MIRA
INFORM REPORT
|
Report Date : |
10.01.2011 |
IDENTIFICATION DETAILS
|
Name : |
AVENTIS PHARMA
LIMITED |
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|
|
Registered Office : |
Aventis House,
54/A, Sir Mathuradas Vasanji Road, Andheri (East), Mumbai- 400093, |
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Country : |
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Financials (as on) : |
31.12.2009 |
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Date of Incorporation : |
02.05.1956 |
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Com. Reg. No.: |
11-009794 |
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CIN No.: [Company
Identification No.] |
L24239MH1956PLC009794 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMH00271F |
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PAN No.: [Permanent
Account No.] |
AAACH2736F |
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Legal Form : |
It is a public limited
liability company. The company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturing and
Marketing of Allopathic Pharmaceutical Preparations such as Cardiovascular,
Antibiotics, Anti-Diabetic, Vaccines, Diuretic, Analgesic and Anti-Histamine
Segments. |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (75) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
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Maximum Credit Limit : |
USD 37000000 |
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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 now subsidiary of Aventis Pharma Holding Gmbh, The company can be considered normal for business dealings at 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
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office : |
Aventis House,
54/A, Sir Mathuradas Vasanji Road, Andheri (East), Mumbai- 400 093, |
|
Tel. No.: |
91-22-22830607/
22831189/ 22844562/ 28216622 (Ext. 811)/ 28242260/ 28278000 |
|
Fax No.: |
91-22-22829532/
22046188/ 22850435/ 28242261/ 28370939/ 28278110 |
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E-Mail : |
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Website : |
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Factory 1 : |
3501-15, 6310,
B-14, GIDC Estate, Ankleshwar – 393 002, |
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Factory 2 : |
GIDC, Plot No.
L-121, Phase III, Verna Industrial Estate, Verna, Goa – 403 722, |
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Regional
Offices : |
Located at : ·
Mumbai ·
·
Chennai ·
Kolkata ·
·
|
DIRECTORS
As On : 31.12.2009
|
Name : |
Dr. Vijay Mallya |
|
Designation : |
Chairman |
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|
Name : |
Mr. J M Gandhi |
|
Designation : |
Director |
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Name : |
Mr. S R Gupte |
|
Designation : |
Director |
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|
Name : |
Mr. A K R
Nedungadi |
|
Designation : |
Director |
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|
Name : |
Dr. Shailesh Ayyangar |
|
Designation : |
Managing Director |
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|
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|
Name : |
Mr. O .Charmeil |
|
Designation : |
Director |
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|
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|
Name : |
Mr. M.
Dargentolle |
|
Designation : |
Director
(Alternate to Mr. O/ Charmeil) |
KEY EXECUTIVES
|
Name : |
Mr. K Subramani |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(As on 30.09.2010)
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
|
|
|
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
(1) Indian |
|
|
|
(2) Foreign |
|
|
|
Bodies Corporate |
13909587 |
60.40 |
|
Total Shareholding
of Promoter and Promoter Group |
13909587 |
60.40 |
|
|
|
|
|
(B) Public Shareholding |
|
|
|
(1) Institutions |
|
|
|
Mutual Funds/ Axis |
3363601 |
14.60 |
|
Financial Institutions / Banks |
1395 |
0.01 |
|
Insurance Companies |
871674 |
3.78 |
|
Foreign Institutional Investors |
2099619 |
9.12 |
|
Sub Total |
6336289 |
27.51 |
|
|
|
|
|
(2)
Non-Institutions |
|
|
|
Bodies Corporate |
1274096 |
5.53 |
|
|
|
|
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Individuals |
|
|
|
Individual shareholders holding nominal share capital up to Rs. 0.100
Million |
1219287 |
5.29 |
|
Individual shareholders holding nominal share capital excess of Rs. 0.100 Million |
72490 |
0.31 |
|
|
|
|
|
Any Others
(Specify) |
218879 |
0.95 |
|
Trusts |
390 |
0.00 |
|
Clearing Members |
11444 |
0.05 |
|
Non Resident Indians |
207039 |
0.90 |
|
Sub Total |
2784746 |
12.09 |
|
Total Public
Shareholding (B) |
9121035 |
39.60 |
|
|
|
|
|
Total |
23030622 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and
Marketing of Allopathic Pharmaceutical Preparations such as Cardiovascular,
Antibiotics, Anti-Diabetic, Vaccines, Diuretic, Analgesic and Anti-Histamine
Segments. |
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Products : |
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PRODUCTION STATUS (AS ON 31.12.2009)
|
Particulars |
Unit |
Installed Capacity |
Actual Production |
|
I. Basic Drugs: |
|
|
|
|
Pharmaceuticals |
Tonnes |
253.00 |
173.92 |
|
|
|
|
|
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II.
Formulations: |
|
|
|
|
Liquid Injectibles |
KL |
- |
386.39 |
|
Tables and dragees |
Mio Nos. |
7600.00* |
5998.43 |
|
Capsules |
Mio Nos. |
- |
215.49 |
|
Oinments |
Tonnes |
- |
727.62 |
|
Granules |
Tonnes |
- |
1.26 |
|
Drops, syrup and other liquids |
KL |
- |
544.99 |
Note :
Production figures include goods manufactured
at third party facilities
* Includes installed capacity of granules.
#
Represents produced only at third
party locations.
GENERAL INFORMATION
|
No. of Employees : |
2106 |
|
|
|
|
Bankers : |
v
Bank
of v
BNP
Paribas, Mumbai v
Citibank
N A, Mumbai v
Deutsche
Bank, Mumbai v
Hongkong
and Shanghai Banking Corporation Limited, Mumbai v
State
Bank of v
HDFC Bank Limited |
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|
|
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Banking
Relations : |
- |
|
|
|
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Auditors : |
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Name : |
S. R. Batliboi and Company Chartered
Accountants Solicitors: Crawford Bayley and Company Chartered Accountant |
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Holding Company: |
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Ultimate Holding Company : |
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Fellow Subsidiaries : |
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Joint Venture : |
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CAPITAL STRUCTURE
(As on 31.12.2009)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
23,500,000 |
Equity shares |
Rs.10.00/- each |
Rs.235.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
23,030,622 |
Equity shares |
Rs.10.00/- each |
Rs.230.306 millions |
|
|
|
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|
Note:
Of the above:
a)
18,376,831 ( 2008 :
18376831) Equity Share were issued as fully paid bonus shares by capitalization
of reserve and security premium
b)
11538342 (2008 :
11538342) Equity Shares are held by Hoechst Gmbh,
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.12.2009 |
31.12.2008 |
31.12.2007 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
230.306 |
230.306 |
230.306 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
9087.632 |
8060.741 |
6838.225 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
9317.938 |
8291.047 |
7068.531 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
0.000 |
0.000 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
9317.938 |
8291.047 |
7068.531 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1448.909 |
1428.246 |
1356.667 |
|
|
Capital work-in-progress |
271.444 |
62.532 |
93.198 |
|
|
|
|
|
|
|
|
INVESTMENT |
51.866 |
51.866 |
53.088 |
|
|
DEFERREX TAX ASSETS |
145.720 |
153.169 |
126.166 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2311.387
|
1725.536
|
1807.985
|
|
|
Sundry Debtors |
527.351
|
895.022
|
575.052
|
|
|
Cash & Bank Balances |
5859.521
|
4973.724
|
3906.161
|
|
|
Other Current Assets |
0.000
|
0.000
|
77.918
|
|
|
Loans & Advances |
1437.171
|
1363.214
|
1159.332
|
|
Total
Current Assets |
10135.430
|
8957.496
|
7526.448
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
1273.974
|
1133.118
|
1133.506
|
|
|
Sundry Creditors |
307.740
|
251.251
|
0.000
|
|
|
Provisions |
1153.717
|
977.891
|
953.530
|
|
Total
Current Liabilities |
2735.431
|
2362.262
|
2087.036
|
|
|
Net Current Assets |
7399.999
|
6595.234
|
5439.412
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
9317.938 |
8291.047 |
7068.531 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.12.2009 |
31.12.2008 |
31.12.2007 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
9744.057 |
9832.731 |
8735.403 |
|
|
|
Other Income |
1111.272 |
925.629 |
739.468 |
|
|
|
TOTAL |
10855.329 |
10758.360 |
9474.871 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials |
4819.609 |
4762.567 |
4225.203 |
|
|
|
Personnel Expenses |
1439.521 |
1192.045 |
1037.205 |
|
|
|
Operating and other Expenses |
2007.420 |
2022.743 |
1797.589 |
|
|
|
TOTAL |
8266.550 |
7977.355 |
7059.997 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
2588.779 |
2781.005 |
2414.874 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
0.743 |
3.405 |
1.924 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2588.036 |
2777.600 |
2412.95 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
173.441 |
182.142 |
184.539 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
2414.595 |
2595.458 |
2228.411 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
840.449 |
933.463 |
784.165 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1574.146 |
1661.995 |
1444.246 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
6105.542 |
5040.867 |
4177.741 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
157.420 |
166.200 |
150.000 |
|
|
|
Dividend |
80.609 |
80.609 |
80.611 |
|
|
|
Tax on Dividend |
78.282 |
62.626 |
62.626 |
|
|
|
Proposed final Dividend |
380.005 |
287.885 |
287.883 |
|
|
BALANCE CARRIED
TO THE B/S |
6983.372 |
6105.542 |
5040.867 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
2770.000 |
NA |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
68.35 |
72.16 |
|
|
QUARTERLY RESULTS
|
PARTICULARS |
March 2010 1st
Quarter |
June 2010 2nd
Quarter |
September 2010 3rd
Quater |
|
|
Unauditied
|
Unauditied
|
Unauditied
|
|
Net Sales |
2683.000 |
2905.000 |
2936.000 |
|
Total Expenditure |
2150.000 |
2280.000 |
2331.000 |
|
PBIDT (Excl OI) |
533.000 |
625.000 |
605.000 |
|
Other Income |
57.000 |
63.000 |
133.000 |
|
Operating Profit |
590.000 |
688.000 |
738.000 |
|
Interest |
0.000 |
0.000 |
0.000 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
590.000 |
688.000 |
738.000 |
|
Depreciation |
43.000 |
47.000 |
53.000 |
|
Profit Before Tax |
547.000 |
641.000 |
685.000 |
|
Tax |
186.000 |
217.000 |
212.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
361.000 |
424.000 |
473.000 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
361.000 |
424.000 |
473.000 |
KEY RATIOS
|
PARTICULARS |
|
31.12.2009 |
31.12.2008 |
31.12.2007 |
|
PAT / Total Income |
(%) |
14.50
|
15.44
|
15.24 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
24.78
|
26.40
|
25.51 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
20.58
|
24.37
|
25.09 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.26
|
0.31
|
0.32 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.29
|
0.28
|
0.29 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.70
|
3.79
|
3.61 |
LOCAL AGENCY FURTHER INFORMATION
Unaudited financial results for the Quarter and Nine months ended
September 30, 2010
(Rs. in millions)
|
Sr. No. |
Particulars |
Quarter Ended 30.09.2010 (Unaudited) |
Nine Months Ended 30.09.2010 (Unaudited) |
|
1. (a) |
Net Sales |
2756.000 |
7985.000 |
|
b. |
Other
Operating Income |
180.000 |
539.000 |
|
|
Total |
2936.000 |
8524.000 |
|
2 |
Expenditure |
|
|
|
i |
(Increase)/decrease
in stock in trade and work-in Progress |
(238.000) |
(68.000) |
|
ii |
Consumption
of raw materials |
943.000 |
2588.000 |
|
iii |
Purchase of
Traded Goods |
618.000 |
1432.000 |
|
iv |
Employee Cost |
394.000 |
1178.000 |
|
v |
Depreciation |
53.000 |
143.000 |
|
vi |
Other
Expenditure |
614.000 |
1631.000 |
|
vii |
Total
Expenditure |
2384.000 |
6904.000 |
|
3 |
Profit from Operations
before Other Income and Interest |
552.000 |
1620.000 |
|
4 |
Other Income |
133.000 |
253.000 |
|
5 |
Profit Before
Interest |
685.000 |
1873.000 |
|
6 |
Interest |
0.000 |
0.000 |
|
7 |
Profit before
Tax |
685.000 |
1873.000 |
|
8 |
Tax Expenses |
212.000 |
615.000 |
|
9 |
Net Profit for the period |
473.000 |
1258.000 |
|
10 |
Paid- up Equity Share Capital (Face value of the share – Rs. 10) |
230.000 |
230.000 |
|
11 |
Reserves excluding revaluation reserves (as per
last audited balance sheet) |
---- |
---- |
|
12 |
Basic and diluted Earnings per share for the
period, for the year to date (not annualized) and for the previous year – Rs. |
20.57 |
54.70 |
|
13 |
Public shareholding |
|
|
|
a) |
Number of Shares |
9121035 |
9121035 |
|
b) |
Percentage of
Shareholding |
39.60% |
39.60% |
|
14. |
Promoters and promoter group shareholding |
|
|
|
|
Non - encumbered Number of Shares Percentage of Shares (as a % of the total shareholding of promoter and promoter group) Percentage of Shares (as a % of the total share capital of the company) |
13909587 100.00% 60.40% |
13909587 100.00% 60.40% |
NOTES :
- The above results were approved by the Board
of Directors of the Company at its Meeting held on October 25, 2010.
- In accordance with Clause 41 of the
Listing Agreement with the Stock Exchanges, the Company's Statutory
Auditors have conducted a 'Limited Review' of the Financial Results
for the nine months ended September 30, 2010.
- The Board of Directors had declared an
Interim Dividend of Rs. 4 per Equity share of Rs 10 for the year
ending December 31, 2010. The dividend (including Dividend Distribution
Tax) amounted to Rs.107 million. The said dividend was paid on
August 9 ,2010 through National Electronic Clearing
Service /Dividend Warrants.
4. The break up of Net Sales is as follows:
Rs.
in Millions
|
|
Quarter ended |
Quarter ended |
Growth % |
Nine Months ended Sept 30, 2010 |
Nine Months ended Sept 30, 2009 |
Growth % |
|
Domestic Sales-Others |
2320.000 |
2025.000 |
14.6% |
6469.000 |
5534.000 |
16.9% |
|
Domestic Sales-Rabipur |
0.000 |
0.000 |
-- |
0.000 |
92.000 |
-100.0% |
|
Export Sales |
436.000 |
560.000 |
-22.1% |
1516.000 |
1734.000 |
-13.2% |
|
Total Sales |
2756.000 |
2585.000 |
6.6% |
7985.000 |
7373.000 |
8.3% |
Excluding the impact of discontinuation of Rabipur distribution, comparable sales
growth for the nine months ended September 30, 2010 is 9.7%.
5. Throughout 2010, the Company will incur
planned expenditure in two critical projects-slated to be growth drivers
:
1. a) “Prayas”- a project to deliver high
quality low cost healthcare to the rural population ;and
2. b) Entering the Over The Counter
(OTC) market
- The Company
has a single business segment namely ‘Pharmaceutical Business’.
7. Information on investor complaints is
furnished below:
|
Pending as on |
Received during the quarter |
Disposed of during the quarter |
Pending as on |
|
Nil |
2 |
2 |
Nil |
|
|
|
|
|
- The figures
for the previous periods have been re-grouped, wherever
necessary.
MANAGEMENT DISCUSSION
AND ANALYSIS:
PHARMACEUTICAL
MARKET:
Total
pharmaceutical market in
Key drivers
have been new introductions (7.68%) and volumes (8.64%). Prices contributed
only 0.68% to the growth.
The
Company has a market share of 1.63% in the Pharma market.
Five
brands of the Company, Cardace®, Combiflam®, Amaryl®, Lantus® and Allegra®
feature in the top 100 brands of the Indian pharmaceutical market. Cardace®
is the 23rd largest brand and Combiflam® is the 28th
largest brand.
SALES AND
PROFITABILITY:
During the year ended 31st December 2009, the Company had net sales of
Rs.9744.000 millions as against Rs.9833.000 millions during the previous year.
This represents a decline of 0.9%.
The
decline was due to the discontinuance of distribution of the anti rabies
vaccine, Rabipur from 19th February 2009. Excluding the impact of Rabipur distribution,
comparable sales growth for the year under review was 11.5%.
Profit before Tax increased by 6.97% from Rs.2596.000 millions to Rs.
2415.000 millions. Excluding Rabipur, the growth would have been 7.9%.
MAJOR BRAND
PERFORMANCE REVIEW
Cardace®
touched the coveted Rs.1000.000 millions mark in sales in the
fifteenth year of its launch. It is only the second brand in chronic therapy to
achieve this distinction in the Indian pharmaceutical market.
It
continues to be the No.1 cardiovascular brand. It had a growth of 13.3% over
the previous year.
Lantus®
had a sales growth of 38.6%. It has a market share of 8.7%. It
has become the third largest insulin brand in the last quarter of 2009.
Amaryl®
celebrated 10 years of its launch in
Apidra®,
in its first full year of launch, has achieved a market share of
2% in the rapid acting insulin analogue segment.
Cetapin®
group grew at 64%. Within three years of its launch it has
become the No. 4 metformin brand and has a 6% market share.
Clexane®
grew at 3.4%. It continues to rank No.1 in the injectable
anti-coagulant market with a market share of 31.4% in the retail and hospital
market. It continues to face challenge from low priced generics.
Targocid®
registered a growth of 19%. It ranks No.1 in its defined market
and has a market share of 46.5% in the retail and hospital market.
Allegra®
group registered a growth of 18.4%. It has a market share of
7.8%. Allegra® is ranked No.1 in the oral market and solids market. Allegra®
Suspension is ranked No. 3 in the liquid anti-histaminic market.
The
Company received the prestigious OPPI Marketing Excellence Award for Allegra®.
With this, the Company has received the highest number of marketing excellence
awards in the Pharma industry.
Combiflam®
celebrated 25 years of its launch by recording a turnover of
nearly Rs.100 crores, a growth of 19.5%. Combiflam® group has a market
share of 4.6%. It ranks second in the NSAID combinations market.
Combiflam®
Cream, a line extension, was launched in the first quarter of
2009 and has surpassed expectations. It has generated a market share of 1.5% in
the heavily crowded topical anti-rheumatics market.
Soframycin®
recorded a marginal sales decline of 1.3%. A mailer campaign was
undertaken to revive the prescription base.
Avil®
recorded a growth of 6%. It continues to have volume leadership
in the anti histaminic market and enjoys a market share of 6.2%.
Daonil®
group recorded a growth of 2.9%.
Cosavil®
Flu which was launched in the rest of
Festal®,
Hostacyline® and Novalgin® registered growth rates between 13.8%
and 15%.
Baralgan®
D which was launched in 2008 in U.P. was launched in the rest of
the country in 2009.
Baralgan®
group (Baralgan® M, Baralgan® D and Baralgan® DM)
recorded a growth of 70%.
Sofradex®
recorded a marginal decline in sales of 2%.
Frisium®
recorded a growth of 22%. It is the No.1 anti-epileptic drug
(AED) in the uncontrolled epilepsy segment and the fourth ranked brand in the
AED market.
Taxotere®
had a growth of 4.5%. As part of your Company’s access programme
to make life saving drugs available to patients, the unit sales price of Taxotere®
was significantly reduced. The resultant unit sales increased more than 2.5
times and it was gratifying to observe that significantly more number of
patients were put on Taxotere®.
MANUFACTURING
OPERATIONS
The
Ankleshwar plant achieved a record production of 4 billion tablets.
New
products were manufactured and launched in the domestic Tier II markets.
Supplies
of Panadeine, Metformin granules and Glibenclamide granules commenced from the
The shelf
life of Cardace® H range has been increased from 2 years to 3 years
after successful stability studies and regulatory approvals.
Expansion
of the warehouse in Ankleshwar has commenced.
The
dispensing capacity at Ankleshwar for Combiflam® Tablets was enhanced
resulting in considerable savings.
The
upgradation of the laboratory at Ankleshwar was completed and it was made
operational.
A
new purified water generation system has been installed in the laboratory in
A plant for generation of electricity in Ankleshwar has
been set up.
JOINT VENTURE WITH
NOVARTIS VACCINES And DIAGNOSTICS INC. (formerly called Chiron Corporation)
The
Company stopped distributing Rabipur, anti-rabies vaccine from 19th February
2009 following the award of the Arbitrator holding that the Distribution
Agreement between the Company and Chiron Behring Vaccines Private Limited
(CBVPL) for distribution of the said product was not renewed. CBVPL thereafter
appointed a new distributor.
As
there was nothing in the Joint Venture Agreement with Novartis Vaccines &
Diagnostics Inc. (NVD) or in law to prevent the Company from marketing and
distributing any other anti-rabies vaccine, the Company decided to market and
distribute the anti-rabies vaccine Verorab® of
NVD
filed an Arbitration Petition in the Bombay High Court against the Company
seeking an interim order restraining the Company from distributing Verorab®.
NVD also referred the dispute for arbitration before the International Court of
Arbitration of the International Chamber of Commerce (ICC).
The
Bombay High Court has passed an order restraining the Company from distributing
Verorab® until constitution of the Arbitral Tribunal by the ICC and for a
period of eight weeks thereafter. The Company has, therefore, stopped
distributing Verorab® which is now distributed directly by Sanofi Pasteur India
Private Limited.
The Company continues to hold 49% of the share capital of
CBVPL.
PROSPECTS FOR 2010
The prospects
for 2010 are expected to be reasonable barring the risks of an unfavourable
Drug Price Control Order. Export turnover is likely to stay at current levels.
New
products will be launched in the Tier II market and the Company will continue
to invest in market expansion.
The
Company also plans to launch line extensions of some existing products and also
some new products for sale in the domestic market.
Cepacol
and Cepasat lozenges are planned to be exported to
A
new Engineering store will be set up in Ankleshwar and the dispensing area will
be upgraded.
The Pharma plant in
Fixed Assets:
· Software
· Marketing and technical rights for formulations
· Technical know-how
·
·
· Building and Waterworks
· Plant and Machinery
· Furniture and Fixtures
· Office Equipments
· Computers
· Motor Vehicles
AS PER WEBSITE
PROFILE
Subject is the
second largest pharmaceutical multinational company in
The Aventis product
portfolio in
In each of these
the thrust is on consolidating existing markets, penetrating new markets,
offering high quality support to care providers and keeping patient well being
at the heart of all business efforts.
Subject employs
around 1242 people and believes that attracting, retaining and developing a
world class workforce is critical for long term business success.
The company has six
regional offices at Mumbai,
Though the Company
is not actively involved in RandD of its own in
Values
v
Respect
for People
v
Integrity
v
Sense
of Urgency
v
Networking
v
Creativity
v
Empowerment
v
Courage
v
Strategy
Subject believes
that in markets such as
As
Key Therapeutic
Areas
Breast Cancer
Breast Cancer is a
major disease in
Chemotherapy is fast
emerging as a critical component of therapy in both pre and post surgery
treatment schedules.
Taxotere, a drug in
the taxoid class of chemotherapeutic agents is the foundation of Aventis
oncology franchise and has been available in
Diabetes
The World Health
Organization estimates that of the 150 million people worldwide who have diabetes,
21% (31.5 million) are Indians. This is the largest population of diabetes
patients anywhere in the world. This number is expected to grow to 57.2 million
by the year 2025.
The star in the
Aventis portfolio for diabetes treatment in
Lantus is the first
and only 24-hour basal (long acting) insulin in
Lantus was first
launched in
In the oral
hypoglycemic market Aventis offers Amaryl, which today is the second largest
brand in its category with a market share of 5.7% (IMS data). Amaryl has
dominated this market despite the introduction of many generic competitors.
Amaryl is the preferred choice with doctors because it offers tested efficacy
and safety. Value addition for patient compliance and patient awareness has
helped Amaryl differentiate itself from generics.
Cardiovascular
The World Health
Organization (WHO) estimates that by 2010, 60% of the world's cardiac patients
will be Indians In India, nearly 50% of CVD-related deaths occur below the age
of 70, compared with just 22% in the West. That trend is particularly alarming
because of its potential impact on one of the region's fastest-growing
economies.
Cardace from
Aventis Pharma has been in the market since 1994 and today enjoys a dominant
position being the most-prescribed cardiovascular brand by cardiologists and
diabetologists (CMARC). In 2002 it consolidated its strong equity and grew by
32%. It has consistently maintained its growth profile and has become an
undisputed leader in the ACE inhibitor market (IMS bz ORG) and the number one
brand in terms of sales in the Indian cardiovascular segment (IMS R ORG).
Cardace bagged the
prestigious ’Marketing Excellence’ award for 2001-2002 from the OPPI. In 2003
Cardace maintained its market position and has held on to this in 2004.
Deep Vein
Thrombosis
Aventis is working to
grow the DVT prophylaxis market by increasing awareness of Deep Vein Thrombosis
(DVT) as a major health risk.
This has enabled
Clexane, the most widely used low molecular weight heparin in the world, to put
perform competition. It has maintained its leadership position with around 34%
market share in the category of anti thrombotics in
Clexane is now
recommended for use in Unstable Angina / Non Q Wave Myocardial Infarction by
the
Osteoporosis
Over 61 million
Indians have osteoporosis. Eighty percent of these are women. On a global
basis, Indians have the highest prevalence of osteopenia, which is the weakening
of bones before the osteoporosis stage. Aventis offers a drug and a disease
management program – WISHBONE- to manage this challenge in
The WISHBONE
Program offers patients subsidized diagnostic facilities, insurance against
fractures, free calcium, support from dietitians and counselors and other
services at home. Actonel is the drug at the heart of this program and the only
osteoporosis treatment consistently proven to provide rapid fracture protection
in just one year and sustained fracture protection for at least five years.
Clinical studies in women with postmenopausal osteoporosis have shown that
Actonel reduces moderate and severe vertebral fracture risk by 70% within one
year.
Actonel has also
been shown to reduce the risk of hip fractures by 60% in elderly women with
established postmenopausal osteoporosis
Allergy
Allergic reaction
to a variety of environmental factors both in childhood and through adult life
is a growing concern amongst medical practitioners in
Allegra
outperformed the market in the year 2002, grew at an impressive 15% (ORG - MAT
December growth) against 9% market growth in the segment and has since
maintained its growth path in the face of competition from newer molecules like
mizolastine, ebastine, desloratidine and levocetrizine.
Aventis will
continue to focus on sophisticated marketing techniques to leverage investments
in this area.
Rheumatoid
Arthritis
Arava, in the first
full year of launch, reached more than 4500 patients and achieved a market
share of 34% (IMS) in the Rheumatoid Arthritis segment. Arava has established
itself as the preferred brand among the country’s rheumatologists; Aventis has
succeeded in establishing a three-way bond between the patient, the
rheumatologist and the Company with the help of its Joint Effort program. Under
the Joint Effort program, Aventis provides counseling, patient education,
physical support devices for patients, doctor-patient meets and lab tests and
physiotherapy wherever required.
Industrial
Operations
The success stories
of Industrial Operations continue in the current year. At the end of Q 3, 2004,
just concluded, all the planned financial deliverables have been achieved.
Major contribution
to this success is in the area of implementation of strategic initiatives,
rolled out by subject globally, at their
two State-of-the-Art manufacturing plants (Ankleshwar and
Excellence in
quality continues to be one of their main thrust areas. The Goa Plant has received
the Runners-Up Aventis Board of Management Award successively for the last 2
years (year 2002 and 2003).
The facilities and
the systems in their plants undergo continuous up-gradations to suit the
demands of the future. A recent example is the upgradation of their facilities
at their Ankleshwar Plant.
They have
successfully completed the transfer of Glibenclamide bulk tablets from
The project of
manufacturing Ornidyl and Pentamidine for WHO is also on track. They expect the
pre-approval inspection of their external manufacturing sites by the French and
German Regulatory authorities to take place this year, so that the supplies of
both these products could commence in the coming year.
A motivated team
strives continuously to improve the Cost of goods manufactured.
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.45.37 |
|
|
1 |
Rs.70.03 |
|
Euro |
1 |
Rs.58.93 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
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 |
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 |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
75 |
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.