MIRA
INFORM REPORT
|
Report Date : |
07.06.2007 |
IDENTIFICATION DETAILS
|
Name : |
CIPLA LIMITED |
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Registered Office : |
289, J. B. B. Marg, Mumbai Central, Mumbai – 400 008, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
17.08. 1935 |
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Com. Reg. No.: |
11-2380 |
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CIN No.: [Company
Identification No.] |
U24239MH1935PLC002380 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMC00352C |
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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 of Chemicals, Tablets and Capsules, Liquids, Creams, Aerosols, Injections, Sterile Solution and Agrochemicals and Formulations. The company manufactures and markets bulk drugs and
formulations. |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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Maximum Credit Limit : |
USD 75000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed pharmaceutical company having fine track. Available information indicates high financial responsibility of the company. Financial position of the company is considered as good. Business is active. The company can be considered normal for business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered/Corporate
Office : |
289, J. B. B. Marg, Mumbai Central, Mumbai – 400 008, |
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Tel. No.: |
91-22-23095521/23082891/23023272 |
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Fax No.: |
91-22-23070013/23070393/85/23008101 |
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E-Mail : |
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Website : |
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Factory : |
MIDC, Patalganga – 410 220, District Raigad, D7, MIDC Industrial Area, Kurkumbh – 413 802, District
Pune, LBS Marg, Vikhroli (West), Mumbai – 400 083, Virgonagar, Verna Industrial Estate, Verna-403722, Salcette, Panaji, |
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Sales Office: |
Located At : Kochi, Ghaziabad, Kolkata, Chennai, Hyderabad, Delhi, Assam, Nagpur, Chandigarh, Patna, Ambala Cantt., Patna, Vijayawada, Varanasi, Rajasthan, Lucknow, Ahmedabad, Indore, Mumbai, Madhya Pradesh, Pune and Bangalore. |
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Branches : |
289, |
DIRECTORS
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Name : |
Dr. H. R. Manchanda |
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Designation : |
Non-Executive Director |
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Qualification : |
M.B.B.S., F.R.C.S. |
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Experience : |
1.
Consultant Surgeon at 2.
Professor of Surgery and Head of Surgery at Haffkine Institute – Board Member |
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Date of Appointment : |
1983 |
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Name : |
Mr. S. A. A. Pinto |
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Designation : |
Non-Executive Director |
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Qualification : |
M.A.(Economics), LL.B |
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Experience : |
1. Kotak Mahindra Finance Limited – Director and Member of Audit Committee and Chairman of Investor Relations Committee 2. Kotak Mahindra Private-Equity Trustee Limited – Chairman |
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Date of Appointment : |
1983 |
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Name : |
Dr. Y. K. Hamied |
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Designation : |
Chairman & Managing Director |
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|
Name : |
Mr. Amar Lulla |
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Designation : |
Joint Managing Director |
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Name : |
Mr. M. K. Hamied |
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Designation : |
Joint Managing Director |
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Name : |
Mr. V. C. Kotwal |
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Designation : |
Non-Executive Director |
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Name : |
Mr. M. R. Raghavan |
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Designation : |
Non-Executive Director |
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Name : |
Mr. Ramesh Shroff |
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Designation : |
Non-Executive Director |
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Name : |
Mr. M. K. Gurjar |
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Designation : |
Non-Executive Director |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
Promoters'
holdings
|
|
|
|
Indian Promoters |
23,950,112 |
39.94% |
|
|
|
|
Non
promoter's holdings
|
|
|
|
Mutual Funds and UTI |
3,564,975 |
5.94% |
|
Banks, Financial Institutions and Insurance Companies |
6,127,356 |
10.22% |
|
FIIs |
5,184,232 |
8.64% |
|
|
|
|
|
Private Corporate Bodies |
1,369,319 |
2.28% |
|
Others |
133,782 |
0.22% |
|
NRIs / OCBs |
2,121,742 |
3.54% |
|
General Public |
17,520,831 |
29.21% |
|
Grand Total |
59,972,349 |
100.00% |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of Chemicals, Tablets and Capsules, Liquids, Creams, Aerosols, Injections, Sterile Solution and Agrochemicals and Formulations. The company manufactures and markets bulk drugs and
formulations. |
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|
Products : |
PRODUCTION STATUS
|
Particulars |
Unit |
|
Installed
Capacity |
Actual
Production |
|
Bulk Drugs (including Malts) |
Tonne |
|
1598.0 |
1054.3 |
|
Tablets and Capsules |
Million |
|
12296.0 |
11167.8 |
|
Liquids |
Kilolitre |
|
1404.0 |
6711.0 |
|
Creams |
Tonne |
|
616.0 |
541.4 |
|
Aerosols/Inhalation Devices |
Thousand |
|
53580.0 |
43018.4 |
|
Injections/Sterile Solutions |
Kilolitre |
|
1071.0 |
1296.3 |
|
Others |
Million |
|
-- |
2.3 |
GENERAL INFORMATION
|
No. of Employees : |
2200 |
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Bankers : |
v
Bank of v
Canara Bank, Mumbai, v
Corporation Bank, Mumbai, v
Indian Overseas Bank, Mumbai, v
Standard Chartered Grindlays Bank Limited,
Mumbai, v
The Hong Kong & Shanghai Banking Corporation
Limited, Mumbai, v
Corporation Limited, Mumbai, v
Union Bank of |
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Facilities : |
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Banking
Relations : |
Good |
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Auditors : |
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|
Name : |
R. S. Bharucha & Company Chartered Accountants R. G. N. Price & Company Chartered Accountants |
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Address : |
Mumbai, |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
875000000 |
Equity Share |
Rs. 2/- each |
Rs. 1750.000 millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
300873628 |
Equity shares |
Rs. 2/- each |
Rs. 601.750 millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
299850000 |
Equity Shares |
Rs. 2/- each |
Rs. 599.700 millions |
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
599.700 |
599.740 |
599.720 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
19233.000 |
14936.640 |
12040.780 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
19832.700 |
15536.380 |
12640.500 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
512.700 |
403.730 |
305.990 |
|
|
2] Unsecured Loans |
4176.400 |
1546.690 |
1799.850 |
|
|
TOTAL BORROWING |
4689.100 |
1950.420 |
2105.840 |
|
|
DEFERRED TAX LIABILITIES |
979.500 |
889.460 |
659.460 |
|
|
Equity Shares to
be issued |
0.000 |
0.000 |
0.020 |
|
|
|
|
|
|
|
|
TOTAL |
25501.300 |
18376.260 |
15405.820 |
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APPLICATION OF FUNDS |
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|
|
|
|
|
|
|
|
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|
FIXED ASSETS [Net Block] |
10566.100 |
7389.100 |
5475.610 |
|
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Capital work-in-progress |
870.100 |
1059.640 |
560.110 |
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|
|
|
|
|
|
|
INVESTMENT |
224.300 |
183.020 |
1803.690 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
9570.000 |
7456.790 |
5689.420 |
|
|
Sundry Debtors |
8759.600 |
5873.230 |
4982.270 |
|
|
Cash & Bank Balances |
444.800 |
153.800 |
62.440 |
|
|
Other Current Assets |
133.500 |
135.170 |
75.580 |
|
|
Loans & Advances |
4014.900 |
3909.90 |
3552.590 |
|
Total
Current Assets |
22922.800
|
17528.890 |
14362.300 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
6358.900 |
4944.540 |
3753.530 |
|
|
Provisions |
2723.100 |
2839.850 |
3042.360 |
|
Total
Current Liabilities |
9082.000
|
7784.390 |
6795.890 |
|
|
Net Current Assets |
13840.800 |
9744.500 |
7566.410 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
25501.300 |
18376.260 |
15405.820 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
Sales Turnover |
31135.600 |
23364.980 |
19585.930 |
|
|
Other Income |
0.000 |
0.000 |
0.000 |
|
|
Total Income |
31135.600 |
23364.980 |
19585.930 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
7098.400 |
5146.140 |
4040.860 |
|
|
Provision for Taxation |
1022.000 |
1050.000 |
973.950 |
|
|
Profit/(Loss) After Tax |
6076.400 |
4096.140 |
3066.910 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
|
|
|
|
|
|
Export Earnings |
N.A. |
N.A. |
8706.130 |
|
|
Commission Earnings |
N.A. |
N.A. |
0.000 |
|
|
Other Earnings |
N.A. |
N.A. |
0.000 |
|
Total Earnings |
N.A. |
N.A. |
8706.130 |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Raw Materials |
N.A. |
4477.330 |
2842.200 |
|
|
Stores & Spares |
N.A. |
0.000 |
0.000 |
|
|
Capital Goods |
N.A. |
0.000 |
0.000 |
|
|
Others |
N.A. |
0.000 |
0.000 |
|
Total Imports |
N.A. |
4477.330 |
2842.200 |
|
|
|
|
|
|
|
|
Total Expenditure |
24037.200 |
18218.840 |
15545.070 |
|
SUMMARISED RESULTS
|
PARTICULARS |
|
|
31.03.2007 (Full year) |
|
Sales Turnover |
|
|
35721.400 |
|
Other Income |
|
|
891.300 |
|
Total Income |
|
|
36612.700 |
|
Total Expenditure |
|
|
27494.100 |
|
Operating Profit |
|
|
9118.600 |
|
Interest |
|
|
69.600 |
|
Gross Profit |
|
|
9049.000 |
|
Depreciation |
|
|
1040.800 |
|
Tax |
|
|
1275.000 |
|
Reported PAT |
|
|
6608.200 |
|
Dividend (%) |
|
|
0.000 |
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt
Equity Ratio |
0.19 |
0.15 |
0.13 |
|
Long Term
Debt Equity Ratio |
0.16 |
0.12 |
0.11 |
|
Current
Ratio |
2.06 |
1.89 |
1.87 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
2.59 |
2.73 |
3.19 |
|
Inventory
|
3.55 |
3.54 |
3.41 |
|
Debtors |
4.13 |
4.29 |
4.63 |
|
Interest
Cover Ratio |
45.17 |
39.73 |
30.28 |
|
Operating
Profit Margin (%) |
26.69 |
22.27 |
22.70 |
|
Profit
Before Interest and Tax Margin (%) |
24.04 |
19.90 |
20.66 |
|
Cash
Profit Margin (%) |
22.78 |
17.81 |
17.57 |
|
Adjusted
Net Profit Margin (%) |
20.12 |
15.44 |
15.53 |
|
Return
on Capital Employed (%) |
34.75 |
28.93 |
31.15 |
|
Return
on Net Worth (%) |
34.55 |
25.70 |
26.51 |
STOCK PRICES
|
Face Value |
Rs.10/-each |
|
High |
Rs.236.50/- |
|
Low |
Rs.232.55/- |
LOCAL AGENCY FURTHER INFORMATION
One of the largest drug manufactures, Cipla manufactures and markets
bulk drugs and formulations. It is now ranked second in
Cipla has a very wide product range which includes antibiotics,
anti-bacterials, anti-asthmatics, anti-inflammatory anthelminites, anti-cancer
and cardiovasculars. In domestic formulation market, antibiotics are the
mainstay, which contributes around 50% of the company's revenue. Some of the
leading brands are Ciplox (Ciprofloxacin), Novamox (Amoxycilin) and Norflox
(Norfloxacin). Cipla also has in its product portfolio Zidovir (zidovudine,
anti-AIDS drug). Cipla was one of the first among the Indian pharmaceutical
companies to introduce ampicillin and norfloxacin.
The company is constantly maintained its lead in introducing new drug
formulation. The company has very strong research and developement facilities
which has been bearing fruits. Its ability to quickly duplicate a new drug
introduced elsewhere and introduce it in the Indian market has played a
significant role in building a basket of formulation brands. Being one of the
earliest entrants into the market with a new drug, generally, enables a company
achieve higher realisations. In addition to being among the early entrants, one
aspect which has given an edge to Cipla's strategy is the ability to market
products at a significantly lower price.
Cipla has developed the world's first budesonide-based, chlorofluorocarbons
(CFC) - free anti-asthma inhaler, 'Budecort CFC-free'. Budesonide, which falls
in the preventive class of anti-asthmatic drugs, is essentially a steroid and
preferred due to its safety profile. The company has invested over Rs 20
Millions in developing CFC-free asthma products over a period of 12 month. The
product is largely being targeted at the international markets, which are
CFC-sensitive and is awaiting for registration in the European markets. The
fruits of the new product will be obtained in the coming years, since the
company expects to increase its exports through this product.
In Dec 2000, the company cut the price of its anti-AIDS drug Nevimune
(scientific name : nevirapine) by 34% to Rs 650 for a strip of ten tablets. The
price was earlier Rs 985. Cipla has slashed the price of the drug thrice
reducing it from the launch price of Rs 1,350 for a strip of ten to the current
price. The company attributes this to improvements in technology that has
enabled it to cut costs and pass on the savings to consumers.
Cipla is the only manufacturer of nevirapine from the basic stage in
Among the large pharma companies, Cipla was considered as the fastest growing
company with a pre-eminent position in anti-asthma and its foray into
high-growth areas like anti-cancer and anti-AIDS. However, current performance
is not in line with this perception.
The company is a leader in the anti-bacterial and anti-asthmatic segments in FY
2000. Cipla became the first player outside the
The market for such metered dose inhalers in the
After growing smartly in the domestic market, the company is now focussing on
export markets. Cipla has tied up with
Cipla has also tied up with the US-based Zenith Goldline and United Research
Labs for marketing Flutamide (an oncology drug) and Felodipine (a
cardiovascular drug) in the
Recently, in July 2001, the company has effected another round of price cuts of
its anti-AIDS drug segment. This is the fourth price cut in AIDS segment during
the last nine months (last one was in May 2001). The company has cut prices of
its triple drug regimen by as much as 39%. The three-drug combination of
lamivudine, stavudine and nevirapine, which has the potential to reduce the HIV
virus in the body to very low levels, will now cost the patient Rs 2,130 per
month down from Rs 3,495 per month.
Cipla has a very good product pipeline for years to come. The only threat for
the company is that the government is going to introduce the product patents
post 2005. But even if it is introduced, the company expects that it is only
going to be affected after 2012 or 2015. Because, till then, the company has
very good product pipeline. But as per company reports, if government is
pragmatic in framing new patent laws, then Cipla will obviously progress much
faster.
The company is one of the three Indian pharma companies who will jointly market
the anti-anthrax drug, Ciprofloxacin, in
HISTORY:
Subject was incorporated on 17.08.1935 at Mumbai in
Mr. Khwaja Abdul Hamied, set up in 1935 the Chemical, Industrial and
Pharmaceutical Laboratories which came to be popularly known as Cipla. He gave the company all his patent and
proprietory formulas for several drugs and medicines.
On 17.08.1935, the subject was registered as a public limited liability
with an authorised capital of Rs. 0.600 millions. Subject was officially opened on 22.09.1937
when the first products were ready for the market. 04.07.1939 was a red letter day for the company
when the Father of the Nation, Mahatma Gandhi, honoured the factory with a
visit. On 31.10.1939, the books showed
an all-time high loss of Rs. 67935. That
was the last time for the company ever recorded a deficit.
In 1942, Dr. Hamied's blueprint for a technical industrial research was accepted
by the government and led to a birth of a Council of Scientific and Industrial
Research (CSIR), which is today the apex research body in the country.
In 1944, the company bought the premises at Bombay Central and decided
to put up a first class modern pharmaceutical works and laboratory. It was also decided to acquire land and
buildings at Vikhroli. With severe
import restrictions hampering production, the company decided to commence
manufacturing the basic chemicals required for pharmaceuticals.
In 1946, the company's product for hypertension, Serpinoid was exported
to the American Roland Corporation to the tune of Rs. 0.800 million. Five years later the company entered into an
agreement with a Swiss firm for manufacturing foromycene.
In 1960, Dr. Yusuf Hamied, the founder's son joined the company as an
officer incharge of research and development.
In 1961, the Vikhroli factory started manufacturing diosgenin. The company set up an agricultural research
division in
The company was awarded the CHEMEXCIL Second Award for 1978-79 in
recognition of the company's role in the international market as also the high
ratio of exports to local sales.
The CHEMEXCIL First Award followed this in 1981-82. The company bagged the Sir P. C. Ray Award
for the development of indigenous technology in the face of stiff
competition. In the same year 1981-82,
the company developed two anticancer drugs, vinlbastine and vincristine from
the common garden plant vinca rosea.
Commercial production commenced in the company's fourth factory at
Patalganga in November, 1983. In 1985,
the US FDA approved the company's bulk drug manufacturing facilities for the
first time. In 1988, the company won the
National Award for successful commercialisation of publicly funded R &
D. The company pioneered the manufacture
of the antiretroviral drug, zidovudine, in technological collaboration with
Indian Institute of Chemical Technology in 1993.
In 1994, the company's fifth factory began commercial production at
Kurkumbh,
In 1998, the company launched lamivudine, drug of retroviral combination
therapy.
In December 2000, the company cut the price of its anti-AIDS drug
Nevimune (scientific name : nevirapine) by 34% to Rs 650 for a strip of ten
tablets. The price was earlier Rs 985. Cipla has slashed the price of the drug
thrice reducing it from the launch price of Rs 1,350 for a strip of ten to the
current price. The company attributes this to improvements in technology that
has enabled it to cut costs and pass on the savings to consumers.
Subject is the only manufacturer of nevirapine from
the basic stage in
Among the large pharma companies, the company was considered as the fastest
growing company with a pre-eminent position in anti-asthma and its foray into
high-growth areas like anti-cancer and anti-AIDS. However, current performance
is not in line with this perception.
The company is a leader in the anti-bacterial and anti-asthmatic segments in FY
2000. The company became the first player outside the
The market for such metered dose inhalers in the
After growing smartly in the domestic market, the company is now
focussing on export markets. The company has tied up with
The company has also tied up with the US-based Zenith Goldline and United
Research Labs for marketing Flutamide (an oncology drug) and Felodipine (a
cardiovascular drug) in the
Recently, in July 2001, the company has effected another round of price cuts of
its anti-AIDS drug segment. This is the forth price cut in AIDS segment during
the last nine months (last one was in May 2001). The company has cut prices its
triple drug regimen by as much as 39%. The three-drug combination of
lamivudine, stavudine and nevirapine, which was the potential to reduce the HIV
virus in the body to very low levels, will now cost the patient Rs. 0.002
millions per month down from Rs. 0.003 per month.
It has a very good product pipeline for years to come. The only threat for the company
is that the government is going to introduce the product patents post 2005. But
even if it is introduced, the company expects that it is only going to be
affected after 2012 or 2015. Because, till then, the company has very good
product pipeline. But as per company reports, if government is pragmatic in
framing new patent laws, then it will obviously progress much faster.
The company is one of the three Indian pharma companies who will jointly market
the anti-anthrax drug, Ciprofloxacin, in
Khwaja Abdul Hamied, the founder of company, was born on 31.10.1898. The
fire of nationalism was kindled in him when he was 15 as he witnessed a wanton
act of colonial highhandedness. The fire was to blaze within him right through
his life.
In college, he found Chemistry fascinating. He set sail for Europe in
1924 and got admission in
In October 1927, during the long voyage from Europe to
Cipla is born
In 1935, he set up The Chemical, Industrial & Pharmaceutical
Laboratories, which came to be popularly known as Cipla. He gave the company
all his patent and proprietary formulas for several drugs and medicines,
without charging any royalty. On 17.08.1935, Cipla was registered as a public
limited company with an authorised capital of Rs 0.600 million.
The search for suitable premises ended at 289,
The company was officially opened on 22.09.1937 when the first products
were ready for the market. The Sunday Standard wrote: "The birth of Cipla
which was launched into the world by Dr K A Hamied will be a red letter day in
the annals of Bombay Industries. The first city in
04.07.1939 was a red-letter day for company, when the Father of the
Nation, Mahatma Gandhi, honoured the factory with a visit. He was
"delighted to visit this Indian enterprise", he noted later. From the
time of the company came to the aid of the nation gasping for essential
medicines during the Second World War, the company has been among the leaders
in the pharmaceutical industry in
On 31.10.1939, the books showed an alltime high loss of Rs 67,935. That
was the last time the company ever recorded a deficit.
In 1942, Dr Hamied's blueprint for a technical industrial research
institute was accepted by the government and led to the birth of the Council of
Scientific and Industrial Research (CSIR), which is today the apex research
body in the country.
In 1944, the company bought the premises at Bombay Central and decided
to put up a "first class modern pharmaceutical works and laboratory."
It was also decided to acquire land and buildings at Vikhroli. With severe
import restrictions hampering production, the company decided to commence
manufacturing the basic chemicals required for pharmaceuticals.
In 1946, Cipla's product for hypertension, Serpinoid, was exported to the American Roland Corporation,
to the tune of Rs 0.800 Millions. Five years later, the company entered into an
agreement with a Swiss firm for manufacturing foromycene.
Dr Yusuf Hamied, the founder's son, returned with a doctorate in
chemistry from
In 1961, the Vikhroli factory started manufacturing diosgenin. This
heralded the manufacture of several steroids and hormones derived from
diosgenin.
Milestones
1935
Dr. K. A. Hamied sets up "The Chemical, Industrial and Pharmaceutical
Laboratories Limted." in a rented bungalow, at Bombay Central.
1941
As the Second World War cuts off drug supplies, the company starts
producing fine chemicals, dedicating all its facilities for the war effort.
1952
Sets up first research division for attaining self-sufficiency in
technological development.
1960
Starts operations at second plant at Vikhroli, Mumbai, producing fine
chemicals with special emphasis on natural products.
1968
The company manufactures ampicillin for the first time in the country.
1972
Starts Agricultural Research Division at
1976
The company launches medicinal aerosols for asthma.
1980
Wins Chemexcil Award for Excellence for exports.
1982
Fourth factory begins operations at Patalganga,
1984
Develops anti-cancer drugs, vinblastine and vincristine in collaboration
with the National Chemical Laboratory, Pune. Wins Sir P C Ray Award for
developing inhouse technology for indigenous manufacture of a number of basic
drugs.
1985
1988
The company wins National Award for Successful Commercialisation of
Publicly Funded R&D.
1991
Lauches etoposide, a breakthrough in cancer chemotherapy, in association
with Indian
The company pioneers the manufacture of the antiretroviral drug,
zidovudine, in technological collaboration with Indian Institute of Chemical
Technology,
1994
The company’s fifth factory begins commercial production at Kurkumbh,
1997
Launches transparent Rotahaler, the world's first such dry powder
inhaler device now patented by Cipla in
1998
Launches lamivudine, becoming one of the few companies in the world to
offer all three component drugs of retroviral combination therapy (zidovudine
and stavudine already launched).
1999
Launches Nevirapine, antiretroviral drug, used to prevent the
transmission of AIDS from mother to child.
2000
The company became the first company, outside the
2002
Four state-of-the-art manufacturing facilities set up in
2003
Launches TIOVA (Tiotropium bromide), a novel inhaled, long-acting anticholinergic bronchodilator that is employed as a once-daily maintenance treatment for patients with chronic obstructive pulmonary disease (COPD).
Commissioned second phase of manufacturing operations at
2005
Set-up state-of-the-art facility for
manufacture of formulations at Baddi, Himachal Pradesh.
BUSINESS
Subject is engaged in manufacturing of Chemicals, Tablets and Capsules,
Liquids, Creams, Aerosols, Injections, Sterile Solution and Agrochemicals and
Formulations.
It is also manufacturing and marketing of Bulk Drugs and Formulations.
It is now ranked second in
Generic Names of Principal Products/Services of Company are :-
|
Product
Description |
Item Code No. |
|
Norfloxacin |
300490.14 |
|
Ciprofloxacin |
300420.11 |
|
Amoxycillin |
300410.04 |
The company’s
products are approved by:-
Food and Drug Administration (FDA),
Medicines Control Agency (MCA),
Therapeutic Goods Administration (TGA),
Medicines Control Council (MCC),
National
Pharmaceutical Inspection Convention (PIC),
World Health Organisation (WHO)
Subject is one of the largest drug manufactures. It
manufactures and markets bulk drugs and formulations. It is now ranked second
in
The company has a very wide product range which includes antibiotics,
anti-bacterials, anti-asthmatics, anti-inflammatory anthelminites, anti-cancer
and cardiovasculars. In domestic formulation market, antibiotics are the
mainstay, which contributes around 50% of the company's revenue. Some of the
leading brands are Ciplox (Ciprofloxacin), Novamox (Amoxycilin) and Norflox
(Norfloxacin). The company is also has in its product portfolio Zidovir
(zidovudine, anti-AIDS drug). The company was one of the first among the Indian
pharmaceutical companies to introduce ampicillin and norfloxacin.
The company is constantly maintained its lead in introducing new drug
formulation. The company has very strong research and development facilities
which, has been bearing fruits. Its ability to quickly duplicate a new drug
introduced elsewhere and introduce it in the Indian market has played a
significant role in building a basket of formulation brands. Being one of the
earliest entrants into the market with a new drug, generally, enables a company
achieve higher realizations. In addition to being among the early entrants, one
aspect which has given an edge to company’s strategy is the ability to market
products at a significantly lower price.
The company has developed the world's first budesonide-based,
chlorofluorocarbons (CFC) - free anti-asthma inhaler, 'Budecort CFC-free'.
Budesonide, which falls in the preventive class of anti-asthmatic drugs, is
essentially a steroid and preferred due to its safety profile. The company has
invested over Rs. 200 millions in developing CFC-free asthma products over a period
of 12 month. The product is largely being targeted at the international
markets, which are CFC-sensitive and is awaiting for registration in the
European markets. The fruits of the new product will be obtained in the coming
years, since the company expects to increase its exports through this
product.
The Company has introduced formulations and APIs during the year. Some
of these advanced drugs have been manufactured for the first time
Adesera (Adefovir Tablets) for Chronic Hepatitis B virus Infection
Adults
Dorzox (Dorzolamide Eye Drops) for Glaucoma
Dytor (Torsemide Tablets and Injection) - A new loop diuretic
Ginette 35 (Cyproterone Acetate and Tablets) For Acne and Hirsutism
Rizact (Rizatriptan Tablets) for Acute Migraine
Valcivir (Valaciclovir Tablets) new for Herpes
Number of dosage forms and APIs manufactured the Company's various
facilities continue to enjoy the of regulatory including the US FDA, MHRA
The Company commissioned the second phase of manufacturing operations
The Company has also acquired land at Baddi in Himacha Pradesh, where work
has started on a new formulations plant.
The Cipla Chest Research Foundation Pune initiated number of important
and academic research studies inmedical in its very first year. The foundation
also conducted training programmes for the medical profession.
The company has maintained high safety standards in its plants. The
preservation of environment has remained a priority. The British Safety Council
Awarded the “Five Star Ratin” to the Kurkumbh plant and also presented the
coveted “Sword of Honour” to the Patalganga plant.
It exports its products to
It is one of the leading exporters of bulk drugs and formulations and its
products are registered in over 140 countries.
The leap in exports was a result of the company’s constant efforts to
tap new markets and introduce new products.
Management Review: 2005-2006:
Industry Structure and Developments:
The domestic pharmaceutical industry in
Performance Review:
For the first time, the Company's turnover crossed the
Rs.30000.000 Millions mark. At Rs.30196.800 Millions, sales recorded a healthy
30 per cent growth over the previous year. Once again, this was way above the
overall growth rate of the industry. Exports continued to do well and at
Rs.15136.400 Millions contributed 50 per cent to the overall sales of the
Company. Cipla now exports to nearly 170 countries in Europe,
The Company continued with its successful strategy of working through
partnerships and strategic alliances in order to sustain its expansion in
international markets.
The overall net profits of the Company grew by 48 per cent and stood at
Rs.6076.400 Millions. This was mainly on account of improved product mix,
optimum utilisation of tax benefits and higher non-operating income.
The Company's steady progress won it the Express Pharma Pulse Award for
'sustained growth' for the year 2005-2006. Cipla is one of the handful of
companies in
Products:
Cipla yet again took a lead in introducing many drug formulations and Active
Pharmaceutical Ingredients (APIs) in the country. Some of the formulations have
the unique distinction of being the first products of their kind in the world.
These introductions included:
Imidara (imiquimod cream) - Topical immune response modifier for genital
warts.
Lopimune (lopinavir and ritonavir sofgelcaps) - Combination protease inhibitor
for HIV/AIDS
Bifilin (prebiotic and postbiotic capsules and sachet) - Probiotic
supplement
Dorzox T (dorzolamide and timolol eye drops) - Combination therapy for
glaucoma
Latim (latanoprost and timolol eye drops) - Novel combination therapy for
glaucoma
Ribocor (d-ribose sachet) - Cardiac energy supplement
Simcard EZ (simvastatin and ezetimibe tablets) - Combination therapy for
lowering cholesterol and lipids
Tenvir (tenofovir tablets) - Novel antiretroviral for HIV/AIDS
Aqwet (sodium carboxymethylcellulose spray) - Hydrating spray for dry
mouth
Diurem (metolazone tablets) - Thiazide-like diuretic
Migset (miglitol tablets) - Novel alpha-glucosidase inhibitor for use in
diabetes
Zoratame (acitretin capsules) - Retinoid for psoriasis
8X shampoo (ciclopirox shampoo) - Antifungal shampoo for
dandruff and seborrhoeic dermatitis
Cresar (telmisartan tablets) - New angiotensin II receptor antagonist for
hypertension
Urimax D (tamsulosin and dutasteride tablets) - Novel combination treatment for
benign prostatic hyperplasia
Propcaine (proparacaine eye drops) - Topical anaesthetic agent for use in
ocular surgery.
Divaine (minocycline tablets) - Antibiotic for acne
Infrastructure:
Manufacturing Facilities:
The Company's new export-oriented manufacturing unit for APIs and
drug formulations is nearing completion at Patalganga. It is expected to
commence production in the second quarter of 2006-2007. During the year, the
Company expanded its facilities at Baddi in Himachal Pradesh.
In addition, the Company is planning to set up a large drug formulation
manufacturing facility for various dosage forms at a Special Economic Zone
(SEZ) in
The Company has also planned major additions to its manufacturing facilities at
Kurkumbh and
Safety and Environment Care:
As always, the Company maintained high standards of occupational health, safety
and environment friendly practices at all units. During the year, Cipla's
Kurkumbh unit was awarded the 'Five Star' rating and qualified for the 'Sword
of Honour' while the Patalganga unit was awarded the 'Sword of Honour' for the
second time, by the British Safety Council,
In addition, the Kurkumbh plant has been certified for compliance with ISO
14001 and OHSAS 18001 standards. Cipla's Goa unit was awarded the 'Longest
Accident-Free Year' trophy by the Chief Minister of Goa after certification of
its performance by the Green Triangle Society, Goa in consultation with the
Factory Inspectorate,
Opportunities:
International Markets:
While the Company has a strong presence in the developing countries, one of the
Company's business strategies is to collaborate with its international business
partners to develop and supply products to the regulated and developed markets.
Cipla has entered into partnerships for 123 products with a number of partners
in the
Technological Strengths:
The Company intends to leverage its technological advantage developed over 70
years to maintain its leadership position in the domestic market while striving
to expand its business in other markets.
The Company will retain its focus on result-driven research work to develop and
enhance know-how for new drug delivery systems and manufacturing processes both
for APIs and drug formulations.
Cipla's strategic alliance with Avestha Gengraine Technologies Private.
Limited., for the development of biotherapeutic products is progressing
satisfactorily.
The Company has continued to file a number of patents both in
The Company is confident that its emphasis on large scale commercial
exploitation of technologically advanced products in its state-of-the-art
facilities will give Cipla a definite advantage in meeting the future demands
of the global market.
Community Care:
The Cipla Foundation's Palliative Care Centre in Pune continues to provide care
to terminally ill cancer patients. As of date, this institution has provided
comfort and solace to nearly 5000 patients.
The Company continues to provide patients in
The Company has always been prompt in providing free medicines to those
affected by natural calamities in various parts of the country. During the
year, Cipla supplied free medicines to the flood-affected in various states of
In addition, the Company continued to support the promotion of education and
community welfare, both directly and through its charitable trusts.
Press Release :
Animal-Pharm /Monday, April 23, 2007
Cipla - organic growth and alliances pave
the way for new products
The company has also, in general, kept away from major acquisitions,
preferring organic growth and the alliance route to enter many big
international markets.
Among other advantages, alliances help share the costs and risks that come with
expanding into new markets.
Cipla has used an unconventional route to develop its animal health
business as well, tapping the international market first and then looking
homewards. The company has been focusing on developing its veterinary export
business ahead of moving full-throttle into the domestic market with its entire
range of animal health products. Out-licensing is another developing plank of
its international business growth plan.
Cipla's CEO, Amar Lulla, said that exports account for more than 90% of
the company's animal health business and the business has performed "as
per the targets" set both in the international and domestic markets in
2006.
Cipla's animal health business is estimated at about $14 million for
2006-07, despite the resurgence of avian influenza, which adversely affect
sales of some poultry products in Asia and parts of
"Cipla has already started exporting its products to markets in the EU and
will shortly do so in the
"They expect to start US exports in the second quarter of 2007. The
products are in alliance with partners in the
The products that will be exported to the
Out-licensing
Significantly, the company is also working on out-licensing arrangements for a
number of projects. Cipla said that it has developed a range of animal health
products according to the requirements of the US Food and Drug Administration's
Center for Veterinary Medicine, and entered into marketing arrangements with
customers for these. "The customer will be responsible for the registration
process and they will supply all the necessary documentation required,"
the company explained.
Some of the products, for which discussions are in an advanced stage,
include detomidine injection, medetomidine injection, atipamezole injection, omeprazole
paste, co-amoxiclav formulations, meloxicam oral suspension and injections,
fipronil preparations, several dewormers for companion and equine animals.
Cipla is also keen to develop in-licensing arrangements not just for the Indian
market, but also in various other parts of the world.
The company is expanding its product offerings abroad and is working on a
program to launch aquaculture products internationally in export markets.
"This is likely to happen by the end of this year," Mr Lulla said.
Business instinct
Cipla attributes some of the growth momentum in its fledgling veterinary
business to "business instinct", but adds that the market
opportunities for exports have also been compelling factors. "The process
of the servicing the needs of the animal health industry started in 2002. They
ventured in to the veterinary business to fulfill certain product requirement
requests of their international customers of human pharmaceuticals, who also
had animal health businesses. They developed and made some basic products for
them like antibiotic and anthelmentic powder injections and liquid
preparations," the company said rather candidly.
Gradually the company brought in more international customers and
partners, developing new products along the way. Since the growth of the
veterinary business was fuelled by its new international partners and
alliances, the company simply stayed on the exports course.
"In a way, looking first at international markets helped them to
understand this business better," Cipla said. "Besides, the
international market was larger, more developed and remunerative compared with
the Indian market. And the domestic market was unstructured, with product
quality expectations of customers figuring at the lower end," the company
explained.
The animal health industry in
Domestic business
Cipla's domestic focus is mainly on the equine and companion animal products
segment, where it expects to develop a strong presence. "Equine products
have been extremely well received in the Indian market and the leading products
are in the deworming and antiulcerant segments," the company said. In the
companion animal segment, the products are mainly in areas such as ear
infections, antibiotics and non-steroid anti-inflammatories.
The equine and companion animal businesses have been the fastest growing
segments for Cipla over the past, largely due to the wide range of products,
including niche products, which offers customers a "one-stop shop"
for veterinary medicines.
For example in the equine segment, the company complements its range of
dewormers with niche products for ulcer treatment and respiratory disorders.
Similarly, in the companion animals segment the company offers dewormers,
general antibiotics and a range of ear treatments, as well as somewhat more
sophisticated products such as cyclosporin eye ointments and capsules, and flea
and tick treatment products.
The companion animal segment has emerged as one of the fastest growing
segments in the Indian industry, growing at an estimated 19% per year.
Some experts say that
Cipla also has a range of herbal products in the equine and companion
animal segments and there are plans to target the poultry and livestock
segments as well. The leading products in this segment include Tefrosol Forte
Liquid for liver protection and Dermavet Ointment for wounds and cuts for
horses and companion animals.
Earlier the company also said that it expects to launch a range of
generic products including meloxicam chewable tablets, florfenicol injection
and toltrazuril 5% on certain export markets and then gradually introduce these
on the domestic market. Some of the products that have already been launched
include Care-O-Pet (carprofen tablets), Buprocip Injection (buparvaquone) and
Heartcare chewable tablets (chocolate-flavored tablets containing ivermectin
and pyrantel).
Clearly, Cipla's differentiated growth plans
in the animal health segment hold promise given that the company has yet to tap
into the Indian market fully and that new business plans are poised to take
off. This may just be the one area where the company hopes its performance is
no different from that of its human pharmaceutical business, which has
consistently outperformed the market over the years.
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.40.63 |
|
|
1 |
Rs.81.01 |
|
Euro |
1 |
Rs.54.89 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--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 |
|
80 |
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 |
|