MIRA INFORM REPORT
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Report
Date : |
15.02.2007 |
IDENTIFICATION
DETAILS
|
Name : |
NECTAR
LIFESCIENCES LIMITED |
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Formerly
Known As : |
SURYA MEDICARE LIMITED |
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Registered
Office : |
Village
Saidpura, Tehsil Dera Bassi, District Patiala, Punjab, India |
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Country
: |
India |
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Financials
(as on) : |
31.03.2006 |
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Date
of Incorporation : |
27-06-1995 |
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Com.
Reg. No.: |
16-16664 |
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CIN
No. : |
L24232PB1995PLC016664 |
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TAN
No.: (Tax
Deduction & Collection Account No.) |
PTLS10181D |
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PAN
No.: (Permanent
Account No.) |
AABCS6468G |
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Legal
Form : |
A public limited liability company. The company’s shares
are listed on the stock exchange. |
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Line
of Business : |
Manufacturing of medicines like Ampicillin, Trihydrate, S.
Sterilite, Amoxycillin, etc. |
RATING & COMMENTS
|
MIRA’s
Rating : |
Ba |
RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered
normal. Capable to meet normal commitments. |
Satisfactory |
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Maximum
Credit Limit : |
USD
6750000 |
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Status
: |
Satisfactory
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Payment
Behaviour : |
Usually
Correct |
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Litigation
: |
Clear |
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Comments
: |
Subject is a well established company having satisfactory
track. Directors are reported as experienced, respectable and resourceful
industrialists. The company’s recent IPO is successful . Trade relations are
fair. Payments are correct and as per commitment. The company can be considered good for normal business
dealings at usual trade terms and condition. |
LOCATIONS
|
Registered
Office / Factory |
Village
Saidpura, Tehsil Dera Bassi, District Patiala, Punjab, India |
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Tel.
No.: |
91-1762-308000/308001/231187/231287/231387 |
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Fax
No.: |
91-1762-231187 |
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E-Mail
: |
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Website
: |
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Area : |
Owned |
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Head
Office : |
19/5/1 Asian Court, Milagiriya Avenue, Colombo
4, Sri Lanka |
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E-Mail
: |
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Corporate
Office : |
110, Industrial
Area, Phase-I, Chandigarh-16002, Haryana, India |
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Tel.
No.: |
91-172-2658317/2655166/2655438/2655775 |
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Fax
No.: |
91-172-2655377 |
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E-Mail
: |
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Website
: |
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Area : |
2,500 sq.yds. -- Owned |
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Corporate
Office : |
SCO
38-39, Sector – 9-D, Chandigarth – 160009, Punjab |
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Tel.
No.: |
91-172-3047777/3047701 |
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Fax
No.: |
91-172-3047755 |
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Factory : |
Wagawatta Road, Horana Sri Lanka |
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Branches
: |
C/O Mr. Virendra
Kumar Bandi, Veer Villa’, ‘106 Mahavir Nagar, Ph: 91-731-2494389 1596, Bhagirath Palace, 1st Floor, Chandani
Chowk, Delhi, India |
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Administrative Office : |
48/1 Dickmans Road, Colombo 4, Sri Lanka |
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E-Mail: |
DIRECTORS
|
Name : |
Mr. Sanjiv Goyal |
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Designation
: |
Managing Director |
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Age : |
40 Years |
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Qualification
: |
B. Com.,
LLB |
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Experience
: |
11 Years |
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Previous
Employment : |
Surya
Pharmaceuticals Limited |
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Name : |
Mr. Raman Goyal |
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Designation
: |
Whole-time Director |
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Name : |
Mr. Rajesh Garg |
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Designation
: |
Director |
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Name : |
Mr. S P Singh |
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Designation
: |
Director |
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Name : |
Mr. V D Agarwal |
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Designation
: |
Director |
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Name : |
Mr. Vijay J Shah |
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Designation
: |
Director |
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Name : |
Mr. Aryan Goyal |
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Designation
: |
Executive Director |
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Other
Personal |
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Name : |
Mr. Sunder Lal |
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Designation
: |
Company Secretary |
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Qualification
: |
B. Com, F.C.S. |
KEY EXECUTIVES
|
Name : |
Mr. Sandeep Goel |
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Designation
: |
Vice Presidence (Finance) |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
Promoters
& their Associates |
9814164 |
65.93% |
|
Bodies
Corporate & Trusts |
3250152 |
21.83% |
|
Resident
Individuals |
1543982 |
9.91% |
|
Banks |
121750 |
0.82% |
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Clearing
Members |
57902 |
0.39% |
|
Mutual
Funds |
51362 |
0.35% |
|
Foreign
Institutional Investors |
39394 |
0.26% |
|
Non
Resident Indians |
7961 |
0.05% |
|
Total |
14886667 |
100.00 |
BUSINESS DETAILS
|
Line
of Business : |
Manufacturing
of medicines like Ampicillin, Trihydrate, S. Sterilite, Amoxycillin, etc. |
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Products
: |
Item Code No. Product Description 294110-02 Ampicillin Trihydrate and Amoxycillin Sodium Sterile 294110-03 Amoxycillin Triydrate and Amoxycillin Sodium Sterile 294110-04 Cloxacillin
Sodium and Cloxaillin Sodium Sterile |
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Exports
to : |
Singapore, Taiwan, Germany Nigeria and Hong Kong etc |
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Import
from : |
Germany and Korea |
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Terms
: |
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Selling : |
L/C, Cash or Credit (60 days) terms |
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Purchasing : |
L/C or Credit (45 days) terms |
PRODUCTION STATUS
|
Particulars |
Installed Capacity |
Actual Production |
|
Bulk Drug
and Sterile |
550.00 MT’s P.A. |
483.393 MT’s |
|
Job Work
Executed |
-- |
5.960 MT’s |
GENERAL INFORMATION
|
No. of
Employees : |
340 persons -- 40 persons in office and 300 persons in
factory |
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Bankers
: |
v
Punjab
National Bank, Sector- 16, Chandigarh v
State
Bank of India, Specialized Commercial Branch, Sector 17-B, Chandigarh |
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Facilities : |
SECURED LOANS Terms loan Rs. 795.440 millions Working capital limits
Rs. 610.600 millions Total Rs. 1406.040 millions |
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Banking Relations : |
-- |
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Auditors
: |
Datta
Singla and Company Chartered
Accountants S. C. O. 2935-36,1st Floor, Sector 22-C,
Chandigarh |
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Subsidiaries
: |
Chempharma Private Limited – Sri Lanka |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
35000000 |
Equity Shares of |
Rs.10/-
each |
Rs.
350.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
14886667 |
Equity Shares of |
Rs.10/-
each |
Rs.
148.866 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 |
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|
|
|
|
1] Share
Capital |
148.866 |
110.167 |
110.167 |
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3]
Reserves & Surplus |
1583.372 |
525.879 |
412.385 |
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NETWORTH
|
1732.238 |
636.046 |
522.552 |
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|
LOAN
FUNDS |
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|
|
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1]
Secured Loans |
1406.040 |
803.057 |
482.291 |
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|
2]
Unsecured Loans |
76.107 |
-- |
-- |
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TOTAL
BORROWING
|
1482.147 |
803.057 |
482.291 |
|
|
DEFERRED
TAX LIABILITIES |
148.455 |
123.926 |
107.995 |
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TOTAL
|
3362.840 |
1563.029 |
1112.838 |
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APPLICATION OF FUNDS
|
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FIXED ASSETS [Net Block]
|
1360.908 |
755.246 |
525.811 |
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Capital work-in-progress
|
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INVESTMENT
|
147.210 |
46.394 |
46.425 |
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DEFERREX TAX ASSETS
|
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CURRENT ASSETS, LOANS & ADVANCES
|
|
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Inventories
|
1136.841
|
739.338
|
440.344 |
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Sundry Debtors
|
871.882
|
532.802
|
397.262 |
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Cash & Bank Balances
|
195.128
|
89.544
|
70.243 |
|
|
Loans & Advances
|
715.130
|
224.490
|
121.043 |
Total Current Assets
|
2918.981
|
1586.174
|
1028.892 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
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Current Liabilities
|
1065.301
|
622.843
|
493.795 |
|
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Provision
|
5.588
|
213.607
|
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Total Current Liabilities
|
1070.889
|
836.450
|
493.795 |
|
Net
Current Assets
|
1848.092
|
749.724
|
535.097 |
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MISCELLANEOUS EXPENSES
|
6.630 |
11.665 |
5.505 |
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TOTAL
|
3362.840 |
1563.029 |
1112.838 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
3088.637 |
2331.608 |
2151.739 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
327.344 |
184.818 |
173.492 |
Provision for Taxation
|
47.313 |
36.157 |
36.572 |
Profit/(Loss) After Tax
|
280.031 |
148.661 |
136.920 |
|
|
|
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Export Value
|
468.727 |
305.574 |
483.461 |
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|
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Import Value
|
2016.982 |
1347.711 |
744.050 |
|
|
|
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Total Expenditure
|
2761.293 |
2146.791 |
1978.247 |
QUARTERLY
RESULTS
|
PARTICULARS |
30.06.2006 (1st Quarter) |
30.09.2006 (2nd
Quarter) |
31.12.2006 (3rd Quarter) |
|
Sales Turnover |
814.900 |
890.800 |
1214.900 |
|
Other Income |
47.600 |
50.500 |
58.200 |
|
Total Expenditure |
862.500 |
941.300 |
1273.100 |
|
Operating Profit |
714.900 |
755.200 |
1012.400 |
|
Interest |
147.600 |
186.100 |
260.700 |
|
Gross Profit |
21.700 |
47.900 |
69.800 |
|
Depreciation |
125.900 |
138.200 |
190.900 |
|
Tax |
19.800 |
21.300 |
21.200 |
|
Reported PAT |
15.200 |
16.800 |
17.700 |
|
|
90.900 |
100.100 |
152.000 |
200606 Quarter 1 –
During the Quarter under
review the Sales are up by 50% and net profit up by 95%, over the corresponding
quarter of last year. 2. The above financial results are on stand alone basis.
3. The above stand alone financial results were reviewed by Audit Committee and
taken an record by the Board in its meeting held on 27.07.2006. 4. The company
is exclusively in the pharmaceutical business segment. - 5. During the Quarter,
the Company has issued Foreign Currency Convertible Bonds of US$ 35 Million. 6.
Other income includes the interim dividend of Rs. 40.500 Millions as declared
by the wholly owned subsidiary of the company, M/s Chempharma Private.
Limited., Sri Lanka 7. Status of Complaints: a) Pending as on 01.04.2006 - Nil
b) Received During the Quarter - 5 c) Disposed Off During the Quarter - 5 d)
Pending as on 30.06.2006 – Nil
200609 Quarter 2 –
During the quarter under review the Sales are up by 12% and net profit up by 85%,over the corresponding quarter of last year. 2.The above financial results were reviewed by Audit Committee on 27.10.2006 and taken on record by the Board in its meeting held on 30.10.2006. 3.The above financial results are on stand alone basis. 4.The Company is exclusively in the pharmaceutical business segment. 5.Other income as on 30.09.2006 includes interim dividend of Rs. 41.801 Millions as declared by the wholly owned subsidiary of the Company. M/s Chempharma Private Limited., Sri Lanka. 6.Provision for Deferred Tax Liability as per AS 22 would be made in the Audited Results for the year 2006-2007. 7.Status of Complanits: (a).Pending as on 01.07.2006 NIL (b).Received During the quarter - 6 (c).Disposed during the quarter - 6 (d).Pending as on 30.09.2006 – NIL
200612
Quarter 3 –
Expenditure Includes (Increase)/Decrease in
stock in Trade Rs (293.754) million Consumption of Raw Material Rs 1065.756
million Staff Cost Rs 26.323 million Other expenditure Rs 214.118 million Tax
indicate Provision for Current Tax & FBT 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 03 Complaints disposed off
during the quarter 03 Complaints unresolved at the end of the quarter Nil 1.
During the Quarter under review the Sales are up by 57.62% and net profit up by
141.15%, over the corresponding quarter of last year. 2. The above financial
results are on stand alone basis. 3. The above financial results were reviewed
by Audit Committee on January 20, 2007 and taken on record by the Board in its
meeting held on January 22, 2007. 4. The company is exclusively in the
pharmaceutical business segment. 5. Other income as on December 31, 2006
includes the interim dividend of Rs 41.802 million as declared by the wholly
owned subsidiary of the company, M/s Chempharma Private, Limited., Sri Lanka.
6. Narbada Industries, Jammu becomes a unit of Nectar Lifesciences Limited
w.e.f. October 04, 2006. Earlier nectar was a major partner in it. 7. Provision
for deferred tax liability as per As 22 Would be made in the Audited Result for
the year 2006-07.
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
0.96 |
1.11 |
0.90 |
|
Long Term Debt-Equity Ratio |
0.53 |
1.11 |
0.90 |
|
Current Ratio |
1.40 |
1.67 |
1.73 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
2.55 |
2.54 |
3.23 |
|
Inventory |
3.06 |
3.74 |
5.11 |
|
Debtors |
4.09 |
4.74 |
6.32 |
|
Interest Cover Ratio |
5.03 |
3.37 |
3.58 |
|
Operating Profit Margin(%) |
16.78 |
14.54 |
13.23 |
|
Profit Before Interest And Tax Margin(%) |
14.22 |
11.92 |
10.90 |
|
Cash Profit Margin(%) |
12.31 |
8.65 |
7.14 |
|
Adjusted Net Profit Margin(%) |
9.75 |
6.03 |
4.80 |
|
Return On Capital Employed(%) |
17.63 |
21.68 |
25.82 |
|
Return On Net Worth(%) |
23.64 |
22.95 |
21.44 |
STOCK PRICES
|
Face Value |
Rs. 10/- |
|
High |
Rs. 128.00 |
|
Low |
Rs. 117.60 |
LOCAL AGENCY FURTHER INFORMATION
The company in its eighth year of operation has achieved a
sale turnover of Rs. 2206.885 millions. The company has achieved Net Profit
after tax of Rs. 148.661 millions, which is 8.57% more as compared to previous
year .
During the year the company has exported its products namely
Ampicillin Sodium Sterile, Cloxaime Sodium Sterile, Certriaxone Sodium Sterile,
Cefazolin Sodium Sterile to Singapore, Taiwan, Germany Nigeria and Hong Kong
etc. The company is further making efforts to export new products in the new
markets and in the current year the company further expects better its export
sales.
Fixed Assets :
Land And Building , Tube Well, Plant And Machinery, Boiler,
Pollution Control Equipment, Laboratory, Miscellaneous Fixed Assets, Furniture
And Fixture, Motor Vehicles, Computer Capital Work In Progress
Operations
During the year 2005-2006, the company achieved sales turnover of Rs.3104.664
Millions registering 34.16% increase over the previous year (Rs.2314.116
Millions). Income before interest and depreciation increased to Rs.482.081
Millions registering 50.43% increase over the previous year (Rs.320.463
Millions). The net profit increased to Rs. 255.501 Millions registering 92.50%
increase over the previous year (Rs. 132.730 Millions). The Directors expect a
consistent growth in company's performance in the years to come.
Initial Public Offering
Pursuant to the Red Hearing Prospectus dated 07.06.2005 and Prospectus dated
30.06.2005, the Company made an Initial Public Offering of 3,870,000 equity
shares of Rs. 10/- each for cash at a price of Rs. 240/- per equity share
through 100% Book Building Process. The issue was oversubscribed by around 15
times. The Amount of Rs. 928.800 Millions has been realized by the Company from
this issue and after the Issue the paid up share capital has been increased to
Rs. 148.866 Millions and its securities premium account increased to Rs.
985.933 Millions
On 18.07.2005 the equity shares of the Company were listed on National Stock
Exchange of India Limited (NSE) and Bombay Stock Exchange Limited (BSE).
Foreign Currency Convertible Bonds
Pursuant to the authority granted by the Members in their
Extra-Ordinary General Meeting held on 15.12.2005, the Company as successfully
raised the funds from international market, to he tune of US$ 35,000,000 by way
of Foreign Currency Convertible Bonds (FCCBs). The FCCBs are allotted in the
Board of Directors' Meeting held on 25.04.2006.
The FCCBs are listed on Singapore Exchange Securities Trading Limited. Each
bondholder has a right to convert the bonds at any time after 04.06.2006 into
equity shares of the Company at a predetermined price of Rs. 331.740 at a
predetermined exchange rate of US $ 1 = Rs. 44.6725. The conversion price can
be adjusted on the happing of particular events as specified in the Terms and
Conditions of the FCCBs.
Projects Under Implementation
STERILE CEPHALOSPORIN - USFDA APPROVABLE PLANT-DERABASSI
The company is expanding further in the field of
Cephalosporins. Further capacities are being added for Cefotaxime Sodium
Sterile and Ceftriaxone Sodium Sterile. The production facilities would be
constructed on the landavailable at the Derabassi (Unit II) After the
completion of the project the Company believes that the project will (i)
increase its capacity to produce cephalosporin by up to 30 per cent. (ii)
provide it with the ability to cater to regulated markets, such as North
America and Europe.
EMPTY HARD GELATIN CAPSULE PLANT AT BADDI, HIMACHAL PRADESH
The company is putting up a Empty Hard Gelatine Capsule Unit
at Baddi. The 16 machines capsule manufacturing project shall have the
installed capacity to manufacture 7128 million pieces of capsules per annum in
various sizes. The total cost of project is estimated around Rs. 350.000
Million. The land has been acquired in Baddi, Himachal Pradesh and necessary
approval from various authorities has been obtained to start the construction
work and erection of plant & machinery. The products manufactured would be
sold both in domestic and international market to the existing and new
formulation units which are growing day by day.
The company would be entitled certain tax benefits which are allowed by the
Central and Himachal Pradesh Government for setting up the projects in the
Baddi.
FORMULATION UNIT AT BADDI, HIMACHAL PRADESH
The formulation project costing Rs. 400.000 Million
approximately includes setting up of the following manufacturing and their
packaging facilities.
v Tablet Section;
v Capsule Section;
v Dry Powder Vial (injectable);
v Dry Syrup Section
The proposed new unit will introduce their presence in the formulation segment.
The setting up of this plant is in line with their long-term objectives of
entering into high value and new generation cephalosporin drug segment, which
will enable us to provide a one step further value added product to its clients
instead of supplying only the bulk drug.
Their Company has already acquired five (5) acres of land at
Baddi. They propose to increase their export sales with the implementation of
the new project. Their Company would be employing batch type processes for
manufacturing the various newly proposed products.
Baddi has emerged to be the preferred investment destination
for most of the leading pharmaceutical companies in India and they understand
that more than fifteen (15) pharmaceutical projects are under implementation at
Baddi. Their proposed facility at Baddi would be eligible for certain tax
breaks including:
Particulars Remarks
Income-tax First five years 100% tax holiday and subsequent five years at
30% under section 80(1B) of the Income-tax Act, 1961
Excise duty Ten (10) years Excise Duty exemption
Sales tax One (1) per cent Central Sales Tax up to 2009
PHYTOCHEMICALS AND HERBALS FACILITIES
The company proposes to enter in the arena of Phytochemical manufacturing. A
Phytochemical (fight-o-chemical) is a natural bioactive compound found in
fruits and vegetables that works together with vitamins, minerals, and fiber to
promote good health in many ways. These are nonnutritive plant chemicals that
contain protective, diseasepreventing compounds. More than 900 different phytochemicals
have been identified as components of food, and many more phytochemicals
continue to be discovered today. The cost of project of the proposed Phyto
Chemicals & Herbals is around Rs. 800.000 Million.
The company proposes to enter the Phyto chemicals arena with the manufacturing
Menthol and its allied products to start with and range would be added over
years.
Dividend
During the current Financial Year the Company has
declared an Interim Dividend @ 10% on the equity shares of the company. In view
of the ongoing expansion and diversification projects, the directors are not
recommending any more dividends for the financial year 2005-2006 and the
interim dividend so declared may be treated as final dividend.
Management Discussion and Analysis
OVERVIEW
Nectar Lifesciences (NecLife) is a manufacturer of
off-patented Semi Synthetic Penicillin (SSP) and cephalosporin-based oral and
sterile bulk drugs and also engages in certain contract manufacturing for
pharmaceutical companies. The Company's principal production facility is
located at Unit I in Punjab, India and produces oral and sterile forms of SSPs
and cephalosporins. An expansion project is under way at Unit II, which is
close to the existing production facility.
In April 2003, the Company was awarded recognition as an 'Export House'
by the Indian Director General of Foreign Trade. Nectar Lifesciences has also
received WHOGMP certification from the State Drugs Controlling Authority,
Directorate of Health and Family Welfare, Punjab for some of its products,
including ceftriaxone sodium (sterile), cefazolin sodium (sterile), cefuroxime
sodium (sterile), ceftazidim for injection (sterile) and cefepime for injection
(sterile).
Company has recently filed Drug Master File for one of its
Oral Cephalosporin Active Ingredient both with US-FDA (US Food & Drug
Administration) and EDQM (European Directorate of Quality & Medicines).
After these filing company expects to get inspected by the concerned
authorities within stipulated time-lines.
The market for Cephalosporins in USA & EU is
estimated at around USD 6 billion and many leading products in Cephalosporins
are off-patent now in USA & EU.
This is the first step toward moving to regulated and
lucrative markets like USA & EU. Nectar will file around 7-8 DMFs in
current fiscal year. The company is all geared up to provide integrated
solutions as complementing partner to the global pharmaceutical industry and
this move is in line with that thought process and business model. Further, the
company will continue it's focus in markets like India, APAC, Middle East,
Latin America and other markets where Nectar is well poised as a preferred
quality supplier.
INDUSTRY STRUCTURE AND DEVELOPMENTS
Nectar Lifesciences operates in the global as well as
domestic pharmaceutical industry. Neclife's business model is focused on
development, manufacturing and marketing of active pharmaceutical ingredients.
Neclife also undertakes drug discovery and development.
The size of the global pharmaceutical industry is
estimated to be USD 602 billion in 2006 as per the latest IMS estimates. The
industry has been growing at 5 to 8 percent over the last few years. North
America is the largest and fast growing pharmaceutical market in the world with
a retail sale of USD 265.7 billion (44%). European Union accounts for USD 169.5
billion (28%) while Japan accounts for USD 60.3 billion (10%). The premier
regulated markets of the world i.e., US, EU and Japan account for USD 495.5
billion sales, constituting as much as 82% of the global retail sale. Neclife
has major market opportunities in the product segments chosen. The global
infectives market is valued at around USD 35 to 40 billion.
The market for Cephalosporins in USA & EU is estimated at around USD
6 billion and many leading products in Cephalosporins are off-patent now in USA
& EU.
OPPORTUNITIES & OUTLOOK
Strong presence in the Cephalosporin segment
Within the anti-infective segment, Cephalosporins are
the fastest growing category in India with a compounded growth rate of 15% over
the last five years. Internationally, Cephalosporins are a part of the top 10
drug classes with aggregate sales amounting to $7.6 billion. Neclife is
well-placed in this growing therapeutic category due to its robust product
pipeline, manufacturing expertise, research and development capabilities and
aggressive marketing focus.
To further strengthen their position in the
fast-growing cephalosporin segment, Nectar Lifesciences has adopted a four
pronged strategy:
Expansion of the installed capacity: Currently, an expansion project is under
implementation in the oral and sterile cephalosporin segment and the company is
also in the process of setting up an additional sterile cephalosporin
manufacturing unit at Derabassi (Unit 2). The setting up of this unit is in
line with the company's long-term objective of increasing its presence and
establishing itself in the cephalosporin segment. Post expansion, Nectar's
product range would comprise:
Oral cephalosporins: Cefixime Trihydrate, Cefdinir,
Cefuroxime Axetil, Cefpodoxime Proxetil.
Sterile cephalosporins: Cefotaxime Sodium, Ceftriaxone
Sodium, Ceftazidime Sodium, Cefuroxime Sodium, Cefazolin Sodium, Cephalothin
Sodium, Cefepime Arginine, etc. etc.
Addressing the high-end Cephalosporin market: to ensure superior operating
margins and simultaneously transform itself from an API focused player in
cephalosporins to a company present in the high-margin specialised
cephalosporin segment, Nectar intends to focus on the high value cephalosporin
range. Being one of the largest manufacturers of cephalosporins in India, the
company is well equipped with the necessary infrastructure in terms of R&D
facilities, skilled manpower and efficient manufacturing set-up to develop high
end cephalosporins and produce them on a commercial basis. As high end
cephalosporins offer better margins, in the future, Nectar is planning to
increase the share from this segment in its product mix.
Forward integration: After consolidating its presence in the cephalosporin
segment, Nectar intends to forward integrate and foray into the manufacture of
cephalosporin-based formulations. As a step in this direction, the company
plans to set up a US FDA certified formulations unit at Baddi. The new facility
is expected to be operational by September 2006.
This strategic move will confer multiple benefits to the
company: Access to the regulated markets: This US FDA certified facility will
enable Nectar Lifesciences to sell its products in the regulated US market,
which is a large market with huge volume business and superior product
realisations. Increased operating profits: The proposed entry into the high
value formulations market would directly result in higher operating margins
earned by the company, when compared to its present business in bulk drugs. The
company is also putting up a Empty Hard Gelatin Capsule Unit.
Backward integrated into drug intermediates: Nectar has a wholly owned
subsidiary in Sri Lanka, Chempharma Private Limited, which manufactures drug
intermediates, a majority of which is captively consumed to manufacture bulk
drugs. This subsidiary makes the company fully integrated: right from drug
intermediates to bulk cephalosporins to formulations products, thereby helping
Nectar consolidate its presence across the entire cephalosporin value chain.
After the proposed expansion, forward and backward integration, Nectar
Lifesciences would emerge as one of the largest integrated producers of the
entire range of cephalosporin drugs in the country.
Contract Manufacturing
Their manufacturing
plants can produce a wide range of products through a synergy of processes.
Their versatile manufacturing setup, which can be upgraded through a minimal
amount of investment, helps the company respond to changing customer demands,
ensuring a profitable relationship for both the company and customers who do
not have to spend on manufacturing. As a result, today, they provide contract
manufacturing services to some of the India's leading pharmaceutical companies.
Their R&D focus on process improvements, lowering manufacturing costs and
improving process reengineering capabilities has enabled us to undertake large
and complex manufacturing contracts.
PRODUCT WISE PERFORMANCE
Their existing business operations are primarily concentrated on manufacturing
and marketing of Semi Synthetic Pencillins (SSPs) and Cephalosporins. They
currently manufacture and sell comprehensive range of both Oral and Sterile
SSPs and Cephalosporins. They also engage in certain contract manufacturing for
major pharmaceutical players. With an objective of diversifying its operations
(present purely antibiotics) and expanding its product portfolio they are
entering into Nonantibiotics therapeutic segments.
The oral bulk drugs manufactured by their Company are semisynthetic
Penicillin, viz, Penicillin G based products, Semi synthetic Cephalosporins,
and Cephalosporins. Sterile drugs are also manufactured in bulk form, which are
taken in injectible form, viz., Semi synthetic Penicillins and Cephalosporins.
The drugs intermediates manufactured are consumed captive to manufacture SSPs
and Cephalosporins. The Sterile bulk drugs manufactured by the company are
filled in vials / injections having various dosages such as 250 mg, 500mg, and 1gm.
They are also engaged in Capsule formation.
Their Company has achieved sales of Bulk drugs of Rs.
2872.508 Millions for the financial year ended 31.03.2006. Domestic sales
achieved during this period was Rs. 2043.841 Millions, whereas the export sales
achieved was Rs. 828.667 Millions.
AS PER WEBSITE
NECTAR LIFESCIENCES UNDERGOING RS.900.000 MILLIONS EXPANSION
TO RAISE CAPITAL THROUGH AN IPO
Chandigarh; 30.05.2005: Nectar
Lifesciences Limited (“Company”) proposes to undergo a Rs.900.000 Millions expansion.
The company is coming out with an Initial
Public Offer to finance the Sterile Cephalosporin US FDA approvable
plant at DeraBassi near Chandigarh and a formulations facility at Baddi in
Himachal Pradesh. The resources raised would also be utilized towards the
Research & Development and Corporate Quality Control Centre of the company
also to be put up at Dera Bassi.
The Initial Public Offere would constitute
of 3,870,000 Equity Shares of Rs.10 each consisting of Fresh Issue of Equity
Shares. The Offer would constitute 26% of the fully diluted post Offer paid-up
capital.
Nectar Lifesciences is one of the few
companies in India having facilities to manufacture Oral and Sterile bulk drugs
and supplies to major pharma players in the Indian. The company is among the
leading players in the Sterile SSP and Sterile Cephalosporins in the domestic
market. The c urrent expansion plan underway would enable the company to
increase its presence in the Cephalosporin segment and enter the Non-Antibiotic
segment.
The existing and proposed expansion would
increase the Company’s presence in the Cephalosporins segment, enables it to
enter into non-antibiotic and formulations segment along with providing the
Company with the ability to cater to the regulated markets. The formulations
unit at Baddi is in line with Company’s forward integration strategy whereby it
would supply the final product, as a one step further value added, to its
customers.
Group Companies
The principal group company is Chempharma
Private. Limited. based in the Exports Oriented (tax free) zone in Sri Lanka ,
and is a wholly owned subsidiary of the Company. CPL was set up due to economic
and tax benefits of manufacturing products in Sri Lanka . In addition to
certain economic benefits of manufacturing products in Sri Lanka the project
has been conceptualized to take advantage of (i) ‘Nil’ custom duty on imports
of pharmaceutical raw material by CPL (ii) ‘Nil’ customs duty payable on
exports of API intermediates by CPL to India and (iii) Income-tax exemption.The
arrangement provides their Company the advantage of reducing its cost of
production on account of reduction in customs duty payable on imported raw
materials consumed for domestic market.
AS PER WEBSITE
Chandigarh-based Nectar
Lifesciences Limited (NecLife) is amongst the largest
manufacturer and exporter of Cephalosporins and Semi Synthetic Penicillins.
Located in the foot hills of Himalayas, the manufacturing facilities in the
state of Punjab – India are spread over a massive area of 500,000 Square
Meters.
Chandigarh-based Nectar Lifesciences Limited (NecLife)
is amongst the largest manufacturer and exporter of Cephalosporins and Semi
Synthetic Penicillins. Located in the foot hills of Himalayas, the
manufacturing facilities in the state of Punjab – India are spread over a
massive area of 500,000 Square Meters.
Nectar Lifesciences was incorporated in
1995 by Mr. Sanjiv Goyal as a Joint Venture with Punjab State Industrial
Development Corporation Limited. (a Punjab State Government undertaking) for
the manufacture of oral and sterile (both lyophilized and crystalline) range of
APIs and formulations with manufacturing facilities at Derabassi, Punjab.
WHOLLY OWNED SUBSIDIARY
ChemPharma (Private) Limited, a wholly
owned subsidiary of NecLife is located at a distance of about 30 kilometers
from Colombo in Sri Lanka.
The facility manufactures bulk Active
Pharmaceutical Ingredients and various drug intermediates. The facility is a
100% Export Oriented Unit.
The day to day affairs of the company are
managed by Mr. Sanjiv Goyal in the capacity of Managing Director, a 1st
generation entrepreneur under the superintendence control and direction of the
Board of Directors of the company:
Mr. Sanjiv Goyal is assisted by a selected
team of professionals from various fields that form the core management and is
responsible for formulating growth strategies and future course of action to be
adopted.
WEALTH OF EXPERTISE
The company has a wealth of expertise in terms of seasoned and
experienced professionals from the field of marketing, finance, production, R
& D and other operational areas. NecLife recognizes that people are its
most valuable asset and their hard work and dedication leads to success of a
company.
Nectar Lifesciences Limited. (NecLife) is one of the few
qualitative manufactures in India having facilities to develop, manufacture
& market Oral and Sterile Cephalosporins, Semi Synthetic Penicillins and
other Active Pharmaceutical Ingredients (APIs).
• They are
amongst the few life saving APIs manufacturing companies, possessing facilities
to produce sterile APIs through both Lyophilization and Crystallization
processes.
• They have
ultra modern manufacturing facilities supported by a very strong technology
group. It is a preferred Supplier to reputed / qualitative formulators in India
and abroad.
• The company has a recognized
‘EXPORT HOUSE’ status with more than 36 per cent of the revenues coming from
export sales. Their products are exported to over 70 countries across 5
continents.
•
Their products are WHO-GMP certified.
About Nectar Lifesciences Limited
Nectar Lifesciences Limited is player in
SSP and Cephalosporin range of intermediates, Oral & Sterile bulk drugs and
drugs in dosage forms like Capsules and injectibles. The Company is one of the
few companies in India having facilities to manufacture Oral and Sterile bulk
drugs. The company has a fully operational subsidiary Chempharma Private
Limited. (“CPL”) in Sri Lanka which has resulted in cost savings. Nectar has
been awarded recognition as an “Export House” by the Director General of
Foreign Trade, Ministry of Commerce, and Government of India.
Nectar Lifesciences
Limited had come out with an Initial Public Offer of 3,870,000
Equity Shares of Rs.10 each and has recently got on BSE and NSE. The revenues
for the Company have increased at a CAGR of 14.9% over the period FY00-05. For
the year ended March 31, 2005 on consolidated basis, the company achieved a
sales turnover of Rs.2298 millions
with an EBIDTA of Rs. 431 millions.
The Profit After Tax for the company for March 31, 2005 was at Rs.218.8 millions.
For more information:-
Harshwardhan Singh
Mutual PR, New Delhi
Tel: 011-24339863
Email: harsh@mutualpr.com
Nectar Lifesciences Lists at 25% Premium on NSE at Rs.300
Nectar Lifesciences Limited
today got listed at 25% on NSE at Rs.300, on BSE the company got listed at
Rs.298.90. The stock was issued at Rs.240, the upper end of the price band.
The company came out with an IPO of
38,70,000 equity shares of Rs.10 each which closed for subscription on
28.06.2005 . The IPO had received a huge response from the investing community
and was subscribed more than 15 times at Rs.240/-the upper end of the price
band.
The Qualified Institutional Buyers (QIB)
portion was subscribed around 19 times whereas the High Networth Individuals
(HNI’S) has been subscribed 15 times. The retail individual bidders saw the
subscription of 12 times. The Total numbers of application received by the
company was 99577 showing a huge overall response.
Nectar is among the leading manufacturer
and exporter of Sterile Cephalosporins and Sterile Semi Synthetic Penicillin’s
in India had come out with an Initial
Public Offer of 3,870,000 Equity Shares of Rs.10 each.
Business News
Nector
Lifesciences goes for expansion, boosts exports
Kolkata, Jun 16 (UNI) Nector Lifesciences
Limited,India's second largest manufacturer of Cephalosporin range of drugs,is
poised for a Rs 86 crore capacity expansion cum modernisation programme at its
Baddi(HP) and Derabassi(Punjab)plants to boost export volumes.
Announcing this NLL Managing Director Sanjiv
Goal here today said with a view to raising necessary funds they are entering
the capital market on June 22 for about a week with an Initial Public Offerings
(IPO) with 3870,000 equity shares of Rs ten each.
The funds being raised through the IPO would
be entirely used for financing the formulating facility at the Company's new
Baddi plant in Himachal Pradesh at a cost of Rs 312 millions, besides the expansion of the sterile
cephalosphin approved plants and its Research and Development facilities at
Derabassi near Patiala in Punjab at a total cost of Rs 61 crores, Mr Goal said.
He said following the implementation of the
capacity exapansion programme by next year, the overall export basket of NLL
would go up from about 25 per cent of total sales to at least 50 per cent of
that figure from 2005-06.
"Last year their export volume was to
the tune of Rs 650 millions
which they expect to go up to over Rs 2000 millions
from next year," Mr Goal said adding
that during the period the number of exporting countries would also go up from
21 in the Middle East,Latin America,South East Asia and the SAARC countries to
around 30 after clinching fresh orders from the USA and several European
countries.
Also keeping the future growth in mind NLL
had set up a wholly owned subsidiary called Chempharma Private Limited near
Colombo in Sri Lanka in 2004 with a total investment of about Rs 200 millions
to work as an intermediatary unit. The Sri
Lanka unit which produced only semi-finished products and capsules, sent their
products to NLL national plants for exports."However, we have no plan for
capacity expansion in their Sri Lanka unit," he said.
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. 44.09 |
|
UK Pound |
1 |
Rs. 86.59 |
|
Euro |
1 |
Rs. 57.92 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP
CAPITAL |
1~10 |
5 |
|
OPERATING
SCALE |
1~10 |
5 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT
LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT
POINTS |
|
|
|
--BANK
CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER
ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT
POINTS |
|
|
|
--SOLE
DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT
ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/ NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
46 |
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 |