MIRA
INFORM REPORT
|
Report Date : |
25.07.2008 |
IDENTIFICATION
DETAILS
|
Name : |
NECTAR LIFE
SCIENCES LIMITED |
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Formerly Known
As : |
SURYA MEDICARE
LIMITED |
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Registered
Office : |
Village Saidpura,
Tehsil Dera Bassi, District: Patiala – 140 507, Punjab. |
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Country : |
India |
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Financials (as
on) : |
31.03.2007 |
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Date of
Incorporation : |
27.06.1995 |
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Com. Reg. No.: |
16-16664 |
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CIN No. : |
L24232PB1995PLC016664 |
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TAN No.: (Tax Deduction
& Collection Account No.) |
PTLS10181D |
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PAN No.: (Permanent
Account No.) |
AABCS6468G |
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Legal Form : |
A public limited liability
company. The company’s shares are listed on the stock exchange. |
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Line of
Business : |
Manufacturing of
medicines like Ampicillin, Trihydrate, S. Sterilite, Amoxycillin, etc. |
RATING &
COMMENTS
|
MIRA’s Rating
: |
A |
RATING |
STATUS |
PROPOSED
CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded
healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
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Maximum Credit
Limit : |
USD 10418000 |
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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 company having satisfactory track. Directors are reported as
experienced, respectable and resourceful industrialists. The company’s recent
IPO is successful. Trade relations are fair. Payments are correct and as per
commitment. The company can
be considered good for normal business dealings at usual trade terms and
condition. |
LOCATIONS
|
Registered
Office / Factory |
Village Saidpura,
Tehsil Dera Bassi, District Patiala - 140507, Punjab India |
|
Tel. No.: |
91-1762-308000/308001/231187/231287/231387 |
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Fax No.: |
91-1762-231187 |
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E-Mail : |
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Website : |
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Area : |
Owned |
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Head Office : |
#1596, Bhaigrath Place, Chandni Chowk, Delhi –
110048, India |
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E-Mail : |
91-11-23866341, 23869202-03 |
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Fax No.: |
91-11-23866341 |
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Corporate
Office : |
110, Industrial Area,
Phase-I, Chandigarh-16002, Haryana, India |
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Tel. No.: |
91-172-2658317/2655166/2655438/2655775 |
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Fax No.: |
91-172-2655377 |
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E-Mail : |
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Area : |
2,500 sq.yds. --
Owned |
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Corporate
Office : |
SCO 38-39, Sector
– 9-D, Chandigarth – 160009, Punjab |
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Tel. No.: |
91-172-3047777/3047701 |
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Fax No.: |
91-172-3047755 |
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Factory : |
Village Bhatoli
Kalan, Pargana Dharmpur, Tehsil Nalagarh, Distt. Solan, (Himachal Pradesh)
Village Bhatoli
Kalan, Pargana Dharmpur, Tehsil Nalagarh, Distt. Solan, (Himachal Pradesh)
Plot No. 2, Lane
No. 4, Phase II, SIDCO INDUSTRIAL COMPLEX Bari Brahmana, Jammu (J & K) |
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Branches : |
Located at
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Administrative Office : |
48/1 Dickmans Road, Colombo 4, Sri Lanka |
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E-Mail: |
DIRECTORS
|
Name : |
Mr. Sanjiv Goyal |
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Designation : |
Chairman and Managing Director |
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Qualification
: |
B. Com., LLB |
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Previous
Employment : |
Surya
Pharmaceuticals Limited |
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Name : |
Mr. Raman Goyal |
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Designation : |
Whole-time Director |
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Name : |
Mr. Rajesh Garg |
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Designation : |
Director |
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Name : |
Mr. S P Singh |
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Designation : |
Director |
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Name : |
Mr. V D Agarwal |
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Designation : |
Director |
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Name : |
Mr. Vijay J Shah |
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Designation : |
Director |
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Name : |
Mr. Aryan
Goyal |
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Designation : |
Executive
Director |
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|
Name : |
Mr. Basant Kumar
Goswami |
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Designation : |
Independent
Director |
KEY EXECUTIVES
|
Name : |
Mr. Sandeep Goel |
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Designation : |
Vice President
(Finance) |
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Name : |
Mr. Sunder Lal |
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Designation : |
Company Secretary |
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Qualification
: |
B. Com, F.C.S. |
MAJOR SHAREHOLDERS
As on 30.06.2008
|
Names
of Shareholders |
No. of Shares |
Percentage of Holding |
|
Shareholding of Promoter and Promoter Group2 |
|
|
|
Indian |
|
|
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Individuals/ Hindu Undivided Family |
9814164 |
64.46 |
|
Public shareholding |
|
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Institutions |
|
|
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Financial Institutions/ Banks |
50 |
0.00 |
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Insurance Companies |
986456 |
6.48 |
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Foreign Institutional Investors |
545523 |
3.58 |
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Non-institutions |
|
|
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Bodies Corporate |
1616736 |
10.62 |
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Individuals |
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|
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Individuals -i. Individual shareholders holding nominal
share capital up to Rs 0.100 Million |
1507558 |
9.90 |
|
ii. Individual shareholders holding nominal share capital in excess of Rs. 0.100
Million |
647360 |
4.25 |
|
Any Other (specify) |
|
|
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i) Non Resident Indians |
67468 |
0.44 |
|
ii) Clearing member |
37782 |
0.25 |
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iii) Trusts |
3000 |
0.02 |
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|
|
|
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Total
|
15226097 |
100.00 |
BUSINESS DETAILS
|
Line of
Business : |
Manufacturing of
medicines like Ampicillin, Trihydrate, S. Sterilite, Amoxycillin, etc. |
|
|
|
|
Products : |
Item Code No. Product Description 294110-02 Ampicillin
Trihydrate and Amoxycillin Sodium Sterile
294110-03
Amoxycillin Triydrate and Amoxycillin Sodium Sterile
294110-04
Cloxacillin Sodium and
Cloxaillin Sodium Sterile |
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Exports to : |
·
Singapore ·
Taiwan ·
Germany
Nigeria ·
Hong Kong |
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Import from : |
·
Germany ·
Korea |
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Terms : |
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Selling : |
L/C, Cash or
Credit (60 days) terms |
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Purchasing : |
L/C or Credit (45
days) terms |
PRODUCTION STATUS
|
Particulars |
Installed Capacity |
Actual Production |
|
Bulk Drug and
Sterile |
425.00 MT’s |
316.116 MT’s |
|
Phytochemicals - Menthol |
4800.00 MT’s |
1735.825 MT’s |
|
Job Work Executed |
-- |
8.476 MT’s |
GENERAL
INFORMATION
|
No. of
Employees : |
340 persons -- 40
persons in office and 300 persons in factory |
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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 : |
Datta Singla and Company Chartered Accountants |
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Address : |
SCO No. 2935 -36, 1st Floor, Sector 22-C, Chandigarh |
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Associates/Subsidiaries : |
· Chempharma
Private Limited - Sri Lanka · Narbada
Industries, Jammu (Dissolved on 04.10.2006) · Surya Narrow
Fabrics - New Delhi · Chempharma
Private Limited - Sri Lanka · Nectar
Lifestyles Limited- New Delhi |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
35000000 |
Equity Shares |
Rs.10/- each |
Rs. 350.000 millions |
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|
|
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
14886667 |
Equity Shares |
Rs.10/- each |
Rs. 148.867 millions |
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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 |
148.867 |
148.866 |
110.167 |
|
|
3] Reserves &
Surplus |
1934.859 |
1583.372 |
525.879 |
|
NETWORTH
|
2083.726 |
1732.238 |
636.046 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2710.484 |
1406.040 |
803.057 |
|
|
2] Unsecured
Loans |
1510.950 |
76.107 |
-- |
|
TOTAL BORROWING
|
4221.434 |
1482.147 |
803.057 |
|
|
DEFERRED TAX
IALBILITIES |
221.820 |
148.455 |
123.926 |
|
|
|
|
|
|
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TOTAL
|
6526.980 |
3362.840 |
1563.029 |
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|
|
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APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
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FIXED ASSETS [Net Block]
|
1731.305 |
1150.041 |
755.246 |
|
Capital work-in-progress
|
1270.114 |
210.867 |
|
|
|
|
|
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INVESTMENT
|
63.722 |
147.210 |
46.394 |
|
DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
1963.392
|
1136.841
|
739.338
|
|
|
Sundry Debtors
|
1150.436
|
871.882
|
532.802
|
|
|
Cash & Bank Balances
|
357.485
|
195.128
|
89.544
|
|
|
Loans & Advances
|
1210.899
|
715.130
|
224.490
|
Total Current Assets
|
4682.212
|
2918.981
|
1586.174
|
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
965.936
|
1065.301
|
622.843
|
|
|
Provision
|
262.837
|
5.588
|
213.607
|
Total Current Liabilities
|
1228.773
|
1070.889
|
836.450
|
|
Net Current Assets
|
3453.439
|
1848.092
|
749.724
|
|
|
|
|
|
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MISCELLANEOUS EXPENSES
|
8.400 |
6.630 |
11.665 |
|
|
|
|
|
|
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TOTAL
|
6526.980 |
3362.840 |
1563.029 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
4260.117 |
2551.669 |
2331.608 |
|
|
Other Income |
445.752 |
221.921 |
-- |
|
|
Total Income |
4705.869 |
2773.590 |
2331.608 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
622.533 |
327.344 |
184.818 |
|
|
Provision for Taxation |
60.060 |
76.703 |
36.157 |
|
|
Profit/(Loss) After Tax |
562.473 |
250.641 |
148.661 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
|
|
|
|
|
|
Export Earnings |
1778.119 |
468.727 |
|
|
|
Dividend Received |
125.672 |
207.278 |
|
|
Total Earnings |
1903.791 |
676.005 |
305.574 |
|
|
|
|
|
|
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Imports : |
|
|
|
|
|
|
Raw Materials |
1522.917 |
2005.674 |
|
|
|
Capital Goods and Stores & Spares |
16.475 |
11.308 |
|
|
Total Imports |
1539.392 |
2016.982 |
1347.711 |
|
|
|
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Expenditures : |
|
|
|
|
|
|
Raw Material
Consumed |
3312.552 |
2008.247 |
|
|
|
Manufacturing
Expenses |
206.321 |
130.961 |
|
|
|
Personnel
Expenses |
105.299 |
63.799 |
|
|
|
Administrative
Expenses |
56.555 |
22.940 |
2146.791 |
|
|
Financial
Expenses |
186.984 |
81.163 |
|
|
|
Repair &
Maintenance |
10.980 |
4.415 |
|
|
|
Selling &
Distribution Expenses |
100.060 |
61.010 |
|
|
|
Depreciation |
104.448 |
73.574 |
|
|
|
Preliminary
Expenses Written Off |
0.136 |
0.137 |
|
|
Total Expenditure |
4083.335 |
2446.246 |
2146.791 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 (1st Quarter) |
31.09.2007 (2nd Quarter) |
31.12.2007 (3rd Quarter) |
31.03.2008 (4th Quarter) |
|
Sales Turnover |
1773.800
|
1937.900 |
1730.700 |
2093.500 |
|
Other Income |
46.900
|
49.000 |
16.200 |
17.400 |
|
Total Income |
1820.700
|
1986.900 |
1746.900 |
2110.900 |
|
Total Expediture |
1514.500
|
1628.000 |
1427.000 |
1707.600 |
|
Operating Profit |
306.200
|
358.900 |
319.900 |
403.300 |
|
Interest |
80.100
|
81.800 |
101.000 |
10.800 |
|
Gross Profit |
226.100
|
277.100 |
218.900 |
392.500 |
|
Depreciation |
33.400
|
38.400 |
38.900 |
82.700 |
|
Tax |
21.600
|
7.300 |
0.200 |
(18.100) |
|
Reported PAT |
171.100
|
231.400 |
179.800 |
244.300 |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
1.49 |
0.96 |
1.11 |
|
Long Term Debt-Equity Ratio |
0.93 |
0.53 |
1.11 |
|
Current Ratio |
1.57 |
1.40 |
1.67 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
2.55 |
2.55 |
2.54 |
|
Inventory |
3.00 |
3.06 |
3.74 |
|
Debtors |
4.60 |
4.09 |
4.74 |
|
Interest Cover Ratio |
4.33 |
5.03 |
3.37 |
|
Operating Profit Margin(%) |
19.65 |
16.78 |
14.54 |
|
Profit Before Interest And Tax Margin(%) |
17.40 |
14.22 |
11.92 |
|
Cash Profit Margin(%) |
14.34 |
12.31 |
8.65 |
|
Adjusted Net Profit Margin(%) |
12.09 |
9.75 |
6.03 |
|
Return On Capital Employed(%) |
17.03 |
17.63 |
21.68 |
|
Return On Net Worth(%) |
29.48 |
23.64 |
22.95 |
LOCAL AGENCY
FURTHER INFORMATION
Audited Financial
Results for the Year 2008-09 (Rs. In
Millions)
|
PARTICULARS |
|
|
31.03.2008 |
|
|
Gross Sales/
Income from Operations |
|
|
7744.985 |
|
|
Less: Excise Duty |
|
|
385.528 |
|
|
Net Sales/ Income from Operations |
|
|
7359.457 |
|
|
Other Income |
|
|
129.455 |
|
|
Total Income |
|
|
7488.912 |
|
|
Expenditure |
|
|
|
|
|
|
(Increase)/ decrease in stock in trade |
|
|
95.267 |
|
|
Consumption of Raw Material |
|
|
5250.303 |
|
|
Employees Cost |
|
|
189.072 |
|
|
Depreciation |
|
|
193.434 |
|
|
Other Expenditure |
|
|
570.011 |
|
Total Expenditure |
|
|
6298.087 |
|
|
Interest |
|
|
273.668 |
|
|
Profit before tax |
|
|
917.157 |
|
|
Tax Expenses |
|
|
|
|
|
Current Tax |
|
|
104.377 |
|
|
Fringe Benefit Tax |
|
|
1.580 |
|
|
Mat Credit Entitlement |
|
|
(104.377) |
|
|
Deferred tax |
|
|
81.964 |
|
|
Excess provision for taxation written-back |
|
|
(3.413) |
|
|
Net Profit |
|
|
837.026 |
|
|
Paid up Equity Share Capital (Face Value per share: Rs.10/-) |
|
|
152.261 |
|
|
Reserves excluding revaluation reserves |
|
|
2679.290 |
|
|
Earnings per share (EPS) (Rs.) Basic |
|
|
5.570 |
|
|
Diluted |
|
|
4.003 |
|
|
Aggregate of Public Shareholding |
|
|
|
|
|
-Number of Shares |
|
|
5411933 |
|
|
-Percentage of Shareholding |
|
|
35.54 |
|
|
Consolidated Net Turnover |
|
|
7359.457 |
|
|
Consolidated PAT |
|
|
747.389 |
|
|
Consolidated basic EPS (Rs.) |
|
|
4.971 |
|
|
Consolidated diluted EPS (Rs.) |
|
|
3.572 |
|
OPERATIONS
During the year
2006-07, the company achieved sales turnover & other income of Rs. 4873.417
Millions registering 56.97% increase over the previous year (Rs. 3104.664 Millions). Income before
interest and depreciation increased to Rs. 913.965 Millions registering
89.59% increase over the previous year (Rs. 482.081 Millions). The net profit
increased to Rs. 483.582 Millions registering 89.27% increase over the
previous year (Rs 255.501 Millions). The Directors expect a consistent growth
in company's performance in the years to come.
1. API Facilities
The Company's principal
production facility is located at Unit I in Derabassi, Punjab, India and
produces oral and sterile forms of SSPs and cephalosporins. The project is
expanded at Unit II, which is close to the existing production facility. The
Company is a recognized "Export House" by the Indian Director General
of Foreign Trade. Nectar Lifesciences has received WHOGMP certification from
the State Drugs Controlling Authority,
Directorate of Health and Family Welfare, Punjab for its products. Company has
filed Drug Master File for two of it's Oral Cephalosporin Active Ingredient
both with US-FDA (US Food & Drug Administration) and EDQM (European Directorate of Quality &
Medicines). After these filing company expects to get inspected by the
concerned authorities for further approvals and business initiation in
regulated market. The company is also planning to file more DMFs in due course
of time.
2. Phyto Chemicals / Herbal Products
At unit II, the
company has established a state of art Mint
Derivatives Plant initiating its business activity into the
phytochemicals arena. The company has the vide range of products like Menthol
crystals (BP/USP/IP/JP) Distilled Menthol Oil (all grades), Peppermint Oil,
Dementholised Peppermint Oil, Liquid Menthol, Menthol Flakes/Powder, Terpenes,
Menthones, Menthyl Acetate, Menthyl Lactate and many others are on anvil. The
company had also set up a Menthol Flakes facilities at SIDCO Industrial
Complex, Jammu to add on the requisite business activity with all the
locational benefits to Industry in J&K.
3. Empty Hard Gelatin Capsule
The company has
also established a Empty Hard Gelatin Capsule unit at Baddi, Himachal Pradesh
referred as Unit VII
which has
commenced production w.e.f. April, 2007. Nectar's two-piece double lock gelatin capsules, manufactured under GMP
standards and ISO 9002 guidelines; are BSE-Free and contain no sulfites. Due to
their neutral taste and ease of swallowing, capsules are the preferred dosage
form and have the following characteristics:
• Easy fill design
for use on high speed, semiautomatic and manually operated machines;
• No risk of the
B.S.E. (Bovine spongiform encephalopathy) virus (mad cow disease);
• Available in a
variety of colors, with or without printing;
• Printing options
like Linear, Circular, Spiral, Single Color, Double Color, oriented and
Non-Oriented can be offered.
• 5 year shelf
life
• Manufactured
with pharmaceutical grade gelatin
Ethylene oxide
free
Sulfite free
Sodium free
GMP manufactured
GMP manufactured
FDA approved
4. Finished Dosage Facilities
In pursuance to
its philosophy of being a complementing partner to leading companies world wide
and to aid them in achieving high performance growth the Company has set up a
Formulation Unit at Baddi, Himachal Pradesh referred as Unit No. VI where it is
now offering specialized & high quality Finished Dosage Forms from a
dedicated, USFDA Compliant Sterile and Oral facility for Win-Win tie-ups. The
Unit started production from April, 2007.
Aimed at the
advanced markets of US, Europe and other Regulated Markets, the green field
facility is set up in 600 square meter site at Baddi, Himachal Pradesh, which
latest and sophisticated equipment to produce & deliver products of high
and consistent quality adhering to stringent systems and processes tuned for
regulatory compliance. This highly specialized operation is handled by
experienced & high performance team.
The installed
production capacities for various Cephalosporin dosage forms are as under:
Tablets (coated
/uncoated) - 150 million*
Capsules (Hard
shell) - 150 million *
Dry Oral
Suspension (bottles) - 15 million *
Injectables (vials
and amps) - 30 million *
* Capacity per
annum considering single shift per day
Benefits - Since
Nectar also manufactures High Quality APIs in GMP compliant facilities, it can
offer end to end solutions for GMP compliant facilities, it can offer end to
end solutions for expertise in the manufacture of finished product for a
variety of Sterile and Oral APIs. These services are provided at the clinical
or commercial scale under full cGMP, and can be combined with its bulk API
manufacturing capabilities to provide one stop shopping for their customers.
5. Captive Power Plant
The company has
also put up an AGRO-BASED Captive Power Generation Plant at Derabassi (Unit -
II) which runs on husk can be switched
over to wood chips, saw dust, leaf cuttings etc., with a capacity to generate
6MW electrical power. It would cater to the power requirements of Unit-I and Unit-II
Derabassi and would reduce the energy cost of the company.
6. Corporate Quality Control and Research and
Development Centre
Research and
Development wing is a vital organ and is a driving force towards innovation,
project planning and implementation in any organization. It is highly demanding
and to rise up to expectations experienced and able manpower, different types
of equipment and sophisticated supporting analytical instruments are required.
To meet R&D challenges in this industry, NecLife has Ultra Modern
Laboratories to support the manufacturing facilities at Derabassi Unit II. The
laboratories are equipped with latest equipment and manned by highly qualified
professionals working towards development of new molecules. Since R&D
activities are done on a regular basis, more improvements and reduction in cost
of production would follow in with the passage of time.
During the
year,their R&D has developed following
technologies:
• Cefprozil
Monohydrate
• Cefditoren
Pivoxil
• Cefalothin
Sodium Sterile
• Cefpirome
Sulphate
FOREIGN CURRENCY CONVERTIBLE BONDS
Pursuant to the
authority granted by the Members in their Extra- Ordinary General Meeting held
on 15.12.2005, the Company has successfully raised the funds from international
market, to the tune of US$ 35,000,000 by way of Foreign Currency Convertible
Bonds (FCCBs). The FCCBs are allotted in the Board of Directors' Meeting held
on 25.04.2006. . The details of utilization of such proceeds are disclosed to the Audit Committee. The company has
utilized these funds for purposes as stated in the Notice for convening the
Extraordinary General Meeting held on 15.12.2005 vide which approval of Members
has been received for the issue of said FCCBs.
The FCCBs are
listed on Singapore Exchange Securities Trading financial Limited. Each
bondholder has a right to convert the bonds at any time after 04.06.2006 into equity shares of the Company at a
predetermined price of Rs. 265.39 at a predetermined exchange rate of US $ 1 =
Rs. 44.6725. The conversion price has been adjusted on 25.10.2006 in line with
the conversion price reset clause as perthe terms and conditions of the FCCBs
from Rs. 331.74.
OVERVIEW
Nectar
Lifesciences Limited (Neclife) is a leading manufacturer of off-patented Cephalosporins- both oral and
sterile bulk drugs, select Semi Synthetic Penicillins (SSP) and is also engaged
in certain contract manufacturing for generic pharmaceutical companies. The
company has successfully entered into phytochemical arena particularly in
manufacturing of menthol and its allied products. The company has also set up a
Finished Dosage Plant (Formulation companies thus initiating this business
activity would have some Unit) and Empty Hard Gelatin Capsule plant in Baddi,
Himachal Pradesh. For catering the power requirements, the company has set up
the captive power plant with the capacity of electricity generation of 6MW. The
company has also set up a state of the art
Corporate Quality Control Centre and Research and Development Centre at
Derabassi to give impetus to the quality orientation and process development
activities which are bound to give the company an edge in its efforts to
maintain fast paced growth.
The company has
its presence in more than 35 Countries including Domestic Market.
OPPORTUNITIES & OUTLOOK
API Facilities Baddi,
The Company is a recognized "Export House" by the Director General of
Foreign Trade - India. It has also received the coveted WHO-GMP certification
from the State Drugs Controlling Authority, Directorate of Health and Family
Welfare, Punjab for its products. It has filed Drug Master File for two of it's
Oral
Cephalosporin
Active Ingredients both with US-FDA (US Food & Drug Administration) and
EDQM (European Directorate of Quality & Medicines). After these filing it
expects to get inspected by the concerned authorities within stipulated
time-lines and it would open up more avenues to sell to lucrative regulated
markets. The company would also file further DMFs in due course of time.
Phyto Chemicals / Herbal Products
At unit II,
Derabassi, Punjab, the company has established a new, dedicated block to
manufacture menthol enabling the company to enter into the phytochemicals
arena. The company has a vide range of products like Menthol crystals
(BP/USP/IP/JP), Menthol Oil (all
grades), Peppermint Oil, Dementholised Peppermint Oil, Liquid Menthol, Menthol
Flakes / Powder, Terpene, Menthone, CIS etc. The company had also set up a
phytochemical facilities at SIDCO Sales tax One (1) per cent Central Industrial
Complex, Jammu to add on the requisite business
activity with all
the locational benefits to Industry in J&K.
Empty Hard Gelatin Capsule
The company has
also set up an Empty Hard Gelatin Capsule at
Baddi, Himachal Pradesh referred as Unit VII. Nectar's two-piece double lock
gelatin capsules to be manufactured under GMP standards and ISO 9002
guidelines; would be BSE-Free and would not contain any sulfites. Due to their
neutral taste and ease of swallowing, capsules are the preferred dosage form.
The company would
be entitled to certain tax benefits which are allowed by the Central and
Himachal Pradesh Government for setting up the projects in the Baddi. The empty
gelatin hard capsules have big market in India and Exports and company is
particularly in manufacturing of menthol and its allied products. already a
preferred supplier of APIs to many Pharmaceutical companies thus initiating
this business activity would have some inherent advantage for the company.
INDUSTRY STRUCTURE AND DEVELOPMENTS India
Nectar
Lifesciences operates in the global as well as domestic pharmaceutical phere.
Neclife's business model is focused on development, manufacturing and marketing
of active pharmaceutical ingredients. Neclife also undertakes drug discovery
and development.
PRODUCT WISE PERFORMANCE
The
Indian Economy has grown up by 8% during the fiscal of 2006- 07. The global
pharmaceutical market generated revenues of US$ 643 billion in 2006, a 7%
growth over the previous year (source:
IMS Health). The pharmaceutical growth in 2006 continued to be driven by
increased population, higher longevity, strong economies and innovative
products. Less than 13% of the global
pharmaceutical market was unregulated and balance is dominated by the
regulated market such as US. Europe and Japan.
In terms
of value, however, the share was a low 20% due to the differential in value of
patented and generic products. force towards innovation, project planning and
implementation in oducts. R&D pipeline growth remained strong, especially
in the number of products in Phase I and Phase I clinical development. As per
an analysis of 47 top drug and drug delivery companies world-wide, by 2007,
1,345 products were in development (up 9% from previous year), including 146
filed NDAs and 263 drugs in Phase III.
Cardiovascular,
central nervous system, oncology, diabetes, endocrinology, gastrointestinal,
respiratory, urology and infectious diseases represented some of the
therapeutic areas with high levels of development activity. Of the total
pipeline, some 30% were biologic in nature. The developers of new molecular
entities are increasingly looking at outsourcing and partnership opportunities
to strengthen their pipelines as well as reduce timeand cost of new drug
development. The outsourcing market in the pharmaceutical and biotechnology
industry in 2006 was valued at US$ 100 billion, estimated to grow at 10.8% to
US$ 168 billion by 2009. API manufacturing contributed 55% of the outsourcing
pie, followed by clinical research (35%), drug discovery (25%) and dosage form development
(20%).
India
is the leading producer of mentha oil in the world with around 32000 metric
tons production in 2006. China and Brazil follow India in the list of major
producers on 2nd and 3rd place. Also, India leads the mentha oil exporting countries.
The consumption figures of menthol show that annual world consumption of
menthol is 20000 metric tons
PRODUCT WISE PERFORMANCE
Our
existing business operations are primarily concentrated on manufacturing and
marketing of Oral and Sterile Cephalosporins, select Semi Synthetic Pencillins
(SSPs) and Phytochemicals and its allied products. They currently manufacture
and sell comprehensive range of Cephalosporins and Phytochemicals Products.
They also engage in certain contract manufacturing for major pharmaceutical
players.
The
drugs intermediates manufactured are consumed captive to manufacture
Cephalosporins. The Sterile bulk drugs manufactured by the company are filled
in vials/ injections having various dosages such as 250 mg, 500mg, and 1gm.
Their Company has achieved total sales of Bulk drugs of Rs. 4651.800 Millions
for the financial year ended March 31, 2007. A domestic sale achieved during
this period was Rs. 2538.100 Millions whereas the export sales achieved was Rs.
2113.700 Millions.
|
CONTINGENT
LIABILITIES |
Rs in Millions |
|
Letter of Credit (Foreign / Inland) |
55.175 |
|
Bank Guarantees |
7.325 |
|
Bills Discounted |
226.530 |
|
Corporate
Guarantee given to SBI - Colombo against credit facilities availed by M/s Chempharma
(P) Limited, Sri Lanka |
216.678 |
|
Differential
amount of custom duty in respect of machinery imported under EPCG Scheme |
39.556 |
|
Claims not
acknowledged as debts:- **-Income Tax matters |
5.981 |
Fixed Assets :
Land And Building ,
Tube Well, Plant And Machinery, Boiler, Pollution Control Equipment,
Laboratory, Miscellaneous Fixed Assets, Furniture And Fixture, Motor Vehicles,
Computer Capital Work In Progress
AS PER
WEBSITE
NECTAR
LIFESCIENCES UNDERGOING RS.900.000 MILLIONS
EXPANSION
TO RAISE CAPITAL THROUGH AN IPO
Chandigarh; 30.05.2005: Nectar
Lifesciences Limited (“Company”) proposes to undergo a Rs.900.000 Millions
expansion.
The company is coming out with an Initial
Public Offer to finance the Sterile Cephalosporin US FDA approvable
plant at DeraBassi near Chandigarh and a formulations facility at Baddi in
Himachal Pradesh. The resources raised would also be utilized towards the
Research & Development and Corporate Quality Control Centre of the company
also to be put up at Dera Bassi.
The Initial Public Offere would constitute
of 3,870,000 Equity Shares of Rs.10 each consisting of Fresh Issue of Equity
Shares. The Offer would constitute 26% of the fully diluted post Offer paid-up
capital.
Nectar Lifesciences is one of the few
companies in India having facilities to manufacture Oral and Sterile bulk drugs
and supplies to major pharma players in the Indian. The company is among the
leading players in the Sterile SSP and Sterile Cephalosporins in the domestic
market. The c urrent expansion plan underway would enable the company to
increase its presence in the Cephalosporin segment and enter the Non-Antibiotic
segment.
The existing and proposed expansion would increase
the Company’s presence in the Cephalosporins segment, enables it to enter into
non-antibiotic and formulations segment along with providing the Company with
the ability to cater to the regulated markets. The formulations unit at Baddi
is in line with Company’s forward integration strategy whereby it would supply
the final product, as a one step further value added, to its customers.
Group Companies
The principal group company is Chempharma
Private. Limited. based in the Exports Oriented (tax free) zone in Sri Lanka ,
and is a wholly owned subsidiary of the Company. CPL was set up due to economic
and tax benefits of manufacturing products in Sri Lanka . In addition to
certain economic benefits of manufacturing products in Sri Lanka the project has
been conceptualized to take advantage of (i) ‘Nil’ custom duty on imports of
pharmaceutical raw material by CPL (ii) ‘Nil’ customs duty payable on exports
of API intermediates by CPL to India and (iii) Income-tax exemption.The
arrangement provides their Company the advantage of reducing its cost of
production on account of reduction in customs duty payable on imported raw
materials consumed for domestic market.
Chandigarh-based Nectar
Lifesciences Limited (NecLife) is amongst the largest
manufacturer and exporter of Cephalosporins and Semi Synthetic Penicillins.
Located in the foot hills of Himalayas, the manufacturing facilities in the
state of Punjab – India are spread over a massive area of 500,000 Square
Meters.
Chandigarh-based Nectar Lifesciences Limited (NecLife)
is amongst the largest manufacturer and exporter of Cephalosporins and Semi
Synthetic Penicillins. Located in the foot hills of Himalayas, the
manufacturing facilities in the state of Punjab – India are spread over a
massive area of 500,000 Square Meters.
Nectar Lifesciences was incorporated in
1995 by Mr. Sanjiv Goyal as a Joint Venture with Punjab State Industrial
Development Corporation Limited. (a Punjab State Government undertaking) for
the manufacture of oral and sterile (both lyophilized and crystalline) range of
APIs and formulations with manufacturing facilities at Derabassi, Punjab.
WHOLLY OWNED SUBSIDIARY
ChemPharma (Private) Limited, a wholly
owned subsidiary of NecLife is located at a distance of about 30 kilometers
from Colombo in Sri Lanka.
The facility manufactures bulk Active
Pharmaceutical Ingredients and various drug intermediates. The facility is a
100% Export Oriented Unit.
The day to day affairs of the company are
managed by Mr. Sanjiv Goyal in the capacity of Managing Director, a 1st
generation entrepreneur under the superintendence control and direction of the
Board of Directors of the company:
Mr. Sanjiv Goyal is assisted by a selected
team of professionals from various fields that form the core management and is
responsible for formulating growth strategies and future course of action to be
adopted.
WEALTH OF EXPERTISE
The company has a wealth of expertise in terms of seasoned and
experienced professionals from the field of marketing, finance, production, R
& D and other operational areas. NecLife recognizes that people are its
most valuable asset and their hard work and dedication leads to success of a
company.
Nectar Lifesciences Limited. (NecLife) is one of the few
qualitative manufactures in India having facilities to develop, manufacture
& market Oral and Sterile Cephalosporins, Semi Synthetic Penicillins and
other Active Pharmaceutical Ingredients (APIs).
• They are amongst
the few life saving APIs manufacturing companies, possessing facilities to
produce sterile APIs through both Lyophilization and Crystallization processes.
• They have ultra
modern manufacturing facilities supported by a very strong technology group. It
is a preferred Supplier to reputed / qualitative formulators in India and
abroad.
• The company has
a recognized ‘EXPORT HOUSE’ status with more than 36 per cent of the revenues
coming from export sales. Their products are exported to over 70 countries
across 5 continents.
• Their
products are WHO-GMP certified.
About Nectar Lifesciences Limited
Nectar Lifesciences Limited is player in
SSP and Cephalosporin range of intermediates, Oral & Sterile bulk drugs and
drugs in dosage forms like Capsules and injectibles. The Company is one of the
few companies in India having facilities to manufacture Oral and Sterile bulk
drugs. The company has a fully operational subsidiary Chempharma Private
Limited. (“CPL”) in Sri Lanka which has resulted in cost savings. Nectar has
been awarded recognition as an “Export House” by the Director General of
Foreign Trade, Ministry of Commerce, and Government of India.
Nectar Lifesciences
Limited had come out with an Initial Public Offer of 3,870,000
Equity Shares of Rs.10 each and has recently got on BSE and NSE. The revenues
for the Company have increased at a CAGR of 14.9% over the period FY00-05. For
the year ended March 31, 2005 on consolidated basis, the company achieved a
sales turnover of Rs.2298 millions
with an EBIDTA of Rs. 431 millions.
The Profit After Tax for the company for March 31, 2005 was at Rs.218.8 millions.
For more information:-
Harshwardhan Singh
Mutual PR, New Delhi
Tel: 011-24339863
Email: harsh@mutualpr.com
Nectar Lifesciences Lists at 25% Premium on NSE at Rs.300
Nectar Lifesciences Limited
today got listed at 25% on NSE at Rs.300, on BSE the company got listed at
Rs.298.90. The stock was issued at Rs.240, the upper end of the price band.
The company came out with an IPO of
38,70,000 equity shares of Rs.10 each which closed for subscription on
28.06.2005 . The IPO had received a huge response from the investing community
and was subscribed more than 15 times at Rs.240/-the upper end of the price
band.
The Qualified Institutional Buyers (QIB)
portion was subscribed around 19 times whereas the High Networth Individuals
(HNI’S) has been subscribed 15 times. The retail individual bidders saw the
subscription of 12 times. The Total numbers of application received by the
company was 99577 showing a huge overall response.
Nectar is among the leading manufacturer
and exporter of Sterile Cephalosporins and Sterile Semi Synthetic Penicillin’s
in India had come out with an Initial
Public Offer of 3,870,000 Equity Shares of Rs.10 each.
Business News
Nector Lifesciences goes for expansion, boosts
exports
Kolkata, Jun 16 (UNI) Nector Lifesciences Limited,India's second largest
manufacturer of Cephalosporin range of drugs,is poised for a Rs 86 crore
capacity expansion cum modernisation programme at its Baddi(HP) and
Derabassi(Punjab)plants to boost export volumes.
Announcing this NLL Managing Director Sanjiv
Goal here today said with a view to raising necessary funds they are entering
the capital market on June 22 for about a week with an Initial Public Offerings
(IPO) with 3870,000 equity shares of Rs ten each.
The funds being raised through the IPO would
be entirely used for financing the formulating facility at the Company's new
Baddi plant in Himachal Pradesh at a cost of Rs 312 millions, besides the expansion of the sterile
cephalosphin approved plants and its Research and Development facilities at
Derabassi near Patiala in Punjab at a total cost of Rs 61 crores, Mr Goal said.
He said following the implementation of the
capacity exapansion programme by next year, the overall export basket of NLL
would go up from about 25 per cent of total sales to at least 50 per cent of
that figure from 2005-06.
"Last year their export volume was to
the tune of Rs 650 millions
which they expect to go up to over Rs 2000 millions
from next year," Mr Goal said adding
that during the period the number of exporting countries would also go up from
21 in the Middle East,Latin America,South East Asia and the SAARC countries to
around 30 after clinching fresh orders from the USA and several European
countries.
Also keeping the future growth in mind NLL
had set up a wholly owned subsidiary called Chempharma Private Limited near
Colombo in Sri Lanka in 2004 with a total investment of about Rs 200 millions
to work as an intermediatary unit. The Sri
Lanka unit which produced only semi-finished products and capsules, sent their
products to NLL national plants for exports."However, we have no plan for
capacity expansion in their Sri Lanka unit," he said.
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.41.96 |
|
UK Pound |
1 |
Rs.83.78 |
|
Euro |
1 |
Rs.65.82 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
64 |
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 |
|