MIRA
INFORM REPORT
|
Report Date : |
12.07.2012 |
IDENTIFICATION DETAILS
|
Name : |
STRIDES ARCOLAB LIMITED |
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Registered
Office : |
201, Devavrata, Sector 17,
Vashi, Navi Mumbai – 400705, |
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Country : |
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Financials (as
on) : |
31.12.2011 |
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Date of
Incorporation : |
28.06.1990 |
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Com. Reg. No.: |
11-057062 |
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Capital
Investment / Paid-up Capital : |
Rs. 583.800 millions |
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CIN No.: [Company Identification
No.] |
L24230MH1990PLC057062 |
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|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMS36534B |
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PAN No.: [Permanent Account No.] |
AADCS8104P |
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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
: |
Manufacturing and marketing of all types of Bulk Drugs,
Pharmaceuticals, etc. |
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No. of Employees
: |
800 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (57) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 54000000 |
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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 a reputed company having fine track.
Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
|
Registered Office : |
201, Devavrata, Sector 17,
Vashi, Navi Mumbai – 400705, |
|
Tel. No.: |
91-22-27892924 / 27893199 |
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Fax No.: |
91-22-27892942 |
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E-Mail : |
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Website : |
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Corporate Office : |
Strides House, Bilekahalli, |
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Tel. No.: |
91-80-26581343/ 44/ 67580738/
39/ 67580000/ 66580751/ 66580000/ 66580600 |
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Fax No.: |
91-80-26583538/ 4330/ 67580700/
800/ 66580800 |
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E-Mail : |
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GLOBAL PLANTS : |
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Factory 1 : |
Sterile Products Division – I Bilekahalli, |
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Factory 2 : |
Penicillins Facility Estrada Doutor Lorival
Martins Beda, 926 - 968 28110-000- Donana - Campos dos, Goytacazes- Rio de
Janeiro- Brazil |
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Factory 3 : |
Sterile Products Division - II Plot No. 284-A,
Bommasandra Jigani Link Road, Industrial Area, Jigani Village, Jigani, Hobli,
Anekal Taluk, Bangalore 562 106, India |
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Factory 4 : |
Strides Arcolab Polska Sp.Zo.o ul. Daniszewska
10 03-230 Warszawa NIP-813-34-15-000, Poland. |
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Factory 5 : |
Oral Dosage Form Facility - III Plot No. 9-12, Dewan
and Sons Industrial Area, Veroor, Palghar, Dist. Thane 401 404, Maharashtra,
India. |
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Factory 6 : |
Onco Therapies Limited Plot No. 284-B,
Bommasandra Jigani Link Road, Industrial Area, Jigani Village, Jigani Hobli, Anekal
Taluk, Bangalore 562 106, India |
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Factory 7 : |
Strides Vital Nigeria Limited Gate No. 02, |
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Factory 8 : |
Beta-lactams
Facility Bilekahalli, |
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Factory 9 : |
Beltapharm SpA 20095 Cusano
MIL. (MI) - Via Stelvio, 66 |
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Factory 10 : |
Penems Facility Estrada Doutor Lorival
Martins Beda, 926 - 968 28110-000- Donana - |
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Warehouse : |
Plot No. 62, Sector – 1, Nerul, Navi Mumbai – 400 706, |
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Global
Offices : |
Located
at :
4, Angus Cresent, |
DIRECTORS
AS ON 31.12.2011
|
Name : |
Mr. Deepak Vaidya |
|
Designation : |
Chairman (Non-Executive) |
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|
Name : |
Mr. Arun Kumar |
|
Designation : |
Executive Vice Chairman and Managing Director (Executive and
Promoter) |
|
Qualification |
B.Com., PGDBM |
|
Date
of Joining |
June 1990 |
|
|
|
|
Name : |
Mr. K.R. Ravishankar |
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Designation : |
Executive Director (Executive and Promoter) |
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Qualification |
B.Sc. (Part) |
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Date
of Joining |
June, 1990 |
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|
Name : |
Mr. Mukul Sarkar |
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Designation : |
Independent Director |
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Name : |
Mr. P M Thampi |
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Designation : |
Independent Director |
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Name : |
Mr. Venkat S Iyer |
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Designation : |
Director |
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Name : |
Mr. M.R. Umarji |
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Designation : |
Director (Non-Executive and Independent) |
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Name : |
Mr. A.K. Nair |
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Designation : |
Director (Non-Executive and Independent) |
KEY EXECUTIVES
|
Name : |
Mr. Arun Kumar |
|
Designation : |
Group Chief Executive
Officer |
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Name : |
Mr. Venkat S Iyer |
|
Designation : |
Executive Director and Chief Executive
Officer - Agila |
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Name : |
Mr. T. S. Rangan |
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Designation : |
Group Chief Executive
Officer |
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Name : |
Mr. Adam Levitt |
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Designation : |
Chief Executive Officer Americas Operations |
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Name : |
Dr. Anand Iyer |
|
Designation : |
Chief Executive Officer, Agila Biotech Division |
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Name : |
Mr. D P Shrivastava |
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Designation : |
Chief Executive Officer, Brazil
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Name : |
Mr. Manish Gupta |
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Designation : |
Chief Executive Officer - pharma |
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Name : |
Mr. Subroto Banerjee |
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Designation : |
President, Agila (India Region) |
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|
Name : |
Mr. Sihue B Noronha |
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Designation : |
Chief Executive Officer - Africa |
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|
Name : |
Mr. Sridhar S Rao |
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Designation : |
President, Quality Assurance |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2012
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
3427326 |
5.85 |
|
|
13166932 |
22.49 |
|
Sub
Total |
16594258 |
28.35 |
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
16594258 |
28.35 |
|
(B)
Public Shareholding |
|
|
|
|
|
|
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|
6825770 |
11.66 |
|
|
14979 |
0.03 |
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|
2757001 |
4.71 |
|
|
22919496 |
39.15 |
|
Sub
Total |
32517246 |
55.55 |
|
|
|
|
|
|
1355085 |
2.31 |
|
|
|
|
|
|
2419483 |
4.13 |
|
|
2611219 |
4.46 |
|
|
3042980 |
5.20 |
|
|
1691103 |
2.89 |
|
|
128076 |
0.22 |
|
|
421500 |
0.72 |
|
|
77765 |
0.13 |
|
|
220000 |
0.38 |
|
|
504036 |
0.86 |
|
|
500 |
-- |
|
Sub
Total |
9428767 |
16.11 |
|
Total Public shareholding (B) |
41946013 |
71.65 |
|
Total (A)+(B) |
58540271 |
100.00 |
|
(C) Shares held by Custodians
and against which Depository Receipts have been issued |
-- |
-- |
|
(1) Promoter and Promoter
Group |
-- |
-- |
|
(2) Public |
-- |
-- |
|
Sub Total |
-- |
-- |
|
Total (A)+(B)+(C) |
58540271 |
-- |
(1) Indian
Individuals / Hindu Undivided Family
(2) Foreign
Individual shareholders holding nominal
share capital up to Rs.0.100 Million BUSINESS DETAILS
|
Line of Business : |
Manufacturing and marketing of all types of Bulk Drugs,
Pharmaceuticals, etc. |
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Products : |
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PRODUCTION STATUS (AS ON 31.12.2011)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Soft Gelatin Plant Softgel Capsules |
Numbers
in Millions |
2645 |
-- |
|
Hard Gelatin Plant Capsules |
Numbers
in Millions |
450 |
699734 |
|
Tablet Plant Tablets |
Numbers
in Millions |
2160 |
2115452 |
|
Others |
Numbers
in Millions |
-- |
2105 |
Note:
Installed Capacities
are as certified by the management and relied upon by the Auditors. The
installed capacities serve multiple purposes and will vary according to product
mix.
** Not applicable as the products have been de-licensed.
GENERAL INFORMATION
|
No. of Employees : |
800 (Approximately) |
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Bankers : |
·
Axis Bank Limited ·
Central Bank of India ·
HDFC Bank Limited ·
Indian Overseas Bank ·
Punjab National Bank ·
Ratnakar Bank Limited ·
State Bank of Hyderabad ·
State Bank of India ·
Syndicate Bank ·
Yes Bank Limited |
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Facilities : |
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Banking
Relations : |
-- |
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Statutory Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
Deloitte Centre, |
|
Tel. No.: |
91-80-66276000 |
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Fax No.: |
91-80-66276011 |
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Internal Auditors : |
|
|
Name : |
Grant Thornton International Chartered Accountants |
|
Address : |
Wings, 1st Floor, 16/1, Cambridge Road, Halasuru,
Bangalore-560008, India |
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|
|
|
Joint Ventures : |
·
Akorn Strides LLC, USA ·
Sagent Strides LLC, USA |
|
|
|
|
Wholly Owned Subsidiaries : |
Direct Holding ·
Arcolab Limited SA, Switzerland ·
Agila Specialties Private Limited, India ·
Agila Specialties Limited (formerly Starsmore
Limited), Cyprus ·
Strides Africa Limited, British Virgin Islands ·
Strides Arcolab International Limited, U.K (SAIL) ·
Onco Therapies Limited, India (upto December 16,
2011 ) ·
Strides Pharma International Limited (formerly
Strides Specialty (Cyprus) Limited), Cyprus (w.e.f August 2, 2011) ·
Strides Technology and Research Private Limited,
India (Under the process of striking off) Indirect Holding ·
Pharma Strides Canada Corporation, Canada ·
Onco Therapies Limited, India (w.e.f. December
17, 2011) ·
Strides Pharma Limited (formerly Linkace
Limited), Cyprus ·
Linkace Investments PTY Limited, Australia ·
Plus Farma ehf. Iceland ·
Farma Plus AS , Norway ·
Strides Specialties (Holdings) Limited, Mauritius ·
Strides Specialties (Holdings) Cyprus Limited,
Cyprus ·
Strides Pharmaceuticals (Holdings) Limited,
Mauritius ·
Strides Pharmaceuticals (Mauritius) Limited,
Mauritius ·
Strides Pharma International Limited (formerly
Strides Specialty (Cyprus) Limited), Cyprus (Upto August 1, 2011) ·
Company Pharma Limited, UK ·
Strides Arcolab Polska Sp.Z.o.o, Poland ·
Onco Laboratories Limited, Cyprus ·
Strides Arcolab UK Limited, UK (woundup w.e.f
December 27, 2011) ·
Agila Especialidades Farmaceuticas Limited,
Brazil ·
Agila Specialties (Malaysia) SDN BHD, Malaysia ·
Strides Australia Pty Limited, Australia ·
Agila Specialties Asia Pte. Limited, Singapore
(w.e.f. December 14, 2011 ) ·
Strides Inc., USA ·
Strides Farmaceutica Participacoes Limited,
Brazil ·
Strides Pharma (Cyprus) Limited, Cyprus |
|
|
|
|
Other Subsidiaries : |
Indirect Holding ·
Ascent Pharmahealth Limited, Australia ·
Ascent Pharmahealth Asia Pte., Limited, Singapore ·
Ascent Pharma Pty Limited (formerly Genepharm Pty
Limited), Australia ·
Beltapharm S.p.A., Italy ·
Drug Houses of Australia (Asia) Pte. Limited,
Singapore ·
Pharmasave Australia Pty Limited, Australia ·
Strides S.A. Pharmaceuticals Pty. Limited, South
Africa ·
Inbiopro Solutions Private Limited, India ·
Ascent Pharmacy Services Pty Limited, Australia ·
Ascent Pharmaceuticals Limited (formerly
Genepharm (New Zealand) Limited), New Zealand ·
African Pharmaceutical Development Company
(APHAD), Cameroon ·
Agila Marketing e distribicao de Productos
Hospitalaries Limited. (formerly Ephos – 106 Produtos Hospitalaries Limited
Me), Brazil ·
Ascent Pharmahealth Asia (Hong Kong) Limited
(formerly Strides Arcolab Hong Kong Limited), Hong Kong ·
Ascent Pharmahealth Asia (Malaysia) SDN BHD
(formerly Strides Arcolab Malaysia SDN. BHD) , Malaysia ·
Ascent Pharmahealth Asia (B) SDN BHD (formerly
Strides Arcolab SDN. BHD), Brunei (windup w.e.f April 20, 2011 ) ·
Strides CIS Limited, Cyprus ·
Strides Vital Nigeria Limited, Nigeria ·
Congo Pharma SPRL, Congo (w.e.f. February 18,
2011) ·
SPC Company Limited, Sudan (w.e.f June 1, 2011 ) ·
Strides Pharma Namibia (Pty) Limited, Namibia
(w.e.f. March 17, 2011) ·
Sorepharm SA, Burkinofaso (w.e.f. March 1, 2011 ) |
|
|
|
|
Enterprises owned or significantly influenced by
key management personnel and relative of key management personnel : |
·
Atma Projects, India ·
Chayadeep Properties Private Limited, India ·
Fraxis Life Sciences Limited, India (Merged with
Sequent Scientific Limited w.e.f. September 13, 2011) ·
Higher Pharmatech Private Limited, India ·
Keerthapathi Ravishankar – HUF ·
Nous Infosytems Private Limited, India ·
Patsys Consulting Private Limited, India ·
Sequent Research Limited, India ·
Sequent Scientific Limited, India ·
Strides Italia srl., Italy |
CAPITAL STRUCTURE
AS ON 31.12.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
89750000 |
Equity Shares |
Rs.10/- each |
Rs. 897.500 Millions |
|
620000 |
Cumulative Redeemable Preference Shares |
Rs.1000/- each |
Rs. 620.000 Millions |
|
|
TOTAL |
|
Rs. 1517.500
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
58380171 |
Equity Shares |
Rs.10/- each |
Rs. 583.800
Millions |
|
|
|
|
|
AS ON 25.05.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
89750000 |
Equity Shares |
Rs.10/- each |
Rs. 897.500 Millions |
|
620000 |
Cumulative Redeemable Preference Shares |
Rs.1000/- each |
Rs. 620.000 Millions |
|
|
TOTAL |
|
Rs. 1517.500
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
58696471 |
Equity Shares |
Rs.10/- each |
Rs. 586.965
Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.12.2011 |
31.12.2010 |
31.12.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
583.800 |
577.450 |
893.760 |
|
|
2] Share Application Money |
0.000 |
0.000 |
141.50 |
|
|
3] Reserves & Surplus |
12980.710 |
13462.740 |
8209.500 |
|
|
4] Employees stock options outstanding account |
27.590 |
20.860 |
34.530 |
|
|
5] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
13592.100 |
14061.050 |
9279.290 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
8330.170 |
6461.360 |
5980.890 |
|
|
2] Unsecured Loans |
6067.840 |
5969.340 |
6341.500 |
|
|
TOTAL BORROWING |
14398.010 |
12430.700 |
12322.390 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
27990.110 |
26491.750 |
21601.680 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
3239.020 |
3115.520 |
3268.930 |
|
|
Capital work-in-progress |
79.920 |
375.280 |
112.140 |
|
|
|
|
|
|
|
|
INVESTMENT |
7868.180 |
8645.200 |
15180.420 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1303.200
|
1293.080 |
955.030 |
|
|
Sundry Debtors |
2642.840
|
1597.310 |
2075.270 |
|
|
Cash & Bank Balances |
814.610
|
810.290 |
313.820 |
|
|
Other Current Assets |
305.620
|
145.280 |
0.000 |
|
|
Loans & Advances |
17046.280
|
14210.230 |
3597.850 |
|
Total
Current Assets |
22112.550
|
18056.190 |
6941.970 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
2761.510
|
1882.820 |
2124.910 |
|
|
Other Current Liabilities |
398.400
|
326.790 |
81.390 |
|
|
Provisions |
2149.650
|
1490.830 |
1695.480 |
|
Total
Current Liabilities |
5309.560
|
3700.440 |
3901.780 |
|
|
Net Current Assets |
16802.990
|
14355.750
|
3040.190
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
27990.110 |
26491.750 |
21601.680 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.12.2011 |
31.12.2010 |
31.12.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
7163.550 |
5046.610 |
7694.420 |
|
|
|
Other Income |
498.920 |
561.030 |
131.500 |
|
|
|
TOTAL (A) |
7662.470 |
5607.640 |
7825.920 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Materials consumed |
4250.490 |
3015.410 |
4473.360 |
|
|
|
(Increase)/Decrease in stock |
66.190 |
(78.540) |
(119.860) |
|
|
|
Personnel cost |
629.780 |
525.510 |
836.600 |
|
|
|
Operating and other expenses |
1061.330 |
884.860 |
1367.010 |
|
|
|
Reversal of Exchange
Fluctuation on Restatement of Hedged investments in earlier years |
0.000 |
695.680 |
0.000 |
|
|
|
Exchange Gain |
(370.210) |
(948.030) |
(391.600) |
|
|
|
Changes in fair value of embedded
derivatives in FCCBs |
(188.850) |
15.630 |
41.120 |
|
|
|
Profit on FCCB buyback |
0.000 |
0.000 |
(291.170) |
|
|
|
Interest reversal on FCCB
buyback |
0.000 |
0.000 |
(79.960) |
|
|
|
Profit on sale of Investment |
0.000 |
(94.400) |
0.000 |
|
|
|
Provision no longer required
for diminution in value of investment |
0.000 |
(183.870) |
0.000 |
|
|
|
TOTAL (B) |
5448.730 |
3832.250 |
5835.500 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2213.740 |
1775.390 |
1990.420 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
775.880 |
733.740 |
598.030 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1437.860 |
1041.650 |
1392.390 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
176.150 |
150.820 |
226.850 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1261.710 |
890.830 |
1165.540 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
82.500 |
155.210 |
110.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1179.210 |
735.620 |
1055.140 |
|
|
|
|
|
|
|
|
|
|
Profit before
tax from discontinued Operations |
0.000 |
0.000 |
725.290 |
|
|
Less |
Tax Expenses |
0.000 |
0.000 |
108.940 |
|
|
|
Net Profit from Continuing
Operations |
0.000 |
0.000 |
616.350 |
|
|
|
|
|
|
|
|
|
|
Profit before
tax from Discontinued Operations |
0.000 |
0.000 |
440.250 |
|
|
Less |
Tax Expenses |
0.000 |
0.000 |
1.460 |
|
|
|
Net Profit From
Discontinued Operations |
0.000 |
0.000 |
438.790 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER
TAX |
1179.210 |
735.620 |
1055.140 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1029.800 |
780.600 |
(47.680) |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed dividend on equity shares |
117.370 |
91.590 |
60.320 |
|
|
|
Tax on proposed equity dividend |
18.710 |
14.980 |
10.250 |
|
|
|
Dividend on preferences shares |
0.000 |
0.000 |
88.490 |
|
|
|
Tax on preference dividends |
0.000 |
0.000 |
15.040 |
|
|
|
Transfer to general reserve |
89.000 |
36.780 |
52.760 |
|
|
|
Reversal of Dividend on Preference Shares and Taxes Thereon, no longer
payable |
0.000 |
(148.540) |
0.000 |
|
|
|
Transfer to Capital Redemption Reserve |
0.000 |
491.610 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
1983.930 |
1029.800 |
780.600 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Exports of Goods |
5404.610 |
3277.180 |
5452.220 |
|
|
|
Development Income |
447.590 |
609.680 |
834.010 |
|
|
|
Management advisory service
fees |
332.64 |
312.970 |
|
|
|
|
Interest |
10.230 |
9.880 |
9.780 |
|
|
|
Profit on sale of investment |
0.000 |
94.400 |
3.440 |
|
|
|
Share of Profit on |
0.000 |
97.920 |
0.000 |
|
|
|
Other Income |
131.260 |
149.970 |
0.000 |
|
|
TOTAL EARNINGS |
6326.330 |
4552.000 |
6299.450 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1241.020 |
612.690 |
1373.390 |
|
|
|
Capital Goods |
37.120 |
185.550 |
129.080 |
|
|
|
Others |
11.560 |
6.450 |
225.860 |
|
|
TOTAL IMPORTS |
1289.700 |
804.690 |
1728.330 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
20.30 |
15.69 |
25.46 |
|
QUARTERLY RESULTS
|
PARTICULARS |
31.03.2012 |
|
|
1st Quarter |
|
Net Sales |
1242.540 |
|
Total Expenditure |
1153.920 |
|
PBIDT (Excl OI) |
88.620 |
|
Other Income |
90.290 |
|
Operating Profit |
178.910 |
|
Interest |
90.060 |
|
Exceptional Items |
(326.220) |
|
PBDT |
(237.370) |
|
Depreciation |
44.180 |
|
Profit Before Tax |
(281.550) |
|
Tax |
0.000 |
|
Provisions and contingencies |
0.000 |
|
Profit After Tax |
(281.550) |
|
Extraordinary Items |
0.000 |
|
Prior Period Expenses |
0.000 |
|
Other Adjustments |
0.000 |
|
Net Profit |
(281.550) |
KEY RATIOS
|
PARTICULARS |
|
31.12.2011 |
31.12.2010 |
31.12.2009 |
|
PAT / Total Income |
(%) |
15.39
|
13.12 |
13.48 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
17.61
|
17.65 |
15.15 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
4.98
|
4.21 |
11.41 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.09
|
0.06 |
0.13 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.45
|
1.15 |
1.75 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.16
|
4.88 |
1.78 |
LOCAL AGENCY FURTHER INFORMATION
|
Check List by Info Agents |
Available in Report (Yes / No) |
|
1. Year of Establishment |
Yes |
|
2. Locality of the firm |
Yes |
|
3. Constructions of the firm |
Yes |
|
4. Premises details |
No |
|
5. Type of Business |
Yes |
|
6. Line of Business |
Yes |
|
7. Promoter’s background |
No |
|
8. No. of Employees |
Yes |
|
9. Name of person contacted |
No |
|
10. Designation of contact person |
No |
|
11. Turnover of firm for last three years |
Yes |
|
12. Profitability for last three years |
Yes |
|
13. Reasons for variation <> 20% |
------ |
|
14. Estimation for coming financial year |
No |
|
15. Capital in the business |
Yes |
|
16. Details of sister concerns |
Yes |
|
17. Major suppliers |
No |
|
18. Major customers |
No |
|
19. Payments terms |
No |
|
20. Export / Import details |
Yes |
|
21. Market information |
------ |
|
22. Litigations that the firm / promoter involved |
------ |
|
23. Banking Details |
Yes |
|
24. Banking facility details |
Yes |
|
25. Conduct of the banking account |
------ |
|
26. Buyer visit details |
------ |
|
27. Financials, if provided |
Yes |
|
28. Incorporation details, if applicable |
Yes |
|
29. Last accounts filed at ROC |
Yes |
|
30. Major Shareholders, if available |
No |
TURNOVER AND
PROFITS
On a standalone basis
the total income during the year stood at Rs. 7,662.47 Million as against Rs.
5,607.64 Million in the previous year. The standalone net profit is Rs.
1,179.21 Million as against a net profit of Rs. 735.62 Million for the previous
year.
BUSINESS OVERVIEW
2011 was eventful
for Strides due to strengthened business performance, multiple product and
plant approvals and proactive business consolidation.
Strides had
adopted a well-coordinated strategy to restructure the organisation into Pharma
and Specialties business divisions.
2011 witnessed
dynamic operations, delivery in terms of enhanced revenue share and growing
focus on value-driven products and approvals.
KEY BUSINESS
HIGHLIGHTS FOR 2011 :
SPECIALTIES
(AGILA)
·
Agila represents 40% of the group revenue and 52%
of the group EBITDA.
·
Performance boosted by new product launches during
the year. Key execution strategies includes optimum capacity utilisation
focusing on lyophilized, liquid vials, penems and oncology; and the supplychain
focus shift to enhanced forecastable business.
·
US Joint Venture with Sagent consolidated its
position in market place gaining significantly on market share and new product
launches.
·
First year of consolidation of Brazilian
operations. One-time loss in front-ended business in Brazil was considered in
performance.
·
Continuous US FDA compliance for facilities. 2 new
facilities in Bangalore, India received approvals during the year. The
Brazilian Sterile Penems Facility received US FDA approval in February 2012.
REGULATORY FILINGS
·
29 ANDAs filed during the year. Cumulative ANDA
filings in the US stands at 144. 25 new ANDAs approved during the year taking
the cumulative US approvals tally to 62;
·
76 new product filings completed in other
established markets like EU, Canada, Korea, South Africa and Australia and New
Zealand; and received approval for 43 products during the year.
·
Cumulative filings and approvals stands at 314 and
160 respectively.
PHARMA
·
Pharma business represents 60% of the group revenue
and 48% of the group EBITDA.
·
Key execution strategies include strong focus on
operational execution, plant upgradation/ expansion and strong R&D program
in niche areas of soft gels and immunosuppressant’s.
·
Successful regulatory audits of US FDA, UK MHRA and
WHO.
·
IP products and ATM business post source change,
contributed to the growth of India manufacturing business.
·
Australasia delivered solid growth. Revenue and
EBITDA growth at 44% and 38% respectively over 2010.
·
Stable business in Africa despite political turmoil
and civil unrest.
·
India brands grew by 20% over 2010. “Renerve” brand
at Rs. 340.000 Millions, grown by 45%.
PFIZER PARTNERSHIP
·
Licensing agreements expanded to Emerging Markets
with additional sterile injectables and oncolytic Products
·
Portfolio maximisation in established markets
completed.
MANAGEMENT DISCUSSION AND ANALYSIS
GLOBAL ECONOMIC
SCENARIO
In 2011, countries
across the globe witnessed economic turbulence. The US witnessed spiralling debt
and unemployment issues, spreading Euro zone crisis, Middle East facing
political turmoil hampering the global crude oil supply. Moreover, Asia too had
its own challenges. Too often since the 2008 financial crisis, expectations for
strong and lasting growth have been dashed by unpredictable factors, such as
soaring oil prices and other geo-political factors.
There are now
encouraging signs of moderate global growth: global economy bumping along with
the US on its way to leading the pack; Euro economies in recession but not for
long; inflation worries are less acute and central banks are safeguarding their
economies against sluggish growth; and interest rates are expected to stay low
in 2012 and moderately higher in 2013.
IMF forecasts the
global economic growth to be around 3.3% in 2012, powered by emerging markets.
The advanced markets are likely to witness 1.9% growth in 2012 from 1.6% in
2011, while the emerging markets are anticipated to grow at 5.4% in 2012
against 6.1% in 2011
GLOBAL PHARMACEUTICAL
INDUSTRY
The global
pharmaceutical industry is anticipated to grow at 5-7% to USD 880 Billion in
2011. The transformation of the global pharma persistently continues; the focus
shifting from the regulated markets to emerging economies.
Despite major
constraints, the global pharmaceutical market is expected to grow at 5-8% CAGR
to reach USD 1.1 Trillion by 2014. The growth would be fuelled by the changing
mix of innovative and mature products and rising healthcare access in emerging
markets on one hand and pricing pressures by regulators on the other.
INNOVATOR MARKET
The spending on
innovative drugs is expected to remain flat at 2010 level till 2015. Since all
the increase in spending on innovative products will be offset by patent
expiries which will result in reduction of brand spending by USD 120 Billion by
2015. The protected brands are projected to grow at about 7-8%, 3-4% of which
would be contributed from price growth. The volume growth on branded products
will be much lower over the next five years 2011-15 as compared to the period
2006-10. The major challenges for the innovative drug markets include FDA
approval hurdles, patent exclusivity risk, weak pipelines, government payer and
reimbursement pressure.
GENERIC MARKET
The global market
for generics is expected to experience robust growth in the coming years, due
to patent expiries of blockbuster drugs. The IMS Institute for Healthcare
Informatics points to a likely decline in brands, as greater than USD 170
Billion worth of patents are set to expire in developed markets in the next
five years. Cost containment strategies implemented by government, credit shift
towards cheaper generics, ageing population and chronic diseases are
anticipated to boost the generic markets.
GLOBAL PHARMACEUTICAL
MARKET OVERVIEW
REGULATED MARKET,
USA
USA, the largest
pharmaceutical market globally, is estimated to have grown around 3% to 5% in
2011. IMS suggests that USA’s share in global spending is expected to decline
from 41% in 2005 to 31% in 2015.
The year 2012
marks the entry into peak waves of patent expiry, with brands worth USD 40
Billion losing patent expiration. Several blockbuster drugs are set to expire
this year. The major beneficiaries are expected to be the generic companies. It
is expected that most generic companies in USA would clock 30-50% growth in
FY2013.
JAPAN
Japan is the
second largest pharmaceutical market and accounts for 11.7% in the global
pharma market. In 2011, the market is expected to have registered 5.7% growth.
The Japanese pharma market is expected to grow at a low single digit CAGR. The
recent Tsunami has impacted production, leading to drug shortages and expiry of
many patents in 2011-12. The overall industry is anticipated to grow at a CAGR
of 2.6% from 2011-2016.
EUROPE
The European
pharmaceutical market is the one largest pharma market following North America
and Japan. The five major European markets are poised to grow around 1-3%. The
Central and Eastern pharmaceutical market is expected to have registered growth
of USD 63.6 Billion at retail prices, and is likely to reach market value of
USD 104.2 Billion by 2016. The markets are anticipated to expand at moderate
CAGR as the region is facing economic distress. Generics have retained a
favourable position, as they are affordable and favoured by the government. The
Northern European countries are projected to reach a market value of over USD
26 Billion by 2016. The leading markets in Europe are poised to grow at an
average CAGR of 2.5% up to USD 220 Billion by 2016.
EMERGING
PHARMACEUTICAL MARKETS
The robust growth
in the emerging pharmaceuticals market has outpaced growth of developed
markets. The emerging markets are being driven by rapid growth in the economies
of these countries, increasing per capita income, growing prevalence of
lifestyle diseases due to rapid urbanisation and low-cost factors. This shift
from developed global powers (US, UK and Japan) to emerging economies (China,
India, Brazil, and Russia) would create new growth dynamics.
·
The 17 pharmerging countries* are expected to
contribute 28% to global market spending by 2015.
·
The pharmerging countries are anticipated to
contribute 48% to the annual market growth in 2013, up from 37% from last year.
·
The E7** countries pharmaceutical market value was
estimated at around USD 136 Billion and the markets are expected to surpass USD
230 Billion by 2014 end.
* China, Brazil,
India, Venezuela, Poland, Argentina, Turkey, Mexico, Vietnam, South Africa,
Thailand, Indonesia, Romania, Egypt, Pakistan, Ukraine and Russia.
** Brazil, Russia,
China, India, Turkey, Mexico and Indonesia
LIST OF
PHARMERGING COUNTRIES
CHINA
China’s
pharmaceutical industry has been growing at a rapid pace and has attained the
4th position in the global pharma market in terms of size. The pharmaceutical
market in China is poised to grow at the rate of 19%-22%, between 2010-2015
(Source: IMS Health). The growth is fuelled by a vast pool of talent, low-cost
manufacturing capabilities, and huge market potential, and as a consequence has
attracted several global drug giants to outsource their R and D and invest in
China. The over- the counter (OTC) market segment in Chinese pharma markets are
set to double by 2014.
LATAM
The Latin America’s
pharmaceutical market is currently worth USD 45 Billion. Despite cost-curtail
measures, the country’s pharma sector’s growth would be fuelled by strong
growth in production, sales, exports and employment. According to IMS Health,
LATAM is expected to grow to USD 51.3 Billion by 2014. In general Latin America
has shown growth trend of approximately 12-16% in terms of revenue.
Brazil leads the
LATAM pharmaceutical markets, reporting average gross revenues of USD12 Billion
annually. As per IMS Health, Brazil is expected to have registered 10% growth,
with revenues of about USD 25.6 Billion in 2011. By 2015, it is expected to
reach market value of USD 32.8 Billion. Mexico, the second largest pharma
market of the region, is projected to grow at 11.7% between 2009 and 2014 to
reach market value of USD 14.9 Billion as per Business Monitor International
(BMI).
INDIA
India’s
pharmaceutical industry ranks 10th in terms of value and 3rd in terms of
volume. The domestic pharma market is expected to touch USD 21.7 Billion in
2011.
Indian
Pharmaceutical sector would evolve across:
·
USA patent expiries
·
Secular domestic growth
·
Participation in other emerging markets
·
R and D and outsourcing
GLOBAL APPROACH
WITH INDIAN PHARMA
India’s pharmaceutical
market is highly fragmented with 300 large and 18,000 mid-sized and small
companies. The last two years have witnessed a surge of multiple global giants
in India, setting up offices and R and D centres, offering patented products at
a special India price, building a portfolio of branded generics and expanding
their rural reach.
INDIAN PHARMA
EXPORTS SCENARIO
India’s
pharmaceutical companies are exporting to around 220 countries across the
globe. Currently, the U.S is the major market and accounts for 22% of the
sector’s exports, while Africa accounts for 16% and the Commonwealth of
Independent States (CIS) places around 8% of orders.
The Ministry of
Commerce has proposed an ambitious Strategy Plan to double pharmaceutical
exports from USD 10.4 Billion in 2009-10 to USD 25 Billion by 2013-14. The
Government has also planned a ‘Pharma India’ brand promotion action plan
spanning over a three-year period to give an impetus to generic exports. India
has world renowned capacity in producing low cost, high quality bulk and
generic drugs.
STRIDES ARCOLAB
LIMITED
Strides is a
global pharmaceutical company headquartered in Bangalore, India, that develops
and manufactures a wide range of IP-led niche pharmaceutical products with an
emphasis on sterile injectables. It has collaborations with five of the top 10
global pharmaceutical players and a presence in over 75 countries. Strides has
reorganised its business into two divisions: Specialty (Agila) and
Pharmaceuticals.
DIVISIONAL REVIEW SPECIALTY (AGILA)
OVERVIEW
Strides branded its Specialty division in 2010 as ‘Agila’ to focus on
Specialty business.
KEY HIGHLIGHTS,
2011
·
Continuous US FDA approvals – for two new
facilities in Bangalore
·
Performance enhanced by new products launches
·
Performance boosted by new product launches during
the year: Pfizer - 8 (20 SKUs); USA, Sagent – 5 (8 SKU’s), USA; Aspen - 6 ( 8
SKUs ), Australia and Venezuela; and GSK in 7 emerging markets
PHARMACEUTICALS
OVERVIEW
Strides pharma business is led by IP-driven licensing agreements and
partnerships globally.
KEY HIGHLIGHTS, 2011
·
Successful regulatory audits - US FDA, UK MHRA and
WHO
·
Strong focus on operational execution
·
Plant upgradation, expansion completed
·
Strengthened leadership in supply chain
·
Focus on value creation through strong R and D
program in niche areas of soft gels and Immunosuppressant’s
CONTINGENT LIABILITIES
·
As at December 31, 2011, the Company has given
corporate guarantees upto Rs. 4,572.94 Million (Previous year Rs. 3,516.27 Million)
to financial institutions and other parties, on behalf of its subsidiaries. At
December 31, 2011, the subsidiaries had availed facilities from such financial
institutions / were obligated to the parties referred above for an aggregate
amount of Rs. 3,672.54 Million (Previous year Rs. 3,143.66 Million). The
Company’s fixed assets (paripassu second charge) and certain investments in the
respective subsidiaries have been offered as security in respect of some of
these facilities.
·
As at December 31, 2011, the Company has disputed
tax liabilities arising from assessment proceedings relating to earlier years
from the income tax authorities amounting to Rs. 741.27 Million (Previous year
Rs. Nil)
·
The Company preferred appeal with the CESTAT
against the order of the Commissioner of Central Excise for disallowing
transfer of CENVAT credit of Rs. 3.86 Million (Previous year Rs. 3.86 Million)
as on the date of conversion of one of the units of the Company into a 100%
EOU.
FIXED ASSETS
·
·
Leased
·
Buildings
·
Furniture and Fixtures
·
Office Equipment and Computers
·
Plant and Machinery
·
Motor Vehicles
·
Registration and Brands
·
Software Licences
PRESS RELEASE
STRIDES REDEEMS FCCBS DUE 2012 NET DEBT / EQUITY AT
0.75
Wednesday, June
27, 2012
Strides Arcolab
today announced that the Company has redeemed the outstanding USD 80 Million
FCCBs on due date. The Company had originally raised USD 100 Million FCCBs in
the year 2007 and had bought back USD 20 Million during the year 2009. The
total payout for redeeming the outstanding bonds was USD 116 Million including
the redemption premium of 45.058%.
Post this
redemption, there are no outstanding FCCBs. The company utilized its cash
balance to fund the redemption.
The Company’s net
debt equity ratio is estimated at 0.75 after this redemption as against 1.67
for the year ended December 31, 2011.
Dr. T.S. Rangan,
Group CFO said “The Company diligently planned the redemption thereby achieving
substantial deleveraging of its balance sheet. We take this opportunity to
thank the bond holders for their participation in our growth story.”
About Strides
Arcolab
Strides Arcolab,
listed on the Bombay Stock Exchange Limited (532531) and National Stock
Exchange of India Limited (STAR), is a global pharmaceutical company
headquartered in Bangalore, India, that develops and manufactures a wide range
of IP-led niche pharmaceutical products with an emphasis on sterile
injectables.
The company has 14
manufacturing facilities across 6 countries with presence in more than 75
countries in developed and emerging markets. Manufacturing is ably supported by
a 350- scientist strong global R&D Centre located in Bangalore.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 55.36 |
|
|
1 |
Rs. 85.94 |
|
Euro |
1 |
Rs. 67.87 |
INFORMATION DETAILS
|
Information
Gathered by : |
-- |
|
|
|
|
Report Prepared
by : |
DPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
57 |
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.