MIRA
INFORM REPORT
|
Report Date : |
20.10.2008 |
IDENTIFICATION
DETAILS
|
Name : |
THE HIMALAYA DRUG COMPANY |
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Registered Office : |
Makali, Tumkur Road, Bangalore – 562 123, Karnataka |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
01.01.1930 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRT00185D |
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Legal Form : |
Partnership concern
with an Unlimited Liability of the Partners |
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Line of Business : |
Manufacturer, Exporter and Importer of Herbal Health Care Products |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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Maximum Credit Limit : |
USD 500000 |
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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 an old
established and reputed concern engaged in manufacturer and exporter of herbal
formulations. It has large manufacturing facilities. It has office/
representatives in almost all the countries. The concern is doing well. Partners are
experienced, respectable and resourceful businessmen. It has been proposed to
change the partnership deed. The concern can
be considered good for any normal business dealings at usual trade terms and
conditions. |
INFORMATION PARTED
BY
|
Name : |
Ms. Jayashree Ullal |
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Designation : |
Joint Chief Executive Officer |
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Date : |
02.06.2008 |
LOCATIONS
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Registered Office : |
Tumkur Road, Makali, Bangalore -562 123, Karnataka, India |
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Tel. No.: |
91-80-23714444 |
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Fax No.: |
91-80-23714468 |
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E-Mail : |
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Website : |
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Area : |
30 Acres (Owned) |
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Overseas Offices : |
Located at v Cayman Islands v
Singapore v
UAE v
U.S.A. v
Bahrain v
Belgium v
Syria v
Bulgaria v
Canada v
Costa Rica v
Czech
Republic v
Ecuador v
Esstonia v
Fiji v
Ghana v
Greece v
Guatemala v
Holland v
Italy v
Kenya v
Kuwait v
Malaysia v
Mauritius v
Macedonia v
Nigeria v
Polant v
Portugal v
Qatar v
Romania v
Russia v
Serbia and
Montenegro v
Slovak
Republic v
Spain v
Sri Lanka v
Sultanate of
Oman s v
Switzerland v
Tanzania v
Uganda v
Ukraine v
Venezuela v
Zimbabwe |
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Branches : |
Located at:-
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PARTNERS
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Name : |
Mr. Meral Manal |
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Designation : |
Partner |
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Date of Birth/Age : |
62 years |
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Qualification : |
42 years |
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Name : |
Mr. Ravi Prasad |
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Designation : |
President and Chief Executive Officer |
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Date of Birth/Age : |
47 years |
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Qualification : |
22 years |
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Name : |
Dr. S. K. Mitra |
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Designation : |
Partner |
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Date of Birth/Age : |
50 years |
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Name : |
Mr. Shabir
Sheriff |
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Designation : |
Partner |
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Date of Birth/Age : |
50 years |
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Qualification : |
15 years |
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Experience : |
15 years |
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Name : |
Himalaya Global Holding Limited |
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Designation : |
Partner |
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Name : |
Himalaya Drug Company Private Limited |
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Designation : |
Partner |
BUSINESS DETAILS
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Line of Business : |
Manufacturer, Exporter and Importer of Herbal Health Care Products |
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Products : |
Medicinal
Range v Bonnisan (Tonic for babbies v
Koflet
(Cough reliever) v
Liv. 52
(tablets liver disorders) v
Confido v
Himocolin
Gel v
Himplasia v
Abana
(Anti-hyperlipidemic) v
Clarina
(Anti acne cream) v
Cystone
(Effective against urinary calculi and UTI) v
Diabecon
(Oral anti-diabetic) v
Diak of
(Cough Syrup for diabetics) v
Diarex (for
diarrhea) v
Mentat
(Memory enhancer) v
Septillin
(Immunomodulator) v
Clarina
(Anti-acne cream) v
Evercare (Uterine
Tonic) v
Lukol
(Treats Leukorrhea) v
Menosan
(Menopausal Confort) v
Speman
(Increases Sperm Count) v
Tentex Forte
(Increases Libido) v
Tentex Royal
(Enhances desire and improves performance) v
Homcocid
(Relieves hyperacidity) v
Himcospaz
(Antispasmodic) v
Ophthacare
(For eye Care) v
Renalka v
Reosto v
Styplon v
V-Gel v
Geriforte v
Herbolax v
PureHands v
Purim Body
Care v
Anti Stress v
Cold Relief v
Digestive
Health v
Pimple
Control v
Weight
Control v
Foot Care v
Multi
Purpose Cream v
Pain Relief v
Face Packs v
Facial Toner v
Facial
Cleansers v
Fairness
Cream v
Moisturisers
v
Skin
Nutrients v
Soap Free
Face Washes Hair
Care v Conditioner v
Dandruff
Control v
Hair Loss
Control v
Protein
Shampoos |
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Exports : |
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Countries : |
v Russia v UAE v U.S.A v Europe v South East |
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Imports : |
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Products : |
v Fragrances v Flavors v Soap Nuddles v Grid v Machinery |
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Countries : |
v
Europe v
USA |
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Terms : |
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Selling : |
Advance Payment For Indian Clients : Cash on Delivery For international Clients : Credit 120 to 180 Days |
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Purchasing : |
Advances Payments and L/C at sight terms 120 Days |
GENERAL
INFORMATION
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Suppliers : |
v Farmers Co-operative Societies in
Karnataka v
Sai
Packaging, Bangalore v
National
Polymers, Mumbai |
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Customers : |
v Transaltlawtic, Moscow v
National
Medical Centre, Dubai v
Coffee Day
Outlets, India v
Shoppers
Stops, India v
Food world,
India v
Life Style,
India |
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No. of Employees : |
3000 |
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Bankers : |
v Union Bank of India Commercial Street, Bangalore - 560 001,
Karnataka, India v
Bank of Nova
Scotia M. G. Road,
Bangalore – 560 001, Karnataka, India |
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Facilities : |
The concern enjoy
substantial facilities from its bankers
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Vishnu and
Company Chartered
Accountant |
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Address : |
Bangalore – 560 001, Karnataka, India |
CAPITAL STRUCTURE
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Capital Investment : |
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Owned : |
Rs. 100.000
Millions |
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Borrowed : |
-- |
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Total : |
Rs. 100.000
Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
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Particulars |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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Sales Turnover |
5500.000 |
5500.000 |
4000.000 |
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Export Value |
N.A. |
N.A. |
1000.000 |
LOCAL AGENCY
FURTHER INFORMATION
History
Subject was
established in the year 1930 at Dehradun in Uttar Pradesh as a partnership
concern.
The office shifted
to the present address during the year 1975.
Seventy-four
years ago, on a visit to Burma, Himalaya’s founder, Mr. M. Manal, saw restless elephants
being fed with a root to pacify them. The plant from which this was taken is Rauwolfia
serpentina. Fascinated by the plant's
effect on elephants, he had it scientifically evaluated. After extensive
research, Serpina, the world’s first anti-hypertensive drug, was launched in
1934
Milestones
|
Year |
Achievement |
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1930 |
Mr. M. Mangal founds
The Himalaya Drug Company. His Vision put Aurveda on par with modern medicine
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1934 |
Launch of
Serpina, the world’s first anti-hypertensive drug, derived from Rauwolfia
Serpentina |
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1950 |
Dr. Roshan M. Captain,
Ph. D. Joins the concern and Spearheads research and development. |
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1955 |
Liv.52, a
hepatoprotective, is launched and goes on to become one of the world’s
top-selling drugs. |
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1964 |
Mr. Meraj A. Manal,
the founder’s son, joins the concern. |
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1965 |
Mr. Karstein, a
German pharmaceutical consultant, directs the concern’s focus towards
allopathic medical practitioners. |
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1975 |
An advanced manufacturing
facility is set up in Bangalore. The facility grows to become the corporate
headquarters |
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1991 |
The concern’s R
and D center moves to Bangalore. Research and development becomes a very
important aspect of the concern’s focus. |
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1996 |
The concern opens
its US office at Houston, Texas. |
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1998 |
The Animal Health
Product range for commercial livestock is launched. |
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1999 |
Himalaya Herbals
launches its personal healthcare products in India. |
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2000 |
The concern
launches a special range for pets called the Companion Care range. |
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2001 |
The concern adopts a new unified
brand identity |
Profile
Marketing Ayurvedic Herbal Tradition
The Himalayan Drug
Concern has been instrumental in converting Ayurvedic herbal tradition into
cutting edge medical technology. It was founded in 1930 by M Manal, with the
prime objective of making quality phytopharmaceuticals available to the public
in standardized packages. A short time later M Misal, Manal's brother, joined
the Concern.
The beginnings were humble. A hand operated tablet punching machine was used to
process herbal mixtures into single pills. Later, the pharmaceutical Concern
expanded its base. The discovery of the world's first antihypertensive
phytomedicine, SERPINAâ, was an exercise in serendipity. On a trip to Burma,
the ever curious Manal observed the local people feeding some roots to elephants
to pacify them. The plant, Rauwolfia serpentina, Manal discovered, was not only
a natural tranquilizer but also had antihypertensive properties.
The Concern's chairman Meraj A Manal, son of the founder, continues to run the
organization with the same spirit as his father. Today, as an Indian
multinational, their products have found global acceptance with medical
fraternities and consumers in over 40 countries.
Research and Development
The concern's R and D policy is based on the holistic approach to the treatment
of diseases. In-depth research and quality control are the watch words here. To
satisfy this purpose, the concern conducts primary research on each of its
medications for a period of about ten years before introducing it to the public.
The concern policy manifests itself in every facet of its R and D wing. In the
quest to evolve error-free, safe medical formulas, the R and D center of the
Concern exercises utmost care researching old remedies and empirically
validating their efficacy and safety before each formulation is finalized.
To standardize these millennia-old formulations, the R and D center pursues its
ongoing research projects in several facilities, each of which concentrates on
these specific activities:
Pharmacognosy
v
Establishes
the bona fides of herbal materials through morphological and
microscopic studies.
v
Maintenance of
a herbarium of phyto-medical materials.
Formulation and
Development
v
Carries out
pre-formulation studies to check the bio-chemical action of ingredients.
v
Conducts
trials to assess the safety and efficacy of formulations.
v
Conducts
accelerated stability trials to check the physical, chemical, microbiological
and biological aspects.
v
Standardizes
the process to ensure uniform quality.
v
Transfers technology
to the production department.
Immuno-pharmacology
v
Seeks to study
the mechanism of action of drugs at the molecular level.
v
Attempts to
understand the endogenous mediators involved in the activity.
v
Works on
developing immuno-protective agents to counter opportunistic
infections in AIDS, carcinogenic malignancy, septic
shock, organ transplantation and chronic infections.
v Seeks to substitute work with in-vitro (in
the laboratory) cell line models for in- vivo (in
the body) experiments.
v
All the above
procedures are repeated in the Ayurvedic CONCEPTS and Animal Health Product
Divisions (AHP) to ensure that the same high standards apply to all OTC
consumer and veterinary products.
Veterinary
pharmacology
v
Studies the
safety and efficacy of veterinary formulations in experimental and
clinical trials in different species of animals.
v
Studies the
mechanism of action in the formulations.
Achievements
Subject is the only
phytopharmaceutical concern whose Ayurvedic product, Liv 52, a
hepato-protective formula, is registered as a 'pharmaceutical speciality' in
Switzerland.
Himalaya's R and D
has been recognized as a Research Centre by the Rajiv Gandhi University
of Health Sciences, Karnataka, India.
The WHO has
sponsored a project, through the Ministry of Health in India, to
standardize medically useful herbs. Subject is one of the
companies chosen for the project.
Press Release
Himalaya Drug
Company expanding retail presence
Chennai, Oct. 17
The Rs 5000.000 millions subject will expand its retail presence in the
next two years and focus on launching “differentiated products that will marry
science with cosmetics,” says Mr Saket Gore, Business Head, Consumer Products
Division, Himalaya.
Mr Gore told Business Line that the concern will increase the
number of exclusive stores to 300 by end-2009. It has nearly 150 such stores
now.
The concern, which has been successfully experimenting with 60-70 sq.ft.
self-contained shops-in-shops in large-format departmental stores such as
FoodWorld in Hyderabad, Bangalore and Mumbai, will set up more of them in the
other metros. This format has worked especially well in the South, Mr Gore
said. There are 30 shops of this kind now. The concern has 130 products across
its various divisions including pharmaceuticals and consumer products.
Himalaya’s consumer products division’s current focus is on the skin,
hair and oral care segments. It has several launches lined up for the next few
months and is rapidly capitalising on the ‘neem’ category, developing a
complete range around it. It has face wash, face pack, a neem supplement and is
launching a soap and a face wash in a different delivery format shortly. On an
individual level, Himalaya’s neem face wash is the largest-selling product in
its category though it’s Garnier that has the greater market share in the
category (18.5 per cent) as it has more variants. Himalaya’s share here is 16
per cent, Mr Gore says.
Skincare
For Himalaya’s consumer products division, skincare, growing at 30-35 per
cent every year, is the biggest contributor, contributing 50 per cent of the
turnover. Haircare contributes 32 per cent. “Growth in the FMCG segment will
not come from me-too products but from differentiated products, such as
Himalaya’s hair conditioner which also acts a de-tangler,” says Mr Gore.
The concern has also launched a new TVC, significant in that this is
intended to be a sustained campaign after a gap of almost three years. Earlier
advertising, a year ago, was sporadic. This advertising urges consumers to turn
to Himalaya first, not as a last resort. It has also dispensed with the
grandmother that the concern’s advertising was famous for, as its objective now
is to appeal to youth. “The older advertising established the brand, spoke of
the relevance and efficacy of Ayurveda. Now, they need to speak to the youth,”
says Mr Gore.
Himalaya Drug Eyes Chunk of Export Mart
July 21, 2003
As the trend towards
alternative systems of medicine gathers pace, ayurveda is seen as a big opportunity
by drug makers. Leading the pack in this segment is the Rs 3000.000 millions
(Rs billion) privately held Himalaya Drug Concern. The concern exports to 55
countries and is now out to secure India's rightful place in the global
economy. Philipe Haydon,
business head of the pharmaceutical division, spoke to Rumi
Dutta on the concern's
strategy.
Subject originally started out as a pharmaceutical firm but is now also
into personal care products and cosmetics. Does this represent a change in
focus? Is it now going to be more of an FMCG company?
It is not true that
they are acquiring a FMCG look. They are a focused pharmaceuticals concern. The
vision is to have a presence across all the categories of healthcare with a
particular focus on products based on the idea of prevention and not cure. This
is precisely the reason why they have launched the new product Pure Hands, a
herbal health sanitiser under the pharma division. They will be marketing the
product through around 120,000 doctors across India. The product would be
introduced more under the prescriptive category and less as an over-the-counter
product. This is a unique strategy to educate the masses that the use of a hand
sanitiser is a doctor's advice for every individual.
What are the
investment plans for the current year?
They are setting up
a manufacturing-cum-research and development unit at Bangalore. The investment,
which is envisaged around Rs 1650.000 millions (Rs 1.65 billion), will be
funded through internal accruals and debt. The debt component is yet to be
decided upon.
Will you tap the
market for funding the expansion? ]
They have no plans
to go public.
What is the
export turnover and what is the growth potential through this route?
The exports stand at
Rs. 300.000 millions (Rs 300 million). They see a huge growth potential and are
moving ahead to tap it in a big way.
What is the
outlook for the next six months?
They hope to achieve
a 25 per cent growth in the current financial year. A slew of new products will
be launched in the coming months. The pharma division, which accounts for Rs
1800.000 millions (Rs 1.8 billion) of the total turnover of around Rs. 3000.000
millions (Rs 3 billion), will be the growth driver. The other divisions such as
personal care, consumer health and animal health are also poised for a healthy
growth.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources including
but not limited to: The Courts, India Prisons Service, Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction registered
against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or investigation
registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the concern is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
The 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.
The 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. 48.68 |
|
UK Pound |
1 |
Rs. 84.37 |
|
Euro |
1 |
Rs. 65.70 |
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 |
8 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
72 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
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, they have no basis upon which to
recommend credit dealings |
No Rating |
|