MIRA INFORM REPORT
|
Report Date : |
07.08.2007 |
IDENTIFICATION DETAILS
|
Name : |
LUPIN LIMITED |
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Formerly known as : |
LUPIN LABOARATORIES LIMITED |
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Registered Office : |
159, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
11.03.1983 |
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Com. Reg. No.: |
11-29442 |
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CIN NO.: |
U24100MH1983PLC029442 |
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TAN No.: (Tax Deduction & Collection Account
No.) |
MUML04496C |
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PAN No.: (Permanent Account No.) |
AAACL1069K |
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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 : |
Manufacturers of Bulk Drugs and
Formulations. |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa |
RATING
|
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
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Maximum Credit Limit : |
USD 35000000 |
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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 company
having satisfactory track. Available
information indicates high financial responsibility of the company. The
company’s financial position is satisfactory. Payments are correct and as per
commitments. The company is doing well. It can be
considered good for any normal business dealings. It can be regarded as a promising business
partner in a medium to long-run. |
LOCATIONS
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Registered Office : |
159, |
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Tel. No.: |
91-22-26931001 / 26526391 / 26528311 /
56402222 / 66402323 |
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Fax No.: |
91-22-26540484 / 26114008 / 56402299 /
26528806 |
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E-Mail : |
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Website : |
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Plants : |
Located at: Ankleshwar, ·
T-142 MIDC Industrial
Estate, Tarapur Industrial Area, Boisar, District Thane, ·
198-202, New
Industrial Area II, Mandideep, District Raisen, Madhya Pradesh – 462 046 ·
211, New Industrial
Area II, Mandideep, District Raisen, Madhya Pradesh – 462 024 ·
124, GIDC Industrial
Estate, Ankleshwar, ·
A28/1, MIDC Area,
Chikalthana, ·
B-15 Phase I-A Verna
Industiral Area, Verma Salcette, |
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Corporate Office : |
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Tel. No.: |
91-22-66402222 |
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Fax No.: |
91-22-66402130 |
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R & D Park : |
Survey No. 46 A/47A, |
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Overseas Offices : |
Located at |
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Branches : |
Located at: Investor Services
Cell 159, Tel. No. 91-22-26931001 / 26526391 /
26528311 Fax. No. 91-22-26540484 / 26114008 Survey No. 46/A and 47/A, |
DIRECTORS
|
Name : |
Dr. Desh Bandhu Gupta |
|
Designation : |
Chairman |
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Date of Birth/Age : |
08.02.1938 |
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Qualification : |
M.Sc. |
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Experience : |
37 years |
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Date of Appointment : |
11.07.1972 |
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Name : |
Dr. Kamal K. Sharma |
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Designation : |
Managing Director |
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Name : |
Mrs. M. D. Gupta |
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Designation : |
Executive Director |
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Date of Birth/Age : |
22.09.1943 |
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Qualification : |
B.A. |
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Experience : |
31 years |
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Date of Appointment : |
11th July, 1972 |
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Name : |
Mrs. Vinita Gupta Sharma |
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Designation : |
Executive Director |
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Date of Birth/Age : |
05.03.1968 |
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Qualification : |
Pharmacy Graduate, MBA |
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Date of Appointment : |
17.08.2001 |
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|
Name : |
Mr. P. K. Kaul |
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Designation : |
Director |
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Date of Birth/Age : |
03.07.1929 |
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Qualification : |
B.Sc., M.A. (Eco.), MS – Public
Administration. |
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Date of Appointment : |
15.02.1992 |
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Name : |
Mr. K. U. Mada |
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Designation : |
Director |
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Date of Birth/Age : |
29-12-1933 |
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Qualification : |
M.A., Ph.D. (Eco.), Financial Management Certificate
from Jamnalal Bajaj Institute of Management Studies. |
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Date of Appointment : |
27-06-2001 |
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Name : |
Dr. D. P. Sinha |
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Designation : |
Director (up to 09.05.2006) |
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Name : |
Mr. D. K. Contractor |
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Designation : |
Director |
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Name : |
Mr. M. Parameswaran |
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Designation : |
Director (UTI Nominee) |
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Name : |
Mr. P. Ojha |
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Designation : |
Director (IDBI Nominee from 20.09.2001) |
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Name : |
Mr. Marc Desaedeleer |
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Designation : |
Director |
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Name : |
Mr. Vijay Kelkar |
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Designation : |
Additional Director |
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Name : |
Mr. Sunil Nair |
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Designation : |
Director |
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Name : |
Mr. R. A. Shah |
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Designation : |
Additional Director |
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Name : |
Mr. Edward R Roberts |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Kiran N. Bade |
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Designation : |
Company Secretary |
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Name : |
Mr. Satish Khanna |
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Designation : |
Group President - API |
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Name : |
Mr. Dr. Sudershan Arora |
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Designation : |
President - NCE Research |
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Name : |
Mr. Indrajit Banerjee |
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Designation : |
President • Finance & Planning |
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Name : |
Mr. Shakti Chakraborty |
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Designation : |
President - |
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Name : |
Mr. Vinod Dhawan |
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Designation : |
President - Business Development |
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Name : |
Mr. Rajan Dutta |
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Designation : |
President - Human Resources Development |
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Name : |
Mr. Harish Narula |
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Designation : |
President - Corporate |
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Name : |
Mr. Dr. Himadri Sen |
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Designation : |
President - Pharma Research &
Regulatory Affairs |
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Name : |
Mr. Nilesh Gupta |
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Designation : |
Executive Vice President - Advanced Markets |
MAJOR SHAREHOLDERS
|
Category |
No. of Shares |
(%) of
Shares |
|
Shareholding of Promoter & Promoter Group |
|
|
|
Indian |
|
|
|
Individuals / HUF |
1645484
|
2.02 |
|
Bodies Corporate |
40373154
|
49.53
|
|
Foreign |
|
|
|
NRI / Foreign Individuals |
10320
|
0.01 |
|
Public shareholding |
|
|
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Institutions |
|
|
|
Mutual Funds / UTI |
8055126
|
9.89
|
|
Financial Institutions / Banks |
199493
|
0.25
|
|
Insurance Companies |
2097825
|
2.57
|
|
Foreign Institutional Investors |
8831920
|
10.84
|
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Non-Institutions |
|
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Bodies Corporate |
2346388
|
2.90
|
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Individuals - |
|
|
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i. Individual shareholders holding nominal share
capital upto Rs. 0.100 Million |
4196175 |
6.33
|
|
ii. Individual shareholders holding nominal share
capital in excess of Rs. 0.100 Million |
3730839 |
4.59
|
|
Any other (specify) |
|
|
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Foreign Bodies ( |
7844986
|
9.62
|
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Foreign Bodies (other) |
1013711
|
1.24
|
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Clearing Member |
143581
|
0.18 |
|
Clearing House |
4093
|
0.01 |
|
Trusts |
17012
|
0.02 |
|
Total |
80510107 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers of Bulk Drugs and
Formulations. |
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Products : |
·
Rcinex ·
AKT 4 ·
Rcin ·
Ceff ·
Odoxil ·
Optineuron ·
Lipril ·
Cetil ·
Pyzina ·
Combutol ·
AKT 3 ·
Tonact ·
Ramistar ·
Ramiastar A ·
Doxcefr ·
Valent ·
Cef 4 ·
Ceff ER ·
Novapime ·
L Cin ·
Co-Q-Dent ·
Gatispanm ·
Abel ·
Valent ·
Starcet ·
Tegaspa ·
Cluconorm SR ·
Gluconorm G1 & G2 ·
Gluconorm P15 &
P30 ·
Clopitab A ·
Cyclorin ·
Efficin ·
Praxis
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Imports from : |
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PRODUCTION STATUS
The company's production status as on 31st
March 2006 was as under:-
|
Classification |
Unit |
Installed Capacity |
Actual Production |
|
Tablets |
No. in Millions |
1570.00 |
1697.600 |
|
Liquids |
Kilo-Litres |
3216.00 |
457.900 |
|
Capsules |
No in Millions |
446.000 |
371.300 |
|
Injections: |
|
|
|
|
- Liquids |
Kilo-Litres |
42.00 |
102.200 |
|
- Vials |
No in Millions |
12.000 |
62.500 |
|
Creams & Powder |
MT |
403.000 |
325.20 |
|
Inhalers |
No. In million |
-- |
1.000 |
|
Bulkdrugs & Intermediates |
MT |
3785.700 |
3010.000 |
GENERAL INFORMATION
|
Suppliers : |
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No. of Employees : |
4000 |
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Bankers : |
·
Central Bank of Shiv Chhaya Co-operative Housing Society
Limited, ·
State Bank of ·
Bank of Foreign
Exchange Bills Department, Nariman Point, Mumbai – 400 021 ·
Citibank N.A. 293, ·
Syndicate Bank, Mumbai,
·
Punjab National Bank,
Mumbai, ·
UTI Bank Limited,
Mumbai, ·
The Federal Bank
Limited, Mumbai, ·
Dena Bank, Mumbai, ·
ABN AMRO Bank N.V. ·
ICICI Bank Limited. ·
Standard Chartered
Bank ·
The Hongkong and
Shanghai Banking Corporation Limited. |
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Facilities : |
-- |
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Banking Relations : |
Good |
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Auditors : |
Deloitte Haskins & Sells Chartered Accountants |
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Associates : |
·
Badhira Leasing &
Finance Private Limited ·
Bharat Steel
Fabrication & Engineering Works ·
Croptech Chemicals ( ·
D. B. Estate ·
D. B. Promoters ·
Enzal Chemicals ( ·
Frigid Leasing &
Finance Limited ·
Goodyear Investment
Private Limited ·
Khandelwal Estates
Private Limited ·
Lotus Corporation
(taken over by Novamed Pharmaceuticals Private Limited w.e.f. 1st
October, 2003) ·
Lovin Care Products
Private Limited ·
Lupin Human Welfare
& Research Foundation ·
Lupin International
Private Limited ·
Lupin Investment
Private Limited ·
Lupin Marketing
Private Limited ·
Lupin Performance
Chemicals Limited ·
Lupin Real Estates
Limited ·
Lupin Securities
Limited ·
Matashree Gomati Devi
Jana Seva Nidhi ·
Novamed
Pharmaceuticals Private Limtied ·
Pipleswar Holdings
Private Limited ·
Polynova Industries
Limited ·
Pranik Landmark
Associates ·
Rahas Investments
Private Limited ·
Samiksh Investment
Private Limited ·
Santosh Leasing
Private Limited ·
Synchem Chemicals (I)
Private Limited ·
Timita Leasing &
Finance Private Limited ·
Varija Leasing &
Finance Private Limited ·
Vishtosh Investments
& Finance Private Limited ·
Visiomed ( ·
Yogini Leasing &
Finance Private Limited ·
Zuari Leathers Private
Limited ·
Zyma Laboratories
Private Limited ·
Alpha Corporation ·
Apposite Trading
Company ·
·
High Tech Commercial ·
Luxury International
Private Limited ·
Wellworth Laboratories |
|
|
|
|
Subsidiaries : |
·
Lupin Chemicals ( ·
Lupin Laboratories ·
Lupin Pragati Limited,
·
Lupin Pharmaceuticals
Inc., ·
Lupin Hong Kong
Limited ·
Lupin Holdings S.A., ·
Lupin ·
Lupin Herbal Limited,
(LHL) |
|
|
|
|
Membership : |
·
Confederation of
Indian Industry |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
50,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 500.000 millions |
|
1,500,000 |
Redeemable Preference Shares |
Rs. 100/- each |
Rs. 150.000 millions |
|
|
Total |
|
Rs.
650.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
80,340,000 |
Equity Shares |
Rs. 10/- each |
Rs. 803.400 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
SHAREHOLDERS FUNDS |
|
|
|
|
1] Share Capital |
803.400 |
401.400 |
401.400 |
|
2] Reserves & Surplus |
8080.700 |
6038.100 |
4603.600 |
|
NETWORTH |
8884.100 |
6439.500 |
5005.000 |
|
LOAN FUNDS |
|
|
|
|
1] Secured Loans |
3909.100 |
4286.500 |
3806.300 |
|
2] Unsecured Loans |
4736.400 |
4839.500 |
600.100 |
|
TOTAL BORROWING |
8645.500 |
9126.000 |
4406.400 |
|
DEFERRED TAX LIABILITIES |
0.000 |
956.100 |
934.400 |
|
|
|
|
|
TOTAL
|
17529.600 |
16521.600 |
10345.800 |
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
7138.100 |
6424.000 |
5589.400 |
|
Capital work-in-progress |
825.500 |
252.100 |
698.100 |
|
|
|
|
|
|
INVESTMENTS |
58.600 |
95.000 |
93.700 |
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
Inventories |
4020.700 |
3102.900 |
2480.800 |
|
Sundry Debtors |
4793.000 |
3483.900 |
2353.900 |
|
Cash & Bank Balances |
3527.800 |
4558.000 |
177.800 |
|
Loans & Advances |
2479.500 |
2328.700 |
1726.200 |
|
Total Current Assets |
14821.000 |
13473.500 |
6738.700 |
|
Less : |
|
|
|
|
Current Liabilities |
4649.600 |
2995.400 |
2374.300 |
Provisions
|
664.000 |
727.600 |
399.800 |
Total Current Liabilities
|
5313.600 |
3723.000 |
2774.100 |
|
Net Current Assets |
9507.400 |
9750.500 |
3964.600 |
|
|
|
|
|
TOTAL
|
17529.600 |
16521.600 |
10345.800 |
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales
Turnover |
20288.700
|
16610.400
|
12122.700
|
|
|
Other
Income |
1866.500
|
725.100
|
187.700
|
|
|
Stock
Adjustments |
425.900
|
300.500
|
19.100
|
|
|
Total Income |
22581.100 |
17636.000 |
12329.500 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
3967.500
|
2302.000
|
852.700
|
|
|
Provision for Taxation |
946.900
|
474.800
|
09.100
|
|
|
Profit/(Loss) After Tax |
3020.600
|
1827.200
|
843.600
|
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
|
|
|
|
|
Total Earnings |
NA |
8093.600 |
5695.200 |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
Total Imports |
NA |
3465.100 |
2729.400 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Raw
Materials |
9553.600
|
7868.200
|
5703.500
|
|
|
Excise
Duty |
659.100
|
645.000
|
565.100
|
|
|
Power
& Fuel Cost |
902.600
|
732.500
|
610.700
|
|
|
Other
Manufacturing Expenses |
1264.700
|
1005.200
|
808.200
|
|
|
Employee
Cost |
1778.100
|
1490.900
|
1212.200
|
|
|
Selling
and Administration Expenses |
3050.600
|
2345.900
|
1647.800
|
|
|
Miscellaneous
Expenses |
570.300
|
539.800
|
324.100
|
|
|
Interest
& Financial Charges |
370.900
|
303.000
|
273.100
|
|
|
Depreciation
|
463.700
|
403.500
|
332.100
|
|
Total Expenditure |
18613.600 |
15334.000 |
11476.800 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2007 |
|
Type |
|
|
1st
Qtr |
|
Sales
Turnover |
|
|
6017.500 |
|
Other
Income |
|
|
151.400 |
|
Total
Income |
|
|
6168.900 |
|
Total
Expenditure |
|
|
4976.700 |
|
Operating
Profit |
|
|
1192.200 |
|
Interest |
|
|
89.000 |
|
Gross
Profit |
|
|
1103.200 |
|
Depreciation |
|
|
126.900 |
|
Tax |
|
|
192.500 |
|
Reported
PAT |
|
|
783.800 |
Notes
200706
Quarter 1 –
Expenditure Includes (Increase) /Decrease in Stock in Trade
Rs (379.90) million Consumption of Raw & Packing Materials Rs 2106.90
million Purchase of Traded Goods Rs 823.90 million Staff Costs Rs 541.50
million Manufacturing & Other Expenses Rs 1884.30 million Tax Includes
Provision for Current Tax & Deferred Tax Rs 157.20 million Fringe Benefit
Tax Rs 35.30 million EPS is Basic Status of Investor Complaints for the quarter
ended June 30, 2007 Complaints Pending at the beginning of the quarter Nil Complaints
Received during the quarter 17 Complaints disposed off during the quarter 17
Complaints unresolved at the end of the quarter Nil 1. The above financial
results for the quarter ended June 30, 2007 were reviewed by the Audit
Committee and thereafter were approved and taken on record by the Board of
Directors in their meeting held on July 19, 2007. The statutory auditors of the
company have carried out the limited review of the above results pursuant to
Clause 41 of the Listing Agreement. 2. The Company operates solely in the
pharmaceutical business and hence has only one primary reportable segment. 3.
The aggregate amount of revenue expenditure incurred on Research and
Development and shown in the respective head of account for the Quarter ended
June 30, 2007 - Rs 373.20 million 4. During the Quarter, 810 equity share of Rs
10/- each fully paid up were allotted by the company on exercise of the vested
stock options in accordance with the terms of exercise under the 'Lupin
Employee Stock Option Plan 2003'. 5. During the Quarter, 11,66,612 equity share
of Rs 10/- each fully paid up were allotted on conversion of Foreign Currency
Convertible Bonds in accordance with terms of the issues. 6. Earnings per share
for the quarter ended June 30, 2006 have been adjusted for the issue of bonus
shares in the ratio of 1:1 allotted on August 17, 2006 as per Accounting
Standard-20 (AS-20) on 'Earnings Per Share' and disclosed. 7. The Guidance on
implementing AS 15, Employee Benefits (revised 2005) issued by Accounting
Standards Board (ASB) states that provident funds setup by employees which
requires interest shortfall to be met by employer needs to be treated as
defined benefit plan. Pending the issuance of the Guidance Note by the
Actuarial Society of India, the Company's actuary has expressed inability to
reliably measure provident fund liability. Accordingly the Company has
accounted for the same as a defined contribution plan. 8. Manufacturing and
other expenses for the quarter includes loss on account of foreign exchange (mainly
on translation of overseas deposits) of Rs 192.40 million. 9. The Companys new
finished dosages facility at
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt Equity Ratio |
1.16 |
1.18 |
0.86 |
|
Long Term Debt Equity Ratio |
0.71 |
0.64 |
0.37 |
|
Current Ratio |
1.68 |
1.38 |
1.10 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
2.27 |
2.14 |
1.79 |
|
Inventory |
5.70 |
5.95 |
5.23 |
|
Debtors |
4.90 |
5.69 |
5.37 |
|
Interest Cover Ratio |
8.65 |
8.60 |
4.12 |
|
Operating Profit Margin (%) |
18.10 |
18.11 |
12.03 |
|
Profit Before Interest and Tax Margin (%) |
15.81 |
15.68 |
9.29 |
|
Cash Profit Margin (%) |
12.82 |
1.343 |
9.70 |
|
Adjusted Net Profit Margin (%) |
10.53 |
11.00 |
6.96 |
|
Return on Capital Employed (%) |
19.39 |
20.86 |
12.75 |
|
Return on Net Worth (%) |
27.89 |
31.93 |
17.79 |
STOCK PRICES
|
Face Value |
Rs. 10/- |
|
High |
Rs. 640.00/- |
|
Low |
Rs. 634.50/- |
LOCAL AGENCY FURTHER INFORMATION
History:
The company was incorporated on 11th
July 1972 at Mumbai in
Lupin, came into existence due to amalgamation of Lupin
laboratories with Lupin Chemcials. The scheme of amalgamation has been approved
by the high court on 13 June 2001 and the same is effective from April 2000.
Lupin Chemicals was incorporated in the year 1983, promoted by Lupin
Laboratories, with an aim to manufacture rifampicin, an anti-TB drug at
Tarapur. The company consolidated its position in fermentation to produce
rifampicin from the basic stage. The highly complicated procedure of
stabilising the bacteria, which normally takes three to four years under local
conditions was achieved in around one year with the help of a technological
tie-up from
Lupin Laboratories was bought as defunct firm in 1968. It had manufacturing
facilities in
The company also expects strong gains from its entry into the
Lupin commissioned its state of art USFDA approval oral Cephalosporin dosage
manufacturing plant, for meeting the requirements of the generics markets with
some of the Cephalosporins going off patent in the coming years. At present the
facility is catering to the requirements of exhibit batches needed by the
R&D for the purpose of ANDA filings planned during the year.
During February 2002, Rabeprazole an anti-peptic in the therapetuc segment was
introduced by Lupin under the brand name of Rablet. The company spent most of
the capital expenditure for expansion of its R&D facilities, Expansion
& Modernization of the anit-TB dosage facility, Commisioning of a new
lisinopril facility. The company is setting up a USFDA approval plant at
Tarapur,
During 2003-04 the company commissioned a new facility at Verna,
The company's lupin division is offering solutions in the respiratory segment
with a range covering anti-TB, anti-Asthma (Inhalation segment),
anti-Infectives, anti-Allergics and supportive therapy products. During 2004-05
the company has entered into the anti-Asthma inhalation product range.
The Company has launched its Herbal division during 2004 and the company has
promotes a range of efficacious herbal products in therapeutic areas including
Diabetes, common Pediatric problems, GI disorders, pain management and
Gynaecological problems.
In 2006, The company has increased its installed capacity of Bulkdrugs &
Intermediates and Tablets by 221.80 MT & 40 Million Nos respectively and
with this expansion the total installed capacity of Bulkdrugs &
Intermediates has increased to 3785.70 MT & 1570 Million Nos
respectively.The company has issue of bonus shares in the ratio of one for one.
The company has issued FCCB aggregating US $100 million. These Bonds are listed
on the Singapore Stock Exchange.
Business:
Subject is engaged in the business as
Manufacturers of Bulk Drugs and Formulations.
Performance review
The
performance of the Company for the year ended March 31, 2007 was very
encouraging. The Company registered an all-round growth in sates of Finished
Dosages as well as Active Pharmaceutical Ingredients (API). Sates at Rs.20,289
Mn. grew by 22% as compared to those of the previous year. Domestic revenues as
welt as exports grew by 27% each. Profit after tax at Rs.3,020.6 Mn. registered
a growth of 65%, over that of the previous year. The earning per share was
Rs.37.10 on the equity capital of Rs.803.4 Mn, which more than doubled, on
account of one for one bonus issue and the allotment of shares to employees,
pursuant to stock option plans.
Foreign Currency Convertible Bonds (FCCB)
As
approved by you at the Twenty Third Annual General Meeting, Foreign Currency Convertible
Bonds (FCCB) aggregating US$ 100 Mn. were issued and listed on the Singapore
Stock Exchange in January 2006. Of the net proceeds of US$ 98.25 Mn. (net of
commission and expenses) an amount of US$ 73.25 Mn. has been utilised for
meeting capital expenditure. The balance amount of US$ 75 Mn. has been invested
as deposits with banks. In terms of their issue, the said Bonds are
convertible, anytime, prior to December 28, 2010 at a price of Rs.1134.08 per
equity share. Consequent to the issue of bonus shares in the ratio of one for
one, the number of underlying shares has doubted and the conversion price
halved to Rs.567.04 per equity share. The Company has received request from an
investor for converting Bonds of the principal amount of US$ three Mn. for
which equity shares will be issued shortly.
A
detailed report on Management Discussion and Analysis covering Finished
Dosages, API operations and R&D is given as a separate statement, which
forms part of this Annual Report.
Highlights of the operations, during the
year ended March 31, 2007, are given below:-
1) Finished Dosages
a.
The IRF yet again outperformed the Indian finished dosages market by attaining
a growth of 30%. The Indian Pharmaceutical market grew by 14% as per ORG MAR
MAT 07. The Company enjoys a market share of 2.4% and its ranking has improved
from 9th to 7th in the Indian Pharmaceutical Market. It also has the
distinction of recording the highest value growth among the top 10 Indian pharma
companies.
While maintaining its undisputed leadership in the Anti-TB segment with a
market share of 46%, the Company has also sustained the number two position in
Anti-Asthma segment. In Cardiovasculars, the Company recorded the fastest
growth rate (41%) among the top 10 companies and exceeded the market growth
rate by over three times. The Diabetes business, which was launched three years
ago, registered a growth of 54% during the year as against industry growth of
17%. In the Anti-infective segment, the Company ranks amongst the top ten
players.
It is gratifying that through its Lupinova Division engaged in providing
essential medicines to the rural masses at an affordable price, the Company's
endeavour is to discharge its social obligations, apart from attaining deeper
and wider market reach.
Launch of innovative combinations and introducing in-licensed products,
attainment of critical mass through depth and width of market penetration,
focus on rural marketing, new introductions, rising market share in chronic
segments, coupled with higher volumes of existing products and motivated and
passionate sales team have been some of the critical growth drivers.
b. Advanced Markets
The Company operates in the advanced market of the
The noteworthy feature has been that the Company has attained significant
market share and rankings for its product portfolio. The launch of Lisinopril
tablets last year was listed by IMS Health as one of the top 10 launches in the
On the branded side, Suprax., a product promoted by internalised sales team,
performed very well during the year. Prescriptions increased from 5,000 per
week last year, to 8,500 in the high season. A novel formulation of Cefixime,
which is a line extension of Suprax., would further strengthen the Company's
position in the Cephalosporins oral suspension paediatric market.
The Company's strength in API has been effectively leveraged to attain critical
position in formulation space. This in turn injects greater sustainability to
the business model in the advanced markets.
A significant feature of the play in this market has been the transformation
and maturing of LPI into a Direct To Market' (DTM) entity, which has been
recognised by customers and channels of trade. The company selectively follows
marketing alliance route.
For the European markets, the Company has accelerated its filings to create a
pipeline of lucrative products. The Company was the first to receive marketing
approval for generic Cefpodoxime Proxetil 100mg tablets in
c. Rest of the world
The AAMLA division, which covers the regions of Asia, Africa, Middle East,
Latin America and
The CIS business recorded steady progress and offers good growth prospects. The
Company has established its reputation and eminence in Anti-TB segment and is
consolidating its presence in herbal segment and Anti-Infectives, including
Cephalosporins. CIS shows strong brand preference. Through its motivated,
trained and focused sales team of over 85 representatives, the Company is set
to further strengthen its branded business for long-term gains.
The Company is one of the few that were pre-qualified as a preferred supplier
of Anti-TB products to the Global Drug Facility (GDF). The Anti-TB formulations
manufactured by the Company are supplied through GDF to more than 50 countries,
which are identified as High TB Burden Countries by the WHO.
2) API and Intermediates
The Company adopts the strategy of becoming global leader in chosen products,
which insulates the API business from being thinly spread. The leadership stems
from its capabilities in the areas of knowledge of complex chemistry, project
implementation, research and regulatory understanding.
This business continued to perform exceedingly well, taking support of the
solid foundation in terms of its skills, scales and reach. The performance was
mainly on account of larger volumes and cost efficiency. The Company has
further strengthened its leadership position in segments, such as Anti-TB,
Cephalosporins and Prils.
The Company has established business blocks, tailor made for some of the large
multi-national companies, which would provide an opportunity of inter-linking
the Company's competencies with theirs. The Company is also exploring the
possibilities of entering new therapies and of inorganic growth.
Overall, this makes the Company the most profitable API business in the
country.
3) Research & Development
The progress in the field of research has been steady and remarkable. The
In a landmark development, the Company entered into an agreement with
Laboratoires Servier of
The Company has made significant strides in the NCE space. It has received
approvals from Drugs Controller General of India (DCGI) for conducting Phase-III
clinical trials for its Anti-Migraine compound LLL 2011 (Amigra) and Phase-II
clinical trials for its Psoriasis compound LL-4218 (Desoside-P). Two other
molecules for Anti-TB and Psoriasis (herbal compound) are in various phases of
clinical trials.
While R&D provided the requisite lever to maintain the pace of regulatory
filings, its focus during the year was oriented towards increasing the
complexity of the pipeline through controlled release and differentiated
products that would offer niche opportunities. In line with this orientation,
the Company has established an innovation Celt for creating higher innovations.
Rural Development Programme
The Company is committed to fulfilling its social responsibilities through its
NGO arm, namely, Lupin Human Welfare and Research Foundation (LHWRF). It has
set in motion a silent revolution in the upliftment of rural underprivileged
and vulnerable sections of the society including women and children. It
operates in the states of Rajasthan,
LHWRF was conferred the prestigious FICCI Ladies Organisation Award for its
outstanding contribution in women's welfare. LHWRF was also conferred the
'Stree Shakti' Award, instituted by the Government of Rajasthan.
Subsidiary Companies
The Company has the following subsidiaries –
a) Lupin Pharmaceuticals Inc. (LPI), U.S.A. LPI is engaged in trading,
marketing and development activities in the
b) Lupin Chernicats (
LCTL ceased to be a subsidiary of the Company with effect from June 1,
2006.
c) Lupin Hong Kong Limited (LHKL), Hong Kong
LHKL was incorporated to co-ordinate and support the Company's API business in
d) Lupin
LAPL, a wholly owned subsidiary of the Company, was constituted primarily to
effect and hold product registrations in
e) Max Pharma Pty Limited (MPPL),
MPPL is a joint venture subsidiary company and its commercial operations are
yet to commence. MPPL would target niche products in hospitals and
non-prescription category in the territories of
f) Lupin Holdings B.V. (LHBV),
LHBV is a wholly owned subsidiary of the Company, which would be used as a
special purpose vehicle for overseas investments.
g) Lupin Herbal Limited (LHL),
LHL provides marketing and promotional services to the Company's herbal
division. It recorded a profit of Rs. 49,327/-, during the year.
h) Lupin Pharmacare Limited (LPL),
LPL plans to set up a plant for the manufacture of finished dosages at a
suitable Special Economic Zone, details of which are being worked out.
A statement containing particulars pursuant to the provisions of Section
212(1)(e) of the Companies Act, 1956 in respect of the above subsidiaries forms
part of this Annual Report. In compliance with Clause 32 of the Listing
Agreement, audited consolidated financial statements also form part of this
Annual Report.
MANAGEMENT DISCUSSION AND
ANALYSIS
INDUSTRY STRUCTURE AND DEVELOPMENT
The Global Pharmaceutical Market*
According to IMS Health, the world pharmaceutical market grew from US$ 334 Bn.
in 1999, to US$ 643 Bn. in 2006.
The economic, structural, political and health dynamics that impact growth, are
rebalancing the worldwide pharmaceutical market, driving global growth to 5-6%
for 2007 and it is expected to see global pharmaceutical sales to reach US$
665-685 Bn. in 2007. The expanding availability of healthcare and an increasing
need for treatment associated with chronic disease, more typically found in
developed countries, is driving higher growth rates in the developing
countries. It is estimated that emerging markets, currently representing around
17% of the global market, are expected to contribute 30% of growth next
year.
The top five markets of Europe (
Recognition and
awards
·
FICCI Award by the
Honourable Prime Minister of
·
ICMA Award - In 1993
·
Jamnalal Bajaj Award –
In 1995
·
Bhamashah Award- In 1995
·
Merit Award – In 1998
·
State Awards under Child
Welfare Program – In 2000, 2002, 2003.
The company has
joint venture with Lupin Chemicals (
The company is in trade terms with:
·
A. S. Enterprises
·
Aakar Arts
·
Adit Containers Private
Limited
·
Adit Industries
·
Adit Phama
·
Agarwal Paper Products
·
Amar Equipments Private
Limited
·
AMI Polymers Private
Limited
·
Amijal Chemicals
·
Bhavna Chemicals
·
·
·
Clean Air Engineers
·
Diva Envitech
·
Dorik Plastochem Limited
·
·
Enar Echemie Private
Limited
·
Nikita Chemicals
·
Nishflex Packaging
Private Limited
·
Aspage Integrated
Systems Private Limited
·
Novex PolyFilms Private
Limited
·
Multi-tech Engineers
Private Limited
·
Jain Carton Industries
Private Limited
·
Fluid Pack Machinery
Company Private Limited
·
Yoyo Chemicals
·
Amsal Chem Private
Limited
·
Kisalaya Herbals Limited
·
Pharmaceuticals Coatings
·
Western Drugs Private
Limited
·
Award Packaging
·
Aadarsh Offset Private
Limited
·
Hymech Engineers Private
Limited
·
Printania Offset Private
Limited
·
Ramesh Industries
·
Harelm Polycontainers
Private Limited
·
Gujarat Chemicals
Private Limited
·
Goyal MG Gases Limited
·
Niket Udyog Limited
·
S. D. Limited
·
Sales Worth India
Private Limited
·
Jain Carton Private
Limited
·
Kailash Corrugators
Private Limited
·
Madhav Ratna Packaging
Industries
·
Sanjivani Parenterals Limited
·
Vivid Systems
·
Webtech Systems
·
Zeolites & Allied
Products
·
Universal Insulation
Company
·
Vijay Pumps
·
Vikas Pharmaceutical
Laboratories
·
Techno Cell
·
Truimph Pack Private
Limited
·
System & Components
·
Taran Industries
·
Tatva Chintan Pharma
Chem Private Limited
·
Subhadra Packaging
·
Rotex Manufacurers
·
RDG Engineering Works
·
Regal Chemical &
Mineral
·
Mayank Engineering Works
·
Gimar Corrugators
Private Limited
·
Glamour Packaging
·
Godavri Plsto Containers
Private Limited
·
Goel Process Systems
Private Limited
·
J U Engineering
Fixed Assets
freehold land, leasehold land, buildings,
plant and machinery, furniture, fixtures and office equipments, vehicles, air
conditioners and technical know-how.
Press Release:
DSM
Anti-Infectives
September 02, 2005: DSM Anti-Infectives
India Limited and Lupin Limited have entered into a supply and marketing
agreement for a strategic cooperation in the cephalosporins
segment.
In recent years, both the companies have demonstrated their strength in
this key segment and this strategic cooperation will further enable to
strengthen their respective positions in this segment through enhanced
utilisation of existing resources, with an enhanced market access. Mr. N.V.
Ramanan, Head of DSM Anti Infectives (Asia Pacific, Middle east,
Commenting on the development Mr. Satish Khanna, Group President API,
Lupin Limited said “This development enhances our market reach and will enable
us to optimally utilise our resources. We look forward to increase this
cooperation over a wider product basket to bring synergetic advantages to both
Lupin and DSM Anti-Infectives.”
About DSM Anti-Infectives
DSM Anti-Infectives India is a part of the business group DSM
Anti-Infectives (global turnover of Euro 500 Million, whereas DSM group annual
turnover is Euro 8 Billion), which holds a leadership position in the field of
Active Pharmaceutical Ingredients for the â-Lactam industry.
About Lupin
Headquartered in Mumbai, Lupin (http:/www.lupinworld.com) develops,
manufactures and markets generic intermediates, active pharmaceutical
ingredients and finished dosages. Its FY 2004-05 revenues were Rs.12 billion.11
of Lupin’s plants have been approved by the USFDA and two facilities have been
approved by the UKMHRA
Dr. Vijay Kelkar and Mr. R A Shah join Lupin Board
BSE: 500257 NSE: LUPIN REUTERS: LUPN.BO BLOOMBERG: LPC IN
Mumbai, October 19, 2005: Lupin Limited
today announced that Dr. Vijay Kelkar and Mr. R A Shah have joined the company’s
Board as Independent Directors. An eminent economist Dr. Kelkar was an advisor
to the Minister of Finance, Government of India between August 2002 and
September 2004. A Ph.D from the
An eminent solicitor specialising in broad spectrum of Corporate Laws
Mr. R A Shah is a senior partner of Crawford Bayley & Company, a leading
solicitor firm in Mumbai. Mr. Shah serves on the boards of various companies
being on the Managing Committee of the Bombay Chamber of Commerce and Indo
German Chamber of Commerce. He is also a Member of the Committee for Revision
of SEBI Takeover Code and President of Society of Indian Law Firms (Western
Region). Welcoming these two eminent personalities on the Board, Lupin Chairman
Dr. Desh Bandhu Gupta said, “I am delighted that Dr. Kelkar and Mr. Shah
accepted our invitation to join our Board. Their enormous experience and wisdom
will serve Lupin in good stead in the years to come”.
Lupin FY 2006-07 Q1 Sales up by 33 % at Rs. 4.9 bn
Driven by Formulation sales revenue, up by 49%
Domestic revenue growth of 39%
Exports up by 25%
Net Income up 17% at Rs. 507 Millions
Four ANDAs filed with the
BSE: 500257 NSE: LUPIN REUTERS: LUPN.BO BLOOMBERG: LPC IN
*Note – Figures in brackets indicate figures for the previous year
Mumbai, 25 July 2006: Lupin Limited reported
a 33% rise in sales (gross) for the quarter ended June 2006. Sales grew from
Rs.3.7 bn in Q1 2005-06 to Rs.4.9 bn in Q1 2006-07.
Export sales were Rs.1,982 Millions an increase of 25%. This includes
sales made to advanced markets of Rs.527 Millions. (Rs.280 Millions) which grew
by 88%. Sales from domestic markets were up Rs.2,869 Millions (Rs.2,069
Millions) a growth of 39%.
Earnings before Interest, Taxation, Depreciation and Amortization
(EBITDA) was Rs.833 Millions (Rs. 748 Millions) a rise of 11%. After Interest
and Finance charges Rs. 91 Millions (Rs.65 Millions), Depreciation Rs. 106
Millions (Rs.91 Millions) and Provision for taxation (including Fringe Benefit
Tax) Rs.130 Millions (Rs. 160 Millions), Net profit for the year increased by
17% to Rs. 507 Millions (Rs. 432 Millions).
During the quarter the Company incurred exceptional litigation expenses
of Rs. 82Millions pertaining to one particular patent challenge.
HIGHLIGHTS
Advanced markets
Total formulation sales from the advanced markets (North America and
Developing Markets
v
API sales from the
developing markets (including
v
Finished dosage sales
from developing markets (including
v
Finished dosage from
domestic market grew by 29% to Rs. 2,066 Millions (Rs. 1,601 Millions)
v
API sales from the
domestic market grew by 75% at Rs. 776 Millions (Rs. 443 Millions)
v
MOU signed to acquire
51% stake in Dafra
v
Lupenox (Enoxaparin
sodium) first in-licensed product, introduced in domestic market
Research & Development
Four ANDAs, two DMFs, three EDMFs/COS, and one MAA (EU) filed
Research and Development expenditure during the quarter was at Rs.
320Millions, 6.8% of the Net Sales (5.3%)
Includes Litigation Expenses of Rs 82 Millions
Lupin Receives “Best New Manufacturer of the Year” Award
from AmerisourceBergen
BSE : 500257
|
NSE: Lupin
|
REUTERS: LUPN.BO |
BLOOMBERG: LPC IN |
Mumbai, 31 July 2007: Lupin Limited (Lupin),
announced today that it has received the award for “Best New Manufacturer of
the Year, Generics Rx” from AmerisourceBergen, a leader in healthcare
distribution in the
“We are very pleased with the recognition that
Lupin has received from AmerisourceBergen. Lupin launched its Generics Rx
division in December 2005 and this award is a reflection of our continued and
unwavering commitment to our customers in identifying, filing, launching and
supplying important generic products,” said Dr. Kamal Sharma, Managing
Director, Lupin.
About Lupin
Headquartered in Mumbai, Lupin Limited is a
leading pharmaceutical company with strong research focus. It has a programme
for developing New Chemical Entities. The Company has state-of-the-art R&D
center in Pune. The Company is a leading global player in Anti-TB,
Cephalosporins (anti-infectives) and Cardiovascular drugs (prils and statins)
and has a notable presence in the areas of diabetology, NSAIDS and Asthma.
For the quarter ended June 2007, Lupin’s Revenues and Profit
after Tax were Rs. 6173 million (US$ 152 million) and Rs. 784 million (US$ 19
million) respectively.
For further information contact:
Raju Kane
The Source
Tel. +91 22 24901327/28
Telefax: +91 22 24901325
E-mail: rajukane@sourcepr.com
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.40.37 |
|
|
1 |
Rs.81.97 |
|
Euro |
1 |
Rs.55.73 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
75 |
|
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 |
|
72 |
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 |
|