MIRA
INFORM REPORT
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Report Date : |
03.05.2007 |
IDENTIFICATION DETAILS
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Name : |
DIVI’S LABORATORIES LIMITED |
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Formerly Known As : |
DIVI'S RESEARCH
CENTRE PRIVATE LIMITED |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
12.10. 1990 |
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Com. Reg. No.: |
01-11854 |
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CIN No.: [Company
Identification No.] |
L24110AP1990PLC011854 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDD00549D |
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Legal Form : |
A public limited
liability company. The company’s shares are listed on the Stock Exchanges |
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Line of Business : |
Manufacturers of
Bulk Drugs and Intermediates like Naproxen, Dextra Methorphane Hydro Bromide,
Diltiazem Hydro Chloride, Nabomethone, Ipamidol, etc. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 13600000 |
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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 company having fine track records. Available information
indicates high financial responsibility of the company. Financial position is
good. Payments are usually correct and as per commitments. The company can
be considered good for any normal business dealings at usual trade terms and
conditions. |
LOCATIONS
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Registered Office : |
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Tel. No.: |
91-40-23731318/23731760/23731761 |
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Fax No.: |
91-40-23733242 |
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E-Mail : |
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Website : |
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Area : |
296 sq. ft. |
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Location : |
Rented |
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Factory 1 : |
unit i
[Choutuppal]:
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Tel. No.: |
91-8694-272092/ 272260 |
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Fax No.: |
91-8694-272685 |
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Factory 2 : |
eou unit
(chippada) :
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Tel. No.: |
91-8922-245166 |
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Fax No.: |
91-8922-245165 |
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R & D Centers : |
C-26, Industrial Estate, Sanathnagar, Tel. 91-40-23704657 Tel. 91-40-272092/272260 DRC – |
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Branches : |
Located at : v
v
Swiss |
DIRECTORS
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Name : |
Dr. Murali K.
Divi |
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Designation : |
Chairman & Managing Director |
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Date of Birth/Age : |
55 years |
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Qualification : |
M. Pharm. Ph.D. |
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Experience : |
31 years |
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Date of Appointment : |
10.10.1994 |
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Previous
Employment |
Cheminor Drugs Limited - Managing Director |
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Name : |
Mr. N. V Ramana |
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Designation : |
Executive Director |
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Date of Birth/Age : |
48 years |
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Qualification : |
B.Sc.(Chem.) |
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Experience : |
21 years |
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Date of Appointment : |
26.12.1994 |
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Previous
Employment |
Enmark Exim
Services Private Limited - President |
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Name : |
Mr. Madhusudhana
Rao Divi |
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Designation : |
Director - NRI ( |
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Date of Birth/Age : |
62 years |
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Qualification : |
M.E. (Structural Engineering) |
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Experience : |
37 years |
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Date of Appointment : |
14.10.1994 |
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Previous
Employment |
Sadah General Trading and Construction Company, |
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Name : |
Mr. Kiran S. Divi |
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Designation : |
Director (Business Development) |
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Date of Birth/Age : |
30 years |
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Qualification : |
B. Pharm. |
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Experience : |
05 year |
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Date of Appointment : |
10.08.2001 |
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Name : |
Dr. P Gundu Rao |
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Designation : |
Director (R & D) |
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Name : |
Dr. K.
Satyanarayana |
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Designation : |
Non Executive Director |
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Name : |
Mr. G. Venkata
Rao |
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Designation : |
Non Executive Director |
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Name : |
Prof. C. Ayyana |
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Designation : |
Non Executive Director |
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Name : |
Mr. S. Vasudev |
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Designation : |
Director (IDBI Nominee) |
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Name : |
Mr. G. Suresh
Kumar |
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Designation : |
Non Executive Director |
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Name : |
Dr. P. Gundu Rao |
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Designation : |
Director [R & D] |
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Date of Birth/Age : |
70 years |
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Qualification : |
M. Pharm., Ph.D. |
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Experience : |
50 years |
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Date of Appointment : |
10.02.1995 |
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Previous
Employment |
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KEY EXECUTIVES
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Name : |
Mr. L. Kishore Babu |
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Designation : |
Chief Financial Officer |
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Date of Birth/Age : |
54 years |
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Qualification : |
B.Com, FICWA |
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Experience : |
33 years |
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Date of Appointment : |
01.03.1995 |
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Previous
Employment |
Nagarjuna Fertilizers and Chemicals Limited - Finance Manager |
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Name : |
Mr. A. Narendra |
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Designation : |
Company Secretary |
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Name : |
Mr. Vara Prasad |
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Designation : |
Purchasing Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Indian Promoters |
6920441 |
53.99 |
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Mutual Funds and
DTI |
1114360 |
8.69 |
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Banks |
8645 |
0.07 |
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Flls |
2339030 |
18.25 |
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Private Corporate
Bodies |
604094 |
4.71 |
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Indian Public |
1503424 |
11.73 |
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NRIs/OCBs |
185618 |
1.45 |
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Clearing Members |
91408 |
0.71 |
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Trusts |
430 |
0.00 |
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Directors (Independent and not in control of the Company) |
51250 |
0.40 |
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Total |
12818700 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Bulk
Drugs and Intermediates like Naproxen, Dextra Methorphane Hydro Bromide,
Diltiazem Hydro Chloride, Nabomethone, Ipamidol, etc. |
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Products : |
v
Dimethylmethoxybenzylpyridinethylenediamine
for pharmaceuticals v
Diphenylthiourea
for pharmaceuticals v
Gentisic
acid/2, 5-dihydroxybenzoic acid and derivatives v
Herparin
and derivatives v
Narceine v
Safflower
oil (carthamus) v
Tryptophan/
amino indolpropionic and acid v
Tyrosine v
Diaphoretics
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Exports : |
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Countries : |
Europe, |
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Imports : |
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Countries : |
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PRODUCTION STATUS
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Active Pharma Ingredients and Intermediates |
MTs |
|
2200 |
1349.98 |
GENERAL INFORMATION
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No. of Employees : |
300 |
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Bankers : |
v
State
Bank of v
State
Bank of v
The
Lakshmi Vilas Bank Limited, K. P. H. B. Colony, Kukatpally, v
Industrial
Development Bank of v
IDBI
Bank Limited, v
UTI
Bank Limited, v
Bank
of |
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Facilities : |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
P.V.R.K. Nageswara Rao & Co. Chartered Accountants |
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Address : |
109, Metro Residency, 6-3-1247, |
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Associates : |
Cheminor Drugs
Limited |
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Subsidiaries : |
v
Divis Laboratories ( v
Div’s Laboratories Europe AG Basel, Switzerland |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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15000000 |
Equity Shares |
Rs 10/- each |
Rs. 150.000 millions |
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500000 |
Redeemable Preference Shares |
Rs. 100 each |
Rs. 50.000 millions |
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Total |
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Rs. 200.000 millions |
Issued Capital :
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No. of Shares |
Type |
Value |
Amount |
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13000000 |
Equity Shares |
Rs 10/- each |
Rs. 130.000 millions |
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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1,28,18,700 |
Equity Shares |
Rs 10/- each |
Rs. 128.187 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
128.187 |
128.187 |
128.187 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
3279.978 |
2708.412 |
2163.774 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
3408.165 |
2836.599 |
2291.961 |
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LOAN FUNDS |
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1] Secured Loans |
1458.406 |
628.796 |
582.252 |
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2] Unsecured Loans |
43.394 |
32.108 |
77.011 |
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TOTAL BORROWING |
1501.800 |
660.904 |
659.263 |
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DEFERRED TAX LIABILITIES |
281.639 |
250.323 |
222.875 |
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TOTAL |
5191.604 |
3747.826 |
3174.099 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
2147.738 |
1815.439 |
1663.243 |
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Capital work-in-progress |
602.708 |
4.157 |
26.477 |
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Unallocated Expenditure pending capitalization |
39.677 |
0.000 |
0.000 |
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Advance for Capital Works |
160.346 |
6.727 |
28.752 |
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INVESTMENT |
3.975 |
0.000 |
0.575 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
1838.588
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1390.488
|
1075.952 |
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Sundry Debtors |
1074.422
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1021.692
|
867.489 |
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Cash & Bank Balances |
101.471
|
44.878
|
71.921 |
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Other Current Assets |
1.799
|
1.371
|
0.939 |
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Loans & Advances |
530.072
|
258.222
|
98.889 |
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Total Current Assets |
3546.352
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2716.651
|
2115.190 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
1151.630
|
678.216
|
532.206 |
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Provisions |
157.562
|
116.932
|
127.932 |
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Total Current Liabilities |
1309.192
|
795.148
|
660.138 |
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Net Current Assets |
2237.160
|
1921.503
|
1455.052 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
5191.604 |
3747.826 |
3174.099 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
3811.107 |
|
3172.829 |
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Other Income |
106.248 |
171.465 |
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Total Income |
3917.355 |
3645.248 |
3172.829 |
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Profit/(Loss) Before Tax |
1069.112 |
1023.142 |
1019.625 |
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Provision for Taxation |
364.398 |
362.830 |
291.194 |
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Profit/(Loss) After Tax |
704.714 |
660.312 |
728.431 |
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Earnings in Foreign Currency : |
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Export Earnings |
3347.954 |
3015.919 |
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Other Earnings |
35.855 |
66.042 |
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Total Earnings |
3383.809 |
3081.961 |
2614.319 |
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Imports : |
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Raw Materials |
1074.601 |
640.371 |
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Stores & Spares |
7.665 |
3.436 |
578.566 |
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Capital Goods |
14.426 |
35.641 |
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Total Imports |
1096.692 |
679.448 |
578.566 |
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Expenditures : |
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Manufacturing Expenses |
331.726 |
327.414 |
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Raw Material Consumed |
1698.161 |
1583.826 |
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Salaries, Wages, Bonus, etc. |
181.987 |
150.963 |
2153.204 |
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Finance Charges |
55.832 |
42.989 |
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Depreciation & Amortization |
148.159 |
150.668 |
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Other Expenditure |
432.378 |
365.246 |
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Total Expenditure |
2848.243 |
2621.106 |
2153.204 |
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QUARTERLY RESULTS
|
PARTICULARS |
30.06.2006 |
30.09.2006 |
31.12.2006 |
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Sales Turnover |
1608.400 |
1613.700 |
1496.200 |
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Other Income |
43.600 |
34.000 |
24.500 |
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Total Income |
1652.000 |
1647.700 |
1520.700 |
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Total Expenditure |
1147.700 |
1178.800 |
1070.800 |
|
Operating Profit |
504.300 |
468.900 |
449.900 |
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Interest |
20.600 |
6.500 |
38.100 |
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Gross Profit |
483.700 |
462.400 |
411.800 |
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Depreciation |
42.600 |
41.500 |
58.700 |
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Tax |
167.300 |
114.400 |
(1.400) |
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Reported PAT |
267.500 |
312.800 |
327.300 |
200606 Quarter 1
Notes:
1. The above results for the Quarter ended 30th June 2006, as reviewed
by the Audit Committee, were considered and approved by the Board of Directors
at its meeting held on 31st July, 2006. 2. The Company is primarily engaged in
the manufacture of Active Pharmaceutical Ingredients and intermediates.
Accordingly there are no reportable segments as per Accounting Standard 17 on
Segment Reporting issued by the Institute of Chartered Accountants of India. 3.
During 2005-06, the company formulated Employee Stock Option Scheme (ESOP 2006)
as per SEBI Guidelines and granted 464920 stock options to eligible employees
and non promoter executive directors of the company. In accordance with the
applicable accounting standards, an amount of Rs.602.98 millions has been charged
as expense for the current Quarter. 4. In respect of the speciality ingredient
project, the MNC customer, which had earlier signed a contract with the
company, has terminated the contract and the company has received an amount of
Rs.239.460 millions from the customer towards reimbursement for the Capital
Expenditure incurred on the Project. 5. The company has converted its existing
Unit-2 at Chippada into an Export Oriented Unit (EOU) and is operational
effective from 1st June, 2006. 6. The company is developing a sector specific
Special Economic Zone (SEZ) at Chippada, Bheemunipatnam Mandal, which is named
as 'Divi's Pharma SEZ' and is setting up its SEZ Unit in the SEZ. First phase
of this Unit is expected to be operational shortly. 7. The figures for the
previous year/period have been regrouped, wherever necessary. 8. Details of
Investor complaints pursuant to Clause 41 of the Listing Agreement for the
quarter ended 30.06.2006: Opening: Nil Received during the Quarter: 2 Resolved:
2 Closing: Nil
200609 Quarter 2
Notes
Expenditure includes (Increase)/Decrease in stock in Trade Rs 93.124
million Consumption of Raw Material Rs 752.453 million Staff Cost Rs 102.834
million Other expenditure - Manufacturing Expenses Rs 95.898 million - Other
Expenses Rs 134.522 million Tax Includes Provision for Current Tax Rs 114.00
million Deferred Tax Rs (6.30) million Fringe Benefit Tax Rs 0.375 million EPS
is Basic Status of Investor Complaints for the quarter ended September 30, 2006
Complaints Pending at the beginning of the quarter Nil Complaints Received
during the quarter 03 Complaints disposed off during the quarter 03 Complaints
unresolved at the end of the quarter Nil 1. The above results for the Quarter
ended September 30, 2006, as reviewed by the Audit Committee, were considered
and approved by the Board of Directors at its meeting held on October 28, 2006.
2. The Company is primarily engaged in the manufacture of Active Pharmaceutical
Ingredients and intermediates. Accordingly there are no reportable segments as
per Accounting Standard 17 on Segment Reporting issued by the Institute of
Chartered Accountants of India. 3. The Company has charged amount of Rs 121.258
million towards Employee Compensation Expense for the current half-year on
account of stock options granted to eligible employees. 4. First phase of the
Company's SEZ unit at Chippada Bheemunipatanm has started commercial operations
from October 27, 2006. 5. The figures for the previous period have been
regrouped, wherever necessary.
200612 Quarter 3
Notes:
EPS is Basic & Diluted Information on investor complaints pursuant
to clause 41 of the Listing Agreement for the quarter ended 31.12.2006 Pending
as at 01-10-2006 Nil Received 09 Disposal 09 Lying Unresolved as at 31-12-2006
Nil 1. The above results for the quarter and period ended 31st December, 2006
as reviewed by the Audit Committee, were considered and approved by the Board
of Directors at its meeting held on 27th January, 2007. 2. The Consolidated
Results include the financials of Subsidiaries, Divis Laboratories (USA) Inc.,
and Divi's Laboratories Europe AG. 3. As there are no Subsidiaries required to
be consolidated as on 31.12.2005 Previous figures are not given. 4. The Company
is primarily engaged in the manufacture of Active Pharmaceutical Ingredients
and Intermediates. Accordingly there are no reportable segments as per
Accounting Standard 17 on Segment Reporting issued by the Institute of
Chartered Accountants of India. 5. The Company has charged an amount of Rs.
182.200 millions towards Employee Compensation Expenses for the nine month
period ended during the current year on account of stock options granted to
eligible employees. 6. The Results of the current quarter include operations
from the SEZ unit at Chippada, Bheemunipatnam. 7. The Company had a successful
inspection by the US-FDA without any observations for its EOU and SEZ units at
Village Chippada, Bheemunipatnam Mandal near Vishakapatnam during November
2006. The Purpose of this inspection was for Pre-approval and general cGMP
(Current Good Manufacturing Practices). 8. The figures of the previous period
have been regrouped, wherever necessary.
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
0.35 |
0.26 |
0.28 |
|
Long Term Debt-Equity Ratio |
0.10 |
0.02 |
0.04 |
|
Current Ratio |
1.50 |
1.53 |
1.34 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
1.39 |
1.47 |
1.49 |
|
Inventory |
2.39 |
2.85 |
3.52 |
|
Debtors |
3.68 |
3.72 |
4.28 |
|
Interest Cover Ratio |
20.16 |
24.79 |
31.35 |
|
Operating Profit Margin(%) |
33.02 |
34.64 |
38.60 |
|
Profit Before Interest And Tax Margin(%) |
29.17 |
30.35 |
34.29 |
|
Cash Profit Margin(%) |
22.12 |
23.09 |
28.02 |
|
Adjusted Net Profit Margin(%) |
18.28 |
18.80 |
23.71 |
|
Return On Capital Employed(%) |
26.76 |
33.06 |
41.59 |
|
Return On Net Worth(%) |
22.57 |
25.75 |
36.69 |
STOCK PRICES
|
Face Value |
Rs.10.00/- |
|
High |
Rs.3744.90 |
|
Low |
Rs.3680.00 |
LOCAL AGENCY FURTHER INFORMATION
History
Subject was established in 1990 as a Research & Development company
to develop processes for API & Intermediates and to provide turnkey
solutions to the industry. In 1994 the name of the company was changed to
Divi's Laboratories Limited. The company is headed by Murali K Divi as Chairman
& Managing Director. In 1995,the company's first manufacturing unit was
built on a 300 acre site comprising of 11 multi-purpose production
blocks.
The company's plant at Choutuppal Mandal, Nalgonda District is having 11
multi-purpose production blocks primarily manufacturing active pharmaceutical
ingredients and intermediates for generics, advanced intermediates for
discovery compounds, cartenoids, protecting agents and building blocks for
peptide chemistry and nucleotide chemistry.
During 1991 the company successfully developed commercial processes for
intermediates and bulk actions & supply to manufacturing enterprises. In
2000 the company was awarded ISO 9001 certification by SGS-Yarsley.
The Company product portfolio has about 90 products covering Generic Products
and New Chemistries comprising Custom Synthesis of APIs & Intermediates for
MNC, Peptide Building Overseas and Carotenoids etc. The company is the first
company to develop and manufacture synthetic carotenoids and also the largest
manufacturer of some peptide reagents and protected amino acids
world-wide.
The company has taken up a development of a new site in 2002 at Chippada
village 35 KM from
The company is coming out with an IPO through book building route and the offer
size is 3.205 Millions equity shares of Rs.10 each comprising fresh issue of
1.270 Millions shares and an offer for sale of 1.935 Millions
shares. The floor price has been fixed at Rs.130 per share and the issue
is open from February 17,2003 to February 21,2003. After the public issue the
total equity has increased to Rs.128.200 Millions from Rs 115.500 Millions
The company has increased its installed capacity of Active Pharma Ingredients
& Intermediates by 200 MTs and with this expansion the total installed
capacity of Active Pharma Ingredients & Intermediates has increased to 2000
MTs.
The company has invested an amount of Rs.303.521 Millions towards capital
expenditure at its manufacturing facilities at Choutuppal (Unit-I) and Chippada
(Unit-II) for additional machinery installed at both Unit-I and Unit-II for
enhancing he production capacity. Further the company has commissioned a new
pilot plant at Unit-2 and also a new Research Centre with 60 work stations,
which became fully operational during the year. The company has also installed
additional Laboratory instruments at the Research centres.
The company is in the process of setting up an Export Oriented Unit with a
capital investment of Rs.350 millions at its Unit-2.
PERFORMANCE AND OPERATIONS REVIEW
During the year, Subject achieved a turnover of Rs.3811.100 millions as
against Rs. 3473.800 millions during the previous year reflecting a growth of
9.7%. Exports constituted 90% of total turnover and exports to advanced markets
comprising Europe and
During the year, Subject has added 14 products to its product portfolio
of which 6 are generic APIs and intermediates and 8 are custom synthesis APIs
and intermediates.
FINANCE
In order to part finance the new Projects, your company has obtained
sanctions of Foreign Currency Term Loans to the tune of US $ 17.1 million and
Rupee Term Loan of Rs.20 millions from banks.
Of these, FC loan to the extent of US $ 8.1 million and Rupee Loan to
the full extent have been drawn as of 31st March, 2006. Subject has availed
higher working capital limits to cater to increased business requirements. Subject
has been regular in payment of interest and other obligations with the Banks.
SPECIAL ECONOMIC ZONE and EXPORT ORIENTED UNIT
Your company has obtained approval from Government of India for
developing a Special Economic Zone on a 250-acre land earmarked from out of its
existing land at Chippada, Bheemunipatnam Mandal,Visakhapatnam Dist. It is
proposed to invest an amount of Rs.200 millions on this Site over a period of
3-4 years. The company has recently converted its existing Unit-2 at
This structure would help the company provide a level playing field and
to be internationally competitive.
SUBSIDIARIES
During the later part of the year, your company has incorporated Divis
Laboratories (USA) Inc., in the
FUTURE OUTLOOK
During the year, Subject has filed 7 DMFs with US-FDA and 4 Dossiers
with European Directorate. The cumulative DMFs filed with USFDA are 26 and 8
with European Directorate. Subject continues to have unique positioning in the
generic and custom synthesis businesses due to its R&D capabilities and cGMP
manufacturing facilities and cost competitive structure.
The company's product portfolio has increased from 90 to 104. There has
been significant growth in the share of the top 5 products to leading consumers
in US and
In the custom manufacturing domain, many of the customers have increased
their sourcing with several new products. The initial technical work related to
qualifications is completed on several of these products and the commercial
supplies look very promising.
Subject is expanding its capacities to meet the increase in the opportunities
in custom synthesis and generics space. Conversion of the existing Unit-2 as
EOU and the work on development of a Special Economic Zone (SEZ) would bring in
operational convenience and have a level playing field as Subject is
predominantly into Export.
AWARDS
During the year, Subject has received the following awards:
Shreshta Suraksha Puraskar and Prashansa Patra for Manufacturing Sector
from National Safety Council of
Best Management award from Ministry of Labour, Government of Andhra Pradesh.
National Award for Excellence in Water Management from Confederation of
Indian Industry.
Appreciation Certificate for cleaner production by AP Pollution Control
Board.
Overview
The financial statements have been prepared in compliance with the requirements
of the Companies Act, 1956 and Generally Accepted Accounting Principles (GAAP)
in
Industry structure and development
The Indian pharmaceutical industry has the potential to become the
region's hub for Research & Development worldwide and is estimated to be
growing at 10% as compared to the global industry rate of 7% and poised to grow
vertically in providing outsourcing of Active Pharmaceutical Ingredients (APIs)
and custom manufacturing for the pharma MNCs. According to estimate of IMS, the
market for APIs is around US$13 billion.
Company infrastructure
Subject operates from its Headquarters and Registered Office at
Hyderabad.The company has two manufacturing facilities:
The 1st Facility at village Lingojigudem, Choutuppal Mandal, Nalgonda
district, about 60 KM from
The 2nd Facility at village Chippada, Bheemunipatnam Mandal,
Visakhapatnam District, about 30 KM from the Port City of Visakhapatnam on the
east coast. This facility has recently been converted as EOU Unit.
The company is also working towards developing and setting up a
sector-specific Special Economic Zone (SEZ) for Pharmaceuticals at Chippada,
Bheemunipatnam Mandal on a 250-acre land earmarked from out of its existing
land at Chippada. The company has since received approvals from the Government
of India.
The company has 4 Research Centers with the broad functional focus as
under:
DRC -
Plant R&D - Unit 1: The process development and scale up R&D is
located at Unit-1 at Choutuppal. This team takes gram scale technologies from
DRC or from customers and goes through various stages of development, process
optimization, impurity
Management Discussion and Analysis
profile, pilot studies, pre-validation batches, validation of process
and transfer of technology to Plant. The team also review efficiency of
processes each month and give process support where ever required.
DRC - Vizag: Operates from Unit-2 with a team of 30 scientists
undertaking similar research as DRC-Hyderabad.
Plant R&D - Unit 2: The company's second process development and scale
up facility is located at Unit-2 at Chippada and works on similar lines as
Plant R&D at Unit-1.
Subsidiaries
During the later part of the year, your company has incorporated M/s.
Divis Laboratories (
Opportunities and Threats
The new patent regime in place in
The company lays great stress on the three leverages it has in order to
counter competition from its peers in Europe and US: Being able to develop processes
in the R&D using highly skilled scientists and professionals at competitive
costs and speed Creation of equivalent capacity at a much lower cost Operating
the infrastructure at competitive costs The company also attaches importance to
retaining its pool of scientists and managerial personnel and strives to
maintain its manufacturing practices and standards to cGMP and constantly works
towards adhering to the regulatory requirements.
Exports
Exports constituted 90% of turnover during the year which is the same as
in the previous year. The company is constantly working towards enhancing its
business to advanced markets.
Other Income
Other Income mainly comprised Contract Research fee and sale/ transfer of
some of the export benefits (DEPB Credit and Duty Drawback) available to the
company. Other Income for the year amounted to Rs.1062 millions as against
Rs.1715 millions for the previous year.
Income on contract research accounted for Rs.348 millions during the
year as against Rs. 660 millions during the last year. Income on Export
benefits for the year came to at Rs.446 millions as against Rs. 903 millions
during the last year. Lower income on Export benefit was the result of
reduction in DEPB rates by the Government of India consequent to lowering the
peak rate of duties as also higher utilization of the Credits for import of
inputs.
|
Particulars |
2005-06 |
|
|
Revenue |
% |
|
|
Exports |
3420.682 |
89.76 |
|
Domestic |
390.425 |
10.24 |
|
Total |
3811.107 |
100.00 |
Milestones
2003
The company receives Certificate of Substantiability from the council of
European Countries.
Appointed Mr. A. Narendra as Company Secretary and compliance officer of
the company (in place of outgoing Company Secretary Mr. M. P. Sudarshan) who
has joined the organisation.
2004
The company has informed that the manufacturing facility of company
choutuppal near
Achievements
v
It has grown multi-fold from the time of its
inception.
v
It has been the recipient of prestigious awards
over the past years.
v
IDMA 1996 (Indian Drug Manufacturers Association)
For Excellence in Quality
v
It had been inspected by USFDA in September, 2000
v
ISO 14001 Certified in the year 2000
v
ISO 9001 Certified in the year 1998
v
The Director General of Foreign Trade rated the
company first among the top 10 exporters from Andhra Pradesh in the year
1996-97.
v
FAPCCI 1997 (Federation of Andhra Pradesh Chambers
of Commerce & Industry) (For Best Export Effort in the State of
v
FAPCCI 1996 (Federation of Andhra Pradesh Chambers
of Commerce & Industry) (For Best Technological Development in Research
& Development by an Industrial / Scientific Organisation)
v
ICMA 1996 (Indian Chemical Manufacturers
Association) (For Achieving Outstanding Quantum of Exports)
v
IDMA 1996 (Indian Drug Manufacturers Association)
(For Excellence in Quality)
The company is in trade terms with :
v
Atofina
v
La Defence 10, Cedex 42, 92091, Paris, La
v
Bayer AG
v
Ch-M/GF 30, D-51368
v
DSM Fine Chemicals
v
St. Peter Strabe 25,
v
Great
v
Juchstrabe 45, Ch-8501,
v
Hawk Petroleum Pte Limited
v
Level 36,
v
Nagase & Company Limited
v
5-1, Nihonbashi, Kobunacho, Chou-Ku,
v
Rohm & Hass B.V.
v
P. B. 32, NL 3800 AA
v
Saurefbrik Schweizerhall (Switz)
v
Ch-4133 Prattein 1,
v
SQM
v
Sint Pietersvlier 7, Bus 8, Precambuilfing 2000,
Antwerpen 1,
v
Sinochem
v
Subject has been accredited with ISO 9001 and ISO 14001 Certifications.
Website Details :
Established in the year 1990, with Research & Development as its
prime fundamental, Divis Laboratories focussed on developing new processes for
the production of Active Pharma Ingredients (APIs) & Intermediates. The
company in a matter of short time expanded its breadth of operations to provide
complete turnkey solutions to the domestic Indian pharmaceutical industry.
With five years of experience, expertise and a proven track-record of helping
many companies with its turn-key and consulting strengths, Divis Laboratories
established its first manufacturing facility in 1995.
Built on a 300 acre site at
Divis Laboratories set up its second manufacturing facility at
Both the facilities are primarily engaged in the manufacture
of:
v
Active Pharmaceutical Ingredients (APIs) &
Intermediates for Generics
v
Custom Synthesis of API's and Advanced
intermediates for discovery compounds for
pharma giants
v
Building blocks for Peptides
v
Building blocks for Nucleotides
v
Carotenoids
v
Chiral ligands
Complete cGMP guidelines are complied to in both the plants. The Unit-1
at
Press clipping
Divi’s Labs Q3 total income grows by 38% to Rs.1520 millions
Divi’s Laboratories has clocked a total income of Rs.1520 millions and a
PAT of Rs.310 millions on a consolidated basis for the 3rd Quarter ending 31st
December, 2006. Income and PAT for the corresponding previous quarter during
last year were Rs. 1100 millions and Rs.190 millions respectively. While income
grew by 38%, PAT grew by 66%.
Results of the current quarter include operations from the SEZ Unit at
Chippada, Bheemunipatnam. During the quarter, the company had a successful
inspection by the US-FDA for its EOU and SEZ Units, and a Drug Master file was
also filed with USFDA for a generic product.
For the current 9-month period, Divi’s earned a total income of Rs.4820
millions and a PAT of Rs. 870 millions as against an income of Rs.262 millions
and a PAT of Rs.480 millions during the corresponding previous period. Growth
in total income for the period is 84% while the growth in PAT is 81%. An amount
of Rs.180 millions has been charged as expense during the current 9-month
period on account of Stock options.
Divi’s Laboratories is glad to announce that it has had a successful
inspection by the
Divi`s gets commerce ministry's nod for special SEZ
May 24, 2006
Hyderabad-based Divi’s Laboratories Limited has informed that the
company has received letter of approval from Ministry of Commerce, Government
of India, for setting up a sector-specific special economic zone (SEZ) for
pharmaceutical ingredients at Chippada, Bheemunipatnam in
The pharmaceutical company will be investing around Rs 2000 million for
this purpose.
Speaking to Business Standard, Kishore Babu, chief financial officer of
Divi’s Laboratories, said, “We will be investing Rs 1200 million initially and
later invest Rs 800 million. The total investment for the 250-acre SEZ will be
spread over four years.”
The company will be raising funds for the investment via foreign
currency loan.
“This will involve a debt of around $15 million. The remaining
investment will be via internal accruals,” Babu said.
Divi's gets nod for pharma SEZ
Divi's Laboratories Limited has informed the stock exchanges that it has
received a letter of approval from the Union Ministry of Commerce for setting
up and development of a sector specific Special Economic Zone for
pharmaceutical ingredients at Chippada near Bheemunipatnam in Andhra Pradesh.
The details of land were notified in the Gazette of India on May 16, the
company said.
Fixed Assets
v
Land
and development
v
Buildings
v
Plant
& machinery
v
Laboratory
equipments
v
Furniture
and fixtures
v
Data
processing equipments
v
Vehicles
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] 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.40.78 |
|
|
1 |
Rs.81.34 |
|
Euro |
1 |
Rs.55.53 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
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 |
|