MIRA
INFORM REPORT
|
Report Date : |
26.05.2011 |
IDENTIFICATION DETAILS
|
Name : |
PFIZER LIMITED |
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|
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Registered
Office : |
Patel Estate,
Off. |
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Country : |
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Financials (as
on) : |
30.11.2009 |
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Date of
Incorporation : |
21.11.1950 |
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Com. Reg. No.: |
11-008311 |
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Capital
Investment / Paid-up Capital : |
Rs.298.432
Millions |
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|
|
|
CIN No.: [Company Identification
No.] |
L24231MH1950PLC008311 |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMP00256E |
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PAN No.: [Permanent Account No.] |
AAACP3334M |
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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
: |
Manufacture and sale of Pharmaceutical, Formulation and Bulk Drugs. |
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No. of Employees
: |
2542 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (75) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
Maximum Credit Limit : |
USD 39000000 |
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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 part of Pfizer Corporation The company can be considered normal for business dealings at usual
trade terms and conditions. It can be regarded as a promising business partner in medium to long
run. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INFORMATION DECLINED BY
|
Name : |
Mr. Himanshu |
|
Designation : |
Accounts Manager |
|
Contact No.: |
91-22-66932000 |
|
Date : |
25.05.2011 |
LOCATIONS
|
Registered / Head Office : |
Patel Estate,
Off. |
|
Tel. No.: |
91-22-2678 5511 /
6932000 |
|
Fax No.: |
91-22-2678 1766 /
6932377 / 66932444 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
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Factory 1: |
Thane |
|
Tel. No.: |
91-22-7916161 /
27681036 / 27681421 |
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Fax No.: |
91-22-7916160 |
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|
|
|
Factory 2: |
Plot No.
178-178A, Industrial Area, Phase I, Chandigarh-160 002 |
|
Tel. No.: |
91-129-650578 /
79 / 80 / 84 |
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Fax No.: |
91-129-655178 |
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Regional Centers: |
Located at:
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Branches : |
Located at :
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DIRECTORS
As on 30.11.2009
|
Name : |
Mr. R.A. Shah |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Kewal Handa |
|
Designation : |
Managing Director |
|
Date of Birth/Age : |
53 Years |
|
Qualification : |
M.Com.
A.I.C.W.A., A.C.S. |
|
Date of Appointment : |
18.06.1990 |
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|
|
|
Name : |
Mr. Pradip P. Shah |
|
Designation : |
Director |
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|
|
|
Name : |
Dr. Bombi M. Gargrat |
|
Designation : |
Director, Technical Operations |
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|
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|
Name : |
Mr. Richard Gane |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Anjan Sen |
|
Designation : |
Projects |
|
|
|
|
Name : |
Dr. Bomi M.
Gagrat |
|
Designation : |
Technical
Operations |
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|
|
|
Name : |
Dr. C. N. Potkar |
|
Designation : |
Medical and
Regulatory Affairs |
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|
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|
Name : |
Ms. Dipali Talwar
|
|
Designation : |
Legal |
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|
|
|
Name : |
Ms. Hiroo
Mirchandani |
|
Designation : |
Futura |
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|
Name : |
Mr. Partha Ghosh |
|
Designation : |
Commercial |
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|
|
|
Name : |
Mr. Pradeep Patni |
|
Designation : |
Pharmaceutical
(Critica and Intima) |
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|
|
|
Name : |
Mr. S. Sridhar |
|
Designation : |
Finance |
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|
|
|
Name : |
Mr. S. Venkatesh |
|
Designation : |
Strategy and
Business Development |
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|
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|
Name : |
Mr. Shiva Nair |
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Designation : |
Business
Technology |
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|
|
|
Name : |
Mr. Sunil Madhok |
|
Designation : |
Business
Operations |
|
|
|
|
Name : |
Mr. Suresh
Subramanian |
|
Designation : |
Pharmaceutical
(Ultima and Proxima) |
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|
|
|
Name : |
Mr. Uday Mohan |
|
Designation : |
Human Resources |
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|
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|
Name : |
Dr. Yash Goyal |
|
Designation : |
Animal Health |
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|
Name : |
Mr. Prajeet Nair |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2011
|
Names of Shareholders |
Total
No. of Shares |
Total
Shareholding as a % of total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
|
|
|
|
21,113,171 |
70.75 |
|
|
21,113,171 |
70.75 |
|
Total shareholding of Promoter and Promoter Group (A) |
21,113,171 |
70.75 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
1,580,307 |
5.30 |
|
|
15,876 |
0.05 |
|
|
299,519 |
1.00 |
|
|
670,147 |
2.25 |
|
|
2,565,849 |
8.60 |
|
|
|
|
|
|
576,240 |
1.93 |
|
|
|
|
|
|
5,292,287 |
17.73 |
|
|
135,350 |
0.45 |
|
|
158,543 |
0.53 |
|
|
3,902 |
0.01 |
|
|
3,233 |
0.01 |
|
|
300 |
- |
|
|
148,277 |
0.50 |
|
|
2,831 |
0.01 |
|
|
6,162,420 |
20.65 |
|
Total Public shareholding (B) |
8,728,269 |
29.25 |
|
Total (A)+(B) |
29,841,440 |
100.00 |
(1)
Indian
Bodies
Corporate
Individual
shareholders holding nominal share capital up to Rs.0.100 MillionBUSINESS DETAILS
|
Line of Business : |
Manufacture and sale of Pharmaceutical, Formulation and Bulk Drugs. |
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Products : |
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Brand Names : |
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PRODUCTION STATUS (AS ON 30.11.2009)
|
Particulars |
Unit |
Installed
Capacity |
|
Formulations |
|
|
|
Tablets and
Capsules (Three shift basis) |
Mn. / Nos. |
3624 |
|
Liquids (Two
shift basis) |
Litres |
6960000 |
|
Solids (Two shift
basis) |
Kgs. |
162400 |
|
Ointments (Single
shift basis) |
Kgs. |
232800 |
Notes:
- In terms of Press Note No. 4 (1994
series) dated 25 October, 1994 issued by the Department of Industrial
Development, Ministry of Industry, Government of India and Notification
No. S.O. 137(E) dated 1 March, 1999 issued by the Department of Industrial
Policy and Promotion, Ministry of Industry, Government of India,
industrial licensing has been abolished in respect of bulk drugs and
formulations.
- The installed capacity is as certified
by the Management and not verified by the Auditors, this being a technical
matter.
GENERAL INFORMATION
|
No. of Employees : |
2542 (Approximately) |
|
|
|
|
Bankers : |
Ř Central Bank of Ř Citibank N.A., Mumbai Ř Deutsche Bank, Mumbai Ř Societe General, Mumbai Ř BNP Paribas, Mumbai Ř Standard Chartered Grindlays Bank Limited, Mumbai |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
BSR and Company Chartered Accountant |
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Ultimate Holding
Company: |
Pfizer Inc., |
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|
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|
Companies
Collectively Exercising Significant Influence: |
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|
|
|
|
Fellow
Subsidiaries: (With Whom Transactions Have Taken Place During The Year): |
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CAPITAL STRUCTURE
As on 30.11.2009
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
29844080 |
Equity Shares |
Rs.10/- each |
Rs.298.441 Millions |
|
10155920 |
Unclassified Shares |
Rs.10/- each |
Rs.101.559 Millions |
|
|
Total |
|
Rs.400.000
Millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
29844080 |
Equity Shares |
Rs.10/- each |
Rs.298.441
Millions |
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
29841440 |
Equity Shares Of the above
|
Rs.10/- each |
Rs.298.414
Millions |
|
|
Add: Forfeited share capital Amount paid-up on 2,640 (Nov 2008: 2,640) Equity shares of
Rs. 10 each forfeited |
|
Rs.0.018
Million |
|
|
Total |
|
Rs.298.432 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
30.11.2009 |
30.11.2008 |
30.11.2007 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
298.432 |
298.432 |
298.432 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
9644.894 |
8697.216 |
6188.014 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
9943.326 |
8995.648 |
6486.446 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
0.000 |
0.000 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
9943.326 |
8995.648 |
6486.446 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
924.862 |
507.612 |
601.634 |
|
|
Capital work-in-progress |
7.987 |
322.982 |
102.438 |
|
|
|
|
|
|
|
|
INVESTMENT |
5.025 |
5.025 |
5.025 |
|
|
DEFERREX TAX ASSETS |
275.020 |
226.715 |
129.792 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1133.711
|
1246.832
|
950.626 |
|
|
Sundry Debtors |
643.918
|
597.265
|
613.655 |
|
|
Cash & Bank Balances |
5274.045
|
5430.608
|
4797.917 |
|
|
Other Current Assets |
48.206
|
144.941
|
81.711 |
|
|
Loans & Advances |
3720.916
|
2479.518
|
1353.694 |
|
Total
Current Assets |
10820.796
|
9899.164
|
7797.603 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1162.463
|
1072.684 |
921.089 |
|
|
Other Current Liabilities |
166.474
|
148.724
|
141.709 |
|
|
Provisions |
761.427
|
744.442
|
1116.548 |
|
Total
Current Liabilities |
2090.364
|
1965.850
|
2179.346 |
|
|
Net Current Assets |
8730.432
|
7933.314
|
5618.257 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
29.300 |
|
|
|
|
|
|
|
|
TOTAL |
9943.326 |
8995.648 |
6486.446 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
30.11.2009 |
30.11.2008 |
30.11.2007 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
7722.717 |
6777.061 |
6726.584 |
|
|
|
Other Income |
954.231 |
934.215 |
3426.968 |
|
|
|
TOTAL (A) |
8676.948 |
7711.276 |
10153.552 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Material Cost |
2877.093 |
2375.882 |
2314.772 |
|
|
|
Personnel Cost |
1238.821 |
1020.966 |
1016.976 |
|
|
|
Manufacturing and Others Expenses |
2268.880 |
2096.634 |
2051.030 |
|
|
|
Exceptional Items Net |
109.177 |
(2079.068) |
173.504 |
|
|
|
TOTAL (B) |
6493.971 |
3414.414 |
5556.282 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2182.977 |
4296.862 |
4597.270 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
0.000 |
0.000 |
0.152 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2182.977 |
4296.862 |
4597.118 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
82.876 |
111.219 |
95.846 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
2100.101 |
4185.643 |
4501.272 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
731.268 |
1194.441 |
1112.018 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1368.833 |
2991.202 |
3389.254 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
6754.519 |
4498.868 |
NA |
|
|
|
|
|
|
|
|
|
Less |
ON ACCOUNT OF
AMALGAMATION OF ERSTWHILE DUCHEM LABORATORIES LIMITED (‘DUCHEM’) |
17.124 |
0.000 |
NA |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
136.883 |
299.120 |
NA |
|
|
|
Proposed Dividend |
373.018 |
373.018 |
NA |
|
|
|
Tax on Dividend |
63.413 |
63.413 |
NA |
|
|
BALANCE CARRIED
TO THE B/S |
7532.914 |
6754.519 |
NA |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export (on FOB Basis) |
34.927 |
14.177 |
NA |
|
|
|
Service Income (Gross) |
220.954 |
215.646 |
NA |
|
|
TOTAL EARNINGS |
255.881 |
229.823 |
NA |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
586.365 |
397.264 |
260.019 |
|
|
|
Capital Goods |
0.350 |
3.127 |
1.245 |
|
|
|
Finished Goods |
159.348 |
143.364 |
87.133 |
|
|
TOTAL IMPORTS |
746.063 |
543.755 |
348.397 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
45.87 |
100.24 |
NA |
|
QUARTERLY RESULTS
|
PARTICULARS |
31.05.2010 |
30.08.2010 |
30.11.2010 |
31.03.2011 |
|
Net Sales |
2234.500 |
2367.000 |
2609.800 |
3106.500 |
|
Total Expenditure |
1872.400 |
1843.800 |
2126.700 |
2403.100 |
|
PBIDT (Excl OI) |
362.100 |
523.200 |
483.100 |
703.400 |
|
Other Income |
214.800 |
159.100 |
203.400 |
275.100 |
|
Operating Profit |
576.900 |
682.300 |
686.500 |
978.500 |
|
Exceptional Items |
(12.400) |
(14.700) |
(3.100) |
0.000 |
|
PBDT |
564.500 |
667.600 |
683.400 |
978.500 |
|
Depreciation |
22.200 |
24.900 |
24.100 |
25.900 |
|
Profit Before Tax |
542.300 |
642.700 |
659.300 |
952.600 |
|
Tax |
196.400 |
217.900 |
223.500 |
321.200 |
|
Profit After Tax |
345.900 |
424.800 |
435.800 |
631.400 |
|
Net Profit |
345.900 |
424.800 |
435.800 |
631.400 |
KEY RATIOS
|
PARTICULARS |
|
30.11.2009 |
30.11.2008 |
30.11.2007 |
|
PAT / Total Income |
(%) |
15.77
|
38.79 |
33.38 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
27.19
|
61.76 |
66.92 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
17.88
|
40.22 |
72.37 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.21
|
0.47 |
0.69 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.21
|
0.22 |
0.33 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
5.18
|
5.04 |
3.58 |
LOCAL AGENCY FURTHER INFORMATION
DETAILS OF SUNDRY CREDITORS:
|
Particulars |
30.11.2009 (Rs. in millions) |
30.11.2008 (Rs. in millions) |
30.11.2007 (Rs. in millions) |
|
Sundry Creditors |
|
|
|
|
Due to Micro, Small and Medium Enterprises |
17.886 |
17.276 |
10.536 |
|
Others |
1144.577 |
1055.408 |
910.553 |
|
Total |
1162.463 |
1072.684 |
921.089 |
FINANCIAL RESULTS
The Company’s sales (net of excise duty and sales tax) amounted to
Rs.7722.700 Millions (Previous year –
Rs.6777.100 Millions ) recording an impressive growth of 14% over the previous
year. The Company achieved a Net Profit
of Rs.1368.800 Millions as compared to Rs.2991.200
Millions showing a decline of 54%. This
decline is mainly due to the impact of Exceptional Income in the previous year.
The profit before exceptional items however, recorded an increase of 5%.
OUTLOOK
Indian economy has been witnessing a phenomenal growth since the last
decade. The country is still holding its ground in the midst of the current
global financial crisis. Global investment firm, Moody’s, believes that driven
by renewed growth in
The World Bank has projected an 8% growth for
It is estimated that by 2015, the Indian Pharmaceutical Industry will
rank amongst the top 10 in the world and will be valued at US$ 20 Billion. The
major trends that will influence the growth of the market over the next few
years are: increasing disposable income, growing number of middle class
households, expansion of healthcare infrastructure, penetration of healthcare
insurance, rising incidence of chronic diseases, and expanded healthcare access
to rural and semi urban markets, aided by GDP increase of approximately 7%.
Pharmaceutical companies will also continue to grow through acquisitions,
joint ventures, leveraging low operational costs and outsourcing. MNCs are also
targeting rural and semi-urban markets to further consolidate their presence.
PHARMA INDUSTRY IN
2009 – AN OVERVIEW
The Indian Pharmaceutical industry has been largely resilient to the
economic challenges. The Indian Pharmaceutical Market achieved 15.7% growth on
an annualized basis, volumes contributing 7.4%, new products contributing 7.6%
and price 0.7% (Source: ORG IMS: MAT Nov. 2009), versus 10.5% in 2008 and 12.5%
in 2007. Indian companies outgrew the market at 15.9%, while MNCs registered a
growth of 15%. Acute therapy continues to dominate the market with a value
contribution of over 74%. The chronic segment has registered a healthy growth
of 18% as against 15% of acute segment.
REVIEW OF
OPERATIONS
BUSINESS SEGMENT:
PHARMACEUTICALS DIVISION:
The revenue of the Company’s Pharmaceutical Division for the year, at
Rs.6661.100 Millions (Previous Year Rs.5947.800 Millions) grew by 12%. This
year the Company recorded faster growth than most other multinational companies
and across various therapeutic segments especially vitamins and minerals,
anti-infective, cardiac, derma and neuro/ CNS. (Source: ORG IMS)
The Company moved from rank 14th to 12th during the year and has been
consistently growing faster than the market over the last seven months of the
financial year. Currently, we are growing at 19.8% and have a market share of
2.3% (Source: ORG IMS-SSA MAT Nov. 2009). As was the case last year, a
significant proportion of the growth has come from increased volumes by
revitalizing growth in core brands. Their current portfolio includes some of
respective therapeutic segments. These brands have stood the test of
time and even today are growing from strength to strength. Brands like
Becosules, Magnex, and Minipress XL have been consistently growing faster than
the market. Dedicated focus has been established on specific brands to ensure
more of their brands that have the potential to perform, are given the
opportunity to grow in the market.
Marketing and Medical Initiatives
The Company’s commitment to develop and consolidate strong relationships
with customers has continued during 2009 with the launch of several
initiatives. One such initiative was the World Heart Day campaign, which aimed
to increase awareness about cardiovascular disease and liaise with KOLs in
awareness initiatives to enhance advocacy of the Company’s CV brand portfolio. Another
innovative initiative was rolled out in the area of smoking cessation.
Pharmacotherapy for smoking cessation as a therapeutic entity has largely been
overlooked by the medical community as well as smokers. This unmet medical need
was addressed by the Company by rolling out a simplified algorithm for smoking
cessation, which a primary care practitioner can implement in their day to day
practice. An expert body of over 50 clinicians involved in tobacco cessation,
named as Tobacco Cessation Clinicians Council (TCCC) was constituted. Several
advisory board meetings were conducted across the country and the standard
recommendations, expert opinions etc. were synthesized into simple, easy to
implement management algorithm for smoking cessation. This initiative will
equip physicians across the country to effectively approach and manage smoking
cessation in their routine practice thereby helping smokers quit and ward off
the menace of tobacco.
The Retail Project was initiated as a pilot in mid 2008 with the aim of
improving the coverage of retail pharmacies was scaled up in beginning of 2009,
and has resulted in increasing the coverage of retail pharmacies by 25%. In
addition, an initiative to identify opportunities and chalk out strategies to
aggressively enter the institutional segment and increase the Company’s
presence in this ever growing segment is currently underway.
Another initiative that had a significant impact was the Company’s
efforts in the OTC space. In today’s fast growing OTC market it is very
challenging to sustain business and preempt competition. As an organization we
need to design their marketing plans differently in order to register ourselves
in the minds of their customers. Chemist Awareness Programme (CAP) activity is
one such innovative marketing strategy meant to engage retailers by imparting
education and knowledge to the retailers on common ailments and making them
understand their brand’s salient features. This continuous engagement with
retailers helps us in building excellent relationships with their retailers. In
addition, several innovative customer centric activities like cash counter
displays, multi level trade programs in clinic activities, direct to consumer
activities, etc., were carried out to increase penetration and consumer
awareness.
BUSINESS SEGMENT:
ANIMAL HEALTH DIVISION
Per capita poultry meat consumption has also seen an increase in the
last decade from less than 500 gms in 1991 to almost two kgs in 2006 with a
CAGR of 10%. With the economic growth, companion animal business has grown
rapidly over the last decade and has emerged as the fastest growing segment in
animal health business. Pfizer Animal Health division has continued its strong
performance in 2009, growing faster than the market and driven by new products,
double digit growth of key brands and improved operational efficiencies leading
to a strong financial performance. A favorable external environment coupled
with internal preparedness to take advantage of the opportunity gives us the
confidence for future.
Dairy Business
Indian dairy population and milk production continues to be the highest
in the world. It is envisaged that the milk production will continue to grow at
the rate of 4% per annum over the next decade. Major issues facing the dairy
industry are per animal productivity, dependence on agrarian economy,
unorganized nature of the customer base limiting the “reach” and high price
sensitivity. The shift towards organized dairy farms with increased holding per
farm has been gradual but is an important directional change which will lead to
better management practices and productivity. Their Dairy business is well
positioned to take advantage of the opportunity with a well trained field
force, increased reach and presence in all major product segments viz.
paraciticide, anti-infective, nutritional and reproductives.
Poultry Business
Large segment of Indian poultry industry is in the organized sector with
a couple of national players vertically integrated across value chain. Poultry
industry was adversely affected by the Avian influenza in the early part of the
year followed by higher input cost but the long term future looks promising as
indicated by an high rate of growth in poultry meat consumption in India.
Pfizer poultry team’s conscious effort to focus on bio security has paid rich
dividends and we plan to consolidate the same in future.
Companion Animal
Business
Companion animal (CA) business has witnessed a positive impact of GDP
growth and has grown by 20% per annum. The growth is fuelled by higher
disposable income and increasing awareness led by high decibel campaigns by pet
food companies.
BUSINESS SEGMENT:
SERVICES – CLINICAL OPERATIONS
Clinical
Operations
The Clinical Operations group is responsible for all clinical trials
conducted by the Company within the country. The Clinical Operations group
comprises of three organizational segments: Study Management; India Regional
Monitoring Group; and Support Services. About four-fifths of the clinical
research portfolio relates to phase II and phase III studies executed for
Pfizer Global Research and Development (PGRD) worldwide development teams while
the rest are phase IIIb, phase IV comparative, post-marketing surveillance and
other studies to support local registration, launch and marketing. The Company has contributed greatly to the
development of clinical research in the country and holds a position of
leadership in this area. Initiatives such as the establishment of preferred
research centers (at Nizam’s
The Company has partnered with
other pharmaceutical companies, contract research organizations and
investigators through the Indian Society for Clinical Research (ISCR) – a
professional society aimed at raising the standards of clinical research in the
country as well as Academy for Clinical Excellence. Recently, Pfizer
ISCR works to develop science and ethics standards, and represent the
interest of clinical research stakeholders. The society gives this award
annually for notable contributions to the field of clinical research. Exemplary
efforts of the Company for this cause
include:
- Having
several Phases II, III and IV drug development programs across therapeutic
areas in
- Supporting
the development of Indian research guidelines, including the revision of
Schedule Y, which governs conduct of clinical trials, training of
regulatory inspectors, capacity building of ethics committees and
development of centers of excellence in research
- Launching the
“
- Leading the
creation of the “Academy for Clinical Excellence” – a training institute
for clinical research professionals.
Launching the Indian versions of a “Speaking Book for clinical trial participation”
to increase awareness about participation in clinical research. The book
explains the rights and responsibilities of participants involved in clinical
trials and uses audio components in local languages and simple illustrations to
explain the working of a clinical trial.
MEDICAL RESEARCH
DIVISION:
The Medical and Research Division
is responsible for all scientific support for the Pfizer portfolio of products.
This division is responsible for regulatory and medical support to Pfizer’s
operations in
Medical Affairs
and Research
Medical Affairs and Research
(MAR) Team of 14 Medical doctors represent the medical conscience of the Company. The team consists of product
physicians and medical research specialists and is responsible for scientific
communications with various stakeholders including internal (Marketing and Sales) and external (physicians, medical
institutes, professional medical associations). These communications range from
product training of sales force, new product evaluations, scientific
presentations to medical community, scientific support for investigator-initiated
research, medical information, design of local clinical programs and scientific
engagements with physicians. The medical team is responsible for ensuring
compliance of promotional practices to international and local industry as well
as regulatory requirements. The MAR team also provides medical support to
regulatory registration as well as safety review and labeling activities.
Notable contributions have been the medical support to differentiation
of branded value offerings and medical development plans (including local
clinical trials) for in-lines (Daxid, Dolonex, Trulimax), pipelines, and line
extensions (Magnex Forte), facilitation of an algorithm on tobacco cessation by
the Tobacco Cessation Clinicians Council, setting up of the Medical Information
website and the Partnerships for Health initiative comprising 37 workshops
conducted as part of the Pfizer Education And Research League (PEARL) at Key
Institutes, Earning Trust (investigator capacity building in clinical research
at institutes in tier 2 to 4 cities), Experience to Evidence (harvesting rich
clinical experience of healthcare practitioners), and Medical Partnerships
Initiative focused on healthcare leadership in shaping healthcare policy.
Performance
Management System:
The Performance Management process has been used as a strong lever to
change the performance culture in the organization. Key activities such as
objective setting process, review mechanisms, rating distribution, coaching and
counselling processes and the final appraisal rating and payout, were revisited
and reviewed extensively by HR and the leadership team. A new simplified
performance management process will be implemented in 2010.
Reward and
Recognition:
The “Reward and Recognition” program was first developed four years ago
and is rolled out annually. Extraordinary contributions by colleagues should be
recognized and rewarded in a very distinct manner. These contributions are
linked to predetermined organizational goals and their impact on business
performance. In the beginning of 2009, we had the ‘R and R Nite’ where we felicitated 44 such
colleagues. All colleagues were involved in making it an engaging and
fun-filled evening. The Reward and
Recognition program has had a very positive impact on colleagues and continues
to be a strong motivational input.
MANUFACTURING
OPERATIONS:
The pharmaceutical manufacturing industry has produced a variety of
medicinal and other health related products undreamt of by even the most
imaginative apothecaries of the past. These drugs save lives of millions of
people from various diseases and permit many affected people to recover and
lead normal lives. Pioneering innovative breakthroughs and maintaining
world-class quality standards is Pfizer-India whose manufacturing philosophy is
Quality, Innovation and Safety that have now become an integral part of Pfizer
culture.
Pfizer complies and follows its pharma quality standards which are in
addition to the local statutory requirements. These proactive specifications
are their forte. The ‘Quality’ value is a standard against which we measure
ourselves and thus their emphasis on quality is very stringent and
implementation rigorous. Air, water and all materials are subjected to
multi-layered tests for compliances and scrutiny that only the best goes into
the making of the drug product. Pfizer,
inspired by a single goal: the patient’s health, strategies, its operations to
maintain its leadership position as an entity which is recognized for quality
as a value. A system of vigilant quality assurance
involving multiple tests operates through the entire gamut of production
to ensure safety, efficacy and dependability of a Pfizer product. All the
pharmaceutical developments are geared to cater to the health needs of their
people.
We go beyond mere pharmaceutical formulations. Rather, we endeavour
consistently to give the best quality drug to the patients as good health is a
vital component of an individual’s life-cycle. Since Pfizer is synonymous with
trust and reliability, it is crucial that genuine cardiovascular and other
drugs are consumed by the patient, as every life is indeed very vital. Hence,
for example one of their innovative products Minipress XL is a bi-layered
tablet where one portion acts as an osmotic pump and the medicine in the other
layer is systematically released over a 24 hours cycle into the patient’s
bloodstream through the orifice in the tablet, which has been so designed and
structured that counterfeiting it would be an expensive proposition.
The par excellent Environment, Health and Safety standards have earned
Pfizer
Thane facility successfully achieved the recertification of integrated
ISO 14001 and OHSAS 18001 surveillance audit conducted by M/s DNV in April,
2009. Based on Site’s consistent performance, M/s DNV have reduced the
surveillance audit frequency from twice a year to once a year due to their
sustenance and adherence to good EHS management systems.
Pfizer Global EHS Operations division has instituted the Green Chemistry
Award. Manufacturing received Global recognition by acquiring runners up
position for all the three Green Chemistry Projects implemented in Quality
Operations and Product Development in 2008.
The Company’s strength lies in
its capacity in Line Extension development where formulations are developed and
improvised significantly to meet the dynamic facets of the drug in step with
the emerging disease and the need to combat it. Drug development is a long,
expensive, and failure-prone process. It requires cutting-edge scientific skills
and collaboration across multiple disciplines within the pharmaceutical
industry and among educational institutions, research laboratories, government
regulators and healthcare professionals.
The core to the superlative standards of the Company is its qualified, trained and skilled
colleagues who are sensitized to the Pfizer heritage of protection of
environment, health and safety. To encourage staff involvement in the growth
and progress of Pfizer, we have the “Right First Time” initiative (RFT), where
the ultimate endeavour is to be error-free and near perfect at the maiden
attempt – a Pfizer Global Manufacturing (PGM) initiative that has tremendously
benefited the organization in improving products and processes. Four Black
Belt, Twelve Green Belt projects are completed and a number of projects are in
progress. There are total of 267 Yellow Belt (Method I) trained staff. This RFT
initiative has resulted in many tangible and intangible benefits to the
organization. The list of awards and
scrolls of honour are many but the most worthwhile reward is the confidence and
faith reposed by the patients in support of Pfizer Quality products. We have a leading portfolio of
medicines that prevent, treat and cure diseases across a broad range of
therapeutic areas.
AMALGAMATION OF
WHOLLY-OWNED SUBSIDIARY DUCHEM LABORATORIES LIMITED
The Hon’ble High Court of Judicature at
CONTINGENT LIABILITY
|
Particular |
30.11.2009 (Rs. in millions) |
30.11.2008 (Rs. in millions) |
|
(a) In respect of
the guarantees given to banks on behalf of: |
|
|
|
Its subsidiary company |
0.000 |
240.000 |
|
Other guarantees |
11.427 |
10.714 |
|
(b) In respect of: |
|
|
|
Excise duty |
40.955 |
42.078 |
|
Customs duty |
4.150 |
4.054 |
|
Sales tax |
63.897 |
62.724 |
|
Service tax |
19.311 |
19.311 |
|
Income tax |
808.587 |
74.362 |
|
Pending labour matters contested in various courts |
10.966 |
12.266 |
|
Total |
959.293 |
465.509 |
FIXED ASSETS:
Intangible Assets:
·
Trademarks
Tangible Assets:
·
·
·
Building
·
Leasehold improvements
·
Machinery and equipments
·
Office Equipments
·
Furniture and Fixtures
·
Vehicles
AUDITED
FINANCIAL RESULTS FOR THE FOUR MONTHS AND SIXTEEN MONTHS ENDED 31ST
MARCH, 2011
Rs.
in Millions
|
Particulars |
Four
Months Period 01.12.2010 To
31.03.2011 |
Three
Months Ended 28.02.2010
* |
Sixteen
Months Period 01.12.2009 To
31.03.2011 |
|
|
Unaudited |
Unaudited |
Audited |
|
Net Sales/Income
from Operations |
2931.700 |
2026.100 |
11695.600 |
|
Other Operating
Income |
174.800 |
62.600 |
750.800 |
|
Expenditure |
|
|
|
|
Increase/decrease
in stock in trade and work in process |
(340.700) |
115.600 |
(321.500) |
|
Consumption of
raw materials |
698.600 |
402.200 |
2726.500 |
|
Purchase of
traded goods |
468.000 |
260.400 |
149.900 |
|
Employees cost |
589.800 |
286.800 |
2269.900 |
|
Depreciation |
25.900 |
22.900 |
120.000 |
|
Other expenditure |
987.400 |
506.400 |
3682.400 |
|
Total |
2429.000 |
1594.300 |
9977.200 |
|
Profit from
operations before other income, interest and exceptional items |
677.500 |
494.400 |
2469.200 |
|
Other Income |
275.100 |
154.800 |
1007.200 |
|
Profit before interest
and exceptional items |
952.600 |
649.200 |
3476.400 |
|
Interest |
0.000 |
0.000 |
0.000 |
|
Profit after
interest but before exceptional items |
952.600 |
649.200 |
3476.400 |
|
Exceptional items |
0.000 |
0.000 |
0.000 |
|
Profit (+) from
ordinary activities before tax |
952.600 |
649.200 |
3476.400 |
|
Tax expense |
321.200 |
224.700 |
1182.700 |
|
Net Profit (+)
from ordinary activities after tax |
631.400 |
424.500 |
2263.400 |
|
Extraordinary
Item (net of tax expense) |
0.000 |
0.000 |
0.000 |
|
Net Profit(+)/
loss(-) for the period |
631.400 |
424.500 |
2263.400 |
|
Paid-up equity
share capital (Face Value per share Rs.10) |
298.400 |
298.400 |
298.400 |
|
Reserves
(excluding revaluation reserves which are NIL) |
-- |
-- |
11336.000 |
|
Earnings Per
Share (EPS) |
|
|
|
|
Basic and diluted
EPS before exceptional items for the period, for the year to date and for the
previous year (not to be annualized) Rs. |
21.16 |
14.23 |
76.52 |
|
Basic and diluted
EPS before extraordinary items for the period, for the year to date and for
the previous year (not to be annualized) Rs. |
21.16 |
14.23 |
75.85 |
|
Basic and diluted
EPS after extraordinary items for the period, for the year to date and for the
previous year (not to be annualized) Rs. |
21.16 |
14.23 |
75.85 |
|
Public Shareholding |
|
|
|
|
No. of shares |
8728269 |
8728269 |
8728269 |
|
Percentage of
shareholding |
29.25 |
29.25 |
29.25 |
|
Promoters and promoter group Shareholding |
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
Number of shares |
Nil |
Nil |
Nil |
|
Percentage of
shares (as a % of the total shareholding of promoter and promoter group) |
Nil |
Nil |
Nil |
|
Percentage of shares
(as a % of the total share capital of the company) |
Nil |
Nil |
Nil |
|
b) Non-encumbered |
|
|
|
|
Number of Shares |
21113171 |
21113171 |
21113171 |
|
Percentage of
shares (as a % of the total shareholding of promoter and promoter group) |
100.00 |
100.00 |
100.00 |
|
Percentage of
shares (as a % of the total share capital of the company) |
70.75 |
70.75 |
70.75 |
* Part of the same financial period.
AUDITED
SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE FOUR MONTHS AND
SIXTEEN MONTHS ENDED 31ST MARCH, 2011
Rs. in Millions
|
Particulars |
Four
Months Period 01.12.2010 To
31.03.2011 |
Three
Months Ended 28.02.2010
* |
Sixteen
Months Period 01.12.2009 To
31.03.2011 |
|
|
Unaudited |
Unaudited |
Audited |
|
1.SEGMENT REVENUE |
|
|
|
|
(a) Pharmaceuticals
(incl. services) |
2511.700 |
1726.400 |
10179.100 |
|
(b) Animal Health
(incl. services) |
424.900 |
299.700 |
1592.000 |
|
(c) Services -
Clinical development operations |
228.000 |
59.900 |
739.200 |
|
Total |
3164.600 |
2086.000 |
12510.300 |
|
Less: Inter
Segment Revenue |
0.000 |
0.000 |
0.000 |
|
Net Sales/Income
From Operations |
3164.600 |
2086.000 |
12510.300 |
|
|
|
|
|
|
2. SEGMENT RESULTS (PROFIT BEFORE TAX AND
INTEREST FROM EACH SEGMENT) |
|
|
|
|
(a)
Pharmaceuticals (incl. services) |
678.500 |
518.400 |
2840.300 |
|
(b) Animal Health
(incl. services) |
120.200 |
82.700 |
311.900 |
|
(c) Services - Clinical
development operations |
18.300 |
17.500 |
79.100 |
|
Total |
817.000 |
618.600 |
3231.300 |
|
Less: (i)
Interest |
(229.800) |
(110.900) |
(742.800) |
|
(ii) Other un-allocable expenditure net
off un-allocable income |
94.300 |
80.300 |
528.000 |
|
Total Profit Before tax |
952.500 |
649.200 |
3446.100 |
|
|
|
|
|
|
3. CAPITAL EMPLOYED |
|
|
|
|
(a)
Pharmaceuticals (incl. services) |
1098.900 |
906.000 |
1098.900 |
|
(b) Animal Health
(incl. services) |
458.500 |
279.600 |
458.500 |
|
(c) Services -
Clinical development operations |
387.400 |
4.800 |
387.400 |
|
(d) Unallocated |
9689.600 |
9177.400 |
9689.600 |
|
Total |
11634.400 |
10367.800 |
11634.400 |
* Part of the same financial period
Notes:
1. The above
results have been taken on record by the Board of Directors of the Company at
its meeting held on May 3, 2011.
2. The company has changed
its accounting year from December 1 – November 30 to April 1 – March 31 with
effect from December 1, 2009. Hence, the current accounting period is for 16
months from December 1, 2009 to March 31, 2011.
3. The Board of
Directors had declared an interim dividend of Rs. 12.50 (125%) per equity share
of Rs. 10 each for the period under review. The Board of Directors has
recommended final dividend of Rs. 4.00 (40%) per equity share for the 16 months
period ended March 31, 2011. The aggregate dividend for the 16 months period
ended March 31, 2011 amounts to Rs. 16.50 (165%) per equity share.
4. “Consumption of
materials” includes consumption of raw materials and packing materials.
5. “Exceptional
items” include compensation paid to employees under VRS. The expense for the
four months and sixteen months ended March 31, 2011 is Rs. Nil and Rs. 30.300
millions respectively which has been fully charged off to profit and loss
account (corresponding three months and twelve months in the previous year Rs.
44.300 millions and Rs. 109.200 millions respectively).
6. At the beginning
of the current period, there was 1 shareholder’s complaint pending and during
the current period 18 complaints were received and 19 complaints were disposed
off. Hence, there is no complaint pending as at the end of the current period.
7. Charges towards
provision of back office support to fellow subsidiaries, which were netted off
against expenses amounting to Rs 53.200 Millions for the year ended November 30,
2009 and Rs 13.200 millions for the
quarter ended February 28, 2010 have now been regrouped to Other Operating
Income. Consequential adjustments have been made to the segment disclosures.
Prior year’s comparatives are strictly not comparable with those of the period
under review which are for the 4 months and 16 months ended March 31, 2011.
AUDITED
BALANCE SHEET AS ON 31ST MARCH, 2011
Rs. in
Millions
|
Particulars |
16 months ended (31/03/2011) |
|
SHAREHOLDERS' FUNDS: |
|
|
|
|
|
Capital |
298.400 |
|
Reserves &
Surplus |
11336.000 |
|
Total |
11634.400 |
|
|
|
|
Fixed assets |
862.100 |
|
investments |
0.000 |
|
deferred tax
asset (net) |
355.400 |
|
|
|
|
CURRENT ASSETS,
LOANS AND ADVANCES |
|
|
Inventories |
1593.200 |
|
Sundry Debtors |
981.900 |
|
Cash and Bank
Balances |
5770.100 |
|
Other Current
Assets |
59.100 |
|
Loans and Advances |
4212.700 |
|
Less: Current
Liabilities and Provisions |
|
|
Liabilities |
1571.900 |
|
Provisions |
628.200 |
|
Total |
11634.400 |
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws, regulations
or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.38 |
|
|
1 |
Rs.73.31 |
|
Euro |
1 |
Rs.63.70 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
75 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this report.
The assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any risk
and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its
officials.