MIRA
INFORM REPORT
|
Report Date : |
16.12.2008 |
IDENTIFICATION
DETAILS
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Name : |
ALEMBIC LIMITED |
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Registered Office : |
Alembic Road,
Baroda – 390 003, Gujarat |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
30.07.1907 |
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Com. Reg. No.: |
04-33 |
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CIN No.: [Company
Identification No.] |
L26100GJ1907PLC000033 |
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IEC No.: |
0888002351 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BRDA00819A |
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PAN No.: [Permanent
Account No.] |
AABCA7950P |
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Legal Form : |
Public Limited
Liability Company. The company's shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacture and sell bulk drugs and pharmaceutical
formulations in human and animal healthcare. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 17000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a
well-established and reputed company having fine track. Available information
indicates high financial responsibility of the company. Trade relations are fair.
Payments are correct and as per commitments. The company can
be considered good for any normal business dealings. It can be regarded as a
promising business partner in medium to long run. |
LOCATIONS
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Registered Office : |
Alembic Road,
Baroda – 390 003, Gujarat |
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Tel. No.: |
91-265-2284074 /
75 / 2280550 / 2280880 / 3053333 |
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Fax No.: |
91-265-2280331/2228293/2281229 |
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E-Mail : |
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Website : |
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Factory 1 : |
Alembic Road,
Vadodara- 390 003, Gujarat, India |
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Factory 2 : |
Panpharm
(Formulation Division), Panelav, Taluka Halol, District Panchmahals – 389
350, Gujarat, India |
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Factory 3 : |
Plot No. 21, 22, EPIP – Phase I Jharmajri, Baddi, Tehsil – Nalagarh,
District Solan, Himachal Pradesh, India |
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Factory 4 : |
Village Karakhadi, Taluka: Padra, Distict Vadodara |
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Registered and
Transfer Agent : |
M/s. Intime Spectrum Registry Limited 1st Floor, 308, Jaldhara Complex, Opp. Manisha Society, off
Old Padra Road, Vasna Road, Vadodara – 390015 |
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Tel No.: |
91- 265- 2250241/ 3249857 |
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Email : |
DIRECTORS
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Name : |
Mr. Chirayu R. Amin |
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Designation : |
Chairman & Managing Director |
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Address : |
F-10/192, Race Course Circle, Vadodara – 390 007, Gujarat, India |
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Date of
Birth/Age : |
58 Years |
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Qualification
: |
B. Sc., MBA |
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Experience : |
32 Years |
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Date of
Appointment : |
01.05.1983 |
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Name : |
Mrs. Malika C. Amin |
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Designation : |
Whole Time Director |
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Address : |
F-10/192, Race Course Circle, Vadodara – 390 007, Gujarat, India |
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Date of
Birth/Age : |
50 Years |
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Qualification
: |
M.A. |
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Experience : |
20 Years |
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Date of
Appointment : |
02.07.1988 |
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Name : |
Dr. Babubhai R. Patel |
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Designation : |
Director |
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Address : |
Opposite Brahman Sabha Hall, Pradap Road, Vadodara – 390 001,
Gujarat, India |
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Date of
Birth/Age : |
75 Years |
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Qualification
: |
M.A., MRCP EDIN. |
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Experience : |
45 Years |
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Name : |
Mr. Ranjitbhai R. Patel |
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Designation : |
Director |
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Address : |
“Shivam”, Old Padra Road, Vadodara – 390 015, Gujarat, India |
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Date of
Birth/Age : |
84 Years |
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Qualification
: |
B. Com. |
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Experience : |
42 Years |
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Name : |
Mr. Rajkumar Baheti |
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Designation : |
Director & Company Secretary |
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Address : |
Arihant Flats, 2nd Floor, 27, Sevaknagar, Vadodara – 390
007, Gujarat, India |
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Date of
Birth/Age : |
45 Years |
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Qualification
: |
B. Com., ACA, FCS |
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Experience : |
24 Years |
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Name : |
Mr. Ramanlal M. Kapadia |
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Designation : |
Director |
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Address : |
49/50, Marti Mandir Society, Iskon Temple Road, Vadodara – 390 007,
Gujarat, India |
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Date of
Birth/Age : |
69 Years |
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Qualification
: |
M. Com. LLB., DTP, FICWA, FCS, AIMA.DM |
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Experience : |
44 Years |
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Name : |
Mr. Pranav N. Parikh |
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Designation : |
Director |
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Address : |
Laxmi Mills Estate, D. Moses Road, Mahalaxmi, Mumbai – 400 011,
Maharashtra, India |
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Date of
Birth/Age : |
62 Years |
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Qualification
: |
B. Com., Bus. Admn. |
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Experience : |
37 Years |
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Name : |
Mr. K. G. Ramanathan |
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Designation : |
Director |
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Address : |
192, Jolly Maker 3, 119, Cuffe Parade, Mumbai – 400 005, Maharashtra,
India |
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Date of Birth/Age
: |
66 Years |
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Qualification
: |
P G (Physics) & IAS |
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Experience : |
42 Years |
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Name : |
Mr. Paresh Saraiya |
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Designation : |
Director |
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Date of
Appointment : |
31.01.2007 |
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Name : |
Mr. Pranav Amin |
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Designation : |
Director |
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Date of
Appointment : |
31.01.2007 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 31.03.2008:-
|
Category
of Shareholder |
No. of Shares |
Percentage of
Holding |
|
Promoters and Associates |
84753005 |
61.21 |
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Mutual Funds and UTI |
10194802 |
7.36 |
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Banks, Financial Institutions and Insurance Companies |
1597180 |
1.15 |
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Foreign Institutional Investors |
9641153 |
6.96 |
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Private Corporate Bodies |
2699019 |
1.95 |
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Indian Public |
29137986 |
21.06 |
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NRIs/ OCBs |
431760 |
0.31 |
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Total |
138454905 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacture and sell bulk drugs and pharmaceutical formulations
in human and animal healthcare. |
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Products : |
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Exports : |
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Countries : |
Albania, Algeria, Argentina, Bangladesh,
Bolivia, Brazil, Bulgaria, Cambodia, Canada. Chile, China, Columbia, Costa
Rica, Denmark, Dominican Rep., Egypt, El Salvador, Ethiopia, Georgia,
Germany, Greece, Guatemala, Honduras, Hong Kong, Indonesia, Iran, Israel,
Italy, Jamaica, Jordan, Kenya, Lesotho, Madagascar, Malawi, Malaysia,
Maldives, Mali, Mauritius, Mexico, Moldavia, Morocco, Mozambique, Myanmar,
The Netherlands, Nicaragua, Nigeria, North Korea, Oman, Pakistan, Paraguay,
Peru, Philippines, Poland, Portugal, Russian Fed., Saudi Arabia, Singapore,
South Korea, Spain, Sri Lanka, Sudan, Swaziland, Switzerland, Taiwan,
Tanzania, Thailand, Trinidad, Tobago, Turkey, Uganda, Ukraine, United
Kingdom, Uruguay, USA, United Arab Emirates, Uzbekistan, Venezuela, Vietnam,
White Russia, Yemen, Zambia and Zimbabwe |
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Imports : |
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Products : |
Drugs, Pharmaceuticals, Chemicals And Drug
Intermediates |
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Countries : |
China, Japan, Germany, USA, Italy, Spain,
UK, Australia, etc. |
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Terms : |
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Selling : |
L/C or Credit (90 days) terms |
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Purchasing : |
L/C or Credit (90 to 120 days) terms |
PRODUCTION STATUS(As on 31.03.2008):- (Rs. In Millions)
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Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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Bulk Drugs and Chemical and Intermediates |
MMU |
# |
208.091 |
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MT |
(#) |
(77.014) |
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Formulations: |
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a) Tablets and
capsules |
Million Nos. |
4653.000 |
1712.488 |
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b) Injectables |
Million Nos. |
*** |
71.565 |
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c) Oral
Preparation and Ointments |
M.T. |
10182616 |
5604.360 |
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Others: |
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Electric Power
Generation |
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- Wind Mill |
|
5.00 |
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- Co-Generation
Plant @ |
|
12.60 |
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M.W. |
17.60 |
** |
* Including production on loan licence basis, captive consumption, samples
and purchases of finished products.
** Entire generation of electricity is for captive consumption only.
# Installed
Capacity: The Installed capacity is flexible as the plant is versatile .enabling
the Company to produce in different capacity and therefore, it varies depending
upon the product programme.
@ The Company has
filed necessary Memorandum with Secretariate of Industrial Approval for
generating electricity.
*** Entire production is on loan license basis.
GENERAL
INFORMATION
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No. of Employees : |
4058 |
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Bankers : |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
K. S. Aiyar and
Company Chartered
Accountants |
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Address : |
Laxmi Estate No. F – 07/08, Shakti Mills Lane, off Dr. E. Moses Road,
Mahalaxmi, Mumbai - 400011 |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
AS ON 31.03.2008
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
225000000 |
Equity Shares |
Rs. 2/- each |
Rs.450.000 Millions |
|
500000 |
Redeemable
Cumulative Preference Shares |
Rs. 100/- each |
Rs. 50.000 Millions |
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TOTAL |
|
Rs.500.000
Millions |
Issued, Subscribed Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
138464270 |
Equity Shares |
Rs. 2/- each |
Rs.276.929
Millions |
Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
138454905 |
Equity Shares |
Rs. 2/- each |
Rs.276.910
Millions |
|
Add: 9365 |
Forfeited Equity Shares |
Rs. 2/- each |
Rs. 0.009
Million |
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Total : |
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Rs.276.919 Millions |
Of the above:
1. 639300 Equity
Shares of Rs. 2/- each (Previous Year 639300 Equity Shares of Rs. 2/- each)
have been allotted as fully paid up pursuant to contract without payment being received
in cash.
2. 92036620 Equity
Shares of Rs. 2/- each (Previous Year 92036620 Equity Shares of Rs. 2/- each)
have been allotted as fully paid up Bonus Shares by Capitalisation of Rs. 0.700
Million from Share Premium Account, Rs. 168.350 Millions from Capital
Redemption Reserve and Rs. 15.023 Millions from General Reserve.
3. 3345450 and
Equity shares of Rs. 2/- each (Previous Year 3345450 and 724240 of Rs. 2/-
each) fully paid, were alloted to the 72440 Shareholders of erstwhile Neomer
Limited, and Darshak Limited, respectively, pursuant to the Scheme of
amalgamation/merger without payment being received in cash.
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS
FUNDS |
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1] Share Capital |
276.919 |
276.919 |
276.900 |
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2] Share
Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves &
Surplus |
3136.735 |
3572.264 |
3085.400 |
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4] (Accumulated
Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH
|
3413.654 |
3849.183 |
3362.300 |
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LOAN FUNDS |
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|
1] Secured Loans |
2775.469 |
2079.663 |
1424.300 |
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2] Unsecured
Loans |
1459.212 |
1274.127 |
373.100 |
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TOTAL BORROWING
|
4234.681 |
3353.790 |
1797.400 |
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DEFERRED TAX
LIABILITIES |
0.000 |
397.802 |
0.000 |
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TOTAL
|
7648.335 |
7600.775 |
5159.700 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
|
3666.210 |
3054.445 |
3139.600 |
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Capital work-in-progress
|
219.556 |
512.144 |
18.000 |
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INVESTMENT
|
140.580 |
208.105 |
241.900 |
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DEFERREX TAX ASSETS
|
48.276 |
0.000 |
0.000 |
|
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|
4074.622 |
3774.694 |
3399.5 |
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CURRENT ASSETS, LOANS & ADVANCES
|
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Inventories
|
2028.120
|
1230.918
|
1403.300
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Sundry Debtors
|
2305.394
|
1659.261
|
1517.500
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Cash & Bank Balances
|
186.564
|
1517.067
|
8.800
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Loans & Advances
|
863.780
|
670.221
|
722.400
|
Total Current Assets
|
5383.858
|
5077.467
|
3652.000
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Less : CURRENT LIABILITIES & PROVISIONS
|
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Current Liabilities
|
1521.857
|
1084.349
|
1572.400
|
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Provisions
|
288.288
|
167.037
|
319.400
|
Total Current Liabilities
|
1810.145
|
1251.386
|
1891.800
|
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Net Current Assets
|
3573.713
|
3826.081
|
1760.200
|
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MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
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TOTAL
|
7648.335 |
7600.775 |
5159.700 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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Sales Turnover |
10032.493 |
7006.624 |
6388.482 |
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Other Income |
117.591 |
89.071 |
126.219 |
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Total Income |
10150.084 |
7095.695 |
6514.701 |
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Profit/(Loss) Before Tax |
1136.034 |
705.888 |
834.964 |
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Provision for Taxation |
14.109 |
[0.929] |
49.747 |
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Profit/(Loss) After Tax |
1121.925 |
706.817 |
785.217 |
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Earnings in Foreign Currency : |
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Export Earnings |
NA |
1495.319 |
1304.175 |
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Interest |
NA |
8.833 |
9.975 |
|
Total Earnings |
NA |
1504.152 |
1314.150 |
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Imports : |
|
|
|
|
|
|
Raw Materials |
NA |
655.327 |
648.209 |
|
|
Stores & Spares |
NA |
15.637 |
27.511 |
|
|
Capital Goods |
NA |
65.970 |
48.545 |
|
Total Imports |
NA |
736.934 |
724.265 |
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Expenditures : |
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|
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|
Material Consumption |
3301.183 |
2126.123 |
2241.344 |
|
|
Purchase of Finished Goods |
1722.803 |
846.524 |
761.958 |
|
|
Excise Duty |
88.064 |
60.301 |
79.668 |
|
|
Manufacturing Expenses |
711.202 |
533.034 |
531.916 |
|
|
Employee’s Expenses |
976.185 |
707.557 |
655.491 |
|
|
Research and Development Expenses |
433.885 |
227.576 |
198.889 |
|
|
Marketing and Distribution Expenses |
797.147 |
626.224 |
558.610 |
|
|
Interest |
330.543 |
75.161 |
86.659 |
|
|
Depreciation |
327.672 |
290.611 |
287.569 |
|
|
Others |
325.366 |
518.045 |
487.031 |
|
Total Expenditure |
9014.050 |
6011.156 |
5889.135 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2008 |
30.09.2008 |
|
Type |
|
1st Quarter |
2nd Quarter |
|
Sales Turnover |
|
2262.800 |
3446.800 |
|
Other Income |
|
14.300 |
16.700 |
|
Total Income |
|
2277.100 |
3463.500 |
|
Total Expenditure |
|
2145.000 |
3079.300 |
|
Operating Profit |
|
132.100 |
384.200 |
|
Interest |
|
96.300 |
121.500 |
|
Gross Profit |
|
35.800 |
262.700 |
|
Depreciation |
|
89.000 |
98.300 |
|
Tax |
|
(6.200) |
9.900 |
|
Reported PAT |
|
(47.000) |
150.400 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
PAT / Total Income |
(%) |
11.05
|
09.96 |
12.05 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
11.32
|
10.07 |
13.06 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
12.01
|
07.97 |
11.84 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.33
|
0.18 |
0.24 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.77
|
0.19 |
1.09 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.97
|
4.05 |
1.93 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
One of the oldest pharmaceutical companies in India, Alembic
formerly known as Alembic Chemical Works Company has was founded in 1907. It
manufactures pharmaceuticals and chemicals, bulk drugs (penicillin and other
antibiotics) and formulations.
In 1995, the veterinary division of the company was tied up with the animal
health division of Hindustan Ciba-Giegy to export eight veterinary products to
Ciba (Bangladesh). In 1998-99, the installation work of Cephalosporin-C
recovery plant has been completed and that of 7-ACA was commissioned in
Oct.'00.
The Bulk Drug unit of Darshak Limited was amalgamated with the company with the
approval of High court of Gujarat and the legal formalities was also completed
w.e.f. 16.09.2002. As per the scheme, the shareholders of Darshak Limited was
allotted shares in the ratio of 6 shares of Alembic for every 100 shares of
Darshak Limited The company has got the ISO-9002 and ISO-14001 certification
during 2002-03.
Alembic has finalised a major business restructuring plan under which it will
create a new divison for cardiovascular and diabetic drugs while hiving of some
odd brands into a franchisee company for their marketing. The company has
introduced novel anti diabetic product Nateglinide in the brand name of NATELIDE.
The company plans to set up R and D Centre at Vadodara covering 7500 square
metres. The facility would consist of Chemistry, Analytical and Biological
Laboratories. In order to make more significant in Generic market and also to
make it US FDA qualified the company made a investment at its Panelav plant.
This facility is expected to be inspected in the first quarter of 2004.
During March 2004 the company has issued bonus equity shares to its
shareholders in the ratio of 2:1. The company has increased the installed
capacity of Tablets and Capsules and Oral Preparation and Ointments by 900
Million Nos and 3528 MT respectively during the year 2004-05 and with this
expansion the total installed capacity of Tablets and Capsules and Oral
Preparation and Ointments has increased to 4058 Million Nos and 9462.616 MT
respectively.
During 2004-05 the company has launched 23 new products including line
extensions to expand its product portfolio. Further the company has launched
ZERO a new generation, no calories, Sucralose Based Sugar Substitute which gave
entry for the company into the high-growth lifestyle OTC product segment.
The company has set up a formulation manufacturing facility at Baddi in
Himachal Pradesh with a capital investment of Rs.280 Millions spread over 19000
sq. mtrs and the plant has 900 million tablets and 600 million liquid oral
bottles production capacity annually. Further the company has invested Rs.216
Millions for a new 120000 sq.ft R and D facility.
In 2006, The Company has increased the installed capacity of
Tablets and Capsules and Oral Preparation and Ointments by 595 Million Nos and
720 MT respectively during the year 2005-06 and with this expansion the total
installed capacity of Tablets and Capsules and Oral Preparation and Ointments
has increased to 4653 Million Nos and 10182.616 MT respectively.
Operations:
The Company's Gross Sales including export incentives were Rs.10270.000
Millions for the year ended 31st March, 2008 as compared to Rs.7220.000
Millions for the previous year, which shows a growth of 42% over previous year.
The Profit before Interest, Depreciation, Non-recurring Income and Expenses and
Taxes was Rs.1568.700 Millions for the year under review as compared to
Rs.1247.600 Millions for the previous year, which shows a growth of 26%.
During the year, the interest and financing cost was Rs.330.500 Millions as
compared to Rs.75.200 Millions in previous year due to funding of acquisition
of Non-Oncology business of Dabur Pharma Limited and higher working capital on
account of business growth.
Domestic Formulation Sales:
Sales of Domestic formulations for the year ended 31st March, 2008 is
Rs.5977.400 Millions as compared to Rs.4917.400 Millions for the previous year
ended on 31st March, 2007, and reported a growth of 22%.
This was largely due to sales of acquired brands. New brands contributed 16% of
revenue.
Export Formulations:
The sales of formulations export was Rs.1165.2 Millions for the year ended 31st
March, 2008 as compared to Rs.615.000 Millions in the previous year ended
March, 2007, registering a growth of 89% over previous year. The above sales
includes sales to Regulatory Market for Rs.698.6 Millions for the year ended
31st March, 2008 as compared to Rs.220.700 Millions in previous year ended on
31st March, 2007.
Domestic API Sales:
The domestic sales of API was Rs.1124.700 Millions for the year ended on 31st
March, 2008 as compared to Rs.724.400 Millions for the previous year ended on
31st March, 2007, and reported a growth of 55%.
Export API:
The export sales of API was Rs.1795.000 Millions for the year ended on 31st
March, 2008 as compared to Rs.768.0 Millions for the previous year and reported
a growth of 134%. The above sales includes sales to Regulatory Market for Rs.1191.600
Millions for the year ended 31st March, 2008 as compared to Rs.278.000 Millions
in previous year ended on 31st March, 2007.
Non-Oncology business acquired from
Dabur:
The entire Non-Oncology domestic formulation business acquired from Dabur
Pharma Limited is in the high growth lifestyle therapeutic segments of
Cardiology, Diabetology and Gynaecology. The Company has created a new
Marketing arm named 'Summit' to cater to the needs of these specialty segments
of customers. Some brands have been put into various other large divisions of
the Company for better penetration in the market.
Acquisition of API manufacturing facility from Nirayu Private Limited:
The Company acquired the API manufacturing facility of Nirayu Private Limited.
This unit is located at Panelav, very close to Company's existing plants and
will be used by the Company to increase its API business and regulatory
filings.
This acquisition is on a 'going concern' basis together with the assets and
liabilities on the effective date (i.e. 1/1/2008) at a total consideration of
Rs. 17.50 Crores. It is a USFDA approvable facility.
Approval of the petition of the Company
by Hon'ble High Court of Gujarat:
The petition filed by the Company under Section 78 and 100 to 103 of the
Companies Act, 1956 seeking conformation for utilisation of share premium and
General reserve account by withdrawal and transfer to Profit and Loss Account
of the Company for year ending 31st March, 2008 has been approved by the
Hon'ble Gujarat High Court.
As per the said order, amount of Rs.291.700 Millions from share premium account
and amount of Rs.1025.800 Millions from General reserve account both
aggregating to Rs.1317.500 Millions have been reduced and credited to Profit and
Loss Account. The Intangible Assets of Rs.1768.200 Millions less deferred tax
adjustment of Rs.450.7 Millions i.e. net of Rs.1317.500 Millions have been
debited to Profit and Loss Account.
Centenary Celebrations:
To commemorate its Centenary, the Company celebrated the 'Foundation Week' from
March 28, 2008 to March 31, 2008. As a part of the celebrations, a blood
donation camp, tree plantations, cultural programmes, a 100 year photography
exhibition, a musical evening by noted Ghazal singer Padmabhushan Jagjit Singh
were organised by the Company.
On the occasion of the centenary celebrations, Dr. A.P.J. Abdul Kalam, former
President of India was the Chief Guest and Mr. Narendra Modi, Chief Minister
was the Guest of Honour.
Speaking on the occasion, Mr. Narendra Modi profusely complimented the Chairman
and his family members for 100 successful years of service to humanity by
producing and marketing quality drugs at affordable price.
In his key note address Dr. Kalam expressed his vision of making India the hub
for scientific research and pharmaceutical manufacturing. He asked the Indian
Pharma Industry to set itself a target of producing 40% of the world's generic
medicines. He also touched upon various opportunities to Indian Pharma Industry
in collaborative research with National Research Laboratories for curing
diseases like TB, Typhoid, Malaria etc.
Dr. Kalam and Mr. Modi released a set of two books on the 100 year journey of
the Company.
The Company grew by 42% to achieve a consolidated revenue of
Rs.102661.000 Millions and profit after tax of Rs.1121.900 Millions in its
centenary year.
India is poised for sustained GDP growth of over 8% p.a. in the next few years.
It is expected to emerge as the fastest growing economy by 2013 and to be the
3rd largest economy by 2050 (Source: BRICs Report, Goldman Sachs). The GDP
growth will be driven by both investments and domestic consumption.
The current spending on healthcare [public and private] is estimated at 6% of
GDP and expected to increase to 10% of GDP by 2016. The current size of the
Indian Pharmaceutical Market is reported to be USD 7 billion and has registered
a growth of about 12% in 2007 (IMS MAT Dec 2007). The market is expected to
witness accelerating growth, making India among the top ten global markets by
2015-16, with estimated market size of USD 20 billion. The market remains
dominated by acute therapies; however chronic segments such as Cardio Vascular,
Diabetes, Central Nervous System and specialty segments like Oncology are
growing faster than the market.
India is also emerging as a low-cost, high quality option for outsourcing of
research, manufacturing and other services. This offers a great opportunity for
the Indian Pharmaceutical Industry and Indian pharma Companies. The Country is
on its way to become one of the top global supplier for formulations and bulk
drugs, and a hub for Contract Research And Manufacturing (CRAM), Contract
Research Organisations (CRO) and RandD activities.
The Global Pharmaceutical Industry is witnessing a growing importance of
generics. With USD 10 billion worth of drugs going off patent each year,
generics represent a major outsourcing opportunity for pharmaceutical producers
in India. The global pharmaceutical outsourcing market is rapidly growing. This
represents an opportunity for supply of API's / intermediates, development
outsourcing (pre-clinical / clinical trials) and customs chemistry
services.
Business:
Alembic's strategy in the international business is to be a preferred supply
chain partner to international generic as well as Multinational Companies. They
have invested in a state-of-the-art research center, have an FDA approved API
and Formulations facility. They have filed 21 DMFs already and hope to file
about 10 every year on. Their ANDA program is also in place and have already
filed 11 ANDAs. They have a plan to file 12-15 ANDAs this year onwards.
The Company is actively targeting contract manufacturing for Innovator MNCs.
This is an attractive area and they are working on a tie-up with one of the
larger Pharmaceutical Companies for contract manufacturing of an intermediate.
Typically these relations take a long time to build and is something that they
can leverage for future business as well. The formal contract agreement is
likely to be signed in first quarter of FY09. The business is expected to cross
$ 25 million p.a.
During the year, the Company restarted the production of Penicillin at its
fermentation facility at Vadodara. The Company has also focused on cost
reduction through technology upgradation as well as efficiency in operations to
stay competitive in the long run for this commodity product.
Finance:
The Company has registered a total income of Rs.10150.100 Millions for the year
under review as compared to Rs.7095.700 Millions for the previous year ended on
31st March, 2007. The profit, before providing for Interest, Depreciation,
Non-recurring Income, Expenses and Taxes, was Rs.1568.7 Millions for the year
under review as compared to Rs.1247.600 Millions for the previous year. The
Company has made a profit after tax of Rs.1121.900 Millions for the year under
review, as compared to Rs.706.800 Millions for the previous year.
Outlook:
The future looks exciting and will be a period of sustained growth. The Indian
Economy has been growing as never before and this has significantly improved
the GDP and consumption levels. What this means for the domestic pharmaceutical
industry is that more customers are entering organised healthcare as they can
afford more medicines. This is very important and advantageous for a Company
like Alembic which has the domain strength in the acute therapy segments since
this would be the first line of defence. Alembic has also forayed into the
lifestyle disease segment through the acquisition of Dabur's Non-Oncology
Division. It is also looking at various other high growth and niche areas in
the domestic segment. Alembic has had a history of having a very good equity
with the doctors and has successfully built up a lot of large brands.
With India becoming a hub for manufacturing and research operations, Alembic
looks to get exponential growth from this area as well. Their manufacturing
facilities have withstood successful inspections from regulatory bodies from all
over the world and their research labs are well equipped to develop new
products and formulations. Low cost of products and strong Intellectual
Property are going to be the two most important drivers in the International
Generics Markets. Alembic has strived to show excellence in both these areas in
development as well as manufacturing. It is a focused approach on these two
which will give Alembic's Future plans a fillip.
Operations:
The Company's gross sales including export incentives were Rs.7220
Millions for the year ended 31st March, 2007 as compared to Rs.6660 Millions
for the previous year, which reflects a growth of 8% over the previous
year.
The Profit before interest, depreciation, non-recurring expenses and taxes was
Rs.1247.600 Millions for the year under review as compared to Rs.1209.200
Millions for the previous year.
During the year, the interest and financing cost has been Rs.75.200 Millions as
compared to Rs.86.700 Millions in the previous year due to better financial
management.
Domestic Formulation Sales:
Sales of domestic formulations for the year ended 31st
March, 2007 is Rs.4917.400 Millions as compared to Rs.4564.200 Millions for the
previous year ended 31st March, 2006, registering a growth of 8%.
This was due to improved performance of existing brands and introduction of new
brands. New brands contributed 10% of revenue.
Acquisition
of Non-Oncology Business of M/s. Dabur Pharma:
The Company signed a Business Transfer Agreement with Dabur Pharma
Limited on 31st January, 2007 for purchase of their entire non-oncology
domestic formulation business w.e.f 1st April, 2007.
The purchase was completed on 1st April, 2007, and the full consideration of
Rs. 1590 Millions paid. The Company has commenced the business in its name and
the financial results of the acquisition will get reflected in the Company's
result from 1st April, 2007.
Brands acquired from Dabur Pharma Limited are in the high growth lifestyle
therapeutic segments of Cardiology, Diabetology and Gynaecology. The Company
has created a new marketing arm named 'Summit' to cater to the needs of
customers belonging to these speciality segments. The Company is already the
largest player in the Macrolides (Anti-infective) segment of drugs in India and
is now primed to increase market share in the lifestyle segments.
Sub Division of Shares:
During the course of the year the Company split the face
value of equity shares from Rs.10/- per share to Rs.2/- per share.
Accordingly 138454905 equity shares of Rs.2/- each were issued to each of
Company's shareholders holding equity shares of Rs.10/- each on record date of
4th October, 2006.
ONGC
Gas Matter:
The members will be pleased to know that the long standing
litigation with ONGC has been finally and fully settled. The detailed note in
this respect has been provided in Para 4 of Schedule T regarding Notes forming
parts of Accounts.
Management
Discussion and Analysis:
Currently, the Indian pharma industry is a $10 billion
industry, growing at a rate of 8-9% annually. The Indian pharmaceutical
industry ranks 4th in terms of volume and 13th in terms of value and around 8%
of the world's drugs are manufactured in India.
Following the de-licensing of the pharmaceutical industry, industrial licensing
for most of the drugs and pharmaceutical products has been done away with. The
pharmaceutical industry, with its rich scientific talents and research
capabilities, supported by Intellectual Property Protection regime is well set
to take on the international market.
Until India's commitment to the World Trade Organisation's (WTO) Intellectual
property rights in 1995, Indian pharma companies could sell imitations of
global pharma drugs in the Indian market. So as a new molecule was globally launched,
Indian pharma companies would merely copy the molecule and introduce it in the
domestic market. Consequently, a plethora of pharma companies would market the
same product in India, under different brand names.
Strengths:
Low cost:
Indian manufacturers are one of the lowest cost producers of
drugs in the world.
Strong technical skills:
Indians possess excellent chemistry and process
re-engineering skills.
Large untapped market:
India with a population of over a billion is a largely untapped
market. The penetration of modern medicine is less then 30 % in India.
Huge market for lifestyle drugs:
Changing lifestyles in urban and rural centres.
Legal and Financial framework:
Solid legal frame work and strong financial markets.
Weakness:
Poor R and D expenditure:
Compared to global pharmaceutical industry, Indian R and D
expenditure is still minuscule, which could have a negative effect in the long
run.
Price regulation:
The Indian Pharma companies are marred by the price
regulation.
Low entry barriers:
Due to very low barriers to entry, Indian pharma industry is
highly fragmented.
Opportunities:
Off-patent
drugs:
Large number of drugs is going off-patent in Europe and US between
2005 and 2009. This offers a big opportunity for the Indian companies to
capture this market.
Expansion:
Opening up of health insurance sector and expected growth in per-capita income
are key growth drivers from a long term perspective.
Outsourcing:
Being the lowest cost producer combined with FDA approved
plants, Indian companies can become global outsourcing hubs for pharmaceutical
products.
Threats:
Transition from process patent to product patent:
This is the major threat to Indian pharma industry.
Other low cost countries:
Threats from other low cost countries like China and Israel
exist.
Increase in crude oil price:
This would affect bulk drug units due to increase in prices
of solvents and energy cost.
Critical Business Factors:
Given the multitude of companies in the Indian market, a
whole range of factors come into play in determining relative competitive
position. Four of these stand out: research expertise, reengineered
manufacturing process, optimised product mix and dynamic marketing and
distribution setup.
Consumption
per unit of Production:
In view of the number of products with different sizes,
shapes and other parameters being manufactured by the Company, it is not
feasible to give information on consumption of fuel per unit of production.
BIODATA
Subject is one of the India's
most experienced manufactures of bulk drugs and pharmaceuticals formulation in
human and animal healthcare. They are the first pharmaceutical company in India
to cross 100 years of operations. They are in the business of improving the
quality of life and healthcare in over 75 countries around the world.
The company is a ISO-9002 and ISO-14001 certified company with manufacturing
practices and facilities that conform to WHO-GMP guidelines. They manufacture
pharmaceuticals and chemicals, bulk drugs (penicillin and other antibiotics)
and formulations. They are having their manufacturing facilities at Vadodara in
Gujarat and Solan in Himachal Pradesh.
Alembic Ltd was incorporated in the year 1907 with the name
Alembic Chemical Works Company Limited in Vadodara to manufacture tinctures and
alcohol. They Started to manufacture cough syrup, vitamins, tonics and sulphur
durgs in the year 1940. In the year 1961, they inaugrated the Pencillin Palnt.
In the year 1968, they started to manufacture Streptomycin.
In the 1971, they manufactured Erythromycin using expertise from Eli Lilly, USA
and in the year 1972, they launched Althrocin, a brand of Erythromycin. In the
year 1997, Althrocin become top selling brand in India. In the year 2001, they
started to manufacture Cephalosporin C. In June 2001, the company formed a
wholly owned subsidiary company named Alembic Europe Private Limited in
UK.
In the year 2005, the company has launched ZERO, a new generation, no calories,
Sucralose Based Sugar Substitute which gave entry for the company into the
high-growth lifestyle OTC product segment. In May 2005, the generic alliances
and API division were merged to form an independent SBU.
The company has set up a formulation manufacturing facility at Baddi in
Himachal Pradesh with a production capacity 900 million tablets and 600 million
liquid oral bottles annually. During the year 2005-06, the company has
increased the installed capacity of Tablets & Capsules and Oral Preparation
& Ointments by 595 Million Nos and 720 MT respectively.
During the year 2005-06, the company acquired API Plant at Karakhadi in
Vadodara. In the year 2007, the company acquired the Non-Oncology Business of
Dabur Pharma Ltd. Also in the same year, they entered into a licensing
agreement for its Novel Drug Delivery Platform for Keppra XR with UCB Belgium.
During the year 2007-08, the company acquired the API manufacturing facility of
Nirayu Pvt Ltd at Panelav near Vododara.
Fixed Assets
- Freehold Land
- Leasehold Land
- Buildings
- Employees Quarters
- Plant and Machinery
- R and D Equipment
- Furniture and Fixtures
- Office Machinery
- Vehicles
Intangible Assets
- (Trade Mark)
The company is in trade terms with:
v Alex Packaging Limited
v Steelart Engineering Private Limited
v J K
Melt Products Private Limited
v Rushabh Industries
v Shreyas Chemical
v Swan Sales Corporation
v Surat Ammonia Supply Company
v Conserve Watercare Private Limited
v Dinesh Pharmaceuticals Private Limited
v Desai Enterprises
v M. Apotheke Private Limited
v Ven-Petrochem and Pharma (India) Private
Limited
v Shree Ajitnath Caps.
v S R Enterprise
The company is
negotiating with leading generic manufacturers to join them as associate
suppliers.
As a part of its
plan to foray into the multimillion dollar generic market, the company has
decided to double the capacity of its formulation plant from 30 m to 60 m solid
oral dosages in the first phase and in the second phase, the formulation plant
technology would be upgraded to match the European Union standards set by
Medicine Control Centre and Medicine Control Agency in UK and Therapeutic Goods
Agency in Australia.
AS PER WEBSITE
Company Profile
Subject
is the flagship company of the Alembic Group. Corporate office and
manufacturing unit are located in the heart of Baroda City amidst green
ambience, 400 kms north of Mumbai. The sprawling Alembic complex is spread over
a land area of around 300,000 square meter with built-up area of 90,000 square
meter. Having been awarded the prestigious
ISO-9002 and ISO-14001 Certification for manufacturing and marketing of
active pharmaceutical ingredients and finished dosage forms for domestic and
international markets, Alembic Limited is well-equipped with WHO-GMP accredited production facility. This
speaks of its total commitment to quality and continuous improvement in its
product and services.
Milestone
1907 Alembic Chemical Works Company Limited is started, primarily engaged in the manufacture of
Tinctures and Alchohol at Baroda.
1909 French Distillery plant for pharmaceutical
purposes installed at Baroda.
1940 Started manufacturing Alembics famous Cough
syrup, Vitamins, Tonics and Sulphur Drugs.
1945 Alembic Glass · 1952 Research and Development
activity begins
1961 The Late Shri Lal Bahadur Shastri, former
Prime Minister of India, inaugurates the Penicillin Plant.
1962 Shreno (M/C & EQUIP MFG)
1967 Bulk Manufacturing of Vitamin B12 by
fermentation starts off using know-how from Pierell Company, Italy.
1968 Streptomycin was
formulated for the first time
1969 Paushak (Phosgene Chemicals)
1971 Erythromycin was manufactured for the first
time using expertise from Eli Lilli-USA.
1972 Launched a brand of Erythromycin-
"Althrocin"
A landmark accomplishment of manufacturing Kanamycin by
fermentation. Alembic enjoys the status of being the only basic manufacturer of
this product in India, under the guidance of MEIJI SEIJA, Japan.
1975 Started the manufacturing of Erythromycin and its Derivatives. ·
1975 Our R&D facilities were approved by DSIR, GOI.
1983 Started the large-scale production of 6-APA
using immobilized enzymes.
1985 Entry made into Specialty Chemicals
1992 Received First Chemexcil Award Roxythromycin
Bulk Production Commercialized
1994 Azithromycin Bulk Production Commercialized
1997 Clarithromycin Bulk Production Commercialized Launched Roxid
Liquid- The first of its kind in the world · 1997 Set up a new Facility for
Synthetic Organic API's.
Received award for "Excellence in Environment Preservation and Pollution
Control" by the Federation of Gujarat Industries (FGI)
1998 Launched Azithral Liquid- The first of its
kind in the world
1999 Achieved ISO 9002 Certification for its
Manufacturing Facility in Baroda.
2000 Achieved ISO 14001 Certification for its
Manufacturing Facility in Baroda.
Shri Suresh Prabhu- Union Minister For chemicals and
Fertilizers, GOI inaugurates the Cephalsoporin-C Facility by
Launched the Generic Division.
2001 CO'S ( Certificate of Suitablity ) issued
by EDQM for Roxithromycin.
Launched Cephalsoporin Bulk Active.
PRESS
RELEASE
Alembic Ltd.
Q3 FY08 Sales at Rs 2650.000 millions up 39 %
PAT at Rs 420.000 millions up 67%
Editors Synopsis
• Sales for Q3 FY08 grew
by 39% to Rs 2650.000 millions
• Net Profit for Q3 FY08
at Rs 420.000 millions grew by 67 %
• Nine months Sales up by
37% at Rs 7590.000 millions
• Nine months Net Profit
up 62% to Rs 970.000 millions
• Net profit includes
profit on sale of land Rs. 225.500 millions
• R & D expense for
the quarter at Rs. 112.000 millions up by 65%
• R & D expense for
nine months at Rs. 336.700 millions up by 87%
• Exports to regulated
market for the Q3 Rs. 590.000 millions(PY – 110.000 millions)
• Exports to regulated
market for nine months Rs. 1170.000 millions (PY – 380.000 millions)
• Acquired API
manufacturing unit for Rs. 175.000 millions w.e.f 1st January 2008
for accelerated DMF filling programme
Alembic Limited reported a net profit of Rs 420.000 millions
for the quarter ended December 31, 2007, a jump of 67 % as against Rs 250.000
millions posted in the same period of last fiscal. This includes Profit on sale
of surplus land amounting to Rs. 225.500 millions.
Sales for the third quarter stood at Rs 2650.000 millions, a
growth of 39 % as compared to Rs 1910.000 millions in the third quarter of the
corresponding previous year. Earnings per Share (EPS) for Q3 FY - 08 worked out
to Rs 3.04 as compared to Rs 1.81 in Q3 FY - 07.
Sales for the nine months ended December 31, 2007 grew by 37 % to
Rs 7590.000 millions compared to Rs 5520.000 millions in the year-ago period,
while net profit for the nine-months period to December 31, 2007 rose by 62 %
to Rs 970.000 millions, as against Rs 600.0000 millions posted in same period
of last fiscal.
The Company’s sales to regulated markets in the quarter was
significantly higher at Rs. 590.000 millions against Rs. 110.000 millions in
corresponding quarter for the previous year.
The Company’s API
facility was successfully re-inspected by USFDA. The Company’s formulation
facility at Panelav also got successfully inspected by USFDA.
Q3 FY2008
compared to Q3 FY2007
Summary of total revenue is as under:
[Rs. in millions]
|
Particulars |
Quarter
ended on 31.12.2007 |
Corresponding
quarter ended on 31.12.2006 |
Change
for quarter (%) |
year
ended on 31.03.2007 |
|
Formulation |
|
|
|
|
|
Domestic |
1521.200 |
1298.500 |
17% |
4917.400 |
|
Export |
144.400 |
132.200 |
9% |
394.300 |
|
Export (regulated) |
260.900 |
45.700 |
471% |
220.700 |
|
|
|
|
|
|
|
API |
|
|
|
|
|
Domestic |
215.100 |
219.700 |
-2% |
724.400 |
|
Export |
137.700 |
134.600 |
2% |
447.700 |
|
Export (regulated) |
329.900 |
62.900 |
424% |
320.300 |
|
R and D income / Export Incentives |
43.400 |
19.700 |
120% |
193.500 |
|
Grand
Total |
2652.600 |
1913.300 |
39% |
7218.300 |
Earnings per Share (EPS) for nine months period to December 31, 2007
worked out to Rs. 7 as compared to Rs. 4.31 for the same period last fiscal.
The Profit break-up is as under:
[Rs.
in millions]
|
|
Quarter
ended on 31.12.2007 |
Corresponding
quarter ended on 31.12.2006 |
Change
for quarter (%) |
year
ended on 31.03.2007 |
|
Operating Income |
366.300 |
349.800 |
5% |
1247.600 |
|
Profit Before Tax |
424.200 |
243.500 |
74% |
705.900 |
|
Net Profit after Tax |
420.200 |
251.000 |
67% |
706.800 |
With effect from 1st January, 2008 Alembic has acquired
API manufacturing unit for its regulatory fillings for a consideration of Rs.
175.000 millions.
About Alembic Limited
Established in 1907, Rs. 10000.000 millions Vadodara
(Gujarat, India) based Alembic Ltd. is a leading pharmaceutical company in
India. The company is vertically integrated with the ability to develop,
manufacture and market pharmaceutical products, pharmaceutical substances and
Intermediates. Alembic is the market leader in Macrolides segment of
anti-infective drugs in India. ‘Zero’ (sugar free), Glycodin (cough syrup) and
Althrocin (Erythromycin) Azithral (Azithromycin), Wikoryl, Roxid are some of
the leading brands for the company. Alembic entered the lifestyle therapeutic
segment with the acquisition of Dabur’s Non Oncology Business in April 2007.
For Further Details Contact:
Sonia Kulkarni/ Noumaan Qureshi
Adfactors PR, Mumbai
9820184099/ 9892392572
sonia@adfactorspr.com/ noumaan@adfactorspr.com
Alembic
acquires API manufacturing Unit
Alembic
Limited has acquired the API manufacturing facility of Nirayu Private Limited.
This unit is located on the outskirts of Vadodara and will be used by Alembic
to increase its API business and regulatory filings.
This
acquisition is on a going concern basis together with the assets (including all
rights, privileges, and benefits of use and exploitation of Designs and full
power and authority in respect of the Technology, Know-how, Licenses,
Franchises, Business & Marketing Information, Current Assets and Continuing
Employees etc) and liabilities on the effective date (i.e. 1/1/2008) at a total
consideration of Rs.175 Millions. It is a USFDA approvable facility.
Alembic Limited Q1
Results
Revenues up 17% at
Rs 1780 Millions; PBIDTA up 50% at
320 Millions PBT up 23% at Rs
170 Millions
Performance
Highlights
• Total revenue up
by 17% at Rs 1779.500 Millions
• PBIDTA up by 50%
to Rs. 324.200 Millions
• Profit Before
Tax up by 23% to Rs 174 Millions
Mumbai, July 18, 2007: Alembic Limited, the
pharmaceutical major, today reported a rise of 17% in revenues to Rs 1779.500 Millions for the first quarter ended 30th
June 2007, compared to Rs 1521.200 Millions in
the corresponding quarter previous year. The company’s Profit before tax was up
23% to Rs 174 Millions from Rs 141.700 Millions.
Domestic
Formulation Business:
Domestic
Formulation business grew by 16% to Rs 1123.500
Millions from Rs 970.200 Millions in
the corresponding quarter previous year largely on account of acquired business
from Dabur Pharma. Brands like Ulgel grew by 39%, Azithral achieved growth of
33%. Hermin became number 2 brand with market share of 18%. Rekool became
largest brand in its category.
During the quarter
company launched new division called “MAXIS” with primary objective to enhance rural
coverage. The division will try to increase representation with general
practitioners. The division will also help other divisions to focus more on
active life cycle brands.
International API
and Generics Business:
Sales in regulated
market grew by 29% and stood at 128.200 Millions
against 99.500 Millions in corresponding
quarter last year.
Company had
earlier announced a licensing agreement for its Novel Drug Delivery Platform
for Keppra® XR (Levetiracetam Extended Release Tablets) with UCB.
Under the terms of
the agreement, the Company has received part of the milestone payment which is
accounted in this quarter.
Land Sale:
The Company has
signed a MOU with Inorbit Malls (India) Private Limited (a K. Raheja group
Company) for sale of land subject to the clearance of title by purchaser’s
solicitors. The sale will be recorded in the financial results at the time of
execution of conveyance.
Q1 FY2008 compared
to Q1 FY2007
Summary of total
revenue is as under:
[Rs in Millions]
|
Particulars |
Quarter ended on 30-06-2007 |
Corresponding quarter ended on 30-06-3006 |
Change for Quarter (%) |
Year ended on 31-03-2007 |
|
Formulation - Domestic - Export - Export
(regulated) |
1123.500 79.000 44.900 |
970.200 69.100 108.700 |
16% 14% (-)59% |
4917.400 394.300 220.700 |
|
API - Domestic - Export - Export
(regulated) |
262.500 41.300 128.200 |
160.500 80.100 99.500 |
64% (-)48% 29% |
724.400 447.700 320.300 |
|
R & D income
/ Export Incentives |
100.100 |
33.100 |
202% |
193.500 |
|
Grand Total |
1779.500 |
1521.200 |
17 % |
7218.300 |
The Profit
break-up is as under:
[Rs in Millions]
|
Particulars |
Quarter ended on 30-06-2007 |
Corresponding quarter ended on 30-06-3006 |
Change for Quarter (%) |
Year ended on 31-03-2006 |
|
Operating Income |
324.200 |
215.700 |
50 % |
1247.600 |
|
Profit Before Tax |
174.000 |
141.700 |
23 % |
705.900 |
|
Net Profit after Tax |
170.400 |
182.500 |
[-]7 % |
706.800 |
About
Alembic Limited
Established
in 1907, the over Rs 7000 Millions Vadodara (Gujarat, India) based Alembic
Limited is a leading pharmaceutical company in India. The company is vertically
integrated with the ability to develop, manufacture and market pharmaceutical
products, pharmaceutical substances and Intermediates. Alembic is the market
leader in Macrolides segment of anti-infective drugs in India. ‘Zero’ (sugar
free), Glycodin (cough syrup) and Althrocin (Erythromycin ) Azithral
(Azithromycin), Wikoryl, Roxid are some of the leading brands for the company.
Alembic entered the lifestyle therapeutic segment with the acquisition of
Dabur’s Non Oncology Business in April 2007.
Alembic’s
manufacturing facilities are located in Vadodara and Panelav in Gujarat and
Baddi in Himachal Pradesh. The plant at Vadodara has the largest fermentation
capacity in India. The Panelav facility houses both API (USFDA approved) and
formulation manufacturing (to undertake US FDA inspection shortly) plants. The
plant at Baddi, Himachal Pradesh manufactures formulations for the domestic and
export market. The company has a state of the art Research Centre - (ARC) at
Vadodara, to build its strength in chemistry and capitalize for the CRAMS
business.
For
the financial year ending 31st March 2007, the company clocked revenues of Rs
7220 Millions, with a PAT of Rs 710 Millions. Domestic business contributed
about 78% of revenues, while exports were at 22%. The Company has been ranked
14th in the domestic formulation market with a market share of approx 2%
(ORG-MARG – May 2007).
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.47.94 |
|
UK Pound |
1 |
Rs.72.07 |
|
Euro |
1 |
Rs.64.70 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--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 |
|
66 |
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 |
|