MIRA INFORM REPORT

 

 

 

Report Date :

19.08.2008

 

IDENTIFICATION DETAILS

 

Name :

PIRAMAL HEALTHCARE LIMITED

 

 

Formerly Known :

NICHOLAS PIRAMAL INDIA LIMITED

 

 

Registered Office :

Nichola Piramal Tower, Ganpatrao Kadam Marg, Lower Parel, Mumbai – 400013, Maharashtra

 

 

Country:

India

 

 

Financials (as on):

31.03.2008

 

 

Date of Incorporation :

26.04.1947

 

 

Com. Reg. No.:

11-5719

 

 

CIN No.:

[Company Identification No.]

U24110MH1947PLC005719

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMN07675D

 

 

PAN No.:

[Permanent Account No.]

AAACN4538P

 

 

Legal Form :

A closely held Public Limited Liability Company.

 

 

Line of Business :

Manufacturers of tablets, capsules, liquids, powders, creams & ointments, granules, bulk drugs & intermediates, vitamin A in various forms and combinations, sodaline and borosilicate and also glass manufacturers.

 

 

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 :

USD 50000000

 

 

Status :

Excellent

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well-established and reputed pharmaceutical company having fine track. Directors are reported as well known industrialists. Their trade relations are fair. General financial position of the company is good. Business is active. Payments are usually correct and as per commitments.

 

The company can be considered good for any normal business dealings. 

 

LOCATIONS

 

Registered Office :

Nichola Piramal Tower, Gnapatrao Kadam Marg, Lower Parel, Mumbai – 400013, Maharashtra, India.

Email :

sectdept@pel.co.in

 

 

Head Office :

100, Centrepoint, Dr. Ambedkar Road, Parel, Mumbai – 400 012, Maharashtra, India

Tel. No.:

91-22-66636666/24134653/24102082

Fax No.:

91-22-24163787/24172861/24163787/24144687

E-Mail :

spiramal@giasbm01.vsnl.net.in  / spiramal@giasbm01.vsnl.net.in

Website :

http://www.nicholaspiramal.com 

 

 

Administrative Office :

Morarjee Mills Compound, Administrative Building, Dr. Ambedkar Road, Parel, Mumbai - 400 012, Maharashtra, India

Tel. No.:

91-22-66636666

Fax No.:

91-22-66636416

E-Mail :

vidula@bom3.vsnl.net.in

 

 

Plant Locations :

 

India :

  • Plot No. 67-70, Sector II, Pithampur - 454 775, Madhya Pradesh

 

  • Plot No. K-I, Additional MIDC, Mahad, District Raigad, Maharashtra

 

  • L.B.S. Marg, Mulund (West), Mumbai - 400 080, Maharashtra

 

  • Balkum, Thane - 400 608, Maharashtra

 

  • Ennore Express Highway, Chennai - 600 057, Tamilnadu, India

 

  • Digwal Village, Medak District, Andhra Pradesh, India

 

  • Plot 903/904, GIDC Industrial Estate, Ankleshwar, Gujarat

 

  • Research and Development Center, Goregaon, Mumbai

 

  • Baddi, Himachal Pradesh

 

  • Pawne Mahape, Navi Mumbai, Maharashtra

 

  • Plot No. 6505 /3, Sachin – 394 230, Surat

 

Overseas:

 

Nicholas Piramal  Pharmaceuticals (UK) Limited

  • Morpeth, UK

 

  • Huddersfield, West Yorkshire, UK

 

  • Grangemouth, Stirlingshire, UK

 

  • Blackley, Manchester, UK

 

  • Billingham, Cleveland, UK

 

Torcan Chemical Limited (Canada)

  • Aurora, Ontario, Canada

 

 

DIRECTORS

 

Name :

Mr. Ajay G. Piramal

Designation :

Chairman

Age :

48 Years

Qualification :

B.Sc, M.M.S., A.M.P.

Date of Joining :

1st April 1997

Experience :

26 Years

Last Employment and Position Held :

Morarjee Goculdas Spring and weaving. Company Limited as Chairman and Managing Director

 

 

Name :

Mr. C. M. Hattangdi

Designation :

Director

 

 

Name :

Mr. Y. H. Malegam

Designation :

Director

 

 

Name :

Mr. Rajesh Khanna

Designation :

Director

 

 

Name :

Mr. G. P. Goenka

Designation :

Director

 

 

Name :

Dr. William Jenkins

Designation :

Director

 

 

Name :

Ms. Urvi A. Piramal

Designation :

Director

 

 

Name :

Mr. Harsh Piramal

Designation :

Director

 

 

Name :

Mr. R. A. Shah

Designation :

Director

 

 

Name :

Mr. Vijay Shah

Designation :

Director & Chief Operating Officer

Age :

47 years

Qualification :

B.Com., F.C.A. AMP (Harvard)

Date of Joining :

14.12.1887

Experience ;

24 years

Last Employment and Position Held :

Management Structure and Systems Private Limited- Sr. Consultant

 

 

Name :

Mr. M. R. Shroff

Designation :

Director

 

 

Name :

Mr. N. Vaghul

Designation :

Director

 

 

Name :

Mr. S. Venkitaramanan

Designation :

Director

 

 

Name :

Mr. Deepak Satwalekar

Designation :

Director

 

 

Name :

Mr. S. Ramadorai

Designation :

Director

 

 

Name :

Dr. (Mrs.) Swati A. Piramal

Designation :

Director-Alliances and Communications & Chief Scientific Officer

Age :

49 Years

Qualification :

M.B.B.S, D.I.M., M.P.B. (Harvard)

Date of Joining :

01.10.1994

Experience ;

24 Years

Last Employment and Position Held :

Gopikrishnan Piramal Memorial Hospital as a Medical Director

 

 

Name :

Mr. Keki Dadiseth

Designation :

Director

 

 

Name :

Mr. Michael Fernandes

Designation :

Director

 

 

KEY EXECUTIVES

 

Name :

Mr. Leonard D'Souza

Designation :

Company Secretary

 

 

 

Management Committee:

 

 

Name :

Mr. Harsh Piramal

Designation :

Chief Operating Officer

Age :

30 Years

Qualification :

B.Sc., MBA

Date of Joining :

20th June 2002

Experience :

6 Years

Last Employment and Position Held :

Indocean Chase as Analyst

 

 

Name :

Mr. N Sanathanam

Designation :

Group President – Finance and Legal and Chief Financial Officer

Age :

56 Years

Qualification :

B.Com, C.A.

Date of Joining :

26th December 2001

Experience :

32 Years

Last Employment and Position Held :

The Bombay Dyeing and Manufacturing Company Limited as Group Senior ice President (Corporate Affairs)

 

 

Name :

Mr. Shreekant Gupte

Designation :

Director

 

 

Name :

Dr. Somesh Sharma

Designation :

Chief Scientific Officer

Age :

60 Years

Qualification :

Ph.D.

Date of Joining :

21ST October 2002

Experience :

27 Years

Last Employment and Position Held :

Monoclonal Antibody and Vaccine Business Unit, Anosys Inc. California as Senior Vice President.

 

 

Name :

Mr. Ananthanarayanan R.

Designation :

President – international Operations

 

 

Name :

Mr. Asaikar Umesh

Designation :

President – international Operations

 

 

Name :

Mr. Athreya Shankar

Designation :

Senior Vice President, Strategic Investments (M&A)

 

 

Name :

Mr. Bansi Lal

Designation :

President-Quest, Institute of Life Sciences

 

 

Name :

Mr. Bhatia Satish C.

Designation :

President – Clinical Research and Regulatory Affairs

 

 

Name :

Mr. Chawla Harish

Designation :

Chief Information Officer

 

 

Name :

Mr. Gad Narayan B.

Designation :

President – Marketing and Sales, Multi speciality and Extra Care Division

 

 

Name :

Mr. Iyer Bhasker

Designation :

President – Sales and Marketing, Cardex Division

 

 

Name :

Mr. Iyer Sainath

Designation :

President – Marketing Actis Division[

 

 

Name :

Mr. Kamath V.P.

Designation :

Senior Vice President – Biotek Division

 

 

Name :

Mr. Mahadevan Ajit

Designation :

Vice President – Group Strategic Planning

 

 

Name :

Mr. Mukhopadyaya T

Designation :

Vice President – Research

 

 

Name :

Mr. Oke Vidyadhar G.

Designation :

President – Medical Services

 

 

Name :

Mr. Piramal Ajay G.

Designation :

Chairman

 

 

Name :

Mr. Saigal J C

Designation :

Executive Director (International) Bulk Drugs Division

 

 

Name :

Mr. Sengupta S.S.

Designation :

C.E.O. – S.P.Division

 

 

Name :

Mr. Shah Vijay

Designation :

Chief Operating Officer

 

 

Name :

Mr. Singh Praneet

Designation :

Director – Formulations

 

 

Name :

Verma Rajiv

Designation :

Vice President – Operations Bulk Drugs

 

 

Name :

Mr. Michael Fernandes

Designation :

Director

 

 

Name :

Mr. Praneet Singh

Designation :

Director

 

 

MAJOR SHAREHOLDERS

 

As on 30.06.2008

 

Names of Shareholders

No. of Shares

Percentage of Holding

Shareholdings of Promotor and Promoter Group

 

 

Indian

 

 

Individuals/ Hindu Undivided Family

8131220

3.89

Bodies Corporate

90851250

43.47

Any Other (Specify) – NPIL Senior Employees Option Scheme

3974788

1.90

 

 

 

Public Shareholding

 

 

Institutions

 

 

Mutual Funds / UTI

5115133

2.45

Finanacial Institutions / Banks

20897

0.01

Insurance Companies

11474805

5.49

Foreign Institutional Investors

51138506

24.48

 

 

 

Non Institutions

 

 

Bodies Corporate ( Including Foreign Bodies Corporate)

14039207

6.72

Individual

 

 

a) Individuals – i. Individuals shareholders holding nominal share capital up to Rs. 0.100 Millions

21443288

10.25

b) individuals shareholders holding nominal share capital in excess of Rs. 0.100 Million

2433624

1.16

NRIS

356183

0.17

Clearing Members

34243

0.02

Total

209013144

100.00

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturers of tablets, capsules, liquids, powders, creams & ointments, granules, bulk drugs & intermediates, vitamin A in various forms and combinations, sodaline and borosilicate and also glass manufacturers.

 

 

Products with ITC No.:

·         Phensedyl- 300440

·         Paraxin-300310

·         Haemaccel-300310

 

Product Range

 

Ø       Formulations

Ø       Diagnostics and Patient Care

Ø       Vitamins

Ø       Product Finder

 

Product Description

ITC Code

Phensedyl

300440

Tran Flurophenyl Hydroxymethly n Methlyl Piperidine

29420090

Haemaccel

300310

 

 

Brand Names :

Ø       Anti-Infectives

·         Paraxin

·         Bactrim

·         Genticyn

·         Omnatax

 

Ø       Cardio- Vasculars

·         Sorbitrate

·         ISMO

·         Enace-D

·         Calaptin

·         Cytogard

·         Bezalip

 

Ø       Nutritionals

·         Becozym C Forte

·         Supradyn

·         Redoxon

·         Exerge

 

Ø       Respiratory

·         Deletes

 

Ø       Others

·         Haemaccel

 

Ø       Anti-Diabetics

·         Euglucon

·         Semi-Euglucon

·         Glimmer

·         Gluformin

·         Diabetrol

 

Ø       CNS

·         Rivotril

·         Librium

·         Valium

·         Assert

 

Ø       NASID’s

·         Rejoint

·         Orthobid

·         Micropyrin

·         Multigesic

 

Ø       Biotek

·         Recormon

·         Neupogen

·         Cellecept

 

PRODUCTION STATUS (as on 31.03.2007):-

 

Particulars

Unit

Installed Capacity

Actual Production

Trade

 

 

 

Creams and powder

Kgs

--

--

Vials

Ltrs

--

--

Tablets and capsules

Mios

--

--

Liquids, drops and solutions

Ltrs

--

--

 

 

 

 

Manufactured

 

 

 

Tablets

Mios

11495.0

4974.8

Capsules

Mios

580.0

330.6

Liquids

KLs

26147.4

9877.7

Powders, creams and ointments

MTs

 

67.3

Bulk drug and intermediates

MTs

1696.2

1415.6

Vitamin A in various forms and combinations

mmu

276.0

180.4

 

GENERAL INFORMATION

 

Trade terms with :

·         Adams Fine Chemicals Private Limited

·         Patel Papain Industries

·         Supreem Pharmaceuticals

·         Seasons Polymers

·         Vasant Process

·         Ansa Printpack Private Limited

 

 

No. of Employees :

6812

 

 

Bankers :

·         Allahabad Bank

·         Deutsche Bank

·         Corporation Bank

·         Bank of America

·         Citibank N.A.

·         HDFC Bank

·         Standard Chartered Bank

·         Calyon Bank

·         Axis Bank

·         IDBI Bank

·         State Bank of Hyderabad

·         ICICI Bank Limited

·         ING Vysya Bank Limited

·         The Hong Kong & Shanghai Banking Corporation Limited

 

 

Facilities :

SECURED LOANS

31.03.2008

Cash Credit from Banks (Includes Packing Credit Loans)

1511.700

Term Loan From Bank

0.000

Total

1511.700

Notes on Secured Loans

 

Cash Credit facilities including Packing Credit in Foreign Currency (PCFC) are secured by hypothecation of stocks and book debts.

 

 Term Loans from Banks are secured by the following: -

 

a)  ECB loan of Rs.222.4 Million (US$ 5.0 Million) from BNP Paribas, Singapore has been secured by first charge of immovable property of the company situated at various manufacturing locations and further secured by hypothecation and further secured by hypothecation of the movable assets of the Company, both present and future (save and except book debts) subject to prior charge on certain specified moveable assets created in favour of banks for securing working capital requirements.

 

 

3. Satisfaction of charges in respect of loans repaid during the year and certain old loans are still awaited.

 

UNSECURED LOANS

31.03.2008

Fixed Deposits

0.200

Banks

3531.000

Total

3531.200

 

 

 

 

Banking Relations :

Good

 

 

Auditors :

Price Waterhouse

Chartered Accountants

Mumbai, Maharashtra

 

 

Associates:

·         Allergan India Private Limited (Allergan)

·         Boots Piramal Healthcare Private Limited (Boots)

·         Morarjee Realties Limited (Formerly The Morarjee Goculdas Spg. & Wvg. Company Limited) (Morarjee Realties)

·         Morarjee Textiles Limited (Morarjee Textiles)

·         Morarjee Castiglioni (India) Limited

·         Piramal Enterprises Limited (Piramal Enterprises)

·         Piramal Holdings Limited (Piramal Holdings)

·         Thundercloud Technologies (India) Private Limited (Thundercloud Technologies)

·         Piramyd Retail and Merchandising Private Limited

·         The Swastik Safe Deposits and Investments Limited

 

Membership:

  • Confederation of Indian Industry

 

 

Subsidiaries :
  • Piramal International
  • Nicholas Piramal  Fininvest Private Limited (Nicholas Piramal  Fininvest)
  • Nicholas Piramal  Laboratories and Diagnostics Private Limited (Nicholas Piramal  Labs)
  • Nicholas Piramal  - Dr. Phadke Pathology Laboratory and Infertility Center Private Limited (Nicholas Piramal  Dr. Phadke)
  • Nicholas Piramal  - Dr. Golwilkar Laboratories Private Limited (Nicholas Piramal  Dr. Golwilkar)
  • Nicholas Piramal  Pharma Inc. (Nicholas Piramal  Pharma)
  • Nicholas Piramal Life Sciences Limited. (from June 22, 2004)
  • Pathlabs
  • Nicholas Piramal  Pharmaceuticals (UK) Limited
  • Torcan Chemical Limited

 

 

Controlling Companies :

·         Glass Engineers Private Limited

·         Legend Pharma Private Limited

·         Nandan Piramal Investments Private Limited

·         Piramal Texturising Private Limited

·         Swati Piramal Investments Private Limited

·         Vulcan Investments Private Limited

·         NPIL Holdings Private Limited

·         The Swastik Safe Deposit and Investment Limited (Swastik Safe)

·         Pirmal Enterprises Limited (Pirmal Enterprises)

·         Savoy Finance and Investment Private Limited

·         Nandini Priamal Investments Private Limited

·         The Ajay G Primal Foundation

 

 

Solicitors :

·         Crawford Bayley and Company

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

250000000

 

Equity Shares

Rs.2/- each 

Rs. 500.000 millions

3000000

 

Preference Shares

Rs.100/- each

Rs. 300.000 millions

24000000

Preference Shares

Rs. 10/- each

Rs. 240.000 millions

105000000

 

Unclassified Shares

Rs. 2/- each

Rs. 210.000 millions

 

Total

 

Rs. 1250.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

209013133

 

Equity Shares of

Rs.2/-e ach 

Rs. 418.000 millions

 

Less- Reduced as per Demerger Scheme

 

Rs. 20.900

 

Add – Utilised from General Reserve

 

Rs. 20.900

 

Total

 

Rs. 418.000 Millions

 

Notes:

 

Of The Above:

 

1.       39085590 (39085590) Eqivalent Equity Shares of Rs. 2/- each were allotted as fully paid bonus shares by capitalization of Share Premium/ General Reserve.

2.       8250000 (8250000) Equivalent Equity Shares of Rs. 2/- each were allotted to erstwhile shaerloderes of Gujarat Glass Limited on amalgamation

3.       8867010 (8867010) Equivalent Equity Shares of Rs. 2/- each were allotted to erstwhile shareholders of Boehringer Mannheim India Limited on amalgamation

4.       5197050 (5197050) Equivalent Equity Shares of Rs. 2/- each were allotted to erstwhile shareholders of Sumitra Pharmaceuticals and Chemicals Limited as per the scheme of arrangement.

5.       37525020 (37525020)  Equivalent Equity Shares of Rs. 2/- each were allotted to erstwhile shareholders of Piramal Healthcare Limited (PHL) as per the scheme of arrangement.

6.       The erstwhile Pirmal Helathcare Limited shareholders held 962180 warrants with a right to convert into 75 Equivalent Equity Shares of the Company for every two warrents held on payment of Rs. 10/- in Cash per Equity Share. Out of this 952644 (952644) warrents were converted into 37524155 (37524155) shares resulting in the Issued and Subscribed Capital increasing by Rs. 71.400 Millions (Rs. 71.400 Millions) The remaining 9536 warrents were cancelled.

7.       15750000 (15750000) Equivalent Equity Shares of Rs.2/- each were allotted to the erstwhile shareholders of Rhone-Poulenc India Limited on its merger with the Company.

8.       The Company’s Right Issue Offer of 19001601 Equity Shares of Rs. 2/- each for Rs. 175/- each (including a Share Premium of Rs. 173/- each) for cash aggregating to Rs. 3325.300 Millions (Rs. 3325.300 Millions) opened for subscription on August 01, 2005 and closed on August 30, 2005. The offer was oversubscribed 1.2 times. Pursuant to the same, 18997128 (18997128) Equity Shares of Rs. 2/- each fully paid up were allotted on September 25, 2005 and 11 (Nil) Equity Shares of Rs. 2/- each fully paid up were allotted on July 16, 2007. Allotment of the balance 4462 (4473) Equity Shares of Rs. 2/- each has been kept in abeyance pending receipt of necessary documentation for establishing title these shares.

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2008

31.03.2007

31.03.2006

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

418.000

801.700

951.700

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

9746.700

9762.200

8742.900

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

10164.700

10563.900

9694.600

LOAN FUNDS

 

 

 

1] Secured Loans

1511.700

1793.300

1620.500

2] Unsecured Loans

3531.200

2168.800

312.000

TOTAL BORROWING

5042.900

3962.100

1932.500

DEFERRED TAX LIABILITIES

1031.900

1033.600

858.500

 

 

 

 

TOTAL

16239.500

15559.600

12485.600

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

8082.300

8701.500

6752.400

Capital work-in-progress

478.200

459.700

1754.500

 

 

 

 

INVESTMENT

1282.600

1265.000

789.400

DEFERREX TAX ASSETS

169.500

162.100

153.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
2524.900
2264.800

2147.500

 

Sundry Debtors
3029.200
2298.800

1747.500

 

Cash & Bank Balances
340.700
220.500

109.200

 

Other Current Assets
77.900
86.500

72.900

 

Loans & Advances
4258.500
2677.600

1888.500

Total Current Assets
10231.200
7548.200

5965.600

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
2814.800
2328.700

2082.700

 

Provisions
1189.500
248.200

846.600

Total Current Liabilities
4004.300
2576.900

2929.300

Net Current Assets
6226.900
4971.300

3036.300

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

16239.500

15559.600

12485.600

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2008

31.03.2007

31.03.2006

 

 

 

 

Sales Turnover

19121.300

16013.800

14062.800

Other Income

259.400

385.000

431.600

Total Income

19380.700

16398.800

14494.400

 

 

 

 

Profit/(Loss) Before Tax

3327.600

2224.400

1842.500

Provision for Taxation

312.800

341.600

139.000

Profit/(Loss) After Tax

3014.800

1882.800

1703.500

 

 

 

 

Export Value

4536.500

2855.700

2201.500

 

 

 

 

Import Value

2341.800

2181.400

1746.400

 

 

 

 

Expenditures :

 

 

 

 

Raw Material Consumed

7822.800

6683.800

5325.300

 

Staff cost

2359.900

1857.900

1519.100

 

Research and development expenses

275.900

878.900

639.300

 

Increase/(Decrease) in Finished Goods

23.900

(214.300)

672.200

 

Other Expenditure

4692.800

4154.100

3750.900

 

Distribution Tax

877.800

 

 

Total Expenditure

16053.100

13360.400

11906.800

 

QUARTERLY RESULTS

 

PARTICULARS

 

 

 

30.06.2008

Sales Turnover

 

 

4891.200

Other Income

 

 

01.000

Total Income

 

 

4892.200

Total Expenditure

 

 

1080.400

Operating Profit

 

 

811.800

Interest

 

 

40.900

Gross Profit

 

 

770.900

Depreciation

 

 

194.400

Tax

 

 

67.100

Reported PAT

 

 

509.400

 

KEY RATIOS

 

PARTICULARS

 

31.03.2008

31.03.2007

31.03.2006

Debt Equity Ratio

0.43

0.29

0.36

Long Term Debt Equity Ratio

0.28

0.17

0.18

Current Ratio

1.54

1.39

1.14

TURNOVER RATIOS

 

 

 

Fixed Assets

1.74

1.67

1.83

Inventory

8.34

7.78

6.25

Debtors

7.50

8.42

9.53

Interest Cover Ratio

5.61

6.58

8.02

Operating Profit Margin (%)

23.79

19.53

17.82

Profit Before Interest and Tax Margin (%)

20.26

15.39

13.98

Cash Profit Margin (%)

18.62

15.19

15.16

Adjusted Net Profit Margin (%)

15.09

11.05

11.33

Return on Capital Employed (%)

27.23

20.05

20.39

Return on Net Worth (%)

29.51

19.23

23.79

 

 

LOCAL AGENCY FURTHER INFORMATION

 

History

 

Subject was incorporated in 1947 as Indian Schering as subsidiary of British Schering, UK. In 1957, E Griffith Hughes, of which British Schering was a subsidiary, was taken over by Aspro-Nicholas, UK. The management of the company was acquired by Piramal Enterprises in 1988. 


Subject is a major player in formulations, diagnostics and vitamins in the Indian pharma industry, besides having good export presence. The company is strong in marketing and has many alliances with MNCs to sell their products. It is now also giving more emphasis on R and D. Hence, one can expect sustained healthy growth in the medium-to-long term. 

 
The company has a portfolio of around 160 brands. Recently, it purchased two brands from Hoechst - Omnatax (cefataxim) and Zidime (ceftazidime). Allergan India Limited is 51:49 joint venture company between Allergan Inc., USA and Nicholas Piramal. Further the company has another joint venture company, Boots Piramal Healthcare Private Limited which is 51:49 joint venture between Boots Plc., UK and Nicholas Piramal.

  
The subsidiaries of subject are Nicholas Piramal  Laboratories and Diagnostics Private Limited, Nicholas Piramal - Dr. Phadke Pathology Laboratory and Infertility Center Private Limited, Nicholas Piramal -Dr. Golwilkar Laboratories Private Limited, Nicholas Piramal  Fininvest Private Limited, Nicholas Piramal  Pharma Inc., Piramal International and Nicholas Piramal  Life Science Limited. 

 

Subject had earlier acquired Nicholas Laboratories in 1988, Roche Products in 1993, Boehringer Manheim in 1996 and an R and D unit of Hoechst Marion Rousell in 1998. It has also formed strategic alliances and joint ventures, viz. Scholl Piramal in 1994, Alergan in 1995, Sarabhai Piramal in 1997, Reckitt Piramal in 1998, Solumiks Pirmal in 1998, Boots Piramal in 1999 and Charak Piramal in 1999. 


During 2000-2001, the company through its wholly owned subsidiary, Nicholas Piramal  Fininvest acquired 40% equity stake in Rhone Poulenc India at a price of Rs. 875 per share. Nicholas Piramal  Fininvest made an open offer to public and acquired additional 20% stake in Rhone Poulenc at a price of Rs. 875 per share. Consequent to this, Rhone Poulenc became a subsidiary of Nicholas Piramal  Fininvest and hence a subsidiary of the company. The acquisition has made Subject the second largest Indian pharmaceutical company in terms of marketshare. Also, it has increased the presence in the domestic market. 

 
In an EGM held on 14.06.2001, the shareholders have approved the scheme of arrangement for the merger of Rhone Poulenc, Super Pharma - a distributor company acquired in April 2001 and certain assets and liabilities of Nicholas Piramal  Fininvest with the company. The company has acquired Pharmaceutical Business of ICI India for a consideration of Rs.700.000 Millions including for acquiring the net current assets. 


By a scheme of arrangement between the company and Kojam Finvest Limited (KFL) the company has transferred the investment held by the company in its subsidiary Gujarat Glass Private Limited to KFL. Subject has transferred its investments in Gujarat Glass Private Limited and its subsidiaries w.e.f. 01.07.2004 into a new holding company Kojam Fininvest Limited (Kojam). The shares of Kojam were allotted free-of-cost to shareholders of subject in proportion to their ownership of subject and the allotment ratio was 1:4. 


The year 2003 was significant for subject since in that year Global Bulk Drugs and Fine Chemicals Limited(GBDFC) was amalgamated with the company. GBDFC manufactures  APIs, Intermediates and Formulations for the regulated markets and also its plant near Hyderabad has accreditations and approvals from USFDA,MCA of UK,TGA of Australia, European Drug Authorities and Canadian Drug Autorities. The plant also has ISO 14000 and 9001 certifications. 

 
In January 2005 the company sub-divided its equity share face value from Rs.10/- per share to Rs.2/- per share. Further in July 2005 the company came out with a rights issue of equity shares for its shareholders in the ratio of 1:10. During 2004-05 the company has acquired the Inhalation Anaesthetics Business of Rhodia Organique fine Limited w.e.f. 11.01.2005 for a consideration of Rs.579.800 million. Further the company has discontinued Roche Diagnostics's distribution for a consideration of $22 Million. The company has also continued focus to reduce domestic low-value Vitamin A, API and Generic Sales. 


In 2006, The company has increased its installed Capacities Liguids 14613.2 KLs to 14744 KLs, Bulk Drugs and Intermediates 733 MT to 920 MT and Vitamin A in Various Forms and Combinations 77.7 MMU to 92.00 MMU. 

 
The company has acquired Avecia Pharmaceuticals, UK and Torcan Chemical Chemical Limited, Canada for a consideration of GBP 11.800 Million. The company exited from the Joint Venture Dr- Golwilkar Laboratories Private Limited. The company has received a consideration of Rs.52.500 Million for their 70% stake in company. The company was successfully commenced commercial dispatches of products against its initial two custom manufacturing contracts, (i.e) the contracts with advanced Medical Optics, Inc. and Allergan Inc.

 

OPERATIONS REVIEW: 

 
 Total Operating income for the year grew 17.8% to Rs 19.3 billion compared with Rs. 16.4 billion for the year ended 31 March 2007. Operating Profit (OPBIDTA) grew 36.6% to Rs.4.1 billion.

 
 Profit After Tax grew by 60.1% to Rs. 3.0 billion compared to Rs. 1.9 billion for the previous year. Earnings per share for the year was Rs. 14.3 per share vs. Rs. 8.9 in FY2007. 

 

SUBSIDIARY COMPANIES: 


 Piramal Diagnostic Services Private Limited (PDSL): 

 

They are aggressively building up this business. During the year they acquired 16 new laboratories and completed a three-way merger between Rana Diagnostics, Dr. Phadke's Laboratories and PDSL. PDSL also received during the year the prestigious certification from College of American Pathologists (CAP). The company can now take on pathology work related to Clinical Research Organisations. 

 
 The Total Operating Income for Pathlabs grew by 71.8% from Rs. 695.0000 million in FY2007 to Rs. 1.2 billion in FY2008. Operating Profit for the year was up by 112.5% to Rs 251.200 million from Rs. 118.200 million in FY2007. Acquisition of new labs and setting up Greenfield facilities have resulted in higher interest costs and depreciation. 

 
 NPIL Pharmaceuticals (UK) Limited: 

 

Starting from this year, they have increased their focus on improving profitability in this business. The net sales for FY2008 for NPIL Pharmaceuticals (UK) Limited grew by 14.3% to Rs. 7.2 billion as against Rs. 6.3 billion for FY07. Operating profit for the year was up by 23.8% to Rs. 876.300 million as compared to an operating profit of Rs. 707.900 million in FY07. They have incurred one-time exceptional charge of Rs. 341.800 million during the year. As a result, PAT for the year was lower at 365.200 million, as compared to Rs. 515.000 million FY07. 

 
 Torcan Chemical Limited: 


 
 Adverse movement of Canadian Dollar against the US Dollar has significantly affected Torcan's performance this year. Canadian Dollar had appreciated by 11% during the year. As a result, Net Sales for FY08 for Torcan was lower at Rs. 917.000 million as compared to Rs. 1.1 billion for FY07, Operating loss for the year was Rs. 9.20 million as compared to the operating profit of Rs. 106.100 million for FY07 and Net Loss for the year was Rs.68.200 million as compared to Net Profit of Rs. 65.200 million for FY07. They are now utilizing their Ennore facilities to complement Torcan's offerings and to make it more competitive. 

 
The Central Government has granted exemption under section 212(8) of the Companies Act 1956, from attaching to the Balance Sheet of the Company, the Accounts and other documents of its subsidiaries. However, the Consolidated Financial Statements of the Company, which include the results of the said subsidiaries, are included in this Annual Report, Further, a statement containing the particulars prescribed under the terms of the said exemption for each of the Company's subsidiaries is also enclosed. Copies of the audited annual accounts of the Company's subsidiaries, can also be sought by any investor of the Company or its subsidiaries on making a written request to the Company Secretary at the registered office of the Company in this regard. The Annual Accounts of the subsidiary companies are also available for inspection for any investor at the Company's and/or concerned subsidiaries' registered office. 

 
 JOINT VENTURES: 

 
 Allergan India Limited ('AIL'): 

 
 AIL is a 51:49 Joint Venture between Allergan Inc., USA and Piramal Healthcare Limited. Net Sales of AIL grew by 19.0% to Rs. 913.300 million (FY2007 Net Sales: 767.1 million) PBIDT for FY2008 was up by 102% to Rs.211.700 million as compared to Rs.104.600 million in FY2007. Profit after tax for FY2008 was up by 150.0% to Rs. 109.800 million as compared to Rs.43.900 million for FY2007. 

 

Joint venture with ARKRAY Inc., Japan:

 

During the year, they have entered into a 49:51 Joint Venture with Kyoto, Japan based ARKRAY, Inc. to market Diagnostic products, mainly Self Monitoring Blood Glucose System in the Indian Market. ARKRAY, Inc. is a market leader in the self-monitoring blood glucose market in Japan with a dominant market share. Under the agreement, PHL has transferred all its existing Blood Glucose Monitoring Business into the JV for a consideration of Rs. 40.000 million. The JV will market these products and will also launch other blood glucose -monitoring systems of ARKRAY, Inc. including new products in India.  

 
 INDUSTRY OUTLOOK: 

 
The domestic pharmaceutical market continued to grow well as a result of rising income levels. As per ORG-IMS MAT March, the growth for the year was 14.8%. Chronic therapies continue to grow faster than acute. The year has seen players making investment in field-force to tap the rural markets. No major price increases were seen during the year, instead the focus has been on penetrating the markets. 


 The Global Custom Manufacturing market continued to show good growth. Increased acceptance of Indian companies as manufacturing partners has resulted in higher growth. Larger pharmaceutical companies are now increasingly looking at outsourcing their manufacturing operations; faced by rising cost-pressures and patent expiry of blockbuster drugs. The year also marked the entrance of some Indian companies in the custom manufacturing business. However, custom manufacturing market is large and growing. The lead-times are also longer in this business which create a significant entry barrier. 

 

 

Management Discussion & Analysis: 

 
FY2008 : (Consolidated) at a glance:

 

Summary - consolidated:

 

·         Total Operating Income : Rs. 28.7 billion

·         Operating Profit : Rs.5.4 billion

·         Net Profit : Rs.3.3 billion

·         Gross margins (sales less material costs): From 64.4% to 62.0% in FY08

·         R&D spend : From 5.1% to 2.8% in FY08

·         OPM (Operating Profit Margin) : From 15.5% to 18.9% in FY08

·         PAT (Profit After Tax) : From 8.8% to 11.6% in FY08 

 

Revenue and Profit - consolidated: 

 
 Net Sales growth : 16.2%Healthcare Solutions growth : 11.7%(Domestic branded formulations)Pharma Solutions (CMG) Sales growth : 18.9%Operating Profit growth : 41.3%Net Profit growth : 53.1% 

 
 Operations highlights - consolidated: 

 
 Healthcare Solutions: 

 


 
 Pharma Solutions (Custom Manufacturing) Sales: 

 

 
 Allied Businesses: 

 

 

 

 

 

Fixed Assets :-

·         Intangible assets

·         Brand / Know- How/ Intellectual Property Rights

·         Computer software

·         Tangible assets

·         Land leasehold

·         Land freehold

·         Building

·         Plant and machinery

·         Furniture and fixtures and office equipments

·         Motor vehicle / transport

 

AS PER WEBSITE

 

Profile

 

Subject is one of India's largest companies with an unmatched record of managing JVs/Alliances/Partnerships, and a proven commitment to IPR. With strong brand management and sales capabilities, a US FDA site-approved plant for on-and-off patent APIs and Intermediates, Basic Research, Process Innovation, Custom Chemical Synthesis, Formulations R and D, NDDS, and a world-class, accredited Clinical Research Organisation, NPIL is poised to emerge as India's pharma powerhouse.

 

With growth fuelled through a strategy of partnerships, quality acquisitions, brand building, focused selling and manufacturing the Company consolidated net sales turnover was US$ 313 million (INR 14.1 billion) in 2005-06 (April to March)".

 

The Company has emerged among the leaders in Indian pharma with a unique mix of inorganic and organic growth fuelled through a strategy of acquisitions, brand building and focused selling, and manufacturing. The company has one of the widest product portfolios in India, spanning nine key therapeutic areas, including the Cardio-vascular, Neuro-psychiatry, Oncology, Diabetes Management, Respiratory, Anti-infectives, Gastro-intestinals, Dermatology and NSAIDS.


The company was formed when the Piramal Group acquired Nicholas Laboratories, a small formulations company in 1988 from Sara Lee. It has followed a multi-pronged strategy to integrate and maximize synergies with the planned acquisitions and develop and consolidate its major strength in marketing to therapeutic niches.

Managed by a team of highly proficient industry professionals, the Company 's key strengths come from its strong brand building, selling and distribution, manufacturing and alliance/partnership management skills. The last, especially, are quite unique in the Indian context - few Indian Pharmaceutical have exhibited such a strong and consistent record in successfully and ethically managing JVs/Alliances and Partnerships as NPIL has.


Its policy of respecting IPR and managing partnerships, in keeping with both the letter and the spirit of written agreements, has been widely respected and commended by its partners.


The Company is the flagship company of the Rs. 25000 Millions (US $ 550 million) Piramal Enterprises (PEL), one of India's largest diversified business houses.

           

PRESS RELEASE

 

Piramal Healthcare reports Q1FY2009 results;

 

~ Consolidated Revenues up for the Quarter by 17% to Rs. 7.1 billion, Operating Profit up by 42% to Rs. 1.2 billion, Net Profit up by 57% to Rs. 681 million  ~

 

Mumbai, July 24  2008: Piramal Healthcare Limited (PHL, earlier Nicholas Piramal India Limited) (NSE: PIRHEALTH, BSE: 500302) today reported first quarter (Q1) results for FY2009.


Total Operating Income on consolidated basis for the quarter ended 30 June 2008 was up by 16.5% to Rs. 7.1 billion over Q1FY08. Operating Profit increased by 42.2% to Rs. 1.2 billion, Operating Profit Margin for the quarter was up from 13.8% in Q1FY08 to 16.9% in Q1FY09. Net Profit for the quarter was up by 56.9% to Rs. 681.000 million. Earnings Per Share (EPS) for the quarter was up by 58.9% to Rs. 3.3 as compared to Rs. 2.1 for Q1FY08.


The above results have been considered after providing for Rs.208.200 million towards mark-to-market unrealized loss on outstanding foreign currency borrowing, and realized forex loss of Rs. 21.400 million. Excluding the provision for this unrealized loss, the Company has recorded significant growth in profitability, registering an Operating Profit Margin of 19.8% for the quarter as compared to 13.8% for Q1FY08. 


During the quarter, the Healthcare Solutions (Domestic Formulations) division reported strong growth of 20.4%, with Revenues of Rs.3.5 billion. PHL grew particularly well in the Cardio-Vascular, Dermatology, Anti-infectives and Respiratory therapy segments. 


The Company’s Pharma Solutions (Custom Manufacturing) division grew by 14.2% to Rs.2.3 billion during Q1FY2009. Pharma Solutions Revenues from facilities in India grew during Q1FY2009 by 115% to Rs. 588.900 million, compared to Rs. 274.000 million in Q1FY2009. 


PHL also continues to expand its footprint in the Diagnostic Services business - Piramal Diagnostic Services (earlier known as Wellspring). Revenues from this business were up by 60.8% to Rs. 404.900 million as compared to Rs. 251.900 million for Q1FY2008. During the quarter, Piramal Diagnostic Services introduced Asia’s first high definition PET/CT Scanner to diagnose disease more accurately at an early stage.

 

Piramal Healthcare launches

 

French dermo-cosmetic range from Pierre Fabre

 

~ Ducray range to re-define care for Indian skin ~

 

Mumbai, July 22  2008: Piramal Healthcare Limited, one of India’s largest pharmaceutical & healthcare companies and the Pierre Fabre Group, the second largest pharmaceutical group privately owned in France, have jointly launched a new dermo-cosmetic range, “DUCRAY”. Three sub-ranges of products have been launched, namely, Ducray Hair Care, Ducray Skin Care & A-Derma. Ducray Hair Care focuses on scalp and hair care solutions, Ducray Skin Care focuses on skin comfort and A-Derma focuses on irritated and sensitive skins.


The Ducray range offers a complete package of products specially designed to suit Indian skin and hair. The A-Derma range contains Rhéalba® Oat, which soothes irritated skin. Rhealba® Oat patented extract is a result of several years of research and rigorous selection of the active ingredient. It has anti-inflammatory, skin-healing, moisturizing, film-forming and anti-free radical properties. A-Derma has notably designed Exoméga, to treat skin atopy, as well as Epithéliale, to promote cutaneous repair in the case of damaged skin. The Sensiphase line provides immediate relief to sensitive or irritated skin.


Underlining the need for quality dermo-cosmetics in India, Dr. Swati Piramal, Director – Strategic Alliances & Communications, Piramal Healthcare Limited, said, “Each of us in the Piramal community is perceived to be at the cutting edge of knowledge and concepts in our area of operation or expertise, and to demonstrate an innovative, creative approach and ingenuity in everything we do. At Piramal we believe that we should care for the world we share and serve. We recognize that there is a large presence of customers with an in-depth understanding of their skin and high expectations from their cosmetic products. With the Ducray launch, we are ensuring that the quality and the essence of our tradition and values are maintained by offering superior quality and well-researched products to our clientele. Our association with the Pierre Fabre Group goes back a long way. With the Ducray launch, we are confident of creating a niche in dermo-cosmetics in India.”


Commenting on the launch, Mr. Roberto Bottino, General Manager, Pierre Fabre, said, “For over forty years, we have placed our trust in research. Since 1965, Pierre Fabre’s dermo-cosmetic division has not stopped growing. Ducray is the result of in-depth research and a keenness to provide quality products to our consumers worldwide. Ducray Hair Care specializes in shampoos and hair treatments. Ducray Skin Care has been specially developed to care for extreme skin dryness through the use of a skin emollient, Ictyan. A-Derma soothes and comforts irritated skin.” 


“We are glad to be associated with Piramal Healthcare, one of the leading pharmaceutical and healthcare companies in India for our dermo-cosmetic range”, added Pierre Behnam, Country Head for Pierre Fabre.


The entire range of products has been meticulously researched and developed to ensure that Ducray is the optimal solution to today’s hair & skin needs. Priced between Rs. 300 and Rs. 500, Ducray products will be available on dermatologists’ recommendation and at all organized chemist stores across India.

 

 

 

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 identifor the year 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.43.23

UK Pound

1

Rs.80.89

Euro

1

Rs.63.80

 

 

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

8

--PROFITABILIRY

1~10

8

--LIQUIDITY

1~10

8

--LEVERAGE

1~10

8

--RESERVES

1~10

8

--CREDIT LINES

1~10

9

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

73

 

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

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions