hikal has set up a new manufacturing facility at Mahad, Maharashtra, to
manufacture these products.
The company for the quarter ended December 2004, has reported a 20 per cent
growth in net profit to Rs 82.5 millions, on a 27.4 per cent growth in sales to
Rs 447.3 millions.
Hikal to launch drugs
in US, Europe in '06 - The Economic Times, Mumbai ( February 5, 2005 )
Pharma and
agrochemical intermediary company Hikal plans to launch at least two drugs in
the European and American markets by early next year. In addition the company
has lined up investments worth around Rs. 400 millions for the next 2 - 3
years. The company , which appears bullish on the emerging opportunities in the
pharma sector as a result of the WTO product patent regime coming into force,
is setting up a chemistry research center in Pune at an estimated cost of
around Rs. 200 Millions. Besides, it is also planning to set up a captive power
generating plant in its Maharashtra unit with another Rs. 200 Millions
investment.
Hikal is planning to launch at least two drugs in the European market through
the pharma marketing and distribution company. " Our gain through the
acquisition has been the huge customer base of the company, which has given us
a firm foothold in Europe," Jai Hiremth, Vice chairman and managing director
Hikal said. The company will be lauching two drugs - gabapentin for epilepsy
and bupropion for depression as soon as the patent for the two drugs come
through
Ramakrishna Iyer
Dy. General Manager
Marketing (Pharma)
Press Releases
Hikal’s Q1 Sales
at Rs 520 millions, Net Profit at Rs 65 millions - July 31, 2006
Mumbai, July 31, 2006: Hikal Limited, the preferred
long-term outsourcing partner for leading global life sciences companies,
posted a net profit Rs 65 millions for the quarter ended June 30, 2006.
Hikal’s net sales for the first quarter ended June
30, 2006 stood at Rs 520 millions. The company’s EBIDTA (Earnings Before
Interest, Depreciation, Tax and Amortisation) for the quarter stood at Rs. 131
millions.
Jai Hiremath, Vice Chairman and Managing Director of
Hikal said, “We have made an investment of Rs 500 millions in 3 new projects –
a pilot plant at Taloja, an API facility and a cGMP Kilo Lab at Bangalore.
Additionally, we have also invested Rs 300 millions at the R&D centre at
Pune. The returns on these investments will accrue in the first quarter of 2007
and will enable us to provide the whole range of services to global life
sciences companies.”
Hikal has commissioned a new Pilot Plant at Taloja to
manufacture an agrochemical product for a global chemicals company. A new API
manufacturing unit has been set up at Bangalore that will manufacture a new
veterinary drug for a global pharmaceutical company. The multi-product API
plant is expected to start full-scale production by end-2007. Hikal has also
set up a new cGMP kilo lab at Jigani. The new facilities will enable Hikal to
offer the complete range of outsourcing services to global life science
companies through various stages of the product development cycle. These
facilities, set up at a cost of Rs. 500 millions, will help Hikal significantly
enhance its capabilities to become the preferred outsourcing partner for the
global life sciences companies.
Hikal Sets Up
New Pilot Plant, API Manufacturing Unit and a Kilo Lab - July 26, 2006
Mumbai, July 26, 2006: Hikal Limited, has announced
the commissioning of a new Pilot Plant at Taloja, a new API manufacturing unit
at Bangalore and a cGMP kilo lab at Jigani. The facilities, set up at a
cost of Rs. 500 millions, will help Hikal significantly enhance its
capabilities to become the preferred outsourcing partner for the global life
sciences companies.
A new pilot plant at Taloja has been set up to
manufacture an agrochemical product for a global chemicals company. The pilot plant
will start operations in August 2006 and a full-scale multi-purpose
agrochemical plant is expected to be commissioned by 2008.
Hikal has set up a new API manufacturing unit in
Bangalore that will manufacture a new veterinary drug for a global pharmaceutical
company. The multi-product API plant is expected to start full-scale production
by end-2007.
The company has set a new cGMP Kilo Lab at Jigani in
Bangalore. The new facilities will enable Hikal to offer the complete
range of outsourcing services to global life science companies through various
stages of the product development cycle.
Jai Hiremath, Vice Chairman and Managing Director,
Hikal said, “In the last few years, the need to outsource for the global life
science majors has increased considerably, and outsourcing is moving from being
just a tactical option to a more strategic one. Hikal will continue to expand
and strengthen their capabilities to garner a larger pie of the multi-billion
dollar opportunity.”
Mumbai headquartered Hikal Limited has a 2005-2006
turnover of Rs 2417 millions with a 24 percent growth. Net profit for the year
stood at Rs 414 millions, a 21.4 percent growth from Rs 341 millions in
2004-2005. Revenues from the pharmaceutical division stood at Rs 834 millions,
growing at 68 percent while the agrochemical division had revenues of Rs 1470
millions, showing a 7 percent growth.
Hikal’s Q3 net sales
at Rs 557 Millions, declares interim dividend of 30% - January 31, 2007
Mumbai, January 30, 2007: Hikal Limited, the preferred long-term outsourcing partner for leading global life sciences companies, posted net sales of Rs. 557 Millions as against Rs 550 Millions of the corresponding quarter of same period, for the third quarter ended December 31, 2006.
EBIDTA of the company stood at Rs 162 Millions, which was similar to the corresponding quarter, same period and the net profit after tax for the quarter stood at Rs 91 Millions as compared to Rs.99 Millions in the corresponding quarter of previous year. With improved volumes and operational efficiency, operating margin of the company (OPM) for the third quarter stood at 29.2 % as compared to 26.7 % for second quarter of the same year.
The Board of Directors has recommended an interim dividend of 30% i.e. Rs.3 per share (previous year 30%) to its equity share holders.
Commenting on the performance result, Mr. Jai Hiremath, Vice Chairman and Managing Director, Hikal Limited said, “Our strategy of focusing on Pharma is bearing fruit with improved margins.”
For further information contact:
Sangeeta Salian
Hikal Limited
91-22-27574276/27565735
Nimisha Bhargava
CMCG India
91-22- 24450991/9820968866
nimisha.bhargava@cmcgindia.com
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 records 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.42.87 |
|
UK Pound |
1 |
Rs.84.79 |
|
Euro |
1 |
Rs.57.56 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
66 |
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|