MIRA
INFORM REPORT
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Report Date : |
02.07.2007 |
IDENTIFICATION DETAILS
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Name : |
STRIDES ARCOLAB LIMITED |
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Registered Office : |
201, Devavrata Sector 17,
Vashi, Navi Mumbai-400705, |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
28.06.1990 |
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Com. Reg. No.: |
11-57062 |
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CIN No.: [Company Identification No.] |
L24230MH1990PLC057062 |
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TAN No.: [Tax Deduction & Collection Account No.] |
MUMS36534B |
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PAN No.: [Permanent Account No.] |
AADCS8104P |
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Legal Form : |
Public Limited Liability company. The company’s Shares are
listed on the Stock Exchanges. |
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Line of Business : |
Manufacturing and marketing of all types of Bulk Drugs,
Pharmaceuticals, etc. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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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 15000000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having
satisfactory track. Directors are reported as experienced and respectable
businessmen. Trade relations are reported as fair. Business is active.
Payments are usually correct and as per commitments. The company can be considered normal for business dealings
at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
201, Devavrata Sector 17,
Vashi, Navi Mumbai-400705, |
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E-Mail : |
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Website : |
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Head Office : |
Strides House, Bilekahalli, |
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Tel. No.: |
91-80-26581343/44 / 57580738
/ 39 / 57580000 |
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Fax No.: |
91-80-26583538/4330 / 57580700
/ 800 |
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E-Mail : |
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Factory 1 : |
Soft Gelatin Capsules ‘ Contract Research and Manufacturing 120 A and B, Baikampady, New
Mangalore-575011, Karnataka Strides Incorporation 37, Veronica Avenue, Somerset
NJ 08873, New Jersey-08873, Tablets and Hard Gelatin Capsules ‘ Caryl Laboratories Limited 238, Sarakki,
Bangalore-560078, Karnataka Solara SA De CV AV. Paseo De Sterile Product Bilekahalli, Antibiotics Bilekahalli, Global Remedies Limited 124, Sipcot Industrial
Complex, Hosur-635126, Tamilnadu Infabra Industria Farmaceutica Limiteda. AV, Das |
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Warehouse : |
Plot No. 62, Sector – 1, Nerul, Navi Mumbai – 400 706, |
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Overseas
Offices : |
Located at :
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DIRECTORS
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Name : |
Mr. Deepak Vaidya |
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Designation : |
Chairman (Non-Executive) |
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Name : |
Mr. Arun Kumar |
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Designation : |
Executive Vice Chairman & Managing Director (Executive
& Promoter) |
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Qualification |
B.Com., PGDBM |
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Date
of Joining |
June 1990 |
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Previous
Employment |
British Pharmaceutical
Laboratories |
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Name : |
Mr. K.R. Ravishankar |
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Designation : |
Executive Director (Executive & Promoter) |
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Qualification |
B.Sc. (Part) |
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Date
of Joining |
June, 1990 |
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Previous
Employment |
Enterpreneur |
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Name : |
Mr. R.S. Prasad |
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Designation : |
Executive Director & Chief Executive Officer
(Executive) - since resigned |
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Name : |
Mr. Virtanes Saatci |
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Designation : |
Director (Non-Executive) |
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Name : |
Dr. Francis J. Pinto |
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Designation : |
Director (Non-Executive) |
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Name : |
Dr. Ronald Ling |
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Designation : |
Director (Non-Executive) |
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Name : |
Mr. Elcemar Almeida |
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Designation : |
Director (Non-Executive) |
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Name : |
Mr. D.G. Prasad |
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Designation : |
Director (Non-Executive & Independent) representing Export Import Bank of |
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Name : |
Mr. M.R. Umarji |
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Designation : |
Director (Non-Executive & Independent) |
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Name : |
Mr. A.K. Nair |
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Designation : |
Director (Non-Executive & Independent) |
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Name : |
Mr. P.M. Thampi |
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Designation : |
Director (Non-Executive & Independent) |
KEY EXECUTIVES
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Audit Committee: |
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Mr.
M.R. Umarji |
Chairman
& Member |
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Mr.
D.G. Prasad |
Member |
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Mr.
A.K. Nair |
Member |
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Mr.
P.M. Thampi |
Member |
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Mr. Deepak
Vaidya |
Member |
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Dr.
Ronald Ling |
Member |
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Shareholders'/Investors' Grievances
Committee: |
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Mr.
Deepak Vaidya |
Chairman & Member |
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Mr.
M.R. Umarji |
Member |
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Mr.
K.R. Ravishankar |
Member |
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Remuneration Committee |
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Mr.
Deepak Vaidya |
Chairman & Member |
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Mr.
Virtanes Saatci |
Member |
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Mr.
M.R. Umarji |
Member |
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Others : |
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Mr.
V S Iyer |
Chief Operating Officer |
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Mr. |
Group CFO |
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Mr.
Paul Moore |
Regional Director - |
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Mr. V
Madhusudhan |
President – |
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Mr.
Mohan Ram Prasad |
COO – US Operations |
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Mr.
Mark Bisset |
CEO – Director Asia Pacific Operation |
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Mr.
Sridhar S Rao |
Vice President – QA |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Indian
Promoters |
6580261 |
18.83 |
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Mutual
Funds & DTI |
1758253 |
5.03 |
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Banks,
Financial Institutions, Insurance Companies |
51073 |
0.15 |
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Foreign
Institutional Investors |
10478995 |
29.98 |
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Private
Corporate Bodies |
189561 |
0.54 |
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Indian
Public |
1410243 |
4.03 |
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Non
Resident Indians |
2033346 |
5.81 |
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Foreign
Venture Capital |
12452557 |
35.63 |
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Total |
34954289 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and marketing of all types of Bulk Drugs,
Pharmaceuticals, etc. |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
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Installed Capacity |
Actual Production |
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Soft Gelatin Plant Softgel Capsules |
Numbers
in Millions |
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2645 |
-- |
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Hard Gelatin Plant Capsules |
Numbers
in Millions |
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450 |
-- |
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Tablet Plant Tablets |
Numbers
in Millions |
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2160 |
-- |
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Beta-lactam Plant Capsules and Tablets Dry Powder Vials |
Numbers
in Millions |
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350 20 |
-- -- |
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Sterile Products Ampoules Vials Prefilled Syringes |
Numbers
in Millions |
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48 48 7.5 |
-- -- -- |
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Tablets |
(in
000’s) |
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-- |
1597211 |
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Capsules |
(in
000’s) |
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-- |
581530 |
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Injections |
(in
000’s) |
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-- |
34620 |
GENERAL INFORMATION
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Suppliers : |
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No. of Employees : |
800 |
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Bankers : |
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Dena Bank, Navi Mumbai, ·
State Bank of ·
Corporation Bank, Navi Mumbai, ·
The South Indian Bank, Navi Mumbai, ·
Corporation Bank, Navi Mumbai, ·
Canara Bank, Navi Mumbai, ·
Industrial Development Bank of |
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Facilities
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name
: |
Deloitte Haskins and Sells Chartered Accountants |
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Address
: |
70/3, |
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Memberships : |
Confederation of Indian Industry |
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Wholly owned Subsidiaries: |
Global Remedies Limited, Quantum Life Sciences Private Limited, Sequent Scientific Limited, (formerly known as Strides Research & Specialty Chemicals Limited) Arcolab SA Limited, Strides Africa Limited, Strides Arcolab International Limited, (formerly known as Strides Arcolab (UK) Limited, U,K) Strides (Wholly owned subsidiary of Strides Arcolab International Limited) Drug Houses of (Wholly owned subsidiary of Strides Singapore Pte.Limited) Strides Polska sp.z o.o, (Wholly owned subsidiary of Strides Arcolab International Limited) Strides Arcolab Polska sp.z o.o, (Wholly owned subsidiary of Strides Polska sp.z o.o) Strides Arcolab (Wholly owned subsidiary of Strides Arcolab International Limited) |
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Other Subsidiaries : |
Medgene Pharmaceuticals Private Limited, Strides SA Pharmaceutical Pty Limited, Strides Latina SA, • Upto 30.09.04 - Wholly owned subsidiary • 01.10.2004 to 04.02.2005 Associate • on and after 05.02.2005 Subsidiary Cellofarm Limited, • Upto 30.09.04 - Associate • On and after 01.10.2004 Wholly owned subsidiary of Strides Latina SA Solara S.A de C.V, • Upto 30.09.04 subsidiary • On and after 01.10.04 subsidiary of Strides Strides Inc, Pharma Strides Canada Corporation, (Wholly Owned Subsidiary of Strides Inc, Strides Arcolab Australia Pty Limited, (Subsidiary of Strides Arcolab International Limited) Strides Arcolab (FA) Limited, UAE, (Disposed in previous year ending December 31, 2005) |
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Joint Venture : |
Akorn Strides |
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Associates : |
Arcolab India Private Limited • Keerthapathi Ravishankar- HUF • Mrs. Deepa Arunkumar • Mrs. K.Saraswathi • Vedic Elements Private Limited • Net Equity Ventures Private Limited • Agnus Holdings Private Limited • Strides Technical Services Limited • Nous Infosystems Private Limited • Everron Systems ( • Chayadeep Properties Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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70,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 700.000 Millions |
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620000 |
Cumulative Redeemable Preference Shares |
Rs. 1000 each |
Rs. 620.000 Millions |
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Total
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Rs.
1320.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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34954289 |
Equity Shares |
Rs. 10/- each |
Rs.
349.540 Millions |
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i)
3,068,875 equity shares of Rs.10 each were allotted to the Promoter and their
Associate Companies on exercising of the Warrants ii)
210,955 equity shares of Rs.10 each were allotted to the share holders of
Bombay Drugs & Pharmas Limited consequent to amalgamation iii)
1,251,000 equity shares of Rs.10 each were issued as bonus shares by
capitalisation of general reserves iv)
1,912,500 equity shares of Rs.10 each were issued consequent to amalgamation
to the shareholders of Erstwhile Remed Laboratories ( v)
50,000 equity shares of Rs.10 each has been issued for consideration other
than cash |
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491606 |
6% cumulative redeemable preference shares |
Rs.
1000/- each |
Rs.
491.610 Millions |
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Total
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Rs. 841.150
Millions |
FINANCIAL DATA
[all
figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
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SOURCES OF FUNDS |
31.12.2006 |
31.12.2005 12 months |
31.12.2004 15 months |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
841.150 |
841.150 |
337.580 |
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2] Share Application Money |
354.310 |
35.740 |
0.000 |
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3] Reserves & Surplus |
2784.680 |
2536.200 |
2043.640 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
3980.140 |
3413.090 |
2381.220 |
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LOAN FUNDS |
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1] Secured Loans |
1452.460 |
1180.620 |
1940.300 |
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2] Unsecured Loans |
1870.360 |
2003.500 |
176.670 |
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TOTAL
BORROWING |
3322.820 |
3184.120 |
2116.970 |
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DEFERRED TAX LIABILITIES |
146.200 |
109.500 |
134.300 |
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TOTAL |
7449.160 |
6706.710 |
4632.490 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1618.630 |
1260.770 |
922.650 |
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Capital work-in-progress |
379.820 |
446.770 |
274.250 |
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INVESTMENT |
3097.360 |
2704.610 |
1770.810 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
638.300
|
502.780
|
270.290 |
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Sundry Debtors |
1669.270
|
1206.170
|
1215.720 |
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Cash & Bank Balances |
157.400
|
777.510
|
156.260 |
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Other Current Assets |
0.000
|
0.000
|
0.000 |
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Loans & Advances |
1542.690
|
919.550
|
803.290 |
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Total Current Assets |
4007.660
|
3406.010
|
2445.560 |
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Less :
CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
1338.780
|
853.160
|
597.090 |
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Provisions |
315.530
|
258.290
|
183.690 |
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Total Current Liabilities |
1654.310
|
1111.450
|
780.780 |
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Net Current Assets |
2353.350
|
2294.560
|
1664.780 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
7449.160 |
6706.710 |
4632.490 |
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PROFIT
& LOSS ACCOUNT
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PARTICULARS |
31.12.2006 |
31.12.2005 12 months |
31.12.2004 15 months |
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Sales Turnover |
4550.880 |
3310.720 |
3053.120 |
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Other Income |
0.001 |
27.120 |
8.510 |
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Total Income |
4550.880 |
3337.840 |
3061.630 |
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Profit/(Loss) Before Tax |
417.460 |
486.850 |
396.480 |
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Provision for Taxation |
55.620 |
25.760 |
104.890 |
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Profit/(Loss) After Tax |
361.840 |
461.090 |
291.590 |
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Earnings in Foreign Currency : |
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FOB
Value of Exports of Goods |
3500.250 |
2624.130 |
2625.700 |
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Development
Income |
318.140 |
442.210 |
119.900 |
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|
-- |
35.470 |
35.480 |
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Interest
|
53.080 |
29.260 |
0.000 |
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Local sales (proceeds received / receivable in Foreign
Currency) |
464.640 |
253.000 |
40.940 |
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Total Earnings |
4336.110 |
3384.070 |
2822.020 |
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Imports : |
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Raw Materials |
800.230 |
588.010 |
581.090 |
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Capital Goods |
256.540 |
186.920 |
58.620 |
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Others |
1.700 |
3.540 |
42.060 |
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Total Imports |
1058.470 |
778.470 |
681.770 |
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Expenditures : |
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Materials
consumed |
2378.430 |
1,542.040 |
1,538.620 |
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(Increase)/Decrease
in stock |
55.730 |
(55.800) |
(4.810) |
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Personnel
cost |
418.430 |
277.250 |
191.260 |
|
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Operating
and other expenses |
917.880 |
788.710 |
562.700 |
|
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Finance
charges |
198.880 |
174.090 |
256.630 |
|
Total Expenditure |
3969.350 |
2726.290 |
2544.400 |
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QUARTERLY
RESULTS
|
PARTICULARS |
|
|
31.03.2007 |
|
Type |
|
|
1st
Qtr |
|
Sales
Turnover |
|
|
1060.700 |
|
Other
Income |
|
|
34.500 |
|
Total
Income |
|
|
1095.200 |
|
Total
Expenditure |
|
|
860.800 |
|
Operating
Profit |
|
|
234.400 |
|
Interest |
|
|
59.600 |
|
Gross
Profit |
|
|
174.800 |
|
Depreciation |
|
|
45.300 |
|
Tax |
|
|
48.300 |
|
Reported
PAT |
|
|
77.600 |
200703
Quarter 1 –
EPS is Basic Status of Investor Complaints for the quarter
ended March 31, 2007 Complaints Pending at the beginning of the quarter Nil Complaints
Received during the quarter 13 Complaints disposed off during the quarter 13
Complaints unresolved at the end of the quarter Nil 1. The above standalone
results of the Company were reviewed by the Audit Committee and taken on record
by the Board of Directors at their meeting held on April 26, 2007. 2. The
statutory auditors have carried out a limited review of the standalone
unaudited results. 3. During the quarter the following companies were
incorporated as subsidiaries of Strides Arcolab International Limited, a wholly
owned subsidiary of the Company: a. Strides Arcolab Hong Kong Limited, Hong
Kong b. Strides Arcolab Malayasia Sdn BhD,
KEY
RATIOS
|
PARTICULARS |
|
31.12.2006 |
31.12.2005 12 months |
31.12.2004 15 months |
|
PAT / Total Income |
(%) |
7.95
|
13.81 |
9.52 |
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|
Net Profit Margin (PBT/Sales) |
(%) |
9.17
|
14.58 |
12.95 |
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|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.42
|
10.43 |
11.77 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.10
|
0.14 |
0.17 |
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Debt Equity Ratio (Total Liability/Networth) |
|
1.25
|
1.26 |
1.22 |
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Current Ratio (Current Asset/Current Liability) |
|
2.42
|
3.06 |
3.13 |
STOCK
PRICES
|
Face Value |
Rs.10.00/- |
|
High |
Rs.335.90 |
|
Low |
Rs.332.50 |
LOCAL AGENCY FURTHER INFORMATION
FIXED
ASSETS
v
v
Leased
v Buildings
v Furniture & Fixtures
v Office Equipment &
v Computers
v Plant & Machinery
v Motor Vehicles
v Registration & Brands
v
Software Licences
HISTORY
Subject since its inception in 1990, has continously
consolidated its position at the leading edge of the International Generic
Pharmaceutical and Nutritional industry. Today, it is a multi-million dollar
integrated manufacturer, with a comprehensive product range that covers
virtually all dosage forms and therapeutic categories. Its pharmaceutical range
of products are manufactured in state of the art ISO certified plants which
conform to the strictest WHO-GMP guidelines.
The subsidiaries of Subject are Global Remedies Limited, Strides Research and
Specialty Chemicals Limited, Arcolab Limited SA Switzerland, Strides Acrolab FA
Limited UAE, Strides Inc USA, Strides SA Pharmaceuticals Pty Limited Republic
of South Africa, Strides Africa Limited British Virgin Islands and Quantum Life
Sciences Private Limited
Subsequent to investments in soft gelatin technology, with plants in
During 1999-2000, the company, to accelerate entry into new markets established
Pentagon Exim, a 100% subsidiary in UAE. Pentagon Exim will spearhead the
company's entry into GCC markets and parts of
The company is in the process of completing investments in
The company has hived off its CRAM Division to Strides Research &
Speciality Chemicals Limited, a 100% subsidiary of the Company in
2002-03.
In the year 2002-03 the company has signed an Memorandum of Understanding with
Ribbon SRL Italy for setting up a 50:50 joint venture to manufacture and market
Cephalosporin formulations for the regulated markets. This facility will be set
up in
The company has set up Akron-Strides LLC,
During 2003-04 the LATAM operations in
In 2005, The company has made acquisitions in
The company has expanded its Anti TB Facility at
During the year, the company has increased its stake from 40% to 52.5% i
February 2005 and further increased to 67& in May 2005 in Strides Latina
S.A Uruguay. And the company has acquired Strides Arcolab(UK) Limited,
Turnover and
Profits
The total income during the year under review was Rs. 4550.88 Million as
against Rs. 3337.84 Million in the previous year.
The Profit after Tax for the year under review was Rs. 361.84 Million as
against Rs.461.09 Million in the previous year.
Business &
Outlook
The Company continues to pursue certain key themes in it's pursuit of
becoming one of the most admired healthcare companies with a globally
integrated operation in niche spaces. These are:
v
Leadership through Partnering : The Company will
continue to work on partnerships in the regulated markets to be able to
introduce its products quickly and efficiently.
v
Increasing investment in product pipeline: The
growth and future profitability of the Company depends on it's ability to
maintain a strong product pipeline and the Company will continue to make
investments in this area.
v
Inorganic Growth : The Company will continue to
explore acquisition opportunities in areas of strategic interest to enable it
supplement it's manufacturing capabilities and market reach.
Acquisitions /
Investments / Subsidiaries / Joint Ventures
During the year under review:
Acquisitions
v
The Company acquired 70% stake in
v
The Company acquired 100% stake in Fabryka na
Daniszewskiej sp.z o.o., (later renamed as Strides Arcolab Polska sp.z o.o.,)
the Polish manufacturing facility of ICN Valeant. This acquisition was made
through Strides Polska sp.z o.o., a wholly owned subsidiary of Strides Arcolab
International Limited,
v
The Company acquired 100% stake in Drug Houses of
Australia (
Investments
The Company made further investments of
v
Rs. 78.38 Million in the equity share capital of
Strides Arcolab International Limited,
v
Rs. 200 Million in the preference capital of
Quantum Life Sciences Private Limited,
v
Rs. 189.84 Million in the ordinary share capital of
Strides Africa Limited, BVI.
v
Rs.180.23 Million in the equity share capital of
Strides Inc.,
Subsidiaries
The following Companies became subsidiaries of the Company:
v
v
Strides Australia Pty. Limited,
v
Drug Houses of
v
Strides Arcolab Polska sp.z o.o.,
v
Strides Inc.,
v
The name of Strides Research and Specialty
Chemicals Limited was changed to Sequent Scientific Limited.
v
The name of Strides Arcolab (UK) Limited was
changed to Strides Arcolab International Limited.
Joint Ventures
The company entered into a definitive agreement with Accu-Break
Pharmaceuticals Inc.,
Technology Absorption, Adaptation and Innovation & Benefits derived
as a result of the above efforts Debottlenecking activities have been done to
ensure smooth follow of products at various stages of manufacture.
New packing block at
The above have resulted in overall reduction in cost and products
improvement and is not quantifiable in monetary terms.
Industry structure
and developments :
Pharmaceutical is one of the most intense "knowledge driven"
industries, which is continuously in a state of dynamic transition. Defined as
a complex matrix of regulations, processes and operations which are involved in
the discovery, development and manufacture of drugs and medications; the Pharmaceutical
industry is a life line industry. It plays a crucial role in building a strong
and healthy human capital and is a major contributor to the economic growth and
development of a nation.
Pharmaceutical industry can be categorized into two - Bulk Actives and
Formulations. Bulk Actives (also known as bulk drugs) or Active Pharmaceutical
Ingredients (API), are the medicinally active ingredients in the formulation.
The formulations are finished dosage forms which are administered to or taken
by the patient. Formulations are sold either on the basis of a prescription
from the doctor or over-the-counter (OTC), depending on whether they have had a
long history of clinically proven and tested dynamic impact. Pharmaceuticals
are categorized under two broad categories viz Acute and Chronic and under each
of them; there are a number of therapeutic groups such as Antibiotics,
Anti-bacterial, Cardiovascular, Neurological, Metabolic, Immunosuppressant, Steroids, etc.
The global Pharmaceuticals market can broadly be segmented into two
parts - Regulated and semi / unregulated markets.
The regulated markets, as the term implies, have stringent regulations
covering manufacturing, distribution, sale and storage of pharmaceutical
products and are also characterized by strong intellectual property protection
laws. The semi/ unregulated markets, on the other hand, while requiring certain
basic compliances and providing certain level of intellectual property protection,
allow for easier entry of new players into those markets.
As a result, the regulated markets, which also have a strong social
security system in relation to health issues, are high value markets with a
much higher per capita spend on health. These markets are therefore the most
lucrative; .see much lower competition and thus higher margins. While the
regulated .markets are broadly considered to be North America, West Europe,
Australia, New Zealand and South Africa; all other regions fall under the category
of semi/ unregulated markets.
The total size of the global pharmaceutical industry was USD 643 Billion
in 2006 with, the biggest share being that of North America (
Opportunities and
Threats:
As mentioned e'arlier, the Indian Pharmaceutical Industry's greatest
strengths are its strong scientific talent pool and low cost manufacturing
base. While the Indian companies initially started as contract manufacturing
partners to multinational pharmaceutical companies, they have now moved up the
value chain and are providing high quality research and development, clinical,
analytical and niche manufacturing capabilities. With the high cost involved in
the discovery and development of new molecules,
The biggest threat to this, however, remains the ability of the industry
to ensure high standards of quality and timely delivery with increasing
regulation in markets across globe. The cost of manpower is also rising and
competition is emerging from a number of other countries in the South East Asia
region, particularly
The Company, which is in the generic space, has over time continuously
changed its strategies to align them with the emerging global opportunities. It
has chosen to focus on difficult to manufacture and innovate niche drugs and to
develop a strong product pipeline which it can utilize in its global
initiatives, while providing highly cost competitive Research and Development
as well as the Manufacturing capabilities. It has, over the last few years,
acquired a global presence in terms of manufacturing capacities as well as
brands and distribution capabilities. It continues to focus on increasing its
presence in the regulated markets, in order to be able to continuously grow at
a fast pace and work on improving its margins
Outlook:
While the Company continues to focus on the Indian advantage, its niche
innovation and manufacturing capabilities and the partnering approach for the
developed markets, it is also making major strides in product pipeline
development for itself as well as its partners. This will also help it to
increase its presence in the regulated markets thus enabling it to achieve
still higher growth and profitability. Towards all this, the following strategy
has been employed:
Pipeline Development: The Company continues to invest increasing amounts
in the development of significant product pipeline in the area of generics in a
broad range of therapeutic categories. It believes that considering the current
work underway in terms of development and the significant opportunities
available in the global market place, it will be able to become a very
significant player in its chosen fields of operation. As a strategy, it
continues to increase its investment in the domain of soft gelatine capsules
and sterile parenterals and also focus on niche generic products which present
a challenge on the development and manufacturing side.
Partnership Approach: The Company continues to focus on building
partnerships in the Regulated Markets in order to enable it to access those
markets quickly and utilize the partners' strengths on the regulatory and
distribution side. The Company has entered into a number of relationships
during the year which are structured in the form of either incorporated joint
ventures or pure profit sharing agreements. As the Company acquires greater
confidence and capabilities on the regulatory and marketing side, it is also
working on partnerships which are purely distribution based.
Mergers and Acquisitions: The Company's strategy in relation to mergers
and acquisition is to target companies which have manufacturing capabilities in
its focus areas and comes with regulatory approvals to enable it to improve its
time to market. The other corner-stone of its acquisition strategy is to
acquire companies which have an existing product portfolio which can be
enhanced significantly with the Company's product pipeline thus enabling the
Company to acquire a significant presence in the markets where the target
company is operating.
AS PER
WEBSITE
An Overview:
Established
in 1990, Strides is one of
They
have 13 world-class plants in
They
are among the world’s top 5 soft gel capsule manufacturers with plants in
Their
R&D interweave offers end-to-end solutions from concept to delivery and a
go-to-market pipeline of products that are patent non-infringing formulations
across dosage forms.
They
have marketing presence in 55 countries. This broad network facilitates
partnering with global organisations ranging from Unicef, UNDP, Global TB Drug
Facility, The Clinton Foundation to European and American pharma giants and
even private labelers and distribution chains.
In
addition, they undertake Contract Research & Manufacturing of Specialty Chemicals.
Leadership through partnering:
As
pharma companies reach out to enhance their strength and competitiveness, their
key requirement is for a synergistic partner. A partner who is truly global in
skill sets, R&D, manufacturing practices and in attitude and vision.
At
Strides, they are all that and more – because they believe in “Leadership
through Partnering”. They are partners to more than 10 of the world’s top 50
pharma majors in
Their
ethos centers around customer focus and rapid response. Over the last decade,
they have systematically strengthened their capabilities in understanding and
aligning their selves with their partner’s needs. Through product innovation,
manufacturing, operational flexibilities and leveraging their IP in formulation
technologies, they have significantly enhanced their partner’s marketing
leadership.
Product
ORAL
DOSAGE FOR
Immunosuppressants
Anti-retroviral drugs
Anti-tuberculosis
product
Anti-malarial drugs
Antibiotics and anti-infectives
Other anti-infectives
Anti –anginal & anti- hypertensive drugs
Hypolipidaemic
Agents (Cholesterol Reducing Agents)
Gastrointestinal Agents
Anti-emetics
NSAIDs /Analgesics
Steroids and Hormones
Anti-allergic drugs
Vitamins/Minerals and Calcium regulators
STERILE
PRODUCTS
Immunosuppressant
Anti-tuberculosis
agents
Anti-malarial
Antibiotics and
anti-infectives
Steroids and
Hormones
Antispasmodic/
muscle relaxants
Gastrointestinal Agents
BETA
LACTAMS
Beta Lactams
CEPHALOSPORINS
Cephalosporins
PRESS RELEASE
Strides
Arcolab receives USFDA approval for its Sterile Facility in Bangalore
In a statement, Mr.Arun Kumar – Vice Chairman and Managing
Director of Strides Arcolab stated that the USFDA approval of the sterile
facility in Bangalore is an important milestone for the Company’s US strategy,
as this Pre-Approval Inspection [PAI] will support the product submissions for
sterile injectables with the FDA.
About The Sterile Facility
The
sterile facility in
About Strides Arcolab
Strides,
listed on the Bombay Stock Exchange Limited [532531] and National Stock
Exchange of India Limited (STAR), is one of
Strides
has 14 manufacturing plants spread across the
Strides
Arcolab receives USFDA approval for its Sterile Facility in
In a statement, Mr.Arun Kumar – Vice Chairman and Managing
Director of Strides Arcolab stated that the USFDA approval of the sterile
facility in Bangalore is an important milestone for the Company’s US strategy,
as this Pre-Approval Inspection [PAI] will support the product submissions for
sterile injectables with the FDA.
About The Sterile Facility
The
sterile facility in
About Strides Arcolab
Strides,
listed on the Bombay Stock Exchange Limited [532531] and National Stock
Exchange of India Limited (STAR), is one of
Strides
has 14 manufacturing plants spread across the
Strides Arcolab
completes acquisition of Indian Domestic Pharma Company - Grandix
Pharmaceuticals Limited
Grandix will
spearhead Strides
Bangalore, India, 11-Jun-07: Strides Arcolab today announced that it has
signed a definitive agreement to acquire 100% of Grandix Pharmaceuticals
Limited and its subsidiary Grandix Laboratories Limited on a cash and debt free
basis valuing 100% of the company at Rs.1000 millions [Approximately US$
24million]
The transaction is accretive to Strides EPS and offers a platform to
grow a domestic strategy by infusing a robust Strides pipeline.
Pricewaterhouse Coopers acted as an independent valuer of the
transaction.
v
Grandix is a branded pharmaceutical company mainly
focused on the South of India.
v
For the FY 2006, Grandix posted sales of
Rs.48.50crores [US$ 11.80million] and EBITDA of Rs.10.89crores [US$
2.60million] - 22%
v
Sales in 2007 is expected to grow at over 30%
Strategic
Rationale:
v
v
Strides has no domestic presence and Grandix will
be the springboard to launch a national presence by leveraging existing Grandix
products with Strides strong R&D pipeline.
v
The Company will increase Medical representative’s
strength to 400 by end July 2007 and will expand gradually to cover the entire
country.
v
Grandix management brings the branding expertise for
Strides’ growing branded business worldwide.
Speaking on the occasion Arun Kumar, Vice Chairman and Managing
Director, stated “they are delighted with this very strategic acquisition of
Grandix and its leadership. They are confident that the acquisition will create
a differentiated local operation in the Indian domestic pharma space”.
About Strides
Arcolab
Strides, listed on the Bombay Stock Exchange Limited [532531] and
National Stock Exchange of India Limited (STAR), is one of
Strides is one of the largest Indian suppliers of institutionally funded
aid projects and is an approved supplier to the World Bank, the African
Development Bank and UNICEF, amongst others.
Strides has 14 manufacturing plants spread across the
the globe. Strides also have a marketing presence in over 50 countries.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from
various sources including but not limited to: The Courts,
1] INFORMATION
ON DESIGNATED PARTY
No records exist designating subject or any of its
beneficial owners, controlling shareholders or senior officers as terrorist or
terrorist organization or whom notice had been received that all financial
transactions involving their assets have been blocked or convicted, found
guilty or against whom a judgement or order had been entered in a proceedings
for violating money-laundering, anti-corruption or bribery or international
economic or anti-terrorism sanction laws or whose assets were seized, blocked,
frozen or ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court
Declaration :
No records exist to suggest that
subject is or was the subject of any formal or informal allegations,
prosecutions or other official proceeding for making any prohibited payments or
other improper payments to government officials for engaging in prohibited
transactions or with designated parties.
3] Asset
Declaration :
No records exist to suggest that the property or assets of
the subject are derived from criminal conduct or a prohibited transaction.
4] Record
on Financial Crime :
Charges or
conviction registered against subject: None
5] Records
on Violation of Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records
on Int’l Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal
Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation
with Government :
No
record exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation
Package :
Our
market survey revealed that the amount of compensation sought by the subject is
fair and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report
:
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments
on Corporate Governance to identify management and governance. These factors
often have been predictive and in some cases have created vulnerabilities to
credit deterioration.
Our Governance Assessment focuses principally on the
interactions between a company’s management, its Board of Directors,
Shareholders and other financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian
Rupees |
|
US Dollar |
1 |
Rs.40.66 |
|
|
1 |
Rs.81.70 |
|
Euro |
1 |
Rs.55.05 |
SCORE & RATING EXPLANATIONS
|
SCORE
FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
51 |
This score serves as a reference to assess SC’s
credit risk and to set the amount of credit to be extended. It is calculated
from a composite of weighted scores obtained from each of the major sections of
this report. The assessed factors and their relative weights (as indicated
through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit
history (10%) Market
trend (10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the
strongest capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for
credit transaction. It has above average (strong) capability for payment of
interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly
Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet
normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight
in credit consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and
principal sums in default or expected to be in default upon maturity |
Limited
with full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be
exercised |
Credit
not recommended |
|
NR |
In view of the lack of information, we have no basis upon
which to recommend credit dealings |
No
Rating |
|