MIRA
INFORM REPORT
|
Report Date : |
31.01.2008 |
IDENTIFICATION
DETAILS
|
Name : |
ALKEM
LABORATORIES LIMITED |
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Registered Office : |
Exhibition Road, Patna
– 800 001, Bihar |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
08.08.1973 |
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Com. Reg. No.: |
03 -1031 |
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CIN No.: [Company
Identification No.] |
U00305MH1973PLC174201 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
PTNA00241D |
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Legal Form : |
A Closely held
Public Limited Liability Company. |
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Line of Business : |
Manufacturer of Cifotaxime
Sodium Sterile, Ciprofloxacin Hydrochloride, Norfloxacin Hydrochloride. |
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 |
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Maximum Credit Limit : |
USD 30000000 |
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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 pharmaceutical company. Available information indicates high
financial responsibility of the company.
Their trade relations are reported as fair. Financial
position of the company is good.
Payments are slow to local suppliers. The company can
be considered normal for business dealings at usual trade terms and
conditions. |
LOCATIONS
|
Registered Office : |
Exhibition Road,
Patna – 800 001, Bihar, India |
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Tel. No.: |
91-612-2221988 /
2939, 2683640, 3200020 |
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Fax No.: |
91-612-2237441 |
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E-Mail : |
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Website : |
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Corporate Office : |
Alkem House, Devashish Adjavent to Matuya Centre, Senapati Bapat Marg,
Lower Parel, Mumbai – 400013, Maharashtra, India |
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Tel. No.: |
91-22-39829999 |
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Email: |
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Head Office : |
Phoenix House, 3rd
Floor, A-Wing, 462 Senapati Bapat Marg, Mumbai – 400 013, Maharashtra, India. |
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Tel. No.: |
91-22-24952851-52/24938443 |
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Fax No.: |
91-22-24952955 |
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E-Mail : |
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Websites : |
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Factory 1 : |
C 6/1, MIDC Industrial Estate, Taloja, District Raigad, Maharashtra, India |
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Factory 2 : |
N. H. No. 8, Village Naugama, Jhagadia, District – Bharuch, Gujarat, India |
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Factory 3: |
333/1, Kachigam, Daman, India |
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Factory 4: |
167/2, Amaliya, Dabhel, Daman, India |
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Factory 5: |
289/290, GIDC, Ankleshwar , District – Bharuch, Gujarat , India |
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Factory 6: |
167/1, Amaliya, Dabhel , Daman, India |
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Factory 7: |
Village Thane – Baddi, Th- Nalagarh, Dist – Solan, Himachal Pradesh, India |
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Depots : |
Ø Mumbai, Maharashtra, India Ø Patna, Bihar, India Ø Kolkata, West Bengal, India Ø Cuttack, Assam Ø Gauhati, Assam Ø Lucknow, Uttar Pradesh, India Ø New Delhi, India |
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C & F Agents : |
Located At : Ø Hyderabad, Andhra Pradesh, India Ø Chennai, Tamilnadu, India Ø Cochin, Kerala, India Ø Bangalore, Karnataka, India Ø Indore, Madhya Pradesh, India Ø Jabalpur, Madhya Pradesh, India Ø Ahmedabad, Gujarat, India Ø Nagpur, Maharashtra, India Ø Jalgaon, Maharashtra, India Ø Pune, Maharashtra, India Ø Jaipur, Rajasthan, India |
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Other Offices : |
Laxmi Insurance Building, 5th Floor, Sir P. M.
Road, Fort, Mumbai – 400 001, Maharashtra, India |
DIRECTORS
|
Name : |
Mr. Samprada
Singh |
|
Designation : |
Whole Time
Director cum Chairman |
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Address : |
Buddha Colony,
Boring Canal Road, Patna- 800 001, Bihar, India |
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Date of Birth/Age : |
02.05.1930 |
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Date of Appointment : |
08.08.1973 |
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Name : |
Mr. Basudeo
Narain Singh |
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Designation : |
Managing Director
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Address : |
Buddha Colony,
Boring Canal Road, Patna- 800 001, Bihar, India |
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Date of Birth/Age : |
20.11.1940 |
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Date of Appointment : |
08.08.1973 |
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Name : |
Mr. Prabhat
Narain Singh |
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Designation : |
Director |
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Address : |
103, Shriram Place, East Boring Canal Road, Patna- 800 001, Bihar, India |
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Date of Birth/Age : |
13.10.1952 |
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Date of Appointment : |
25.01.1983 |
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Name : |
Mr. Dhananjoy
Kumar Singh |
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Designation : |
Whole Time
Director |
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Address : |
Flat No 16, 16th Floor, Vasudha Apartment, Century Bazar, B
Worlikar Chowk, Mumbai – 400025, Maharashtra, India |
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Date of Birth/Age : |
29.07.1962 |
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Date of Appointment : |
25.10.1988 |
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Name : |
Mr. Balmiki
Prasad Singh |
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Designation : |
Whole Time
Director |
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Address : |
1st Floor, Room No 101, West More II, Pochkhawala Road,
Mumbai – 400018, Maharashtra, India |
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Date of Birth/Age : |
26.12.1954 |
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Date of Appointment : |
25.10.1988 |
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Name : |
Mr. Nawal Kishor
Singh |
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Designation : |
Director |
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Address : |
Buddha Colony,
Boring Canal Road, Patna- 800 001, Bihar, India |
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Date of Birth/Age : |
09.03.1951 |
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Date of Appointment : |
29.09.2001 |
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Name : |
Mr. Anil Kumar Mishra |
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Designation : |
Director |
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Address : |
Leela Sterling, B -404 Yashodham Goregaon Mulund Link Road, Goregaon
(Eats), Mumbai – 400 063, Maharashtra, India |
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Name : |
Mr. Dhananjay Kumar |
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Designation : |
Director |
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Address : |
Budha Colony Boring Canal Road, Patna – 800 001, Bihar, India |
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Date of Birth/Age : |
29.07.1962 |
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Date of Appointment : |
25.10.1988 |
KEY EXECUTIVES
|
Name : |
Mr. Manish Narang |
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Designation : |
Company Secretary |
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Address : |
Flat No. 209, Pocket GH-1, Archana Apartments. Paschim Vihar, New
Delhi – 110063, India |
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Date of Birth/Age : |
31.08.1970 |
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Date of Appointment : |
16.12.2006 |
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Name : |
Mr. C. B. Prasad |
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Designation : |
Company Secretary |
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Address : |
WZ, 46/7, Mukherji Park Extension, Tilak Nagar, New Delhi – 110018,
India |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
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No. of Shares |
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Mr. Sanprada Singh |
|
199700 |
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Mr. Sanprada Singh HUF |
|
7540 |
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Mr. Nawal Kishore Singh |
|
40210 |
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Mrs. Rekha Singh |
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352305 |
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Mrs. Archana Singh |
|
59920 |
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Mrs. Prerna Kumar |
|
98520 |
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Mr. Rajeev Ranjan |
|
3300 |
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Mrs. Anita Singh |
|
118440 |
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Mr. Alok Kumar |
|
78275 |
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Mr. Sinha Braj Nandan |
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61600 |
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Mr. Ashok Kumar Singh |
|
77995 |
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Mr. Balmiki Prasad Singh |
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262510 |
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Mr. Balmiki Prasad ( on Behalf of Sarandhar Singh) |
|
87200 |
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Mr. Balmiki Prasad ( on Behalf of Srinivas Singh) |
|
87200 |
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Mrs. Rinu Sharma |
|
17000 |
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Mrs Neha Singh |
|
17000 |
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Mrs .Shalini Singh |
|
17000 |
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Mr. Tushar Singh |
|
123760 |
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Mr. Basudeo Narain Sing |
|
595995 |
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Mr. Prabhat Narain |
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199800 |
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Mr. Prabhat Narain |
|
7420 |
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Mr. Deepak Kumar Singh |
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80730 |
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Mr. Dhananjoy Kumar Singh |
|
284913 |
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Mr. Kishor Kumar Singh |
|
80450 |
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Mr. Lalan Kumar Singh |
|
150641 |
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Mr. Madan Kumar Singh |
|
106974 |
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Mr. Mritunjay Kumar Singh |
|
284913 |
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Mr. Rajeev Ranjan Singh |
|
182580 |
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Mr. Rajesh Kumar Singh |
|
182840 |
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Mr. Sandeep Singh |
|
159160 |
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Mr. Sarvesh Singh |
|
159160 |
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Mr. Satish Kumar Singh |
|
120860 |
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Mrs. Anju Singh |
|
148110 |
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Mrs. Jayanti Singh |
|
428650 |
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Mrs. Krishna Singh |
|
87540 |
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Mrs. Madhurima Singh |
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145212 |
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Mrs. Manju Singh |
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66230 |
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Mrs. Nanhamati Singh |
|
241390 |
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Mrs. Premlata Singh |
|
50610 |
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Mrs. Rukmini Devi |
|
142385 |
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Mrs. Seema Singh |
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145212 |
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Category |
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Percentage of
Holding |
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Directors or relatives of directors |
|
100.00 % |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of
Cifotaxime Sodium Sterile, Ciprofloxacin Hydrochloride, Norfloxacin
Hydrochloride. |
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Products : |
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Brand Names : |
ALKEM, QUMAX-400,
METRON, and OMEPRAZ |
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Terms : |
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Selling : |
Cash and Credit
basis |
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Purchasing : |
Cash and Credit
basis |
PRODUCTION STATUS (as on 31.03.2006):-
|
Particulars |
Unit |
Installed Capacity (000’s) |
Actual Production (000’s) |
|
Tablets |
Nos. |
3455485 |
1915871 |
|
Capsules |
Nos. |
872260 |
557607 |
|
Dry Syrup |
Bottles |
42570 |
19595 |
|
Liquid Orals |
Bottles |
16650 |
43109 |
|
Injectables |
Vials / Ampoules |
286548 |
119368 |
|
Eye / Ear Drops |
Vials |
NA |
NIL |
|
Bulk Drugs |
Kgs. |
40 |
28 |
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Others |
---- |
NA |
1459 |
GENERAL
INFORMATION
|
Suppliers : |
· A S Vasan and Sons · Accent Microcell Industries · Adit Containers · ABMA Machines · Akruti · Autofits · Cebon India Limited · Intrelec · Jitoo Plastics · Interpack · Jaksons and Company · Govind Enterprises · Air Pac Lamin Air · Baba Enterprises · HBR Packaging · Equichem · Foils Plus · ICM Plastics Limited |
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Customers : |
Wholesalers & Retailers Ø Bombay General Hospital, Mumbai,
Maharashtra, India Ø Kasturba Municipal, Mumbai, Maharashtra,
India Ø Royal Chemists, Mumbai, Maharashtra, India Ø Spensors, Chennai, Tamil Nadu, India Ø Stanly Medical College, Chennai, Tamil
Nadu |
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No. of Employees : |
385 |
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Bankers : |
Ø State Bank of India, Industrial Finance
Branch, Shivsagar Estate, Worli,
Mumbai - 400018 Ø
The Saraswat
Co-operative Bank Limited Ø
Citi Bank N
.A. Ø
Kotak Mahendra
Bank Limited |
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Banking
Relations : |
Good |
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Notes: Overdraft from State Bank of India and Saraswat Co-operative Bank
Limited, are secured against the Fixed deposit placed by the company with the
banks
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Auditors : |
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Name : |
R. S. Sanghai and Associates Chartered
Accountants |
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Address : |
A/403, Rajkamal Heights
Rajkamal Marg, Dr. S Rao Marg, Parel, Mumbai – 400012, Maharashtra, India |
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Associates/Subsidiaries
: |
Nil |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10000000 |
Equity Shares |
Rs. 10/- each |
Rs. 100.000 millions |
Issued, Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5978250 |
Equity Shares |
Rs. 10/- each |
Rs. 59.783 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
119.565 |
59.783 |
59.783 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
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3] Reserves & Surplus |
7030.943 |
5931.806 |
4642.843 |
|
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
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NETWORTH |
7150.508 |
5991.589 |
4702.626 |
|
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LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1676.524 |
1792.816 |
1017.899 |
|
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2] Unsecured Loans |
272.282 |
158.516 |
152.856 |
|
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TOTAL BORROWING |
1948.806 |
1951.332 |
1170.755 |
|
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DEFERRED TAX LIABILITIES |
208.000 |
0.000 |
0.000 |
|
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|
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TOTAL |
9307.314 |
7942.921 |
5873.381 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
3002.077 |
1923.569 |
1303.594 |
|
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Capital work-in-progress |
281.527 |
523.575 |
208.651 |
|
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|
|
|
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INVESTMENT |
1113.617 |
401.742 |
179.698 |
|
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
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|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
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Inventories |
1764.346
|
1546.738
|
998.121 |
|
|
Sundry Debtors |
971.515
|
714.104
|
386.920 |
|
|
Cash & Bank Balances |
2397.197
|
3478.683
|
3295.297 |
|
|
Other Current Assets |
273.815
|
0.000
|
0.000 |
|
|
Loans & Advances |
769.048
|
585.801
|
432.769 |
|
Total
Current Assets |
6175.921
|
6325.326 |
5113.107 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
902.440
|
801.779
|
429.338 |
|
|
Provisions |
363.388
|
429.512
|
502.331 |
|
Total
Current Liabilities |
1265.828
|
1231.291 |
931.669 |
|
|
Net Current Assets |
4910.093
|
5094.035 |
4181.438
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
9307.314 |
7942.921 |
5873.381 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
8950.177 |
7113.979 |
5328.481 |
|
|
Other Income |
423.837 |
474.165 |
325.840 |
|
|
Total Income |
9374.014 |
7588.144 |
5654.321 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
1703.252 |
1730.003 |
1133.579 |
|
|
Provision for Taxation |
262.500 |
345.500 |
162.500 |
|
|
Profit/(Loss) After Tax |
1440.752 |
1384.503 |
971.079 |
|
|
|
|
|
|
|
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Earnings in Foreign Currency : |
|
|
|
|
|
|
Export Earnings |
0.000 |
472.232 |
467.081 |
|
Total Earnings |
0.000 |
472.232 |
467.081 |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Raw Materials |
NA |
143.790 |
176.163 |
|
|
Stores & Spares |
NA |
1.416 |
0.768 |
|
|
Capital Goods |
NA |
131.414 |
43.848 |
|
Total Imports |
NA |
276.620 |
220.779 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Personal Cost |
0.000 |
0.000 |
0.000 |
|
|
Financing Charges |
0.000 |
0.000 |
0.000 |
|
|
Raw Material Consumed |
4334.829 |
2699.012 |
2107.112 |
|
|
Salaries, Wages, Bonus, etc. |
854.344 |
892.259 |
603.075 |
|
|
Managerial Remuneration |
0.000 |
585.508 |
471.989 |
|
|
Payment to Auditors |
0.000 |
35.520 |
31.789 |
|
|
Interest |
53.098 |
1.361 |
1.082 |
|
|
Insurance Expenses |
0.000 |
98.303 |
47.595 |
|
|
Power & Fuel |
0.000 |
19.591 |
19.368 |
|
|
Depreciation & Amortization |
123.449 |
150.782 |
89.846 |
|
|
Other Expenditure |
2305.042 |
1375.805 |
1148.886 |
|
Total Expenditure |
7670.762 |
5858.141 |
4520.742 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
15.36
|
18.25
|
17.17 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
19.03
|
24.32
|
21.27 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
18.00
|
20.97
|
17.67 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.23
|
0.29
|
0.24 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.44
|
0.53
|
0.45 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.87
|
5.14
|
5.49 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Subject was
incorporated on 8th August, 1973 at Patna in Bihar having company
registration number 1031.
Subject was
converted from Private Limited to Deemed Public Limited Company with effect
from June, 1995.
Subject was
promoted by Mr. Samprada Singh.
From a humble
beginning in 1973, subject began its relentless journey and through
identification of healthcare needs for the Indian population chalked out a name
to be reckoned with in the industry in short span of two decades. The first product was Metron, an antiamoebic
which was physically delivered to Chemists and Doctors in Bihar by Mr. Samprada
Singh himself! The company has never
looked back since. Today it has a wide
product range catering to almost all clinical needs, weather it is antibiotics
of antacids, antiulcerants or cardiovascular drugs, antihistamines of
antouberculosis, antianaemic of antiamoebics.
At present, Subject is the fastest growing Pharma company in India and
the company enjoys leadership in Cephalosporins, Synthetic Pencillins,
Quinolones and Health products. It is
ranked amongst the first Five Companies in India.
Subject is in trade terms with:
Ø Lupin Chemicals Limited, Mumbai,
Maharashtra, India
Ø National Organic Chemical Corporation
Limited, Nagpur, Maharashtra, India
Ø E. Merck, Germany
Ø Blue Cross, Switzerland
The company’s fixed asset of important value
include :-
· Land,
· Factory (Building and Building Air-Conditioning),
· Office Building,
· Plant And Machineries,
· Weighing Scales,
· Air-Conditioning Machine,
· Refrigerators,
· Water Coolers,
· Laboratory Equipments (R and D),
· Electrical Equipments,
· Office Equipments,
· Office Building Electrical,
· Typewriters,
· Furniture and Fixtures,
· Motor Car,
· Scooter and Cycle,
· Vehicles,
· Lift And Stackers,
· Power Generating Units,
· Wooden Structures,
· Computer and Softwares,
· Pollution Control Equipments and
· Storage Tanks.
Bankers Charges
Report as per Registry
|
Name of the company |
ALKEM LABORATORIES LIMITED |
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|
Presented By |
State Bank of India, Industrial Finance
Branch, Worli, Mumbai - 400018 |
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|
1) Date and description of instrument creating the change |
Agreement of Loan
for overall limit Agreement of
Hypothecation of Goods and assets Letter regarding
the grant of individual limits within the overall limits All the above agreement
are dated 27.09.2005 and executed for the creation of a single charge. |
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|
2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 710.000
Millions
|
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|
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
A first charge by
way of hypothecation of the borrowers entire goods, movables and other assets
present and future including documents of title to the goods and other assets
such as book debts, outstanding moneys, receivables and cash incentives under
the cash incentive scheme of any other scheme, claims, including duties under
the duty drawback credit scheme or any other scheme, bills, invoice
documents, contracts, insurance polices guarantees engagements, securities
investments and rights uncalled capital and all machinery present and future
of such form satisfactory to the Bank. |
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|
4) Gist of the terms and conditions and extent and operation of the charge. |
ROI Demand cash
credit 0.75 % over SBAR Stand by line of
credit : 1.75 % over SBAR Margin Raw
Materials : 25 % Stocks in process
: 40 % Finished
goods : 25 % Packing materials
: 25 % |
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|
5) Name and Address and description of the person entitled to the charge. |
State Bank of
India, Industrial
Finance Branch, Shivsagar Estate,
Worli, Mumbai – 400018 |
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|
6) Date and brief description of instrument modifying the charge |
Not Applicable |
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|
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
Not Applicable |
|
This form is for |
Modification of
charge |
|
Charge
identification number of the charge to be modified |
90264437 |
|
Corporate
identity number of the company |
U00305BR1973PLC001031 |
|
Name of the company
|
ALKEM
LABORATORIES LIMITED |
|
Address of the
registered office or of the principal place of business in India of the company |
Exhibition Road,
Patna – 800 001, Bihar |
|
Type of charge |
Book debts Others |
|
Particular of
charge holder |
State Bank of
India, Industrial
Finance Branch, Shivasagar
Estate, Worli, Mumbai –
400018 |
|
Nature of
description of the instrument creating or modifying the charge |
Supplemental
agreement of hypothecation of goods and assets for increase in overall limits
Letter regarding
grant of individual limits within the overall limits All the above
agreement constitute a single |
|
Date of
instrument Creating the charge |
22.03.2007 |
|
Amount secured by
the charge |
Rs. 1750.000
Millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of interest As stipulated by Bank
from time to time and as per agreement and as per sanction letter of the bank
Terms of repayment As stipulated by
Bank from time to time and as per agreement and as per sanction letter of the
bank Margin As stipulated by
Bank from time to time and as per agreement and as per sanction letter of the
bank Extent and operation of the charge First charge as
stipulated by Bank form time to time and as per agreement attached and as per
sanction letter of the bank detail of limit are as follows : Demand cash
credit : Rs. 1000 Millions Bank guarantee : Rs. 250.000 Millions =1750.000
millions (sub limit of DCC =EPC / PSC = Rs. 150.000 millions) Letter of Credit
=Rs. 500.000 millions Others As stipulated by Bank
from time to time and as per agreement and as per sanction letter of the bank
|
|
Short particulars
of the property charged |
First charge –
Present and Future Hypothecation of all goods and book debts |
|
Date of latest
modification prior to the present modification |
19.04.2006 |
|
Particulars of
the present modification |
By this
modification limit increased to Rs. 1750.000 Millions continued security as
given by original charge and by modification and all the assets purchased out
of bank finance, terms and conditions as per agreement and as per sanctioned
letter of the bank. |
OTHER INFORMATION:
|
Contingents Liabilities Not Provided For: |
31.03.2006 |
31.03.2005 |
|
|
(Rs.
in millions) |
|
|
Letter of credit
opened by the bank |
183.989 |
121.762 |
|
Outstanding Bank
guarantee |
69.990 |
10.658 |
|
central Excise
Demand disputed in appeal |
39.891 |
27.518 |
|
Income Tax demand
disputed in appeal |
227.100 |
257.119 |
|
Sales tax demand
disputed |
1.352 |
1.359 |
|
Estimated amount
of contracts remaining to be executed on Capital Account (net of advances) |
84.751 |
44.541 |
|
Pending Export
Obligation under advances licence / EPCG Scheme |
30.427 |
0.000 |
|
Total |
637.500 |
462.957 |
Web Details
ATTACHED:
Subject which is
today one of India's top 10 pharmaceutical companies commenced operations in
1973. In last three decades Alkem has taken rapid strides and occupies a pride of
place in the organised Indian pharmaceutical sector. Alkem is marching towards
becoming one of the top 5 Indian pharmaceutical companies. Moreover, Alkem is
also expanding its frontiers globally and is progressing towards becoming a
globally recognised entity through strategic alliances and partnerships with
global pharma majors.
Corporate
Subject is one of
India's top ten pharmaceutical companies with a turnover of US$130 million. The
company is engaged in manufacture and marketing of pharmaceutical formulations
and neutraceuticals. The company is highly respected by the medical profession
and trade.
Alkem's products
are widely prescribed by the medical profession in India and some of the Indian
Pharma industry's top brands are Alkem brands. Taxim (Cefotaxime) Alkem's No.1
brand is amongst top 5 brands of the Indian Pharmaceutical Industry. Several
other Alkem brands feature among the top brands of the industry. Over the last
3 decades Alkem has grown rapidly. The genesis of Alkems growth has been
organic i.e. by building mega brands. This is one of the major areas of core
competence in Alkem. Alkem is very sound on the financial front as well. Alkem
is a zero debt company with substantial reserves which are ploughed back into
future projects. Technically Alkem is among the very best in India. Alkem's
Cephalosporin formulation unit in Daman is approved by UKMHRA for both
injectable as well as orals - a rare achievement. This facility is also approved
by MCC South Africa. By the first quarter of 2005, Alkems manufacturing
facility wherein Cardiovascular products, antidiabetics, NSAIDS and
neuropsychiatry products are produced should also be UKMHRA approved as per
company plans. This is true for Alkem's Blactam facility as well.
Alkems products are
exported to around 40 countries worldwide including regulated European markets.
The company is gearing itself towards obtaining USFDA approval for its
cephalosporin facility by end 2005 to be followed by approvals of other
facilities
Alkem - The Indian Pharma major is rapidly moving towards globalisation.
Philosophy
Alkem was started
with the basic objective of the Chairman Mr. Samprada Singh to serve humankind
with the best possible medical care at affordable prices. Innovation to serve
humanity coupled with a life long commitment to health care professionals forms
the core of ALKEM's business approach.
"ALKEM cares
about life and ALKEM's commitment to life is LIFE LONG".
About the
Entrepreneur
Subject was started
by Mr. Samprada Singh (currently Chairman) around three decades back in 1973 on
the very auspicious day of Dasshera. Today Mr. Samprada Singh is one of the
most respected and successful entrepreneurs of the Indian Pharmaceutical
Industry. The growth of Alkem and the success of Mr. Samprada Singh is most
amazing since Mr. Samprada Singh started this organization from scratch and
through tremendous dynamism, vision and leadership has brought it to the top of
the Indian Pharmaceutical Industry today. To Mr. Samprada Singh goes the major
credit of seeing Alkem through its various stages of progress from the
beginning, till today, when Alkem is a name to reckon with in the Indian
Pharmaceutical Industry.
Mr. Samprada Singh
was born in an agriculturist's family in Bihar. He took active part in India's
struggle for independence and this high level of patriotism made Mr. Samprada
Singh to decide that he will start a business of his own so as to serve his
countrymen. With healthcare being of top importance to every human being Mr.
Samprada Singh selected healthcare and pharmaceuticals as his focus area as an
entrepreneur. In this venture he was joined by his brother Mr. B. N. Singh, a
post graduate in Political Science. Mr. B. N. Singh is currently the Managing
Director of Alkem Laboratories Limited.
From the very early
days of Alkem Laboratories Limited, Mr. Samprada Singh always emphasized the
need for excellence in products, personnel, quality and service. This coupled
with his high managerial competence, leadership, vision and drive for success,
helped him to influence Alkem personnel positively and resulted in a very
competitive and effective Alkem team in all departments. The Singh brothers
have overseen the various stages of Alkem's growth and brought it to this level
of tremendous success.
Mr. Samprada Singh
is an ardent believer in GOP (Getting On with People) through which he has been
able to generate and maintain the enthusiasm of Alkem employees from Senior
management to factory workers. All Alkem employees irrespective of their
position are treated like members of one family. Every Alkemite has tremendous
love and affection for Mr. Samprada Singh and this by itself is a motivating
factor that makes them deliver the best. He treats all employees as family
members with a very personal touch thereby leading to very high commitment
levels across the board.
Alkem’s
Rapid Progress
Alkem has made
rapid progress in the last three decades and today finds itself amongst the top
ten pharma companies in India. Marketing and Finance have been ALKEM's inherent
strengths. ALKEM has a very strong track record of building Mega Brands, Taxim
- Alkem's No.1 brand features among the top 5 brands of the Indian
Pharmaceutical Industry. In the sales year April 2003 to March 2004 ALKEM
recorded a sales of US$22 mio for TAXIM alone. ALKEM has also in its portfolio
other mega brands like TAXIM O (Cefixime), ALCIPRO (Ciprofloxacin), CLAVAM
(Amoxycillin plus Clavulanic Acid), HEMFER (Hematinic), A TO Z (Antioxidant)
etc. ALKEM is one of the top companies in Antibiotics and is number one in
India in Cephalosporin formulations.
In the recent past
Alkem has launched many top potential molecules like Cefipime, Valdecoxib,
Cefpodoxime Proxetil, Piperacillin + Tazobactam, Gatifloxacin and many more.
Alkem is the first Indian company to develop, manufacture and market the
leading anti-cancer drug Anaestrazole. Alkem manufactures the bulk as well as
the formulation of Anaestrazole. This was marketed in India in January, 2004.
In March, 2004, Alkem launched a combination of Cefotaxime plus Sulbactam for
the first time in the world. Very recently Alkem has launched Meropenam with
the brand name ZAXTER, being the first Indian company to do so. The list of
firsts from Alkem will increase in times to come.
With life style
diseases on the increase worldwide and India being no exception, Alkem saw this
as a business opportunity. Alkem has successfully launched two speciality
divisions, Pentacare and Cytomed. Pentacare markets Neuropsychiatry,
Cardiovascular and Anti diabetic products. Cytomed is a dedicated division for
anticancer and HIV products.
Alkem has 6 business
divisions as listed below.
· Main Pharma Division
· Ulticare Division
· Bergen Division
· Pentacare Division
· Cytomed Division
· Generic Division
Of these divisions, main pharma division contributes maximum to the overall
turnover of the company. It is as the name suggests the main division and the
first division of the Alkem. As Alkem expanded rapidly over the years, the need
was felt to have more than one division in order to increase the product
portfolio. Whilst the main pharma division, Ulticare and Bergen Division have
top brands encompassing several therapeutic groups, Pentacare and Cytomed are
speciality divisions. Pentacare focuses on Neuropsychiatry, Cardiovascular and
antidiabetic products. Cytomed is Alkem's speciality oncology division.
Products
Range
|
CEPHALOSPORINS |
|
PRODUCT |
STRENGTH |
BRAND |
|
|
|
|
|
CEFOTAXIME SODIUM
USP VIAL |
250 / 500 / 1g. |
TAXIM |
|
CEFTAZIDIME USP
VIAL |
250 / 500 / 1g. |
TAZID |
|
CEFUROXIME USP
VIAL |
750 / 1500mg |
ZOCEF |
|
CEFTRIAXONE
SODIUM USP VIAL |
250 / 500mg / 1g. |
XONE |
|
CEFAZOLIN SODIUM
USP VIAL |
250mg / 500 mg /
1gm. |
|
|
CEFPIROME INJ. |
1gm. |
FORGEN |
|
CEFPODOXIME
PROXETIL TABS |
100 / 200mg. |
SWICH |
|
CEFPODOXIME
PROXETIL DRY SYRUP |
50mg / 5ml. |
SWICH |
|
CEFADROXYL
DISPERSIBLE TABS |
125 / 250mg. |
CEFKEM |
|
CEFUROXIME AXETIL
USP TABS |
125 / 250 /
500mg. |
ZOCEF |
|
CEFIXIME USP TABS |
100 / 200mg. |
TAXIM O |
|
CEFADROXIL
DISPERSIBLE TABS |
125 / 250 /
500mg. |
CEFOXID |
|
CEPHALEXIN BP
CAPSULES |
250 mg / 500mg. |
CEPHALKEM |
|
CEFIXIME DRY
SYRUP |
50mg / 5ml. |
TAXIM O |
|
CEFADROXYL DRY
SYRUP |
125mg / 5ml. |
CEFOXID |
|
CEPHALEXIN
SUSPENSION |
125mg / 5ml. |
CEPHALKEM |
PENICILLINS
|
PRODUCT |
STRENGTH |
BRAND |
|
|
|
|
|
AMPICILLIN SODIUM
BP VIAL |
100 / 250 / 500mg
/ 1g. |
BROADICILIN |
|
AMPICILLIN +
CLOXACILLIN VIAL |
250 / 500 mg. |
BROADICLOX |
|
AMOXYCILLIN + CLAVULANATE |
150 / 300 / 600mg
/ |
CLAVAM |
|
AMOXICILLIN
SODIUM BP VIAL |
250 / 500mg. |
ALMOX |
|
CLOXACILLIN INJ.
BP |
250 / 500mg /
1gm. |
CLOXAHOLD |
|
AMOXYCILLIN +
CLAVULANATE POT. USP TABS |
375 / 625 /
1000mg. |
CLAVAM |
|
AMOXYCILLIN
DISPERSIBLE TABS |
125mg / 250mg. |
ALMOX DT |
|
AMOXYCILLIN +
LACTOBACILLUS TABS |
125 / 250 /
500mg. |
NODIMOX |
|
AMOXYCILLIN +
CLOXACILLIN + LACTOBACILLUS TABS |
125mg + 125mg. |
|
|
AMPICILLIN
TRIHYDRATE BP CAPS |
250 / 500mg. |
BROADICILIN |
|
AMPICILLIN +
CLOXACILLIN BP CAPS |
250 / 500mg. |
BROADICLOX |
|
AMOXYCILLIN BP
CAPS |
250 / 500mg. |
ALMOX |
|
CLOXACILLIN BP
CAPS |
250 / 500mg. |
ALCLOX |
|
AMPICILLIN USP
DRY SYRUP |
125mg / 5ml, |
- |
|
AMOXYCILLIN
USP DRY SYRUP |
125mg
/ 5ml, |
- |
|
AMOXYCILLIN
+ CLAVULANATE POT. USP DRY SYRUP |
125+31.25mg
/ 5ml. |
CLAVAM |
|
|
200+28.5mg
/ 5ml. |
|
|
CLOXACILLIN
BP DRY SYRUP |
125
mg / 5ml. |
|
International
Business
Alkem began its exports
operations in 1994, having identified this as one of the primary areas of
growth. Operations began with exports to Myanmar, Vietnam and Sri Lanka. Today,
Alkem has operations in over 50 countries.
Alkem has seen
steady exports growth over the last 3 years. Contribution of exports to their
overall turnover is almost 10% now.
All their 3
manufacturing facilities strictly follow WHO GMP and ICH guidelines.
One of their
manufacturing facilities in Daman has recently secured the UK MHRA approval for
Oral and Injectible Cephalosporins. Supplies to the regulated markets of Europe
have started. This facility also has the distinction of securing the South
African MCC approval.
By end 2005, they
hope to have secured the US FDA and Australian TGA approval.
With these recent
developments, Alkem’s exports will see exponential growth in the years to come.
Contribution of exports to overall turnover will also rise significantly.
Manufacturing
Alkem has several
manufacturing facilities, primarily situated in Daman and Taloja. The Taloja
facility was the Alkem first manufacturing facility. Bulk of Alkem's production
is undertaken in the "State of the Art" manufacturing facilities in
Daman. The Cephalosporin formulations facility in Daman is approved by UKMHRA
for orals and injectables. This facility is also approved by MCC South Africa.
Alkem also has a general manufacturing facility wherein cardiovascular
products, anti-diabetics, NSAIDS, neuro-psychiatry products etc. are
manufactured. The modern Betalactam facility is responsible for Alkem's entire
Betalactam range.
The general
manufacturing facility is expected to obtain UKMHRA approval by the first
quarter of 2005. Both, the cephalosporin as well as the general manufacturing
facility will also be accredited with USFDA approval by end 2005 / early 2006.
A detailed
elucidation of each manufacturing facility is appended
Research
and Development
Research and
Development activities play a vital part in maintaining Alkem's market position
through Development and subsequent commercial scale ups of new products.
Research and Development at Alkem is making a major contribution to strengthen
corporate competitiveness by concentrating on product value addition and
technological prowess. It also provides technical support to the export
markets.
Alkem's Research
and Development Centre of 45,000 sq.ft. is located at Taloja, Mumbai. The
facilities comprise of fully equipped, modern state-of-the-art laboratories,
sophisticated information services, and an excellent Library of scientific
literature. The centre is approved by the DSIR, Ministry of Science and
Technology, Government of India.
The Research and
Development Centre is active in almost all facets of the business which
include:
Pharmaceutical
formulations development including Novel Drug Delivery Systems
Clinical trial
Phase I - Pharmacokinetics ( Bioavailability / Bioequivalence / Drug Metabolism
Studies )
Innovative process
development for Bulk Actives
Biotechnology and
Bio-pharmaceuticals
Development of new
nutritional products
The activities are
well synchronized to provide Alkem a competitive advantage in the new patent
regime. Over a period, the company has ambitious plans to further expand the
research activities.
Firsts From Alkem
Anastrozole
Alkem is the first Indian company to successfully develop, manufacture and
market Anastrozole, a drug of choice for breast cancer. Alkem successfully
developed Anastrozole from the very first step, scaled it up and subsequently
manufactured and successfully marketed the same with the brand name ALTRAZ
CEFOTAXIME +
SULBACTAM
Alkem is the first
company in the whole world to manufacture and market a combination of
Cefotaxime and Sulbactam. The brand name is Taximax. This is indeed a very
significant achievement. Alkems brand, Taxim (Cefotaxime) is in the top 5
brands of the Indian Pharmaceutical Industry with sales to the tune of us $ 22
mio. Given this strong equity, Alkem is very confident of building Taximax also
into another Taxim.
SATRANIDAZOLE
Alkem is the first company in the whole world to successfully develop,
manufacture and market Satranidazole, a nitro-imidazole derivative which has
potent anti amoebic action. A high level of technical skill in chemistry was
called for in the development of Satranidazole and Alkem's success on this
front is testimony of Alkem's high competence in R and D and technical fronts.
Since anti-amoebic infections are quite rampant in India, this is a great
contribution from Alkem and is benefiting a large number of people in India
affected by such infections.
In April, 2004 Alkem took one more significant step with the launch of
combination of Satranidazole plus Ofloxacin again for the first time in the
world. Alkem's brand name is Satrogyl-O.
TAXIM-O
The launch of Taxim-O by Alkem heralded new era of suffix branding in India.
This was the first occasion when a company thought of leveraging the brand name
of its ace brands for a new product launch. Taxim-O was launched in the year
1998 and Alkem received the best new product launch award for the launch of
Taxim-O. Many companies have followed suit but to Alkem goes the credit of
inventing suffix branding in India with Taxim-O and in fact also for making the
brand a huge success
PROFILE
Subject
is a three-decade old pharmaceutical company with current turnover of about Rs.
600 crores. Its products are sold in around 40 countries worldwide. It has a
substantial international presence with export both in formulations and bulk
drugs. The special focus is on Cephalosporins. Other drugs exported include
Omeprazole, Celecoxib, and iron complexes.
The
company's popular products include cephalosporin brands like Taxim, Taxim-O,
besides A to Z, Clavam and Alcipro. Alkem has five marketing divisions covering
key therapeutic areas and together they have a field force of about 2,000
people.
It has
the unique distinction of being awarded the UKMHRA approval for its
Cephalosporin unit in Daman, for both orals and injectables. With this, Alkem
has commenced business in United Kingdom and other regulated markets in Europe.
United States is the next destination for Alkem.
Mr.
Samprada Singh, Chairman of the company is one of the most respected and
successful entrepreneurs in the Indian pharmaceutical industry. Through
dynamism, vision and leadership, Mr. Singh has made Alkem one of the top 10
Indian drug makers today. The Indian pharmaceutical industry's No.3 brand Taxim
(Rs. 100 crores) is an Alkem brand. Mr. Singh launched this company in 1973-74.
Under his able leadership, Alkem has shown a spectacular growth, and is poised
for greater times ahead.
Speaking
to Anil Mascarenhas and Hemant Maradia of India Infoline, Mr. Singh says by 2006-07, Alkem's turnover
should reach Rs 10000 millions. He is also looking at 12-13% net profit growth.
PRESS
RELEASES
Alkem
Labs looking at Rs 10000 Millions sales by '05
Alkem
Laboratories, primarily into the allopathic drug market, has made a foray into
the herbal formulations market with the launch of two herbal products in the lifestyle
segment.
MUMBAI, Aug. 7
THE Mumbai-based Alkem Laboratories Limited is targeting Rs
10000-millions turnover by 2005. The company aims to garner sales of Rs 6000
millions by the end of this financial year, March 2003.
Mr B.N. Singh, Managing Director, Alkem Laboratories Limited, told
presspersons here that the company was expected to improve sales by entering
newer segments.
Alkem Laboratories, primarily into the allopathic drug market, has made
a foray into the herbal formulations market with the launch of two herbal
products in the lifestyle segment. It has entered into a five-year strategic
alliance with a South Indian firm, Cybele Herbal Laboratories, for the
exclusive marketing rights of the latter's products.
Cogent Db +, an anti-diabetic drug and Mobigold, an arthritis remedy
would be prescription drugs and priced at Rs 3 per tablet and Rs 6 per tablet
respectively, said Mr Maitra, President-Marketing, Alkem Laboratories.
In the first year of launch itself, the company expects to garner sales
of Rs 150 Millions from both the products. "We are expecting about Rs 100
million from Cogent Db+ and Rs 50 Millions from Mobigold,'' Mr Maitra said.
On the export front, Alkem Laboratories expects the herbal formulations
foray to boost its figures considerably. "We will be exporting these two
products in countries where Cybele does not have a marketing initiative. We
presently export to many countries in Africa, South Asia and parts of Europe,''
Mr Singh said.
The export turnover currently accounts for 10 per cent of Alkem's
overall turnover. "Of the Rs 600-crore turnover that we expect to garner
by March 2003, about Rs 5500 millions will come from the domestic market and
the rest from exports,'' said Mr Maitra.
The closely-held company also does not have any plans to go for a public
listing soon. Says Mr S Singh, Chairman, Alkem Laboratories, "We did have
plans to go in for a public listing sometime back, but with the prevailing
depressed mood in the stock markets, I don't think we will be going in for a
listing soon.''
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 exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or investigation
registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.39.36 |
|
UK Pound |
1 |
Rs.78.29 |
|
Euro |
1 |
Rs.58.48 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
---- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
72 |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/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 |
|