MIRA
INFORM REPORT
|
Report Date : |
19.02.2008 |
IDENTIFICATION
DETAILS
|
Name : |
ALEMBIC LIMITED |
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Registered Office : |
Alembic Road,
Vadodara – 390 003, Gujarat |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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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 : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 15000000 |
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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,
Vadodara – 390 003, Gujarat, India |
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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 |
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Factory 2 : |
Panpharm
(Formulation Division), Panelav, Taluka Halol, District Panchmahals – 389
350, Gujarat |
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Factory 3 : |
Plot No. 21, 22, EPIP – Phase I Jharmajri, Baddi, Tehsil – Nalagarh,
District Solan, Himachal Pradesh, India |
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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 31st December 2007
|
Category
of Shareholder |
No. of Shares |
Percentage of
Holding |
|
Shareholding of Promoter and Promoter Group2 |
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Indian |
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Individuals/ Hindu Undivided Family |
12013400 |
8.68 |
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Bodies Corporate |
71336190 |
51.52 |
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Foreign |
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Individuals (Non-Residents
Individuals/Foreign Individuals) |
1403415 |
1.01 |
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Public shareholding |
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Institutions |
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Mutual Funds/ UTI |
9926716 |
7.17 |
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Financial Institutions / Banks |
1602180 |
1.16 |
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Foreign Institutional Investors |
14139081 |
10.21 |
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Non-institutions |
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Bodies Corporate |
2233126 |
1.61 |
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Individuals |
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Individuals -i. Individual shareholders holding nominal
share capital up to Rs 0.100 Million |
21180095 |
15.30 |
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ii. Individual shareholders holding nominal share capital in excess of Rs. 0.100
Million |
4197046 |
3.03 |
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Any Other (specify) |
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Clearing member |
108767 |
0.08 |
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Non Resident Indians
|
282814 |
0.20 |
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Non Resident |
31025 |
0.02 |
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OCBs |
1050 |
0.00 |
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GRAND 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
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Bulk Drugs and Chemical and Intermediates |
MMU/M.T. |
# |
770.148 |
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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
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
22,50,00,000 |
Equity Shares |
Rs. 2/- each |
Rs. 450.000 Millions |
|
5,00,000 |
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 |
|
13,84,64,270 |
Equity Shares |
Rs. 2/- each |
Rs. 276.929
Millions |
Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
13,84,54,905 |
Equity Shares |
Rs. 2/- each |
Rs. 276.910
Millions |
|
Add: 9,365 |
Forfeited Equity Shares |
Rs. 2/- each |
Rs. 0.009
Million |
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Total : |
|
Rs. 276.919 Millions |
Of the above:
1. 6,39,300 Equity
Shares of Rs. 2/- each (Previous Year 1,27,860 Equity Shares of Rs. 10/- each)
have been allotted as fully paid up pursuant to contract without payment being
received in cash.
2. 9,20,36,620
Equity Shares of Rs. 2/- each (Previous Year 1,84,07,324 Equity Shares of Rs.
10/- 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 &
Equity shares of Rs. 2/- each (Previous Year 6,69,090 & 1,44,848 of Rs.
10/- each) fully paid, were alloted to the 7,24,240 Shareholders of erstwhile
Neomer Limited, & Darshak Limited, respectively, pursuant to the Scheme of
amalgamation/merger without payment being received in cash.
4. The Company has
split the face value of equity share from Rs. 10/- per share to Rs. 2I- per
share and accordingly issued 13,84,54,905 equity shares of Rs.2/- each to the shareholders
of the Company holding equity shares of Rs. 10/- each on Record Date i.e. 4th
October, 2006.
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share Capital |
276.919 |
276.900 |
276.919 |
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2] Share
Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves &
Surplus |
3572.264 |
3085.400 |
2459.711 |
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4] (Accumulated
Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH
|
3849.183 |
3362.300 |
2736.630 |
|
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LOAN FUNDS |
|
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|
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|
1] Secured Loans |
2079.663 |
1424.300 |
1630.450 |
|
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2] Unsecured
Loans |
1274.127 |
373.100 |
402.431 |
|
TOTAL BORROWING
|
3353.790 |
1797.400 |
2032.881 |
|
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DEFERRED TAX
LIABILITIES |
397.802 |
0.000 |
406.846 |
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TOTAL
|
7600.775 |
5159.700 |
5176.357 |
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APPLICATION OF FUNDS
|
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FIXED ASSETS [Net Block]
|
3054.445 |
3139.600 |
3153.221 |
|
Capital work-in-progress
|
512.144 |
18.000 |
0.000 |
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INVESTMENT
|
208.105 |
241.900 |
286.756 |
|
DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES
|
|
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Inventories
|
1230.918
|
1403.300
|
1177.299
|
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Sundry Debtors
|
1659.261
|
1517.500
|
1086.348
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Cash & Bank Balances
|
1517.067
|
8.800
|
13.848
|
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Loans & Advances
|
670.221
|
722.400
|
507.776
|
Total Current Assets
|
5077.467
|
3652.000
|
2785.271
|
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Less : CURRENT LIABILITIES & PROVISIONS
|
|
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|
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Current Liabilities
|
1084.349
|
1572.400
|
954.167
|
|
|
Provisions
|
167.037
|
319.400
|
94.724
|
Total Current Liabilities
|
1251.386
|
1891.800
|
1048.891
|
|
Net Current Assets
|
3826.081
|
1760.200
|
1736.380
|
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MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
|
|
|
|
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TOTAL
|
7600.775 |
5159.700 |
5176.357 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
7006.624 |
6388.482 |
5351.439 |
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|
Other Income |
89.071 |
126.219 |
-- |
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Total Income |
7095.695 |
6514.701 |
5351.439 |
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Profit/(Loss) Before Tax |
705.888 |
834.964 |
557.864 |
|
|
Provision for Taxation |
[0.929] |
49.747 |
39.700 |
|
|
Profit/(Loss) After Tax |
706.817 |
785.217 |
518.164 |
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Earnings in Foreign Currency : |
|
|
|
|
|
|
Export Earnings |
1495.319 |
1304.175 |
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|
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Interest |
8.833 |
9.975 |
|
|
Total Earnings |
1504.152 |
1314.150 |
1059.130 |
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Imports : |
|
|
|
|
|
|
Raw Materials |
655.327 |
648.209 |
|
|
|
Stores & Spares |
15.637 |
27.511 |
|
|
|
Capital Goods |
65.970 |
48.545 |
|
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Total Imports |
736.934 |
724.265 |
805.843 |
|
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Expenditures : |
|
|
|
|
|
|
Material Consumption |
2126.123 |
|
|
|
|
Purchase of Finished Goods |
846.524 |
761.958 |
|
|
|
Excise Duty |
60.301 |
79.668 |
|
|
|
Manufacturing Expenses |
533.034 |
531.916 |
|
|
|
Employee’s Expenses |
707.557 |
655.491 |
4934.755 |
|
|
Research and Development Expenses |
227.576 |
198.889 |
|
|
|
Marketing and Distribution Expenses |
626.224 |
558.610 |
|
|
|
Interest |
75.161 |
86.659 |
|
|
|
Depreciation |
290.611 |
287.569 |
|
|
|
Others |
518.045 |
487.031 |
|
|
Total Expenditure |
6011.156 |
5889.135 |
4934.755 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales Turnover |
1704.600 |
3048.800 |
2566.400 |
|
Other Income |
33.700 |
9.200 |
297.300 |
|
Total Income |
1738.300 |
3058.000 |
2863.700 |
|
Total Expenditure |
1414.100 |
2436.700 |
2271.900 |
|
Operating Profit |
324.200 |
621.300 |
591.800 |
|
Interest |
75.500 |
79.000 |
83.800 |
|
Gross Profit |
248.700 |
542.300 |
508.000 |
|
Depreciation |
74.700 |
81.700 |
83.800 |
|
Tax |
2.600 |
2.700 |
5.000 |
|
Reported PAT |
170.400 |
455.900 |
420.200 |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
0.72 |
0.64 |
0.86 |
|
Long Term Debt-Equity Ratio |
0.23 |
0.32 |
0.48 |
|
Current Ratio |
1.22 |
1.22 |
1.15 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
1.39 |
1.31 |
1.24 |
|
Inventory |
5.46 |
5.12 |
5.60 |
|
Debtors |
4.53 |
5.07 |
5.06 |
|
Interest Cover Ratio |
4.29 |
5.94 |
4.04 |
|
Operating Profit Margin(%) |
19.46 |
17.71 |
16.21 |
|
Profit Before Interest And Tax
Margin(%) |
15.42 |
13.36 |
11.71 |
|
Cash Profit Margin(%) |
15.63 |
14.87 |
13.68 |
|
Adjusted Net Profit Margin(%) |
11.58 |
10.52 |
9.17 |
|
Return On Capital Employed(%) |
18.01 |
18.00 |
15.19 |
|
Return On Net Worth(%) |
23.28 |
23.27 |
22.08 |
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&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 & Capsules and Oral Preparation & Ointments by 900
Million Nos and 3528 MT respectively during the year 2004-05 and with this
expansion the total installed capacity of Tablets & Capsules and Oral
Preparation & 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&D facility.
In 2006, 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 and with this expansion the
total installed capacity of Tablets & Capsules and Oral Preparation &
Ointments has increased to 4653 Million Nos and 10182.616 MT respectively.
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 & introduction of
new brands. New brands contributed 10% of revenue.
Domestic API Sales:
Export Formulation Sales:
Export API Sales:
The domestic sales of API was Rs.724.400 Millions for the year ended on 31st March,
2007 as compared to Rs.702.600 Millions for the previous year.
The sales of formulations export was Rs.615 Millions for the year ended 31st
March, 2007 as compared to Rs.507.600 Millions in the previous year ended 31st
March, 2006, aggregating a growth of 21% over previous year. The above includes
sales to the Regulated Market of Rs.220.700 Millions for the year ended 31st
March, 2007 as compared to Rs.103.600 Millions for previous year ended on 31st
March, 2006.
The export sales of API was Rs.768 Millions for the year ended on 31st March,
2007 as compared to Rs.773.400 Millions for the previous year. The above
includes sales to the Regulated Market of Rs.270.100 Millions for the year
ended 31st March, 2007 as compared to Rs.292.300 Millions for previous year
ended on 31st March, 2006.
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 13,84,54,905 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 & 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 & Financial framework:
Solid legal frame work and strong financial markets.
Weakness:
Poor R&D expenditure:
Compared to global pharmaceutical industry, Indian R&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 & distribution setup.
Outlook:
The Company is well positioned in the emerging business scenario with a clear
objective to enhance market share in the domestic and select international
markets by way of spending more in R&D front, achieving higher level of
productivity and efficiency in all areas of operations.
Finance:
The Company has registered a net income of Rs.7096.200 Millions for the year
under review as compared to Rs.6514.700 Millions for the previous year ended on
31st March, 2006. The Profit, before providing for 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. The Company
has made a profit after tax of Rs.706.800 Millions for the year under review,
as compared to Rs.785.200 Millions for the previous year. The Company raised
temporary loan of Rs.1420 Millions for payment obligation to Dabur Pharma
Limited in terms of Business Transfer Agreement dated 1st April, 2007. Amount
raised was deployed as fixed deposit with Bank as on 31st March, 2007.
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.
Fixed Assets
- Freehold Land
- Leasehold Land
- Buildings
- Employees Quarters
- Plant and Machinery
- R & D Equipment
- Furniture & 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 & 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
& ISO-14001 Certification for manufacturing & marketing of active
pharmaceutical ingredients & 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 January 3, 2008
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.39.87 |
|
UK Pound |
1 |
Rs.77.79 |
|
Euro |
1 |
Rs.58.59 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
72 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|