MIRA INFORM REPORT

Report Date :

13.02.2007

IDENTIFICATION DETAILS

Name :	SUN PHARMACEUTICALS INDUSTRIES LIMITED
Registered Office :	Sun Pharma Advance Research Centre (SPARC), Akota Road, Akota, Vadodara – 390 020, Gujarat
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	01.03.1993
Com. Reg. No.:	04-19050
CIN No.: [Company Identification No.]	L24230GJ1993PLC019050
TAN No.: (Tax Deduction & Collection Account No.)	BRDS02426E
PAN No.: (Permanent Account No.)	AADCS3124K
Legal Form :	Public Limited Liability Company. The company's shares are listed on the Stock Exchanges.
Line of Business :	Manufacturers of tablets, capsules, parenterals, ointments, bulk drugs, chemicals and liquids.

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

Maximum Credit Limit :	USD 58500000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed pharmaceutical company having fine track. Available information indicates high financial responsibility of the company. Business is active. Payments are usually correct and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	Sun Pharma Advance Research Centre (SPARC), Akota Road, Akota, Vadodara – 390 020, Gujarat, India
Tel. No.:	91-265-2340001/282111822/1842/1917/1951/195/ 5515500/600/700
Fax No.:	91-265-2339103/28212010/2354897
E-Mail :	corpcomm@sunpharma.com helpdesk@sunpharma.com
Website :	http://www.sunpharma.com
Corporate Office :	Acme Plaza, Andheri – Kurla Road, Andheri (East), Mumbai – 400 059, Maharashtra, India
Tel. No.:	91-22-28211822 /1842/1917/1951/1953
Fax No.:	91-22-28212010
E-Mail :	corpcomm@sunpharma.com
Research Centre :	Sun Pharma Advanced Research Centre (SPARC), Akota Padra Road, Vadodara – 390 027, Gujarat F.R27, Part Survey No. 27, C. S. No. 1050, T. RS. Village, Tandalja, District Vadodara - 390 020, Gujarat, India 17-B, Mahal Industrial Estate, Mahakali Caves Road, Andheri (East), Mumbai - 400059, Maharashtra, India
Plants :	C1/2710, GIDC, Phase III, Vapi – 396 195, Gujarat, India Plot No. 214 & 20, Government Industrial Area, Phase II, Piparia, Silvassa – 396 230, Union Territory, Gujarat, India Plot No. 25, GIDC, Phase IV, Panoli – 395 116, Gujarat, India A-7 & A-8 MIDC Industrial Area, Ahmednagar – 414 111, Maharashtra, India. Plot No. 4708, GIDC, Ankleshwar - 393 002, Gujarat, India Plot No. 223, Span Industrial Complex, Dadra – 396 191 (Union Territory) Sathammai Village, Karunkuzhi Post, Maburanthakam, T. K., Kanchipuram District, Tamilnadu, India Halol-Baroda Highway, Halol, Gujarat – 390350, India Plot No. 817/A, Karkhadi, Taluka: Padra, District Vadodara - 391450

DIRECTORS

Name :	Mr. Dilip S. Shanghvi
Designation :	Chairman & Managing Director
Date of Birth/Age :	46 years
Qualification :	B. Com.
Experience :	23 years
Date of Appointment :	1^st April, 1993
Previous Employment :	Sun Pharmaceutical Industries – Partner
Name :	Mr. Sudhir V. Valia
Designation :	Whole Time Director
Date of Birth/Age :	44 years
Qualification :	FCA
Experience :	22 years
Date of Appointment :	1^st April, 1994
Previous Employment :	Practising Chartered Accountant
Name :	Mr. Sailesh T. Desai
Designation :	Whole Time Director
Name :	Mr. S. Mohanchand Dadha
Designation :	Director
Name :	Mr. Hasmukh S. Shah
Designation :	Director
Name :	Mr. Ashwin Dani
Designation :	Director
Name :	Mr. Kemi M. Mistry
Designation :	Additional Director

KEY EXECUTIVES

Name :	Mr. Kamlesh H. Shah
Designation :	Company Secretary

MAJOR SHAREHOLDERS

As on 31.12.2006

Names of Shareholders	No. of Shares
Indian
Individuals / Hindu Undivided Family	30845257
Bodies Corporate	101302400
Any other - Trusts	128020
Institutions
Mutual Funds / UTI	4744650
Financial Institutions / Banks	158792
Insurance Companies	2048777
Foreign Institutional Investors	30382252
Any Other – Foreign Banks	483866
Non - Institutions
Bodies Corporate	5961586
Individual shareholders holding nominal share capital up to Rs. 0.100 million	9095233
Individual shareholders holding nominal and share capital in excess of Rs. 0.100 million	3405698
Any Other
NRI	184472
Overseas Corporate Bodies	2400
Clearing Members	134695
Foreign Company	1178992

BUSINESS DETAILS

Line of Business :	Manufacturers of tablets, capsules, parenterals, ointments, bulk drugs, chemicals and liquids.
Products with ITC Code :	30049038 – Pantaprazole Sodium 30033900 – Losartan Potassium 30049065 – Metformin Hydrochloride Mesalamine (5 ASA) Acamprosate Calcium Alendronate Sodium Amifostine Bupropion HCL Carboplatin Carvedilol Cisplatin Cisplatin Citalopram Hydrobromide Clomipramine HCL Clonazepeam Clopidogrel Bisulfate Desloratidine Desmopressin Divalproex Sodium Dobutamine HCL Dothiepin HCL Erythromycin Estolate Erythromycin Propionate Erythromycin Stearate Esomeprazole Magnesium Flurbiprofen Flurbiprofen Sodium Fluticasone Propionate Fluvoxamine Maleate Gabapentine Glimepiride Isradipline Lercanidipine HCL Letrozole Losartan Potassium Loteprednol Etabonate Meloxicam Metaxalone Metformin HCL Methylphenidate HCL Metoprolol Tartrate Succinate Mirtazapine Mitoxxantrone HCL Naltrexone HCL Octreotide Olanzapine Ondansetron HCL Oxaliplatin Oxcarbazepine Oxerthazaine Pamidronate Disodium Pentoxifyline Piroxicam Beta-Cyclodextrin Prednicarbate Quetiapine Fumarate Repaglinide Riluzole Glutamate Rivastigmine Tartrate Ropinirole Rosiglitazone Maleate Sodium Valporate Tizanidine HCL Topiramate Tramadol HCL Valproic Acid Venlafaxine HCL Ziprasidone HCL
Exports to :	Asia Pacific, CIS Countries, Europe, South East Asia and U.S.A.
Imports from :	Europe and U.S.A.

PRODUCTION STATUS

Particulars	Installed Capacity	Actual Production
Tablets/ Capsules/ Parenterals/ Ointments	4981.0 No. in Millions	1100.3 No. in Millions
Bulk Drugs/ Chemicals	838.6 [In Kilo Litres]	2167.5 [In ’00 Kgs]

GENERAL INFORMATION

No. of Employees :

Around 1200

Bankers :

Bank of Baroda, Nitin Niwas, 47, M. G. Road, Vile Parle (East), Mumbai

State Bank of India

Standard Chartered Grindlays Bank Limited

ICICI Bank Limited

Bank of Nova Scotia

Citibank N. A.

Kotak Mahindra Bank Limited

Facilities :

	As on 31.03.2006 [Rupees in Millions]
Secured Loan
Short Term Loan from Banks	182.300
Unsecured Loan
External Commercial Borrowings in foreign currency from Banks	1808.100
Zero Coupon Foreign Currency Convertible Bonds	15467.800

Banking Relations :	Good
Auditors :	Deloitte Haskins & Sells Chartered Accountants, Mumbai, Maharashtra, India
Subsidiaries :	Sun Pharma Advance Research Company Limited Sun Pharma Global Inc., British Virgin Islands Milmet Pharma Limited [Up to 25.10.2005] Sun Pharmaceutical (Bangladesh) Limited Zao Sun Pharma Industries Limited, Russia Caraco Pharmaceuticals Laboratories Limited, U.S.A. Sun Pharma De Mexico S.A. DE C.V. Sun Farmaceutica Ltda, Brazil Sun Pharmaceutical Industries Inc 705 E. Muberry St., Bryan, OH 43506, U.S.A. 270 Prospect Plains Road, Cranbury, NJ 08512, U.S.A. Sun Pharmaceuticals UK Limited ICN Hungary Limited Universal Enterprise Private Limited Sun Pharmaceutical Peru S.A.C. SPIL De Mexico S.A. DE C.V.
Associates :	Sun Pharma Exports Sun Pharmaceuticals Industries
Joint Venture :	Sun Pharma House No. 4, Road No. 16-A, Near Gulshan Post Office, Gulshan – 1, Dhaka, Bangladesh
Membership :	Confederation of Indian Industry

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
307900000	Equity Shares	Rs. 5/-	Rs. 1539.500 millions
25000000	Preferences Shares	Rs. 1/-	Rs. 25.000 millions
2015000	Preferences Shares	Rs. 100/-	Rs. 201.500 millions
	Total		Rs. 1766.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
185731637	Equity Shares	Rs. 5/-	Rs. 928.700 millions
13983534	6% Cumulative Redeemable Preferences Shares	Rs. 1/-	Rs. 14.000 millions
	Total		Rs. 942.700 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		942.700	941.600	618.400
2] Share Capital Suspense		0.000	0.100	0.000
3] Reserves & Surplus		13706.700	10112.800	7977.300
NETWORTH		14649.400	11054.500	8595.700
LOAN FUNDS
1] Secured Loans		182.300	139.200	514.600
2] Unsecured Loans		17275.900	18007.300	2607.900
TOTAL BORROWING		17458.200	18146.500	3122.500
Deferred Tax Liability		1044.400	853.000	0.000
TOTAL		33152.000	30054.000	11718.200
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		5361.900	4391.500	3671.900
Capital work-in-progress		308.000	479.400	260.700
INVESTMENT		7796.200	9852.400	5589.300
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2634.100	1866.200	1614.500
	Sundry Debtors	2564.700	2349.700	1283.700
	Cash & Bank Balances	12308.200	8900.300	757.500
	Other Current Assets	175.500	45.000	0.000
	Loans & Advances	4890.200	4384.100	1189.000
Total Current Assets		22572.700	17545.300	4844.700
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	1661.800	1370.100	1914.700
	Provisions	1225.000	844.500	733.700
Total Current Liabilities		2886.800	2214.600	2648.400
Net Current Assets		19685.900	15330.700	2196.300
MISCELLANEOUS EXPENSES		0.000	0.000	11718.200
TOTAL		33152.000	30054.000	11718.200

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Sales Turnover [including other income]	18059.600	12468.100	10301.700
Profit/(Loss) Before Tax	4886.800	3234.800	2940.100
Provision for Taxation	273.900	177.700	534.100
Profit/(Loss) After Tax	4612.900	3057.100	2406.000
Export Value	4048.500	2866.500	2057.500
Import Value	N.A.	N.A.	1114.900
Total Expenditure	13172.800	9233.600	6657.400

QUARTERLY RESULTS

PARTICULARS	30.06.2006 [1^st Qtr.]	30.09.2006 [2^nd Qtr.]	31.12.2006 [3^rd Qtr.]
Sales Turnover	5408.700	5530.400	5607.600
Other Income	250.900	386.100	519.400
Total Income	5659.600	5916.500	6127.000
Total Expenditure	4031.800	4166.100	4312.400
Operating Profit	1627.800	1750.400	1814.600
Interest	0.000	0.000	0.000
Gross Profit	1627.800	1750.400	1814.600
Depreciation	118.100	117.100	125.400
Tax	29.500	32.200	37.900
Reported PAT	1480.200	1601.100	1651.300

Notes

2006-06 Quarter 1

1. The above financial results of the company for the Quarter ended June 30, 2006 have been reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on July 26, 2006; and have been subjected to a Limited Review by the Statutory Auditors of the Company. 2. Pursuant to Accounting Standard (AS) 15 (Revised) - Employee Benefits, issued by the Institute of Chartered Accountants of India becoming mandatory effective April 1, 2006, provision for employee remuneration and benefits has been made in accordance with revised AS 15. An amount of Rs. 7.3 Million net of deferred tax credit has been adjusted to Reserves as on April 1, 2006. Provision for employee remuneration and benefits for the quarter ended June 30, 2006 has been made as per the revised AS-15, which does not have material impact on the profits of the quarter.B35 3. The Board of Directors of the Company at their meeting held on February 9, 2006 decided to demerge and transfer its innovative research and development business w. e. f April 1, 2006 and accordingly the said business, subject to necessary regulatory approvals, will be transferred to Sun Pharma Advanced Research Company Limited, a wholly owned subsidiary of the Company. Pending approval of the regulatory authorities, the revenue expenditure incurred during the quarter on the said business is included in the above result and will be ascertained and transferred to subsidiary company upon obtaining necessary approvals. 4. During the quarter, out of the USD 350 Million Zero Coupon Foreign Currency Convertible Bond issued by the company, the holders of USD 5.5 Million have exercised conversion option and consequently 336,168 Equity Shares of Rs. 5 each were allotted to them as per the terms of the issue at a Premium of Rs. 724.3 per Share. 5. Provision for Tax includes Current tax, Deferred Tax and Fringe Benefit Tax. 6. The Company has only one reportable business segment namely 'Pharmaceuticals'. 7. Status of investor complaints [in nos.] during the quarter, pursuant to the clause 41 of the listing agreement : Opening [0]; Received [34]; Resolved [34]; Closing [0] 8. Figures for the previous period have been regrouped / recasted, wherever considered necessary.

2006-09 Quarter 2

Other Income Includes Share of Income from firm Rs 1470.50 million Other Income Rs 124.30 million Net interest income Rs 261.80 million Expenditure Includes (Increase)/Decrease in stock in Trade Rs (10.20) million Material Cost Rs 2868.40 million Staff Cost Rs 309.80 million Other Indirect Taxes Rs 127.40 million Other Expenditure Rs 870.70 million Depreciation indicates Depreciation & Amortisation Research & Development Expenses Rs 383.80 million EPS is Basic 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 36 Complaints disposed off during the quarter 36 Complaints unresolved at the end of the quarter Nil 1. The above financial results of the Company for the Quarter ended September 30, 2006 have been reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on October 19, 2006; and have been subjected to a Limited Review by the Statutory Auditors of the Company. 2. The Board of Directors of the Company at their meeting held on February 09, 2006 decided to demerge and transfer its innovative research and development business w.e.f April 01, 2006 and accordingly the said business, subject to necessary regulatory approvals, will be transferred to Sun Pharma Advanced Research Company Ltd, a wholly owned subsidiary of the Company. Pending approval of the regulatory authorities, the revenue expenditure incurred during the quarter on the said business is included in the above result and will be ascertained and transferred to subsidiary company upon obtaining necessary approvals. 3. During the quarter, out of the USD 350 Million Zero Coupon Foreign Currency Convertible Bond issued by the company, the holders of USD 9.6 Million have exercised conversion option and consequently 592,479 Equity Shares of Rs 5 each were allotted to them as per the terms of the issue at a Premium of Rs 724.3 per Share. 4. Provision for Tax includes Current tax, Deferred tax and Fringe Benefit Tax. 5. The Company has only one reportable business segment namely 'Pharmaceutical' 6. Figures for the previous period have been regrouped / recasted, wherever considered necessary.

2006-12 Quarter 3

Other Income Includes Share of Income from firm Rs 1428.50 million Other Income Rs 269.70 million Net interest income Rs 249.70 million Expenditure Includes (Increase)/Decrease in stock in Trade Rs (124.50) million Material Cost Rs 3020.10 million Staff Cost Rs 314.00 million Other Indirect Taxes Rs 134.00 million Other Expenditure Rs 968.80 million Depreciation indicates Depreciation / Amortisation Research & Development expenses of Rs 423.10 million included in above results. EPS is Basic Status of Investor Complaints for the quarter ended December 31, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 37 Complaints disposed off during the quarter 37 Complaints unresolved at the end of the quarter Nil 1. The above financial results of the Company for the Quarter ended December 31, 2006 have been reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on January 29, 2007; and have been subjected to a Limited Review by the Statutory Auditors of the Company. 2. The Board of Directors of the Company at their meeting held on February 09, 2006 decided to demerge and transfer its innovative research and development business w.e.f April 01, 2006 and accordingly the said business, subject to necessary regulatory approvals, will be transferred to Sun Pharma Advanced Research Company Ltd, a wholly owned subsidiary of the Company. Pending approval of the regulatory authorities, the impact on account of transfer of the said business pursuant to the scheme of demerger is not given in the above results. 3. During the quarter, out of the USD 350 Million Zero Coupon Foreign Currency Convertible Bond issued by the company, the holders of USD 55.00 Million have exercised conversion option and consequently 3,396,806 Equity Shares of Rs 5 each were allotted to them as per the terms of the issue at a Premium of Rs 724.3 per Share. Subsequent to December 31, 2006 Zero Coupon Foreign Currency Convertible Bonds of USD 19.80 million have been converted into 1,221,986 Equity Shares of Rs 5 each and consequently the paid up Share Capital and the Securities Premium account as on date stands at Rs 956.40 million and Rs 4174.50 million respectively. 4. Provision for Tax includes Current tax, Deferred tax and Fringe Benefit Tax. 5. The Company has only one reportable business segment namely 'Pharmaceutical' 6. During the quarter 156,828 - 6% Cumulative Redeemable Preference Shares of Rs 1 each were redeemed at par. 7. Figures for the previous period have been regrouped / recasted, wherever considered necessary.

KEY RATIOS

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Debt Equity Ratio	1.39	1.08	0.21
Long Term Debt Equity Ratio	1.37	1.03	0.16
Current Ratio	5.46	3.34	1.92
TURNOVER RATIOS
Fixed Assets	2.57	2.23	2.35
Inventory	7.75	7.20	6.30
Debtors	7.09	6.90	6.13
Interest Cover Ratio	44.52	29.20	82.22
Operating Profit Margin (%)	31.02	29.34	32.18
Profit Before Interest and Tax Margin (%)	28.68	26.72	29.82
Cash Profit Margin (%)	28.80	27.00	26.46
Adjusted Net Profit Margin (%)	26.47	24.39	24.10
Return on Capital Employed (%)	16.31	16.37	31.71
Return on Net Worth (%)	35.93	31.38	31.44

STOCK PRICES

Face Value	Rs. 10/- each
High	Rs. 1023.00/-
Low	Rs. 990.00/-

LOCAL AGENCY FURTHER INFORMATION

History

Subject was incorporated on 1^st March 1993 at Vadodara in Gujarat having Company Registration Number 19050.

Sun Pharmaceutical Industries (SPIL), started as a partnership firm in 1983 by Dilip Shanghvi, manufactures formulations and bulk drugs. Initially operating with a plant at Vapi, Gujarat, it set up two more plants, at Silvassa and Panoli. The company operates in select therapeutic segments like psychiatric, neurology, cardiology and gastro-enterology. It markets speciality ranges of high-value branded formulations in several countries across Asia, Africa and west Asia. 

During June 2000, the company introduced several products including Celact (celecoxib), Oleanz (olanzapine), Rofact (rofecoxib), Nodict (naltrexone), Fexotrol (fexofenadine), Zelast (azolastine) and (Ketorid(ketotifen). In the year 2000-01, across the company's eight speciality divisions, 33 new products were launched. Taking the lead for new products among the therapy areas were cardiology (6 products), diabetology (4) and opthalmology (6). Likely brand outperformers among these are the antihypertensive Irovel (Rapilin, Pioglit, Rezult) for antidiabetics and the erectile dysfunction treatment Edegra. In the year 2004-05 the company has introduced over 40 products and also the company took 26 APIs from lab to plant which includes 18 processes for drug master files. 

The company has been aggressive on M & A front and has acquired companies and brands like Knoll Pharma's bulk drug facility, Gujarat Lyka Organics, M. J. Pharma, Natco's brands, Milmet Labs. With this the company has acquired critical mass and extended its range of specialised therapy products. SPIL has acquired Detroit-based Caraco Pharmaceutical Laboratories (acquired for $ 7.5 million) also later on got the approval for three abbreviated new drug applications (ANDAs)

Sun Pharma has merged its 99.98% subsidiary Sun Pharmaceuticals Exports and Pradeep Drug Company (PDCL), an BIFR referred company with itself effective from April 1, 2000. And M J Pharmaceuticals (MJPL) was merged with the company effective from January 2002. The shareholders of MJPL has been allotted one equity share for 210 equity shares of MJPL.  

The company went into takeover by acquiring Hindustan Antiobiotics Ltd a oldest PSU in the pharma sector. The deal was struck at a price of Rs.2600 millions by which Sun pharma would meet the liabilities of Hindustan Antibiotics which is currently under the purview of BIFR. Following the BIFR approval-Sun Pharma would have to make the payment within a period of 30 days. Sun Pharma would use the manufacturing facilities of Hindustan Antibiotics for product expansion and to specific particularly for Pencillin-G. 

The subsidiaries of SPIL are Zao Sun Pharma Industries Limited, Sun Pharma Global Inc., Milmet Pharma Limited, Sun Pharmaceutical (Bangladesh) Limited, Caraco Pharmaceutical Laboratories Limited, Sun Farmaceutica Ltda (Brazil), Sun Pharma De Mexico, SA DE CV, Sun Pharmaceutical Industries Inc.

A new formulation plant at Dadra has started its operations in order to meet its domestic market requirements. The plant was built up at an area of 120,000 sq.ft and plant was completed within a period of 10 months. Cardivas and Aztor were the new products that were during 2001-02. 

In the year 2004-05 company added 250000 sq ft of research floor area across 2 high capability sites in Baroda and in Mumbai. At Baroda the new chemical entity facilities enable to take ahead a project from idea through animal testing and preliminary testing in humans under one roof and in Mumbai the research facility offers a state of the art pharmaceutics lab over 50000 sq ft with 65 Scientists offering technical support for US Projects. Further the company has recently commissioned a new dosage form sites at Dadra and Jammu which offer over 70000 Sq Ft of manufacturing floor area and 2160 mill/year tabs capacity, production for the local market has been shifted to these sites. At Halol, manufacturing unit for formulations has added a new injectable area. The company has also completed its expansion of 36000 sq ft of manufacturing floor area with 7 Highspeed lines to make injectables and eyedrops for the regulated markets and this will be commissioned in the first quarter of 2005-06. Further the company has planned about the capacity expansion at Ahmednagar to tackle the increasing demand for Caraco's products. 

The face value of the shares were sub-divided to Rs. 5 each from Rs.10 in 2003. SPIL went for expansion during 2003-04, as it increased installed capacity of Bulk Drugs by 109.50 Kilo Litres and consequent of this expansion the total capacity of Bulk drugs has been increased to 648.00Kilo Litres. 

During 2004 the company allotted bonus shares for its equity shareholders in the ratio of 1:1. The company has merged Phlox Pharmaceuticals Ltd (Phlox) with itself from 1^st March 2004. Accordingly, For every 790 equity shares of Rs.10/- each held in Phlox, 1 Equity Share of Rs. 5/- each of the Company have been issued.

In 2006, The company has undertaken demerger of its units of Innovative Research & Development activities and new Drug Delivery Systems effective from 1st April 2006. Which is presently pending before the honourable High Court of Gujarat for its approval. 

The company's acquisition and mergers has significantly add to the manufacturing base. We now have 16 plants in all. Seven of these plants make API and nine make formulations. In addition to streamlining and corrections at the newly acquired plants, there was some capacity expansion at the existing plants too.

Milestones

1983
The company starts operations with 5 psychiatry-based products. A team of 2 people quickly grows to 10 employees. Year 1 turnover- Rs. 1.000 million. Initial coverage is limited to Kolkata. Within a year the company expands to cover all eastern states. A small manufacturing facility for tablets/capsules is set up in a shed at Vapi. (This plant subsequently is expanded/upgraded in every year that follows.)

1986

Administrative office is set up in Bombay. Customer coverage extends to Western India.

1987

Marketing operations are expanded nation-wide.

1988

Monotrate, Angizem, the initial products in cardiology are launched. The company is reported in a market audit by the prescription tracking company, ORG* for the first time- rank 107th, 0.1% Market share.

1989

The corporate office is shifted to Baroda, in the western state of Gujarat. Products used in gastroenterology are introduced. Exports begin, with marketed to neighboring countries in Asia.

1991
At SPARC, (the proposed research center) - construction groundwork is started. Turnover Rs. 97.400 millions, Rank 70th.

1993
SPARC is inaugurated. Moscow, Toronto offices opened. Products are now registered in 10 markets.

1994
After an IPO in October, the company is listed on stock exchanges in India. The offering is oversubscribed 55 times. The company's first greenfield bulk drug plant at Panoli starts production. A dosage form plant at Silvassa starts production. Major expansion at the existing plant in Vapi is completed. One product now features among the top 250 pharma brands in the Indian market. A separate division, Synergy, is created to market Psychiatry/ Neurology products.

1995
A division, Aztec, is begun for cardiology products. A reallocation of products across divisions also takes place. Inca, a new division to market critical care medication to intensive care units commences operations. International marketing is strengthened with offices in Ukraine and Belarus.

1996
A bulk drug unit at Ahmednagar is acquired from Knoll Pharma. A stake is acquired in a generic dosage form manufacturer, the Detroit based Caraco Pharm Labs. An equity stake is picked up in Gujarat Lyka Organics Ltd., a manufacturer of cephalexin bulk active with a USFDA approved intermediate. An equity stake in also picked up in MJ Pharma, a manufacturer of several dosage form lines with a UK MCA approved plant. At the close of the year, the company ranks 27th with 2 products ranking among the country's top selling 300 pharma brands. Product registrations are now in place across 24 countries.

1997
TDPL, a company with a diverse product offering (oncology, fertility, anesthesiology, pain management) is merged with Sun Pharma. This brings a ready entry into new therapy areas that offer growth opportunity. Marketing is reorganized into 6 speciality-focused divisions. A research and development facility, the company's second, is established. This center will make dosage forms and supporting documentation for the generic markets in North America and Europe.

1998

A basket of brands is acquired from Natco Pharma, some of the products use a time release technology. For a quick entry in the area of ophthalmology, Milmet Labs, a company with interesting products in this area, is merged into Sun Pharma. The company's new formulation plant at Silvas commences operations.

1999

Rank moves within the top 10 in the domestic market. The bulk cephalexin manufacturer Gujarat Lyka Organics is merged with Sun Pharma.6 brands now feature among the leading 300 pharma brands in India.

2000
Ranked 5th among all companies in the domestic market . Pradeep Drug company, a Chennai based bulk active manufacturer is merged with Sun Pharma. The company announces a dedicated research campus for NCE initiatives with investments of Rs. 40cr over two years.

Future plan of action: 

At the end of the year, across the two research centers, close to 500 scientists are at work in over 170 labs spread about over 300,000 sq. ft. of research floor area. A new world class bioequivalence center spanning on 25000 sq. ft. and with a 78 bed capacity was built and commissioned this year. One NCE has finished Phase 1 of human trial, and 2 NDDS projects will enter trials over the next two quarters in the developed/regulated markets. Your company has also announced plans to demerge the innovative part of its business into a separate listed company.  

Trade References:

¯ Sun Petrochemical Private Limited

¯ Sun Speciality Chemicals Private Limited

¯ Navjivan Rasayan (Gujarat) Private Limited

Fixed Assets

Freehold Land, Leasehold Land, Buildings, Plant & Machinery, Vehicles, Furniture and Fixtures, etc.

WEBSITE DETAILS

PROFILE

They make speciality pharmaceuticals and active pharmaceutical ingredients. Their brands are prescribed in chronic therapy areas like cardiology, psychiatry, neurology, gastroenterology, diabetology and respiratory.

They have the same drive for growth that marked their early days. Sun Pharma came into existence as a startup with just 5 products in 1993. In the time since, they have crossed several milestones to emerge as a leading pharma company in India, a rank that they have now been at for more than 5 years. (IMS-ORG Retail Store Audit, March 2006)

They have reached leadership in each of the therapy areas that they operate in, and are rated among the leading companies by key customers. Strengthening market share and keeping this customer focus remains a high priority area for the company.

In the post 1996 years, they have used a combination of internal growth and acquisitions to drive growth; important mergers were those of the US, Detroit based Caraco Pharm Labs and that of the plant at Halol which is now UKMHRA and USFDA approved.

Under a recent corporate development, the areas related to new molecular entities and drug delivery systems are proposed to be demerged into a separate company.

PRESS RELEASES

Sun Pharma’s lead molecule enters Phase II in the US

Mumbai, October 20: Sun Pharma, the speciality pharma company, today announced that its lead anti-allergic molecule has received permission from the USFDA to enter Phase II trials in the US. This Phase II trial is being conducted in the US directly by the company, using a reputed CRO. This is, so far, the first IND filing and phase II study in the US for an Indian company working independently without a partner.

Based on pre-clinical and Phase I studies, the product appears to have a safer pharmacologic profile, with faster onset of action without major side effects.

Dilip Shanghvi, the Chairman and Managing Director of Sun Pharma, said, “ They are excited about this NCE candidate, their first-ever lead in Phase II. In their estimate, the Phase II trials should be completed on their own strength, technical as well as financial.”

Sun Pharma conducts drug discovery research in facilities at Baroda and Mumbai, India. This is the first lead molecule in human trials from the company’s innovative research program. The company has shared plans to demerge its innovative R&D programs into a new company by this fiscal, and expects to share more information about the innovative pipeline a month prior to listing the new company.

Achievements:

v The company was rated among the best companies for 2002 worldwide (turnover less than $ 500 million) by the business magazine Forbes Global. The company was featured among 10 companies in India, and more than 20000 companies featured globally.

v The company was also selected as the top rated company among the top 10 Indian companies (Express Pharma Plus award for overall excellence-2002, market share over 2.5%).

The company has Joint Venture/Collaboration with Caraco Pharma Laboratories, U.S.A.

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. 44.16
UK Pound	1	Rs. 86.00
Euro	1	Rs. 57.56

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	9
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	8
--RESERVES	1~10	7
--CREDIT LINES	1~10	8
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--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		71

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING		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

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions