MIRA
INFORM REPORT
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Report Date : |
05.08.2011 |
IDENTIFICATION DETAILS
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Name : |
DR. REDDY’S LABORATORIES LIMITED |
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Registered
Office : |
8-2-337, Road No 3, Banjara Hills, Hyderabad -500034, Andhra Pradesh |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
24.02.1984 |
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Com. Reg. No.: |
01-004507 |
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Capital
Investment / Paid-up Capital : |
Rs.846.000 Millions |
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CIN No.: [Company Identification
No.] |
L85195AP1984PLC004507 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
HYDD00080D |
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Legal Form : |
A Public Limited
Liability Company. The Company’s Shares are Listed on the Stock Exchanges. |
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Line of Business
: |
Manufacturers and
Sellers of Bulk Drugs, Formulations and Diagnostic Reagents and Kits. |
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No. of Employees
: |
10,000 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
Aa (78) |
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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 240000000 |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an old, well – established and a reputed company engaged in
manufacturing and marketing of pharmaceuticals. The company manufacturers
wide range of pharmaceuticals products in The company can be considered good for normal business dealings under
usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
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Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
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Registered
Office : |
8-2-337, Road No 3, Banjara Hills, Hyderabad -500034, Andhra Pradesh,
India |
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Tel. No.: |
91-40-23731946/
23731397/ 26511723/ 55511900/ 66511532 |
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Fax No.: |
91-40-23731955/
23734504/ 23739666 |
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E-Mail : |
ssrinivasan@drreddys.com
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Website : |
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Corporate
Office/ Media
Relations: |
Greenlands,
Ameerpet, |
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Tel. No.: |
91-40-23731946/
47/ 48/ 49/ 50/ 66511620 |
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Fax No.: |
91-40-23731955/
66511621 |
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E-Mail : |
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Website : |
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Administrative
Office: |
Generics Survey
No. 41, FTO Unit, 3 Bachupally Ranga Reddy Disc, |
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Custom
Pharmaceuticals Services/ Discovery Research : |
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Tel No.: |
91-40-23043569/
23045439 |
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Fax No.: |
91-40-23044044/
23045438 |
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E-Mail : |
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Plants (In |
Bulk
Drugs – I, II, III and IV · Plot Nos. 137, 138 and 146, IDA Bollarum, Jinnaram Mandal, Medak District - 502 320, Andhra Pradesh · Plot Nos. 110 and 111, IDA Bollarum, Jinnaram Mandal, Medak District - 502 320, Andhra Pradesh · Plot Nos. 116, IDA Bollarum, Jinnaram Mandal, Medak District - 502 320, Andhra Pradesh · Plot No. 9/A, Phase III, IDA Jeedimetla Ranga Reddy District – 500 055, Andhra Pradesh · Bulk Drugs – V Peddadevulapally, Tripuraram Mandal, Nalgonda District – 508207, · Bulk Drugs – VI IDA Pydibheemavaram, Ransthal
Mandal, Srikakulam District – 532409, Andhra Pradesh · Bulk Drugs – IX IDA
Pydibheemavaram, Ransthal Mandal, Srikakularrf Dist, AP 532 409 Formulations ·
I – IDA
Bollaram Jinnaram Mandal, Medak District – 502320, · II- Survey No. 42, Bachupally Quthbullapur Mandal, Ranga Reddy District – 500123, Andhra Pradesh, India · III – R S No. 63/3 and 63/4, Thiruvandarkoil Mannvipet, Pondicherry – 605102, Tamil Nadu, India ·
IV – Ward
– F, Block –4, Adavipolam, Yanam, ·
V – Plot No. A-3 to A-6, Phase 1-A,
Verna Industiral Estate, Verna, ·
VI – Khol, Nalagarh, Solan, Pradesh Generics ·
Survey No. 41, Bachupally Quthbullapur Mandal,
Ranga Reddy District – 500043, Boitech/Critical Care/Diagnostics ·
Survey No.47, Bachupally Quthbullapur Mandal,
Ranga Reddy District – 500043, Custom Chemical Services/Discovery
Research ·
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Plants
(Outside |
§
§
Huangpujiangzhonglu
Kunshan Economic and §
208-214,
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Finished Dosage - Generics: ( |
3600 Arco
Corporate Drive, |
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Tel. No.: |
1-866 733-3952 |
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Finished Dosage - Generics: ( |
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Tel. No.: |
0044 1753 5125 00 |
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Fax No.: |
0044 1753 6966 77 |
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Foundation: |
6-3-655/12,
Somajiguda, |
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Tel. No.: |
91-40-65343424/
23304199/ 1868 |
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Fax No.: |
91-40-23301085 |
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E-Mail : |
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Website : |
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Active Pharmaceutical
Ingredients : |
8-2-120/76/1/B, 2nd Floor, Ashoka Hitec Chambers, Road No.
2, Banjara Hills - 500034, |
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Tel. No.: |
91-40-66470960 |
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Fax No.: |
91-40-23541224 |
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Branded
Finished Dosages : |
Block - III, 5th Floor, White House - Near Lifestyle,
Begumpet, |
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Tel No.: |
91-40-66022500 |
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Business
Development : |
200 Somerset Corporate Blvd. |
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Tel. No.: |
1 908-203-4984 |
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Fax No.: |
1 908-203-4970 |
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E-Mail : |
DIRECTORS
AS ON 31.03.2011
|
Name |
Mr. K. Satish Reddy |
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Designation |
Managing Director and Chief Operating Officer |
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Qualification |
B. Tech., M. S. |
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Date of
Joining |
18.01.1993 |
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Previous
Employment |
Director – Globe Organics Limited |
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Other
Directorships |
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Name : |
Dr. Ashok Sekhar Ganguly |
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Designation : |
Director |
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Name : |
Dr. Omkar Goswami |
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Designation : |
Director |
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Date of Appointment : |
21.07.2008 |
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Name : |
Mr. Ravi Bhoothalingam |
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Designation : |
Director |
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Date of Appointment : |
30.10.2000 |
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Name : |
Mr. Anupam Puri |
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Designation : |
Non – Executive Director |
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Date of Appointment : |
04.06.2002 |
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Name : |
Mr. J P Moreau |
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Designation : |
Director |
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Date of Appointment : |
18.05.2007 |
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Name : |
Mrs. Kalpana Morparia |
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Designation : |
Director |
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Date of Appointment : |
05.06.2007 |
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Name : |
Mr. Bruce L A Carter |
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Designation : |
Additional Director |
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Date of Appointment : |
21.07.2008 |
KEY EXECUTIVES
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Name |
Mr. V. S. Suresh |
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Designation |
Company Secretary |
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Name |
Mr. Satish Reddy |
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Designation |
Chief Operating Officer |
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Qualification |
B. Tech., M. S. |
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Date of
Joining |
18th January, 1993 |
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Previous
Employment |
Director – Globe Organics Limited |
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Other
Directorships |
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Name |
Mr. G V. Prasad |
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Designation |
Executive Vice Chairman and CEO |
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Date of Appointment : |
08.04.1986 |
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Name |
Mr. Abhijit Mukherjee |
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Designation |
President |
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Name |
Mr. K. B. Sankara Rao |
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Designation |
Executive Vice President |
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Name |
Mr. Saumen Chakraborthy |
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Designation |
Executive Vice President |
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Name |
Mr. Vilas M. Dholye |
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Designation |
Senior Vice President |
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Name |
Mr. Amit Patel |
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Designation |
Senior Vice President, North America
Genrics |
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Name |
Dr. Cartikeya Reddy |
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Designation |
Senior Vice President, Biologics |
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Name |
Dr. R Ananthanarayanan |
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Designation |
President Pharmaceutical Services and
Active Ingredients |
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Name |
Mr. Umang Vohar |
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Designation |
Senior Vice President and Chief Financial
Officer |
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Name |
Dr. Raghav Chari |
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Designation |
Senior Vice President, Proprietory Products
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Name : |
Mr. G.V. Prasad |
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Designation : |
Vice Chariman and Chief Executive Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.06.2011
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Names of Shareholders |
No. of Shares |
Percentage
of Holding |
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(A) Shareholding of Promoter and Promoter Group |
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4289484 |
3.13 |
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39128328 |
28.51 |
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(B) Public Shareholding |
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11019783 |
8.03 |
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554483 |
0.40 |
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13334446 |
9.72 |
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42053751 |
30.64 |
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9555560 |
6.96 |
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13179258 |
9.60 |
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959497 |
0.70 |
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3171423 |
2.31 |
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470794 |
0.34 |
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2698129 |
1.97 |
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2500 |
-- |
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(C) Shares held
by Custodians and against which Depository Receipts have been issued |
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Public |
3229819 |
-- |
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Total |
169475832 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 millionBUSINESS DETAILS
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Line of Business : |
Manufacturers and
Sellers of Bulk Drugs, Formulations and Diagnostic Reagents and Kits. |
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Products : |
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PRODUCTION STATUS AS ON 31.03.2011
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Class
of Goods |
Unit |
Installed Capacity |
Actual Production |
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Formulations |
Million Units |
6363 |
4759 |
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Active Pharmaceutical ingredients and
intermediates [API] |
Tones |
4087 |
3560 |
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Generics |
Million Units |
11727 |
6656 |
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Biotechnology – on single shift basis |
Grams |
-- |
13426 |
Notes:
(i)
In terms of press Note no 4 (1994 series) dated
October 25, 1994 issued by the department of Industrial Development, Ministry of
Industry, Government of India and Notification no. S.O. 137 (E) dated March 01,
1999 issued by the Department of Industrial Policy and Promotion, Ministry of
Industry, Government of India, Industrial licencing has been abolished in
respect of bulk drugs and formulations. Hence there are no registered /
Licenced capacities for these bulk drugs and formulations.
(ii)
Installed capacities are as certified by Management
and have not been verified by the auditors as this is a technical matter.
(iii)
Actual production of Formulations includes 118
million units (previous year: 292 million units) produced on loan licensing
basis from outside parties.
(iv)
Actual production of API includes 443 tones
(previous year: 822 tones) produced on loan licensing basis from outside
parties.
GENERAL INFORMATION
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No. of Employees : |
10,000
(approximately) |
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Bankers : |
·
Allahabad
Bank, Industrial Finance Branch, Secunderabad, ·
Bank
of Khairatabad Branch, ·
Canara
Bank Basheer Bagh, ·
Canara
·
Citi
Bank ·
Global
Trust Bank Secunderabad, ·
HDFC
Bank ·
The Hongkong
and Shanghai Banking Corporation Limited ·
State
Bank of Overseas Branch, ·
State
Bank of Industrial Finance Branch, ·
State
Bank of Industrial Finance Branch, ·
Standard
Chartered Grindlays Bank Limited ·
Andhra
Bank Balanagar Branch, |
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Facilities : |
Notes: 1. Loan from
Indian Renewable Energy Development Agency Limited is secured by way of
hypothecation of specific movable assets pertaining to the Solar Grid Interactive Power
Plant. The loan was repayable in quarterly installments of Rs. 1.48 each
quarter and carried an interest rate of 2% per annum. This loan has been
repaid during the year. 2. Finance lease
obligations represent present value of minimum lease rentals payable for the
vehicles leased by the Company and is secured by hypothecation of those
vehicles.
Notes: 1.
Refer Note No 29 of Schedule 20. Amount repayable
in 12 months is Rs. Nil. 2.
Amount repayable in 12 months is Rs. 2. 3.
Foreign Currency Packing Credit comprises loans from
J.P. Morgan Chase, The Bank of Tokyo-Mitsubishi UFJ Limited, BNP Paribas and
HSBC carrying interest rates of LIBOR plus 52 – 80 bps; loan from Credit
Agricole Corporate and Investment Bank and The Bank of Nova Scotia carrying a
fixed rate of interest of 1.120% – 2.085% per annum, which are repayable on
expiry of 6 months from the date of drawdown; Rupee packing credit from State
Bank of India carrying interest rate of 8.75% per annum. Packing Credit loans
for the previous year comprised foreign currency packing credit loan that
were taken from Standard Chartered Bank, The Bank of Nova Scotia, BNP
Paribas, ABN Amro Bank and HSBC carrying interest rates of LIBOR plus 40 – 75
bps, repayable on expiry of 6 months from the date of drawdown and Rupee
packing credit from State Bank of India carrying interest rate of 5% per
annum. 4.
Bank overdraft is on the current accounts with
Citibank, State Bank of India, HDFC and HSBC bank carrying interest rates of 10.50%,
11.00%, 12.00% and 10.50% per annum, respectively. (Bank Overdraft in the
previous year was on current accounts with Citibank, State Bank of India and
HDFC Bank carrying interest rates of 10.50%, 10.25% and 14.50% per annum,
respectively). |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Bharat S. Raut
and Company Chartered
Accountants |
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Subsidiaries : |
·
DRL Investments Limited, India; ·
Reddy Pharmaceuticals Hong Kong Limited, Hong
Kong; ·
OOO JV Reddy Biomed Limited, Russia; ·
Reddy Antilles NV, Netherlands; ·
Reddy Netherlands BV, Netherlands; ·
Reddy US Therapeutics Inc., USA; ·
Dr. Reddy’s Laboratories Inc., USA; ·
Reddy Cheminor SA, France; ·
Dr. Reddy’s Farmaceutica Do Brasil Limited,
Brazil; ·
Cheminor Investments Limited, India; ·
Aurigene Discovery Technologies Limited, India; ·
Aurigene Discovery Technologies Inc., USA; ·
Dr. Reddy’s Laboratories (EU) Limited, UK; ·
Dr. Reddy’s Laboratories (UK) Limited, UK; ·
Dr. Reddy’s Laboratories (Proprietary) Limited,
South Africa; ·
OOO Dr. Reddy’s Laboratories Limited, Russia; ·
Promius Pharma LLC (formerly Reddy
Pharmaceuticals LLC, USA); ·
Dr. Reddy’s Bio-sciences Limited, India; ·
Globe Enterprises (a partnership firm in India)
(dissolved on 1 July 2010); ·
Trigenesis Therapeutics Inc., USA; ·
Industrias Quimicas Falcon de Mexico, SA de CV,
Mexico; ·
betapharm Arzneimittel GmbH, Germany; ·
beta Healthcare Solutions GmbH, Germany; ·
beta institute fur sozialmedizinische Forschung
und Entwicklung GmbH, Germany; ·
Reddy Holding GmbH, Germany; ·
Lacock Holdings Limited, Cyprus; ·
Reddy Pharma Iberia SA, Spain; ·
Reddy Pharma Italia SPA, Italy; ·
Dr. Reddy’s Laboratories (Australia) Pty.
Limited, Australia ·
Dr. Reddy’s Laboratories SA, Switzerland ·
Eurobridge Consulting BV, Netherlands ·
OOO DRS LLC, Russia ·
Aurigene Discovery Technologies (Malaysia) Sdn
Bhd ·
Dr. Reddy’s New Zealand Limited, New Zealand
(formerly Affordable Health Care Limited) ·
Dr. Reddy’s Laboratories ILAC TICARET Limited
SIRKETI, Turkey; ·
Dr. Reddy’s SRL, Italy (formerly Jet Generici
SRL); ·
Dr. Reddy’s Laboratories Lousiana LLC, USA; ·
Chirotech Technology Limited, UK; ·
Dr. Reddy’s Pharma SEZ Limited, India (from 8
July 2009); ·
Dr. Reddy’s Laboratories International SA,
Switzerland (from 24 March 2010); ·
Idea2Enterprises (India) Private Limited, India
(from 30 June 2010); ·
Dr. Reddy’s Laboratories Romania SRL, Romania
(from 7 June 2010) ·
I-VEN Pharma Capital Limited, India (from 6
October 2010); ·
Dr. Reddy’s Laboratories Tennessee, LLC, USA
(from 7 October 2010); ·
Dr. Reddy’s Venezuela, CA, Venezuela (from 20
October 2010); ·
Macred India Private Limited, India (till 18 July
2010) ·
Perlecan Pharma Private Limited, India
(Amalgamated with the Company vide order dated 12 June 2009 by the High Court
of Judicature, ·
Andhra Pradesh, Hyderabad) |
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Associates : |
·
APR LLC, USA |
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Joint Ventures : |
·
Kunshan Rotam Reddy Pharmaceutical Company
Limited (“Reddy Kunshan”), China |
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Enterprises
where principal shareholders have control or significant influence (“Significant
interest entities”) |
·
Dr. Reddy’s Research Foundation (“Research
Foundation”) ·
Dr. Reddy’s Holdings Limited ·
Institute of Life Sciences |
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
240000000 |
Equity Shares |
Rs.5/- each |
Rs.1200.000 Millions |
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Issued Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
169252932 |
Equity Shares |
Rs.5/- each |
Rs. 846.000
Millions |
|
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Subscribed & Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
169252732 |
Equity Shares |
Rs.5/- each |
Rs. 846.000
Millions |
|
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|
Notes:
1. Subscribed and
paid-up share capital includes:
(a)
111,732,202 (previous year: 111,732,202) equity
shares of Rs. 5/- each fully paid-up, allotted as bonus shares. Out of total,
34,974,400 shares were allotted by capitalisation of General Reserve and
76,757,802 equity shares allotted as bonus shares by capitalisation of the
Securities Premium Account in earlier years.
(b)
1,052,248 (previous year: 1,052,248) equity shares
of Rs. 5/- each allotted pursuant to a scheme of amalgamation with Standard
Equity Fund Limited without payments being received in cash.
(c)
20,571,768 (previous year: 20,571,768) equity
shares of Rs. 5/- each allotted and 82,800 (previous year: 82,800) equity
shares of Rs. 5/- each extinguished pursuant to a scheme of amalgamation with
erstwhile Cheminor Drugs Limited (CDL) without payments being received in cash.
(d)
40,750,000 (previous year: 40,750,000) equity
shares of Rs. 5/- each allotted against American Depository Shares (ADS).
(e)
17,204,304 (previous year: 17,204,304) equity
shares of Rs. 5/- each allotted against Global Depository Receipts (GDR) that
were converted into ADS during the year ended 31 March 2002.
(f)
226,776 (previous year: 226,776) equity shares of
Rs. 5/- each allotted to the erstwhile members of American Remedies Limited
(ARL) pursuant to a scheme of amalgamation with ARL without payments being
received in cash.
(g)
1,548,579 (previous year: 1,185,283) equity shares
of Rs. 5/- each allotted to the eligible employees of the Company and its
subsidiaries on exercise of the vested stock options in accordance with the
terms of exercise under the “Dr. Reddy’s Employees Stock Option Plan, 2002”.
(h)
190,634 (previous year: 146,583) equity shares of
Rs. 5/- each allotted to the eligible employees of the Company and its
subsidiaries on exercise of the vested stock options in accordance with the
terms of exercise under the “Dr. Reddy’s Employees Stock Option Plan, 2007”.
2. Represents 200
(previous year: 200) equity shares of Rs. 5/- each, amount paid-up Rs. 500/-
(rounded off in millions in the Schedule above) forfeited due to nonpayment of
allotment money.
3. 718,161
(previous year: 885,007) stock options are outstanding to be issued by the
Company on exercise of the vested stock options in accordance with the terms of
exercise under the “Dr. Reddy’s Employees Stock Option Plan, 2002” and 124,559
(previous year: 112,390) stock options are outstanding to be issued by the
Company on exercise of the vested stock options in accordance with the terms of
exercise under the “Dr. Reddy’s Employees ADR Stock Option Plan 2007”
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
846.000 |
844.000 |
842.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
59356.000 |
58302.000 |
51749.000 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
60202.000 |
59146.000 |
52591.000 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
7.000 |
8.000 |
26.000 |
|
|
2] Unsecured Loans |
14441.000 |
5624.000 |
6377.000 |
|
|
TOTAL BORROWING |
14448.000 |
5632.000 |
6403.000 |
|
|
DEFERRED TAX LIABILITIES |
1008.000 |
750.000 |
904.000 |
|
|
|
|
|
|
|
|
TOTAL |
75658.000 |
65528.000 |
59898.000 |
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
16910.000 |
13156.000 |
12108.000 |
|
|
Capital work-in-progress |
5704.000 |
7454.000 |
4112.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
24620.000 |
25551.000 |
17038.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
10632.000
|
8974.000
|
7351.000
|
|
|
Sundry Debtors |
17705.000
|
10605.000
|
14197.000
|
|
|
Cash & Bank Balances |
662.000
|
3680.000
|
3844.000
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
16401.000
|
13001.000
|
13085.000
|
|
Total
Current Assets |
45400.000
|
36260.000 |
38477.000 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
11207.000
|
11943.000
|
7800.000
|
|
|
Other Current Liabilities |
3200.000
|
2532.000
|
2702.000
|
|
|
Provisions |
2569.000
|
2418.000
|
1335.000
|
|
Total
Current Liabilities |
16976.000
|
16893.000 |
11837.000 |
|
|
Net Current Assets |
28424.000
|
19367.000
|
26640.000
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
75658.000 |
65528.000 |
59898.000 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.20111 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
52181.000 |
44011.000 |
39997.000 |
|
|
|
Other Income |
2060.000 |
3235.000 |
2982.000 |
|
|
|
TOTAL (A) |
54241.000 |
47246.000 |
42979.000 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Material Cost |
16705.000 |
14821.000 |
14699.000 |
|
|
|
Conversion Charges |
276.000 |
325.000 |
298.000 |
|
|
|
Excise Duty |
617.000 |
424.000 |
387.000 |
|
|
|
Personnel Costs |
7012.000 |
5100.000 |
4133.000 |
|
|
|
Operating and Other Expenses |
10895.000 |
9429.000 |
10086.000 |
|
|
|
Research and Development Expenses |
5128.000 |
3643.000 |
3847.000 |
|
|
|
Provision for decline in the value of long term investments |
557.000 |
321.000 |
112.000 |
|
|
|
TOTAL (B) |
41190.000 |
34063.000 |
33562.000 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
13051.000 |
13183.000 |
9417.000 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
53.000 |
111.000 |
185.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
12998.000 |
13072.000 |
9232.000 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
2479.000 |
2224.000 |
1937.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
10519.000 |
10848.000 |
7295.000 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
(1585.000) |
(2387.000) |
(1686.000) |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
8934.000 |
8461.000 |
5609.000 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
25541.000 |
20391.000 |
16575.000 |
|
|
|
|
|
|
|
|
|
Less |
Adjustment on account of merger of Perlecan Pharma Private Limited |
0.000 |
248.000 |
0.000 |
|
|
Add |
Transfer from General Reserve |
5972.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
893.000 |
846.000 |
561.000 |
|
|
|
Proposed
dividend on equity shares |
1904.000 |
1900.000 |
1053.000 |
|
|
|
Tax on proposed
dividend |
309.000 |
316.000 |
178.000 |
|
|
|
Dividend of
previous years (including tax) |
4.000 |
1.000 |
1.000 |
|
|
|
Debenture
Redemption Reserve |
19.000 |
0.0000 |
0.000 |
|
|
|
Issuance of
Bonus Debentures as per scheme |
5078.000 |
0.000 |
0.000 |
|
|
|
Dividend
Distribution Tax on distribution as per scheme |
843.000 |
0.000 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
31397.000 |
25541.000 |
20391.000 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
36718.000 |
30138.000 |
28925.000 |
|
|
|
Interest on loan
to subsidiaries |
336.000 |
351.000 |
320.000 |
|
|
|
Service income
and license fees |
310.000 |
1111.000 |
1979.000 |
|
|
|
Royalty income |
13.000 |
10.000 |
6.000 |
|
|
|
Guarantee
Commission |
24.000 |
0.000 |
0.000 |
|
|
|
Others |
76.000 |
4.000 |
3.000 |
|
|
TOTAL EARNINGS |
37477.000 |
31614.000 |
31233.000 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
5337.000 |
4864.000 |
5538.000 |
|
|
|
Capital Equipments |
2773.000 |
1107.000 |
1355.000 |
|
|
TOTAL IMPORTS |
8110.000 |
5971.000 |
6893.000 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
52.82 |
50.15 |
33.32 |
|
QUARTERLY RESULTS
(Rs.
In Millions)
|
PARTICULARS |
30.06.2011 |
|
Net Sales |
16969.600 |
|
Total Expenditure |
10852.000 |
|
PBIDT (Excl OI) |
6117.600 |
|
Other Income |
555.400 |
|
Operating Profit |
6673.000 |
|
Interest |
152.400 |
|
Exceptional Items |
0.000 |
|
PBDT |
6520.600 |
|
Depreciation |
689.300 |
|
Profit Before Tax |
5831.300 |
|
Tax |
1290.800 |
|
Provisions and contingencies |
0.000 |
|
Profit After Tax |
4540.500 |
|
Extraordinary Items |
0.000 |
|
Prior Period Expenses |
0.000 |
|
Other Adjustments |
0.000 |
|
Net Profit |
4540.500 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
16.47
|
17.91
|
13.05
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
20.16
|
24.65
|
18.24
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
16.88
|
21.95
|
14.42
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.17
|
0.18
|
0.14
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.54
|
0.38
|
0.35
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.67
|
2.15
|
3.25
|
LOCAL AGENCY FURTHER INFORMATION
MANAGEMENT DISCUSSION AND ANALYSIS
OVERVIEW
Incorporated in
1984, Dr. Reddy’s Laboratories (‘Dr. Reddy’s’ or ‘the Company’) is a global pharmaceutical
company with footprints over 25 countries. The Company’s purpose is to provide
affordable and innovative medicines for healthier lives, which we do through:
·
Pharmaceutical Services and Active Ingredients
(PSAI), comprising Active Pharmaceutical Ingredients (API) and Custom
Pharmaceuticals Services (CPS).
·
Global Generics (GG) businesses, which includes
branded and unbranded prescription and over-the-counter (OTC) pharmaceutical
products.
·
Proprietary Products (PP), comprising of
biosimilars, differentiated formulations and New Chemical Entities (NCEs).
In
2011, Dr. Reddy’s became the only Indian pharmaceutical company to celebrate
the 10th anniversary of listing at the New York Stock Exchange.
The
Company enjoys some key strengths which are listed below:
·
Industry leading chemistry skills and
development processes which have resulted in monetizing several niche product
opportunities.
·
A high degree of vertical integration
with most of the APIs being sourced internally to manufacture formulations.
This has not only helped in speed to market but also kept Dr. Reddy’s generic
and formulation products cost competitive. The Company ranks amongst the global
leaders in Drug Master Filings (DMF), with 486 global DMFs as of 31 March 2011.
·
The Company enjoys critical business
mass in key markets such as North America, Russia and India.
·
Creates and leverages value
opportunities through strategic partnerships.
·
Has established a presence in biosimilars
through Reditux™, Dr. Reddy’s brand of rituximab, the world’s first biosimilar
monoclonal antibody, as well as three additional products, Grafeel®, Cresp® and
Peg-Grafeel™.
KEY FINANCIAL HIGHLIGHTS
As per
financial reporting standards prescribed under the International Financial
Reporting Standards (IFRS):
·
The Company’s consolidated revenue for
2010-11 grew by 6% to Rs. 74,693 millions(US$ 1.7 billion). As Chart a shows, Dr. Reddy’s
revenue has been rising at a CAGR of 21% over the last ten years.
·
Profit after tax (PAT) for 2010-11 was
Rs. 11,040 millions versus Rs. 1,068 millions in 2009-10.
FINANCIALS
The financials are
given in two sub-sections:
·
Abridged IFRS accounts for Dr. Reddy’s as a
consolidated entity.
·
Abridged Indian GAAP stand-alone accounts for Dr.
Reddy’s, as statutorily required under India’s Companies Act, 1956.
OUTLOOK
The Company
believes our focus on profitable growth and targeting a leadership position in
Global Generics and PSAI will create significant value in the near term. The
Company is addressing the need for infrastructure and capacity increases to
meet future growth.
In the Global
Generics segment, improving depth through portfolio expansion, consistent
delivery of limited competition products and supply chain excellence should
lead to a leadership position in key markets. In the PSAI segment, the
objective is to be the partner of choice by creating compelling value for
customers through leveraging IP, technology and cost leadership. In the
Proprietary business, the aim is to create a viable business
by calibrating
investments to produce a self sustainable model.
The Company
expects a positive outlook for the next year. The largest increment of growth is
expected to be contributed by the North America generics business. The Company
also expects continued momentum from its key emerging markets.
UNAUDITED STANDALONE FINANCIAL RESULTS
FOR THE QUARTER ENDED 30.06.2011
RS.
IN MILLIONS
|
Particulars |
(Unaudited) Quarter ended 30.06.2011 |
|
|
|
|
1. Sales/ Income from operations (including Excise Duty) |
16850.800 |
|
Less: Excise Duty |
93.700 |
|
Net Sales/ income form operations |
16757.100 |
|
2. License fees and service income |
80.700 |
|
3. Other Operating Income |
131.800 |
|
4. Total Income
(1+2+3) |
16969.600 |
|
|
|
|
5. Total
Expenditure |
11541.300 |
|
a. Increase/ Decrease in stock |
(314.600) |
|
b. Material Consumed |
4780.400 |
|
c. Research and development expenses net |
1191.100 |
|
d. Personel Costs |
2036.300 |
|
e. Selling expenses |
1392.800 |
|
f. Other expenditure |
1766.000 |
|
g. Depreciation and amortisation |
689.300 |
|
h. Provision for decline in the value of long term investments |
0.000 |
|
6. Profit form operation before other income, interest and exceptional
item (4-5) |
5428.300 |
|
7. Other Income |
555.100 |
|
8. Profit before interest and exceptional items (6+7) |
5983.700 |
|
9. Interest |
152.400 |
|
10. Profit before Exceptional items (8-9) |
5831.300 |
|
11. Exceptional items |
-- |
|
12. Profit from ordinary activities before tax (10-11) |
5831.300 |
|
13. Tax expenses |
1290.800 |
|
14. Net profit form ordinary activities after tax (12-13) |
4540.500 |
|
15. Extra-ordinary items |
-- |
|
16. Net Profit for the period / year (14-15) |
4540.500 |
|
17. Paid-up equity share capital (face value Rs. 5/- each) |
847.400 |
|
18. Reserves (excluding revaluation reserve) |
-- |
|
19 Earning per share for the period (in Rs) per Rs. 5/- share |
|
|
|
|
|
a) Before
Extra-ordinary items |
|
|
- Basic |
26.82 |
|
- Diluted |
26.65 |
|
b) After
Extra-ordinary items |
|
|
- Basic |
26.82 |
|
- Diluted |
26.65 |
|
|
|
|
20. Public Shareholding |
|
|
- Number of Shares |
93828201 |
|
- Percentage of Shareholding |
55.36% |
|
|
|
|
21. Promoters
and promoter group Shareholding |
|
|
a) Pledged/ Encumbered |
|
|
i) No. of Shares |
2100000 |
|
ii) % of shareholding (as a % of the total Shareholding
of Promoter and Promoter group) |
4.84% |
|
iii) Percentage of shareholding (as a % of
the total share capital of the company) |
1.24% |
|
|
|
|
b) Non encumbered |
|
|
i) No. of Shares |
41317812 |
|
ii) Percentage of shareholding (as a %
of the total shareholding of promoter
and promoter group) |
95.16% |
|
iii) Percentage of shareholding (as a % of the total share capital of the
company) |
24.38% |
UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER ENDED
30.06.2011
Rs. In Millions
|
Particulars |
(Unaudited) Quarter ended 30.06.2011 |
|
|
|
|
Segment wise revenue, results and capital employed: |
|
|
1. Segment revenue : |
|
|
a) Pharmaceutical
Services and Active Ingredients |
5290.000 |
|
b)
Global Generics |
12683.300 |
|
c)
Proprietary Products |
3.600 |
|
Total |
17976.900 |
|
Less: Inter segment revenue |
929.300 |
|
Add
: Other unallocable Income |
477.400 |
|
Total income |
17525.000 |
|
|
|
|
2. Segment results : |
|
|
Profit / (loss) before tax and interest from
each segment |
|
|
a)
Pharmaceutical Services and Active Ingredients |
353.100 |
|
b)
Global Generics |
5958.900 |
|
c) Proprietary
Products |
(279.700) |
|
Total |
6032.300 |
|
Less: (i) Interest |
152.400 |
|
(ii) Other un-allocable expenditure |
48.600 |
|
Total profit before tax |
5831.300 |
|
|
|
|
3. Capital Employed: |
|
|
a) Pharmaceutical
Services and Active Ingredients |
18195.400 |
|
b)
Global Generics |
31188.200 |
|
c)
Proprietary Products |
86.600 |
|
d)
Unallocated |
15402.700 |
|
Total |
64872.900 |
Notes:
1. Pursuant to clause 41 of the Listing Agreement, the investor
complaints received, disposed off and lying unresolved for the quarter ended
30.06.2011 are given in the table below:
|
Nature of
Complaints |
Opening balance |
Received |
Disposal |
Closing Balance |
|
Non receipt of
shares and dividend |
1 |
Nil |
1 |
Nil |
2. The un-audited
results have been reviewed by the Audit Committee of the Board and approved by
the Board of Directors of the Company at their meeting held on 20 July 2011.
3. On 20 June
2011, the Company announced a scheme whereby employees, based on an eligibility
criteria, could opt and apply for voluntary retirement (i.e., a termination
benefit). As per the scheme, employees whose applications are accepted by the
Company will be paid the termination benefit in accordance with the methodology
prescribed in the scheme. The termination benefit is however restricted to a
maximum of Rs. 0.800 million per employee. As at 30 June 2011, the Company has
estimated and provided a sum of Rs. 135.800 millions towards the liability.
FIXED ASSETS:
§
Land –
Freehold
§
Building
§
Plant
and Machinery
§
Electrical
Equipment
§
Laboratory
Equipment
§
Furniture
and fixture
§
Office
Equipment
§
Vehicles
WEBSITE DETAILS:
PROFILE
Subject
is an integrated pharmaceutical company focused on providing medicines through
its three business segments: Global Generics segment, Pharmaceutical Services
and Active Ingredients (PSAI) segment and Proprietary Products segment. Its
Global Generics segment includes branded and unbranded prescription and
over-the-counter (OTC) drug products business. Its Pharmaceutical Services and
Active Ingredients (PSAI) segment consists of its active pharmaceutical
ingredients (API) business and its custom pharmaceutical services business.
Effective July 1, 2009, the Company’s drug discovery operations at Hyderabad,
India were absorbed into Aurigene Discovery Technologies Limited (Aurigene),
one of the Company’s wholly owned subsidiary. The Company also closed its discovery
research facility in Atlanta, Georgia in the United States of America. For the
nine months ended 30 September 2010, subject revenues increased 2% to RS55.12B.
Net income totaled RS7.7B vs. a loss of RS597.1M. Revenues reflect an increase
in income from Global generics, higher income from Proprietary products and an
increase in other income. Net income also reflects a decrease in consumption of
raw materials and the absence of impairment loss on intangible assets
MANAGEMENT
K. ANJI REDDY - EXECUTIVE CHAIRMAN OF THE BOARD
Dr. K. Anji Reddy
is the founder and Executive Chairman of the Board of Dr. Reddy’s Laboratories
Limited. He is the Founder-Chairman of Dr. Reddy’s. He served in the
state-owned Indian Drugs and Pharmaceuticals Limited from 1969 to 1975; he was
Founder-Managing Director of Uniloids Limited from
1976 to 1980 and Standard Organics Limited from 1980 to 1984, before founding
Dr. Reddy’s in 1984. Under Dr. Reddy’s leadership, the Company became a pioneer
in the Indian Pharmaceutical industry. It turned the Indian bulk drug industry
from import-dependent in the mid-80s to selfreliant in the mid-90s and,
finally, into the exportoriented industry that it is today. Dr. Reddy’s was the
first company to initiate drug discovery research in India in 1993 and has led
the industry in turning from ‘immitators’ into innovators. Dr. Reddy is a
recipient of the ‘Padma Shri’ and the ‘Padma Bhushan’, two of India’s
prestigious civilian honours. Dr. Reddy holds a Bachelor of Science degree in
Pharmaceuticals and Fine Chemicals from Bombay University and a Ph.D. in
Chemical Engineering from National Chemical Laboratory, Pune.
Education
BS
Pharmaceuticals, University of Mumbai
G. V. PRASAD – EXECUTIVE VICE CHAIRMAN OF THE
BOARD, CHIEF EXECUTIVE OFFICER
Mr. G. V. Prasad
is Executive Vice Chairman of the Board, Chief Executive Officer of Dr. Reddy’s
Laboratories Limited. He joined the Board in 1986 and leads the core team that
drives the growth and performance of Dr. Reddy’s. He has been Vice-Chairman and
CEO of Dr. Reddy’s since 2001, when Cheminor Drugs Limited,
the company of which he was then Managing Director, merged with Dr. Reddy’s.
Prasad has played a key role in the evolution of Dr. Reddy’s from a mid-sized
pharmaceutical company into a globally respected pharmaceutical. He is widely
credited as the architect of Dr. Reddy’s global generics strategy. He is
dedicated to building the innovation side of the business and drives the
Sustainability agenda at Dr. Reddy’s. He holds a degree in Chemical Engineering
from the Illinois Institute of Technology, Chicago, USA and a Masters in
Industrial Administration from Purdue University, USA.
RAVI BHOOTHALINGAM - NON-EXECUTIVE INDEPENDENT
DIRECTOR
Mr. Ravi
Bhoothalingam is Non-Executive Independent Director of Dr. Reddy’s Laboratories
Limited, since 2000. He joined the Company’s Board in 2000. Mr. Bhoothalingam
has served as the President of The Oberoi Group of Hotels and was responsible
for the operations of the Group worldwide. He has also served as Head of Personnel
at British American Tobacco (BAT) Plc, Managing Director of VST Industries
Limited and as a Director of ITC Limited. He is also a Director of Sona Koyo
Steering Systems Limited. Mr. Bhoothalingam holds a Bachelor of Science degree
in Physics from St. Stephens College, Delhi and Master’s degree in Experimental
Psychology from Gonville and Caius College, Cambridge University.
Education
PHD Microbiology,
University of London
BS Botany,
University of Nottingham
ASHOK SEKHAR GANGULY - NON-EXECUTIVE INDEPENDENT
DIRECTOR
Dr. Ashok Sekhar
Ganguly has been appointed as Non-Executive Independent Director of Dr Reddys
Laboratories Ltd with effect from October 23, 2009. Dr. Ganguly was appointed
as Director on the Board of the Company in 2009. He is currently the Chairman
of ABP Private Limited (Ananda Bazar Patrika Group) and was a Director on the
Central Board of Reserve Bank of India, from 2001 to 2009. He is a member of
the Prime Minister’s Council on Trade and Industry as well as the Investment
Commission and the India-USA CEO Council, set up by the Prime Minister of India
and the President of the US. He is also a member of the National Knowledge
Commission to the Prime Minister of India. He was the Chairman of Hindustan
Lever Limited from 1980 to 1990, and member of the Unilever Board from 1990 to
1997 with responsibility for world-wide research and technology. He also serves
as a non-Executive Director of Mahindra and Mahindra and Wipro Limited. He is a
recipient of the ‘Padma Bhushan’ as well as ‘Padma Vibhushan, two of India’s
prestigious civilian honours. At present, he serves as a member of the Rajya
Sabha, the upper house of the Parliament of India.
Education
PHD , University
of Illinois
MS , University of
Illinois
BS Chemistry,
University of Mumbai
OMKAR GOSWAMI – NON-EXECUTIVE INDEPENDENT DIRECTOR
Dr. Omkar Goswami,
Ph.D. is Non-Executive Independent Director of Dr. Reddy’s Laboratories
Limited., since 2000. He joined the Company’s Board in 2000. Since April 2004,
he has been the Founder and Chairman of CERG Advisory Private Limited, a
consulting and advisory firm. He taught and researched Economics for 18 years
at Oxford University, Delhi School of Economics, Harvard University, Tufts
University, Jawaharlal Nehru University, Rutgers University and the Indian
Statistical Institute, New Delhi. In March 1997, he moved away from formal
academics to become the Editor of Business India, one of India’s prestigious
business magazines. From August 1998 up to March 2004, Dr. Goswami served as
the Chief Economist of the Confederation of Indian Industry the premier apex
industry organization of India. He is also an Independent Director on the
Boards of: Infosys Technologies Limited, Crompton Greaves Limited, IDFC Limited,
Ambuja Cements Limited, Cairn India Limited, DSP Black Rock Investment Managers
Private Limited, Godrej Consumer Products Limited, Max New York Life Insurance
Company Limited, Max India Limited, and Avantha Power and Infrastructure
Limited. A professional economist, Dr. Goswami did his Masters in Economics
from the Delhi School of Economics and his D.Phil. (Ph.D.) from Oxford
University.
Education
DS Biochemistry,
University of Orleans Chemistry, University of Orleans
KALPANA MORPARIA – DIRECTOR
Ms. Kalpana
Morparia is Non-Executive Independent Director of Dr. Reddy’s Laboratories
Limited, since June 5, 2007. Ms. Morparia joined the Company’s Board in 2007.
She is the Chief Executive Officer of J P Morgan, India, where she leads their
Business Groups (investment banking, asset management, treasury services and
principal investment management) and Service Groups (global research, finance,
technology and operations). She is also a member of J P Morgan’s global
strategy team headquartered in New York and the J P Morgan Asia Pacific
Executive Committee. Prior to becoming CEO of J P Morgan India, Ms. Morparia
served as Vice Chair on the Boards of ICICI Group. She joined the ICICI Group
in 1975 and was the Joint Managing Director of ICICI Group from 2001 to 2007.
She was named one of `The 50 Most Powerful Women’ in `International Business’
by Fortune magazine in 2008; one of the 25 most powerful women in Indian
business by Business Today, a Indian business journal, in 2004, 2005, 2006 and
2008; and one of ‘The 100 most Powerful Women’ by Forbes magazine in 2006. She
also serves on the Boards of: Bennett, Coleman and Company Limited and CMC
Limited. She is also a member of the Governing Board of Bharti Foundation. A
graduate in law from Bombay University, Ms. Morparia has served on several
committees constituted by the Government of India.
Education
Law, University of
Mumbai
ANUPAM P. PURI - NON-EXECUTIVE INDEPENDENT DIRECTOR
Mr. Anupam P. Puri
is Non-Executive Independent Director of Dr. Reddy’s Laboratories Limited,
since 2002. He joined the Company’s Board in 2002. From 1970 to 2000, Mr.
Anupam Puri was with McKinsey and Company, a management consultancy firm. He
worked globally with corporate clients in several industries on strategy and
organizational issues, and also served several governments and multilateral
institutions on public policy. Mr. Anupam Puri spearheaded the development of
McKinsey’s India practice, oversaw the Asian and Latin American offices, and
was an elected member of the Board. He is currently a management consultant. He
is also on the Boards of: Mahindra and Mahindra Limited, Tech Mahindra Limited,
Mumbai Mantra Media Limited and Dr. Reddy’s Laboratories Inc., USA. Mr. Anupam
Puri holds a M. Phil. in Economics from Nuffield College, Oxford University,
UK, an MA in Economics from Balliol College, Oxford University, and a BA in
Economics from Delhi University, India.
SATISH REDDY - CHIEF OPERATING OFFICER, MANAGING
DIRECTOR, EXECUTIVE DIRECTOR
Mr. Satish Reddy is
Chief Operating Officer, Managing Director, Executive Director of Dr. Reddy’s
Laboratories Limited. He joined Dr. Reddy’s in 1993 as Executive Director. He
played an instrumental role in the company’s transition from a bulk drugs
manufacturer to a global player in the branded generics space by spearheading
the Company’s entry into emerging markets. Satish steers Dr. Reddy’s
Pharmaceutical Services and Active Ingredients (PSAI) and Global Generics
businesses, two of the company’s core revenue generating streams. In 1997, he
was appointed Managing Director.He graduated in Chemical Engineering from
Osmania University, Hyderabad, and holds a Masters in Medicinal Chemistry from
Purdue University, USA.
Education
MS Medicinal
Chemistry, Purdue University
B Chemical
Engineering, Osmania University
SAUMEN CHAKRABORTY - PRESIDENT AND GLOBAL HEAD -
QUALITY, HR AND IT
Mr. Saumen
Chakraborty is President and Global Head - Quality, HR and IT of Dr. Reddy’s
Laboratories Limited. In this role, he is responsible for Company's Quality,
Information Technology, Business Process Excellence, Human Resources, Corporate
Communications and Supply Chain Effectiveness functions. Prior to this role, he
was head of the Global Generics Operations along with Integrated Product Development
across the organization. Mr. Chakraborty joined the Company in 2001 as Global
Chief of Human Resources. He later took over as Chief Financial Officer in 2006
and then became Company's President — Corporate and Global Generics Operations
in early 2009. He has 26 years of experience in strategic and operational
aspects of management. Prior to joining the Company, he held various line
manager, human resources and other positions, including Senior Manager (Finance
and Accounts) in Eicher, and Vice President (Operations) in Tecumseh. A member
of various industry forums, including the Confederation of Indian Industry and
the National HRD Network, he graduated with honors as the valedictorian of his
class from Visva-Bharati University in Physics, and went on to pursue
management from the Indian Institute of Management, Ahmedabad. He continues to
be responsible for Information Technology and Business Process Excellence.
Education
MBA , Indian
Institute of Management
Physics,
Visva-Bharati University
ABHIJIT MUKHERJEE - PRESIDENT - GLOBAL GENERICS
Mr. Abhijit
Mukherjee is President - Global Generics of Dr. Reddy’s Laboratories Limited.
Before joining the company, he worked with Atul Limited for 10 years, where he
held numerous positions of increasing responsibility. In his last assignment
there he was President, Bulk Chemicals and Intermediates Business, and Managing
Director, Atul Products Limited. He started his career as a management trainee
in Hindustan Lever Limited (“HLL”) and worked at that company for 13 years,
including three years in a Unilever company. He was primarily involved in
technical assignments in the aroma chemicals business in HLL and Unilever and
also in detergents and sulphonation plants of HLL. He holds a degree in
Chemical Engineering from the Indian Institute of Technology in Kharagpur,
India.
Education
B Chemical
Engineering, Indian Institute of Technology, Kharagpur
UMANG VOHRA - CHIEF FINANCIAL OFFICER
Mr. Umang Vohra is
Chief Financial Officer of Dr. Reddy’s Laboratories Limited. He has over 14
years of experience across various functions within finance, strategic planning
and corporate development. He is responsible for managing Company's
organization’s global finance functions including among others Accounts and
Controlling, Taxation, Compliance, Secretarial, Investor Relations and
Treasury. He joined the Company in 2002, initially working as Deputy Chief
Financial Officer, and has been part of several of Company's key initiatives
like acquisitions, research and development, de-risking transactions, and
operational improvements and migration to IFRS in Company's accounting,
governance and finance processes. Prior to joining the Company, Mr. Vohra
worked with Eicher and PepsiCo India. Mr. Vohra has a base degree in computer
engineering and he holds an MBA with a specialization in Finance from TA Pai
Institute of Management (TAPMI), India.
RAGHAV CHARI - SENIOR VICE PRESIDENT - PROPRIETARY
PRODUCTS
Dr. Raghav Chari is
Senior Vice President - Proprietary Products of Dr Reddys Laboratories Limited. He heads Proprietary Products segment and
is responsible for developing a viable portfolio of products across Company's
New Chemical Entities and Differentiated Formulations businesses. Dr. Chari
joined the Company in 2006 as Vice President- Corporate Development for
Company's New Chemical Entities and Specialty business and has helped shape
Company's Proprietary Products business strategy while developing alliance
platforms. He started his career with McKinsey and Company, where he spent
several years as an Associate, Engagement Manager and finally Associate
Principal in McKinsey’s Pharmaceuticals and Medical Products practice. After
McKinsey, he took leadership roles in strategy and business development with
several smaller biotech companies. Prior to joining the Company, he was the
head of the Corporate Strategy function at NPS Pharmaceuticals. Dr. Chari is a
graduate in Mathematics and Physics from the California Institute of Technology
and holds a Ph. D in Theoretical Physics from Princeton University.
Education
PHD Theoretical
Physics, Princeton University
Mathematics and
Physics, California Institute of Technology PHD Theoretical Physics, Princeton
University
Mathematics and Physics, California Institute of Technology
K. B. SANKARA RAO - EXECUTIVE VICE PRESIDENT -
INTEGRATED PRODUCT DEVELOPMENT
Mr. K. B. Sankara
Rao is Executive Vice President - Integrated Product Development Business of
Dr. Reddy’s Laboratories Limited. Mr. Rao was appointed to this position in
February 2004. He is responsible for directing Company's strategies for new
product development in the areas of generics, branded generics, specialty, NCE
formulations and active pharmaceutical ingredients. Mr. Rao began his career
with the Company in 1986. Since then, he has held a series of leadership roles
in manufacturing, research and development, quality, projects and supply-chain
management, in addition to revitalizing Company's new product development function
using the Six-Sigma process. Mr. Rao was also instrumental in the design and
implementation of the “Self-Managed Team” — a concept arguably unique in the
pharmaceutical industry. He is a life-member of the Indian Pharmaceutical
Association, the Controlled Release Society and the Indian Pharmacy Graduates
Association. He is also a member of the Confederation of Indian Industry
(“CII”) Southern Region Quality and Productivity Sub-committee, as well as the
CII Sohrabji Godrej Green Business Centre, Hyderabad, Environment and Recycling
Council. Mr. Rao holds a Masters degree in Pharmacy from Andhra University.
Education
M Pharmacy, Andhra
University
VILAS M. DHOLYE
-EXECUTIVE VICE PRESIDENT - FORMULATIONS MANUFACTURING
Mr. Vilas M.
Dholye is Executive Vice President - Formulations Manufacturing of Dr. Reddy’s
Laboratories Limited. He has over 35 years of experience in operations and
projects management. Mr. Dholye joined organization in 2000 and was responsible
for all aspects of Company's API manufacturing operations. He has over the last
few years been responsible for implementing business process excellence and
enterprise resource planning projects. Prior to joining the Company, Mr. Dholye
worked with Pidilite Industries, Gharda Chemicals, Humphrey and Glasgow (Now
Jacob Engineering) and Asian Paints, among other companies. Mr. Vilas holds a
Chemical Engineering degree from the University Institute of Chemical
Technology, Mumbai.
Education
Chemical
Engineering, University of Mumbai
AMIT PATEL - SENIOR VICE PRESIDENT - NORTH AMERICA
GENERICS
Mr. Amit Patel is
Senior Vice President - North America Generics of Dr. Reddy’s Laboratories
Limited. He is responsible for executing company’s strategic efforts in the
North American generics market. Prior to joining us in 2003, Amit was
co-founder and Chief Executive Officer of a healthcare services startup called
Med On Time that was later acquired by CTIS Inc., at which he served as Vice
President of Corporate Development. Earlier, he was a strategy consultant with
Marakon Associates where he focused on value-based management and mergers and
acquisition. He received a Bachelor of Science degree in Economics from the
Wharton School of Business at the University of Pennsylvania, a Bachelor of
Applied Science degree in Systems Engineering from the Moore School at the
University of Pennsylvania, and a Master of Business Administration degree from
Harvard Business School.
Education
MBA , Harvard
Business School
B Systems
Engineering, University of Pennsylvania
BS Economics,
Wharton School of Business at the University of Pennsylvania
C. CARTIKEYA REDDY - SENIOR VICE PRESIDENT AND HEAD
– BIOLOGICS
Dr. C. Cartikeya
Reddy is Senior Vice President and Head - Biologics of Dr. Reddy’s Laboratories
Limited., which focuses on the development of biosimilar molecules for the
Indian and global markets. Prior to joining in 2004, Mr. Reddy worked with
Genentech Inc., where he was a Group Leader in the area of Cell Culture Process
Development. Before that, he was with the Biotechnology Division of Bayer
Corporation, where he led teams in the areas of Bioprocess Development and
pilot scale manufacturing. Mr. Reddy holds a Master of Science degree and Ph.D.
in Chemical Engineering from the University of Illinois, Urbana-Champaign, and
was a Visiting Scholar at the Massachusetts Institute of Technology in
Cambridge, Massachusetts, United States of America. He also graduated with a
Bachelor of Technology degree in Chemical Engineering from the Indian Institute
of Technology in Chennai, India.
Education
PHD Chemical
Engineering, University of Illinois at Urbana-Champaign
MS Chemical
Engineering, University of Illinois at Urbana-Champaign
B Chemical
Engineering, Indian Institute of Technology, Chennai
NEWS
PRESS RELEASE:
FUJIFILM Holdings Corp.'s
FUJIFILM Corporation and Dr. Reddy's Laboratories Limited to Establish
Exclusive Joint Venture for Developing, Manufacturing and Promoting Generic
Drugs in Japan
Jul 28, 2011
FUJIFILM
Holdings Corp.'s FUJIFILM Corporation and Dr. Reddy's Laboratories Limited
signed a Memorandum of Understanding (the MoU hereinafter) to enter into an
exclusive partnership in the generic drugs business for the Japanese market and
to establish a joint venture in Japan. A definitive agreement will be signed
during the course of the calendar year. The new joint venture will have 51%
stake owned by Fujifilm and 49% stake owned by Dr. Reddy's. The new company
will develop, manufacture and promote generic drugs utilizing both Fujifilm's
advanced control technologies it has built up through its photo film business
and Dr. Reddy's expertise in cost competitive production technologies for
active pharmaceutical ingredients and formulations. The joint venture intends
to launch its first products in Japan in the next three to four years. The
joint venture also plans to design products that fit the specific requirements
of the Japanese market, aiming to deliver reliable, generic drugs enabling the
growth of generic drug market.
Fujifilm And Dr. Reddy's
Laboratories Limited To Form Japan Generic Drugs Joint Venture-DJ
Jul 27, 2011
Dow
Jones reported that Fujifilm Corp. will partner with Dr. Reddy's Laboratories
Limited to develop generic drugs for the Japanese market, according to The
Nikkei. Under a deal to be announced, the two companies will form a Japan joint
venture that will seek to have generics on the market in 2014. Fujifilm, a unit
of FUJIFILM Holdings Corp,, will own 51% of the venture, with Dr. Reddy's
Laboratories Limited holding the remaining 49%. The drugs will be manufactured
in India and tested for quality in Japan. Further down the road, the partners
will consider developing higher-value-added generics and expanding the
venture's sales beyond Japan.
Dr. Reddy's Laboratories Limited
Acquires Prescription Business of JB Chemicals And Pharmaceuticals In Russia
And Other CIS Markets
Jul 22, 2011
Dr.
Reddy's Laboratories Limited announced that it has entered into an agreement
with JB Chemicals and Pharmaceuticals to acquire their pharmaceutical prescription
portfolio in the Russia and other CIS regions. The agreement involves
acquisition of 20 brands, key ones being Metrogyl and Jocet, for a
consideration of USD34.85 million. Dr. Reddy's has also entered into a supply
agreement with JB Chemicals for the continued manufacturing and supply of these
products associated with the acquired brands.
Dr. Reddy's Laboratories Limited
Announces the USFDA Approval of Fondaparinux Sodium Injection
Jul 13, 2011
Dr.
Reddy's Laboratories Limited and Alchemia Limited, announced that Dr. Reddy's
has received final approval of Dr. Reddy's ANDA for Fondaparinux Sodium
Injection, a bioequivalent generic version of Arixtra, in the US market on July
11, 2011 by the United States Food and Drug Administration (USFDA). The
approval covers 2.5 mg/ 0.5 mL, 5.0 mg/ 0.4 mL, 7.5 mg/ 0.6 mL and 10 mg/ 0.8
mL doses of the drug in prefilled color-coded, single-dose syringes with
automatic needle safety device. Dr. Reddy's will manufacture fondaparinux under
license using a patented process developed by Alchemia.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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 company is a government official
or a family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 44.41 |
|
|
1 |
Rs. 72.69 |
|
Euro |
1 |
Rs. 63.55 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--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 |
|
78 |
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 |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.