MIRA
INFORM REPORT
|
Report Date : |
13.07.2011 |
IDENTIFICATION DETAILS
|
Name : |
GRANULES INDIA LIMITED |
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Registered
Office : |
Second Floor, Block III, My Home Hub, Madhapur, Cyberabad,
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
18.03.1991 |
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Com. Reg. No.: |
01-12471 |
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Capital
Investment / Paid-up Capital : |
Rs.217.424 Millions |
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|
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CIN No.: [Company Identification
No.] |
L24110AP1991PLC012471 |
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|
TAN No.: [Tax Deduction &
Collection Account No.] |
HYDG00432F |
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PAN No.: [Permanent Account No.] |
AAACG7369K |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares
are Listed on the Stock Exchanges |
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Line of Business
: |
Manufacturers and Marketers of Bulk Drugs, Granulations
and Tablets. |
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No. of Employees
: |
Approximately 478 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (49) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 8100000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having satisfactory track. Trade relations
are reported as fair. Business is active. Payments are reported to be usually
correct and as per commitments. The company can be considered normal for business dealings at usual
trades 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 |
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Risk Category |
ECGC
Classification |
|
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
|
Registered Office : |
Second Floor, Block III, My Home Hub, Madhapur, Cyberabad,
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|
Tel. No.: |
91-40-66760000 |
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Fax No.: |
91-40-23115145 |
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E-Mail : |
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Website: |
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Corporate Office/ Factory 1: |
8-2-293/A/A/2, Plot # 227, Road No. 2, Banjara Hills, |
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Tel. No.: |
91-40-23747093/ 23748834/ 23740425/ 23744135/ 23742541/
23553266/ 23550884 |
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Fax No.: |
91-40-23745478 / 23547894 |
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E-Mail : |
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Factory 2: |
Plot No. 15A/1,
Phase III, I.D.A. Jeedimetla, Hyderabad – 500 055, Andhra Pradesh, India. |
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Factory 3: |
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Factory 4: |
Plot No. 160/ A and 161/E, Gagilapur Village, Qutubullapur Mandal, R R District – 500043. |
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R and D Centre |
· Gagillapur, Qutullapur Mandal, R.R. District , Andhra Pradesh – 500 043 ·
Plot No. 160/A and 161/E, |
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Correspondence Address: |
2nd Floor, 3rd Block, My Home Hub
Madhapur, |
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Tel No: |
91 – 40 – 66760000 |
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Fax No: |
91 – 40 - 23115145 |
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E mail id: |
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Website: |
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Sales Offices: |
Located At: · Europe ·
·
·
Asia Pacific(ex-India) and ·
|
DIRECTORS
AS ON 31.03.2010
|
Name : |
Mr. C Nageswara Rao |
|
Designation : |
Chairman- Non Executive and Non Independent Director |
|
Date of Birth/Age : |
15.08.1926 |
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Qualification : |
M. S. (Surgery and Urology) |
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Date of Appointment : |
18.03.1991 |
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Name : |
Mr. L S Sarma |
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Designation : |
Non Executive and Independent Director |
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|
Name : |
Mr. A. P. Kurian |
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Designation : |
Non Executive and Independent Director |
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|
Name : |
Mr. C. Parthasarathy |
|
Designation : |
Non Executive and Independent Director |
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Date of Birth/Age : |
07.07.1955 |
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Qualification : |
B. Sc., LLB, FCA, FCS |
|
Date of Appointment : |
27.05.2009 |
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|
Name : |
Mr. Phillip Brian Logan |
|
Designation : |
Non Executive and Non Independent Additional Director |
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Date of Birth/Age : |
01.03.1962 |
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Qualification : |
Diploma in Applied Science |
|
Date of Appointment : |
29.01.2009 |
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|
Name : |
Mr. Arun Rao Akinepally |
|
Designation : |
Non Executive, Independent and Additional Director |
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Name : |
Mr. C Krishna Prasad |
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Designation : |
Managing Director |
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Date of Birth/Age : |
02.10.1954 |
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Qualification : |
B. Sc. |
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Date of Appointment : |
31.08.1994 |
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Name : |
Mr. Harsha Chigurupati |
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Designation : |
Non Independent Executive Director |
KEY EXECUTIVES
|
Name : |
Mr. Sachin Guha |
|
Designation : |
Company Secretary |
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Name : |
Mr. Pranesh Raj Mathur |
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Designation : |
President (API) and Chief Financial Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 31.03.2011)
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
|
|
|
|
(A)
Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
7,040,653 |
35.10 |
|
|
749,127 |
3.73 |
|
|
7,789,780 |
38.84 |
|
|
|
|
|
|
|
|
|
|
115,212 |
0.57 |
|
|
115,212 |
0.57 |
|
Total
shareholding of Promoter and Promoter Group (A) |
7,904,992 |
39.41 |
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|
|
|
|
(B)
Public Shareholding |
|
|
|
|
|
|
|
|
6,356 |
0.03 |
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|
291,514 |
1.45 |
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|
297,870 |
1.49 |
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|
|
|
|
|
|
|
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|
406,861 |
2.03 |
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|
|
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|
2,775,914 |
13.84 |
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|
1,310,132 |
6.53 |
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|
6,788,345 |
33.85 |
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|
339,500 |
1.69 |
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|
6,448,845 |
32.15 |
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11,281,252 |
56.25 |
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Total
Public shareholding (B) |
11,579,122 |
57.73 |
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Total
(A)+(B) |
19,484,114 |
97.14 |
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(C)
Shares held by Custodians and against which Depository Receipts have been
issued |
- |
- |
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|
- |
- |
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|
573,040 |
2.86 |
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|
573,040 |
2.86 |
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|
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Total
(A)+(B)+(C) |
20,057,154 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal share
capital up to Rs.0.100 Million BUSINESS DETAILS
|
Line of Business : |
Manufacturers and marketers of Bulk Drugs, Granulations
and Tablets. |
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Products : |
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Exports : |
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Countries : |
· U.S.A ·
·
·
·
·
·
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PRODUCTION STATUS (AS ON 31.03.2010)
|
Particulars |
Unit |
Installed Capacity |
Actual Production |
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APIs |
Tones |
9751.00 |
10307.58 |
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PFIs |
Tones |
8400.00 |
5800.76 |
|
Tablets |
Nos |
6172.80 |
533.59 |
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GENERAL INFORMATION
|
Suppliers : |
· Durga Industries ·
Siddhartha Canisters Private Limited |
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Customers : |
·
Roussel Corporation, ·
·
· Welding GmbH and Company, Germany · Flavine Espanasa, Spain |
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No. of Employees : |
Approximately 478 |
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Bankers : |
· Andhra Bank, Somajiguda Branch, Hyderabad-500 177, Andhra Pradesh, India · Standard Chartered Grindlays Bank Limited, Hyderabad-500 177, Andhra Pradesh , India · Citibank NA, Hyderabad-500 177, Andhra Pradesh , India · State Bank of Hyderabad, Gun Foundry, Hyderabad – 500 177, Andhra Pradesh, India · ING Vysya Bank · Indulsand Bank ·
Bank of ·
Union Bank of ·
Export-Import Bank of · State Bank of Travancore |
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Facilities : |
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Banking
Relations : |
-- |
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Statutory Auditors : |
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Name : |
Kumar and Giri Chartered Accountants |
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Address : |
D.No. 1-111-126/D, Opposite Aeroview Towers, Begumpet,
Hyderabad – 500 016, India |
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Internal Auditors : |
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Name : |
Dhanujaya and Prabhakar Chartered Accountant |
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Address : |
302, Wings, 8-3-960/6/2, |
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Wholly Owned Subsidiaries : |
· Granules USA, Inc. · GIL Life Sciences Private Limited · Granules Singapore Private Limited |
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Joint Venture: |
· Granules – Biocause Pharmaceutical Company Limited |
CAPITAL STRUCTURE
(AS ON 31.03.2010)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
30000000 |
Equity Shares |
Rs.10/- each |
Rs.300.000 Millions |
|
|
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
20057154 |
Equity Shares |
Rs.10/- each |
Rs.200.571
Millions |
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Add: Forfeited Shares |
Rs.10/- each |
Rs.16.853 Millions |
|
|
|
|
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Total |
|
Rs.217.424 Millions |
NOTE:
(Of the above 24,12,134 equity shares of
Rs.10/- each issued for consideration otherwise than cash, of which 16,67,334
equity shares are issued as per the Scheme of Amalgamation). Consists of 39000
equity shares and 1760783 warrants (Previous year consists of 39000 equity
shares and 160783 warrants)
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
30.06.2008 |
|
|
|
(12 Months) |
(9 Months) |
(12 Months) |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
217.424 |
217.424 |
202.304 |
|
|
2] Share Application Money |
0.000 |
0.000 |
15.120 |
|
|
3] Reserves & Surplus |
1821.094 |
1610.941 |
1589.421 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
2038.518 |
1828.365 |
1806.845 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
899.727 |
1081.633 |
1003.293 |
|
|
2] Unsecured Loans |
107.524 |
107.525 |
107.524 |
|
|
TOTAL BORROWING |
1007.251 |
1189.158 |
1110.817 |
|
|
DEFERRED TAX LIABILITIES |
137.347 |
123.563 |
105.538 |
|
|
|
|
|
|
|
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TOTAL |
3183.116 |
3141.086 |
3023.200 |
|
|
|
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APPLICATION OF FUNDS |
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|
|
|
|
|
|
|
|
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|
FIXED ASSETS [Net Block] |
2195.568 |
2245.049 |
1361.420 |
|
|
Capital work-in-progress |
21.751 |
20.224 |
925.368 |
|
|
|
|
|
|
|
|
INVESTMENT |
226.023 |
216.714 |
216.665 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
515.988
|
371.479
|
291.612 |
|
|
Sundry Debtors |
315.046
|
305.453
|
195.132
|
|
|
Cash & Bank Balances |
94.331
|
74.978
|
59.184
|
|
|
Other Current Assets |
8.372
|
7.485
|
2.095
|
|
|
Loans & Advances |
201.677
|
193.095
|
182.198
|
|
Total
Current Assets |
1135.414
|
952.490
|
730.221 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
332.730
|
252.477
|
195.304
|
|
|
Other Current Liabilities |
48.996
|
26.709
|
|
|
|
Provisions |
29.332
|
33.508
|
37.910
|
|
Total
Current Liabilities |
411.058
|
312.694
|
233.214
|
|
|
Net Current Assets |
724.356
|
639.796
|
497.007
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
15.418 |
19.303 |
22.741 |
|
|
|
|
|
|
|
|
TOTAL |
3183.116 |
3141.086 |
3023.200 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 (12 Months) |
31.03.2009 (9 Months) |
30.06.2008 (12 Months) |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
3861.949 |
2538.736 |
2141.465 |
|
|
|
Other Income |
4.890 |
8.547 |
6.851 |
|
|
|
TOTAL (A) |
3866.839 |
2547.283 |
2148.316 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Material Consumed |
2431.132 |
1557.896 |
1247.807 |
|
|
|
Manufacturing Expenses |
420.534 |
272.759 |
287.063 |
|
|
|
R and D Expenses |
32.912 |
27.844 |
0.000 |
|
|
|
Marketing and Selling Expenses |
276.291 |
156.681 |
263.743 |
|
|
|
Administrative Expenses |
186.824 |
119.453 |
0.000 |
|
|
|
Miscellaneous Expenditure Written off |
6.295 |
2.179 |
4.655 |
|
|
|
Foreign Exchange Fluctuations |
[115.239] |
89.042 |
0.000 |
|
|
|
TOTAL (B) |
3238.749 |
2225.854 |
1803.268 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
628.090 |
321.429 |
375.048 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
163.998 |
145.383 |
119.725 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
464.092 |
176.046 |
225.323 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
158.967 |
97.479 |
97.209 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
305.125 |
78.567 |
128.114 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
65.640 |
27.715 |
36.770 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
239.485 |
50.852 |
91.344 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
412.336 |
392.116 |
NA |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
6.000 |
1.300 |
NA |
|
|
|
Provision for Dividend |
25.071 |
25.071 |
NA |
|
|
|
Provision for Dividend tax |
4.261 |
4.261 |
NA |
|
|
BALANCE CARRIED
TO THE B/S |
616.489 |
412.336 |
NA |
|
|
|
|
|
|
|
|
|
|
Basic and
Diluted Earnings Per Share (Rs.) |
11.94 |
2.54 |
4.56 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
31.03.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
1093.280 |
1002.080 |
1101.770 |
859.640 |
|
Total Expenditure |
986.060 |
887.660 |
959.150 |
688.410 |
|
PBIDT (Excl OI) |
107.220 |
114.420 |
142.620 |
171.230 |
|
Other Income |
1.580 |
20.800 |
1.990 |
(13.440) |
|
Operating Profit |
108.800 |
135.230 |
144.610 |
157.780 |
|
Interest |
31.930 |
27.960 |
26.430 |
27.300 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
76.870 |
107.270 |
118.180 |
130.480 |
|
Depreciation |
43.980 |
38.760 |
40.600 |
35.470 |
|
Profit Before Tax |
32.900 |
68.510 |
77.580 |
94.990 |
|
Tax |
13.700 |
15.320 |
14.920 |
12.860 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
19.200 |
53.190 |
62.660 |
82.130 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
19.200 |
53.190 |
62.660 |
82.130 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
30.06.2008 |
|
|
|
(12 Months) |
(9 Months) |
(12 Months) |
|
PAT / Total Income |
(%) |
6.19 |
1.99 |
4.25
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.90 |
3.09 |
5.98
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
9.16 |
2.46 |
6.13
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.15 |
0.04 |
0.07
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.70 |
0.82 |
0.13
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.76 |
3.05 |
3.13
|
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Incorporated as a private
limited company in 1991, Granules India was converted into a public limited company
in Feb.'93. It commenced its operations in Apr.'91 as a Merchant Exporter of
Bulk Drugs like Paracetamol, Guaifenesin and Chloro Pheniramine Maleate.
The company exports to the
Subject implemented the
ongoing project taken over from TL to manufacture bulk drugs like folic acid,
Salbutamol Sulphate, Brom Pheniramine Maleate and direct compression (DC)
blends of paracetamol, through the process of granulation. The unit, an EOU, is
located at
Company has completed
expansion of Guaifenesin capacity from 100 Mts to 240 Mts per annum. Company
had developing new products like Brom Pheniramine Maleate and Chloro
Pheniramine Maleate, and is in process of developing new bulk drug for the
export market. Company is very much hopeful about company's performance due to
expansion of project will be completed in the current year.
The Company set up a 100%
marketing subsidiary in US to enhance its exposure in the large pharmaceutical
market in the world. The Gagillapur plant commences its commercial production
of Line II(installed capacity 3200 MT) which was commenced its July,2003 and
the remaining 4000 MTPA is expected to go on stream in the first half of
2003-04. The total project cost is Rs.300 millions.
OPERATING RESULTS
The Company achieved a turnover of Rs.3861.949 Millions showing a growth
of 14.1% compared to the previous year. The operating profit during the year
was Rs.1010.300 Millions.
FUNDING
During the year, the Company has not obtained any external funding.
SUBSIDIARY COMPANIES
Granules USA Inc.
Granules USA Inc., a wholly-owned subsidiary company, operates for the
marketing requirements of the Company in the U.S. During 2009-10, the
subsidiary company achieved a turnover of Rs.1048.600 Millions.
The relevant particulars of Granules USA Inc. and the consolidated final
accounts for the period ended March 31, 2010, in accordance with the Accounting
Standard AS-21 on Consolidated Financial Statements, read with Accounting
Standard AS-23 on Accounting for Investment in Associates are appended to this
Report.
GIL Lifesciences
Private Limited
GIL Lifesciences Private Limited, a wholly-owned subsidiary of the
Company has acquired land for setting up a unit for manufacture of APIs. The
feasibility of setting up a project at this land is being examined.
Granules Singapore
Pte Limited
The Company has not commenced any activity from this whollyowned
subsidiary company.
JOINT VENTURE
COMPANY
Granules-Biocause
Pharmaceutical Company Limited
During 2009-10, Granules-Biocause Pharmaceutical Company Limited, the
joint venture company achieved a total turnover of Rs.1383.000 Millions.
MANAGEMENT
DISCUSSION AND ANALYSIS
GLOBAL OVERVIEW:
In 2009, the global pharmaceutical market grew 7.0% to $808.5 billion.
The North American market, witnessed 5.5% growth, which is substantially
stronger than the sluggish 1.4% growth in 2008. The emerging markets which
include Asia, Africa,
Growth in the pharmaceutical market will be affected by several factors
including the continuing geographic shift to the emerging markets, major shifts
in pharmaceutical spending by the public sector and the dominance of generic
drugs.
The “Pharmerging Markets”, which comprises of 17 emerging economies
including
While the pharmerging markets offer great business potential; the
complexities are daunting. Several countries have regulations which favour
local firms while other countries still have weak IP rights. In addition, each
one of these countries have vastly different regulatory requirements.
Understanding the markets in each of these countries will be time consuming,
however if a firm makes the effort, they will be rewarded with a lucrative
market.
One of the biggest healthcare stories in the last year was the passage
of universal health care in the
While the
Finally, generic drugs will continue to become a more popular
alternative in the next several years. Products which generate more than $142
billion are expected to face generic competition in major developed markets
over the next five years according to IMS Health. This will have major
ramifications for the industry since the shift to lower-cost generics will
reduce total drug spending by about $80 - $100 billion worldwide through 2014.
The
PRODUCT SEGMENTS
DEVELOPMENTS
Paracetamol
Paracetamol (also known as acetaminophen) is the world’s most widely
consumed analgesic, accounting for nearly 63% of overall consumption.
Paracetamol is a safe, affordable and efficient product with millions of users
throughout the world. The drug is used to reduce body pains, headaches and
fevers.
Paracetamol is an off-patent product whose market continues to grow two
to three percent by volume annually. The total annual market for paracetamol is
estimated at approximately 105,000 tonnes, the highest consumption being in the
Ibuprofen
Ibuprofen is a popular analgesic primarily used for arthritis relief and
fever reduction. The drug is popular in North America and
Guaifenesin
Guaifenesin is an off-patent product which helps loosen and liquefy
mucus. Respiratory illnesses such as bronchitis and the common cold typically
cause excess or thick mucus. Guaifenesin is the only expectorant approved by
the FDA to treat these ailments. The drug helps loosen mucus and thin bronchial
secretions to rid the bronchial passageways of mucus and make cough more
productive. Guaifenesin is available in both long-acting and short-acting
formulations and as a single ingredient or in combination with other active
ingredients. Long-acting formulations are typically in tablet form and dosed
every 12 hours. Short-acting or immediate release formulations are often in
liquid form and are dosed every four to six hours.
Common products with guaifenesin include Mucinex and Robitussin DAC.
These products were among the first to be granted OTC status by the U.S. FDA.
The guaifenesin market is approximately 3,500 tonnes, with over 60.0% of sales
coming from
Metformin
Metformin (N, N-dimethylbiguanide), a prescription drug, is the first
biguanide oral anti-diabetic agent to be approved by the FDA after phenformin
(phenethylbiguanide) was banned in the
Diabetes is lucrative market; the number of people with diabetes is
expected to grow from 246 million to 380 million by 2025. The market opportunity
has grown from $21.0 billion in 2006 to $24 billion in 2008 and is expected to
grow to $34.5 billion by 2013 as more treatment options are released. The
emerging markets are expected to be a major source of new diabetes cases as
they adapt the western lifestyle;
API DIVISION
OVERVIEW
The Company’s API facilities are located at Bonthapally and Jeedimetla
in Andhra Pradesh and in
Highlights,
2009-10
·
Analyzed and optimized machine run time at all the
facilities which directly led to higher monthly production rates
·
Successfully increased production for several
products at Jeedimetla
·
Installed a new coal-based boiler at Bonthapally to
support an increase in production
·
Successfully completed over 20 regulatory agency
and customer audits during the fiscal year
·
Minimized the number of contract workers in order
to improve quality
Road Ahead
- Install a
dedicated, independent facility for special grades at Bonthapally
- Increase
production at all locations through equipment and process upgrades
- Strict
adherence to quality management systems through robust quality processes
- Continuous
training for production floor personnel
- Continue
proper planning of production schedules with equipment preventive
maintenance
PFI DIVISION
OVERVIEW
The Company’s PFI facilities at Gagillapur and Jeedimetla manufacture
combination PFIs using multiple APIs. These PFIs have received regulatory
approvals from major regulatory agencies such as the U.S. FDA, Australian TGA,
Canadian TPD and German HA.
Highlights,
2008-09
·
Achieved LEVEL 1A certification
·
Increased utilisation by double digit growth rate
at Gagillapur
·
Experienced an upswing in multi-active PFIs
Road Ahead
·
Target conversion of more PFI into finished dosages
in 2010-11
·
Strict adherence to quality management systems
through robust quality processes
·
Continuous training for shop floor personnel
·
Proper planning of production schedules with
equipment preventive maintenance
·
Increase capacity by de-bottlenecking manufacturing
processes.
FORMULATIONS
DIVISION
OVERVIEW
The Company’s facility at Gagillapur has an annual capacity of six
billion tablets, and is designed to produce 12 billion tablets annually. The
state-of-the-art plant has automated processes, robust infrastructure, superior
quality systems and accreditations from the U.S. FDA, E.U. and World Health
Organisation.
Highlights,
2008-09
·
Received U.S. FDA approval for the Metformin 500
mg, 850 mg and 1,000 mg ANDA
·
Signed several material contracts with MNCs
·
Commissioned a low-volume PFI project
·
Increased tablet encapsulation manufacturing
capacity by adding additional lines
·
Completed 13 audits
Road Ahead
·
Targeted procurement of new coating equipment and new
blister packing machine to augment customer requirements
·
Will increase capacity utilisation as the current
formulation contracts start the commercialisation process
·
Will have low-volume PFI project commercialized by
Q3FY11
RAW MATERIALS
MANAGEMENT
OVERVIEW
The Company’s bulk raw material procurement translated into competitive
sourcing. The Company’s 100% exportorientation attracted zero-duty imports from
China, France, Germany, Taiwan, Korea, etc., which were done following
stringent audits.
Highlights,
2009-10
·
Continue to implement just-in-time delivery, which
has reduced raw material inventory
·
Increased coordination between departments to
ensure better planning for raw materials
·
Renegotiated contracts based on quality and
delivery performance
Road Ahead
·
Build stronger vendor relationships in order to get
a cost advantage and increase operational flexibility
·
Assist vendors and help them in improve their
quality standards
·
Hold suppliers more accountable for their social
and environmental impact
RESEARCH AND
DEVELOPMENT
OVERVIEW
The Company’s R&D infrastructure represents an effective edge,
reflected in the introduction of pioneering products and processes around a
superior price-value proposition. The Company consistently invests in new product
development as well as process improvement, leading to enhanced yield and
profitability.
The Company’s R&D infrastructure specializes in the development of
PFI and finished dosage products. The R&D
department offers end-to-end solutions for OTC-monograph, required for
filing ANDAs. The Company is capable of developing and filing ANDAs/Dossiers in
the
Highlights,
2009-10
·
The Company invested Rs. 3.67 cr. in R&D,
focusing on technology development and transfer for OTC products, OTC ANDA
products, rapid release gels and Rx ANDA products
Road Ahead
Target is to file several more ANDAs during the fiscal year Anticipate
approval for previously filed ANDAs.
MARKETING
OVERVIEW
The Company enjoys a wide global presence in diverse, value-added and
relevant segments, catering to the growing partnership needs of pharmaceutical
majors in global environments.
Highlights,
2009-10
·
Increased annualized API sales by 34.1% and
finished dosages by 115.1% year over year
Road Ahead
·
Maintain non-competing relationships with customers
·
Scale volumes from existing customers
·
Increase share in existing markets
·
Enter
OPERATIONAL
EXCELLENCE
OVERVIEW
In order to serve the customers better, Granules adopted a holistic
approach of excellence throughout the manufacturing chain. The Company has a
dedicated team of Certified Lean Six Sigma Black Belts available to enhance the
culture of lean manufacturing.
Highlights,
2009-10
·
After a successful OE initiative, decided to create
a dedicated department
·
Increased the daily production rate for products at
several facilities
·
Identified methods to reduce the cost of
manufacturing
·
Reduced manufacturing variations which led to a
lower number of rejected batches
Road Ahead
·
Will continue to implement lean manufacturing
process including identifying bottlenecks, improving yields and
·
managing inventory
·
Reduce waste by addressing effluent treatment and
reprocessing costs
·
Will explore reducing costs by introducing new
technologies and exploring alternative processes
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2010 (Rs. in Millions) |
|
|
|
|
a) Claims against the company not acknowledgment as debts: Income tax Customs duty |
21.093 |
|
|
|
|
b) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) |
42.656 |
|
|
|
|
c) Letters of credit and Bank Guarantee issued by bank |
181.273 |
|
|
|
|
d) Bills discounted with banks |
789.338 |
UNAUDITED
FINANCIAL RESULTS - STANDALONE FOR THE QUARTER ENDED 30.09.2010
(RS. IN MILLIONS)
|
Particulars |
3 Months ended
31.12.2010 |
Year to date
figures for current half year ended
31.12.2010 |
|
|
Unaudited |
Unaudited |
|
|
|
|
|
Net sales / Income from Operations |
1101.769 |
3008.994 |
|
|
|
|
|
Expenditure |
|
|
|
a) (Increase)/decrease in finished goods |
|
|
|
and work in progress |
90.276 |
58.501 |
|
b) Consumption of Raw Materials |
601.195 |
1819.287 |
|
c) Employee cost |
70.610 |
208.674 |
|
d) Depreciation |
40.603 |
117.839 |
|
e) Manufacturing Expenses |
66.780 |
192.832 |
|
f) Administrative Expenses |
29.704 |
90.972 |
|
g) Selling & Distribution Expenses |
93.485 |
238.436 |
|
h) R & D Expenses |
5.702 |
20.543 |
|
i) Other expenditure |
1.392 |
4.176 |
|
Total |
999.748 |
2751.259 |
|
|
|
|
|
Profit from Operations before Other Income, Interest & Exceptional
Items (1-2) |
102.022 |
257.734 |
|
Other Income |
(0.981) |
(3.029) |
|
|
|
|
|
Profit before Interest and Exceptional Items |
103.002 |
260.763 |
|
Interest and Finance charges |
26.430 |
83.136 |
|
Profit after Interest but before exceptional items |
16.573 |
177.628 |
|
|
|
|
|
Foreign Exchange Fluctuations (gain)/loss |
(1.008) |
0.680 |
|
|
|
|
|
Profit before taxation |
|
|
|
Tax expense |
77.580 |
176.947 |
|
- Current Tax Expense |
8.867 |
21.900 |
|
- Deferred Tax Expense |
6.051 |
20.177 |
|
Net Profit for the period |
62.663 |
134.872 |
|
|
|
|
|
Paid-up share capital |
200.572 |
200.572 |
|
(Face Value of Rs.10/- each) |
|
|
|
|
|
|
|
Reserves excluding Revaluation Reserve |
1955.964 |
1955.964 |
|
Basic Earnings per share (Rs.)* |
3.12 |
6.72 |
|
Diluted Earning per share (Rs) |
3.11 |
6.70 |
|
|
|
|
|
Public
Shareholding |
|
|
|
- No. of shares |
12003275 |
12003275 |
|
- Percentage of shareholding |
61.61% |
61.61% |
|
|
|
|
|
Promoters and
promoter group |
|
|
|
Shareholding |
|
|
|
a)
Pledged/Encumbered |
|
|
|
Number of shares |
1759375 |
1759375 |
|
Percentage of shares to
promoter group |
23.52% |
23.52% |
|
Percentage of shares to
total capital |
8.77% |
8.77% |
|
|
|
|
|
b)
Non-encumbered |
|
|
|
Number of shares |
5721464 |
5721464 |
|
Percentage of shares to
promoter group |
76.48% |
76.48% |
|
Percentage of shares to
total capital |
28.52% |
28.52% |
FIXED ASSETS:
·
Land
·
Buildings
·
Plant and Machinery
·
Computers
·
Office Equipment
·
Furniture and Fixtures
·
Vehicles
·
Technical Knowhow
AS PER WEBSITE:
BOARD OF
DIRECTORS:
Mr. C
Nageswara Rao – Chairman,
Medical Practitioner
He is a leading medical practitioner. He is the Chairman of the
AP Medical Council, he has been a member of the All India Medical Council and
was also on the Board of Hindustan Antibiotics Limited.
Mr. C
Krishna Prasad - Managing
Director
Granules
Mr. N R
Ganti – Director
He is a management consultant with over 30 years of
experience in banking and management. He is an MBA specializing in strategy and
finance. He is a member of the team responsible for the company's long-term
goals and objectives
Mr. L S
Sarma – Director
He is an ex senior banker at IDBI. He has vast experience in
financial matters and has also served on the board of Dena Bank. He is
currently on the boards of other reputed companies
Mr. A P
Kurian – Director
He is an eminent investment banker and is currently the
Chairman of the Association of Mutual Funds of India. He also serves on the
boards of a few well-known companies
Mr. Stephen R Olsen - Nominee Director
He has been Senior Vice President of Sales (America), Global
Marketing and Research and Development of International Specialty Products Inc.
(“ISP”), which is the indirect parent company of ISP Invest co LLC, and certain
of its subsidiaries, including ISP Chemco LLC (“Chemco”), which is the holding
company for ISP’s operating subsidiaries, since January 2006 and has been a
director of Chemco since June 2005. He was previously Senior Vice President
North America Sales and Marketing of ISP and Chemco and some of its
subsidiaries from September 2004 until January 2006.
They are headquartered in
Subject has posted a sales of about Rs.1800.000 millions in 2005-06. Their
strategic goal is to offer a complete vertical integrated solution.
The company is a producer of active pharmaceutical
ingredients (API's) and pharmaceutical formulation intermediates (PFIs) with
complete vertical integration. They support customers with unique value, extensive
product range and a global network of associates. Their expertise in
manufacturing Pharmaceutical Formulation Intermediates (PFIs), which are
Directly Compressible Granules, has helped customers to move to the next level
of outsourcing in the pharmaceutical industry.
The PFI plant is one of the biggest in the world with an annual capacity of
7200MT and a batch size of 6MT. The plant is approved by USFDA, German Health
Authority, Canadian TPD and Australian TGA. GIL is also coming up with a state
of the art tableting facility which will have a capacity of 12 Billion tablets.
This new tableting facility will be operational by October 2007.
The company makes use of an intelligently integrated production processes in
order to manufacture a broad assortment of products, there by supplying a wide
range of products and service to their customers in a flexible and reliable
manner. Their products can be used in a range of pharmaceutical applications,
and they are constantly developing new products and variants to meet their
customers' specific requirements.
Part of their commitment to the pharmaceutical industry is a high level of
customer service: their product specialists, supported by application
technologists, research scientists and regulatory advisers are able to provide
immediate advice and customer support. By offering unique products and a high
level of customer support, they can offer their customers the competitive
advantage that is vital in the highly competitive pharmaceutical sector.
Their strategy is to adopt a geo-politically neutral stance which reinforces
their role as a supply chain partner to their customers. They constantly
conduct their selves in a manner that helps them to fully achieve their
self-established standards and further enhance the image of GIL.
PROMOTER
The Managing Director, Mr. Krishna Prasad, is the chief promoter of Granules, bringing
with him rich experience of over two decades in setting up and the management
of pharmaceutical (bulk drugs) manufacturing units.
In 1984-85, he set up a small-scale unit for manufacturing of Acetaminophen/
Paracetamol that went on to become one of the largest Indian manufacturers of
Acetaminophen/paracetamol and was an exporter to the
Mr. Prasad had anticipated, way back in late 80's that major global
pharmaceutical companies would outsource their manufacturing activities to
countries like India with inherent cost advantages coupled with regulatory
compliance skills and a vast pool of trained manpower.
Subject was incorporated in 1991 with an objective of becoming a preferred
outsourcing partner for major pharmaceutical companies in the regulated market
and there was no looking back since then.
Mr. Prasad, as the CEO and the Marketing chief at Granules, pioneered and
popularized the concept of Pharmaceutical Formulations Intermediates (PFIs) as
a cost efficient and extremely convenient product for the global formulations
manufacturers. These PFIs are pre-processed blends of single or multiple APIs,
ready to be compressed into tablets or filled into capsules. They represent an
intermediate stage between APIs and formulations and their manufacture is
referred to as granulation.
Subject is a fully integrated pharmaceutical formulations manufacturer.
Offering one-stop solutions to pharmaceutical companies. From the manufacture
of several strategic APIs to multiple PFIs to finished dosages of tablets and
capsules. Facilitating global pharmaceutical companies to offer affordable
medicines to their consumers
At the company, it is not just important to be profitable for the moment, but to be on a sustainable basis. This sustainability is no longer an economic requirement, but an environmental one as well.
In view of this, the company has embarked on a number of environment-management initiatives like the following:
The implementation of 'Environmental Best Practices' at the company's Gagillapur plant (recognized by CII).
Delegation of eco-friendly Delegation of eco-friendly measures to employee levels.
The use of sophisticated equipment to collect the dust generated during process activities and material transfer.
Conversion of the entire plant into a non-smoking area.
MILE STONES
· 1991 - Trading of APIs.
· 1994 - Production of various APIs.
· 1995 - Venture into the manufacture of DC Paracetemol (PFI)
·
1996 - Targeting of OTC market in the
· 1998 - Expansion of PFI capacity.
·
2000 - Obtaining
· 2001 - Development of new PFIs such as Guaifenesin, Metformin and Ibuprofen etc.
· 2002 - Filing of new DMFs of the above PFIs and moving up of value chain in OTC products.
· 2003 - Setting up of the world's single largest PFI facility with a capacity of 7,200 TPA.
· 2004 - The only company in the world to manufacture combination PFIs on a commercial scale using different basic APIs with other excipients.
· 2004 - Addition of a Tableting facility with a capacity of one billion pieces per annum
· 2005 - Started construction of the Tableting facility with a capacity of 12 billion tablets.
· 2006 - Major expansion of Paracetamol facility, from a capacity of 3600 MT to 12000MT per annum.
·
2006 - Joint Venture with
· 2007 - Finished dosage facility at Gagilapur.
· 2008 - Oracle ERP under implementation.
ACTIVITIES
The company's robust environment management comprises the following:
· Wastewater analyses on effluent samples.
· A frequent test and monitor of the ground water, soil, ambient air, stacks and noise levels.
· Over the years, the company expects to strengthen its environment standards: a common effluent treatment plant will be reinforced by a cleaner technology to minimize liquid effluent, gaseous emission and solid waste.
Liquid effluents
They are separated into high TDS-high COD effluents and low TDS-low COD effluents High TDS-high COD effluents are collected separately at generation plants. Following primary treatment, they are evaporated; the residue is sent to the Hyderabad Waste Management Project for safe disposal.
Low COD effluents are collected in a common sump. Following homogenisation and pH adjustments, they are discarded to the CETP for onward treatment and disposal.
Hazardous solid waste
management :
Hazardous solids from various production stages and effluent collection tanks are sent to the Hyderabad Waste Management Project for safe disposal.
Gaseous emissions
Gaseous emissions are scrubbed, cleaned and made harmless with suitable chemical reagents before they are released.
Green belt
development
The planting of a green belt around the plant has helped neutralise pollution. They plan to construct a green building comprising natural light, natural cooling through roof garden on the terrace, use of environment-friendly fly ash cement and solar energy
PRESS RELEASE
Granules India’s Net Profit excluding
exceptional items increases 21%; Dividend to be increased by 20%
Hyderabad, April 29, 2011
Granules India
Limited, a vertically integrated formulation manufacturer, announced financial
results for its fiscal year 2011 ended March 31, 2011 Granules consolidated net
profit, excluding exceptional items, increased 21% to Rs.200.000 Millions. Due
to strong performance from its operations, Granules has raised its dividend to
15% of equity share capital.
Granules posted
consolidated revenue of Rs.4760.000 Millions Growth was driven by the finished
dosage division, which contributed Rs.1010.000 Millions, an increase of 170%
During the fiscal year, the finished dosage division was bolstered by the
approval of 2 ANDAs which enabled Granules to participate in the lucrative U.S.
finished dosage market. Granules will increase its finished dosage capacity in
order to meet demand for existing contracts that will ramp up in the current
fiscal year.
Granules expects its
PAT margin to rise due to increased finished dosage sales and higher
utilization rates which will lower overheads.
Fiscal Year ended
March 31, 2011
Net Sales. Rs.4760.000 Millions as compared to the prior fiscal year at
Rs.4610.000 Millions.
Standalone Net Sales. Rs.4060.000 Millions, as compared to the prior
fiscal yea, at Rs.3860.000 Millions
EBITDA: Rs.600.000 Millions, as compared to the prior fiscal year at
Rs.650.000 Millions.
Standalone EBITDA: Rs.560.000 Millions, as compared to the prior fiscal
year at Rs.540.000 Millions.
Net Profit: Rs.210.000 Millions, as compared to the prior fiscal year at
Rs.300.000 Millions (Prior Fiscal Year had a one-time foreign exchange gain of
Rs.110.000 Millions)
Standalone Net Profit: Rs.220.000 Millions as compared to the Prior
fiscal year at Rs.240.000 Millions (Prior Fiscal Year had a one-time foreign
exchange gain of Rs.110.000 Millions)
EPS’ Basic EPS was Rs.1042, as compared to the prior fiscal year at
Rs.15.14
Standalone EPS. Basic EPS was Rs.10.83 as compared to the prior fiscal
year at Rs.11.94.
ABOUT GRANULES INDIA LIMITED
(SE: 532482, NSE: GRANULES)
Granules India Limited is a vertically
integrated formulation manufacturer. The Company is a large-scale manufacturer
of Finished Dosages (FDs), Pharmaceutical Formulation Intermediates (PFIs) and
Active Pharmaceutical Ingredients (APIs), which are distributed in over 50
countries. The Company’s operations and logistics expertise along with its
scale allow Granules to provide customers high quality products across the
pharmaceutical manufacturing value chain at a cost-effective price.
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 records exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.37 |
|
|
1 |
Rs.70.84 |
|
Euro |
1 |
Rs.62.96 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
49 |
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.