MIRA INFORM REPORT

 

 

Report Date :

14.03.2008

 

IDENTIFICATION DETAILS

 

Name :

NICHOLAS PIRAMAL INDIA LIMITED

 

 

Registered Office :

Nichola Piramal Tower, Ganpatrao Kadam Marg, Lower Parel, Mumbai – 400013, Maharashtra

 

 

Country:

India

 

 

Financials (as on):

31.03.2007

 

 

Date of Incorporation :

26.04.1947

 

 

Com. Reg. No.:

11-5719

 

 

CIN No.:

[Company Identification No.]

U24110MH1947PLC005719

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMN07675D

 

 

PAN No.:

[Permanent Account No.]

AAACN4538P

 

 

Legal Form :

A closely held Public Limited Liability Company.

 

 

Line of Business :

Manufacturers of tablets, capsules, liquids, powders, creams & ointments, granules, bulk drugs & intermediates, vitamin A in various forms and combinations, sodaline and borosilicate and also glass manufacturers.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa

 

RATING

STATUS

PROPOSED CREDIT LINE

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

Large

 

Maximum Credit Limit :

USD 42200000

 

 

Status :

Excellent

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well-established and reputed pharmaceutical company having fine track. Directors are reported as well known industrialists. Their trade relations are fair. General financial position of the company is good. Business is active. Payments are usually correct and as per commitments.

 

The company can be considered good for any normal business dealings. 

 

LOCATIONS

 

Registered Office :

Nichola Piramal Tower, Gnapatrao Kadam Marg, Lower Parel, Mumbai – 400013, Maharashtra, India.

Email :

sectdept@pel.co.in

 

 

Head Office :

100, Centrepoint, Dr. Ambedkar Road, Parel, Mumbai – 400 012, Maharashtra, India

Tel. No.:

91-22-66636666/24134653/24102082

Fax No.:

91-22-24163787/24172861/24163787/24144687

E-Mail :

spiramal@giasbm01.vsnl.net.in  / spiramal@giasbm01.vsnl.net.in

Website :

http://www.nicholaspiramal.com 

 

 

Administrative Office :

Morarjee Mills Compound, Administrative Building, Dr. Ambedkar Road, Parel, Mumbai - 400 012, Maharashtra, India

Tel. No.:

91-22-66636666

Fax No.:

91-22-66636416

E-Mail :

vidula@bom3.vsnl.net.in

 

 

Plant Locations :

 

India :

  • Plot No. 67-70, Sector II, Pithampur - 454 775, Madhya Pradesh

 

  • Plot No. K-I, Additional MIDC, Mahad, District Raigad, Maharashtra

 

  • L.B.S. Marg, Mulund (West), Mumbai - 400 080, Maharashtra

 

  • Balkum, Thane - 400 608, Maharashtra

 

  • Ennore Express Highway, Chennai - 600 057, Tamilnadu, India

 

  • Digwal Village, Medak District, Andhra Pradesh, India

 

  • Plot 903/904, GIDC Industrial Estate, Ankleshwar, Gujarat

 

  • Research and Development Center, Goregaon, Mumbai

 

  • Baddi, Himachal Pradesh

 

  • Pawne Mahape, Navi Mumbai, Maharashtra

 

  • Plot No. 6505 /3, Sachin – 394 230, Surat

 

Overseas:

 

Nicholas Piramal  Pharmaceuticals (UK) Limited

  • Morpeth, UK

 

  • Huddersfield, West Yorkshire, UK

 

  • Grangemouth, Stirlingshire, UK

 

  • Blackley, Manchester, UK

 

  • Billingham, Cleveland, UK

 

Torcan Chemical Limited (Canada)

  • Aurora, Ontario, Canada

 

 

DIRECTORS

 

Name :

Mr. Ajay G. Piramal

Designation :

Chairman

Age :

48 Years

Qualification :

B.Sc, M.M.S., A.M.P.

Date of Joining :

1st April 1997

Experience :

26 Years

Last Employment and Position Held :

Morarjee Goculdas Spring and weaving. Company Limited as Chairman and Managing Director

 

 

Name :

Mr. C. M. Hattangdi

Designation :

Director

 

 

Name :

Mr. Y. H. Malegam

Designation :

Director

 

 

Name :

Mr. Rajesh Khanna

Designation :

Director

 

 

Name :

Mr. G. P. Goenka

Designation :

Director

 

 

Name :

Dr. William Jenkins

Designation :

Director

 

 

Name :

Ms. Urvi A. Piramal

Designation :

Director

 

 

Name :

Mr. Harsh Piramal

Designation :

Director

 

 

Name :

Mr. R. A. Shah

Designation :

Director

 

 

Name :

Mr. Vijay Shah

Designation :

Director & Chief Operating Officer

Age :

47 years

Qualification :

B.Com., F.C.A. AMP (Harvard)

Date of Joining :

14.12.1887

Experience ;

24 years

Last Employment and Position Held :

Management Structure and Systems Private Limited- Sr. Consultant

 

 

Name :

Mr. M. R. Shroff

Designation :

Director

 

 

Name :

Mr. N. Vaghul

Designation :

Director

 

 

Name :

Mr. S. Venkitaramanan

Designation :

Director

 

 

Name :

Mr. Deepak Satwalekar

Designation :

Director

 

 

Name :

Mr. S. Ramadorai

Designation :

Director

 

 

Name :

Dr. (Mrs.) Swati A. Piramal

Designation :

Director-Alliances and Communications & Chief Scientific Officer

Age :

49 Years

Qualification :

M.B.B.S, D.I.M., M.P.B. (Harvard)

Date of Joining :

01.10.1994

Experience ;

24 Years

Last Employment and Position Held :

Gopikrishnan Piramal Memorial Hospital as a Medical Director

 

 

Name :

Mr. Keki Dadiseth

Designation :

Director

 

 

Name :

Mr. Michael Fernandes

Designation :

Director

 

 

KEY EXECUTIVES

 

Name :

Mr. Leonard D'Souza

Designation :

Company Secretary

 

 

 

Management Committee:

 

 

Name :

Mr. Harsh Piramal

Designation :

Chief Operating Officer

Age :

30 Years

Qualification :

B.Sc., MBA

Date of Joining :

20th June 2002

Experience :

6 Years

Last Employment and Position Held :

Indocean Chase as Analyst

 

 

Name :

Mr. N Sanathanam

Designation :

Group President – Finance and Legal and Chief Financial Officer

Age :

56 Years

Qualification :

B.Com, C.A.

Date of Joining :

26th December 2001

Experience :

32 Years

Last Employment and Position Held :

The Bombay Dyeing and Manufacturing Company Limited as Group Senior ice President (Corporate Affairs)

 

 

Name :

Mr. Shreekant Gupte

Designation :

Director

 

 

Name :

Dr. Somesh Sharma

Designation :

Chief Scientific Officer

Age :

60 Years

Qualification :

Ph.D.

Date of Joining :

21ST October 2002

Experience :

27 Years

Last Employment and Position Held :

Monoclonal Antibody and Vaccine Business Unit, Anosys Inc. California as Senior Vice President.

 

 

Name :

Mr. Ananthanarayanan R.

Designation :

President – international Operations

 

 

Name :

Mr. Asaikar Umesh

Designation :

President – international Operations

 

 

Name :

Mr. Athreya Shankar

Designation :

Senior Vice President, Strategic Investments (M&A)

 

 

Name :

Mr. Bansi Lal

Designation :

President-Quest, Institute of Life Sciences

 

 

Name :

Mr. Bhatia Satish C.

Designation :

President – Clinical Research and Regulatory Affairs

 

 

Name :

Mr. Chawla Harish

Designation :

Chief Information Officer

 

 

Name :

Mr. Gad Narayan B.

Designation :

President – Marketing and Sales, Multi speciality and Extra Care Division

 

 

Name :

Mr. Iyer Bhasker

Designation :

President – Sales and Marketing, Cardex Division

 

 

Name :

Mr. Iyer Sainath

Designation :

President – Marketing Actis Division[

 

 

Name :

Mr. Kamath V.P.

Designation :

Senior Vice President – Biotek Division

 

 

Name :

Mr. Mahadevan Ajit

Designation :

Vice President – Group Strategic Planning

 

 

Name :

Mr. Mukhopadyaya T

Designation :

Vice President – Research

 

 

Name :

Mr. Oke Vidyadhar G.

Designation :

President – Medical Services

 

 

Name :

Mr. Piramal Ajay G.

Designation :

Chairman

 

 

Name :

Mr. Saigal J C

Designation :

Executive Director (International) Bulk Drugs Division

 

 

Name :

Mr. Sengupta S.S.

Designation :

C.E.O. – S.P.Division

 

 

Name :

Mr. Shah Vijay

Designation :

Chief Operating Officer

 

 

Name :

Mr. Singh Praneet

Designation :

Director – Formulations

 

 

Name :

Verma Rajiv

Designation :

Vice President – Operations Bulk Drugs

 

 

Name :

Mr. Michael Fernandes

Designation :

Director

 

 

Name :

Mr. Praneet Singh

Designation :

Director

 

 

MAJOR SHAREHOLDERS

 

Names of Shareholders (as on 30.09.21007):-

No. of Shares

Percentage of Holding

Public shareholding

 

 

Institutions

 

 

Mutual Funds  / UTI

3432573

1.64%

Financial institutions  / Bank

73783

0.04%

Insurance companies

12392737

5.93%

Foreign institutional Investors

33383951

15.98%

Sub Total

49283044

23.59%

 

 

 

Non Institutions

 

 

Bodies Corporate (Including Foreign Bodies Corporate)

31689492

15.16%

Individual

 

 

Individual – i. Individual shareholders holding nominal share capital up to Rs. 0.100 millions

22436123

10.72%

Individual – i. Individual shareholders holding nominal share capital in excess of Rs. 0.100 millions

1208890

0.58%

Sub Total

55334505

26.46%

 

 

 

Shareholding of promoter and Promoter group

 

 

Indian

 

 

Individuals / Hindu Undivided Family

9222720

4.41%

Bodies Corporate

90885900

43.48%

Any other (specify) NPIL Senior Employees option scheme

4287975

2.05%

Sub Total

104396595

49.94%

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturers of tablets, capsules, liquids, powders, creams & ointments, granules, bulk drugs & intermediates, vitamin A in various forms and combinations, sodaline and borosilicate and also glass manufacturers.

 

 

Products with ITC No.:

·         Phensedyl- 300440

·         Paraxin-300310

·         Haemaccel-300310

 

Product Range

 

Ø       Formulations

Ø       Diagnostics and Patient Care

Ø       Vitamins

Ø       Product Finder

 

 

Brand Names :

Ø       Anti-Infectives

·         Paraxin

·         Bactrim

·         Genticyn

·         Omnatax

 

Ø       Cardio- Vasculars

·         Sorbitrate

·         ISMO

·         Enace-D

·         Calaptin

·         Cytogard

·         Bezalip

 

Ø       Nutritionals

·         Becozym C Forte

·         Supradyn

·         Redoxon

·         Exerge

 

Ø       Respiratory

·         Deletes

 

Ø       Others

·         Haemaccel

 

Ø       Anti-Diabetics

·         Euglucon

·         Semi-Euglucon

·         Glimmer

·         Gluformin

·         Diabetrol

 

Ø       CNS

·         Rivotril

·         Librium

·         Valium

·         Assert

 

Ø       NASID’s

·         Rejoint

·         Orthobid

·         Micropyrin

·         Multigesic

 

Ø       Biotek

·         Recormon

·         Neupogen

·         Cellecept

 

PRODUCTION STATUS (as on 31.03.2007):-

 

Particulars

Unit

Installed Capacity

Actual Production

Trade

 

 

 

Creams and powder

Kgs

--

--

Vials

Ltrs

--

--

Tablets and capsules

Mios

--

--

Liquids, drops and solutions

Ltrs

--

--

 

 

 

 

Manufactured

 

 

 

Tablets

Mios

11495.0

4974.8

Capsules

Mios

580.0

330.6

Liquids

KLs

26147.4

9877.7

Powders, creams and ointments

MTs

 

67.3

Bulk drug and intermediates

MTs

1696.2

1415.6

Vitamin A in various forms and combinations

mmu

276.0

180.4

 

GENERAL INFORMATION

 

Trade terms with :

·         Adams Fine Chemicals Private Limited

·         Patel Papain Industries

·         Supreem Pharmaceuticals

·         Seasons Polymers

·         Vasant Process

·         Ansa Printpack Private Limited

 

 

No. of Employees :

6812

 

 

Bankers :

·         Allahabad Bank

·         Deutsche Bank

·         Corporation Bank

·         Bank of America

·         Citibank N.A.

·         HDFC Bank

·         Standard Chartered Bank

·         Calyon Bank

·         UTI Bank

·         IDBI Bank

·         State Bank of Hyderabad

·         ICICI Bank Limited

·         ING Vysya Bank Limited

·         The Hong Kong & Shanghai Banking Corporation Limited

 

 

Facilities :

SECURED LOANS

31.03.2007

Cash Credit from Banks (Includes Packing Credit Loans)

1570.900

Term Loan From Bank

222.400

Total

1793.300

Notes on Secured Loans

 

Cash Credit facilities including Packing Credit in Foreign Currency (PCFC) are secured by hypothecation of stocks and book debts.

 

 Term Loans from Banks are secured by the following: -

 

a)  ECB loan of Rs.222.4 Million (US$ 5.0 Million) (Previous year Rs.446.3 Million (US$ 10.0 Million)] from BNP Paribas, Singapore has been secured by first charge of immovable property of the company .situated at various manufacturing locations and further secured by hypothecation of the moveable assets of the company, both present and future (save and except hook debts) Subject to prior charge on certain specified moveable assets created in favour of banks

for securing working capital requirements.

 

b)  ECB loan of Rs. Nil [Previous year Rs.223.2 Million (US$ 5.0 Million)] from Citibank has been .secured by first charge of immovable property of the company situated at various manufacturing locations and further secured by hypothecation of the moveable assets of the company, both present and future (save and except book debts) Subject to prior charge on certain specified moveable assets created in favour of banks ft n~ securing working capital requirements.

 

3. Satisfaction of charges in respect of loans repaid during the year and certain old loans are still awaited.

 

UNSECURED LOANS

 

Fixed Deposits

0.200

Loan from subsidiary

30.000

Banks

2138.600

Total

2168.800

 

 

 

 

Banking Relations :

Good

 

 

Auditors :

Price Waterhouse

Chartered Accountants

Mumbai, Maharashtra

 

 

Associates:

·         Allergan India Private Limited (Allergan)

·         Boots Piramal Healthcare Private Limited (Boots)

·         Morarjee Realties Limited (Formerly The Morarjee Goculdas Spg. & Wvg. Co. Limited) (Morarjee Realties)

·         Morarjee Textiles Limited (Morarjee Textiles)

·         Morarjee Castiglioni (India) Limited

·         Piramal Healthcare Private Limited (Piramal Healthcare)

·         Piramal Enterprises Limited (Piramal Enterprises)

·         Piramal Holdings Limited (Piramal Holdings)

·         Thundercloud Technologies (India) Private Limited (Thundercloud Technologies)

·         Piramyd Retail and Merchandising Private Limited

·         The Swastik Safe Deposits and Investments Limited

 

Membership:

  • Confederation of Indian Industry

 

 

Subsidiaries :
  • Piramal International
  • Nicholas Piramal  Fininvest Private Limited (Nicholas Piramal  Fininvest)
  • Nicholas Piramal  Laboratories and Diagnostics Private Limited (Nicholas Piramal  Labs)
  • Nicholas Piramal  - Dr. Phadke Pathology Laboratory and Infertility Center Private Limited (Nicholas Piramal  Dr. Phadke)
  • Nicholas Piramal  - Dr. Golwilkar Laboratories Private Limited (Nicholas Piramal  Dr. Golwilkar)
  • Nicholas Piramal  Pharma Inc. (Nicholas Piramal  Pharma)
  • Nicholas Piramal Life Sciences Limited. (from June 22, 2004)
  • Pathlabs
  • Nicholas Piramal  Pharmaceuticals (UK) Limited
  • Torcan Chemical Limited

 

 

Solicitors :

·         Crawford Bayley and Company

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

250000000

 

Equity Shares

Rs.2/- each 

Rs. 500.000 millions

3000000

 

Preference Shares

Rs.100/- each

Rs. 300.000 millions

24000000

Preference Shares

Rs. 10/- each

Rs. 240.000 millions

105000000

 

Unclassified Shares

Rs. 2/- each

Rs. 210.000 millions

 

Total

 

Rs. 1250.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

209013133

 

Equity Shares of

Rs.2/-e ach 

Rs. 418.000 millions

1500000

 5% Cumulative Redeemable Preference Shares

 

Rs. 100/- each

 Rs. 150.000 millions

 

 

Preference shares are redeemable on the expiry of 5 years from the Appointed Date October 1,2003, with an option for the Company for early redemption, but not before March 31,2005

 

 

 

23372280

5% Cumulative Redeemable Reference Shares of

 

Rs. 10/- each

Rs. 233.700 millions

 

 

Preference shares are redeemable on the expiry of 5 years from the Appointed Date December 01, 2003, with an option for the Company for early redemption, but not before March 31, 2005

 

 

 

Total

 

Rs. 801.700 millions

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2007

31.03.2006

31.03.2005

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

801.700

951.700

913.700

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

9762.200

8742.900

4543.000

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

10563.900

9694.600

5456.700

LOAN FUNDS

 

 

 

1] Secured Loans

1793.300

1620.500

3092.200

2] Unsecured Loans

2168.800

312.000

448.900

TOTAL BORROWING

3962.100

1932.500

3541.100

DEFERRED TAX LIABILITIES

1033.600

858.500

768.600

 

 

 

 

TOTAL

15559.600

12485.600

9766.400

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

8701.500

6752.400

5827.500

Capital work-in-progress

459.700

1754.500

1051.800

 

 

 

 

INVESTMENT

1265.000

789.400

258.300

DEFERREX TAX ASSETS

162.100

153.000

183.300

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
2264.800

2147.500

2746.700

 

Sundry Debtors
2298.800

1747.500

1409.000

 

Cash & Bank Balances
220.500

109.200

74.900

 

Other Current Assets
86.500

72.900

60.800

 

Loans & Advances
2677.600

1888.500

1209.500

Total Current Assets
7548.200

5965.600

5500.900

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
2328.700

2082.700

2261.100

 

Provisions
248.200

846.600

794.300

Total Current Liabilities
2576.900

2929.300

3055.400

Net Current Assets
4971.300

3036.300

2445.500

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

15559.600

12485.600

9766.400

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2007

31.03.2006

31.03.2005

Sales Turnover

16013.800

14062.800

12760.700

Other Income

385.000

431.600

0.000

Total Income

16398.800

14494.400

12760.700

 

 

 

 

Profit/(Loss) Before Tax

2224.400

1842.500

2062.900

Provision for Taxation

341.600

139.000

367.200

Profit/(Loss) After Tax

1882.800

1703.500

1695.700

 

 

 

 

Export Value

0.000

2201.500

1263.200

 

 

 

 

Import Value

0.000

1746.400

1507.900

 

 

 

 

Expenditures :

 

 

 

 

Raw Material Consumed

6683.800

5325.300

 

 

Staff cost

1857.900

1519.100

 

 

Research and development expenses

878.900

639.300

10844.800

 

Increase/(Decrease) in Finished Goods

(214.300)

672.200

 

Other Expenditure

4154.100

3750.900

 

Total Expenditure

13360.400

11906.800

10844.800

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2007

30.09.2007

31.12.2007

Type

1st Quarter

2nd Quarter

3rd Quarter

Sales Turnover

3950.200

5318.200

4862.100

Other Income

20.700

0.000

59.700

Total Income

3970.900

5318.200

4921.800

Total Expenditure

3340.800

4209.500

3862.600

Operating Profit

630.100

1108.700

1059.200

Interest

46.800

32.800

46.300

Gross Profit

583.300

1075.900

1012.900

Depreciation

191.500

198.600

199.700

Tax

5.000

112.400

75.000

Reported PAT

343.900

809.800

738.200

 

KEY RATIOS

 

PARTICULARS

 

31.03.2007

31.03.2006

31.03.2005

Debt Equity Ratio

0.29

0.36

0.70

Long Term Debt Equity Ratio

0.17

0.18

0.49

Current Ratio

1.39

1.14

1.20

TURNOVER RATIOS

 

 

 

Fixed Assets

1.67

1.83

1.90

Inventory

7.78

6.25

5.58

Debtors

8.42

9.53

8.27

Interest Cover Ratio

6.58

8.02

5.77

Operating Profit Margin (%)

19.53

17.82

15.01

Profit Before Interest and Tax Margin (%)

15.39

13.98

11.35

Cash Profit Margin (%)

15.19

15.16

11.36

Adjusted Net Profit Margin (%)

11.05

11.33

7.71

Return on Capital Employed (%)

20.05

20.39

17.53

Return on Net Worth (%)

19.23

23.79

22.01

 

LOCAL AGENCY FURTHER INFORMATION

 

History

Subject was incorporated in 1947 as Indian Schering as subsidiary of British Schering, UK. In 1957, E Griffith Hughes, of which British Schering was a subsidiary, was taken over by Aspro-Nicholas, UK. The management of the company was acquired by Piramal Enterprises in 1988. 


Subject is a major player in formulations, diagnostics and vitamins in the Indian pharma industry, besides having good export presence. The company is strong in marketing and has many alliances with MNCs to sell their products. It is now also giving more emphasis on R and D. Hence, one can expect sustained healthy growth in the medium-to-long term. 

 
The company has a portfolio of around 160 brands. Recently, it purchased two brands from Hoechst - Omnatax (cefataxim) and Zidime (ceftazidime). Allergan India Limited is 51:49 joint venture company between Allergan Inc., USA and Nicholas Piramal. Further the company has another joint venture company, Boots Piramal Healthcare Private Limited which is 51:49 joint venture between Boots Plc., UK and Nicholas Piramal.

  
The subsidiaries of subject are Nicholas Piramal  Laboratories and Diagnostics Private Limited, Nicholas Piramal - Dr. Phadke Pathology Laboratory and Infertility Center Private Limited, Nicholas Piramal -Dr. Golwilkar Laboratories Private Limited, Nicholas Piramal  Fininvest Private Limited, Nicholas Piramal  Pharma Inc., Piramal International and Nicholas Piramal  Life Science Limited. 

 

Subject had earlier acquired Nicholas Laboratories in 1988, Roche Products in 1993, Boehringer Manheim in 1996 and an R and D unit of Hoechst Marion Rousell in 1998. It has also formed strategic alliances and joint ventures, viz. Scholl Piramal in 1994, Alergan in 1995, Sarabhai Piramal in 1997, Reckitt Piramal in 1998, Solumiks Pirmal in 1998, Boots Piramal in 1999 and Charak Piramal in 1999. 


During 2000-2001, the company through its wholly owned subsidiary, Nicholas Piramal  Fininvest acquired 40% equity stake in Rhone Poulenc India at a price of Rs. 875 per share. Nicholas Piramal  Fininvest made an open offer to public and acquired additional 20% stake in Rhone Poulenc at a price of Rs. 875 per share. Consequent to this, Rhone Poulenc became a subsidiary of Nicholas Piramal  Fininvest and hence a subsidiary of the company. The acquisition has made Subject the second largest Indian pharmaceutical company in terms of marketshare. Also, it has increased the presence in the domestic market. 

 
In an EGM held on 14.06.2001, the shareholders have approved the scheme of arrangement for the merger of Rhone Poulenc, Super Pharma - a distributor company acquired in April 2001 and certain assets and liabilities of Nicholas Piramal  Fininvest with the company. The company has acquired Pharmaceutical Business of ICI India for a consideration of Rs.700.000 Millions including for acquiring the net current assets. 


By a scheme of arrangement between the company and Kojam Finvest Limited (KFL) the company has transferred the investment held by the company in its subsidiary Gujarat Glass Private Limited to KFL. Subject has transferred its investments in Gujarat Glass Private Limited and its subsidiaries w.e.f. 01.07.2004 into a new holding company Kojam Fininvest Limited (Kojam). The shares of Kojam were allotted free-of-cost to shareholders of subject in proportion to their ownership of subject and the allotment ratio was 1:4. 


The year 2003 was significant for subject since in that year Global Bulk Drugs and Fine Chemicals Limited(GBDFC) was amalgamated with the company. GBDFC manufactures  APIs, Intermediates and Formulations for the regulated markets and also its plant near Hyderabad has accreditations and approvals from USFDA,MCA of UK,TGA of Australia, European Drug Authorities and Canadian Drug Autorities. The plant also has ISO 14000 and 9001 certifications. 

 
In January 2005 the company sub-divided its equity share face value from Rs.10/- per share to Rs.2/- per share. Further in July 2005 the company came out with a rights issue of equity shares for its shareholders in the ratio of 1:10. During 2004-05 the company has acquired the Inhalation Anaesthetics Business of Rhodia Organique fine Limited w.e.f. 11.01.2005 for a consideration of Rs.579.800 million. Further the company has discontinued Roche Diagnostics's distribution for a consideration of $22 Million. The company has also continued focus to reduce domestic low-value Vitamin A, API and Generic Sales. 


In 2006, The company has increased its installed Capacities Liguids 14613.2 KLs to 14744 KLs, Bulk Drugs and Intermediates 733 MT to 920 MT and Vitamin A in Various Forms and Combinations 77.7 MMU to 92.00 MMU. 

 
The company has acquired Avecia Pharmaceuticals, UK and Torcan Chemical Chemical Limited, Canada for a consideration of GBP 11.8 Million. The company exited from the Joint Venture Dr- Golwilkar Laboratories Private Limited. The company has received a consideration of Rs.52.5 Million for their 70% stake in company. The company was successfully commenced commercial dispatches of products against its initial two custom manufacturing contracts, (i.e) the contracts with advanced Medical Optics, Inc. and Allergan Inc.

 

 

 

MANAGEMENT DISCUSSION & ANALYSIS

Was 0.65 In for the year2007, Compared To 0.38 In for the year2006. The Debt Level And Interest Costs For for the year2007 Were Higher As They Used Internal Funds And Debt To Finance Capital Expenditure For The Year And For Acquisition Of Pfizer's Morpeth Facility.

 

Depreciation for the year was Rs. 818.2 million compared to Rs. 688.1 million in for the year2006.

 

Income Tax and Fringe Benefit Tax for for the year2007 was Rs. 388.9 million, compared with Rs. 238.1 million in for the year2006.

 

Profit After Tax after exceptional items (net of tax) was Rs. 2.2 billion in for the year2007 as compared to Rs. 1.2 billion in for the year2006, registering a growth of

80.7%.

 

Earnings per share for for the year2007 were Rs. 10.3 per share vs. Rs. 5.8 per share in for the year2006, an increase of 77.6%.

 

Net Sales analysis (Consolidated):

Subject’s domestic branded formulations business, which at Rs. 11.7 billion contributed 47.5% of Total Operating Income, increased 11.9% for the year2006. Global Sales - growing to 43.1% of Total Operating Income - were Rs. 10.6 billion as compared to Rs. 3.4 billion for for the year2006.

 

Change in Reporting Format:

Starting for the year2007, they have changed the reporting format for global sales to align it with revenue segments of their global Custom Manufacturing business. The global sales are now sub-divided into:

 

1. PDS (Pharmaceutical Development Services): This includes Process Development Services for API and Formulations.

 

2. PMS (Pharmaceutical Manufacturing Services): This includes commercial-scale Custom Manufacturing contracts for APIs and Formulations.

 

3. MMBB (Marketable Molecules and Building Blocks): This includes off-patent APIs and Formulations products, Inhalation Anaesthetic products, Vitamin-A products and other catalogue products.

 

Vitamins sales in domestic market are now reported under Custom Manufacturing Operations (CMO) category in the India sales break-up. The sales from Diagnostics business, which were earlier included in India Sales under separate headings, have now been clubbed with the Others category within India Sales.

 

Domestic Branded Formulations

Market commentary and Industry Outlook:

Backed by a strong growth in GDP, the Indian Pharmaceutical industry experienced a strong growth rate of 14.3% during the year (ORG IMS MAT March 2007). An important contributor to industry growth in for the year2007 was the spread of epidemics such as Dengue and Chickungunya, which led to a sharp increase in sales of antibiotics and painkillers during the first half of the year. A redeeming feature of growth during the year was the rise in volumes contributing to bulk of the 14.3% growth. On the new products front, there has been a fair amount of innovation by Indian companies in the area of combination therapy. The domestic pharmaceutical? industry is centered on branded generics, and is intensely competitive. Top-10 companies account for only 37% of the market. The new patent regime which came into effect from January 2005 disallows generic copies of any drug patented after 1995. Given this industry structure, they expect brands franchise; field force strength and product innovation to be key success factors in the coming years. Industry studies suggest that modern medicine still covers less than a third of the population. They believe that coverage will substantially improve in the coming years because of higher economic growth and focus of pharmaceutical companies to increase service to semi-urban and rural areas. If this happens, the domestic pharmaceuticals industry would continue to grow faster than GDP

 

 

 

The company consolidated formulations performance:

During the year, Subject's domestic branded formulations grew 11.9% in aggregate terms to Rs. 11.7 billion as compared to Rs. 10.5 billion for for the year2006. Launch of Healthcare division: They have created a new division as a 100% subsidiary named Nicholas Piramal  Healthcare Private Limited, targeting Mass Market Branded Formulations (MMBF). Currently, they are in a pilot phase. They have recruited 400 people who will service about 50,000 General Practioners in 12 states.

 

Portfolio performance: Joint Ventures & Subsidiaries,

Allergan India Limited ('AIL'):

AIL is a 51:49 Joint Venture between Allergan Inc., USA and Nicholas Piramal. It specializes in sales and marketing of ethical Ophthalmology products. On 17 July 2005, Allergan India sold its Medical Optics business in India to Advanced Medical Optics, Inc., USA (AMO) for a consideration of Rs. 436.2 million. Sales from this business segment were Rs. 69.3 million in for the year2007. As a result, during for the year2007, the Net Sales of AIL degrew by 1.9% to Rs. 767.7 million (for the year2006 Net Sales: Rs. 782.3 million) PBIDT for for the year2007 was Rs.104.6 million, compared with for the year2006 Rs. 448.8 million, a degrowth of 76.7%, mainly because of a one time income of Rs. 311.2 million in for the year2006 on sale of discontinued operations. Profit after tax for for the year2007 was Rs. 43.9 million, compared with for the year2006 value of Rs. 310.5 million, a degrowth of 85.8%.

 

Nicholas Piramal  Consumer Products Private Limited ('NPCPPL'):

(formerly Boots Piramal Healthcare Private Limited('BPHPL'))

On September 29, 2006, subject acquired the balance 51.0% equity stake held by The Boots Company Pic, a subsidiary of Alliance Boots Pic, in the Joint Venture Company, Boots Piramal Healthcare Private Limited. BPHPEs marketing rights for the btands Strepsils, Clearasil and Sweetex in India were transferred to Reckitt Benckisser India Limited. Further as a part of this arrangement, subject received a one-time sum of Rs. 178.0 million from Alliance Boots/Reckit Benckisser.

 

BPHPL has since become a wholly owned subsidiary of the company and has been renamed as Nicholas Piramal  Consumer Products Private Limited (NPCPPL). NPCPPL will continue to actively market and distribute its own Over The Counter (OTC) products viz. Saridon, Polychrol and Lacto Calamine. In addition, NPCPPL also plans to launch OTC brands in new therapy areas as well as transition some of Nicholas Piramal 's Rx brands to OTC by leveraging its sales and marketing team.

 

Net Sales for NPCPPL for for the year2007 was Rs. 506.1 million, PBIDT was Rs. 34.4 million and PAT was Rs. 26.7 million.

 

Core Brand Analysis:

Sales of top-10 brands was 29.8% of the consolidated total branded formulations sales and that of the top-30 brands was 55.7% of the total branded formulations sales. Sales from Lifestyle segment (which include therapy areas of CVS, CNS, Anti-diabetic and Biotech) contributed to 31.2% of the total branded formulations sales.

 

Brands portfolio expansion:

New Products launch:

Subject launched 22 new products (including extensions) during for the year2007. Sales from new products (launched during the past 24 months) were Rs. 611.2 million during the year. Seven new brands have become market leaders in their respective sub-segments.

 

DPCO:

Products under the Drug Price Control Order (DPCO) contributed 14.1% of domestic branded formulations sales in for the year2007, against 14.5% in for the year2006.

 

Field Force (standalone):

Nicholas' Formulations field force of 2,986 personnel continues to be one of the largest in the Indian Pharmaceutical industry. They believe their investment in field force is one of their key strengths. Their vast yet specialized field presence also adds to their in-licensing attractiveness. Subject now has 14 Divisions, out of which 7 focus on specific therapies.

 

 

Sharper therapy-wise focus has enabled them to attain high coverage in specialty doctor segments. Their Multi-specialty Divisions, meanwhile, focus on General Practitioners and build mass consumption brands and primary care products.

 

Subject has a tertiary field layer of two Franchisee Divisions: First division comprising of 116 persons which markets older brands to General Practitioners in semi-urban and rural areas; and second division comprising of 168 persons that does retail order booking for big brands.

 

Global Sales and Custom Manufacturing Business Group

Market commentary:

The Global Custom Manufacturing market has shown good growth as large pharmaceutical companies face rising cost-pressures and patent expiry of block-buster drugs; and are forced to look at improving manufacturing efficiencies. The market is still in consolidation mode and the year witnessed a number of merger/acquisition transactions.

 

The outsourcing industry is expected to continue growing faster than global pharmaceuticals industry over the next 5-7 years, driven by need for increased outsourcing by pharmaceutical companies. Hitherto, western companies have led the outsourcing industry. However, it is expected that Asian companies will gain market share and importance because of their cost advantage and chemistry innovation skills. The industry might experience consolidation in geographical and value chain terms, with Asian companies trying to gain customer relationships, while Western companies try to secure lower-cost manufacturing assets.

 

Nichoks Piramal Performance:

International sales grew 214.1%, driven by consolidation of revenues from Avecia and Morpeth. and higher custom manufacturing revenues from Indian assets. Sales from contracts from Indian Assets and PDS business out of India for for the year2007 aggregated Rs. 767.4 million, as compared to Rs. 206.4 million in for the year2006. Sales for AMO and Allergan contracts reached steady state during the year. During for the year2007, they have secured a number of additional contracts related to Indian assets, which are yet to commence revenues.

 

Within the MMBB segment, they successfully shifted production of Inhalation Anesthetic products from Rhodia UK facilities to their plant at Digwal, Hyderabad. They also successfully underwent a USFDA inspection of two of their Custom Manufacturing sites at Pithampur in India (formulations) and Grangemouth in United Kingdom (High Potency APIs).

 

Acquisition of Pfizer's Facility at Morpeth, UK

In keeping with their intent of being a leader in the custom manufacturing space, they have acquired the manufacturing facility of Pfizer, Inc. located at Morpeth, Northumberland, UK. The site was one of Pfizer's global, high-quality, integrated facilities. It has end-to-end production and supply chain capabilities that cover APIs, Finished dosage, Packaging and Distribution. This facility came with a supply agreement till November 2011.

 

Morpeth's team of about 450 people has rich experience in new product launch, site technical transfer and operational excellence initiatives such as JIT & Right-First-Time. Its facilities are approved by USFDA and UKMHRA. Morpeth is a supply hub for certain Pfizer products supplied to USA, Europe and Japan. With the acquisition of Morpeth, subject has gained strategic entry into the global sourcing network of Pfizer, Inc. Subject is now one of the world's leading Pharmaceuticals Outsourcing Companies, across Custom Synthesis, APIs and Finished Dosage.

 

Turnaround of Avecia Operations:

They had acquired Avecia Pharmaceuticals, UK (Avecia') on 02 December 2005. For the period ended 31st March, 2006, Avecia had OBIDTA loss of Rs. 247.0 million. During for the year2007, they have been successful in growing the revenues substantially. This combined with integration of materials sourcing from Indian assets and fixed costs rationalization has resulted in Avecia reporting a positive Net Profit for for the year2007 from both its Canadian and UK operations.

 

 

 

 

Research & Development program

Research & Development:

During the year, their Rand D pipeline has shown significant traction. Their lead oncology molecule P276-00 that was in clinical trials in Canada is now undergoing simultaneous clinical trials in India. Two phyto-pharmaceutical molecules, Sphira and Hespiderm, have progressed to Phase-II and are currently undergoing clinical trials in India. Ten other candidates are in pre-clinical stage.

 

During the year, they signed an agreement with Eli Lilly and Company, USA, wherein Eli Lilly has licensed to them for development, a novel, patented, pre-clinical drug candidate in the metabolic disorders segment. They will design and execute the global clinical development programme of this optimized lead and take it upto beginning of Phase III. In return, they would potentially receive milestone payments upon successful completion of Phase I and II by them and upon registration and launch by Eli Lilly. If the molecule is successfully launched, they will also get commercialization rights for select markets and get royalties on global sales.

 

During the year, Subject entered into a plant-screening agreement with Napo Pharmaceuticals, Inc. USA, ('Napo') a company which is focused on developing and commercializing proprietary pharmaceuticals for the global marketplace. As part of the agreement, subject will utilize its High Throughput Screening facility and Natural Product Chemistry expertise along with biological testing capabilities to identifor the year active compounds from Napo's library of medicinal plant extracts from tropical regions. Napo and subject will jointly own all products that are developed under the agreement.

 

SUBSIDIARY COMPANIES:

Pathlabs:

They continued to build their Pathlabs business by acquiring new laboratories and building greenfield facilities. During for the year2007 they acquired 6 new laboratories and they also acquired the remaining 40% stake in their joint venture Nicholas Piramal  - Dr Phadke Pathalogy Laboratory 6k Infertility Center Private Limited in Mumbai. During the year, they entered high-end health imaging services by acquiring Jhankaria Imaging, a leading radiology and imaging center in Mumbai.

 

They also entered in to a 50% joint venture with Doctors Diagnostic & Research Centre (DDRC) during the year. DDRC is the largest diagnostics network in Kerala with 34 labs across the state. The new venture will have under its wing some of the most advanced diagnostic analysis available. The Total Operating Income for Pathlabs grew by 54.5% from Rs. 449.7 million in for the year 2006to Rs. 695.0 million. Operating Profit for the year was up by 14.4% to Rs. 118.2 million. However, acquisition of new labs and setting up greenfield facilities have resulted in higher interest costs and depreciation.

 

Nicholas Piramal  Pharmaceuticals (UK) Limited:

During the year, they continued to expand their global footprint in the custom manufacturing business and acquired Pfizer's manufacturing facility at Morpeth which came with a supply arrangement till November 2011. As a result, the net sales for for the year2007 for Nicholas Piramal  Pharmaceuticals (UK) Limited Was Rs. 6.3 billion as against Rs. 748.0 million for for the year2006, Operating profit for the year was Rs. 707.9 million as compared to an operating loss of Rs. 254.0 million and PAT for the year was Rs. 515.0 million as compared to net loss of Rs. 281.7 million for for the year2006. The financials however are strictly not comparable on a like-to-like basis as they did not have revenues from Morpeth facility in for the year2006, and the revenues from the erstwhile Avecia operation had come only for four months, in for the year2006.

 

They were able to achieve the turnaround of erstwhile Avecia operations during the year. This was achieved because of the following reasons:

1. Significantly higher capacity utilization

2. More efficient procurement of raw materials by Avecia's integration with Indian assets; and

3. Rationalization of fixed costs

 

Torcan Chemical Limited:

Net Sales for for the year2007 for Torcan was Rs. 1.1 billion as compared to Rs. 311.8 million for for the year2006, Operating Profit for the year was Rs. 106.1 million as compared to Rs. 7.0 million for for the year2006, and PAT was Rs. 65.5 million as compared to a net loss of Rs. 18.7 million for for the year2006.

 

 

Note:

The Central Government has granted exemption under section 212(8) of the Companies Act 1956, from attaching to the Balance Sheet of the Company, the Accounts and other documents of its subsidiaries. However, the Consolidated Financial Statements of the Company, which include the results of the said subsidiaries, are included in this Annual Report. Further, a statement containing the particulars prescribed under the terms of the said exemption for each of the Company's subsidiaries is also enclosed. Copies of the audited annual accounts of  the Company's subsidiaries, can also be sought by any investor of the Company or its subsidiaries on making a written request to the Company Secretary at the registered office of the Company in this regard. The Annual Accounts of the subsidiary companies are also available for inspection tor any investor at the Company's and/ or the concerned subsidiaries' registered office.

 

JOINT VENTURES:

Allergan India Limited ('AIL')

AIL is a 51:49 Joint Venture between Allergan Inc., USA and Nicholas Piramal. On 17 July 2005, AIL sold its Medical Optics business in India to Medical Optics, Inc. USA, (AMO) for a consideration of Rs. 436.2 million. Sales from this business segment were Rs. 69.3 million in for the year2006. As a result during for the year2007, the Net Sales of AIL degrew at 1.9% to Rs.767.7 million (for the year 2006Net Sales: Rs. 782.3 million) PBIDT for for the year 2007 was Rs. 104.6 million, compared with for the year2006 Rs. 448.8 million, a degrowth of 76.7% mainly because there was a one time income of Rs.311.2 million in for the year2006 due to income on sale of discontinued operations. Profit after tax for for the year2007 was Rs. 43.9 million, compared with for the year2006 value of Rs.310.5 million, a degrowth of 85.8%.

 

Nicholas Piramal Consumer Products Private Ltd ('NPCPPE)

 

(Formerly Boots Piramal Healthcare Private Limited ('BPHPL'))

On September 29, 2006, subject acquired the balance 51% equity stake held by The Boots Company PLC, a subsidiary of Alliance Boots pic, in the Joint Venture Company, Boots Piramal Healthcare Private Limited. BPHPLs marketing rights in the brands Strepsils, Clearasil and Sweetex in India were transferred to Reckitt Benckisser India Limited (RBI). Further as a part of this arrangement, subject has received a one-time sum of Rs. 178.0 million from Alliance Boots/Reckit Benckisser.

 

BPHPL has become a wholly owned subsidiary of the company and has been renamed as Nicholas Piramal  Consumer Products Private Limited (NPCPPL). NPCPPL will continue to actively market and distribute its own Over The Counter (OTC) products viz. Saridon, Polychrol and Lacto Calamine. In addition, NPCPPL also plans to launch OTC brands in new therapy areas as well as transition some of Nicholas Piramal s Rx brands to OTC by leveraging its sales and marketing team.

 

Net Sales for NPCPPL for the year2007 was Rs. 506.1 million, PBIDT was Rs. 34.4 million and PAT was Rs. 26.7 million.

 

INDUSTRY OUTLOOK:

Backed by a strong growth in GDP, the Indian Pharmaceutical industry has experienced a strong growth rate of 14.3% (ORG IMS MAT March 2007). An important contributor to industry growth in for the year2007 was the unfortunate spread of epidemics such as Dengue and Chickungunya, which led to a sharp increase in sales of antibiotics and painkillers during the first half of the year. A redeeming feature of growth during the year was volumes contributing to bulk of the 14.3% growth. On the new products front, there has been a fair amount of innovation by Indian companies in the area of combination therapy.

 

The Global Custom Manufacturing market has also shown good growth as large pharmaceutical companies face rising cost-pressures and patent expiry of block-buster drugs and are forced to look at improving manufacturing efficiencies. The market is still in consolidation mode and this year saw a number of mergers/acquisitions transactions

 

Fixed Assets :-

·         Intangible assets

·         Brand / Know- How/ Intellectual Property Rights *

·         Computer software

·         Tangible assets

·         Land leasehold

·         Land freehold **

·         Building

·         Plant and machinery

·         Furniture and fixtures and office equipments

·         Motor vehicle / transport

 

* The brands are in the process of being registered in the name of the company, for which the necessary application has been made with trade mark registry

 

** A part of the land purchased at Baddi and land, building and motor vehicle purchased at Hyderabad is in the process of being registered in the name of the company

 

AS PER WEBSITE

Profile

Subject is one of India's largest companies with an unmatched record of managing JVs/Alliances/Partnerships, and a proven commitment to IPR. With strong brand management and sales capabilities, a US FDA site-approved plant for on-and-off patent APIs and Intermediates, Basic Research, Process Innovation, Custom Chemical Synthesis, Formulations R and D, NDDS, and a world-class, accredited Clinical Research Organisation, NPIL is poised to emerge as India's pharma powerhouse.

 

With growth fuelled through a strategy of partnerships, quality acquisitions, brand building, focused selling and manufacturing the Company consolidated net sales turnover was US$ 313 million (INR 14.1 billion) in 2005-06 (April to March)".

 

The Company has emerged among the leaders in Indian pharma with a unique mix of inorganic and organic growth fuelled through a strategy of acquisitions, brand building and focused selling, and manufacturing. The company has one of the widest product portfolios in India, spanning nine key therapeutic areas, including the Cardio-vascular, Neuro-psychiatry, Oncology, Diabetes Management, Respiratory, Anti-infectives, Gastro-intestinals, Dermatology and NSAIDS.


The company was formed when the Piramal Group acquired Nicholas Laboratories, a small formulations company in 1988 from Sara Lee. It has followed a multi-pronged strategy to integrate and maximize synergies with the planned acquisitions and develop and consolidate its major strength in marketing to therapeutic niches.

Managed by a team of highly proficient industry professionals, the Company 's key strengths come from its strong brand building, selling and distribution, manufacturing and alliance/partnership management skills. The last, especially, are quite unique in the Indian context - few Indian Pharmaceutical have exhibited such a strong and consistent record in successfully and ethically managing JVs/Alliances and Partnerships as NPIL has.


Its policy of respecting IPR and managing partnerships, in keeping with both the letter and the spirit of written agreements, has been widely respected and commended by its partners.


The Company is the flagship company of the Rs. 25000 Millions (US $ 550 million) Piramal Enterprises (PEL), one of India's largest diversified business houses.

           

PRESS RELEASE

Piramal Group announces launch of new corporate identity

Mumbai, Tuesday, March 11th 2008, –

The Piramal Group today announced the launch of its new corporate identity. The Group’s flagship Company, Nicholas Piramal India Limited, a pharmaceutical major, marks its twentieth year of operations this year.

 

The objective of this exercise is to craft a value-driven identity that unifies the diverse Companies within the Piramal Group. An analysis carried out within the Group over the past two years has revealed an affinity with three values that the Group has now adopted: knowledge _ action _ care.

 

The Group’s values are rooted in tradition. They have been derived from three guiding principles in the Bhagavad Gita: Gyan Yoga (the principle of knowledge and learning), Karma Yoga (the principle of dynamic action and entrepreneurial spirit) and Bhakti Yoga (the principle of care, compassion and devotion to a higher purpose).

 

The Group’s chosen logo is the Gyan Mudra, an aesthetic hand posture practised in yoga, meditation and dance over the past 3,000 years. The three fingers in the logo symbolise the mind, the body and the intellect, mirroring the Group’s core values: knowledge _ action _ care. Harmonising with each other, they aspire to form a circle of perfection, peace and happiness.

 

The Group has aligned itself to a worldview and an operational model, which demand that in every interaction, each member of the Piramal community lives the Group values, thus empowering others

by the care they provide.

 

Speaking on the occasion of the launch, Mr. Ajay Piramal, Chairman, Piramal Group, said, “We in the Piramal Group have adopted the ancient, universal symbol of the Gyan Mudra as our new logo. The Gyan Mudra epitomises the core values of the Group – knowledge, action and care. It is said to focus the mind, body and heart to give the light of knowledge, encourage dynamic action and deep compassion, bringing health, prosperity and peace to all.”

 

Subject to shareholders’ and Central Government’s approval, Nicholas Piramal India Limited will be known as Piramal Healthcare Limited, while the Group Companies NPIL Laboratories and Diagnostics Private Limited and Gujarat Glass Limited will be known as Piramal Diagnostic Services Private Limited and Piramal Glass Limited, respectively. The Group Company formerly known as NPIL Research & Development Limited was recently renamed Piramal Life Sciences Limited. Indiareit Fund Advisors Private Limited will continue to be known by its existing name.

 

The launch of the new corporate identity comes at a time when the Group is preparing to announce a series of exciting business initiatives.

 

About the Piramal Group

Spanning a broad spectrum of industries and formats, the Piramal Group is committed to achieving excellence and leadership by adhering to ethically sound, innovative and value-driven practices in its diverse, yet focused, business ventures and initiatives. The Group’s turnover exceeded Rs. 30000.000 millions in FY2007.

 

The names of specific Group Companies are to be changed subject to shareholders’ and Central Government’s approval.

 

About Nicholas Piramal India Limited (name proposed to be changed to Piramal Healthcare Limited)

Nicholas Piramal India Limited (“NPIL”, name proposed to be changed to Piramal Healthcare Limited) is one of India's largest pharmaceutical companies, with a growth track record of above 30% CAGR since 1988. NPIL had consolidated revenues of US$ 602 million in 2006-07.

 

The Company is currently ranked 4th in the Indian market with a diverse product portfolio spanning nine therapeutic areas. The Company is also one of the largest custom manufacturing companies with a global footprint of assets across North America, Europe and Asia.

 

NPIL is listed in India on the National Stock Exchange (Ticker: NICOLASPIR) and the Bombay Stock

Exchange (Ticker: 500302).

 

The name change from Nicholas Piramal India Limted to Piramal Healthcare Limited is pending approval by the Company’s shareholders and Central Government.

 

About Piramal Life Sciences Limited

Piramal Life Sciences Limited (“PLSL”) is an independent discovery research Company that was recently demerged from NPIL. PLSL was formerly the NCE R&D division of NPIL. PLSL has state-ofthe-art R&D laboratories built over 200,000 square-feet of space in Mumbai, India and over 300 scientists engaged in world-class drug discovery research and development.

 

PLSL is focused on four therapeutic areas – Cancer, Diabetes, Inflammation and Infectious Diseases. The Company has a pipeline of fourteen compounds, including four in clinical trials. PLSL’s lead chemical compound, a Cdk-4 inhibitor, is currently Phase I/II trials for Multiple Myeloma. PLSL has drug discovery and developments agreements with leading innovator companies like Eli Lilly & Company and Merck & Company.

 

PLSL is expected to be listed on the National Stock Exchange and the Bombay Stock Exchange by June 2008.

 

About NPIL Laboratories and Diagnostics Private Limited (name proposed to be changed to Piramal Diagnostic Services Private Limited)

NPIL Laboratories and Diagnostics Private Limited (“NLDL”, name proposed to be changed to Piramal Diagnostic Services Private Limited), a subsidiary of Nicholas Piramal India Limited, offers a full range of clinical diagnostic services under the brand Wellspring. It is the largest player in this field in India and the only one to offer high-end, state-of-the-art imaging and the full range of pathological services under one roof. Operating 90 centres spread across 57 locations in India, NLDL serves all segments in this business and is the leader in each. Some of the best doctors in the fields of radiology and pathology work with this organisation. The aim of NLDL is to be present, in the next two years, in all cities with a population of 1 million or more.

 

The name change from NPIL Laboratories and Diagnostics Private Limited to Piramal Diagnostic Services Private Limited is subject to approval by the Company’s shareholders and Central Government.

 

About Gujarat Glass Limited (name proposed to be changed to Piramal Glass Limited)

Gujarat Glass Limited (“GGL”, name proposed to be changed to Piramal Glass Limited) is a leading global manufacturer of flaconnage (glass containers) for pharmaceuticals, foods & beverages and cosmetics and perfumery industries. The Company had revenues of US $ 180 million in FY2007.

 

GGL has a global footprint, with manufacturing facilities located in USA, Sri Lanka and India. The Company markets its products to more than 54 countries across the globe. The Company is also the largest producer of nail-polish bottles globally, with more than 30% market share.

 

GGL is listed on the National Stock Exchange (Ticker: GUJGLASS) and the Bombay Stock Exchange (Ticker: 532949).

 

The name change from Gujarat Glass Limited to Piramal Glass Limited is subject to approval by the Company’s shareholders and Central Government.

 

About Indiareit Fund Advisors Private Limited

Indiareit Fund Advisors Private Limited is a boutique real estate venture capital fund, promoted by the Piramal Group and backed by unique strengths, including a team constituted by seasoned real estate professionals and prudent investment philosophy. The fund currently manages a total corpus of US$ 450 million, raised through two series of domestic funds as well as an offshore fund. Indiareit Fund Advisors Private Limited is amongst the first real estate equity funds focusing on high-net-worth individuals (HNIs)._

 

For further information, please contact:

Hanmer & Partners

Glen D’Souza / Tanya Desousa

Mob: 09821414845 / 09819064509

Tel: +91-22-67524600

 

Nicholas Piramal India Limited

Ganesh Somwanshi

Manager - Corporate Communications

Mob: 09819726282

Tel. (Direct): +91-22-30467873

Email: ganesh.somwanshi@nicholaspiramal.co.in

 

 

 

 

Nicholas Piramal reports Q4 FY2007 results; Consolidated Revenues up 51.7% to Rs. 6.4 billion, Operating Profit up 137.9% to Rs. 848.9 million, Net Profit up 262.2% to Rs. 549.5 million.

 

Avecia acquisition successfully turned-around, both UK and Canadian operations are now profitable

 

Mumbai, 26 April 2007:  Nicholas Piramal India Limited (NPIL) today reported fourth quarter (Q4) and annual audited results for FY2007.

 

Consolidated total operating income for the quarter ended 31 March 2007 was up 51.7% to Rs. 6.4 billion over Q4-FY06, while Operating profit increased 137.9% to Rs. 848.9 million, net profit for the quarter was up 262.2% to Rs. 549.5 million.

 

During the quarter, NPIL’s domestic branded formulations business grew 13.3% to Rs.2.6, billion driven by increased productivity of the sales force and growth in both large brands and new products. Global sales (excluding India) grew 146.1% to Rs. 3.2 billion, driven by consolidation of businesses acquired from Avecia Pharmaceuticals and formerly Pfizer’s Morpeth facility, UK. Custom manufacturing revenues relating to contracts from Indian facilities were Rs.227.2 million during the quarter.

 

During FY2007, NPIL acquired Pfizer’s manufacturing facility at Morpeth, UK. The acquisition is alongwith a Pfizer supply contract till November 2011, with potential revenues totaling US$350 million. Morpeth facility has since been fully integrated with NPIL’s global custom manufacturing operations. During the year, NPIL also completed turnaround of Avecia Pharmaceuticals. At the time of its acquisition in December 2005, Avecia Pharmaceuticals had operating losses of 12.8%, because of lower revenues and the high cost structure at its UK operations. During the year, NPIL has grown Avecia revenues significantly, while reducing its material sourcing costs and fixed expenses at the same time. This has resulted in Avecia reporting a positive Net Profit for FY2007 from both its Canadian and UK operations.

 

On the Research & Development front, NPIL continued to invest and build its program. R&D expenditure during the year was up 63% to Rs. 1.3 billion. NPIL’s discovery research pipeline has expanded to thirteen new chemical entities. Of these, three molecules are in human phase I/II trials. The Company also signed a drug development agreement with Eli Lilly & Company for development of a novel, patented, late pre-clinical drug candidate in the metabolic disorders segment. NPIL will design and execute the global clinical development program of this optimized lead, and take it upto beginning of Phase III. In return, NPIL will receive milestone payments upto USD 100 million. If the molecule is successfully launched, NPIL will also get commercialization rights for select markets and royalties on global sales.

 

For the year ended 31 March 2007, Nicholas Piramal’s Consolidated sales grew 55.0% to Rs. 24.7 billion, while Operating profit increased 83.0% to Rs. 3.8 billion. Net profit for the year was up 80.7% to Rs. 2.2 billion. Consolidated EPS for the year was Rs. 10.3 as compared to Rs. 5.8 for FY2006.

The Board has declared today a final dividend of 25%. This is in addition to the interim dividend of 150% making it to a total of 175% for the year.


About Nicholas Piramal India Limited: Nicholas Piramal India Limited ("NPIL") is one of India's leading pharmaceutical companies with a growth track record of above 30% CAGR since 1988. The Company had consolidated Revenues of Rs. 25 billion in FY2006-07. NPIL is currently ranked fourth in the Indian market with a diverse product portfolio spanning nine therapeutic areas. The Company has R&D capabilities in Custom Chemical Synthesis, Process Innovation, NDDS and Discovery Research. It has USFDA inspected formulations facilities and USFDA-approved API facilities, without any 483s.


NPIL has a long track record of successful collaboration with innovator companies. Since 2003, the Company has made significant investments to become a global custom manufacturing organisation (“CMO") for large and medium-sized innovator companies. Nicholas Piramal has a global CMO footprint across North America, Europe & Asia, and is committed to respecting Intellectual Property.

 

Nicholas Piramal enters into a Joint Venture with ARKRAY, Inc. Japan, for marketing Diagnostic products.

Mumbai, India 19 December 2007: Nicholas Piramal India Limited (“NPIL”) (NSE: NICOLASPIR, BSE: 500302) and Kyoto, Japan based ARKRAY, Inc. have entered into a 49:51 Joint Venture to market Diagnostic products, mainly Self-Monitoring Blood Glucose System in the Indian market. ARKRAY, Inc. is a market leader in the self-monitoring blood glucose market in Japan with a dominant market share. Its products are also distributed in over 80 countries around the world.


Under the agreement, NPIL will transfer all its existing Blood Glucose Monitoring Business into the JV for a consideration of Rs. 40 million. The JV will market these products and will also launch other blood glucose-monitoring Systems of ARKRAY, Inc. including new product in India. The blood glucose system market in India is estimated to be more than Rs. 1 billion in size and is estimated to be growing around 20% p.a.


Commenting on the collaboration agreement, Dr. Swati Piramal, Director - Strategic Alliances & Communications, NPIL said: “India has about 41 million people who suffer from diabetes – a debilitating disease. By collaborating with ARKRAY – NPIL plans to bring all the latest technology blood glucose monitoring products launched by ARKRAY to India and thereby reduce the burden of disease.”


About Nicholas Piramal India Limited:

Nicholas Piramal India Limited ("NPIL") is one of India's leading pharmaceutical companies with a growth track record of 30% Revenues CAGR since 1988. The Company is currently ranked fourth in the Indian market with a diverse product portfolio spanning nine therapeutic areas. NPIL's had consolidated Revenues of US $ 602 million in FY 2006-07. The Company has R&D capabilities in Discovery Research, Custom Chemical Synthesis, Process Innovation, and Drug Delivery Systems. It has world-class USFDA-approved formulations and API facilities without any 483s.


NPIL has a long track record of successful collaboration with innovator companies. Since early-2000, the Company has made significant investments in Discovery Research and Custom Manufacturing Operations (CMO) for Innovator Companies. Nicholas Piramal has a global CMO footprint across North America, Europe & Asia, and is committed to respecting Intellectual Property.


NPIL is listed in India on the Bombay Stock Exchange and National Stock Exchange.

 

About ARKRAY, Inc.:

ARKRAY, Inc. is a leading healthcare company specializing in diagnostic products and medical services. Established in 1960, ARKRAY develops, manufactures and markets innovative diagnostic products and related medical devices used in managing chronic diseases such as diabetes. The company’s primary products include a broad range of blood glucose monitoring systems, safety lancets and lancing devices, as well as urine testing equipments and HbA1c analyzer.


www.arkray.co.jp/english/index.html

 

Nicholas Piramal Secures Product Patent from US Patent & Trademark Office for its Cyclin-Dependent Kinase (CDK) inhibitors

 

Dr. Noopur Raje from Dana Faber Cancer Institute presenting on NPIL’s lead compound P-276-00 at 49th American Society of Hematology Conference at Atlanta, USA

Mumbai, India 10 December 2007: Nicholas Piramal India Limited (NPIL) announced today that the US Patent & Trademark office has granted Product Patent to NPIL. The granted claims of the patent cover the novel compounds, including NPIL’s clinical candidate P-276-00, and processes for their preparation. These compounds are being developed as therapeutic agents useful in the treatment of cancer.


Earlier NPIL has been granted a patent in South Africa for its CDK inhibitors. NPIL has related national phase applications in 14 other countries. The Company has filed five other patent applications covering different aspects of its CDK inhibitors.


Dr. Noopur Raje from Dr. Ken Anderson group from Dana Faber Cancer Institute is giving an oral presentation today at 49th Annual Meeting and Exposition of American Society of Hematology (ASH) being held at Atlanta, Georgia in U.S. from December 8-10, 2007. They have carried out independent studies on NPIL’s lead compound P-276-00 in Multiple Myeloma and will be presenting new data on its pre-clinical studies.


The ASH Annual Meeting is the premier forum for physicians and researchers to hear the most up-to-date developments in Hematology. The event attracts over 16,000 Hematologists and other health-care professionals from 100 countries around the world.


Dr. (Mrs.) Swati Piramal, Director – Strategic Alliances & Communications, NPIL said, "The presentation of data on pre-clinical studies at annual conference of American Society of Hematology marks an important milestone for development of NPIL’s Oncology compound."

 

About Nicholas Piramal India Limited:

Nicholas Piramal India Limited ("NPIL") is one of India's largest pharmaceutical companies with a growth track record of above 30% CAGR since 1988. The Company is currently ranked 4th in the Indian market with a diverse product portfolio spanning nine therapeutic areas. NPIL's had consolidated Revenues of Rs. 24.7 billion in 2006-07. The Company has R&D capabilities in Custom Chemical Synthesis, Process Innovation, NDDS and Basic Research. It has world-class USFDA-approved formulations and API facilities without any 483s.


NPIL has a long track record of successful collaboration with innovator companies. Since 2003, the Company has made significant investments to become a global custom manufacturing organisation (“CMO") for large and medium-sized innovator companies. Nicholas Piramal has a global CMO footprint across North America, Europe & Asia, and is committed to respecting Intellectual Property.

 

 

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 identifor the year 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.40.45

UK Pound

1

Rs.81.20

Euro

1

Rs.63.48

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

8

PAID-UP CAPITAL

1~10

8

OPERATING SCALE

1~10

8

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

8

--PROFITABILIRY

1~10

8

--LIQUIDITY

1~10

8

--LEVERAGE

1~10

8

--RESERVES

1~10

8

--CREDIT LINES

1~10

9

--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

 

73

 

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

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions