MIRA
INFORM REPORT
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Report Date : |
17.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
KOPRAN LIMITED |
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Registered Office : |
Parijat House, 1076, Dr. E. Moses Road, World, Mumbai-400018 |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
26.04.1958 |
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Com. Reg. No.: |
011078 |
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CIN No.: [Company
Identification No.] |
L24230MH1958PLC011078 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMK01878C |
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Legal Form : |
A Public Limited Liability Company. The company's shares are listed on the Stock Exchanges |
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Line of Business : |
Manufacturing and marketing of Bulk Drugs, Tablets & Capsules and Liquids. |
RATING &
COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average/normal. |
Small |
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Maximum Credit Limit : |
USD 5000000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow and delayed |
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Litigation : |
Clear |
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Comments : |
Subjects is an established company having moderate track. Financial position is moderate. The company continue to incur losses. Its payments are reported as slow and delayed. The company faces liquidity problem. It can be considered for any business dealings at usual trade terms and condition with some caution. |
LOCATIONS
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Registered Office : |
Parijat House, 1076, Dr. E. Moses Road, World, Mumbai-400018 India |
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Tel. No.: |
91-22-24964480-85 |
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Fax No.: |
91-22-24950363 |
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E-Mail : |
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Website : |
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Research Laboratories : |
D/28, T.T.C. Industrial Area, Village Bhansari, Near Turbhe Telephone Exchange, MIDC, Navi Mumbai - 400 705, Maharashtra, INDIA Tel. No. 91-22-7630474 / 7680674 Fax No. 91-22-767886 |
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Factory 1 : |
Finished
Dosage Forms At : KHOPOLI
Village Savroli, Taluka Khalapur, Khopoli, Dist. Raigad, Maharashtra Tel. No. 91-2192-274025/274030 Fax No. 91-2192-274031 Speciality Bulk At :
MAHAD
K-4, Additional MIDC, Village Birwadi, Mahad - 403 201 Dist. Raigad, Maharashtra Tel. No. 91-2145-232631 / 232633 Fax No. 91-2145-232332 |
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Overseas Office : |
HONG
KONG
Kopran (H K) Limited 330, Peninsula Centre, 67, Mody Road, Tsim Sha Tsui East Kowloon, Hong Kong Tel. No. 00852-272 4063 / 272 35541 Fax No. 00852-272 35542 LONDON
Kopran (International) Limited 024 Servicestation, 130 Hale Lane, Edgware, Middx HA8 9RZ, London, U.K. Tel. No. 0044-181-906 1555 Fax No. 0044-181-906 1155 |
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Branches : |
Kampala Pharmaceutical Industries (1996) Ltd. Globalpharma Co. LCC, Dubai, UAE Manufacturing
Facility:
Fax:
9714 8851233 E-mail:
info@globalpharmadubai.com
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DIRECTORS
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Name : |
Mr. Susheel G Somani |
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Designation : |
Chairman |
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Name : |
Mr. Surendra Somani |
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Designation : |
Executive, Vice-Chairman |
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Name : |
Mr. Rajendra Somani |
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Designation : |
Director (Resigned w. e. f . 27 November, 2004) |
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Name : |
Mr. S. J. Parekh |
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Designation : |
Chairman |
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Name : |
Dr. Suresh K. Parikh |
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Designation : |
Director |
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Name : |
Dr. A. C. Shah |
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Designation : |
Director |
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Name : |
Mr. Sunil S. Parekh |
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Designation : |
Director |
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Name : |
Mr. H. P. Vyas |
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Designation : |
Director |
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Name : |
Mr. Narasimha Sahu |
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Designation : |
Nominee Director- UTI |
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Name : |
Mr. Tapan Ray |
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Designation : |
Managing Director (Resigned w. e. f. 31st October, 2004) |
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Name : |
Mr. Narayan Parekh |
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Designation : |
General Manager
(Finance)and comapny Secretary |
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Name : |
Mr. Robert Dean Petty |
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Designation : |
Director |
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Name : |
Mr. Bruno Beuque |
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Designation : |
Director |
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Name : |
Mr. C. L. Jain |
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Designation : |
Director |
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Name : |
Mr. Adarsh Somani |
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Designation : |
Whole Time Director |
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KEY EXECUTIVES
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Name : |
Mr. Surendra Somani |
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Designation : |
Chief Executive Officer |
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Name : |
Mr. K. M. Shivani |
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Designation : |
Sr. Vice president and Chief Scientific Officer |
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Name : |
Dr. A. V. Prabhu |
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Designation : |
Sr. Vice president and Chief Scientific Officer |
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Name : |
Mr. Sanjiv Bhushan |
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Designation : |
Sr. Vice President – New Business Development |
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Name : |
Mr. Jose Tharakan |
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Designation : |
Vice President an Chief Personnel Officer |
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Name : |
Mr. S. K. Kedia |
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Designation : |
Vice President and chief Financial Officer |
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Name : |
Dr. A. K. Purohit |
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Designation : |
Vice President- Technical (Bulk Drugs) |
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Name : |
Mr. Dayanand Saraswati |
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Designation : |
Vice President- Marketing and Sales |
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Name : |
Mr. Harshad Shah |
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Designation : |
Chief Financial Officer |
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Name : |
Mr. Sumeet S. Maheshwari |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of Holding |
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Indian Promoters |
9281256 |
34.57 |
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Banks |
845 |
0.00 |
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Financial
Institutions |
1339693 |
4.99 |
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Mutual Funds |
1250600 |
4.66 |
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FII/NRI/OCB's |
587953 |
2.19 |
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Domestic
Companies |
2589060 |
9.64 |
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Resident
Individuals |
11334873 |
42.21 |
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Others |
466104 |
1.74 |
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Total |
26850384 |
100.00 % |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and marketing of Bulk Drugs, Tablets & Capsules and Liquids. |
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Products : |
Item Code No. (ITC Code) 294150-00 Product Description Ceftriaxone Sodium
Sterile Item Code No. (ITC Code) 294150-00 Product Description Roxithromycin Item Code No. (ITC Code) 294200-18 Product Description
Omeprazole Item Code No. (ITC Code) 294200-11 Product Description Cefotaxime Sodium Sterile |
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Brand Names : |
"ATEN-D", "FINTRIDE", "ZIFLAM", "CHOLESTATE", "VENT", "KLODIP", "LOKIT", "TINI", "SMYLE", "TRASIC SR", "KOCEF", "SPARCIN" ETC. |
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PRODUCTION STATUS
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Bulk Durg |
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Formualtions |
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Particulars |
Unit |
Installed
Capacity |
Actual
Production |
Unit |
Installed
Capacity |
Actual
Production |
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KHOPOLJ |
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Tablets & Capsules |
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No. in lacs |
10800 |
4670.17 |
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Liquids |
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Ltrs in lacs |
12.00 |
1042 |
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MAHAD |
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Bulk drug |
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Bulk Drug |
Tons |
495.00 |
364.740 |
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GENERAL
INFORMATION
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Suppliers : |
Ø Saroj Print N. Pack Ø Saroj Print Arts Ø Saroj Press Private Limited Ø Super Fibers Ø Pitti Enterprises Ø Shreenath Packing Ø Silicon Products Private Associate Ø S.R. Chemicals Ø S.S. Pharmachem |
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No. of Employees : |
1400 |
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Bankers : |
˜ State Bank of India, Mumbai, Maharashtra ˜ ING Vysya Bank Limited, Mumbai, Maharashtra ˜ Bank of Bahrain & Kuwait B.S.C., Mumbai, Maharashtra ˜ The Federal Bank Limited, Mumbai, Maharashtra ˜ Centurion Bank Limited ˜ Canara Bank ˜ UTI Bank Limited |
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Facilities : |
SECURED LOANS :- DEBENTURES
(Rs. in millions)
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Banking
Relations : |
--- |
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Auditors : |
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Name : |
Ø Kahndelwal Jain and Company Chartered Accountant Ø M/s Batliboi & Purohit Chartered Accountant |
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Associates : |
˜
United Shippers Ltd. ˜
Parijat Enterprises ˜
Oriental Containers Limited ˜
Shinrai Toyota ˜
Excel Glasses Limited ˜
Claridge Moulded Fibre Limited ˜
Pharmaceutical Business Group (I) Ltd |
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Subsidiaries : |
˜
Kopran Research Laboratories Ltd. ˜ Kopran (H.K.) Ltd. |
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Joint Venture : |
˜
Kampala Pharmaceutical Industries (1996) Ltd., Plot M 444, Stretcher Road, Ntinda, Kampala, Uganda Tel. No. + 256 41 222721 / 285645 Fax No. +256 41 220129 E Mail : kpi@africaonline.com ˜
Globalpharma Co. LLC, P. O. Box 28171, Dubai, UAE Tel. No. 009714 3379333 Fax No. 009714 33465547 Manufacturing facility Tel. No. 009714 8810222 Fax No. 009714 8810233 E Mail : info@globalpharmadubai.com Website : http://www.globalpharmadubai.com |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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41000000 |
Equity Shares |
Rs. 10 each |
Rs. 410.000 millions |
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24000000 |
Non-Convertible Cumulative
Redeemable Preference Shares |
Rs. 10 each |
Rs. 240.000 millions |
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Total |
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Rs. 650.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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Issued Capital |
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26850384 |
Equity Shares |
Rs. 10 each |
Rs. 268.500 millions |
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13580000 |
Non-Convertible
Cumulative Redeemable
Preference Shares |
Rs. 10 each |
Rs. 135.800 millions |
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Subscribed & Paid-up Capital |
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26850384 |
Equity Shares |
Rs. 10 each |
Rs.268.503 millions |
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13580000 |
Non-Convertible
Cumulative Redeemable
Preference Shares |
Rs.10 each |
Rs.135.800 |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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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 |
404.267 |
390.928 |
294.300 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
680.866 |
645.760 |
1503.100 |
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4] Convertible Warrants |
178.574 |
0.000 |
0.000 |
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NETWORTH |
1263.707 |
1036.688 |
1797.400 |
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LOAN FUNDS |
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1] Secured Loans |
2036.522 |
2184.020 |
1836.000 |
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2] Unsecured Loans |
97.212 |
44.788 |
159.900 |
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TOTAL BORROWING |
2133.734 |
2228.808 |
1995.900 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
3397.441 |
3265.496 |
3793.300 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
2232.844 |
2283.836 |
1684.800 |
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Capital work-in-progress |
31.905 |
1.983 |
0.800 |
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INVESTMENT |
225.247 |
226.247 |
254.600 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
362.979
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401.552 |
393.400 |
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Sundry Debtors |
496.068
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413.947 |
690.800 |
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Cash & Bank Balances |
40.678
|
34.960 |
31.600 |
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Other Current Assets |
38.154
|
37.865 |
0.000 |
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Loans & Advances |
180.140
|
118.061 |
1209.700 |
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Loans with Subsidiary Companies |
593.067
|
588.794 |
0.000 |
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Total
Current Assets |
1711.086
|
1595.179 |
2325.500 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
786.653
|
821.039 |
646.100 |
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Provisions |
16.988
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20.710 |
20.100 |
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Total
Current Liabilities |
803.641
|
841.749 |
666.200 |
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Net Current Assets |
907.445
|
753.430 |
1659.300 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
193.800 |
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TOTAL |
3397.441 |
3265.496 |
3793.300 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
1283.218 |
1017.145 |
1771.800 |
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Other Income |
144.882 |
17.639 |
0.000 |
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Total Income |
1428.100 |
1034.784 |
1771.800 |
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Profit/(Loss) Before Tax |
(50.595) |
(363.924) |
6.900 |
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Provision for Taxation |
0.000 |
0.000 |
28.500 |
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Profit/(Loss) After Tax |
(50.595) |
(363.924) |
(21.600) |
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Export Value |
666.166 |
307.346 |
659.195 |
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Import Value |
160.244 |
135.868 |
81.500 |
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Expenditures : |
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Cost of Goods Sold |
0.000 |
0.000 |
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Manufacturing Expenses |
0.000 |
0.000 |
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Administrative Expenses |
0.000 |
0.000 |
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Raw Material Consumed |
908.887 |
695.580 |
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Purchases made for re-sale |
0.000 |
0.000 |
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Consumption of stores and spares parts |
0.000 |
0.000 |
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Increase/(Decrease) in Finished Goods |
0.000 |
0.000 |
71820.685 |
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Salaries, Wages, Bonus, etc. |
104.865 |
136.589 |
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Managerial Remuneration |
0.000 |
0.000 |
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Payment to Auditors |
0.000 |
0.000 |
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Interest |
0.000 |
0.000 |
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Insurance Expenses |
0.000 |
0.000 |
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Power & Fuel |
0.000 |
0.000 |
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Depreciation & Amortization |
0.000 |
0.000 |
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Other Expenditure |
252.428 |
255.016 |
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Total Expenditure |
1266.18 |
1087.185 |
71820.685 |
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QUARTERLY /
SUMMARISED RESULTS
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PARTICULARS |
30.06.2006 |
30.09.2006 |
31.12.2006 |
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Total Expenditure |
290.700 |
323.800 |
269.700 |
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Operating Profit |
20.800 |
-03.500 |
-34.400 |
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Interese |
-14.400 |
16.500 |
27.400 |
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Gross Profit |
35.200 |
-20.000 |
-61.800 |
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Depreciation |
34.900 |
35.100 |
35.500 |
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Tax |
00.100 |
00.300 |
01.000 |
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Reported PAT |
00.200 |
-55.400 |
-98.300 |
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200606 Quarter 1 --------------- Notes Expenditure Includes
(Increase)/Decrease in stock in Trade Rs 5.90 million Material Consumed Rs
199.90 million Employee Cost Rs 28.90 million Operational & Administrative
Expenses Rs 55.90 million Tax Indicates Provision for Fringe benefit tax Status
of Investor Complaints for the quarter ended June 30, 2006 Complaints Pending
at the beginning of the quarter Nil Complaints Received during the quarter 05
Complaints disposed off during the quarter 05 Complaints unresolved at the end
of the quarter Nil 1. The above results reviewed by the Audit Committee were
taken on record by the Board of Directors of the Company at its meeting held on
July 31, 2006. 2. Previous period / year figures have been regrouped, wherever
necessary.
200609 Quarter 2 --------------- Notes Tax Indicates Provision for
Fringe benefit tax Status of Investor Complaints for the quarter ended
September 30, 2006 Complaints Pending at the beginning of the quarter Nil
Complaints Received during the quarter 31 Complaints disposed off during the
quarter 31 Complaints unresolved at the end of the quarter Nil 1. The above
results were reviewed by the Audit Committee, taken on record by the Board of
Directors of the Company at its meeting held on October 30, 2006. 2. Previous
period / year figures have been regrouped, wherever necessary. 3. Other income
during the half year September 30, 2005, includes Rs 100 million pertaining to
assignment of brands and previous period results includes divested Domestic
Formulation business. Interest for the half year ended September 30, 2006
including write back Rs 30.40 million on account of settlement. Accordingly to
that extent, the results are not strictly comparable with corresponding period.
200612 Quarter 3 --------------- Notes: 1. The above results have
been taken on record by the Board of Directors of the Company in its meeting
held on 31.12.2007. 2. Previous period/year figures have been regrouped,
wherever necesary. 3. During the current quarter, New Product Development and
Other activities in the Bulk Drug Plant for the Regulated Markets (Including
US) having Adversely affected the performance of the company. 4. There was no
shareholder's complaint pending as at the beginning of the quarter. The company
has received 30 complaints from the shareholders during the quarter and 28
complaints were disposed off during the quarter. There was 2 complaints pending
at the end of the quarter. 5. Other Income during the nine months ended
31.12.2005 includes Rs. 1000 lacs pertaining to assingnment of brands and
previous period result includes Divested Domestic Formulation Business.
Interest for the Nine months ended 31.12.2006 includes write back Rs. 304 lacs
on account of ettlement. Accordingly, to tyhat extant, the results are not
strictly comparable with corresponding period.
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
2.06 |
1.49 |
1.11 |
|
Long Term Debt-Equity Ratio |
1.63 |
1.07 |
0.72 |
|
Current Ratio |
1.22 |
1.46 |
1.71 |
|
TURNOVER RATIOS |
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|
Fixed Assets |
0.44 |
0.41 |
0.64 |
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Inventory |
3.54 |
2.77 |
3.50 |
|
Debtors |
2.97 |
1.99 |
2.27 |
|
Interest Cover Ratio |
-0.66 |
-0.76 |
1.05 |
|
Operating Profit Margin(%) |
5.73 |
-4.61 |
20.24 |
|
Profit Before Interest And Tax Margin(%) |
-4.43 |
-14.25 |
13.24 |
|
Cash Profit Margin(%) |
-1.01 |
-23.43 |
5.67 |
|
Adjusted Net Profit Margin(%) |
-11.16 |
-33.07 |
-1.33 |
|
Return On Capital Employed(%) |
0.000 |
0.000 |
0.00 |
|
Return On Net Worth(%) |
0.000 |
0.000 |
0.00 |
STOCK PRICES
|
Face Value |
Rs.10/- |
|
High |
Rs.25.20/- |
|
Low |
Rs.24.85/- |
LOCAL AGENCY
FURTHER INFORMATION
Fixed
Assets :-
Ø
Goodwill
Ø
Beand / Trade Mark / Patents
Ø
Land
Ø
Buildings
Ø
Plant & Machinery
Ø
Factory Equipment &
Ø
Electric Installation
Ø
Furniture and Fixtures
Ø
Tube Well
Ø
Office Equipments
Ø
Computers
Ø
Vehicles
OPERATIONS:
During the year under review, the Company has achieved a total turnover
of Rs.1352.7 Millions as compared to
Rs.1100.3 Millions in the previous year. This growth has been achieved despite
discontinuation of the domestic formulations business effective from July
2005.
The Company made a cash profits of Rs. 86.8 Millions against the loss of
Rs. 257.8 Millions in the previous year. The turnaround is due to improved
performance from export of formulations and reduced interest costs arising from
assignment of debts to Clearwater Capital Partners (India) Private Limited.
Formulations:
The Company has exited the Domestic Formulations business and is
now focusing on the International market. The exports of Formulations grew by
300% from Rs.90.000 Millions to Rs.
270.000 Millions during the year
2005-06. The major growth has come from the Regulated markets like UK and South
Africa.
Further, the Company signed a deal with an UK based Company to develop
Dossiers and register seven products in the UK/European market.
Active Pharmaceutical
Ingredients (APIs):
During the year under review, the Company has doubled the
capacity of its various bulk products. Simultaneously, the plant was upgraded
to match US / FDA norms. It has tied up for marketing of Sterile Cepholosporins
with an International Company.
Smyle:
The Smyle range of products under the Smyle umbrella brand caters
to various segments including Cough & Cold, Oral Care, and Baby & Skin
Care. New products are being launched in Pain Management.
Smyle products are now being exported to African and South East Asian
Countries.
Kopran Research Laboratories
Limited ('KRLL'):
The Research focus is mainly on Process Patents and Non
Infringing Process Development for various bulks. Process Patents have been
filed for Clarithromycin, Azithromycin and Atorvastatin.
The two New Chemical Entities have been offered for
licencing.
Your Directors have passed the Resolution to initiate the process for
merging KRLL with the Company.
Globalpharma LLC - Dubai:
During the year 2005, the turnover of Globalpharma
grew by 126% (AED 34,788,518 as compared to AED 15,334,254 as at December 31,
2004). Several new products are being developed by Kopran to increase the
product range.
The new product registrations would help Globalpharma to sustained growth and long-term
profitability.
Kampala Pharmaceutical
Industries - Uganda:
The Company's performance in 2005 improved with sales going
up by 26.9% (Shilling 11,603,053k as compared to Shilling 9,146,596k as at
December 31, 2004) and profits growing by 87.71% (Shilling 512,827k as compared
to Shilling 273,222k as at December 31, 2004).
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT:
INDUSTRIAL OVERVIEW:
Global Pharmaceutical Industry:
Ø The Global Pharmaceutical Industry is growing
steadily with significant expansion of the Generic markets.
Ø Patents of different products commanding $ 60
billion annual sales will expire in the next six years.
Ø Manufacture
of bulks and formulations is shifting to India and China.
Ø Regulatory
norms are becoming more stringent.
Ø The competition is intense and integrated
companies manufacturing both the bulks and formulations would have along term
advantage.
Indian
Pharmaceutical Industry:
Ø The
Indian Pharmaceutical Industry is witnessing a major challenge with the new
proposed Drug Price Control Order.
Ø The imposition of excise duty on the Maximum
Retail Price has forced Companies to manufacture in tax free States.
Ø A large basket of products are going off patent,
providing an opportunity to the Indian Industry to increase their share in the
Generics market.
Ø Low
cost research and high quality research is attracting Global Companies to set
up base in India.
Future Strategy:
The Board of Directors of the Company has worked out a
strategy for its future business growth, as follows:
Active Pharmaceutical Ingredients
(APIs)
Ø Focus
on Regulated Markets.-
Ø Expansion of capacity leading to economies of
scale.
Ø Launch
of new high value products.
Ø Integrating
bulks into formulations.
Formulations:
Ø Develop
new dossiers for South Africa, UK, and Europe.
Ø Tie-up
with Partners for the US market.
Ø Increase volumes through competitive edge of
own bulks produced.
Ø Move
up the value chain through high value products.
OTC Products:
Ø Launch
new products in new segments like Pain Management.
Ø Increase
market penetration through tie-up with a focused distribution Company.
Ø Research
& Development:
Ø Develop
new APIs and Dosage Forms.
Ø Licence
KNC - 6 and KNC - 1206.
Ø Develop
new products from the patented platform technology.
Cost of Optimization:
Ø Increase capacity utilization to get
economies of scale.
Ø Reduce
material cost through efficient utilization of Working Capital and Supply Chain
Management system
Ø Reduce energy cost through rationalization in
manufacturing lines.
Productivity Improvement:
Ø Adoption
of more intensive information technology to improve productivity.
Ø Reward
and recognition through performance linked appraisal system
Ø In-house training for competency
improvement.
Financial Performance and
Analysis:
During the year under review, the total turnover stands at
Rs. 1352.7 Millions as compared to Rs. 1100.3 Millions in the previous year
showing a growth of 23%. The profit before depreciation and tax (EBIDTA) for
the year is Rs. 161.9 millions as compared to loss of Rs. 52.4 Millions, which
as a percentage to turnover represents 12% (previous year - 4.8%) showing a
turnaround.
History
The company was incorporated on 26th April, 1958 at Mumbai in Maharashtra as a Private Limited Liability Company under the name & style of “KOPRAN CHEMICAL COMPANY PRIVATE LIMITED” having Company Registration Number 11078.
The company made losses and virtually closed down between 1974 and 1980. It was then taken over by Parijat Enterprises Group. All accumulated losses were wiped out by 1983 and the company commenced manufacturing of bulk drugs.
Subject became public limited liability company in 1984 and later changed its name to present name.
Subject was promoted by the Somani Group and is controlled by Parijat Enterprises. The company came out with a public issue at a premium, in November, 1992, to finance its backward integration project to produce drug intermediates for semi-synthetic drugs, and also to expand its antibiotic facility.
The company's maiden public issue in 1992 raised Rs.144 millions.
Subject is one of the five promoters of Pharmaceuticals Business Group, which took over the ailing Gujarat Themic Biosyn in 1992-93.
New basic research centre has been set up at Navi Mumbai.
The US $ 300 bn global pharma industry was research driven. New drug R & D cost being prohibitive limited to pharma Multi National Company's in developed nations where product patents enforced. High prices of under patent drugs caused a shift to generics, especially in USA. Now, under WTO, India has to enforce product patents from year 2005 AD.
In the domestic bulk drugs market, low entry barriers resulted in over capacity and price wars. So major players focussed on formulations, where brand image and distribution network act as entry barriers. Most players increased their overseas marketing and manufacturing network to enhance exports.
The company borne the brunt of price decline in Pen-G and Amoxycilliin, despite economies of scale and backward integration. Though it has increased its formulations / OTC portfolio, it remained overly dependent on bulk drugs.
The company's bulk drug plant has been approved by the US FDA and the U.K. regulatory authorities. In 1995 the company was awarded the Quality Excellence award by the Indian Drug Manufacturers Association. The company's high growth rate in exports has been recognised by a number of awards from CHEMEXCIL and the Ministry of Commerce.
The company launched new products like AZ-1 Caps, Klodip Tabs, Moclox Kid Tabs, Amyn Kid Tabs, Tini NF, Amyn Caps and Amyn Dry Syrup. The company entered into a joint venture with Industrial Promotion Services Limited to take over a running unit viz Kampala Pharmaceuticals Industries Limited in Uganda.
The company has been ranked as amongst the top few growing companies in India (ORG Marg-June 2000). It closed down its manufacturing facility at Saki Naka, Andheri, Mumbai. Globalpharma, a joint venture with Dubai Investments Corporation is expected to start commercial production in the first quarter of 2002.
In February, 2001, the company tied up with E-Merck for co-marketing a new anti-inflammatory drug, Rofrcoxib, in India. Rofecoxib is one of the fast-moving non-steroid anti-inflammatory drugs (NSAID), launched a year ago in the international market. The company also launched Cholestat (Atorvastatin - a cholesterol reducer) and further gave co-marketing rights for Atorvastatin to E-Marck. The company is planning to enter Diabetes, Urology and Neuropsychiatry drugs in future.
Kopran was promoted by the Somani group and is controlled by
Parijat Enterprises. The company came out with a public issue at a premium, in
Nov.'92, to finance its backward integration project to produce drug
intermediates for semi-synthetic drugs, and also to expand its antibiotic
facility.
Kopran manufactures pharmaceutical finished dosage forms and bulk drugs
and distributes electronic equipment. It manufactures semi-synthetic penicillin
and is among the world's highest producers in amoxycillin. Kopran also makes
penicillin-G acylase, an enzyme made through fermentation. It has technical
collaborations with Gesellschaft Fur Biotechnologische, Germany; Yuhan
Corporation, South Korea; Ciba Corning Diagnostic, US; and Adac Laboratories,
US.
Kopran's bulk drug plant has been approved by the US FDA and the UK
regulatory authorities. In 1995, the company was awarded the Quality Excellence
award by the Indian Drug Manufacturers Association. Kopran's high growth rate
in exports has been recognised by a number of awards from CHEMEXCIL and the
Ministry of Commerce.
The company launched new products like AZ-1 Caps, Klodip Tabs, Moclox Kid
Tabs, Amyn Kid Tabs, Tini-NF, Amyn Caps and Amyn Dry Syrup. Kopran entered into
a joint venture with M/s Industrial Promotion Services Ltd to take over a
running unit viz Kampala Pharmaceuticals Industries Ltd in Uganda.
The company has been ranked as amongst the top few fastest growing
companies in India(ORG Marg-June 2000). It closed down its manufacturing
facility at Saki Naka, Andheri, Bombay. Globalpharma, a joint venture with
Dubai Investments Corporation started commercial production in the first
quarter of 2002.
The company has increased its installed capacity of Liquids by 3.00 lakhs
of Litres during 2001 and consequent of this capacity expansion the total
installed capacity has gone up to 12.00 lakhs of Litres.
The company has also increased its installed capacity of Tablets & Capsules
by 270 crores(Nos) and the total capacity has gone up to 1080
crores(Nos).
In Feb. 2001, Kopran tied up with E-Merck for co-marketing a new
anti-inflammatory drug, Rofecoxib, in India. Rofecoxib is one of the
fast-moving non-steroid anti-inflammatory drugs (NSAID),has been launched in
the international market. The Company also launched Cholestat (Atorvastatin - a
cholesterol reducer) and further gave co-marketing rights for Atorvastatin to
E-Merck (India).
The company had launched new products in therapeutic groups like
Asthma,Cardiology,Diabetes and Lifestyle products during 2003.The company has
obtained approval from European Directorate for Quality of Medicines(EDQM) in
September 2003. Upgradation of Formulation Manufacturing facility took place to
meet with the latest International Regulatory Norms.The United Kingdom
Medicines and Healthcare Products Regulatory Agency(UK MHRA) is expected to
inspect the facilities in the first quarter of 2004.
Kopran lines up 12 drug launches
Ref: Abstract from the Companies section of 'Business
Standard' newspaper
dated: Friday, May 31, 2002
______________________________________________________________________
Our Corporate
Bureau
Mumbai, 30 May
Kopran is launching 12 new brands
in asthma, cardiology, gastro-enterology and diabetelogy. This is mainly aimed
at multiplying its sales and develop brand equity from existing and new
products.
Kopran is planning to grow
its formulation sales to Rs 1000.000 Millions in two years.
In the anti-asthma market,
Kopran has a large range of products including oral tablets and liquid, metered
dose inhalers and dry powder inhalers under the umbrella brand Vent.
The company, which had
sales of Rs 150.000 Millions during the previous year from anti-asthma
products, is expected to jump to Rs 250.000 Millions with the launch of new
anti-asthma products, the company said in a press release.
The company is launching
Ventair - montelukast - a new drug in the treatment of Asthma, bridging the gap
in present asthma treatment, both children and adult patients.
Ventair will be marketed in
three doses. Kopran is the fourth company to unveil Montelukast.
Simultaneously, Kopran is
also launching a new dry powder inhaler and metered dose inhaler - Ventipra - a
combination of Salbutamol and Ipratropium bromide. At present, only three
companies in the country - Glaxo, Cipla and Kopran market dry powder inhalation
systems.
Kopran has reformulated its
brand of Amlodipine - Klodip - introducing virtually impurity free amlodipine
tablets in a new patient friendly pack. The Amlodipine market is of Rs 116
crore growing at 15 per cent.
News Updates
______________________________________________________________________
Kopran to undertake major Financial and
Business Restructuring
Kopran Ltd. has undertaken a financial and
business restructuring whereby it intends to focus on the International
markets, which are mainly regulated for bulk drugs and formulations.
As of January 2005, the new WTO patent regulations may change
the business dynamics of the domestic pharmaceutical Industry. However, the international generic market
presents
a huge business opportunity, as billions of dollars of drugs go off patent over
the next few years. Accordingly, Kopran plans to shift its historical emphasis
from the domestic business
to the international. To accomplish
this, it plans to enter into a strategic alliances or assignments of its
branded pharmaceutical formulations. In this respect necessary discussions are
in progress with various companies.
This new business strategy should improve the overall financial condition
of the company,
and provide the resources to reduce debt and working capital.
Another large market opportunity for Kopran is the herbal
health market. The estimated size of
this fast growing market is 60 billion dollars. To exploit the potential of this domestic and international
market, Kopran intends to merge with Kopran Pharmaceuticals Ltd which is the
company marketing the SMYLE brand. Effective 1st March'05, Kopran intends to
have a large range of OTC products marketed under the SMYLE brand. While continuing to market to the domestic
market, there will be increasing focus in marketing SMYLE branded products to
the international market.
The company had a Corporate Debt Restructuring, and
proposes a further restructuring with its lenders, whereby the interest burden
would be reduced substantially. This would include an assignment of a
major part of its debt through a one-time settlement with most of the existing
lenders.
The company has recently received a UK MHRA approval for
both of its formulations plants at Khopoli and shall be marketing its products
in the UK and Europe. It further
intends to obtain an US FDA approval within the next two years.
The bulk facilities located in Mahad are already approved
by the European Directorate for Quality of Medicines (EDQM). An upgrade and expansion plan has been
initiated, whereby
the bulk products would be exported, thereby facilitating a US FDA approval.
Kopran manufactures a large range of antibiotics including
sterile Cephalosporin’s and Erythromycin Derivatives. Enhancement of its antibiotic manufacturing capacity should lead
to economies of scale. Further Kopran
shall expand capacity for its cardiovascular range of products, which include
Atenolol, Atorvastatin and Amlodipine.
It proposes to further develop and manufacture new products in the
Cardiology range like Lisinopril, Ramiperil and Ezetimibe.
Kopran's strategy is to develop Non-Infringing Processes as
well as its own process patents, and then tie up with marketing companies in
the US and European market through its subsidiary Kopran Research Laboratories.
It has already filed process patents for Amlodipine, Lansoprazole and
Sildenafil Citrate.
Further, Kopran Research intends to licence out its molecules KNC-6 an anti-ulcerant and KNC-1206 a bowel regulator to other pharmaceutical companies and also seek collaborationfor developing new molecules for its platform technology. The future strategy of focussing on the regulated markets such as Europe and the U.S, is expected to produce a turn around in the company's financials during the coming year
Parijat Enterprises
Promoted
by the Parijat
Enterprises, Kopran is currently an integrated health
care company.
Kopran
has used research-based technology to contribute towards total health-care.
Ø From diagnostics to treatment
Ø From Active Pharmaceutical
Ingredients to Finished Dosage Forms
Ø From bio-technology to sophisticated
Medical electronic equipments maintaining quality on par with the best in
the world, and thereby vying for brand equity in the global context.
The
company started modestly as a Semi Synthetic Penicillin (SSP) player and
expanded to becomes the largest SSP Player in India with an annual SSP facility
of over 1200 tones per annum.
Subsequently
the SSP business was hived off into a separate Company in a joint venture with
Synpac Pharmaceuticals Ltd, UK.
Its
future strategy is to focus on :
Brand Equity Development
Research for New Chemical Entities
Globalise its operations thus making Kopran a truly International
Pharmaceutical Company.
Group Companies
Parijat
Enterprises
The Somani, Bangur Association started with Cement, Paper and Textiles.
The Somani family further ventured into Printing, Chemicals, Paper,
Ø
Pharmaceuticals,
Shipping, Metal Packaging and Glass Bottles.
Ø
In
1985, Parijat Enterprises emerged as a group entity.
ORIENTAL CONTAINERS LIMITED
Ø
Turnover
Rs.150 crores (US$ 33 Million) as on June 2004.
Ø
Largest Metal Packaging Co. in India
Ø
Unique patented products – GLOSEAL.
Ø
Petrochemicals – N.Pentane.
UNITED SHIPPERS LIMITED
Ø
Turnover
Rs.400 crores (US$ 89 Million).
Ø
Largest fleet of Tugs and Barges around Jamnagar Port.
Ø
Entry
into material handling with own Jetty at Navlaki.
SHINRAI TOYOTA:
Ø
Turnover
Rs.170 crores (US$ 37 Million).
Ø
Shinrai
Toyota, Distributors for Toyota, Distributors for
Toyota Cars in Mumbai.
Ø
TKML is a joint venture of M/s Toyota Motor
Corporation (TMC)
Japan and Kirloskar Group.
EXCEL GLASSES LIMITED
Ø
Turnover
Rs.75 crores (US$ 16 Million).
Ø
Largest Glass bottle manufacturing company in
South India.
Ø
Catering to Liquor, Consumer Goods and
Pharmaceutical Industry
CLARIDGE MOULDED FIBRE LIMITED
Ø
Manufacturer
of Pulp/Paper.
Ø
Trays
for Eggs and Apples
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.41.89 |
|
UK Pound |
1 |
Rs.84.17 |
|
Euro |
1 |
Rs.56.93 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
2 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
2 |
|
--CREDIT LINES |
1~10 |
4 |
|
--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 |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
33 |
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 |
|