MIRA
INFORM REPORT
|
Report Date : |
02.11.2007 |
IDENTIFICATION
DETAILS
|
Name : |
INDOCO
REMEDIES LIMITED |
|
|
|
|
Registered Office : |
Indoco
House, 166, C. S. T. Road, Kalina, Mumbai - 400 098, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
30.06.2006 |
|
|
|
|
Date of Incorporation : |
23.08.1947 |
|
|
|
|
Com. Reg. No.: |
11-5913 |
|
|
|
|
CIN No.: [Company Identification No.] |
L85190MH1947PLC005913 |
|
|
|
|
TAN No.: [Tax Deduction & Collection Account No.] |
MUMI00405A
/ MUMI05235G |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACI0380C |
|
|
|
|
Legal Form : |
A
Public limited Liability Company. The company’s shares are listed on the
Stock Exchange. |
|
|
|
|
Line of Business : |
The company
is engaged in manufacturing of pharmaceutical, medicinal chemicals and
botanical products. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Aa |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
|
|
|
|
|
Status : |
Excellent
|
|
|
|
|
Payment Behaviour : |
Regular
|
|
|
|
|
Litigation : |
Clear
|
|
|
|
|
Comments : |
Subject
is a well established company having satisfactory track. Directors are
reported as experienced, respectable and resourceful industrialists. Their trade
relations are fair. Financial position is satisfactory. Payments are usually
correct and as per commitments. The
company can be considered normal for business dealings at usual trade terms
and conditions. |
LOCATIONS
|
Registered Office / Corporate Office : |
Indoco
House, 166, C. S. T. Road, Kalina, Mumbai - 400 098, Maharashtra, India |
|
Tel. No.: |
91-22-654 1851 – 55 |
|
Mobile No.: |
91-22-56936241 / 26523980
/ 26523976 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory
1 : |
18-A,
Mahal Estate, Mahakali Road, Andheri (East), Mumbai - 400 093 |
|
|
|
|
Factory
2 : |
L-32,33,34 Verna Industrial Estate, Verna - Goa 403722 |
|
|
|
|
Factory
3 : |
N-101, MIDC, Tarapur, Maharashtra |
|
|
|
|
Factory
4 : |
L-14,
Verna Industrial Area, Verna, Goa - 403 722 |
|
|
|
|
Branches
: |
Located At :
|
DIRECTORS
|
Name : |
Mr.
Suresh Kare |
|
Designation : |
Chairman & Managing Director |
|
Qualification: |
B. Sc. |
|
Date
of Joining: |
26.12.1963 |
|
|
|
|
Name : |
Mr. SY Rege |
|
Designation : |
Director
|
|
|
|
|
Name : |
Mr. PK Kakodkar |
|
Designation : |
Director
|
|
|
|
|
Name : |
Mr. DN Mungale |
|
Designation : |
Director
|
|
|
|
|
Name : |
Mr. DM Sukthankar |
|
Designation : |
Director
|
|
|
|
|
Name : |
Dr MR Narvekar |
|
Designation : |
Director
|
|
|
|
|
Name : |
Mr. DM Gavaskar |
|
Designation : |
Director
|
|
|
|
|
Name : |
Mr. FX Coutinho |
|
Designation : |
Director
|
|
Qualification
: |
B. Sc. |
|
Date
of Joining : |
01.07.1978 |
|
Previous
Employment : |
DCI Pharmaceuticals Private Limited - Field Supervisors (3 years) |
|
|
|
|
Name : |
Mr. Sundeep V Bambolkar |
|
Designation : |
Director
|
|
Qualification
: |
B. Sc. MBA |
|
Date
of Joining : |
01.07.1997 |
|
Previous
Employment : |
SPA Pharmaceuticals Limited, Managing Director (15 years) |
|
|
|
|
Name : |
Ms. Aditi Kare Panandikar |
|
Designation : |
Director
|
KEY EXECUTIVES
|
Name : |
Mr. Anil Kale |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of
Shareholders |
No. of Shares |
Percentage of
Holding |
|
Category
of Shareholder |
|
|
|
|
|
|
|
Shareholding
of Promoter and Promoter Group2 |
|
|
|
Indian |
|
|
|
Individuals/ Hindu Undivided
Family |
2567280 |
21.71 |
|
Bodies Corporate |
4369760 |
36.97 |
|
Public
shareholding |
|
|
|
Institutions |
|
|
|
Mutual Funds/ UTI |
1443103 |
12.21 |
|
Foreign Institutional
Investors |
758140 |
6.41 |
|
Non-institutions |
|
|
|
Bodies Corporate |
327939 |
2.77 |
|
Individuals |
|
|
|
Individuals -i. Individual
shareholders holding nominal share capital up to Rs 0.100 Million |
1387811 |
11.74 |
|
ii. Individual shareholders
holding nominal share capital in
excess of Rs. 0.100 Million |
888557 |
7.52 |
|
Any Other (specify) |
|
|
|
Clearing member |
22410 |
0.19 |
|
Non Resident Indians |
56714 |
0.48 |
|
TOTAL |
11821714 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
The
company is engaged in manufacturing of pharmaceutical, medicinal chemicals
and botanical products. |
||||||||
|
|
|
||||||||
|
Products : |
|
||||||||
|
|
|
||||||||
|
Exports : |
|
||||||||
|
Countries : |
Vietnam,
Sri Lanka, Kenya, Yemen, West Indies, Germany and South America. |
PRODUCTION STATUS
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Liquid Orals |
KL |
2,800 |
2420.40 |
|
Tablets |
Million |
2,480 |
1603.078 |
|
Sweetner
Tablets |
Million |
1200 |
1141.94 |
|
Capsules |
Million |
-- |
33.39 |
|
Injectibles
and Eye Preparations |
KL |
220 |
168.92 |
|
Ointments
and Lotions |
Tonnes |
150 |
62.64 |
|
Toothpaste
and Mouth Gel |
Tonnes |
400 |
610.48 |
GENERAL
INFORMATION
|
Suppliers : |
|
||||||||||||||||||
|
|
|
||||||||||||||||||
|
No. of Employees : |
Around
900 |
||||||||||||||||||
|
|
|
||||||||||||||||||
|
Bankers : |
|
||||||||||||||||||
|
|
|
||||||||||||||||||
|
Facilities : |
|
||||||||||||||||||
|
|
|
|
Banking
Relations : |
Satisfactory |
|
|
|
|
Auditors : |
Patkar & Pendse Chartered
Accountants Mumbai |
|
|
|
|
Associates : |
v
Warren
Pharmaceuticals Limited v
Warren
Laboratories Limited |
|
|
|
|
Subsidiaries : |
v
Indoco Healthcare Limited v
Indoco Holdings Netherlands BV |
|
|
|
|
Group Company : |
v
SPA Pharmaceuticals Private Limited v
Shanteri Investments Private Limited v
Indoco Capital Markets Limited v
AK Services v
Indoco Global Markets Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
18,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 180.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
11,821,714 |
Equity Shares |
Rs. 10/- each |
Rs. 118.217
Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
30.06.2006 |
30.06.2005 |
30.06.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
118.217 |
118.217 |
88.200 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1834.824 |
1635.239 |
791.910 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1953.041 |
1753.456 |
880.110 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
234.494 |
303.683 |
62.926 |
|
|
2] Unsecured Loans |
98.101 |
239.801 |
194.074 |
|
|
TOTAL BORROWING |
332.595 |
543.484 |
257.000 |
|
|
DEFERRED TAX LIABILITIES |
175.268 |
97.633 |
53.176 |
|
|
|
|
|
|
|
|
TOTAL |
2460.904 |
2394.573 |
1190.286 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1049.646 |
821.128 |
462.006 |
|
|
Capital work-in-progress |
45.499 |
33.270 |
17.289 |
|
|
|
|
|
|
|
|
INVESTMENT |
114.931 |
452.343 |
7.453 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS &
ADVANCES |
|
|
|
|
|
|
Inventories |
328.268
|
301.097
|
232.094 |
|
|
Sundry Debtors |
834.063
|
740.666
|
487.483 |
|
|
Cash & Bank Balances |
246.297
|
279.067
|
175.235 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
402.056
|
206.240
|
115.069 |
|
Total Current Assets |
1810.684
|
1527.070
|
1009.881 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
468.078
|
367.440
|
295.199 |
|
|
Provisions |
100.578
|
85.807
|
14.822 |
|
Total Current Liabilities |
568.656
|
453.247
|
310.021 |
|
|
Net Current
Assets |
1242.028
|
1073.823
|
699.860 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
8.800 |
14.009 |
3.678 |
|
|
|
|
|
|
|
|
TOTAL |
2460.904 |
2394.573 |
1190.286 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
30.06.2006 |
30.06.2005 |
30.06.2004 |
|
|
|
|
|
|
|
|
Sales Turnover |
2434.265 |
1941.453 |
1603.702 |
|
|
Other Income |
84.067 |
48.066 |
|
|
|
Total Income |
2518.332 |
1989.519 |
1603.702 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
398.403 |
367.359 |
290.840 |
|
|
Provision for Taxation |
114.569 |
116.057 |
78.234 |
|
|
Profit/(Loss) After Tax |
283.834 |
251.302 |
212.606 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
|
|
|
|
|
Total Earnings |
418.075 |
274.837 |
126.246 |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Raw Materials |
70.153 |
21.006 |
|
|
|
Stores & Spares |
37.346 |
3.124 |
37.182 |
|
|
Capital Goods |
94.262 |
33.593 |
|
|
Total Imports |
201.761 |
57.723 |
37.182 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Raw Material Consumed |
1073.630 |
810.448 |
|
|
|
Financial Charges |
57.369 |
37.501 |
1283.283 |
|
|
Depreciation |
59.528 |
43.411 |
|
|
|
Other Expenditure |
929.402 |
730.800 |
|
|
Total Expenditure |
2119.929 |
1622.160 |
1283.283 |
|
SUMMARISED RESULTS
|
PARTICULARS |
|
|
30.06.2007 [Full Year] |
|
Sales Turnover |
|
|
3259.900 |
|
Other Income |
|
|
48.300 |
|
Total Income |
|
|
3308.200 |
|
Total Expenditure |
|
|
2700.900 |
|
Operating Profit |
|
|
607.300 |
|
Interest |
|
|
50.900 |
|
Gross Profit |
|
|
556.400 |
|
Depreciation |
|
|
90.300 |
|
Tax |
|
|
18.200 |
|
Reported PAT |
|
|
420.400 |
|
Dividend [%] |
|
|
650.000 |
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.09.2007 |
|
Type |
|
|
1st
Quarter |
|
Sales Turnover |
|
|
844.300
|
|
Other Income |
|
|
7.300
|
|
Total Income |
|
|
851.600
|
|
Total Expediture |
|
|
683.700
|
|
Operating Profit |
|
|
167.900
|
|
Interest |
|
|
12.000
|
|
Gross Profit |
|
|
155.900
|
|
Depreciation |
|
|
25.100
|
|
Tax |
|
|
16.500
|
|
Reported PAT |
|
|
108.500
|
KEY RATIOS
|
PARTICULARS |
30.06.2006 |
30.06.2005 |
30.06.2004 |
|
Debt-Equity Ratio |
0.22 |
0.30 |
0.33 |
|
Long Term Debt-Equity Ratio |
0.11 |
0.13 |
0.09 |
|
Current Ratio |
1.89 |
1.83 |
1.73 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
2.31 |
2.60 |
2.87 |
|
Inventory |
8.57 |
8.09 |
9.44 |
|
Debtors |
3.42 |
3.51 |
3.82 |
|
Interest Cover Ratio |
7.94 |
10.80 |
11.31 |
|
Operating Profit Margin(%) |
19.11 |
20.78 |
19.62 |
|
Profit Before Interest And Tax Margin(%) |
16.91 |
18.76 |
17.96 |
|
Cash Profit Margin(%) |
12.73 |
13.66 |
13.63 |
|
Adjusted Net Profit Margin(%) |
10.53 |
11.65 |
11.97 |
|
Return On Capital Employed(%) |
20.20 |
23.70 |
30.13 |
LOCAL AGENCY FURTHER
INFORMATION
HISTORY
The company was incorporated on 23rd August, 1947
at Mumbai in Maharashtra having Company Registration Number 5913.
During the year 1999-2000 the company shifted its Registered
Office from 18-A, Mahal Estate, Mahakali Caves Road, Andheri (East), Mumbai -
400 093 to the new building at Indoco House, 166, CST Road, Vidyanagari Marg,
Kalina, Santacruz (East), Mumbai - 400 098.
Indoco Remedies (Indoco) is a Mumbai-based pharmaceutical
company that focuses on formulations, with some presence in contract
manufacturing and research. It also trades some active pharma ingredients
(APIs) manufactured by a group company.
Currently, Indoco has a presence in the therapeutic segments including
anti-infective, anti-cold preparation, opthalmic, anti-spasmodic, stomatology,
anti-inflammatory and anti-fungal. As per AC Nielsen ORG-MARG market survey
(August 2004) of doctors, Indoco ranked first in the stomatology, ninth in the
opthalmic and twelve in the pediatric segments in terms of prescription
generation in the domestic market. In the overall pharma industry, Indoco is
ranked 34th as per AC Nielsen ORG-MARG Retail Audit, but ranked 23rd in terms
of prescription generation, indicating the strength of its marketing network.
Further, the company last year launched a new super specialty division, with
focus on diabetic and cardio-vascular segments. Its entry into the lifestyle
segment with a strong presence in the prescription segment would augur well for
the higher- than-average industry growth.
Currently, Indoco has four manufacturing facilities. Two are located in Mumbai
and two in Goa, and an R&D centre in Mumbai. The solid dosage facility in
Goa has been accredited by UK-Medicines and Healthcare Products Regulatory
Agency (MHRA), and the sterile plant of Goa has been designed as per US Food
and Drug Administration (FDA) norms. On the selling front, it has a marketing
network of 1,248 medical representatives.
During the year 2005-06, INDOCO registered a 24.9% increase
in its consolidated sales revenues over the preceding year. The consolidated
profit before tax (PBT) and profit after tax (PAT) registered an increase of
17.2% and 25.8%, respectively, during the same period.
This increase in the overall sales has been contributed both by the formulation
sales in the domestic markets, which grew by about 20%, and international
sales, which grew by about 48%.
OPERATIONS –
Domestic Business
With the trust & confidence reposed in the medical profession, the products
like Neurochek, Methycal, Glychek, MCBM-69, etc., have substantially
contributed to the revenues generated by Indoco & Spade divisions.
Warren division focuses mainly on ophthalmic & dental care products. During
the year, Warren has introduced an innovative anti-caries toothpaste for kids -
KIDODENT, which has been well received by dentists. Warren's entry in to the
niche dermatology segment, is also expected to improve Warren's
performance.
Radius division caters to the needs of Diabetologists & Cardiologists,
which primarily deals with chronic and lifestyle diseases segments. The
diabetic population in India is growing at over 20% every year. The incidence
of cardiovascular diseases is also on the rise. This forms a good platform for
the acceleration of Radius division's growth.
During the year, a fifth marketing division, SURGE, was launched to
specifically address the product needs of General Surgeons &
Orthopedicians. SURGE has been launched in 6 states, and is getting an
encouraging response.
Consequently, INDOCO's domestic business is expected to grow
consistently.
International Business
International business accounts for about 16% (130!o in 04-05) of the total
revenues of INDOCO. During the year ended 30th June, 2006, the international
formulations business grew by 48%. It is noteworthy that the business in
regulated markets accounted for a growth of 76%.
INDOCO's entry into the API business by virtue of its acquisition of La Nova
Chem, is also expected to strengthen the international business.
The last year saw INDOCO getting accreditations from international regulatory
authorities for its manufacturing facilities. Plant-II at Goa was approved by
US-FDA for its sterile ophthalmic manufacturing facility.
Plant-I
at Goa was approved by UK-MHRA in respect of its capsules &
creams/ointments manufacturing facility. Further, there was also a renewal of
the UK-MHRA approval in respect of the tablet manufacturing facility of the
Plant-I at Goa and also a fresh approval for its newly constructed tablet
facility. The approval extends to the 'Pilot Facility' in the new tablet area.
With the approval of this pilot plant, INDOCO will be in a position to conduct
validation batches for Clinical trials / BE studies for products to be
registered in Europe. This in turn will give INDOCO a right to supply the
products for a period of five years from the date of commercial launch by its
customers.
The year also witnessed approval from the German Health Regulatory Authorities,
for the tablet manufacturing facility at Plant-I Goa, which has enabled the
commencement of exports to Germany.
During
the year under review, the business to East European countries has increased
many fold. This was made possible by the tremendous efforts in registering a
number of products in this region. The international business operations were
also extended to various CIS countries.
In
terms of getting a foothold in US market, a considerable progress has been made
during the year; two ANDA's have already been filed with the US-FDA from the
sterile ophthalmic facility. The approval for the first ANDA is expected during
the year, which would trigger the exports to US market.
New
R&D Centre
During
the year, INDOCO has set up and commissioned its state-of-the-art Research
& Development centre at Navi Mumbai, with a built-in Kilo-lab facility. The
R&D Centre and the kilo-lab facility, are expected to boost the API
synthesis and development efforts, which are primarily directed to cater to
requirements of regulated markets. The kilo-lab facility is expected to add to
revenues in the short run, apart from aiding the API development efforts.
SUBSIDIARIES -
INDOCO has two fully owned subsidiaries - Indoco Healthcare Limited (IHL) and
Indoco Holdings Netherlands BV, (IHN). The IHL has a manufacturing facility at
Baddi, Himachal Pradesh, financed by INDOCO. Keeping in view the synergy of
operations to be derived, INDOCO has planned to merge IHL with the parent
company. The Board of Directors of both the companies have approved the Scheme
of Merger, and IHL has filed applications at the Hon'ble High Court at Shimla
for initiating the merger process.
The
subsidiary, Indoco Holding Netherlands BV (IHN) was set-up in The Netherlands,
in 2004, with a view to aid the international business operations in that
region. However, considering the current marketing situation & other
economic factors, it has been decided to close down IHN.
Early
in July'06, INDOCO has acquired 100% shares of La Nova Chem (India) Private
Limited This was done primarily to have access to its API manufacturing
facility at Patalganga, Raigadh, Maharashtra. This acquisition is pursuant to
the efforts of INDOCO to become a complete end-to-end solution provider ethical
pharmaceuticals in the international markets.
A
statement containing particulars in term of the provisions of sec.
212(1)(e)
of the Companies Act 1956, in relation to the subsidiary companies, is annexed
to & forms part of this Report.
In compliance of the provisions of Clause 32 of the listing agreement, Audited
Consolidated Financial Statements have been annexed to and forms part of this
Report.
INDOCO
has received an approval from the Government of India, Ministry of Company
Affairs, vide their letter no.47/29/2006-CL-III dated 24th May, 2006, exempting
INDOCO from attaching the balance sheet and profit & loss account of its
subsidiaries. The said annual accounts of the subsidiary companies and the
related detailed information will be made available to any shareholder seeking
such information, at any point of time. The annual accounts of the subsidiary
companies will also be kept open for inspection by any shareholder, at the
registered office of INDOCO. The intending shareholders can write to the
Company Secretary of INDOCO, at its registered office, for such information
and/or inspection.
MANAGEMENT
DISCUSSION AND ANALYSIS
GLOBAL
PHARMACEUTICAL OVERVIEW –
As per IMS
Health Statistics, the global pharma market has grown by 7% to US $ 602 billion
in 2005. This growth has been featured by the advanced nations like USA &
Canada recording a growth of 5.2% & Europe recording 7.1%, whereas the
emerging economies like China, Korea, Russia, Turkey & Mexico recorded a
double digit growth. During the same period, the Indian pharma market
registered a growth of 8.6%. However, the Latin American market has grown very
rapidly by 18.5%.
The IMS has
also forecast a compounded annual growth of 5% - 8% for the global pharma
market during the next 5 years.
The key factors
contributing to global pharmaceutical growth are the increasing geriatric
population, changing life style, increasing health awareness, rise in
purchasing power and new drug delivery systems.
In the next 5
years, drugs having sales of about USD 50 billion, are likely to go off-patent,
and the substantial portion of growth in pharma business is expected to be from
these off-patent generics.
With the
advanced nations feeling the ever-increasing in-house costs pressures, they are
expected to increasingly out-source their manufacturing as well as research
activities to emerging economies like India. India, with its technologically
strong work-force and research & manufacturing facilities of international
standards is well placed to take a larger share of this pie in the form of
offering of services in the areas of contract research, custom manufacturing,
phase-II & phase-III clinical trials, etc.
With these
global opportunities, as also riding on a strong GDP growth forecast, the
Indian Pharma Sector is expected to register higher growth in the years to
come.
INDOCO'S
INTERNATIONAL BUSINESS –
INDOCO's
International business, which made a small beginning, has grown substantially
over the years & accounts for about 16% (13% in 04-05) of the total
revenues of INDOCO. International business also holds the key to the future
growth for INDOCO. With the generics expected to drive the pharma business
growth world-wide, INDOCO's international division, with its focus on CRAMS, is
expected to show a rapid and sustained growth.
INDOCO's entry into the API business by virtue of its acquisition of La Nova
Chem, is also expected to strengthen the international business.
During the year
under review, the international formulations business grew by 48%. This growth
was driven by business from regulated markets, which grew by 76%.
The business to
East European countries has increased many fold. This was made possible by the
tremendous efforts in registering a large number of products in this region. The
international business operations were also extended to various CIS
countries.
In terms of
getting a foothold in US market, a considerable progress has been made during
the year; two ANDA's have already been filed with the US-FDA from the sterile
ophthalmic facility. The approval for the first ANDA is expected during 2006-07
which would trigger the exports to US market.
The
semi-regulated markets are targeted in the form of branded generics, backed by
promotional inputs. There has been a policy shift in relation to the business
in semi-regulated markets; the focus is being taken away from the low margin
tender business. The shift from low margin tender business, is expected to
boost the overall margins from the business from these markets. In these semi-regulated
markets, INDOCO has active business in about 40 countries. Further, dossiers
have also been submitted in additional about 20 countries, thus increasing the
presence of INDOCO to in-about 60 countries.
GROWTH DRIVERS
–
The company has identified 4 key growth drivers for its international
business.
1. Emerging
Market Business
The company's
business in the semi-regulated markets is on the rise leading to enhanced
opportunities in new geographies.
2. US Generic Formulations Business
INDOCO is about
to commence its US business. The first ANDA, filed by its partner, is awaiting
approval from the US-FDA.
3. Formulations for EU and ROW
The company has
5 dossiers in CTD format for European customers. With additional number of
dossiers coming in, the Company will slowly shift its role from Contract
Manufacturing to a complete solutions provider.
INDOCO would
also focus on semi-regulated Latin American market, which is growing at
18.5%.
4. API and
CRAMS for the regulated markets
INDOCO's recent
acquisition of La Nova Chem (India) Private Limited will provide a boost to the
API business because of the US-FDA approvable API facility.
INDOCO is
actively present in the CRAMS business area and anticipates a good upside from
this business.
DOMESTIC BUSINESS –
The domestic
business has been the main stay and the cause of INDOCO's historical growth.
Domestic business, which consists of ethical specialties, has grown at a
compounded annual rate of 21.8% over the past 3 years, which is well above the
growth of 9.0% of the pharma market in India during the period.
INDOCO's
Domestic Business is presently driven by its five marketing divisions Indoco,
Spade, Warren, Radius and Surge. Over the years INDOCO's various marketing
divisions have infused confidence among the medical fraternity, resulting in a
higher ranking in ORG's prescription audit.
With the trust
& confidence reposed by this community of practitioners the products like Neurochek,
Methycal, Glychek, MCBM-69, etc., have substantially contributed to the
revenues generated by Indoco & Spade divisions.
Warren division focuses mainly on ophthalmic & dental care products. During
the year, Warren has introduced an innovative anti-caries toothpaste for kids.
- KIDODENT, which has been well received by dentists. Warren's entry in to the
niche dermatology segment, is also expected to improve Warren's
performance.
Radius focuses
on the needs of Diabetologists & Cardiologists, which primarily deals with
chronic and life-style disease segments. The diabetic population in India is
growing at over 20% every year. The incidence of cardiovascular diseases is
also on the rise. This forms a good platform for the acceleration of Radius division's
growth.
During the year, a fifth marketing division, SURGE, was launched to
specifically addressed the product needs of General Surgeons &
Orthopedicians. SURGE has been launched in 6 states, and is getting an
encouraging response.
Consequently, INDOCO's domestic business is expected to grow
consistently.
Infrastructural Efforts
The last year
was a year of infrastructural investments for INDOCO. During the year ended
30th June, 2006, INDOCO has commissioned its formulation manufacturing facility
at Baddi, Himachal Pradesh. The plant is expected to take a substantial load of
manufacturing requirements of formulations for the domestic market. The tax
incentives offered by the Government in relation to manufacturing activities,
is expected to add handsomely to the bottom line of INDOCO's financials in the
future.
During the
year, INDOCO has also commissioned its state-of-the-art Research &
Development centre at Navi Mumbai, with a built-in Kilo-lab facility. The
R&D Centre and the kilo-lab facility, are expected to boost the API
synthesis and development efforts, which are primarily directed to cater to
requirements of regulated markets. The kilo-lab facility is expected to add to
revenues in the short run, apart from aiding the API development efforts.
The acquisition of La Nova Chem marks a milestone in the efforts of INDOCO to
become an end-to-end complete solution provider in the ethical pharmaceutical
market internationally.
During the
year, INDOCO also upgraded its manufacturing facilities for the purposes of
making them compliant with international standards of regulatory requirements.
The efforts have yielded in the manufacturing facilities getting approvals from
US-FDA/UK-MHRA/German Health Authorities.
These approvals
would have a direct bearing on the international business prospects of
INDOCO.
The last year
saw INDOCO getting accreditations from international regulatory authorities for
its manufacturing facilities. Plant-II at Goa was approved by US-FDA for its
sterile ophthalmic manufacturing facility.
Plant-I at Goa
was approved by UK-MHRA in respect of its capsules & creams/ointments
manufacturing facility. Further, there was also a renewal of the UK-MHRA
approval in respect of the tablet manufacturing facility of the Plant-I at Goa
and also a fresh approval for its newly constructed tablet facility. The
approval extends to the 'Pilot Facility' in the new tablet area. With the
approval of this pilot plant, INDOCO will be in a position to conduct
validation batches for Clinical trials / BE studies for products to be
registered in Europe. This in turn will give INDOCO a right to supply the
products for a period of five years from the date of commercial launch by its
customers.
The year also witnessed approval from the German Health Regulatory Authorities,
for the tablet manufacturing facility at Plant-I Goa, which has enabled the
commencement of exports to Germany.
In the month of
July 2006, INDOCO has acquired a company - La Nova Chem (India) Private Limited
having an API manufacturing facility at Patalganga, dist.
Raigadh,
Maharashtra. With the acquisition of this API facility (a US-FDA approvable
facility), with the other existing US-FDA/UK-MHRA approved manufacturing
facilities at its disposal, with the commissioning of the state-of-the-art
Research & Development facility (inclusive of a US-FDA approvable kilo-lab
facility), as also with the manning of scientists - experienced &
knowledgeable in diverse regulatory requirements, INDOCO is truly poised to be
a complete end-to-end solution provider in ethical pharmaceuticals, for the
international markets.
FINANCIAL REVIEW OF OPERATIONAL PERFORMANCE –
Sales &
Profit
During the year
2005-06, INDOCO registered a 24.9% increase in its consolidated sales revenues,
over the preceding year. The consolidated profit before tax (PBT) and profit
after tax (PAT) registered an increase of 17.2% and 25.8%, respectively, during
the same period.
This increase
in the overall sales has been contributed by the formulation sales in the
domestic markets, which grew by about 20%, and exports, which grew by about
48%.
Secured Loans:
The outstanding
amount of secured loans reduced during the year from Rs 303.700 Millions to Rs
234.500 Millions, which was due to net repayment of such loans.
Unsecured
Loans
The outstanding
amount of unsecured loan reduced during the year from Rs 193.900 Millions to Rs
98.100 Millions. This was mainly on account of repayment of outstanding
Commercial Papers (Rs 150 Millions), which was partially offset by availing of
short term foreign currency loan (Rs 65.600 Millions) from IDBI Bank
Limited
Deferred
Taxes
The outstanding
amount of .deferred taxes increased during the year from Rs 97.600 Millions to
Rs 175.300 Millions This was mainly on account of the commissioning of new
R&D facility set-up by the Company at Rabale, Navi
Mumbai.
Fixed
Assets
The gross block
of the fixed assets has gone up during the year from Rs 1027.600 Millions to Rs
1311.600 Millions. This was mainly on account of the investments made in the
new R&D facility at Rabale, Navi Mumbai.
Investments
The outstanding balance of investments has come down during the year from
Rs 452.300 Millions to Rs 114.900 Millions. The funds available from
liquidation of the investments were utilised partially for the setting-up the
R&D facility at Rabale, Navi Mumbai and partially for lending funds to
subsidiary, Indoco Healthcare Limited, to enable investments by the subsidiary
in the new manufacturing facility at Baddi.
Loans &
Advances
The outstanding
balance of Loans & advances has gone up during the year from Rs 206.200
Millions to Rs 402.100 Millions. This increase represents mainly the funds lent
to the subsidiary, Indoco Healthcare Limited, to enable investment by the
subsidiary in the new manufacturing facility at Baddi.
Provision for
Tax
Provision for
tax on account of current liability has gone down from Rs 70 Millions in the
previous year to Rs 24.900 Millions in this year. At the same time the
provision for tax on account of the deferred liability has gone up from Rs
44.400 Millions in the previous year to Rs 77.600 Millions in this year. This
is mainly on account of the timing difference in the book depreciation and tax
depreciation applicable to the new R&D facility commissioned during the year.
Trade Terms With
v
Amishi Drugs & Chemicals
v
Ashco Industries Limited
v
Biomerieux India Private Limited
v
Brajesh Packaging Private Limited
v
Barcom Solutions (MUMB-) Private Limited
v
Bhansati Packwell Limited
v
Epitome Technologies Private Limited
v
Florale (I) Private Limited
v
Kitten Enterprises Private Limited
v
S. S. Pharmachem
v
Sainath Engineering Enterprises
v
Salgaonkar Sanchar
v
Salicylate and Chemicals Private Limited
v
Salpra Pharmaceuticals & Chem
v
Sangat Packaging Industries,
v
Thermolab Scientific Equipments Private Limited
v
Techno Search Instruments,
v
Toshniwal Instruments Mfg. Private Limited
v
Vilam Exports Private Limited
v
Vasundhara Rasayans Limited
v
Vital Flavours & Fragrances
FIXED ASSETS
v Land
(Lease Hold)
v Buildings
& Premises
v Plant
& Machinery
v Handling
Equipments
v Pollution
Control
v Equipments
v Laboratory
Equipments
v R&D
Equipments
v Plant -
Utilities
v Electrical
Installations
v
Furniture & Fixtures and
v Office
& Data Processing
v Equipments
v Air-conditioning
Unit
v Vehicles
AS PER WEBSITE
Indoco Remedies Limited is a fast growing Indian Company involved in Research &
Development, Manufacturing, Marketing and Distribution of Pharmaceutical
products and services in the Domestic and International Market.
Indoco has a
good domestic presence and has strategically aligned itself for a giant leap to
be a global player.
Indoco has a
broad product portfolio covering a wide range of therapeutic segments and has
recently made a foray into the super specialty - cardiology, diabetology
and life style segments.
The Company has
state-of-the-art manufacturing facilities which are of highest international
standards and this has primarily contributed to Indoco's success with
formulations exports in the European Market.
VISION
- To improve the quality of life by
making available products of highest quality, at affordable prices.
- To ensure that quality becomes a habit,
a commitment that finds expression at every stage from production,
testing, marketing to employment relations.
- To be a research based globally known company
present in all 5 continents of the world.
MISSION
- To continue to be a quality driven,
research based, focused pharmaceutical company.
- To adapt and assimilate CGMP (Current
Good Manufacturing Practices) with strict adherence to environmental safety.
- To build on the trust generated by the
medical fraternity.
- To share management goals with
employees and also to celebrate corporate successes with them.
INDOCO DIRECTOR'S PROFILES
COMPOSITION OF THE BOARD : The Company's policy is to have a proper blend of Executive and
Independent Directors to maintain the independence of the Board and at the same
time proper governance. The Board consists of ten members, four being Executive
and Whole time Directors and six are Independent Directors.
The day-to-day
management of the Company is conducted by the Chairman & Managing Director
subject to the supervision and control of the Board of Directors and he is
currently assisted by three Whole-time Directors. The brief profile of
Company's Board of Directors is as under:
Mr. Suresh G.
Kare : Chairman & Managing Director, son of the founder Late Shri Govind
R. Kare, and holds Bachelor of Science Degree from Bombay University. Mr. Kare
was appointed as the Managing Director of Indoco Remedies Limited in the year 1963
of the then sick unit with a turnover of Rs. 25 millions. Under the stewardship
of Mr. Suresh G. Kare, Indoco has achieved various milestones and presently
reached to the turnover of Rs. 1750 millions. He also assumed the
responsibilities of Chairman of the Company in the year 1985 .
Mr. Kare has
vast experience of more than four decades in the pharmaceutical industry. He is
the President of Indian Drugs Manufacturer's Association representing the
indigenous manufacturers of pharmaceuticals. He is also Chairman of Goa Hindu
Association's Sneha Mandir, a modern home for the aged at Bandora-Goa and the
Managing Trustee of Suresh Kare - Indoco Foundation's, a Rs. 10 Million
Charitable Trust established to promote education and social uplift.
Dr. M. R. Narvekar
: Non Executive Director. He is a leading Gynaecologist. He actively
supports social activities for the up-liftment of the society. He was appointed
on the Board on June 15, 1977.
Mr. S. Y. Rege
: Non Executive Director. He holds Bachelor degree of Law from Bombay
University. He is a partner in Crawford Bayley & Co.(Solicitors &
Advocates), an Indian legal firm of repute. He has been a legal counsel to
numerous companies. He is also a Director of several leading companies. His
area of professional expertise is banking, commercial documentation,
litigation, arbitration and miscellaneous legal work. He was appointed on the
Board on September 10, 1994.
Mr. P. K.
Kakodkar : Non Executive Director. He holds a Bachelor Degree in Arts from Bombay
University Mr. Kakodkar had a distinguished career in the Pharmaceutical
Industry and was the Managing Director of Roussel India Limited for nearly 19
years. Apart from General management, his areas of expertise were Marketing and
Product Portfolio Development. He was honored by the Government of France with
the Knighthood of the National Order of Merit. He was appointed on the Board on
September 10, 1994.
Mr. D. M.
Sukthankar : Non Executive Director. He holds Master Degree in Commerce from Bombay
University. He was selected for IAS (Indian Administrative Service) in 1956 and
served in various capacities in different departments of the Govt. of
Maharashtra and the Govt. of India for a period of 35 years, prior to his
retirement on 31st August 1990 as Chief Secretary to the Govt. of Maharashtra.
During the period from May, 1981 to November 1984, he also worked as the
Municipal Commissioner of Greater Bombay. After his retirement, he has worked
and is working as chairman or member of various Boards/Committees appointed by
the Government of India and Government of Maharashtra. Mr. Sukthankar was
appointed on the Board on September 10, 1994.
Mr. D. N.
Mungale : Non Executive Director. He holds Bachelor of Commerce & Bachelor of
Law degree and is also Associate Member of The Institute of Chartered
Accountants of India. Mr. Mungale is a Mumbai based Strategic Consultant in
matters of finance, trade and industry. He has worked with many important
government functionaries for many years and has also been an organization builder
in both Bank of America and DSP Merrill Lynch. He is a member of the National
Committee of the United World Colleges in India, Member of Development
Council-Oxford Central for Hindu Studies, Oxford, UK, Member of Investment
Committee of the Cricket Club of India.
Mr. D. M.
Gavaskar : Non Executive Director. He is a Chartered Accountant and Company
Secretary. Mr. Gavaskar is a Commerce Graduate from the University of Bombay
and he has also completed from U.K. a course in Strategic Management and another
course for Senior Management from Templeton College, Oxford University, and
Henley College of Management, respectively. Mr. Gavaskar started his career
with Johnson and Johnson (India) Limited and thereafter held different
positions with Abbott India Limited (then Boots India Limited) including that
of Director of Finance & Company Secretary between 1983 and 1985 and
Finance Director & Company Secretary between 1985 and 1989. From 1989 until
October 2005 Mr. Gavaskar was Managing Director & President of Abbott India
Limited (formerly Knoll Pharma). Mr. Gavaskar not only had a brilliant academic
career but also has to his credit several achievements in terms of improving
performance of the business, operations restructuring, cost reduction and
containment, outsourcing, efficiency improvement and strategy and business
development during his tenure with Abbott India Limited Mr. Gavaskar also
received the President’s citation from Abbott Labs USA in 2001 and 2002. Mr.
Gavaskar has been inducted as an Additional Director on the Board with effect
from April 11, 2005 and would hold office until the next Annual General
Meeting.
Mr.
F.X.Coutinho : Director-Marketing. He holds Bachelor of Science degree. Mr. Coutinho has
also completed his Management Studies from University of Bombay. He joined the
company in the year 1975 and has over 29 years of experience in Sales &
Marketing functions. Before his elevation to the Board on 27.03.2004, he held
the position of President - Marketing in the Company.
Mr. Sundeep V.
Bambolkar : Director- Finance & Operations. He is a Science Graduate and holds
a Master Degree in Business Administration from University of Bombay. He was
also selected to attend the Global Advanced Management Programme jointly
conducted by Indian School of Business, Hyderabad and Kellogg School of
Business at Chicago in USA. Mr. Sundeep V. Bambolkar joined the group in the
year 1982 and has over 22 years of experience in Finance & Operations.
Before his elevation to the Board on March 27, 2004, he held the position of
President - Finance & Operations in the Company.
Ms. Aditi Kare
Panandikar : Director- Business Development & HRD. She is the eldest daughter of
Mr. Suresh G. Kare. Ms. Panandikar is a Graduate in Pharmacy from University of
Bombay. She also holds Masters Degree in Management from Ohio State University,
USA. She joined the company in the year 1993 as Manager - Logistics and has
over 11 years of experience in Logistics, Technical, Human Resource &
Business Development functions. Before her elevation to the Board on March 27,
2004, she held the position of President-Business Development & HRD in the
Company.
MILESTONES
Progress Over the Last Decade :
- 1993 - R&D recognized by DSIR
- 1997 - State-of-the-art plant, Plant I
commissioned at Verna Goa
- 1999 - Acquisition of Warren, Company
makes presence in Ophthalmic & Oral Hygiene Segments
- 1999 - New Corporate Office at Indoco
House
- 2002 - Launch of Radius - the Super
Specialty marketing division
- 2002 - State-of-the-art sterile
facility, Plant II commissioned at Verna Goa
- 2003 - UK MHRA approval for the Solid
Dosage facility at Plant I
- 2003 - Exports to Regulated Markets
commence
- 2003 - First contract for Dossier
Development with European Company
- 2003 - Domestic Marketing makes a foray
into the Lifestyle segment
- 2004 - First Contract for Development
services with US Company
- 2004 - Four Patent application filed.
- 2004 - Company jumps five ranks in two
yrs in the ORG Marg Retail Audit
- 2005 - First ANDA filed on the basis of
Exhibit batches manufactured in their sterile facility in Goa.
- 2005 - Development Contract for an
injectible products signed with a US Company.
- 2005 - Tablet capacity doubled by
commissioning an extended facility in the existing UK-MHRA approved plant.
AWARDS AND ACHIEVEMENTS
LIFE TIME ACHIEVEMENT AWARD : Mr. Suresh G. Kare received the prestigious Excellence Award-2004
from Pharma Business And Technology.
GOA PLANT I : Solid Dosage Forms and Externals Facility
received the IDMA Quality Excellence Awards 2003 - Formulations for
turnover between Rs. 250 Millions and 500 Millions - Gold Award, second
time since commissioned in 1997
GOA PLANT II : The Sterile Facility for Injectibles and
Ophthalmics also received the IDMA Quality Excellence Awards 2003 -
Formulations for turnover less than Rs. 100 Millions - Silver Award.
This is what
one of their valuable customers has to say about the Solid Dosage Facility at
Goa –
"The
standard of the facilities are among the highest that I have seen within a
pharmaceutical site, not just in India but globally. The attention to detail
shown in the equipment, procedures, premises and processes are outstanding.
The expertise,
knowledge and commitment demonstrated by all the members of staff show that as
a Company, INDOCO is dedicated to ensuring that the personnel are given the
opportunity, training and support to contribute to the success of the Company
and their own personal goals."
GOA PLANT – I
Indoco's manufacturing location at Verna, Goa
is state-of-the-art facility providing an excellent combination of CGMP
and environmental friendliness.
The plant has
been approved by the UK-MHRA. It is designed on the Vertical Flow
concept which involves minimum material handling and allows excellent flow of
man and material.
This plant
manufactures the following dosage forms and capacities on a single shift basis
:
- Liquid Orals : 31 million bottles
- Tablets : 3 billion
- Ointments : 15 million tubes
- External Preparations : 15 million
tubes
The Plant I also holds the WHO-GMP
approval. The facility has now been expanded to meet the growing demands
by their customers from the regulated markets.
The salient
features of the expanded facility are as follows :-
- Located in non-pollutant area
- Vertical flow System
- Monolythick flooring in production and
corridor area
- Fully air-conditioned RM and FG stores
- Door Interlocks for access to critical
processing areas
- Seperate man and material entry for
each manufacturing area
- A seperate Pilot Plant
- Purified water system comprising of RO
and EDI units to produce water meeting USP specifications
GOA PLANT – II
The sterile Plant at Verna, Goa is
state-of-the-art sterile facility for injectibles and ophthalmics.
The plant has
been designed as per the UK-MHRA guidelines, with a Sophisticated Internal
Environment Monitoring System using PC based system to monitor & control
parameters like temperature, humidity, pressure difference, particulate count
and safety aspects.
The Modular
design of the plant is largely accepted by Western Countries, has a speedy
erection of manufacturing area, and is one of the first plants to go for
modular concept.
The sterile
Plant has the following capacities on a single shift basis:
- Ampoules : 44 million
- Vials : 18 million
ANDHERI PLANT
The Andheri Plant is the Company's Pioneer
unit. This Plant was first built in 1974 and has since undergone several
expansions. The unit also boasts of an excellent Quality Assurance and R&D Laboratory.
The Andheri plant has been accredited with the WHO-GMP approval.
Following
dosage forms are manufactured at the Andheri plant :
- Liquid Orals
- Tablets
This Plant caters mainly to Domestic and
lesser Regulated International Markets.
New Tablet Department
A noteworthy feature of the Andheri plant is
the commissioning of a new tablet department.
This department
has been approved by the RSSL (Reading
Scientific Services Limited) - an independent audit agency in the UK.
Consequently, the company has started exports of some of the products to UK.
TARAPUR PLANT
This plant manufactures Toothpastes and
External preparations. This facility has been accredited with the WHO-GMP
approval.
PRODUCTS
INDOCO manufactures as many as 50
pharmaceutical formulations covering a wide spectrum of therapeutic groups
ranging from analgesics and antipyretics to anti-TB, haemostatic and
antibiotics. Quite a few of the brand names have by now become synonymous with
their therapeutic functions amongst the medical fraternity. Every year, new
products are added to the range, indicative of the Company's R&D efforts in
the cause of healthcare.
[A]. ACTIVE PHARMACEUTICAL INGREDIENTS (APIs)
[B]. PRODUCT FORMULATIONS
* The patent situation should be verified by the customer or the
importer. Products protected by a patent in a country will not be sold in that
country.
Analgesic / Antipyretic/ NSAIDs
Antacids
Anthelmintics
Indoco Remedies enters into a Joint Venture partnership with US based
company to launch Ophthalmics in US
October 18, 2007
Mumbai, October 18, 2007: Indoco Remedies Limited and Amneal Pharmaceuticals, a
New Jersey-based developer, manufacturer and distributor of generic
pharmaceuticals announce the finalization of a joint venture partnership to develop,
manufacture, market and distribute several products for the United States
market. The initial product pipeline will include at least ten ophthalmic
products, several of which have already progressed substantially through the
development process.
Under the terms of this agreement, the expertise of each company will be
leveraged to create a highly efficient and effective product flow, from API
manufacturing through regulatory approval and distribution that will bring at
least ten high-quality generic drugs to the US market over the next five years.
The product selection committee, made up of three members from each company,
chose the first group of products to build a balanced offering in the
ophthalmic category, providing potential customers a single source for the most
important molecules of the category.
Indoco’s responsibilities within the joint venture are, API manufacturing for
the majority of these products, formulation development, analytical method
development, production of bioequivalence batches, data reporting and
ultimately manufacturing of the approved generic drugs for export to U.S.
Amneal’s role in the partnership is to prepare and file the ANDAs for US FDA
approval using the emerging eCTD/QBR/QOS process, maintaining all required FDA
and regulatory agency documentation both prior to and following approval as
well as to exclusively sell, market and distribute these products throughout
the US pharmaceutical market across all segments.
With balanced input from both Amneal and Indoco, funding for developing all
these products, including bio-study costs, legal fees and other development
expenses, will be equally shared. Likewise, the financial benefit from the sale
of these products will be shared.
For additional development after this initial group of products, Indoco and
Amneal have already begun to identify several more products to pursue, in the
ophthalmic category as well as other therapeutic categories and dosage forms.
The two companies fully expect this agreement to expand significantly in the
near term and for it to last for many years.
In Amneal, Indoco now has a young and growing US generic company as a partner
to market their ophthalmic products in USA. This partnership will help Indoco
to speedily introduce their products in the U.S. market and to explore other
areas of growth opportunities in the largest generic market of the world.
Indoco Remedies
geared up for Brazil
July 4, 2007
Indoco Remedies Solid Dosage facility at Goa secures ANVISA, Brazil
approval.
Mumbai, July 4, 2007: Indoco Remedies Limited today announced that its solid
dosage facility at Goa, Plant I has received approval from Brazilian food and
drug agency, ANVISA, marking the beginning of company’s foray into one of the
largest pharmaceutical market in the world. This approval paves way for
contract manufacturing opportunities for Indoco in Brazil.
Ms. Aditi Kare Panandikar, Director Business development said, "As a part
of companies growth strategy & to move up the value chain, Indoco Remedies
intends to enter newer, semi-regulated and regulated markets worldwide after
getting approvals from the respective regulatory authorities”.
In addition, Indoco Remedies is working towards obtaining MCC approvals, for
their Solid dosage as well as Sterile Plants. Out of Company’s two
manufacturing facilities at Goa, Plant I is approved by MHRA-UK, for Tablets,
Cream & Capsules and by Darmstadt Germany for Solid Dosages. Plant II is a
state-of-the-art sterile facility for Ophthalmics and Injectables approved by
USFDA.
Indoco Remedies
Limited acquires API manufacturing facility
July 4, 2006
Mumbai, July 4, 2006: Indoco Remedies Limited, today announced the acquisition
of La NovaChem’s API manufacturing facility, located at Patalganga,
Maharashtra. The acquisition has been effected by acquiring the shares of La
NovaChem (India) Private Limited, the company owning the said facility, thereby
making La NovaChem a 100% subsidiary of Indoco. The facility is built on U.S.
FDA standards and Indoco will apply for an approval shortly.
The acquisition La NovaChem facility, a state-of-the-art unit, is a strategic
step by the company to build its in-house API manufacturing capability both for
the domestic as well as exports business. Recently, Indoco commissioned it’s
newly set-up R&D Centre at Rabale near Thane, which primarily targets API
synthesis and development, and is also equipped with a kilo-lab facility.
Indoco is increasingly looking to expand its business from other geographies,
specially the regulated markets of US and Europe. Indoco’s Goa plant for
sterile ophthalmic preparations is US FDA approved. This will facilitate the
production and export of the company's ophthalmic preparations to USA. Indoco
has signed agreements with two generic companies in USA and will supply
products from the Goa facility. The company is looking at filing a total of 7
ANDA’s by December 2006. The market size of the products aggregates USD 1.1
bn.
Commenting on the acquisition, Mr. Suresh Kare, Chairman and Managing Director
of Indoco Remedies Limited said, “The acquisition of La NovaChem’s U.S. FDA
approvable API facility, and the recent commissioning of the API focused
R&D facility, would fortify and substantially hasten Indoco’s strategy of
backward integration and targeting of regulated markets of U.S and Europe. It
will also help INDOCO build its strong presence in API markets, both in India
and abroad”.
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.39.32 |
|
UK Pound |
1 |
Rs.82.08 |
|
Euro |
1 |
Rs.56.96 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
72 |
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. |
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 |
|