MIRA
INFORM REPORT
|
Report Date : |
12.03.2007 |
IDENTIFICATION
DETAILS
|
Name : |
BIOARC RESEARCH SOLUTIONS DIVISION OF ALEMBIC LIMITED |
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Registered
Office : |
Alembic Road, Vadodara
– 390 003, Gujarat |
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Country: |
India |
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Financials as
on: |
31.03.2006 |
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Date of
Incorporation : |
30.07.1907 |
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Com. Reg. No.: |
04-33 |
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CIN No.: [Company
Identification No.] |
026100GJ1907PLC000033 |
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IEC No. |
0888002351 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BRDA00819A |
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PAN No.: [Permanent
Account No.] |
AABCA7950P |
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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 : |
Manufacturer of
Bulk Drugs such as Penicillin, Broad Spectrum Antibiotics, Hydroxocobalamin,
Drugs & Chemicals, Protinules, Hard Gelatine Capsules and Ethyl Alcohol,
Formulations such as Tablets & Capsules, Injectables and Oral
Preparations & Ointments and various others such as Electric Power
Generator, Polypropylene Fibre and Multifilament Yarn. |
RATING &
COMMENTS
|
MIRA’s Rating
: |
A |
RATING |
STATUS |
PROPOSED
CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded
healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
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Maximum Credit
Limit : |
USD 12500000 |
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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 company having fine track. Available information
indicates high financial responsibility of the company. Trade relations are
fair. Payments are correct and as per commitments. The company can
be considered good for any normal business dealings. It can be regarded as a
promising business partner in medium to long run. |
LOCATIONS
|
Registered
Office : |
Alembic Campus,
Vadodara – 390 003, Gujarat, India |
|
Tel. No.: |
91-265-2284074/75/2280550/2280880/2307989/2307652 |
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Fax No.: |
91-265-2280331/2228293/2281229/2281173 |
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E-Mail : |
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Website : |
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Plants : |
Alembic Road,
Vadodara- 390 003, Gujarat Panpharm
(Formulation Division), Panelav, Taluka Halol, District Panchmahals – 389
350, Gujarat API Division,
Panelav, Taluka Halol, District Panchmahals – 389 350, Gujarat Plot No. 112
& 121, Panchal Industrial Estate, Village Bhimpore, Daman – 396 210 |
DIRECTORS
|
Name : |
Mr. Chirayu R. Amin |
|
Designation : |
Chairman & Managing Director |
|
Address : |
F-10/192, Race Course Circle, Vadodara – 390 007, Gujarat |
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Date of
Birth/Age : |
57 years |
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Qualification
: |
B. Sc., MBA |
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Experience : |
31 years |
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Date of
Appointment : |
01.05.1983 |
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Name : |
Mrs. Malika C. Amin |
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Designation : |
Whole Time Director |
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Address : |
F-10/192, Race Course Circle, Vadodara – 390 007, Gujarat |
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Date of
Birth/Age : |
49 years |
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Qualification
: |
M.A. |
|
Experience : |
19 years |
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Date of
Appointment : |
02.07.1988 |
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|
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|
Name : |
Dr. Babubhai R. Patel |
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Designation : |
Director |
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Address : |
Opposite Brahman Sabha Hall, Pradap Road,Vadodara – 390 001, Gujarat |
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Date of
Birth/Age : |
74 years |
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Qualification
: |
M.A., MRCP EDIN. |
|
Experience : |
44 years |
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Name : |
Mr. Ranjitbhai R. Patel |
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Designation : |
Director |
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Address : |
“Shivam”, Old Padra Road, Vadodara – 390 015, Gujarat |
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Date of
Birth/Age : |
83 years |
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Qualification
: |
B. Com. |
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Experience : |
41 years |
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|
Name : |
Mr. Rajkumar Baheti |
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Designation : |
Director & Company Secretary |
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Address : |
Arihant Flats, 2nd Floor, 27, Sevaknagar, Vadodara – 390
007, Gujarat |
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Date of
Birth/Age : |
44 years |
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Qualification
: |
B. Com., ACA, FCS |
|
Experience : |
23 years |
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|
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|
Name : |
Mr. Ramanlal M. Kapadia |
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Designation : |
Director |
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Address : |
49/50, Marti Mandir Society, Iskon Temple Road, Vadodara – 390 007,
Gujarat |
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Date of
Birth/Age : |
68 years |
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Qualification
: |
M. Com.m LLB., DTP, FICWA, FCS, AIMA.DM |
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Experience : |
43 years |
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|
Name : |
Mr. Pranav N. Parikh |
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Designation : |
Director |
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Address : |
Laxmi Mills Estate, D. Moses Road, Mahalaxmi, Mumbai – 400 011 |
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Date of
Birth/Age : |
61 years |
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Qualification
: |
B. Com., Bus. Admn. |
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Experience : |
36 years |
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Name : |
Mr. K. G. Ramanathan |
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Designation : |
Director |
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Address : |
192, Jolly Maker 3, 119, Cuffe Parade, Mumbai – 400 005 |
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Date of
Birth/Age : |
65 years |
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Qualification
: |
P G (Physics) & IAS |
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Experience : |
41 years |
KEY EXECUTIVES
|
Name : |
Mr. Ramanlal M.
Kapadia |
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Designation : |
Director & Sr. Vice President (Management Services) and Company
Secretary |
SHAREHOLDING
PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Promoters and
Associates |
16,956,989 |
61.24 |
|
Mutual Funds and
UTI |
310,613 |
1.12 |
|
Banks, Financial
Institution and Insurance Companies |
652,591 |
2.35 |
|
Foreign
Institutional Investors |
1,452,396 |
5.25 |
|
Private Corporate
Bodies |
668,253 |
2.41 |
|
Indian Public |
6,205,203 |
22.41 |
|
NRIs/OCBs |
1,444,636 |
5.22 |
|
Any Other |
300 |
0.00 |
|
TOTAL |
27,690,981 |
100.00 |
BUSINESS DETAILS
|
Line of
Business : |
Manufacturer of
Bulk Drugs such as Penicillin, Broad Spectrum Antibiotics, Hydroxocobalamin,
Drugs & Chemicals, Protinules, Hard Gelatine Capsules and Ethyl Alcohol,
Formulations such as Tablets & Capsules, Injectables and Oral
Preparations & Ointments and various others such as Electric Power
Generator, Polypropylene Fibre and Multifilament Yarn. |
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Products : |
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GENERAL
INFORMATION
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No. of
Employees : |
4058 |
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Bankers : |
Bank of Baroda,
B\CBB, 101, Payal Complex, Sayajiganj, Vadodara, Gujarat ABN-AMRO Bank N V,
Vadodara, Gujarat ICICI Bank
Limited, Vadodara, Gujarat IDBI Bank
Limited, Vadodara, Gujarat Indian Bank,
Vadodara, Gujarat Punjab National
Bank, Vadodara, Gujarat Union Bank of
India, Vadodara, Gujarat UTI Bank of
India, Vadodara, Gujarat Vijaya Bank, Vadodara,
Gujarat ING Bank NV,
Vadodara, Gujarat Vysya Bank,
Vadodara, Gujarat |
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Banking Relations : |
Good |
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Auditors : |
K. S. Aiyar &
Company Chartered
Accountants |
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Address : |
4th Floor,
Janmabhoomi Bhavan, 24-26, Janmabhoomi Marg, Fort, Mumbai - 400 001,
Maharashtra |
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Associates/Subsidiaries
: |
Alembic Glass
Industries Limited Purak Vinimay
Limited Paushak Limited Shreno Limited Light
Publications Limited Alembic Export Limited
Aavaran Limited Algen Private
Limited Nirayu Private
Limited Whitefield
Investment & Leasing Company Private Limited Shreno Investment
& Finance Limited Sierra
Investments Limited Whitefield
Chemtech Private Limited PSU Chemicals
Private Limited Viramya Packlight
Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
30000000 |
Equity Shares |
Rs. 10/- each |
Rs. 300.000 millions |
|
2000000 |
Redeemable
Cumulative Preference Shares |
Rs. 100/- each |
Rs. 200.000 millions |
|
|
TOTAL |
|
Rs. 500.000 millions |
Issued,
Subscribed Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
27692854 |
Equity Shares |
Rs. 10/- each |
Rs. 276.929 millions |
Paid up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
27690000 |
Equity Shares |
Rs. 10/- each |
Rs. 276.900 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 |
276.900 |
276.919 |
264.400 |
|
|
2] Share
Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves &
Surplus |
3085.400 |
2459.711 |
1863.400 |
|
|
4] (Accumulated
Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
3362.300 |
2736.630 |
2127.800 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1424.300 |
1630.450 |
1459.900 |
|
|
2] Unsecured
Loans |
373.100 |
402.431 |
543.000 |
|
TOTAL
BORROWING
|
1797.400 |
2032.881 |
2002.900 |
|
|
DEFERRED TAX
LIABILITIES |
0.000 |
406.846 |
0.000 |
|
|
|
|
|
|
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TOTAL
|
5159.700 |
5176.357 |
4130.700 |
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APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
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FIXED ASSETS [Net Block]
|
3139.600 |
3153.221 |
2665.800 |
|
Capital work-in-progress
|
18.000 |
0.000 |
116.400 |
|
|
|
|
|
|
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INVESTMENT
|
241.900 |
286.756 |
136.800 |
|
DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
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Inventories
|
1403.300
|
1177.299
|
849.300 |
|
|
Sundry Debtors
|
1517.500
|
1086.348
|
1157.200 |
|
|
Cash & Bank Balances
|
8.800
|
13.848
|
18.100 |
|
|
Loans & Advances
|
722.400
|
507.776
|
701.700 |
Total Current Assets
|
3652.000
|
2785.271
|
2726.300 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
1572.400
|
954.167
|
1418.200 |
|
|
Provisions
|
319.400
|
94.724
|
96.400 |
Total Current Liabilities
|
1891.800
|
1048.891
|
1514.600 |
|
Net
Current Assets
|
1760.200
|
1736.380
|
1211.700 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
5159.700 |
5176.357 |
4130.700 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
6994.800 |
5351.439 |
6244.000 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
834.900 |
557.864 |
430.300 |
Provision for Taxation
|
49.700 |
39.700 |
117.700 |
Profit/(Loss) After Tax
|
785.200 |
518.164 |
312.600 |
|
|
|
|
|
Export Value
|
N.A. |
1059.130 |
1242.900 |
|
|
|
|
|
Import Value
|
N.A. |
805.843 |
710.995 |
|
|
|
|
|
Total Expenditure
|
6159.900 |
4934.755 |
5813.700 |
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2006 [1st Qtr.] |
30.09.2006 [2nd Qtr.] |
31.12.2006 [3rd Qtr.] |
|
Sales Turnover |
1435.500 |
2027.100 |
1837.600 |
|
Other Income |
29.400 |
40.800 |
15.500 |
|
Total Income |
1464.900 |
2067.900 |
1853.100 |
|
Total Expenditure |
1249.200 |
1714.000 |
1504.000 |
|
Operating Profit |
215.700 |
353.900 |
349.100 |
|
Interest |
06.800 |
90.400 |
30.300 |
|
Gross Profit |
208.900 |
263.500 |
318.800 |
|
Depreciation |
67.200 |
73.000 |
75.300 |
|
Tax |
[39.500] |
26.500 |
[01.200] |
|
Reported PAT |
182.500 |
162.800 |
251.000 |
Notes
2006-06 Quarter 1 –
Gross
Sales Includes Domestic Rs 1121.70 million Exports Rs 390.50 million Expenditure
Includes (Increase)/Decrease in stock in Trade Rs (178.80) million Consumption
of Raw Materials & Packing Material Rs 603.80 million Purchase of Finished
Goods Rs 192.30 million Employees Cost Rs 207.70 million Excise Duty Rs 25.40
million Other Expenditure Rs 424.20 million Tax Includes Provision for Deferred
Tax Liability / (Assets) Rs 1.30 million Current Tax & Fringe Benefit Tax
Rs (19.20)million Income Tax of earlier years written back Rs 58.70 million EPS
is Basic & Diluted 1. The above results, duly reviewed by statutory
Auditors, were recommended by the Audit Committee and were approved by Board of
Director. 2. The Company is engaged in Pharmaceutical business only and
therefore, there is only one reportable segment in accordance with the
Accounting Standard on Segment Reporting (AS - 17). 3. Following the Honble
Supreme Court Judgement dated April 12, 2004, the Company on its own,
calculated net amount payable after adjusting counter claims and offered to pay
to ONGC Rs 29.347 million towards interest liability on delayed payment of
price difference on gas supplied during the period from January 01, 1982 to
January 29, 1987 (Pre-'87 ). The Company has provided this amount of Rs 29.347
million in it's books in the year 2004-05. The discussions with O.N.G.C. are on
to settle pre-1987 liability. The principal amount of liability in respect of
period January 30, 1987 to May 31, 1991 has been charged off in the past. The
said amount was arrived at after considering the counter claims of the Company
on ONGC regarding Royalty and sales Tax on short liftment charges. No provision
for interest in respect of period between January 30, 1987 to May 31, 1991 has
been made, pending re-determination of liability by ONGC in line with Honorable
Supreme Court's directive in judgement dated April 12, 2004 pertaining to
pre-1987 period. 4. The Company has during the quarter decided to reinstate the
fixed assets, revalued earlier at their historical cost. Accordingly the
revaluation reserve as at April 01, 2006 has been adjusted against the written
down value of the relevant fixed assets. 5. The depreciation hitherto provided
on the assets at different rates methods has now been provided uniformly on
straight line method at the rates prescribed in schedule XIV of the Companies
Act, 1956. Consequently, the excess depreciation provided upto March 31, 2006
amounting to Rs 4.30 million has been written back during the quarter.
Accordingly the depreciation charge of the quarter is lower and profit for the
quarter higher by like amount. 6. Employees cost includes Rs 23.90 million of
arrears of salary and wages paid w.e.f. January 01, 2005 vide settlement deed
dated May 19, 2006 with the Alembic Karmachari Union. 7. The Board of Directors
has approved to split the face value of the equity shares of the Company from
Rs 10/- per share to Rs 2/- per share subject to the approval of shareholders
of the Company at the Annual General Meeting of the Company to be held on
August 30, 2006. 8. The previous quarter's figures have been regrouped /
rearranged wherever necessary to make it comparable with the current quarter.
9. Details of Investor's Complaints for the quarter ended on 30th June, 2006:
Unresolved at the beginning of the quarter-Nil, Received during the quarter-33,
Disposed off during the quarter-33, Unresolved at the end of the quarter-Nil.
2006-09 Quarter 2 –
E P S
Basic & Diluted 1. The above results duly reviewed by Statutory Auditors
were approved by Board Directors 2. The Company is engaged in Pharmaceutical business
only and therefore, there is only one reportable segment in accordance with the
Accounting Standard on Segment Reporting (AS - 17) 3. The Company finally got a
communication from ONGC for settlement of all it's pre 1987 dues at Rs. 105
millions on lump sum basis. The Company had already provided the amount of Rs.
29.3 millions in it's books during previous year ending 31st March, 2005. The
balance amount of Rs. 75.700 millions now being charged as expense in the
quarter ended September, 2006. The Company has paid the said Rs. 105 millions
to ONGC after deduction of TDS. There is no change in the status of post 87
dues which continues to be sub- judice. No provision for interest in respect of
period between 30.01.1987 to 31.05.1991 has been made, pending re-determination
of liability by ONGC. 4.The Company Split the face value of Equity shares from
Rs. 10/- per share to Rs. 2/- per share and accordingly issued 13,84,54,905
Equity shares of Rs.2/- each to the shareholders of the Company holding Equity Shares
of Rs. 10/- each on Record Date i.e. 04th October, 2006. 5. Details of
Investor's Complaints for the quarter ended on 30th September, 2006 :
Unresolved at the beginning of the quarter-NIL, Received during the quarter-39,
Disposed off during the quarter-39 , Unresolved at the end of the quarter-NIL .
6. The previous quarter's figures have been regrouped / rearranged wherever
necessary to make it comparable with the current quarter / period.
200612
Quarter 3 –
Extraordinary items includes Expenses under Voluntary
Retirement Scheme EPS is Basic & Diluted Status of Investor Complaints for
the quarter ended December 31, 2006 Complaints Pending at the beginning of the
quarter Nil Complaints Received during the quarter 29 Complaints disposed off
during the quarter 29 Complaints unresolved at the end of the quarter Nil 1.
The above results, duly reviewed by Statutory Auditors, were recommended by the
Audit Committee and were approved by Board of Directors. 2. The Company is
engaged in Pharmaceutical business only and therefore, there is only one
reportable segment in accordance with the Accounting Standard on Segment
Reporting (AS -17). 3. As communicated earlier, the Company did a settlement
for all its pre 1987 dues with ONGC at Rs 105.00 million on lumpsum basis. The
Company had already provided the amount of Rs 29.30 million in it's books
during previous year ending March 31, 2005. The balance amount of Rs 75.70
million has been charged as expense in the quarter ended September, 2006. The
Company has paid the said Rs 105.00 million to ONGC after deduction of TDS. The
Company is in dialogue with ONGC for an out of Court settlement of post 1987
dues also on lumpsum basis. No provision for interest in respect of period between
January 30, 1987 to May 31, 1991 has been made, pending final communication of
liability by ONGC. 4. The Company has Split the face value of Equity shares
from Rs 10/- per share to Rs 2/- per share and accordingly issued 13,84,54,905
Equity shares of Rs 2/- each to the shareholders of the Company holding Equity
Shares of Rs 10/- each on Record Date i.e. October 04, 2006. 5. The previous
quarter's / period's figures have been regrouped / rearranged wherever
necessary to make it comparable with the current quarter period.
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt Equity Ratio |
0.64 |
0.86 |
1.21 |
|
Long Term Debt Equity Ratio |
0.31 |
0.48 |
0.66 |
|
Current Ratio |
1.20 |
1.15 |
1.15 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
1.31 |
1.24 |
1.61 |
|
Inventory |
5.12 |
5.60 |
6.99 |
|
Debtors |
5.07 |
5.06 |
5.26 |
|
Interest Cover Ratio |
8.33 |
4.82 |
3.43 |
|
Operating Profit Margin (%) |
16.98 |
15.63 |
13.30 |
|
Profit Before Interest and Tax Margin (%) |
12.63 |
11.12 |
9.98 |
|
Cash Profit Margin (%) |
14.87 |
13.68 |
8.46 |
|
Adjusted Net Profit Margin (%) |
10.52 |
9.17 |
5.14 |
|
Return on Capital Employed (%) |
17.02 |
14.42 |
15.73 |
|
Return on Net Worth (%) |
23.27 |
22.08 |
17.86 |
STOCK PRICES
|
Face Value |
Rs. 10.00/- |
|
High |
Rs. 365.00/- |
|
Low |
Rs. 351.05/- |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY:
Subject was
incorporated on 30th July 1907 at Vadodara in Gujarat under the name
and style of Alembic Chemical Works Company Limited having Company Registration
Number 33. Subsequently, the name of
the company was changed to present
during August 1999. Company has already completed 80 years of operations. Company makes Glycodin, a most popular cough
syrup for over 50 years.
The company’s IEC
No. is 0888002351.
The company was
originally engaged in manufacturing chemicals, liquors, etc. However, from
1950's onwards, it ventured into pharmaceutical business, in the production of
bulk drugs.
The company changed
its name for truly reflecting the pharmaceutical nature of business being
carried out and in the nominal value of equity shares from existing Rs. 100 per
equity share to Rs. 10 per equity share.
In 1970, the company
commenced the production of two antibiotics (streptomycin, erythromycin). The hard gelatine capsules manufacturing
plant was commissioned in 1972. In
1989-90, the Panpharm division was started at Panelav (Gujarat) to undertake
manufacture of formulations. Subject
entered the field of veterinary and animal healthcare during 1986-87. The
company has also added a new unit for the manufacture of bulk drugs by the
acquisition of manufacturing facilities of Darshak Limited.
In 1995, the
veterinary division of the company was tied up with the animal health division
of Hindustan Ciba-Giegy to export eight veterinary products to Ciba
(Bangladesh).
In 1998-99, the
installation work of Cephalosporin-C recovery plant has been completed and that
of 7-ACA was commissioned in October 2000.
The Bulk Drug unit
of Darshak Limited was amalgamated with the company with the approval of High
court of Gujarat and the legal formalities was also completed w.e.f.
16.09.2002. As per the scheme, the shareholders of Darshak Limited was allotted
shares in the ratio of 6 shares of company for every 100 shares of Darshak
Limited. The company has got the ISO 9002 and ISO 14001 certification during
2002-03.
The company has
expanded the installed capacity of Tablets and Capsules in the year 2003. It
has increased the installed capacity by 255.000 millions (nos.) and
consequently the total capacity of Tablets has been increased to Rs. 2413.000
millions (nos.).
The company has
finalized a major business-restructuring plan under which it will create a new
division for cardiovascular and diabetic drugs while hiving of some odd brands
into a franchisee company for their marketing. The company has introduced novel
anti diabetic product Nateglinide in the brand name of NATELIDE. The company
plans to set up R & D Centre at Vadodara covering 7500 square meters. The
facility would consist of Chemistry, Analytical and Biological Laboratories. In
order to make more significant in generic market and also to make it US FDA
qualified the company made investment at its Panelav plant. This facility was
expected to be inspected in the first quarter of 2004.
During
March 2004 the company has issued bonus equity shares to its shareholders in
the ratio of 2:1. The company has increased the installed capacity of Tablets
& Capsules and Oral Preparation & Ointments by 900 Million Nos and 3528
MT respectively during 2004-05 and with this expansion the total installed
capacity of Tablets & Capsules and Oral Preparation & Ointments has
increased to 4058 Million Nos and 9462.616 MT respectively.
During 2004-05 the company has launched 23 new products including line
extensions to expand its product portfolio. Further the company has launched
ZERO a new generation, no calories, Sucralose Based Sugar Substitute which gave
entry for the company into the high-growth lifestyle OTC product segment.
The company has set up a formulation manufacturing facility at Baddi in
Himachal Pradesh with a capital investment of Rs. 280 millions spread over
19000 sq. mts and the plant has 900 million tablets and 600 million liquid oral
bottles production capacity annually. Further the company has invested Rs.216
millions for a new 120000 sq. ft R&D facility.
BUSINESS
Subject is engaged
in Manufacturing of Bulk Drugs such as Penicillin, Broad Spectrum Antibiotics,
Hydroxocobalamin, Drugs & Chemicals, Protinules, Hard Gelatine Capsules and
Ethyl Alcohol, Formulations such as Tablets & Capsules, Injectables and
Oral Preparations & Ointments and various others such as Electric Power
Generator, Polypropylene Fibre and Multifilament Yarn.
Operations
The Company's Gross Sales including export incentives were Rs. 6660 millions
for the year ended 31st March, 2006 as compared to Rs. 5720 millions
for the previous year, which shows a growth of 16%.
The Profit before Interest, Depreciation, Non-recurring expenses and Taxes was
Rs. 1209.2 millions for the year under report as compared to Rs. 900.5 millions
for the previous year. This growth in Profit is due to better product mix in formulations,
cost reduction and improvement in operational efficiency.
During the year, the interest and financing cost has been Rs. 86.7 millions as
compared to Rs. 88.2 millions in the previous year, due to better financial
management.
i) Domestic Formulation Sales
Sale of Domestic formulations for the year ended 31st March, 2006 is
Rs. 4564.2 millions as compared to Rs. 3642.7 millions for the previous year
ended on 31st March, 2005.
The domestic formulations posted a growth of 25% compared to the previous year,
owing to an improved performance of existing brands and introduction of new
brands. This growth also takes into account the fact that sales in the last
quarter of previous financial year were severely affected by VAT.
(ii) Export Formulation Sales
The sales of formulations export was Rs. 453.5 millions for the year ended 31st
March, 2006 as compared to Rs. 418.6 millions in the previous year ended 31st
March, 2005, showing a growth of 8% over the previous year.
(iii) Domestic API Sales
The domestic sale of API was Rs. 702.6 millions for the year ended on 31st
March, 2006 as compared to Rs. 815.4 millions for the previous year. This
degrowth registered in the API sales was due to discontinuation of penicillin products.
(iv) Export API Sales
The export sale of API was Rs. 773.4 millions for the year ended on 31st
March, 2006 as compared to Rs. 673.7 millions for the previous year,
registering a growth of 15% over the previous year.
OUTLOOK
The Company is well positioned in the emerging business scenario with a clear
objective to enhance domestic market share and select international markets by
way of spending more on R&D and achieving higher levels of productivity and
efficiency in all areas of operations.
FINANCE
The Company has registered a total income of Rs. 6514.7 millions for the year
under report as compared to Rs. 5318.1 millions for the previous year ended on
31st March, 2005. The Profit, before providing for Interest,
Depreciation, Non-recurring expenses and Taxes, was Rs. 1209.2 millions for the
year under report, as compared to Rs. 900.5 millions for the previous year. The
Company has made a profit after tax of Rs. 785.2 millions for the year under
report, as compared to Rs. 520.4 millions for the previous year.
Company profile
Subject
is the flagship company of the Alembic Group. Corporate office &
manufacturing unit are located in the heart of Baroda City amidst green
ambience, 400 kms north of Mumbai. The sprawling Alembic complex is spread over
a land area of around 300,000 square meter with built-up area of 90,000 square
meter. Having been awarded the prestigious
ISO-9002 & ISO-14001 Certification for manufacturing & marketing of
active pharmaceutical ingredients & finished dosage forms for domestic and
international markets, Alembic Limited is well-equipped with WHO-GMP accredited production facility. This
speaks of its total commitment to quality and continuous improvement in its
product and services.
The company exports
its products to Albania, Algeria, Argentina, Bangladesh, Bolivia, Brazil,
Bulgaria, Cambodia, Canada. Chile, China, Columbia, Costa Rica, Denmark,
Dominican Rep., Egypt, El Salvador, Ethiopia, Georgia, Germany, Greece,
Guatemala, Honduras, Hong Kong, Indonesia, Iran, Israel, Italy, Jamaica,
Jordan, Kenya, Lesotho, Madagascar, Malawi, Malaysia, Maldives, Mali,
Mauritius, Mexico, Moldavia, Morocco, Mozambique, Myanmar, The Netherlands,
Nicaragua, Nigeria, North Korea, Oman, Pakistan, Paraguay, Peru, Philippines, Poland,
Portugal, Russian Fed., Saudi Arabia, Singapore, South Korea, Spain, Sri Lanka,
Sudan, Swaziland, Switzerland, Taiwan, Tanzania, Thailand, Trinidad, Tobago,
Turkey, Uganda, Ukraine, United Kingdom, Uruguay, USA, United Arab Emirates,
Uzbekistan, Venezuela, Vietnam, White Russia, Yemen, Zambia and Zimbabwe.
It imports drugs,
pharmaceuticals, chemicals and drug intermediates from China, Japan, Germany,
USA, Italy, Spain, UK, Australia, etc.
It purchases
against L/C or Credit (90 to 120 days) terms.
It sells against
L/C or Credit (90 days) terms.
The company has
been accredited with ISO 9002 and ISO 14001 Certification.
The company is in
trade terms with:
v Alex Packaging Limited
v Steelart Engineering Private Limited
v J K
Melt Products Private Limited
v Rushabh Industries
v Shreyas Chemical
v Swan Sales Corporation
v Surat Ammonia Supply Company
v Conserve Watercare Private Limited
v Dinesh Pharmaceuticals Private Limited
v Desai Enterprises
v M. Apotheke Private Limited
v Ven-Petrochem and Pharma (India) Private Limited
v Shree Ajitnath Caps.
v S R Enterprise
The company is
negotiating with leading generic manufacturers to join them as associate
suppliers.
As a part of its
plan to foray into the multimillion dollar generic market, the company has
decided to double the capacity of its formulation plant from 30 m to 60 m solid
oral dosages in the first phase and in the second phase, the formulation plant
technology would be upgraded to match the European Union standards set by
Medicine Control Centre and Medicine Control Agency in UK and Therapeutic Goods
Agency in Australia.
The company has
finalized a major business-restructuring plan under which it will create a new
division for cardiovascular and diabetic drugs while having of some odd brands into
a franchisee company for their marketing.
The company's fixed
assets of important value includes Freehold Land, Pharma & Other Building,
Employees Quarters, Pharma & Other Plant & Machinery, Railway Siding,
Furniture & Fixtures, Office Equipments and Vehicles.
AS PER WEBSITE
Based at Vadodara, India (250 miles north of Mumbai) BioArc
Research Solutions is the research and development division of Alembic Limited,
one of India's reputed and well-established integrated-pharma company.
Objective:
BioArc Research Solutions
Offers value-added solutions to
increase the efficiency of global pharmaceutical and biotech
companies’ R&D efforts.
Through
partnering complements the intense R&D efforts of these companies’ to
discover, develop & manufacture quality products with greater speed, at
reduced costs and total confidentiality.
Since its inception in the year 2003, BioArc has gained a reputation of a
well-known contract research organization providing good-quality and wide range
of services. Today, they can boast of a number of reputed global companies on
their list of clients collaborating with us in the various domains of services
they offer.
With a state-of-the-art research infrastructure spread over an area of 120,000
square feet, BioArc’s facilities have been designed according to GLP standards.
It houses all the major analytical instruments to complement the research work
of its scientists. BioArc has a rich-pool of scientists that bring together
over 750 man-years of rich and varied experience spanning across all domains of
services.
Since they possess the 10 commandments of Partnering…
World class research infrastructure
Credible Financial & Corporate Governance Track Record
BioArc today has sizeable number of multi-year FTE based research contracts and
projects in place with reputed MNCs. This showcases BioArc’s ability to handle
any complex project of MNCs, with specific reference to
Technical competence
Infrastructure
Project management
abilities and
Effective delivery through reliability, confidentiality and
customer delight
Protecting Partner’s Interests
Protecting its partner’s interests is the primary responsibility of BioArc.
With India being a WTO member, they ensure total commitment and compliance to
harmonized patent laws. Any product related development would be the
intellectual property of their partner. Their scientists working for the
clients are also bound by intellectual property confidentiality agreements.
BioArc offers you a wide and complete range of services ranging from Chemistry
to Formulation development to Preclinical pharmabiology and Bioequivalence
studies. Their continuous efforts are to provide their clients a complete
solution and act as a single point shop!
World-class
research infrastructure
BioArc has all the requisite facilities for synthetic chemistry, analytical,
pharmaceutical research & pre-clinical evaluation using state-of-the-art in
vitro system followed by in vivo studies. The laboratories are well equipped
with modern equipment including NMR (300 MHz), LCMS/MS-Q trap model, HPLC, prep
HPLC, flash chromatographs, GC, DSC, Chromatotron, NeoCota, Conta blender,
Luminometer, Fluorimeter, UV/VIS Spectrophotometer, Multiskan spectrum,
fluroskan, Luminometer, Ultralow freezers etc. along with Kilo lab & pilot
manufcturing plant (upto 100 Kg levels).
A separate animal house is also there at BioArc to house animals for the
pre-clinical studies.
BioArc also houses a modern information center spread over
an area of 2,500 sq. ft. with a collection of over 10,000 books dedicated to
pharmaceutical research. It also subscribes to over 100 international and
national journals with access to Sci-finder and STN.
Well-defined Processes
The preparation, approvals, distribution, retrieval, periodic reviews of
documents is well controlled. Well-defined documentation SOPs ensure
reliability and confidentiality of data generated.
BioArc ensures data protection by having separate teams for clients and
promoting a culture wherein confidential information does not flow across them.
The reporting format is according to globally accepted or regulatory standards,
aided by advanced software tools. The safety of data transmission over internet
is ensured by using data encryption software.
BioArc has one of the best of scientific pool (a mix of post docs &
postgraduates from reputed international & national research organizations)
in the Indian pharmaceutical industry. Over 750 man-years of research
experience synergise drug discovery efforts.
Superior Project Management
The project management part essentially encompasses
quote preparation & feasibility assessment,
raw materials
sourcing, invoicing,
human resource
utilization, task progress and slippage,
weekly summary
reporting, teleconferencing and submission of final report on project
completion.
These activities are aided with use of software tools like
MS-Project, SAP and ACD database.
The project manager acts as a strong interface and single point contact between
its two customers viz.
External - the clients & vendors
Internal - the
scientific community, management & support services.
In addition to this, regular communication between the project team with the
client is facilitated using video-
conferencing, teleconferencing, fax and internet.
Scientific Advisory Board
BioArc is supported by active participation of reputed scientists and
technologists who are leaders in their respective fields and are committed to
make BioArc Research Solutions - a center of excellence. They already have some
well-renowned scientists on their advisory board.
Proactive HR Policies
BioArc values the intellect of its employees by encouraging continuous
up-gradation of their knowledge base. BioArc offers a congenial work atmosphere
to foster self-motivation, self-assessment & self-confidence.
They also have a fast track recruitment process in place to cater to the
changing and increasing demands of their clients in a short lead-time. They are
also actively promoting scientific creativity to get access to new emerging
talent, and have tied up with leading national institutes and universities in
this regard.
Credible Financial
& Corporate Governance Track Record
Alembic’s past trust and credibility in Indian financial and business circles
gives BioArc a dependable and reliable partner image. Thus BioArc possesses the
financial muscle for making investments on infrastructure, crucial to their
partner’s requirements. In addition to this, Alembic’s top management is fully
committed to make BioArc Research Solutions - a world class pharmaceutical
services provider organization.
Highly Talented Research Team
BioArc has one of the best of scientific talents (a right blend of
post docs & postgraduates from reputed international & national
research organizations) in the Indian pharmaceutical industry. Over 750
man-years of research experience synergise drug discovery efforts. They also
have tie-ups with leading universities and educational institutions in India.
Profile of Leading Scientists
Dr. P. B. Deshpande Sr. Vice President (R&D)
Rajesh S. Kshirsagar
Head, Formulations
Dr. Niranjan Singh General Manager, Quality Assurance (R&D)
Dr. P. B. Deshpande
Sr. Vice President (R&D)
Dr. Pandurang Deshpande (P.B.Deshpande)
obtained his B.Sc. from Pune University, M.Sc. and Ph.D from
Marathwada University, Aurangabad. During his Ph.D he worked in synthetic
heterocyclic chemistry. He later joined the industry & worked in top Indian
companies. Some of the organizations in which he worked are Lupin laboratories,
Kopran Chemicals, Unichem Laboratories, Orchid Pharmaceuticals & Merind
Ltd. (earlier MSD-USA). During his past 21 years of working in industry,
developed processes for various molecules in the area of Steroids, Penicillins,
Cephalosporins, Macrolides, Synthetic heterocycles, Amino acids, Peptides &
Carbohydrates. He has hands on experience on stereo selective synthesis, chiral
resolutions, enzyme based synthesis & cryogenic reactions. He has guided a
large team of highly qualified professionals in R&D & driven the total
activity from concept to commercialization.
During his professional career he has developed expertise in various areas of
organic syntheses, polymorphism, IP management, process scale up to kilo scale
and management of hazardous reactions through hazop studies & proper
process engineering inputs. He has filed more than 120 patents. About 20 US
Patents are granted so far & many WO & Indian patents are published and
are under examination.
Rajesh
S. Kshirsagar Associate Vice President (Pharma Research)
Mr.Kshirsagar is a M.Pharm from University of Pune and has a rich experience of
13 years in the field of drug delivery research. During the course of his
career he was associated with leading pharmaceutical companies like Lupin
Limited, Pune and Orchid healthcare, Chennai.
He has a rich experience of development of Pharmaceutical dosage forms for the
regulated markets. He is specialized in the area of Oral controlled drug
delivery systems.
He has been an active participant at the AAPS Pharmaceutical Technology
Conference on Controlled Release Drug delivery systems organized by AAPS at
Tucson, Arizona, USA and International Eudragit workshop organised by Rohm
Pharma, Germany.
Dr. Niranjan Singh General Manager, QA (R&D)
Dr. Niranjan Singh is a Ph. D. from Medico-legal Institute, Bhopal (Barkatullah
University, Bhopal). He has a rich industry experience of 21 years. During his
professional career he has developed capabilities in various areas of Quality
functions like Quality Assurance, Quality Control, Quality Engineering and
Regulatory Affairs.
He has been trained for (i) Q7a (GMP for API), in Philedelphia, US; (ii)
Regulatory submissions in Europe, Frankfurt, Germany; (iii) Regulatory
compliance in Europe, Frankfurt, Germany (iv) MCA (MHRA) registration
requirement in UK, London, UK.
Dr. Singh is also a visiting Faculty for training at National Institute of
Pharmaceutical Education & Research (NIPER), Chandigarh
Corporate Philosophy
Everything they do at Alembic revolves around extending and improving the
quality of life with products that span the entire lifecycle. As an integrated
pharmaceutical company, they share collaborative & symbiotic relationships
with preferred business partners, all of whom reflect their business ethics, trust
& transparency and quality standards.
Journey so far
Alembic started in 1907, with the mission of providing access to the best
healthcare products at affordable prices to everyone, anywhere in the world.
This mission is vibrant at one of Asia's most respected integrated
pharmaceutical manufacturing facilities in Vadodara, India, with revenues of US
$140 million. This financial strength is now being leveraged with BioArc
Research Solutions, a world class research facility with a mission to provide
total customer delight through long term partnerships rendering reliable,
quality services in a time bound, confidential manner to global research-based
pharmaceutical organizations.
Alembic
has a turnover and growth rate that takes it into the top bracket of Indian
pharmaceutical companies. In Active Pharmaceutical Ingredients (API) market,
Alembic has created a niche for itself in Macrolides, Penicillins,
anti-depressant and anti-diabetic segments.
Alembic is a certified ISO-9001 and ISO-14000 company with manufacturing
practices and facilities that conform to WHO-GMP guidelines ensuring that every
Alembic product meets the most stringent quality standards. Alembic thus
continues to improve the quality of life in over 75 countries around the world.
Key Milestones
|
Year |
Milestone |
|
2004 — |
BioArc Research Solutions inaugurates its new
state-of-the-art research center at Vadodara, India |
|
2003 — |
BioArc Research Solutions launched to mark Alembic’s foray
into contract research business. |
|
2001 — |
Certificate of Suitability, issued by EDQM for
Roxithromycin. Starts manufacturing of |
|
2000 — |
Gets ISO 14000 Certification for its facilities at
Vadodara. |
|
1999 — |
Alembic starts production of synthetic organic APIs.
Received award for - "Excellence in |
|
|
Gets ISO 9002 Certification for its facilities at
Vadodara. |
|
1997 — |
“Althrocin” becomes top selling brand in India. |
|
1992 — |
Received First Chemexcil Award for Exports. |
|
1972 — |
"Althrocin"- a brand of Erythromycin launched.
Starts manufacturing of Kanamycin by fermentation under the guidance of Meiji
Seika, Japan |
|
1971 — |
Erythromycin manufactured for the first time in the
country using expertise from Eli Lilly, USA. |
|
1969 — |
Paushak - a group company starts manufacturing Phosgene
Chemicals. |
|
1968 — |
Starts manufacturing Streptomycin. |
|
1967 — |
Bulk manufacturing of Vitamin B12 by fermentation starts,
utilizing expertise of Pirelli, Italy. |
|
1961 — |
Lal Bahadur Shastri, then Prime Minister of India,
inaugurates the Penicillin plant. |
|
1940 — |
Starts manufacturing Alembic's famous cough syrup,
vitamins, tonics and sulphur drugs. |
|
1907 — |
Alembic Chemical Works Co. Ltd. starts manufacturing
tinctures and alcohol at Vadodara. |
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or investigation
registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.22 |
|
UK Pound |
1 |
Rs.85.51 |
|
Euro |
1 |
Rs.58.47 |
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 |
|