MIRA INFORM REPORT
|
Report
Date : |
26.12.2006 |
IDENTIFICATION
DETAILS
|
Name : |
MICRO LABS LIMITED |
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Registered
Office : |
No. 303, A Wing, Queens Corner Apartments, No. 3, Queens
Road, Bangalore – 560 001, Karnataka, India |
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Country
: |
India |
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Financials
(as on) : |
31.03.2004 |
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Date
of Incorporation : |
07.09.1973 |
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Com.
Reg. No.: |
08-2401 |
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CIN
No.: [Company
Identification No.] |
U32106KA1973PLC002401 |
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TAN
No.: [Tax
Deduction & Collection Account No.] |
BLRM02191A |
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Legal
Form : |
It is a closely held public limited liability company. |
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Line
of Business : |
Manufacturers, Importers, Exporters and Traders of
pharmaceuticals, medicines and allied health care products. |
RATING & COMMENTS
|
MIRA’s
Rating : |
A |
RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
56-70 |
A |
Financial & operational base
are regarded healthy. General unfavourable factors will not cause fatal
effect. Satisfactory capability for payment of interest and principal sums |
Fairly Large |
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Maximum
Credit Limit : |
USD
8000000 |
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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 and reputed company having
fine track. Directors are reported as
experienced, respectable and resourceful businessmen. Their trade relations are reported as
fair. Financial position of the company is satisfactory. 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 : |
No. 303, A Wing, Queens Corner Apartments, No. 3, Queens
Road, Bangalore – 560 001, Karnataka, India |
|
Tel
No.: |
91-80-22269609
/ 22268785 / 22267705 / 2088194-97 |
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Fax
No.: |
91-80-22256323
/ 22281627 |
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E-Mail
: |
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Website
: |
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Area : |
5000
Sq.ft |
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Location
: |
Rented |
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Corporate
office : |
27 Race
Course Road, Bangalore - 560001, Karnataka, India |
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Tel
No.: |
91-80-22370451-57 |
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Fax
No.: |
91-80-22370463 |
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E-Mail
: |
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Head
Office : |
45/3, Fairfield Layout, Race Course Road, Bangalore- 560001,
Karnataka, India |
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Factory
: |
·
92,
Sipcot Industrial Complex, Hosur – 635 126, Tamil Nadu, India Tel. No. 91-4344-276618 / 277261 ·
RS
24/3 & 4, Thirubuvanai Village, Mannadipet Commune, Pondicherry, India Tel No. 91-481-2640015 / 023 Fax No. 91-413-2644641 ·
15/A,
2nd Phase, Kumbalgodu Industrial Area, Bangalore – 560 074,
Karnataka, India Tel. No. 91-80-8437351 ·
S-
155/159, Verna Industrial Estate, Verna, Goa- 403722 |
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Branches
: |
Located
at: ·
60,
2nd Main Road, Gandhinagar, Chennai – 600 020, Tamil Nadu, India ·
No.
269 Goyal Nagar, Indore, Madhya Pradesh, India ·
No.
25, Sangeti Arcade Opp., Pandharpur Bus Stand MIDC, Waluj, Aurangabad,
Maharashtra, India ·
R-7
/ 184, Raj Nagar, Ghaziabad – 201 002, Uttar Pradesh, India ·
107
/ 2 / 5, Manohar Pukur Road, Ground Floor (West), Kolkata – 700 026, West
Bengal, India ·
No.
48, Industrial Area, Phase I, Cabin No. 4, Chandigarh, India ·
1st
Floor, 1-8-215 / 24, L. B. Nagar, Colony, P. G. Road, Secunderabad – 500 003,
Andhra Pradesh, India ·
No.
7, 1st Floor, Commercial Building, S. K. Puri, Patna – 800 001,
Bihar, India |
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DIRECTORS
|
Name : |
Mr. Dilip Surana |
|
Designation
: |
Managing Director |
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Date
of Birth/Age : |
37 years |
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Qualification
: |
B. Com. |
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Experience
: |
16 years |
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Name : |
Mr. Tejraj Jain |
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Designation
: |
Director |
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Name : |
Mr. Anand Surana |
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Designation
: |
Director |
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Name : |
Mrs. Archana Surana |
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Designation
: |
Director |
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Date
of Birth/Age : |
38 years |
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Name : |
Mrs. Monica Surana |
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Designation
: |
Director |
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Other
Personnel: |
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Name : |
Mr. Sanjay Jain |
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Designation
: |
Financial Adviser |
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Name : |
Mr. A. S. N. Murthy |
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Designation
: |
Financial Manager |
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Name : |
Mr. R Kulkarni (B.E.) |
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Designation
: |
General Manager (Marketing) |
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Name : |
Mr. G. Jayaraj |
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Designation
: |
General Manager (Production) |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
|
Mr. G.C.
Surana |
7,212,200 |
|
Mr. Dilip
Surana |
3,360,000 |
|
Mr. Anand
Surana |
3,360,000 |
|
Mr. B.
Bai Surana |
3,360,000 |
|
Ms.
Archana |
3,360,000 |
|
Ms.
Monica Surana |
3,355,800 |
|
Ms. Amita
Siroze |
4,200 |
BUSINESS DETAILS
|
Line
of Business : |
Manufacturers, Importers, Exporters and Traders of
pharmaceuticals, medicines and allied health care products. |
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Products
: |
v Pharmaceutical Formulation v Medicines v Allied Health Care Products |
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Exports
to : |
Africa, South East Asia, Southern African Countries,
Caribbeans, Central America, South America, Eastern Europe, Russia, CIS and
SAARC Countries, Middle East Countries, etc. |
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Imports
from : |
Hong
Kong, China, Germany, UK and Holland |
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Terms
: |
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Purchasing : |
Cash or
Credit (120 days) terms. |
PRODUCTION STATUS
|
Particulars |
Unit |
Production |
|
Tablets |
Nos. in
millions |
1867.681 |
|
Capsules |
Nos. in
millions |
182.426 |
|
Liquids |
Nos. in
Ltrs thousands |
0.058 |
|
Ointments
|
Nos. in
Kgs. thousands |
65.451 |
|
Powders |
Nos. in
Kgs. thousands |
35.369 |
GENERAL INFORMATION
|
Suppliers
: |
v
Forun
Products Limited, UK v
Sicor
SPA, Italy v
Huck
Foline GMBH, Germany v
Ranlaxy
Labs Limited, Germany v
Wetex
Chemicals Company, Hong kong v
Ranbaxy
Laboratories Limited, New Delhi v
Dr.Reddy’s
Laboratories Limited, Hyderabad |
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Customers
: |
Some of
its customers are: v
State
Government Hospitals in Tamilnadu, Karnataka, etc. Some
Wholesalers are: v
Raikar
Distributors, Margoa, Goa v
Sterling
Agencies, Ahmedabad v
Aditya
Pharma, Indore v
Monarch
Pharma, Bangalore v
State
Pharmaceuticals Corporation, Sri Lanka v
Centre
Specialities, France v
National
Phyto Pharmaceuticals, Vietnam v
Stitching
IDA, Netherland |
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No. of
Employees : |
2500 |
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Bankers
: |
·
Canara
Bank, Industrial Finance Branch, No. 83, Rechmond Road, Bangalore - 560025, Karnataka, India ·
Canara
Bank, Anna Nagar Branch, Chennai, Tamil Nadu, India ·
State
Bank of India, Bangalore Commercial Branch, Krishi Bhavan, Hudson Circle, J
.C. Road, Bangalore – 560001 ·
Standard
Chartered Bank, Raheja Towers, 6th Floor, No. 26-27, M. G. Road,
Bangalore – 560001, Karnataka, India |
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Facilities : |
Ø Cash Credit from Canara Bank of
Rs. 925.633 millions Ø ICICI Bank against Hypothecation
of Vehicles of Rs. 0.117 millions |
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Banking Relations : |
Satisfactory |
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Auditors
: |
Ostawal & Jain Chartered Accountants |
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Tel.
No.: |
91-80-2213346/1899 |
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Address: |
#430,
Avenue Road, Bangalore – 560 002, Karnataka, INDIA |
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Associates
: |
·
Micro
Nova Pharmaceuticals Limited Manufacturers of Pharma Products ·
Brown
& Burk Pharmaceuticals Limited Manufacturers of Pharma Products ·
Inpharma
Private Limited Manufacturers of Pharma Products ·
Micro
Exports Exporters of Pharma Products ·
Surana
Pharmaceuticals Private Limited ·
Siroya
Constructions, Bangalore |
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Subsidiaries: |
·
Eros
Pharma Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
34,000,000 |
Equity
Shares |
Rs. 10/- |
Rs. 340.000 Millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
20,160,000 |
Equity
Shares |
Rs. 5/- |
Rs. 100.800 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2004 |
31.03.2003 |
31.03.2002 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share
Capital |
100.800 |
100.800 |
100.800 |
|
|
2]
Reserves & Surplus |
1904.337 |
1303.645 |
860.610 |
|
NETWORTH
|
2005.137 |
1404.445 |
961.410 |
|
|
LOAN
FUNDS |
|
|
|
|
|
1]
Secured Loans |
507.151 |
92.749 |
154.143 |
|
|
2]
Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
TOTAL
BORROWING
|
507.151 |
92.749 |
154.143 |
|
DEFERRED TAX LIABILITIES
|
14.540 |
0.000 |
0.000 |
|
|
|
|
|
|
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TOTAL
|
2526.828 |
1497.194 |
1115.533 |
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APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
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|
FIXED ASSETS [Net Block]
|
418.742 |
180.314 |
166.078 |
|
Capital work-in-progress
|
208.460 |
55.800 |
34.460 |
|
|
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INVESTMENT
|
197.686 |
218.879 |
11.203 |
|
|
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CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
523.840 |
454.206 |
362.303 |
|
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Sundry Debtors
|
763.377 |
596.749 |
479.788 |
|
|
Cash & Bank Balances
|
139.463 |
63.209 |
98.016 |
|
|
Loans & Advances
|
612.881 |
292.392 |
280.482 |
Total Current Assets
|
2039.561 |
1406.556 |
1220.589 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
278.026 |
186.385 |
202.554 |
|
|
Provisions
|
59.595 |
177.970 |
114.223 |
Total Current Liabilities
|
337.621 |
364.355 |
316.777 |
|
Net
Current Assets
|
1701.940 |
1042.201 |
903.812 |
|
|
|
|
|
|
|
TOTAL
|
2526.828 |
1497.194 |
1115.553 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2004 |
31.03.2003 |
31.03.2002 |
Sales Turnover [including other income]
|
2336.268 |
1938.016 |
1812.757 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
642.067 |
493.612 |
423.893 |
Provision for Taxation
|
48.159 |
39.434 |
35.247 |
Profit/(Loss) After Tax
|
593.908 |
454.178 |
388.646 |
|
|
|
|
|
Export Value
|
217.866 |
141.922 |
82.707 |
|
|
|
|
|
Import Value
|
157.922 |
165.908 |
129.279 |
|
|
|
|
|
Total Expenditure
|
NA |
NA |
1388.860 |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2004 |
31.03.2003 |
31.03.2002 |
PAT / Total Income
|
(%)
|
25.42 |
0.23 |
0.21 |
|
|
|
|
|
|
Net Profit Margin
(PBT/Sales) |
(%) |
27.48 |
0.25 |
0.23 |
|
|
|
|
|
|
Return on Total Assets
(PBT/Total
Assets} |
(%) |
26.11 |
0.27 |
0.30 |
|
|
|
|
|
|
Return on Investment (ROI)
(PBT/Networth) |
|
0.32 |
0.35 |
0.44 |
|
|
|
|
|
|
Debt Equity Ratio
(Total
Liability/Networth) |
|
0.42 |
1.33 |
1.49 |
|
|
|
|
|
|
Current Ratio
(Current
Asset/Current Liability) |
|
6.04 |
3.86 |
3.85 |
LOCAL AGENCY FURTHER INFORMATION
The company is in trade terms with:
·
Dr.
Reddy’s Laboratories Limited, Hyderabad, Andhra Pradesh, India
·
Ranbaxy
Laboratories Limited, New Delhi, India
·
Lark
Chemicals Private Limited, Mumbai, India
·
Aurobindo
Pharma Limited, Hyderabad, Andhra Pradesh, India
|
Name
of the company |
MICRO LABS LIMITED |
|
Presented By |
State Bank of India, Bangalore
Commercial Branch, Krishi Bhavan, Hudson Circle, J .C. Road, Bangalore –
560001 |
|
1) Date
and description of instrument creating the change |
Date
27.08.2003 Equitable
mortgage by deposit of title deed letter confirming deposit of title deeds. Letter
regarding the grant of individual limits within the overall limit Both the
above pertain to same charge. |
|
2) Amount
secured by the charge/amount owing on the securities of charge |
Rs.
130.000 Millions |
|
3) Short
particular of the property charged. If the property acquired is subject to
charge, date of the acquired of the property should be given |
Equitable
mortgage of company’s immovable properties situated at Plot No. 124 measuring
East to West 125 + 121/2 Mtrs and North to South 51 + 73.6/2 Mtrs Plot No.
124 Measuring East to West 197 + 193.5/2 Mtrs & North to South 125 +
126.3 / 2 Mtrs & 113, 114,
115 & 116 measuring East to West 224.4 + 257/2 Mtrs and North to South 80
+ 83.7/2 Mtrs. In Sy.
No. 54, 55, 56 & 57 of Yarandahali Village, Jigani Hobli, Anekal Taluk,
Bangalore |
|
4) Gist
of the terms and conditions and extent and operation of the charge. |
Rate of
interst : CC 1 % Below SBAR Eff. : Rate 9.5 % per annum with periodical rests
and such rate and rests as may be specified by the bank form time to time. WODL of
3/6 months tenure 4.05 % below SBSTAR eff. Rate 5.95 % per annum with
periodical rests and at such rate and rests as may be specified by the bank
form time to time. |
|
5) Name
and Address and description of the person entitled to the charge. |
State
Bank of India, Bangalore
Commercial Branch, Krishi
Bhavan, Hudson Circle, Bangalore
– 560001 |
|
6)
Date and brief description of
instrument modifying the charge |
NA |
|
7)
Particulars of modifications specifying the terms and conditions or the extent
of operations of the charge in which modification is made and the details of
the modification. |
NA |
Special
Resolution
“Resolved that upon the recommendation of the Board of
Directors a sum of Rs. 101.185 Millions out of the sums standing to the credit
of profit and loss account and Rs. 50.015 Millions standing to the credit of
transferred form merged entities as on 31st march 2005.”
Website details are attached herewith:
Micro
Labs is one of the leading pharmaceutical companies in India. Micro Labs is a
flagship company started in 1973 by Mr.G.C.Surana a visionary entrepreneur.
Micro Group was founded with the objective to provide quality healthcare at an
affordable ost. The company entered the pharma market with quality products in
the prescription drug segment such as antibacterials, antiseptics, vitamins
etc.
Micro Group began to expand in the early
eighties when increased thrust was given to the branded prescription market.
Greatly encouraged by the wide acceptance and positive market response, the
company expanded its products range to various other more vital segments like
cardiovascular, psychotropic, neurological, anti diabetic, gynecological,
gastro-enterological, dermatological, ophthalmologic and veterinary products.
The
company later became a multi-divisional group to suit changing market trends
and customer profiles. In 2002 Micro acquired EROS Pharma a Bangalore-based
formulations company. Micro has 10 overseas offices, 12 formulation
manufacturing plants, a strong distribution network and about 5000 plus
dedicated employees.
Today the Micro Group with its associate
companies is a multi-faceted organization with a turnover of Rs.477 crores and
exports reaching in excess of 20 million US$
Mission
To develop and market a wide range of healthcare
products to meet specific needs, resulting in better life.
Vision
To be regarded as a stellar pharmaceutical
company in terms of Quality and Customer Satisfaction.
Business
Objectives
v
Adapting latest international technology to
match global health care requirements
v
Accelerate growth through brand building
v
Continuous research and product development
v
Constant manufacturing facilities expansion
v
US - FDA standards facilities to cater to
Regulated Markets
v
Overseas joint ventures
v
Shall strive to be one among the top Ten
Indian Companies by 2010.
Chairman's
message
"MICRO LABS
should be regarded as one of the best pharmaceutical companies in all
aspects... their people have been their major assets. I am proud of them. MICRO
LABS will provide congenial work atmosphere and establish reward systems to
enable them to function with sincerity and integrity.... MICRO LABS will be a
model corporate citizen in terms of environmental protection & societal
initiatives." - Mr.G.C.Surana.
Achievements
and Milestones
v
Micro
Labs is today ranked 13th among the 23000 and odd companies in the Indian
pharmaceutical Industry.
v
Micro
Labs is one of the fastest growing companies among the top 15 and has a current
ORG - IMS standing at 13th as per September 2005.
v
Micro
Labs has been accredited with ISO 9001 certification by KPMG
v
Micro
Labs is a regular winner of the prestigious IDMA Quality Excellence Awards from
the year 1993 onwards for having the best manufacturing units in the country.
v
Each
Micro Labs production plant conforms to FDA norms and manufacturing is done as
per stringent CGMP norms laid down by the WHO.
v
Micro
Labs manufacturing facilities have been visited, approved and appreciated by
the officials of the Ministry of Health from various countries like, UK MHRA,
MCC - South Africa, Health Canada, Invima Colambia, SGS Switzerland and IDA
Holland.
v
Micro
Labs is credited with the introduction of a number of unique molecules for the
first time in Indian market, such as Nifedipine, Diltiazem, Alprazolam,
Acylovir, Silymarin, Nabumatone, Spasmopriv, Metadoxil etc.
v
An
excellent marketing track record with over 300 % growth in turnover in the last
5 years.
v
Micro
Labs current turnover of 50 million USD
v
An
export contributes 6.5 million USD to the group turnover.
Awards
Micro Labs & Brown and Burk
received IDMA Award-2004
Micro Labs has bagged IDMA (Indian
Drug Manufacturers Associations) Quality Excellence Award for the fourth time
consecutively in a row. The significant factor of this year is both Micro Labs
and Brown & Burk have received the award. The Award is given annually by
IDMA on turnover basis for the purpose of appreciation and promotion of
excellence and product quality.
After making its strong presence in the domestic market,
Micro started venturing into international markets. Micro Exports focuses on
ethical promotion of branded generics. Micro has been exporting all major
dosage forms in many therapeutic segments.
Micro
Export has its presence in 50 countries around the globe. Micro has offices in
ten countries including UK, Thailand, Russia, Vietnam and Ukraine. Micro
facilities have received international audit approvals from Invima Columbia,
MCC South Africa, Health Canadian and UK MHRA. The UK MHRA approvals have
enabled us to move aggressively into the regulated markets, especially European
Markets.
Micro has planned for major investments in R & D to
cater to the regulated markets. Micro is looking at new markets like Mexico,
Brazil and Eastern Europe. Micro has also ventured into Bulk Drugs. To cater to
the market needs a state-of-the-art API plant is being set up at Bommasandra,
Bangalore.
Press Releases
23rd
August 2005
" Micro Labs in marketing tie-up with LG Life Sciences".
Micro Labs, Bangalore-based pharmaceutical company, has
entered into an exclusive marketing agreement with LG Life Sciences of South
Korea. The agreement is market its brand LG Hyal 2000 Inj in India.
The introduction of this drug is expected to help Indian
ophthalmologists in many ophthalmic surgical procedures like cataract and
keratoplasty, said Dilip Surana, managing director, Micro Labs. Micro Vision,
the ophthalmic division of Micro Labs will market the drug, he added.
The company so far has invested Rs.500 million to set up an
ophthalmic plant at Bommasandra as per US FDS standards.
LG Hyal 2000 Inj comes in pre-sterlised, pre-filled syringes
and has been specially formulated using the latest recombinant technology for
ophthalmic use.
According to Surana, the drug, administered to a patient prior
to surgery will reduce the trauma and will minimize the post surgical
complications by giving a high level of safety for the patient.
The Micro Labs is also in talks with several global
companies for marketing and production tie-ups, he added.
Micro Vision is one of the fastest
growing division with more than 25 per cent growth and ranked eight by ORG-IMS
retails audit. Micro Labs has turnover of Rs.5000 millions.
26th May’2004
“They are planning
to unveil 25 new products in next 2 years”
Started
three decades ago on a modest scale by Mr.G.C.Surana, Micro Labs Ltd has today
grown into a Rs.4770 million enterprise counted among the top 20 fastest
growing domestic pharma companies. Now
at the head of pharma companies in Karnataka, Micro wields a broad spectrum of
products in almost all therapeutic lines from psychiatry, cardiovascular and
anti-diabetic drugs to anti-infectives and nutritional supplements, among them
well-know brands such as Anxit and Dolo.
In an interview to Business Line, the Micro Labs Managing Director,
Mr.Dilip Surana, maps out his company’s ambitious growth path that includes an
IPO in a year. Experts:Of late, there
have been a lot of activities at Micro Labs – consolidation of four of the
group companies, new investments and plans to go after the developed markets.
Could you elaborate?Their major focus has been on domestic marketing, which
they have continued to strengthen.
Micro also has operations in the CIS, South East Asia and Africa . Soon they will be getting into the regulated
markets. This year, they should be
entering the UK and Germany . In the
last year and a half, they made a total investment of Rs.1000 million and set
up four new plants. Last year, they
bought over Eros Pharma ( Bangalore based dental range player; for Rs.180
million), added new products and made its operations all-India.
They have added a new neurological division Syncro to the
existing psychiatry division Synapse. (After the restructuring and
consolidation in April) they now have 10 divisions – two in cardiology, two in
psychiatry, besides the flagship Micro Labs; Micro Nova for women and child
health; Micro Vision for ophthalmology and dermatology and a total managerial
and field staff strength of 2350. There is also a Diabetology Task Force created
for select products in their mail division Micro Labs, to increase the focus on
diabetes.
How do you
plan to go about the foray into the regulated markets?
Well, the regulated markets are huge. Their value runs into a few billions of
dollars. The new plant for tablets and
capsules at Hosur (near Bangalore ) is targeted at Europe . It has undergone
audit for the UK MCA approval – which should be coming any time now. It is also due to get the South African
Ministry of Health approval. They are in
talks with companies in Germany too.
The new plant at Veerasandra is dedicated for amoxicillin and will have
an UK audit in September. They have
invested Rs.220 million at Hosur and Rs.150 million in the Veerasandra
plant. The third plant at Bommasandra
will make cephalosporin in all forms.
They already have a good domestic sale of cephalosprin and the Rs.290
million investment is for the regulated markets. The cephalosprin plant can be eventually US FDA compliant.The
netheyst plant was started in Goa in April for tablets and capsules. They have invested Rs.250 million in this
and are readying it for the USFDA.
Where is
this all leading?
The plan is to come out with 25 new products from
various divisions in the next two years.
They expect to touch a turnover of Rs.10000 million by 2009 on the
domestic side. This is currently
Rs.3750 million. On the export side, the business of Rs.1200 million has
been mainly from non-regulatory markets such as Africa , CIS and South-East
Asia . They plan to take it to at least
Rs.5000-6000 million by 2008 – 09. That
should take their total revenue to around Rs.1,6000 million. This year,
apart from the UK and Germany , they intend to go aggressively after Brazil and
Mexico . Micro has now climbed up to No.13 (ORG-IMS) among domestic
pharma companies and has an annual growth rate of 26 per cent or three times
the industry growth rate.
What about
the proposed IPO?
Yes, they
are looking at getting listed in about a year’s time, sometime during 2005-06.
Does it all
entail a change in the market strategies?
Their focus in select countries has shifted from absolute
generics to branded generics. They have
started a brand establishment exercise for branded generics in Singapore ,
Malaysia , Thailand , Vietnam , Myanmar , CIS and African countries – something
similar to what they have here and in Sri Lanka . After all, you get 30-40 percent higher in terms of
profitability. They had a plant in South-Africa as a 50:50 venture (Micro
Healthcare) with a local partner. Micro
and (associate Bangalore company) Bal Pharma have bought out the partner’s
share fully and they are now submitting dossiers for many new molecules for
that market. The company already has
some 70 dossiers and was doing business of Rs.300 million there. Once their
registrations there are through – which takes two years there – the business
potential should be really good. They
have filed four product registrations and intend to take it to 20 totally.
Acquisitions seem to be the order of the day for Indian
pharma companies. since you bought
Eros, what are the moves in that direction?
Yes, acquisitions would be a good bet, they are open to
that. They are trying to identify
suitable candidate companies in the UK and Germany . They are initially looking at (acquiring) any medium-sized
company in tablets and capsules for $ 10-12 million in any of these
countries. Actually this kind of a
thing would take at least a year. On the bulk-drug side, they are right now not
in it, but they have identified two companies in Hyderabad .
Pharma
companies cannot do any more without some R & D of their own. What would the strategy be?
Their R & D focus will be on formulations and not bulk
drugs. They have now started working on
various products for European approvals for which patents will be expiring in
2005, ‘06’and ’07. This is what I feel
they have missed out on a little bit: three years’ headstart on plant and R
& D. For the domestic market joint ventures, collaborations and
licensing in of molecules will form their strategy to ensure steady flow of new
products post-2005. There are a lot of mid-sized companies in Spain ,
Germany , France , even conservative Japan , which do not operate here but have
some niche molecules like dermatology, gynaecology and various segments. They intend to tie-up with at least 4-5
companies and bring in their molecules here.
This way you could take up a molecule that is not yet in India and
develop it into a Rs.40-50 million product initially. Right now they are working on 22 such products. The first of them was Eurodrug of Holland
(for Spasmopriv and Metodoxil).
What would you say about the post-2005 pharma scenario, the
challenges and prospects for Indian companies?
The post-2005 scene when product patents
would rule should bring in opportunities to look at the bigger picture of
global markets, tie-ups, investments in R & D and honing of marketing
skills. The challenge would obviously
be in terms of managing growth despite restrictions in new product introductions.
Actually, I don’t see any major change until 2008-09. Later the treatment cost would be very high. The cost of biotechnology product (that are
in the pipeline today) also will be high. Most of the blockbusters (of
MNCs) have already been launched in India .
The development that are on top of them are not significant and without
much advantage. Now if you compare the
products launched by Indian companies with (similar products in) any other
country, the cost of Indian products is at least 6-10 times cheaper. Unless something significantly better comes
up and at an affordable cost the market will be restricted to a select
population. 95 percent of the market would
still continue with those products that are already there, at least for 4-5
years.
23rd January’2004
Rapid growth at India ’s
Micro Labs
The Indian company, Micro Labs, is experiencing rapid
growth, and expects to increase its turnover to Rs. 5 billion ($ 110 million)
by the end of this fiscal year. Micro was set up 30 years ago and is now
the 16th leading pharmaceutical company in India . It says it is the only marketer of a number
of products in India , including nabumetone, ebastine and micronised azelaic
acid (Aziderm) cream, and was the first to launch nifedipine, alprazolam
(Anxit), aciclovir (Herperax) and silymarin (Silybon) there. It also manufactures active pharmaceutical
intermediates and bulk pharmaceuticals at its 10 manufacturing
facilities. The company is preparing for changes to the intellectual
property protection for changes to the intellectual property protection system
in India by growing its operations overseas – it has a presence in 68
countries, including those in Europe , Latin America , the CIS and Africa
. A $3 million R & D facility has
been set with 150 employees in India to work towards, developing new chemical
entities and novel drug delivery systems.
Exports
Micro exports branded and generic
pharmaceuticals to the value of $20 million per annum. Its manufacturing facilities were recently
approved by Canadian and Colombian regulatory authorities. It says it is
in negotiations with leading companies in China , the UK and US to market its
products, and it has entered into an agreement with the Belgium company,
Eurodrug Laboratories, to market fenoverine (Spasmopriv) for irritable bowel
disease in India . It also has
marketing rights for the products in Nepal and Sri Lanka . A second pharmaceutical from the collaboration
is expected to be launched in India shortly. Micro’s chairman and founder
is Mr.G.C.Surana, and its directors include his two sons, managing director
Dilip Surana and company director Anand Surana. The company has 3,000 employees and 10 overseas offices; it
acquired Eros pharma, an Indian formulations company, in 2002.
27th May’2004 "Thrust on export
markets"
Micro group, a leading pharmaceutical company, was started
in 1973 by G.C.Surana. Its flagship company, Micro Labs entered the pharma
market in the prescription drug segment. The company began its expansion
in early nineties when increased trust was given to the branded prescription
market. Micro Labs later become a multidivisional group to suit changing
market trends and customer profiles. It also acquired Eros pharma, a
Bangalore-based formulations company in the year 2002. Today Micro Labs
is a multi-divisional, multi-locational group with a turnover of Rs.4300
million. Currently, the company has managed by Surana’s sons, Dilip
Surana and Anand Surana, who are the managing director and the director respectively.
Micro Labs is active in all therapeutic segments of the prescription drug
market and has a strong presence in cardiology, Diabetology, neuropsychiatry,
dermatology, ophthalmology, antimicrobial therapy and pain management.
“Being a multidivisional company, they have their focus intact. At a
corporate level they are into cardiology, diabetes, anti-infection,
ophthalmology, dermatology, neuropsychiatry, gyaecology, pediatrics etc,”
explained Jayaraj.G., VP – Products & Corporate Communications.
The company introduced many molecules for the first time in India , namely
nifedipine, alprazolam (Anxit), aciclovir (Herperax), Silmarin (Silybon).
Over the past few years, the group has made significant inroads into the Asian,
European, Latin America , CSI countries and African markets. Today Micro
Labs has a strong presence in 68 countries around the globe. Micro Labs
recently bagged the Quality Excellence Award 2003 of IDMA (Indian Drug
Manufactures Association) for the third time in a row. “Micro Labs is a
fast growing pharmaceutical company figuring among the top 20 pharma
companies. Their CAGR compounded annual growth income has been more than
15 to 18 per cent. They have tripled their turnover in the past eight
years. Their growth has been three times that of the industry.
Their manufacturing plants are WHO-GMP certified. Forty countries have
approved their manufacturing plants some of the countries being Canada ,
Columbia etc.” added Jayaraj. Micro Labs has been growing over 25 per
cent every year and has been ranked 14th by the ORG-IMS, surging
past many multinationals and Indian giants, and is now among the league of
companies like Pfizer, Sun, Torrent etc. Micro Group with its associate
has exports reaching in excess of 20 million US$, 10 overseas offices, 10
formulation manufacturing plants strong distribution network and about 3000
plus employees. Micro Labs has plants to tie-up with multinationals for
licensing of molecules. “This will be positive move as by the end of this
year, GATT (General Agreement on Trade & Tariff) comes into the
picture. They are planning to tie-up with research based companies in
India , who do not have field force for marketing the product for them,” said
Jayaraj. Apart from licensing of molecules the company also plans
to enter into developed markets like European countries and the US . “As
of now their export is restricted to under developed markets like South Africa
, Sri Lanka etc. Their future plan is to enter into developed market
wherein their profit margin is high, averred Jayara.
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.44.23 |
|
UK Pound |
1 |
Rs.86.91 |
|
Euro |
1 |
Rs.58.26 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP
CAPITAL |
1~10 |
6 |
|
OPERATING
SCALE |
1~10 |
6 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT
LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT
POINTS |
|
|
|
--BANK
CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER
ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT
POINTS |
|
|
|
--SOLE
DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT
ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
55 |
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 |