MIRA
INFORM REPORT
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Report Date : |
05.06.2008 |
IDENTIFICATION
DETAILS
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Name : |
GRANULES INDIA LIMITED |
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Registered Office : |
Second Floor, Block III, My Home Hub, Madhapur, Cyberabad,
Hyderabad – 500 081, Andhra Pradesh |
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Country : |
India |
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Financials (as on) : |
30.06.2007 |
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Date of Incorporation : |
18.03.1991 |
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Com. Reg. No.: |
01-12471 |
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CIN No.: [Company
Identification No.] |
L24110AP1991PLC012471 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDG00432F |
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PAN No.: [Permanent
Account No.] |
AAACG7369K |
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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 : |
Manufacturers and Marketers of Bulk Drugs, Granulations and Tablets. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 8700000 |
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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 having resourceful businessmen. Their trade relations are fair. Payments are usually correct and as per commitments. The company can be considered normal for business dealing at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
Second Floor, Block III, My Home Hub, Madhapur, Cyberabad, Hyderabad – 500 081, Andhra Pradesh, India |
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E-Mail: |
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Corporate Office/ Factory 1 : |
8-2-293/A/A/2, Plot # 227, Road No. 2, Banjara Hills, Hyderabad – 500 033, Andhra Pradesh, India. |
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Tel. No.: |
91-40-23747093 / 23748834 / 23740425 / 23744135 / 23742541 / 23553266 / 23550884 |
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Fax No.: |
91-40-23745478 / 23547894 |
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E-Mail : |
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Website : |
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Factory 2 : |
Plot No. 15A/1, Phase III, I.D.A. Jeedimetla, Hyderabad – 500 055, Andhra Pradesh, India |
DIRECTORS
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Name : |
Mr. C Nageswara Rao |
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Designation : |
Chairman |
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Profile : |
He
is a leading medical practitioner. He is the Chairman of the AP Medical Council,
he has been a member of the All India Medical Council and was also on the
Board of Hindustan Antibiotics Limited. |
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Name : |
Mr. C Krishna Prasad |
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Designation : |
Managing Director |
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Profile: |
Granules
India is promoted by Mr. C. Krishna Prasad, a technocrat with several years
of experience in the pharmaceutical industry. Mr. Krishna Prasad is the
Managing Director and is supported by an experienced Board of Directors |
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Name : |
Mr. N R Ganti |
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Designation : |
Director |
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Profile : |
He
is a management consultant with over 30 years of experience in banking and
management. He is an MBA specialising in strategy and finance. He is a member
of the team responsible for the company's long-term goals and objectives. |
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Name : |
Mr. L S Sarma |
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Designation : |
Director |
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Profile: |
He
is an ex senior banker at IDBI. He has vast experience in financial matters and
has also served on the board of Dena Bank. He is currently on the boards of
other reputed companies |
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Name : |
Mr. A P Kurian |
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Designation : |
Director |
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Profile: |
He
is an eminent investment banker and is currently the Chairman of the Association
of Mutual Funds of India. He also serves on the boards of a few well-known
companies |
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Name : |
Mr. Stephen R
Olsen |
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Designation : |
Nominee Director |
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Profile: |
He has been Senior Vice President of Sales (America), Global
Marketing and Research & Development of International Specialty Products
Inc. (“ISP”), which is the indirect parent company of ISP Investco LLC, and
certain of its subsidiaries, including ISP Chemco LLC (“Chemco”), which is
the holding company for ISP’s operating subsidiaries, since January 2006 and
has been a director of Chemco since June 2005. He was previously Senior Vice
President North America Sales and Marketing of ISP and Chemco and some of its
subsidiaries from September 2004 until January 2006. |
KEY EXECUTIVES
|
Name : |
Mr. Sachin Guha |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 31.03.2008:-
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Indian |
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Individuals / Hindu |
5132764 |
26.34 |
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Bodies corporate |
749127 |
3.84 |
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Foreign |
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Individuals [Non Resident Individuals / foreign] |
54800 |
0.28 |
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Public
Shareholding |
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Institutions |
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Financial Institutions / Banks |
2000 |
0.01 |
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Insurance Companies |
6356 |
0.03 |
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Foreign Institutional Investors |
1095579 |
5.62 |
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Non-institutions |
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Bodies Corporate- Domestic |
786257 |
4.04 |
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Foreign Bodies Corporate |
6448845 |
33.10 |
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Individuals |
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Individuals -i. Individual shareholders holding nominal
share capital up to Rs 0.100 Million |
4109142 |
21.09 |
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ii. Individual shareholders holding nominal share capital
in excess of Rs. 0.100 Million |
446037 |
2.29 |
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Any Other (specify) |
653207 |
3.35 |
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Shares held by Custodians and against which Depository
receipts have been issued |
573040 |
--- |
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Total |
20057154 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers and marketers of Bulk Drugs, Granulations and Tablets. |
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Products : |
Bulk Drugs |
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Exports : |
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Countries : |
U.S.A., Germany, Spain, Mexico, Hong Kong, Australia, Europe, etc |
PRODUCTION STATUS
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Particulars |
Unit |
Installed
Capacity |
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APIs |
Metric tones |
3713.280 |
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PFIs |
Metric tones) |
6480.000 |
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Tablets ( in 1000 Nos ) |
--- |
1 72800 |
GENERAL
INFORMATION
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Customers : |
v Roussel Corporation, U.S.A. v Granueltec, U.S.A. v Helm NY Chemicals, U.S.A. v Welding GmbH & Company, Germany v Flavine Espanasa, Spain |
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No. of Employees : |
478 |
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Bankers : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Kumar and Giri Chartered Accountants |
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Associates/Subsidiaries : |
Granules USA, Inc. |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
30000000 |
Equity Shares |
Rs.10/- each |
Rs. 300.000 millions |
Issued, Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
20023634 |
Equity Shares |
Rs.10/- each |
Rs. 200.236 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
30.06.2007 [12 Months] |
30.06.2006 [12 Months] |
30.06.2005 [12 Months] |
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SHAREHOLDERS
FUNDS |
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1] Share Capital |
202.000 |
123.700 |
123.266 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves &
Surplus |
1526.200 |
702.000 |
629.995 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH
|
1728.200 |
825.700 |
753.261 |
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LOAN FUNDS |
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1] Secured Loans |
845.500 |
1164.000 |
884.368 |
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2] Unsecured
Loans |
178.600 |
107.500 |
55.926 |
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TOTAL BORROWING
|
1024.100 |
1271.500 |
940.294 |
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DEFERRED TAX
LIABILITIES |
0.000 |
0.000 |
38.928 |
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TOTAL
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2752.300 |
2097.200 |
1732.483 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
|
1282.000 |
1187.300 |
533.177 |
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Capital work-in-progress
|
713.400 |
236.900 |
365.717 |
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INVESTMENT
|
187.200 |
5.400 |
4.415 |
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DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS &
ADVANCES
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Inventories
|
198.900
|
209.000
|
201.510
|
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Sundry Debtors
|
227.000
|
616.500
|
457.251
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Cash & Bank Balances
|
271.000
|
47.200
|
222.157
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Other Current Assets
|
0.000
|
0.000
|
1.862
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Loans & Advances
|
168.200
|
122.400
|
102.938
|
Total Current Assets
|
865.100
|
995.100
|
985.718 |
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Less :
CURRENT LIABILITIES & PROVISIONS
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Current Liabilities
|
278.700
|
325.700
|
160.248
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Provisions
|
31.700
|
19.000
|
17.557
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Total Current Liabilities
|
310.400
|
344.700
|
177.805 |
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Net Current Assets
|
554.700
|
650.400
|
807.913
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MISCELLANEOUS EXPENSES
|
15.000 |
17.200 |
21.261 |
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TOTAL
|
2752.300 |
2097.200 |
1732.483 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
30.06.2007 [12 Months] |
30.06.2006 [12 Months] |
30.06.2005 [12 Months] |
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Sales Turnover |
1951.900 |
1815.800 |
1375.900 |
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Other Income |
24.600 |
5.200 |
8.700 |
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Total Income |
1976.500 |
1821.000 |
1384.600 |
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Profit/(Loss) Before Tax |
134.900 |
113.400 |
82.700 |
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Provision for Taxation |
33.700 |
20.900 |
16.100 |
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Profit/(Loss) After Tax |
101.200 |
92.500 |
66.600 |
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Export Value |
NA |
1333.811 |
917.325 |
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Import Value |
NA |
NA |
420.178 |
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Expenditures : |
|
|
|
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Raw Materials |
1072.100 |
1071.200 |
879.300 |
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Excise Duty |
94.900 |
53.100 |
31.700 |
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Power & Fuel Cost |
77.400 |
57.900 |
38.900 |
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Other Manufacturing Expenses |
82.100 |
57.200 |
48.100 |
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Employee Cost |
120.100 |
76.100 |
59.400 |
|
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Selling and Administration Expenses |
181.500 |
180.300 |
128.600 |
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Miscellaneous Expenses |
10.100 |
13.500 |
9.500 |
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Interest & Financial Charges |
120.300 |
102.500 |
88.800 |
|
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Depreciation |
81.800 |
52.100 |
32.200 |
|
|
Stock Adjustments |
1.300 |
43.700 |
[14.600] |
|
Total Expenditure |
1841.600 |
1707.600 |
1301.900 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.09.2007 |
31.12.2007 |
31.03.2008 |
|
Type |
1st Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales Turnover |
500.300
|
529.400 |
494.700 |
|
Other Income |
0.800
|
10.000 |
2.300 |
|
Total Income |
501.100
|
539.400 |
497.000 |
|
Total Expenditure |
423.400
|
454.900 |
411.500 |
|
Operating Profit |
77.700
|
84.500 |
85.500 |
|
Interest |
26.800
|
29.200 |
30.000 |
|
Gross Profit |
50.900
|
55.300 |
55.500 |
|
Depreciation |
23.300
|
23.600 |
25.000 |
|
Tax |
02.900
|
3.500 |
3.200 |
|
Reported PAT |
20.200
|
22.900 |
20.200 |
KEY RATIOS
|
PARTICULARS |
|
30.06.2007 [12 Months] |
30.06.2006 [12 Months] |
30.06.2005 [12 Months] |
|
|
|
|
|
|
|
PAT / Total Income |
(%) |
5.12
|
5.07 |
4.81 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
6.91
|
6.24 |
6.01 |
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|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.28
|
5.19 |
5.44 |
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|
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Return on Investment (ROI) (PBT/Networth) |
|
0.07
|
0.13 |
0.10 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.77
|
1.95 |
1.48 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.78
|
2.88 |
5.54 |
LOCAL AGENCY
FURTHER INFORMATION
History
Incorporated as a private
limited company in 1991, Granules India was converted into a public limited
company in Feb.'93. It commenced its operations in Apr.'91 as a merchant exporter
of bulk drugs like paracetamol, guaifenesin and chloro pheniramine maleate.
The company exports to the
US, Europe, Mexico and Hongkong. Since 1992, subject concentrated on export of
paracetamol powder. In Aug.'94, subject took over Triton Laboratories (TL), a
group company from which subject was procuring the drugs for exports. Subject
also acquired a sick unit which was manufacturing bulk drugs, from the Andhra
Pradesh State Financial Corporation (APSFC) in Mar.'94.
Subject implemented the
ongoing project taken over from TL to manufacture bulk drugs like folic acid,
salbutamol sulphate, brom pheniramine maleate and direct compression (DC)
blends of paracetamol, through the process of granulation. The unit, an EOU, is
located at Hyderabad, Andhra Pradesh. Commercial production of folic acid
commenced in Aug.'95. It came out with a public issue in Sep.'95 to
part-finance this project.
Company has completed
expansion of Guaifenesin capacity from 100 Mts to 240 Mts per annum. Company
had developing new products like Brom Pheniramine Maleate and Chloro
Pheniramine Maleate, and is in process of developing new bulk drug for the
export market. Company is very much hopeful about company's performance due to
expansion of project will be completed in the current year.
The Company set up a 100%
marketing subsidiary in US to enhance its exposure in the large pharmaceutical
market in the world. The Gagillapur plant commences its commercial production
of Line II(installed capacity 3200 MT) which was commenced its July,2003 and
the remaining 4000 MTPA is expected to go on stream in the first half of
2003-04. The total project cost is Rs.300 millions.
SUBSIDIARY
COMPANY
Granules Usa Inc.
Granules USA Inc., a wholly owned subsidiary company, operates for
the marketing requirements of the Company in USA. The turnover of the
subsidiary Company has increased considerably from Rs. 345.600 Millions to Rs.
558.500 Millions showing a growth of 62%.
MANAGEMENT
DISCUSSION AND ANALYSIS
Industry overview
Over-the-Counter (OTC) drug
An OTC drug is a product marketed for use by the consumer without the
intervention of a healthcare professional to obtain it. This makes it is a
non-prescription drug.
OTC drug marketed under monographs
The OTC monograph represents regulatory standards for the marketing of
non-prescription drugs not covered by new drug applications (NOAs) and
abbreviated new drug applications (ANDAs). These standards provide the
marketing conditions for some OTC drugs including the active ingredients,
labeling, and other general requirements. If the standards of the applicable
monograph are met, pre-clearance by the FDA is not required for marketing of
such OTC products.
OTC drugs marketed after approval of ANDAs (Prescription to OTC switch)
Prescription to OTC switch refers to over-the-counter marketing of a product
that was once a prescription drug for the same indication, strength, dose,
duration of use, dosage form, population, and route of administration. Such OTC
products require ANDA approvals before marketed for tie use of consumers.
OTC drugs marketed after approval of NDAs
All OTC drugs apart from OTC monographs require a pre-clearance from the USFDA
before it is marketed to the consumers. The clearance is given on the basis of
new drug applications filed with the above regulatory authority with relevant
and exhaustive details on the safety and effectiveness of the drug.
The OTC industry scenario
- The top 10 manufacturers account for more than 55% of
total sales in 2005.
- In 2005, Johnson and Johnson, Wyeth, Pfizer and Bayer were the leading
companies.
- With the announced acquisition of Pfizer's OTC unit by Johnson and Johnson,
the top 10 companies will be even larger and more powerful in the years to
come.
- Some of the therapeutic areas where the OTC drugs play a significant role are
allergic rhinitis, analgesics, asthma/respiratory conditions, benign prostatic
hypertrophy, gastroesophageal reflux disease, glaucoma, hypertension, nicotine
addiction and osteoporosis.
- Drug stores are the primary outlets where OTC drugs are sold.
- Alternative outlets like warehouse clubs, dollar stores and online retailers
continue to gain in prominence.
The OTC pharmaceuticals market in the US
The US market for select OTC drugs at the manufacturer level, is estimated at
over USD 10 billion. This will increase to approximately USD 13 billion by
2007. OTC drugs are becoming increasingly important in the US healthcare
system. More than 80 therapeutic categories of OTC drugs are on the market
ranging from acne drugs to weight control products.
The OTC pharmaceuticals market in the UK
In the UK it is estimated that the OTC pharmaceuticals market is worth pound
2.1 billion in 2005, a rise of 3.7% on 2004. Key Note forecasts that future
annual growth in the market will rise year on year from 4.5% in 2006 to 6.5% by
2010.
The OTC pharmaceuticals market in developing countries
Populous Asia Pacific markets such as Indonesia, China and India, are expected
to show rapid growth due to increasing populations, evolution of their middle
class, improving economic conditions, increased health awareness, demand for
smoking cessation aids and stress relief products as well as the need to reduce
the cost of public healthcare provision for ageing populations.
Growth drivers in the OTC industry
Growth in this segment is expected to come from several factors, for
instance:
Ageing populations: Problems associated with ageing, including arthritis and
osteoporosis, are driving the demand for products such as analgesics, digestive
remedies and dietary supplements in the developed economies of North America,
Japan, Western Europe and also in the emerging markets, such as Eastern Europe
and Asian markets including China, Indonesia, India and the Philippines.
Self-medication: Health awareness is expected to underpin the continuing
consumer trend towards self-medication, as preventative medicine is deemed the
more economic and convenient option over the increasingly high costs associated
with visits to healthcare professionals.
Prescription to OTC switches: Prescription-to-OTC switches are expected to
regain momentum both in the US and UK markets through a more streamlined
delisting process, relaxation of regulations and the entry of new products into
the OTC market.
Retail outlets: Through a relaxation of regulations, a greater variety of
retail outlets are being permitted to sell OTC products like warehouse clubs,
dollar stores, online retailers and direct sales through non-pharmacy channels
in order to improve access to the general public.
Smoking restrictions; Restriction on tobacco advertising and smoking in public
places is expected to increase the number of consumers electing to give up the
habit, consequently driving the growth of smoking cessation aids.
Charging lifestyles: Increasingly hectic and stressful modern lifestyles will
provide the backdrop for dynamic sales of stress relief, calming and sleeping
products.
Higher disposable incomes: Increased disposable incomes among middle-aged
consumers are also expected to lead to a greater emphasis on lifestyle OTC
products, resulting in a sales growth in products such as hair loss treatment
and smoking cessation aids, health drinks etc.
Granules India in the OTC space
Granules India has established itself as the preferred outsourcing partner in
the international pharmaceutical industry. Though it is partnering other
pharmaceutical companies in the manufacturing and development of prescription
products, the Company has a more prominent presence in the manufacture and
development of OTC products. In the OTC space, Granules has consolidated itself
totally and has a marked presence in every level of the OTC value
pyramid.
Demand constraints in the OTC
space
While increasing segmentation, such as the development of products targeted at
niche consumer groups - children, men, women, or the elderly - is expected to
add value to the global market, particularly in the most mature markets, the
rise in popularity of competing products such as reimbursable prescription (Rx)
medicines and homeopathic remedies is expected to inhibit OTC growth.
Euromonitor reports that increasingly health-conscious and prosperous consumers
are seeking more efficacious or holistic remedies through prescription drugs or
homeopathic products.
However, if the Government were to take certain actions, such as limiting the
availability of free prescriptions, market growth could alter
significantly.
OTC industry: Outlook
The most likely forecast for sales of the non-prescription drugs industry is an
average 2.4% growth per year to reach USD 18.6 billion in 2010. Future
Rx-to-OTC switches, new product introductions, the ageing of the population,
high levels of advertising support and a focus on core brands by large
companies will drive growth. The year 2006 looks set to see the launch of
products with greater potential in the OTC market with the advent of
Sanofi-Aventis' Acomplia for the treatment of obesity and smoking
cessation.
The global pharmaceutical industry and its charging environment
The US leads global pharmaceutical sales with over one-third of the global
market, followed by Europe (23.5%) and Japan (15.9%) (based on 1999
figures).
In addition to USA being the largest consumer of drugs, it also leads the
global pharmaceutical R and D, accounting for 36% of global research as well as
global drug development, accounting for 45% of major drugs developed between
1975 and 1994.
In recent times, the global pharmaceutical industry has been witnessing a
striking change in its business environment. A host of generic drugs have
entered the market after the expiry of their respective product patents. This
has resulted in increasing competition and declining drug prices in the whole
industry, further aggravated by a governmental pressure on price reduction.
Thus, margins of most pharmaceutical companies have eroded rapidly in the last
few years.
Besieged by the ever-increasing cost pressures, shorter product life cycles and
numerous regulatory challenges in the West, the industry is increasingly
shifting/outsourcing its manufacturing and Research and Development (R and D)
activities to other low cost developing nations especially India and
China.
Operational
review
API Division
The API facilities of the Company are located at Jeedimetla
and Bonthapally. Its single plant at Jeedimetla has a capacity of manufacturing
about 1,000 tons of APIs annually while its two plants located at Bonthapally
together have an annual capacity of manufacturing 12,000 tons of APIs. The
plant at Jeedimetla primarily manufactures APIs like Guaifenesin and Metformin
etc., while the Bonthapally plants manufacture Paracetamol /
Acetamenophen.
Outlook
Armed with large-scale facilities for APIs, PFIs and Finished Dosages, all
capable of going through any regulatory requirement, Granules is all set to
emerge as a world leader in pharmaceutical outsourcing and strengthen its
presence the value chain across the foreseeable future.
FIXED ASSETS :
- Land
- Buildings
- Plant and Machinery
- Lab equipment
- Material Handling equipment
- Electrical Installations
- Office equipment
- Furniture and Fixtures
- Computers
- Vehicles
Subject has presence
in over 27 countries
The company’s
facilities have been inspected and certified by :
v
Australian TGA
(Therapeutic Goods Administration)
v
German Health
Authority
v
Certificate of
Suitability (European Department for the Quality of Medicines, Strasbourg)
v
USFDA (General
GMP)
AS PER WEBSITE
They are headquartered in Hyderabad, the pharmaceutical
capital of India. They have the expertise in manufacturing APIs since 1984 and
PFIs since 1993. They have been marketing their products in the United States
since 1987.
Subject has posted a sales of about Rs. 1800.000 millions in 2005-06. Their
strategic goal is to offer a complete vertical integrated solution.
The company is a producer of active pharmaceutical
ingredients (API's) and pharmaceutical formulation intermediates (PFIs) with
complete vertical integration. They support customers with unique value,
extensive product range and a global network of associates. Their expertise in
manufacturing Pharmaceutical Formulation Intermediates (PFIs), which are
Directly Compressible Granules, has helped customers to move to the next level
of outsourcing in the pharmaceutical industry.
The PFI plant is one of the biggest in the world with an annual capacity of
7200MT and a batch size of 6MT. The plant is approved by USFDA, German Health
Authority, Canadian TPD and Australian TGA. GIL is also coming up with a state
of the art tableting facility which will have a capacity of 12 Billion tablets.
This new tableting facility will be operational by October 2007.
The company makes use of an intelligently integrated production processes in
order to manufacture a broad assortment of products, there by supplying a wide
range of products and service to their customers in a flexible and reliable
manner. Their products can be used in a range of pharmaceutical applications,
and they are constantly developing new products and variants to meet their
customers' specific requirements.
Part of their commitment to the pharmaceutical industry is a high level of
customer service: their product specialists, supported by application
technologists, research scientists and regulatory advisers are able to provide
immediate advice and customer support. By offering unique products and a high
level of customer support, they can offer their customers the competitive
advantage that is vital in the highly competitive pharmaceutical sector.
Their strategy is to adopt a geo-politically neutral stance which reinforces
their role as a supply chain partner to their customers. They constantly
conduct their selves in a manner that helps them to fully achieve their
self-established standards and further enhance the image of GIL.
Promoter
The Managing Director, Mr. Krishna Prasad, is the
chief promoter of Granules, bringing with him rich experience of over two
decades in setting up and the management of pharmaceutical (bulk drugs)
manufacturing units.
In 1984-85, he set up a small-scale unit for manufacturing of Acetaminophen/
Paracetamol that went on to become one of the largest Indian manufacturers of
Acetaminophen/paracetamol and was an exporter to the US markets since 1988. Mr.
Prasad, while marketing the product in US realized the potential for selling a
value added version of the bulk active, known as Directly Compressible product.
Mr. Prasad had anticipated, way back in late 80's that major global
pharmaceutical companies would outsource their manufacturing activities to
countries like India with inherent cost advantages coupled with regulatory
compliance skills and a vast pool of trained manpower.
Subject was incorporated in 1991 with an objective of becoming a preferred
outsourcing partner for major pharmaceutical companies in the regulated market
and there was no looking back since then.
Mr. Prasad, as the CEO and the Marketing chief at Granules, pioneered and
popularized the concept of Pharmaceutical Formulations Intermediates (PFIs) as
a cost efficient and extremely convenient product for the global formulations
manufacturers. These PFIs are pre-processed blends of single or multiple APIs,
ready to be compressed into tablets or filled into capsules. They represent an
intermediate stage between APIs and formulations and their manufacture is
referred to as granulation.
Subject is a fully integrated pharmaceutical formulations manufacturer.
Offering one-stop solutions to pharmaceutical companies. From the manufacture
of several strategic APIs to multiple PFIs to finished dosages of tablets and
capsules. Facilitating global pharmaceutical companies to offer affordable
medicines to their consumers
At the company, it is not just important to be profitable for the moment, but to be on a sustainable basis. This sustainability is no longer an economic requirement, but an environmental one as well.
In view of this, the company has embarked on a number of environment-management initiatives like the following:
The implementation of 'Environmental Best Practices' at the company's Gagillapur plant (recognised by CII).
Delegation of eco-friendly Delegation of eco-friendly measures to employee levels.
The use of sophisticated equipment to collect the dust generated during process activities and material transfer.
Conversion of the entire plant into a non-smoking area.
Activities
The company's robust environment management comprises the following:
· Wastewater analyses on effluent samples.
· A frequent test and monitor of the ground water, soil, ambient air, stacks and noise levels.
· Over the years, the company expects to strengthen its environment standards: a common effluent treatment plant will be reinforced by a cleaner technology to minimise liquid effluent, gaseous emission and solid waste.
Liquid effluents
They are separated into high TDS-high COD effluents and low TDS-low COD effluents High TDS-high COD effluents are collected separately at generation plants. Following primary treatment, they are evaporated; the residue is sent to the Hyderabad Waste Management Project for safe disposal.
Low COD effluents are collected in a common sump. Following homogenisation and pH adjustments, they are discarded to the CETP for onward treatment and disposal.
Hazardous solid waste
management :
Hazardous solids from various production stages and effluent collection tanks are sent to the Hyderabad Waste Management Project for safe disposal.
Gaseous emissions
Gaseous emissions are scrubbed, cleaned and made harmless with suitable chemical reagents before they are released.
Green belt development
The planting of a green belt around the plant has helped neutralise
pollution. They plan to construct a green building comprising natural light,
natural cooling through roof garden on the terrace, use of environment-friendly
fly ash cement and solar energy
NEWS ;-
Matchland Private Limited and G I L signing an Outsourcing
Agreement (05.03.2007)
Monday,
March 05, 2007
Matchland
Private Limited, (trading as New Products Development) and Granules India
Limited are pleased to announce the signing of an Outsourcing Agreement where
New Products Development agrees to outsource its finished dosage manufacturing
requirement to Granules India for the Australian market.
Initially
five products have been identified for manufacturing and this list is expected
to grow as the relationship progresses. The agreement is in the nature of the
partnership where New Products Development will compensate Granules for all the
costs incurred in connection with the manufacture of the product and provide a
transparent profit margin. This would be New Products Development’s first
Outsourcing Agreement with any Indian Company and complements Granules strategy
of expansion into lesser explored markets like Australia and New Zealand.
Commenting on the deal, Mr. C .Krishna Prasad, Managing Director said, they are
planning to use their TGA approved pilot manufacturing capabilities to
kickstart the manufacturing as soon as possible.
About New Products Development
Established
in 1988, New Products Development has grown to become a major provider in the
pharmaceutical contract manufacturing industry, and is licensed by the
Therapeutic Goods Administration (TGA) to manufacture non-sterile therapeutic
goods for human use. New Products Development is an independent contract
manufacturer with the capacity and capability to manufacture and pack unscheduled
medicinal products in tablet, capsule and powder dosage form.
About Granules India Limited,
(BSE:
532482, NSE: GRANULES, Reuters: GRAN.BO)
Granules
India Limited is a fully integrated pharmaceutical formulations manufacturer
with the world’s largest ‘granulation’ capacity. The company manufactures
several strategic Active Pharmaceutical Ingredients (APIs) and multiple
Pharmaceutical Formulation Intermediates (PFIs), which are distributed in 35
countries. It is foraying into manufacturing of tablets with a capacity of 6
billion tablets per annum. This facility will strengthen its presence in the
pharma outsourcing space as it will have capabilities of offering a wide range
of products beginning from APIs to finished dosages (coated/uncoated).
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.42.63 |
|
UK Pound |
1 |
Rs.83.40 |
|
Euro |
1 |
Rs.65.80 |
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 |
8 |
|
--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 |
YES |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
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 |
|