MIRA
INFORM REPORT
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Report Date : |
23.04.2011 |
IDENTIFICATION DETAILS
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Name : |
PLETHICO PHARMACEUTICALS LIMITED |
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Registered Office : |
A. B. Road, Manglia, Indore-452003, Madhya Pradesh |
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Country : |
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Financials (as on) : |
31.12.2009 |
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Date of Incorporation : |
04.12.1991 |
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Com. Reg. No.: |
006801 |
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CIN No.: [Company
Identification No.] |
L24232MP1991PLC006801 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BPLP00659B |
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Legal Form : |
Public Limited Liability Company. The Company’s Shares are Listed on
Stock Exchange |
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Line of Business : |
Manufacturer of Ethical Medicine, Medical Disposables, Surgical, Ayurveda and Herbal Formulations. |
RATING & COMMENTS
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MIRA’s Rating : |
A (66) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 27000000 |
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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 a well established and reputed pharmaceutical company
controlled and financed by patel family. Financial position of the company is
good. Trade relations are fair. Business is active. Payments are reported to
be regular and as per commitments. The company can be considered good for normal 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
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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/ Factory : |
A. B. Road, Manglia, Indore-452003, Madhya Pradesh, India |
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Tel. No.: |
91-731-2422881/ 85 |
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Fax No-: |
91-731. 2420938 |
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Website : |
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Area : |
Owned |
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Administrative Office : |
37/37-A, Industrial Estate, Pologround, Indore-452015, |
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Tel. No.: |
91-731-2422881/6/6 |
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Fax No.: |
91-731-2420938/2421309 |
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E-Mail : |
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Corporate Office : |
Shabnam House, Ground Floor, Plot No. A/15, |
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Tel. No.: |
91-22-66988301/ 66988302 |
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Fax No.: |
91-22-66988300/ 66988330 |
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E-Mail : |
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Plethico Exports : |
106, Padma Towers II, 22, |
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Tel. No.: |
91-11-25811701/25810495 |
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Fax No.: |
91-11-25762410 |
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E-Mail : |
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Domestic Division : |
41, Navkethan Industrial Estate, |
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Tel. No.: |
91-22-28217957/58/28235184 |
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Fax No.: |
91-22-28204970/28235185 |
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E-Mail : |
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Factory 1 : |
Village Dharawa, Post Kalaria, Dhar, |
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Factory 2 : |
Shed No. 347/348, A-II Types, Sector IV, Kandla Special Economic Zone,
Gandhidham, Kanchachh-370230, |
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Branch Office : |
1st Floor, Crimpage Corporation, Plot No. 57,
Street No. 1, Marol, Andheri (East), Mumbai – 400 093 |
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Tel. No.: |
56988301 / 02 |
DIRECTORS
As On : 31.03.2010
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Name : |
Mr. Shashikant Patel |
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Designation : |
Chairman cum Managing Director |
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Name : |
Mr. Chirag Patel |
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Designation : |
Whole-time Director and Chief Executive Officer |
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Name : |
Mrs. Gauravi Parikh |
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Designation : |
Executive Director |
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Name : |
Mr. G N Qazi |
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Designation : |
Director |
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Name : |
Mr. Pramod K Shrivastava |
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Designation : |
Director |
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Name : |
Mr. Abhay Suhane |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Amrish Kumar Chourasia |
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Designation : |
Company Secretary |
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Operational Planning and Execution Committee ( OPEC) |
Mr. Rajiv Bedi Mr. Hemant Modi Mr. Sanjay Pai Mr. Sharad Kumar Mr. K.R. Krishnan Mr. Manoj Javkar |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2011
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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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29640000 |
87.01 |
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29640000 |
87.01 |
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Total shareholding of Promoter and Promoter Group (A) |
29640000 |
87.01 |
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(B) Public Shareholding |
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1531815 |
4.50 |
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1529056 |
4.49 |
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3060871 |
8.98 |
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491842 |
1.44 |
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770615 |
2.26 |
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68300 |
0.20 |
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35039 |
0.10 |
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14307 |
0.04 |
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20632 |
0.06 |
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100 |
-- |
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1365796 |
4.01 |
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Total Public shareholding (B) |
4426667 |
12.99 |
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Total (A)+(B) |
34066667 |
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 : |
Manufacturer of Ethical Medicine, Medical Disposables, Surgical, Ayurveda and Herbal Formulations. |
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Products : |
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PRODUCTION STATUS (As On : 31.12.2009)
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Particulars |
Unit |
Installed
Capacity In Millions |
Installed
Capacity In Qty (Nos.)(Production) |
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Tablets / Lozenges |
Qty |
1255.000 |
1042792076 |
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Capsules |
Qty |
255.000 |
81791999 |
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Dry Susp. / Syrup |
Qty |
131.400 |
19433226 |
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Ampoule / Vials |
Qty |
68.000 |
10467409 |
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Ointment / Tube / Drops |
Qty |
1.025 |
947578 |
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Powder / Granules |
Kg |
4.775 |
3896138 |
GENERAL INFORMATION
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Bankers : |
·
Bank of Baroda ·
State Bank of Indore ·
IDBI Bank Limited ·
Exim Bank ·
State Bank of India ·
Bank of India ·
HSBC Limited ·
Indusland Bank ·
Karur Vysya Bank ·
Allahabad Bank |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
N.P. Gabndhi and Company Chartered Accountants |
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Cost Auditors: |
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Name : |
Vijay P Joshi and Company Chartered Accountant ( Cost and Works Accountants) |
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Wholly Owned Subsidiaries : |
·
Plethico Global Holdings BV, Netherlands ·
Plethico International Limited, UAE ·
Plethico US Holdings KFT, Hungary ·
Natrol INC, USA ·
Natrol Global FZ-LLC, UAE |
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Related Parties : |
·
Plazma Laboratories Private Limited ·
Plethico Laboratories Private Limited ·
Plethico Products ·
Wiscon Pharmaceuticals Private Limited |
CAPITAL STRUCTURE
As On : 31.12.2009
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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60000000 |
Equity Shares |
Rs. 10/- each |
Rs. 600.000 millions |
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Issued:
|
No. of Shares |
Type |
Value |
Amount |
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34081767 |
Equity Shares |
Rs. 10/- each |
Rs. 340.820
millions |
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Subscribed & Paid-up Capital
|
No. of Shares |
Type |
Value |
Amount |
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34066667 |
Equity Shares |
Rs. 10/- each |
Rs. 340.670
millions |
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Note
Including 29109060 Previous year 29109060
equity share of Rs. 10/- each allotted as fully paid bouns shares by way of capitalization
of General Reserve and Share Premium.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.12.2009 |
31.12.2008 |
31.12.2007 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
340.670 |
340.670 |
340.670 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
6440.570 |
5755.440 |
5589.890 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
6781.240 |
6096.110 |
5930.560 |
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LOAN FUNDS |
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1] Secured Loans |
1762.750 |
2500.340 |
764.860 |
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2] Unsecured Loans |
4126.310 |
4013.960 |
3060.910 |
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TOTAL BORROWING |
5889.060 |
6514.300 |
3825.770 |
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DEFERRED TAX LIABILITIES |
144.600 |
143.420 |
119.570 |
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TOTAL |
12814.900 |
12753.830 |
9875.900 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1052.850 |
1113.270 |
1110.330 |
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Capital work-in-progress |
302.250 |
193.440 |
23.990 |
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INVESTMENT |
7384.980 |
7185.720 |
4088.720 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
177.470
|
158.600 |
146.720
|
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Sundry Debtors |
3354.950
|
3430.870 |
2659.340
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Cash & Bank Balances |
184.120
|
127.250 |
1511.940
|
|
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Other Current Assets |
0.000
|
0.000 |
0.000
|
|
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Loans & Advances |
690.200
|
878.150 |
569.330
|
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Total
Current Assets |
4406.740
|
4594.870 |
4887.330 |
|
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Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
196.070
|
220.090 |
143.840 |
|
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Other Current Liabilities |
62.340
|
61.390 |
62.840
|
|
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Provisions |
107.460
|
105.150 |
100.140
|
|
Total
Current Liabilities |
365.870
|
386.630 |
306.820 |
|
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Net Current Assets |
4040.870
|
4208.240 |
4580.510
|
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MISCELLANEOUS EXPENSES |
33.950 |
53.160 |
72.350 |
|
|
|
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|
|
|
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TOTAL |
12814.900 |
12753.830 |
9875.900 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.12.2009 |
31.12.2008 |
31.12.2007 |
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SALES |
|
|
|
|
|
|
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Income |
4694.860 |
5405.810 |
5512.430 |
|
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Other Income |
|
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|
|
|
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TOTAL (A) |
4694.860 |
5405.810 |
5512.430 |
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|
|
|
|
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Less |
EXPENSES |
|
|
|
|
|
|
|
Material Cost |
2379.040 |
2862.280 |
3240.450 |
|
|
|
Personal Cost |
258.420 |
257.580 |
241.140 |
|
|
|
Manufacturing and Other Expenses |
796.550 |
725.750 |
440.930 |
|
|
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TOTAL (B) |
3434.010 |
3845.610 |
3922.520 |
|
|
|
|
|
|
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1260.850 |
1560.200 |
1589.910 |
|
|
|
|
|
|
|
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Less |
FINANCIAL
EXPENSES (D) |
288.150 |
167.400 |
73.980 |
|
|
|
|
|
|
|
|
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|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
972.700 |
1392.800 |
1515.930 |
|
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
61.940 |
73.440 |
67.290 |
|
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|
PROFIT BEFORE
TAX (E-F) (G) |
910.760 |
1319.360 |
1448.640 |
|
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|
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|
|
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Less |
TAX (H) |
3.820 |
28.320 |
29.880 |
|
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|
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|
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|
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|
PROFIT AFTER TAX
(G-H) (I) |
906.940 |
1291.040 |
1418.760 |
|
|
|
|
|
|
|
|
|
Less / Add |
Extra Ordinary
Income / (Expenses) |
163.500 |
(682.500) |
164.580 |
|
|
|
|
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
2035.460 |
1776.560 |
533.970 |
|
|
|
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|
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Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
250.000 |
250.000 |
241.110 |
|
|
|
Dividend |
85.170 |
85.170 |
85.170 |
|
|
|
Tax on Dividend |
14.150 |
14.470 |
14.470 |
|
|
BALANCE CARRIED
TO THE B/S |
2756.580 |
2035.460 |
1776.560 |
|
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|
|
|
|
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|
EXPORT VALUE |
3084.890 |
2681.830 |
NA |
|
|
|
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|
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IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
496.130 |
548.480 |
NA |
|
|
|
Capital Goods |
21.290 |
23.810 |
NA |
|
|
TOTAL IMPORTS |
517.420 |
572.290 |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
26.62 |
37.90 |
41.65 |
|
QUARTERLY RESULTS
(Rs.
In Millions)
|
PARTICULARS |
31.03.2010 |
30.06.2010 |
30.09.2010 |
31.12.2010 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
1110.650 |
1131.890 |
974.890 |
1110.840 |
|
Total Expenditure |
856.970 |
859.380 |
677.150 |
913.540 |
|
PBIDT (Excl OI) |
253.680 |
272.510 |
297.74 |
197.300 |
|
Other Income |
0.220 |
3.110 |
(0.150) |
0.830 |
|
Operating Profit |
253.900 |
275.620 |
297.600 |
198.130 |
|
Interest |
67.360 |
65.270 |
83.370 |
77.060 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
186.540 |
210.350 |
214.230 |
121.070 |
|
Depreciation |
20.830 |
24.570 |
22.800 |
25.560 |
|
Profit Before Tax |
165.710 |
185.770 |
191.430 |
95.520 |
|
Tax |
11.240 |
1.820 |
90.520 |
92.680 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
154.470 |
183.960 |
100.910 |
2.830 |
|
Extraordinary Items |
122.280 |
(115.900) |
113.250 |
17.250 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
276.750 |
68.060 |
214.160 |
20.080 |
KEY RATIOS
|
PARTICULARS |
|
31.12.2009 |
31.12.2008 |
31.12.2007 |
|
PAT / Total Income |
(%) |
19.32
|
23.88 |
25.74 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
16.68
|
23.11 |
24.15 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.13
|
0.22 |
0.24 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.94
|
1.15 |
0.72 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
12.04
|
11.88 |
15.93 |
LOCAL AGENCY FURTHER INFORMATION
OVERVIEW
The company's
performance on consolidated basis registered significant growth both in terms
of top and bottom line. During the year, the turnover has grown up by 38% to
Rs.12510 mn. whilst profit before tax has increased by 9% to Rs.1940.02 mn.
Earning per share has grown up to Rs.58.88 per share. On standalone basis,
there was significant dip in the profitability whilst turnover remained almost
at the similar level. This happened because of strategic shifting of some
profitable business during the year to subsidiaries abroad resulting in
remarkable growth in consolidated performance. This year was a landmark year
for the company, adding new dimensions to the business. 2009 has witnessed
newer heights and has left behind many a past record. The company outperformed
globally and registered significant growth amidst extra ordinary challenges of
high volatility in raw material prices and currency exchange rates that hit
company's performance largely.
Their aim through
the year was to provide world-class healthcare services to all the customers
throughout the world while increasing both their customer base and ability to
provide blockbuster products at affordable prices to this growing customer
base. Along the way, they received accolades for our work from within the
country an internationally. They are proud to say that company's Kandla SEZ
Unit has been awarded highest export award for the year 2008-09. Today, company
has transformed business globally to leverage Plethico's financial and
technical skills, open new vistas for the enterprise and the energetic talent
and to create new values worldwide. And during this process, Plethico has
nurtured relationship across the entire range of customers, business partners,
techno-economic consultants, stakeholders, which helps the company to understand
pertinent issues, develop business, enhance shareholders values and manage
risks better. It is the relationship and trust that make the Plethico more
robust, resilient and sustainable
SUBSIDIARY AND
OTHER BUSINESS ALLIANCES
The company has
adopted a completely different path of acquisition and buyouts to carve a
unique niche in highly
growth-ended
regulated and semi regulated markets worldwide. The recent acquisitions enabled
the company to ride on new opportunities that would have taken years to start
from scratch. Such acquisitions have begun yielding benefits in different ways
that go beyond size and scale.
Currently company
has two Wholly Owned Subsidiaries namely Plethico Global Holdings B.V.,
Netherlands (PGH) and Plethico International Limited, UAE (PIL). The PGH is
also having subsidiaries and step-down subsidiaries in many countries, that had
given added advantage of rapid scaling-up, broad-ended customer base and global
footprint. PIL is seating up an ultra modern medicated lozenges and solid doses
formulation unit in UAE which is at advanced stage of implementation.
Apart from
subsidiaries and step-down subsidiaries, the Rezlov Group of Companies in which
company currently hold 45%equity stake, also contributed significantly in the
growth of the organization. Tricon, a Dubai based retail pharmacy chain in
which company holds 20% stake also strengthened Company's clench in
pharmaceutical and nutraceutical markets of the CIS.
The tax-efficient
structure of subsidiaries, step-down subsidiaries and business alliances
created by the company worldwide has given a strong foothold to the company
across the globe.
MANAGEMENT DISCUSSION AND ANALYSIS
OVERVIEW
Plethico Group is
today focusing on Nutraceutical and Herbal Industry. Below is an important
discussion on the Nutraceutical Industry which although a very big market of
USD 170 Billion plus, however, there is not too much detail available in public
domain.
INDUSTRY STRUCTURE
AND DEVELOPMENTS:
NUTRACEUTICALS
MARKET - INTRODUCTION
·
The global nutraceutical consists of two product
segments. 'Dietary Supplement' and 'Functional food' is poised to reach 187.4
Billion USD by 201 0. The factors that drive this market include growing
consumer interest in healthy diet and lifestyle, rising healthcare costs and
aging population.
·
The US represents the largest market worldwide for
nutraceuticals. It is expected that US market would worth approx. 60 billion
dollar by 2010.
·
Europe and Japan are the other large markets.
·
Nutraceuticals includes Foods, dietary supplements
and medical foods. Nutraceuticals are currently classified as food and not
drugs.
·
"Dietary supplements" include Vitamins,
and Minerals which can be herbal or non-herbal in base. Dietary supplements are
intended to supply nutrients such as Minerals, Vitamins, Fatty acids that are
missing / insufficient or not consumed in a regular diet.
·
"Functional foods" contain a food
component whether a nutrient or not which affects one or more targeted
functions in the body in a positive way. Functional foods provided benefits
beyond basic nutrition by way of added components (Foods fortified with
Minerals, Vitamins, Antioxidants, Probiotics, Prebiotics, Herbs, Botanicals,
oils etc) and may prevent disease or promote health.
·
Globally nutraceutical industry is witnessing
varying levels of maturity in different regional markets and serves divergent
consumer groups and educational levels. However, many regional markets share
common growth drivers in various aspects like aging population, growing healthcare
spending and rising interest towards self medication and preventive healthcare.
·
Thus a nutraceutical is a product with a functional
ingredient that provides specific nutritional benefit. Nutraceuticals are
currently classified as foods and not drugs. Therefore any medical claims to
prevent, treat or cure disease cannot be made for nutraceutical products.
However, both the dietary supplements and functional foods are permitted to
make health claims. The distinction between health claims and medical claims
tend to blur with the advent of new and wide-ranging products in this category.
·
One of the option to expand from maturing markets
include entering into international markets, tapping new and Innovative
channels to reach out consumers, and addressing cost efficiency issues.
·
Recent years marked the entry of major food and
pharmaceutical companies into nutraceutical market place, including Kellogg,
Heinz, Quaker, Uniliver, Royal Numico, Dupont, Novartis, Abbott, Amway,
Cargill, Hormet, GlaxoSmithkline, Warner-Lambert, Wyeth and others.
·
Pharmaceutical companies are employing
state-of-the-art technologies to improve therapeutic value of natural
substances derived from herbal and other sources. Nutraceutical market is
becoming increasingly competitive with the entry of pharmaceutical and food
companies into nutraceuticals arena.
·
Quality standards and regulations are becoming more
and more stringent similar to that of pharmaceutical markets.
·
One of the key ingredients to rapidly expand and succeed
in this arena will require the players to develop new competencies by way of
different and better dosage forms for the Nutritional Delivery(NDDS).
NUTRACEUTICALS -
EXECUTIVE SUMMARY:
GLOBAL MARKET OVERVIEW:
Worldwide nutraceuticals market continues to be effected by growing consumers'
desire to lead a healthy life and avoid usage of synthetic drugs. Increasing
scientific evidence supporting health foods coupled with an explosion in sales
of nutraceuticals, resulted in tremendous growth of the market. Major trends
influencing the market include growing competition leading to industry
consolidation, maturing markets in the developed regions, food and
pharmaceutical players flooding the market and volatile conditions in the
herbal supplements market. Dietary supplements market, through out the 1990s,
enjoyed double-digit growth rates in buoyant market conditions led by herbal
supplement products. However growth in the market slowed down influenced by
several factors including altering consumer demands and economic pressures,
together with tightening regulatory requirements and competitive market
conditions. Market growth slowed down for herbal/botanical supplements, but
other dietary supplements, including non-herbals, and sports nutrition and meal
supplements are experiencing strong growth rates. Vitamins and minerals are
projected to generate relatively slow growth in worldwide nutraceutical
applications, resulting from intense pricing competition, overall lack of
proprietary compounds and mature product applications. Vitamins A and E are
expected to perform the best among bulk vitamins due to increasing evidence of
health advantages and expanding end-user preferences for value-added natural
formulations. Among minerals, calcium and potassium are expected to record
fastest sales gains based on demonstrated preventive benefits in geriatric and
women's health care.
Market Drivers:
General forces assisting the
development of nutraceuticals include:
* Significant increase in scientific understanding of the link between
diet and health
* Rising interest in consumer-directed healthcare
* Aging of the world populace
* Technical developments in the food industry
* Growing importance of cost control in healthcare delivery
Imperatives for a Successful
Nutraceuticals Market:
For the nutraceuticals market to
be successful, following are some of the basic requirements:
* More health conscious consumers
* Positive media publicity
* Scientific studies and clinical trials supporting safety and efficacy
claims
* Propagation of information detailing the benefits of consuming
supplements and health foods
Aging Population:
Desire to Stay Younger Aging population is a major segment, which is likely to
be instrumental in fueling future growth for nutraceuticals. Desire to stay
younger for a longer period has been driving the population (over 45 years) to
take active support of antiaging supplements that help them live longer and healthy.
Educational and Promotional Programs: A New Strategy
Increasing number of health conscious consumers, and the health benefits of
nutraceuticals are motivating manufacturers and marketers to educate general
public with the help of public relations and advertising.
Use of Biotechnology:
Biotechnology, in recent times is widely employed in nutraceuticals to make
food better, safer, inexpensive and tastier. The agronomists or food
technologists are researching on various tools to increase the volume of
vitamins and minerals in foods. Increase of vitamins and minerals in foods
would help eliminate certain ailments, and provide several health
benefits.
OUTLOOK:
Global Nutraceuticals market, comprising of two principal segments Dietary
Supplements and Functional Foods, is poised to grow at a compounded annual
growth rate (CAGR) of 6.1% during 2000-2010. Sales of nutraceuticals are
projected to reach US$187.4 billion by 2010 as against an estimated US$155.9
billion for 2007. Factors driving the market include growing consumer interest
in a healthy diet and lifestyle, rising healthcare costs, and aging
population.
US to Remain Dominant:
The
Fastest Growth in Developing
Regions:
Asia Pacific is expected to witness fastest growth in the nutraceuticals market
through 2015, reflecting rising consumer income levels, increasing per capita
consumption of nutritional products and growing investment in both bulk and
end-use product industries. Buoyed by the robust Chinese and Indian
nutraceutical markets, the Asia-Pacific market is expected to record remarkable
gains in nutraceuticals arena, resulting from rising economic prosperity. The
region is forecast to register the fastest growth of about 6.6% over the
analysis period 2000-2010, to garner sales worth US$16.2 billion by 2010 from
an estimated US$13.1 billion for 2007.
The
ABOUT NATROL
BUSINESS:
Description of
Natrol's Business
Natrol US and its
subsidiaries (collectively referred to as "Natrol") manufacture and
market branded, high-quality dietary supplements, herbal teas, and sports
nutrition products under seven primary brands: Natrol®, MRI®, Laci Le Beau®,
NuHair®, ShenMin®, Promensil®, and Prolab®.
Natrol's core
brands market vitamins, minerals, herbal supplements, herbal teas, specialty
combination formulations, andsports nutrition products both domestically as
well as internationally.
Natrol in the US
sells its products through multiple channels of distribution that reach
customers through mass market drug, warehouse/club stores, grocery store
chains, health food stores, fitness centers, internet retailers and independent
catalog companies and Internationally reaches out to more than forty foreign
countries through international distributors including through Plethico
distribution capabilities.
As of December 31,
2009, Natrol had 220 employees with approximately 54 engaged in marketing and
sales, 140
were devoted to
production and distribution and 26were responsible for management and
administration. Natrol's employees are not covered by a collective bargaining
agreement.
Natrol was founded
in 1980 and became a publicly traded company in 1998.On January 2, 2008, Natrol
was acquired by Plethico. Pursuant to the acquisition of Natrol by the Company,
Natrol withdrew its common stock, US$ 0.01 par value from listing on NASDAQ as
of the close of businessonDecember28, 2007.
Currently Natrol
products have more than 54,000 points of distribution. Natrol has acquired the
business of or the
rights
tomanufacturemarket and/or sell the following brands:
Medical Research
Institute, Inc ("MRI") business including NO2®, Black Powder®, CE2®,
Pro-Nos™, H.S.P. Active, War, and Anabolic Switch™ brands;
NuHair® and Shen
Min® (men's and women's hair re-growth products in the natural products
category);
Prolab®
(supplements to help gainandlose weight as well as improve muscle mass and
definition);
Promensil® (red
clover is oflav ones-based products for the relief of menopausal symptoms and
maintenance of Bone and heart health);and
On June 1, 2007,
Natrol acquired all of the outstanding stock ofMRIforUS$8.6 million for cash
and up to an additional US$ 80.0 million in cash based upon the earnings before
interest and tax ("EBIT") of MRI during the three years after the
acquisition date.
The NuHair and
ShenMin brands were acquired from Biotech, Inc., a Connecticut company. The
Promensil and Trinovin brands are owned by Novogen Limited, an Australian-based
biotechnology company. These brands are sold worldwide, and Natrol acquired the
patent and trademark rights to these products, in perpetuity, within the US.
Natrol's products fall into the general definition of vitamins, minerals, herbs
and dietary supplements and are regulated by the U.S. Food and Drug
Administration.
Total sales for
Natrol Business were approximately Rs.5,537 million (US$114 million) for the
year ending December 31, 2009.
Overview of
Brands/Products Natrol
The majority of
Natrol's dietary supplements are sold under the Natrol brand. The Natrol brand
focuses on supplements that are in high demand as well as specialty niche and
proprietary formulations that have potentially strong margins. These supplements
include vitamins, minerals, herbal products and specialty combination formulas
that contribute to an individual's physical and mental well-being. Natrol
product ranges include:
·
Cardio;
·
Diet;
·
Mood;
·
Fruit; and
·
Others
Natrol's brand
strategy emphasizes building strong recognition of the Natrol brand across
multiple distribution channels through a marketing strategy that includes
cooperative promotional programs as well as print, and public relations
campaigns that are designed to build consumer awareness and increase the
purchase of our products by customers.
MRI
Natrol's second
largest brand umbrella is MRI. MRI develops, markets, and distributes sports
nutrition products including NO2®, Black Powder®, CE2®, Pro-Nos ™, HSP Active,
WAR, and Anabolic Switch™. Natrol believes the MRI brand is positioned as a
"premium" brand within the sports nutrition world and its brand
identity is underpinned by a reputation for innovative science. MRI sells its
products mainly through health nutrition outlets such as GNC (General Nutrition
Corporation), Vitamin Shoppe, NBTY, Lifetime Fitness, 24 Hour Fitness, internet
outlets that focus on sports nutrition, and distributors. MRI products include:
·
NO2:BrandofNitric Oxidegenerator products
·
Pro NOS™: Highly refined whey protein and whey
fractions for increased absorption and utilization by the body
·
Black Powder: Pre work out energy boosting formula.
·
HSP Active (Heat Shock Protein): Functional protein
supplements for enhanced training and reducing stress within muscle cells
·
Anabolic Switch: Advanced multi-form Creatine
powder
Prolab
The Prolab sports
nutrition line of products is targeted at body builders and health conscious
individuals seeking a high degree of physical fitness. Prolab's products
include supplements designed to help these individuals gain and lose weight as
well as improve muscle mass and muscle definition. Prolab products are sold
primarily through sports nutrition retail stores, fitness centers, websites,
health-food stores and, internationally, through designated
distributors.
Prolab products
include:
·
Cuts II® range: Supplements promoting fat burning
during training
·
N-Large range: Range of muscle gaining formulas
·
Aminorange: Amino Acid formula to boost nitrogen
balance
·
Other Products
Promensil:
Relieves menopause
symptoms, is an alternative to hormone replacement therapy. Promensil is sold
across multiple channels of distribution
as Natro land Laci Le Beau line of products.
Laci Le Beau
Herbal teas are
sold under the Laci Le Beau brand. Laci Le Beau teas are flavored herbal teas.
NuHair and Shen
Min
The NuHair® brand
of hair product is sold exclusively through the mass market channel of
distribution in the US while the Shen Min brand of hair products is sold
exclusively within the health food channel of trade. These products use herbal
extracts from Chinese medicines. Natrol acquired these brands in 2006.
Natrol Global
Range
Natrol global has
developed its own range of products for the International markets which are catering
to the Personal hygiene, health care, oral care.
Domestically all
brands with the exception of MRI are managed by the same sales staff that
manages the Natrol lines of products.
Natrol also sells
a small amount of nutraceutical raw materials/ingredients such as garlic to
other manufacturers through our EPI division. In addition, the EPI division
markets Natrol's manufacturing capabilities to other nutraceutical businesses
that need contract manufacturing support. EPI shares all of Natrol's resources
including Natrol's headquarters facility, its manufacturing and research and
development personnel and expertise, its financial resources, as well as
accounting and management resources. A majority of Natrol and MRI's
international sales is catered by Natrol Global UAE, which houses the marketing
division, regulatory division and also controls the sales operations globally.
Currently there are 34 professionals engaged for catering to the International
requirements.
Business
Development
A core part of Natrol's
business strategy is to acquire, or develop internally, products, brands and
businesses that are complementary to our existing product line. In 2006, Natrol
acquired the NuHair, ShenMin, Promensil and Trinovin lines, in 2007, the MRI
business and in 2008, Natrol negotiated US distribution rights for Biosil, as
part of this strategy of developing our portfolio of products.
In acquiring or
developing products Natrol seeks to capitalize upon our existing
infrastructure, which includes our
sales distribution
and marketing expertise as well as our general administrative skills.
Milestones
·
Garlic business acquired from Bone Vegetable
Products;
·
1998 Natrol became a publicly traded company on the
NASDAQ, pursuant to a public offering;
·
1998 Laci Le Beau business acquired;
·
1999 Prolab business acquired;
·
2006 Nu Hairand Shen Min brands acquired from
Biotech, Inc.;
·
Promensil brand acquired from Novogen Limited;
·
2007 MRI business acquired;
·
2007 Biosil distribution agreement negotiated; and
·
2008 Natrol acquired by Plethico.
Our Business
Domestic Sales
Branded Products
Natrol distributes
Natrol supplements, Laci Le Beau herbal teas, NuHair and ShenMin hair products
and Promensil primarily to domestic, independent, health food stores and mass-market
club, drug, retail and food stores. MRI distributes its products through health
nutrition outlets such as GNC, internet sites focusing on sports and nutrition
and certain distributors.
Products are sold
to health food stores primarily through leading national distributors,
including United Natural Foods (UNFI),
Nature's Best and Tree of Life who resell Natrol products directly to
independent health food stores. These products are also sold directly to
certain health food store chains such as GNC,
Fred Meyer Nutrition Centers and The Vitamin Shoppe. Their major
drug, club, and mass-market retail and grocery customers include:
·
Safeway
·
Whole Foods
·
Rite Aid
·
BJ's Wholesale Club
·
Kroger
·
Walgreens
·
Ralphs
·
Costco
·
Wal-Mart
·
CVS
·
Duane Reade
·
Sam's Club
·
GNC
·
Vitamin Shoppe
Sales of vitamins
and other supplements within the mass-market channel of trade are extremely
competitive with all vendors competing vigorously to defend their positions
within each mass-market account.
Many mass-market
retailers emphasize their own in-house private label brand, which creates
additional competition. Many retailers have more than one private label brand.
Vendors to the mass-market class of trade continually analyze their own shelf
space as well as that of their competitors in an effort to maximize profits for
themselves and the mass-market retailer. The result is a cycle in which
companies such as ours prune slower moving items from store shelves, replacing
them with faster selling products. Natrol's central strategy is to ensure that
their most profitable and rapidly selling items remain on retailers' shelves
while we try to obtain more shelf space for additional, potentially profitable,
items. Private Label initiatives for most retailers will continue to grow and
Natrol hopes to capture manufacturing through its contract manufacturing
division as it becomes available.
MRI and Prolab
products are sold primarily through sports nutrition retail stores, fitness centers,
web sites, health food stores and internationally through designated
distributors. Key customers include GNC, The Vitamin Shoppes, Body building.
com, and distributors such as Europa and Select Nutrition.
Contract
Manufacturing and Ingredient Supply Sales: EPI
Natrol's contract
manufacturing services are marketed through EPI. Natrol manufactures a number
of products for
customers who
distribute the products under their own private labels. As a contract
manufacturer, Natrol will often
assist their
customers in the formulation of their products.
Contract
manufacturing is not a core part of the Company's business. Their strategy with
respect to the contract manufacturing business is to selectively bid on
profitable contract manufacturing business that can help them more fully
utilize of their manufacturing plant when Private Label business opportunities
arise.
PERFORMANCE
ANALYSIS
A) Plethico
Business:
Plethico business
which is49%ofConsolidatedRevenue is operated from Plethico India and Plethico International
Limited UAE.
The First half
depicted typical sign of recession till May'2009.The second half of the year
was significantly better than 1st half by 60% in terms of Revenue. The first
half generated revenue of Rs. 2330.000 millions and second half generated
revenue of Rs.3730.000 millions for the Plethico Business.
CISSBU
The Business has
shown improvement in the CIS in terms of demand and contribution to revenues
in2ndhalf despite a slowdown in 1st half of the calendar year 2009.Thetotal
sales in the CIS market were approximately Rs. 312 million during the year
ended December 31, 2009, compared to the sales of approximately Rs. 1,271
million in the previous year representing a growth of 3.23%. Out of total sales
during 2009, approx Rs. 370 million was captured in Plethico International UAE.
The Business to
CIS also witnessed sales to Tricon LLC (CIS Retail pharmacy business)* of Rs.
549 million. So Overall, TheCIS business contributed of Rs. 1,861 million which
indicated a growth of 46%.
*Capturedunder
Domestic SBU as the goods were sold locally in India on FOB basis.
Non-CISSBU
The total sales in
Africawere approximately Rs. 1035 million during the year ended December 31,
2009, compared to sales of approximately Rs. 958 million in the previous year,
representing a growth rate of 8.4 percent. Out of total sales during 2009,
approx Rs.419millionwascapturedin Plethico International UAE.
The increase in
sales in South East Asia, Latin America and the GCC countries in the year ended
December 31, 2009 was also particularly noteworthy, with sales of approximately
Rs. 2554 million during the year ended December 31, 2009 compared to sales of
approximately Rs. 2223 million in the previous year, representing a growth rate
of 14.88 percent. Out of total sales during 2009, approx Rs.621 million was
captured in Plethico International UAE.
RMTrading
During the year
2009, Plethico International Limited, UAE was able to generate revenue through
sourcing of Raw materials for Tricon LLC worth of Rs.839million.
DomesticSBU
The Company had
total sales of approximately Rs. 1164 million in India during the year ended
December 31, 2009 as compared to the sales of approximately Rs. 953 million in
the previous year. .Of the total sales in India during the year ended December
31, 2009 contract manufacturing accounted for approximately Rs. 57 million as
compared to sales of approximately Rs. 420 million in the previous year and new
business with Tricon LLC(CIS Retail Pharmacy Business)of Rs.549million.
The Company had
sales of Rs.558 million in CPD division during the year ended December 31, 2009
as compared to the sales of Rs.533million in previous year.
Break down of
Sales of Plethico Business (excluding RM trading)by Geography
(A)SEGMENT-WISEANDSBU-WISEPERFORMANCE
The Consolidated
performance of 2009 can be summarized as under:
(a) 85%ofoverall
sales are contributed by Herbals and nutraceuticals.
(b) 44.5% sales is
contributed by Natrol including Natrol International business, 20.5% by Third
Front (SEA, LAC and GCC), 10.6%byCIS, 8.3%byAfricaand9.4%byIndia and6.8%byPIL
through RM trading.
(c) Indian
operation is largely for Consumer Product division and supply locally in India
to Tricon LLC for Retail Pharmacy operation.
PERFORMANCE
ACHIEVEMENTS
Major Achievements
of 2009
MHRA Approval: The
company's Kalaria (Indore Unit) got approval from the Medicine and Healthcare
products Regulatory Agency of UK (UKMHRA) for Tablet and Capsule manufacturing,
packing and quality control facility for a period of 3 years.
Highest Export
Award: The company's Kandla SEZ Unit got 'Highest Export Award' for the
year2007-08 from the Government of India, Ministry of Commerce and Industry,
Kandla Special Economic Zone, Kandla. The company got this award consecutively
for the 4th year.
Good progress on
UAE manufacturing unit: The UAE Manufacturing Unit is at the final stage of
implementation, which will enable the company to make UAE as the main hub going
forward.
Successful business
integration with Tricon LLC: During 2009, the company successfully integrated
business with Tricon LLC, the retail pharmacy chain in which company acquired
20% stake during 2008. This enabled the company to expandit's retail reach
across CIS particularly in nutraceutical segment and also to improve recovery
in CIS.
A new subsidiary
at UAE: In order to strengthen marketing base of nutraceutical and herbal
products in UAE, CIS, South East Asia and the African countries, a new
subsidiary company has been formed at UAE in the name of Natrol Global FZE,
LLC. The entire equity of this new company is hold by Plethico US Holdings,
KFT, Hungary, which is step down
subsidiary of our company. Natrol Global has started commercial operations
during 2009 and contributed significantly to the to pandbot tom line of the
company.
AUDITED FINANCIAL RESULTS FOR
THE FOURTH QUARTER / YEAR ENDED 31.12.2010
(Rs. in millions)
|
Sr. No. |
Particular |
Unaudited |
Unaudited |
|
|
|
Quarter
ended 31.12.2010 |
Quarter
ended 31.12.2010 |
|
1.20.0 |
Gross
Sales / Income |
|
|
|
|
a. Net Sales / Income from Operations |
1110.843 |
4328.278 |
|
|
b. Other Operating Income |
0.825 |
4.004 |
|
|
Total
Income (a+b) |
1111.668 |
4332.281 |
|
|
|
|
|
|
2. |
Expenditure |
|
|
|
|
a) (Increase) / Decrease in Stock in Trade and Work In
Process |
33.312 |
16.582 |
|
|
b) Consumption of Raw Materials (Net) |
527.020 |
2134.838 |
|
|
c) Purchase of Traded Goods |
23.029 |
42.572 |
|
|
d) Employee Cost |
90.064 |
310.920 |
|
|
e) Depreciation |
25.558 |
93.761 |
|
|
f) Other Expenditure |
240.114 |
802.104 |
|
|
g)
Total Expenditure (a to f) |
939.098 |
3400.796 |
|
|
|
|
|
|
6. |
Interest |
77.056 |
293.054 |
|
|
|
|
|
|
8. |
Exceptional Items |
-- |
-- |
|
|
|
|
|
|
9. |
Profit from Ordinary Activities before Tax |
95.514 |
638.430 |
|
|
|
|
|
|
10. |
Tax Expense |
92.681 |
196.252 |
|
|
|
|
|
|
11. |
Net Profit from Ordinary Activities after Tax (9-10) |
2.833 |
442.179 |
|
|
|
|
|
|
12. |
Extraordinary Item (net of expense) |
-- |
-- |
|
|
|
|
|
|
13. |
Net Profit for the period (11-12) |
20.083 |
579.054 |
|
|
|
|
|
|
14. |
Paid-up Equity Share Capital (Face Value of Rs.10/- Each) |
340.667 |
340.667 |
|
|
|
|
|
|
15. |
Reserves Excluding Revaluation Reserve |
-- |
-- |
|
|
|
|
|
|
16. |
Basic
and Diluted Earning Per Share (EPS) (Rs.)-Not Annualised |
|
|
|
|
a) Basic and diluted EPS before extraordinary items |
0.08 |
12.98 |
|
|
b) Basic and diluted EPS after extraordinary items |
0.07 |
11.02 |
|
|
|
|
|
|
17. |
Public
Shareholding |
|
|
|
|
-Number of Shares |
4426667 |
4426667 |
|
|
- Percentage of Shareholding |
12.99% |
12.99% |
|
|
|
|
|
|
18. |
Promoters
and Promoter Group Shareholding |
|
|
|
|
a)
Pledged/Encumbered |
|
|
|
|
- Number of Shares |
24186865 |
24186865 |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of promoter and promoter group) |
81.60% |
81.60% |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
71.00% |
71.00% |
|
|
|
|
|
|
|
b)
Non Encumbered |
|
|
|
|
- Number of Shares |
5453135 |
5453135 |
|
|
- Percentage of Shares (as a % of the Total Shareholding of
Promoter and Promoter Group) |
18.40% |
18.40% |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
16.01% |
16.01% |
Notes :
1.
The above audited financial results for
the quarter and year ended on 31st December, 2010 were approved at the
meeting of the Board of Directors held on 31st March. 2011. after being
approved and recommended by the Audit Committee.
2.
The consolidated financial results
comprise results of its wholly owned subsidiary Plethico International
Limited and Plethico Global Holdings B. V. Netherlands
having different step-down subsidiaries particularly Plethico
US Holding KFT Hungary. Natrollnc., USA. and Natrol Global UAE., The financial results
of subsidiary companies have been regrouped and I or rearranged wherever
necessary due to Indian GAPP audit conducted.
3.
Extraordinary
items is related to unrealized exchange gain of Rs. 136.875 millions arising on
account of restatement of outstanding Foreign Currency Convertible
Bonds (FCCS) at the rate prevailing at the end of year.
4.
Figures of the previous quarter I
year wherever necessary have been regrouped and reclassified
to confirm to those of the current quarter I Year
5.
Theye were subject to search and
seizure operations by the Department of Income Tax (Investigation).
Bhopal. During t~ course of the search and seizure
operations, certain documents and articles were
seized from different locations and statements of the Company's Chairman.
directors. Promoters, executive officers and employees were recorded. Pursuant
to the ongoing proceedings the final tax liability has not been determined.
Further, they are cooperating with the department to provide information as and
when demanded.
6.
The cost of Packing materials has
been included in other expenditure, whereas Directors' remuneration has been
included in the employees cost.
7.
The Company is engaged in a single
segment viz. Pharmaceuticals which is governed by
the same set of risks and returns, therefore the Accounting Standard (A8-17) on
"segment Reporting issued by ICAI, is not applicable.
8.
The EPS has been computed in
accordance with the accounting standers (A and 20) issued by the ICAI
9.
Provision on account of premium payable
on redemption of FCCS amounting to Rs.268.926 millions for the year ended on
31st December. 2010 has been made out of Share Premium Reserve.
10.
Details of investors complaints for
the quarter ended: Unresolved al the beginning of the
quarter - Nil. Received during the quarter. 2. Disposed
off during the quarter. 2. Unresolved the quarter - Nil
WEB SIDE DETAILS
PROFILE
Plethico Pharmaceuticals Limited is a
leading global healthcare / pharmaceutical company with a strong emphasis on
the herbal and neutraceutical segments. The company which was established in
1991 and focused on manufacturing and marketing a range of branded generic
pharmaceutical formulations, has rapidly evolved and now engages in the
manufacture, marketing and distribution of pharmaceutical and allied healthcare
products in the neutraceutical and herbal segments in India and
internationally. Domestically, Plethico operates in the segments of Sports
Nutrition, Confectionary and OTC, in India. The company’s robust product
portfolio includes renowned, international brands such as:
Herbal healthcare products:
- Travisil – a
range of herbal products in the respiratory tract infection, common cold
and sore throat segment, which continues to be a brand leader in the CIS
countries. Travisil portfolio comprises Travisil Syrup and Lozenges,
Travisil Cold Rub, Travisil Roll-on, Travisil Sugar Free Syrup and
Lozenges and Travisil inhaler.
- Mountain
Herbz - a range of clinically proven and scientifically validated herbal
extracts, which offers a safer alternative to treat life style, related
disorders (www.mountainherbz.com)
Food Supplements
- Coach’s
Formula - a range of popular sports nutrition products available in
India. Coach’s Formula aims at bringing high value sports supplements for
fitness enthusiasts, body builders and sports persons. Currently products
under this brand are available in India, CIS, Sri Lanka & some of the
African countries
- Confectionary
– Byte and Actifresh
Pharma OTC
- Effertabs -
a range of effervescent products, in pain, fever, cold, indigestion and
nutrition category. (C-MAX, Plestal Effertabs, Relievo Effertabs,
Fastorik Plus Effertabs etc.)
- Therasil
- Pharmaceuticals
formulations
In addition to India in the OTC segment,
Plethico is also a leading player in the Commonwealth of Independent States
(CIS), Africa, South East Asia, Latin America and in the GCC for its Travisil
range of products. With the recent acquisition of Natrol – a leading
manufacturer and marketer of branded nutritional products in the United States,
Plethico has now expanded its global footprint to the regulated markets of the
United States and Europe.
Board Of Directors:
Mr. Shashikant Patel (Chairman and Managing
Director)
At the helm of
Plethico is Mr. Shashikant Patel. He was appointed Chairman and Managing
Director in 1996 and under his guidance and strategic direction, the company
has established a dominant position in the global healthcare industry and has
successfully carved out a niche by focusing on the herbal and neutraceutical
segments, internationally and in India.
A dynamic team
builder and business strategist, Mr. Patel has been associated with the
business since over 40 years. An erudite personality with vast experience in
international business as well in-depth knowledge of the domestic healthcare
and pharmaceutical sectors, Mr. Patel’s vision, foresight and belief on the
potential of the global healthcare market, has catapulted Plethico to higher
echelons of growth and expansion.
As soon as Mr.
Patel was requested to take charge at the helm, he immediately set forth in
putting in place a strong senior management team including a professional
marketing team, bringing in the best talent available in the industry. Till
then, Plethico was a Rs. 450 million company. Within a span of 12 years, the
company’s revenues grew to Rs. 5500 million. He has evidently, been the key
driving force behind the company’s rapid growth. The precedent set by the
infusion of professional talent into the company, is still practiced by
Plethico. The company’s operations are divided into strategic business units
(SBU), each headed by world-class professionals responsible for setting goals
for their respective SBUs. His son Chirag Patel and daughter Gauravi ably
assist him in steering the company.
Mr. Patel is a
Director with Plethico Laboratories Limited, India, Plazma Laboratories Private
Limited, Rezcom Realty Private Limited, Plethico Global Holdings B. V.
Netherlands, Plethico US Holdings Kft., Hungary, Natrol Inc. USA and Plethico
International Limited, UAE.
Mr. Chirag Patel (Whole Time Director and
CEO)
As the CEO, Mr.
Chirag Patel has been primarily responsible for the Company’s foray into the
consumer healthcare business and for expanding its exports and international
operations. He commenced his career as a dynamic apprentice to Mr. Bhaskar
Patel, who trained him on the Sales, Distribution, Production and Financial
functions of the company. He too, like his father, was tremendously excited and
driven by the future potential of the global healthcare and pharmaceutical
industry that propelled him to explore new markets like the CIS and Africa. The
objective was to carefully understand the market dynamics and the economy for
business prospects. Under the strategic guidance of his father Mr. Shashikant
Patel, Chairman and Managing Director of Plethico, Mr. Chirag Patel has been
greatly instrumental in further strengthening the Plethico brand globally in
line with the company’s long-term vision. He has also been chiefly responsible
for the company’s resource management and spearheading initiatives such as
implementing Oracle-People soft- J. D. Edwards ERP Version 8.9 and finalization
of Field Force Management System from SIFY in three languages (Russian, Spanish
& French in addition to English) to enhance marketing prowess and optimize
overall productivity.
Mrs. Gauravi Parikh (Executive Director)
Ms. Gauravi Parikh
joined Plethico in the year 2000 after obtaining an MS degree from the
University of Ohio, USA. She presently oversees regulatory affairs, marketing,
and the New Product Development (NPD) disciplines of the company. Ms. Parikh
has drawn upon her pharmaceutical industry experience and strong medical
knowledge of molecules to assist the company in standardizing and to expedite
the creation of Registration Dossiers that are critical in registering the
company’s product’s globally. She has to her credit a past performance of
enabling the company to launch more than 200 products worldwide. Her expertise
in the areas of marketing and promotions within Plethico’s identified areas of
operations, is also sought on developing consumer-focused marketing literature
that is sent to various centers as part of the company’s international
marketing and promotional activities.
Dr. Gulam Nabi Qazi
Dr. G. N. Qazi is a
renowned Biotechnologist with extensive international exposure and research
oriented experience of 40 years in the areas of Biochemistry & Microbial
Biotechnology and Bioprospecting of Natural Products. He is presently the
Director of IIIM, Jammu, a multidisciplinary Research Institute specializing in
research and developmental studies in the areas of bioprospecting of natural
molecules; biotechnology fermentation and enzyme technology, microbial
biodiversity, molecular biology and gene cloning; natural products chemistry;
cultivation and utilization of drugs and essential oil bearing plants,
standardization of botanicals and chemical engineering and design backup for
packaging of technologies. He has more than 130 publications in the journals of
international repute has filed 70 patents top his credit. He has been
instrumental in transforming the premier institute into a leading institution
focused on R&D and comparable with those in the United States and Europe.
Dr. Qazi is also credited with developing strong international collaborations
with several reputed research institutes in Germany, Britain, Italy and the
United States in the areas of biochemical engineering, enzymology, genetic
engineering, bio prospecting of natural molecules as drug candidates and quality
control and standardization of botanicals.
He is a member of
several national and international academic and research bodies. As a
fermentation technologist, Dr. Qazi and his team is credited with developing a number
of important processes some of which have already been commercialized. He is
also a recipient of the highly prestigious CSIR Technology Award for research
in the area of fermentation process for the production of gluconate salts. For
his excellent contributions in the area of industrial biotechnology, he has
also received the VASVIK Award.
Mr. Abhay Suhane
Mr. Abhay Suhane is
an MBA from Devi Ahilya Vishav Vidyalaya, Indore with vast expertise in the
areas of finance, marketing, derivatives, commodity and capital markets in
India. He has conducted several studies on the Indian commodities market,
capital markets and derivatives. An incisive analyst and researcher, he has
conducted research on subjects like ‘Consumer Preference towards soft drinks’ and
‘Banking in the new millennium in India’
Mr. Pramod K. Shrivastava
Mr. Pramod K. Shrivastava is a Chartered Accountant with wide exposure in
international trade financing and treasury operations. He has extensive
experience in the field of mobilising finance for trade around the world in key
regions such as London, Hong-Kong, Singapore, Brussels, San Francisco, Osaka,
Bahrain, Frankfurt and Tokyo. He also brings with him competence in areas of
trade finance, forex, investments and banking operations. Mr. Shrivastava also
has in-depth understanding of establishing enterprises’ international
operations both as a wholly owned subsidiary or joint venture of an Indian
company.
MILESTONES
1963-70
- The beginning of the group activity.
This decade saw the establishment of the company's first formulation
plant, manufacturing tablets, Capsules and Liquid Orals, at Indore, Madhya
Pradesh, India.
1971-80
·
Up-gradation and expansion of Manufacturing Facilities.
Establishment of a nation wide marketing and distribution network. Introduction
of branded formulations in various categories.
1981-90
·
An ultra modern formulation plant was established at Manglia,
near Indore, to manufacture a wide range of allopathic formulations. Innovative
branded formulations were introduced and established in Anti-malarials,
Anti-tubercular, Cardiovascular and Cough and Cold segments. The company
pioneered the launch of Doxycycline and Cotrimoxazole in the Indian market.
1991-2000
·
Diversification into Herbal and Natural formulations with
scientific and modern manufacturing plant for Herbals set up at Indore.
·
Introduction of novel herbal products for Hepatocare,
Diabetes and Syndrome X developed with in-house research and clinical evidence.
·
Major thrust into International Marketing. Travisil, an
indigenously developed herbal Cough and Cold product became a star performer in
the entire CIS market.
2000-2005
·
Commissioning of the state of the art formulation
manufacturing plant at Kalaria, Indore, as per the requirements of WHO GMP, UK
MHRA and US FDA.
·
Plethico brand topped the Anti-Malarial segment of quinines.
(A C Neilson 2002).
·
Plethico, ranked amongst the TOP 5 Anti-TB companies in
India, with its revolutionary 3/4 drug fixed dose Anti-TB combinations.
·
The company re-oriented its business strategy and launched
its Consumer Healthcare Division in India.
·
Ultra modern fully integrated plants set up for manufacture
of PET bottle (AOKI, Japan) and hard boiled candies (Klockner Hansel GmBH,
Germany).
·
The company acquired a marketing and distribution chain in
the CIS, with subsidiaries in Russia, Ukraine, Kazakhstan, Moldova, Azerbaijan
and Kyrgyzstan. Marketing and Distribution Joint Ventures formed in South East
Asia, Africa and Latin-America.
·
Establishment of Plethico Africa Limited (Kenya), a
manufacturing Joint Venture to cater to the East African market.
2006 - 2008
·
Plethico raises Rs 110 crore from IPO to part finance:
- The
up-gradation of its Kalaria plant to make it UK MHRA compliant.
- Setting up a
WHO GMP (World Health Organization Good Manufacturing Practices)
compliant plant in Jammu & Kashmir and land to be used for organic
farming of important herbs.
- Setting up a
R&D and formulation and development centre.
- Acquiring
stake in domestic herbal/OTC/nutraceutical company or a brand.
- Setting up
its corporate office in Mumbai.
- The working
capital needs.
·
Activating brokers for International Acquisition: The process
was started in November, 2006. The objective was to acquire a synergistic business
in the US. Company evaluated proposals ranging from $ 15 Milllion to $ 60
Million. This search helped Plethico to get a first hand feel on what is
available in the US markets in this range. A senior management team was
deployed in April 07 to start meetings with prospective sellers and to
undertake a detailed evaluation process before taking a decision to invest.
·
Acquisition sighted: Company quickly locked in on a probable
list of target Companies it had identified after visit during the April visit.
·
Funding by Foreign Currency Convertible Bonds (FCCB): Company
successfully raised $ 75 Million for financing the prospective deal in hand.
Company identified Natrol Inc (NTOL) a Nasdaq listed entity manufacturing and
marketing Herbal and nutraceutical formulations in the US. It had a retail
reach of more than 55000 outlets. The target was to be acquired through a
friendly merger deal which was announced on 18th November, 2007 for cash at $
80.8 Million. The Company's annual revenues were approximately $100 Million
with a projected EBlTDA of 10%.
·
Sale of stake in Rezlov: Company in 2003 had started
acquiring strategic stake in Rezlov Group of Companies in CIS starting all
across at 51 % stake. In the meantime, Company had increased stake to 75% in 3
Companies. Plethico sold stake in 2007 in all the Companies to accommodate a
new strategic partner from Switzerland who took stake in all the six entities.
The objective of disinvestment was not to earn INR 16.46 Crores of profit for
diluting stake or to make the holding uniform in all entities at 45%. The
objective was to bring in a strategic partner who would help our cause of
deepening our reach in European markets starting from East European markets.
PRESS REALESE
Plethico Pharmaceuticals announces FY 2010 Results
Net Sales for the Year stands at Rs. 1518 crore, up 22% Y‐o‐Y; Company announces dividend of 25%
Mumbai, March
31st, 2011: Plethico Pharmaceuticals Limited (BSE:532739: PLETHICO), a leading
global healthcare and pharmaceutical company with a strong emphasis on the
herbal and nutraceutical segments, today announced its financial results for FY
2010, ending December 31st, 2010.
Consolidated
financial highlights for the year ending December 31st, 2010
Consolidated
Revenues stood at Rs 1,518 cr; an increase of 22% over the previous fiscal
EBITDA
Margin stood at 20.7% as against 19.4% for FY 09 ; an increase of 130 bps
Consolidated Net Profit for the year stands at Rs 244.4 cr as against Rs. 216.9
cr of FY 09
Basic
EPS for the year stood at Rs 71.7 ; an increase of 13% over FY 09
The
Company has declared a dividend of 25% on a face value of Rs. 10 per share.
Commenting on the
results, Mr. Shashikant Patel, Chairman and Managing Director, Plethico
Pharmaceuticals Limited, said, “We are extremely delighted with the performance
of the Company in the last fiscal. Revenues grew by 22% while EBITDA margins
also showed an improvement of 130 bps. The revenue uptick was a result of our
geographic diversification strategy that we put in place while better cost
efficiencies through outsourcing several products internationally helped
improved our margins.” He also added, “Our focused approach on nutraceutical
products with a dedicated In‐house promotion
team has helped in the growth of our international business, Natrol from about
US$ 39 million in CY09 to US$ 50 mn in CY 10. We are confident that cross
selling of products from Natrol and Plethico across geographies will hold the
business in good stead for the year forward.”
About Plethico
Plethico
Pharmaceuticals Limited is a leading global healthcare and pharmaceutical
company with a strong emphasis on the herbal and nutraceutical segments.
Domestically, Plethico operates in the segments of Sports Nutrition,
Confectionary and OTC, in India. The company’s robust product portfolio
includes renowned, international brands including Travisil, Mountain Herbz,
Coach’s Formula, Byte and Actifresh. Plethico is also a leading player in the
Commonwealth of Independent States (CIS), Africa, South East Asia, Latin
America and in the GCC for its Travisil range of products. With the recent
acquisition of Natrol – a leading manufacturer and marketer of branded
nutritional products in the United States, Plethico has now expanded its global
footprint to the regulated markets of the United States and Europe.
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.44.30 |
|
|
1 |
Rs.72.92 |
|
Euro |
1 |
Rs.64.69 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
66 |
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.