MIRA
INFORM REPORT
|
Report Date : |
18.01.2013 |
IDENTIFICATION DETAILS
|
Name : |
ALEMBIC PHARMACEUTICALS LIMITED (w.e.f. 12.03.2011) |
|
|
|
|
Formerly Known
As : |
ALEMBIC PHARMA LIMITED |
|
|
|
|
Registered
Office : |
Alembic Road, Vadodara-390002, Gujarat |
|
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|
Country : |
|
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|
Financials (as
on) : |
31.03.2012 |
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|
|
|
Date of
Incorporation : |
16.06.2010 |
|
|
|
|
Com. Reg. No.: |
061123 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.377.032 Millions
|
|
|
|
|
CIN No.: [Company Identification
No.] |
U24230GJ2010PLC061123 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
BRDA03515B |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAICA5591M |
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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
: |
Manufacturer of Pharmaceuticals Products and Formulations. |
|
|
|
|
No. of Employees
: |
4600 [Approximately] |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (55) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 14400000 |
|
|
|
|
Status : |
Good |
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|
|
|
Payment Behaviour : |
Regular |
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|
|
|
Litigation : |
Clear |
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|
Comments : |
Subject is a well established and reputed company having a good track record.
The operations of the company are carried out efficiently. The pharmaceutical undertaking of the ‘Alembic Limited’ has been
demerged and the same is transferred to the company with effect from 1st
April 2010. Financial position of the company appears to be sound and healthy.
Directors are reported as well experienced and knowledgeable businessmen. Trade relations are reported as trustworthy. Business is active.
Payment terms are reported as regular and as per commitments. The company can be considered good 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 – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces of
its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country's growth, which has averaged more than 7% per
year since 1997. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries,
and a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India's output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to become
a major exporter of information technology services and software workers. In
2010, the Indian economy rebounded robustly from the global financial crisis -
in large part because of strong domestic demand - and growth exceeded 8%
year-on-year in real terms. However, India's economic growth in 2011 slowed
because of persistently high inflation and interest rates and little progress
on economic reforms. High international crude prices have exacerbated the
government's fuel subsidy expenditures contributing to a higher fiscal deficit,
and a worsening current account deficit. Little economic reform took place in
2011 largely due to corruption scandals that have slowed legislative work.
India's medium-term growth outlook is positive due to a young population and
corresponding low dependency ratio, healthy savings and investment rates, and
increasing integration into the global economy. India has many long-term
challenges that it has not yet fully addressed, including widespread poverty,
inadequate physical and social infrastructure, limited non-agricultural
employment opportunities, scarce access to quality basic and higher education,
and accommodating rural-to-urban migration.
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
AA – [Long Term] |
|
Rating Explanation |
High degree of safety and lowest credit risk. |
|
Date |
06.03.2012 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION PARTED BY
|
Name : |
Mr. R R Akberi |
|
Designation : |
Finance Manager |
|
Contact No.: |
91-265-3053333 |
LOCATIONS
|
Registered Office : |
Alembic Road, Vadodara-390002, Gujarat, India |
|
Tel. No.: |
91-265-2280550/2280880 |
|
Fax No.: |
91-265-2281508/2284728 |
|
E-Mail : |
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|
Website : |
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|
|
|
|
Marketing Office: |
2nd Floor , Prime
Corporate Park, Behind ITC Grand Maratha Sheraton, Sahar Road, Andheri (E),
Mumbai - 400099, Maharashtra, India |
|
Tel. No.: |
91 22 30611698 |
|
Fax No.: |
91 22 30611682 |
|
|
|
|
Factory 1 : |
Plot No.21/22, EPIP-Phase-I, Jhamajri, Baddi, Tehsil – Nalagarh, Solan
– 173205, Himachal Pradesh, India |
|
|
|
|
Factory 2 : |
Village Karakhadi, Taluka Padra, District Vadodara, Gujarat, India |
DIRECTORS
AS ON 31.03.2012
|
Name : |
Mr. Chirayu Ramanbhai Amin |
|
Designation : |
Director |
|
Address : |
F 10/195, Race Course Circle, Gorti Road, Vadodara – 390007, Gujarat,
India |
|
Date of Birth/Age : |
04.12.1946 |
|
|
|
|
Name : |
Mr. Krishnapuram Ramanathan |
|
Designation : |
Director |
|
Address : |
Srinidhi Bunglow, No. 1, Octroi Naka, Gorti Road, Vadodara – 390007,
Gujarat, India |
|
Date of Birth/Age : |
15.05.1939 |
|
|
|
|
Name : |
Mr. Rajkumar Shreeram Baheti |
|
Designation : |
Director |
|
Address : |
Flat No.402, Samprat Residency, 52, Alkapuri Society, Alkapuri,
Vadodara – 390007, Gujarat, India |
|
Date of Birth/Age : |
24.10.1959 |
|
|
|
|
Name : |
Mr. Pranav Natverlal Parikh |
|
Designation : |
Director |
|
Address : |
18 A, Manek, LD Ruparel Marg, Malbar hill, Mumbai – 400006,
Maharashtra, India |
|
Date of Birth/Age : |
18.02.1943 |
|
|
|
|
Name : |
Mr. Paresh Saraiya |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Pranav N. Parikh |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Milin Mehta |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Rajkumar Shreeram Baheti |
|
Designation : |
President – Finance and Company Secretary |
|
|
|
|
Name : |
Mr. R R Akberi |
|
Designation : |
Finance Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2012
|
Category of Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
13402430 |
7.11 |
|
|
126336190 |
67.02 |
|
|
139738620 |
74.13 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
139738620 |
74.13 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
114650 |
0.06 |
|
|
957105 |
0.51 |
|
|
13554200 |
7.19 |
|
|
3600 |
0.00 |
|
|
750 |
0.00 |
|
|
2850 |
0.00 |
|
|
14629555 |
7.76 |
|
|
|
|
|
|
3621896 |
1.92 |
|
|
|
|
|
|
24817136 |
13.16 |
|
|
4616619 |
2.45 |
|
|
1092088 |
0.58 |
|
|
327473 |
0.17 |
|
|
38605 |
0.02 |
|
|
726010 |
0.39 |
|
|
34147739 |
18.11 |
|
Total Public shareholding (B) |
48777294 |
25.87 |
|
Total (A)+(B) |
188515914 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
188515914 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Pharmaceuticals Products and Formulations. |
PRODUCTION STATUS [AS ON 31.03.2011]
|
Particulars |
Unit |
Installed
Capacity |
*Actual
Production |
|
Bulk Drugs and Chemical and Intermediates |
MMU/MT |
# |
673.454 |
|
Formulations: |
|
|
|
|
Tablets and Capsules |
Million Nos. |
4653.000 |
3343.895 |
|
Injectables |
Million Nos. |
-*** |
84.747 |
|
Oral Preparation and Ointments |
MT |
10182.616 |
9272.980 |
NOTE:
* Including
production on loan licence basis, captive consumption, samples and purchases of
finished products.
# Installed
Capacity: The Installed capacity is flexible as the plant is versatile;
enabling the Company to produce in different capacity and therefore, it varies
depending upon the product programme.
*** Entire production is on loan license basis.
GENERAL INFORMATION
|
No. of Employees : |
4600 [Approximately] |
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|
Bankers : |
·
Axis Bank Limited ·
Bank of Baroda ·
HDFC Bank Limited ·
IDBI Bank Limited ·
Standard Chartered Bank ·
The Royal Bank of Scotland N.V. |
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Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
K.S. Aiyar and Company Chartered Accountants |
|
Address : |
Laxmi Estate No. F-07/08, Shakti Mills Lane, Off Dr. E. Moses Road,
Mahalaxmi, Mumbai-400011, Maharashtra, India |
|
|
|
|
Subsidiaries : |
·
Alembic Limited ·
Sierra Healthcare Limited ·
Nirayu Pvt. Limited ·
Quick Flight Limited ·
Shreno Limited ·
Paushak Limited ·
Alembic Export Limited ·
Viramya Packlight Limited ·
Incozen Therapeutics Private Limited ·
Rhizen Pharmaceuticals SA ·
Sierra Investments Limited ·
Whitefield Chemtech Private Limited |
|
|
|
|
Fellow Subsidiary : |
Alembic Global Holding SA. |
CAPITAL STRUCTURE
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
200000000 |
Equity Shares |
Rs.2/- each |
Rs.400.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
188515914 |
Equity Shares |
Rs.2/- each |
Rs.377.032
Millions |
NOTES:
Reconciliation of the number of shares outstanding at the beginning and
at the end of the reporting period
|
|
As on 31.03.2012 |
|
|
|
No. of Shares |
Rs. in Millions |
|
At the beginning of the period |
55000000 |
110.000 |
|
Issued during the period |
133515914 |
267.032 |
|
Share Suspense Account |
-- |
-- |
|
Outstanding at the end of the period |
188515914 |
377.032 |
The rights,
preferences and restrictions including restrictions on the distribution of
dividends and the repayment of capital
The company is having
only one class of shares i.e. Equity carrying a nominal value of Rs. 2/- per
share Every holder of the equity share of the Company is entitled to one vote
per share held In the event of liquidation of the Company, the equity
shareholders will be entitled to receive remaining assets of the Company after
the distribution / repayment of all creditors. The distribution to the equity
shareholders will be in proportion of the number of shares held by each
shareholder The Company declares and pays dividend on the equity shares in
Indian Rupees. Dividend proposed by the Board of Directors is subject to
approval of the shareholders at the ensuing Annual General Meeting During the
year ended 31st March, 2012 an amount of Rs. 1.40 of dividend per equity share was
proposed for the equity shareholders ( P.Y Rs. 1/- per equity share)
Shares in the
company held by each shareholder holding more than 5 percent shares specifying
the number of shares held
|
|
As on 31.03.2012 |
|
|
|
No. of Shares |
% of Held |
|
Alembic Limited |
55000000 |
29.18% |
|
Shreno Limited |
18368780 |
9.74% |
|
Sierra Investments Limited |
17167670 |
9.11% |
|
Whitefield Chemtech Limited |
18285230 |
9.70% |
|
Nirayu Private Limited |
16213755 |
8.60% |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2012 |
31.03.2011 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
377.032 |
377.032 |
|
|
2] Share Application Money |
|
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
|
3231.592 |
2385.064 |
|
|
4] (Accumulated Losses) |
|
0.000 |
0.000 |
|
|
NETWORTH |
|
3608.624 |
2762.096 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
998.852 |
1421.803 |
|
|
2] Unsecured Loans |
|
1344.292 |
1325.802 |
|
|
TOTAL BORROWING |
|
2343.144 |
2747.605 |
|
|
DEFERRED TAX LIABILITIES |
|
95.290 |
53.746 |
|
|
|
|
|
|
|
|
TOTAL |
|
6047.058 |
5563.447 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
2678.186 |
2719.854 |
|
|
Capital work-in-progress |
|
582.397 |
265.030 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
33.541 |
33.542 |
|
|
DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
2587.415 |
2192.319 |
|
|
Sundry Debtors |
|
1868.328 |
2019.739 |
|
|
Cash & Bank Balances |
|
257.247 |
12.880 |
|
|
Other Current Assets |
|
0.000 |
0.000 |
|
|
Loans & Advances |
|
1898.388 |
915.147 |
|
Total
Current Assets |
|
6611.378 |
5140.085 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
1819.275 |
1317.541 |
|
|
Other Current Liabilities |
|
1628.631 |
967.422 |
|
|
Provisions |
|
410.538 |
310.101 |
|
Total
Current Liabilities |
|
3858.444 |
2595.064 |
|
|
Net Current Assets |
|
2752.934 |
2545.021 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
6047.058 |
5563.447 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
|
13752.843 |
11649.258 |
|
|
|
Other Income |
|
4.407 |
0.833 |
|
|
|
TOTAL (A) |
|
13757.250 |
11650.091 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
|
5282.375 |
4349.443 |
|
|
|
Purchase of Finished Goods |
|
1677.929 |
1285.731 |
|
|
|
Employee Benefit Expenses |
|
1684.582 |
1492.143 |
|
|
|
Research and Development Expenses |
|
585.822 |
471.318 |
|
|
|
Other Expenses |
|
3070.835 |
2540.573 |
|
|
|
Changes in inventories of Finished Goods and Work in process |
|
(644.398) |
(47.219) |
|
|
|
TOTAL (B) |
|
11657.145 |
10091.989 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
|
2100.105 |
1558.102 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
|
262.134 |
238.887 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
|
1837.971 |
1319.215 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
|
336.458 |
295.883 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
|
1501.513 |
1023.332 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
|
296.162 |
208.261 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
|
1205.351 |
815.071 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
|
216.800 |
0.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
|
500.000 |
300.000 |
|
|
|
Provision For Dividend Equity Shares |
|
263.900 |
188.500 |
|
|
|
Provision For Corporate Dividend Tax |
|
42.800 |
30.500 |
|
|
|
Debenture Redemption Reserves |
|
79.200 |
79.200 |
|
|
BALANCE CARRIED
TO THE B/S |
|
536.251 |
216.871 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
|
4679.560 |
3604.849 |
|
|
|
Royalty |
|
116.044 |
4.738 |
|
|
TOTAL EARNINGS |
|
4795.604 |
3609.587 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
|
1863.148 |
1788.218 |
|
|
|
Packing Material , Components and Spare parts |
|
21.803 |
43.514 |
|
|
TOTAL IMPORTS |
|
1884.951 |
1831.732 |
|
|
|
|
|
|
|
|
|
|
Earnings / (Loss)
Per Share (Rs.) |
|
6.39 |
4.32 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2012 |
30.09.2012 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
3394.100 |
4068.500 |
|
Total Expenditure |
|
2911.300 |
3433.000 |
|
PBIDT (Excl OI) |
|
482.800 |
635.500 |
|
Other Income |
|
2.200 |
2.200 |
|
Operating Profit |
|
485.000 |
637.700 |
|
Interest |
|
57.400 |
31.200 |
|
PBDT |
|
427.600 |
606.500 |
|
Depreciation |
|
86.600 |
88.200 |
|
Profit Before Tax |
|
341.000 |
518.300 |
|
Tax |
|
68.200 |
103.600 |
|
Profit After Tax |
|
272.800 |
414.700 |
|
Net Profit |
|
272.800 |
414.700 |
KEY RATIOS
|
PARTICULARS |
|
|
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
|
8.76 |
7.00 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
|
10.92 |
8.78 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
|
16.16 |
13.02 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
|
0.42 |
0.37 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
|
1.72 |
1.93 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
|
1.71 |
1.98 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by
Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
Yes |
|
10] |
Designation of contact person |
Yes |
|
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 (if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm / promoter involved in |
-- |
|
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 |
|
31] |
PAN of Proprietor/Partner/Director, if available |
No |
|
32] |
Date
of Birth of Proprietor/Partner/Director, if available |
Yes |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
OPERATIONS:
The Company’s
Standalone revenue from operations were Rs. 13752.800 Millions for the year ended
31st March, 2012 as compared to Rs. 11649.300 Millions for the previous year.
The standalone Profit before Interest, Depreciation and Taxes was Rs. 2100.100
Millions for the year as compared to Rs. 1558.100 Millions for the previous
year. During the year, the interest and financing cost was Rs. 262.100 Millions
as compared to Rs. 238.900 Millions in previous year. The Company has
registered consolidated revenue from operations of Rs. 14663.900 Millions for
the year as compared to Rs. 12020.500 Millions for the previous year.
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT:
INDUSTRY
PERSPECTIVE VIS-Ŕ-VIS COMPANY:
The Indian
Pharmaceutical Industry is currently valued at $20 billion and stands 13th in
terms of value. Globally adjudged as the third largest in terms of volume, the
sector is remarkably growing at 14% per year. The growth of the sector has been
fuelled by exporting life-saving drugs to developing countries and supplying
quality drugs to the developed nations at affordable prices. India is also emerging
as a world leader in generic pharmaceuticals production, supplying 20% of the
global market for generic medicines.
The year 2011-12
saw a lot of action and initiatives for the pharmaceutical industry from the
Government. The Department of Pharmaceuticals had devised a draft National
Pharmaceutical Pricing Policy, 2011 (NPPP- 2011) based on the criteria of
essentiality and requirements as stipulated by the Ministry of Health and
Family Welfare and had circulated the same among the concerned Ministries/
Stakeholders. The draft Policy envisages bringing the National List of
Essential Medicines (NLEM) – 2011 and associated medicines under price control.
The views/inputs received on the draft NPPP-2011 are being examined by the
Ministry.
The recent takeovers
of Indian companies by MNCs could increase the possibility of other takeovers
of Indian companies which would have impact on the Indian health care scenario
as well as on pricing and availability of medicines in India. The Department of
Pharmaceuticals had requested the Department of Commerce to conduct a study on
the recent takeovers of Indian Companies by the MNCs. Department of Commerce
has entrusted the task of this study to M/s Ernst and Young. Thereafter, the
recommendation could be placed before the Economic Advisory Council to the
Prime Minister and/or the Competent Authority.
The policy of
Foreign Direct Investment (FDI) in existing Indian Pharmaceutical Companies has
also come in for public comments especially on the issue of takeover of existing
Indian Pharmaceutical companies by multinational companies. With a view to
examine the issues involved in a broader perspectives, Planning Commission has
with the approval of the Prime Minister constituted a High Level Committee
(HLC) under the Chairpersonship of Shri Arun Maira, Member (Industry), Planning
Commission to consider all the relevant aspects.
The Planning
Commission in their document- “Faster, Sustainable and More Inclusive Growth:
An Approach to the 12th Five Year Plan”, aims at raising the total public
health expenditure to 2.5% of GDP by the end of the Twelfth Plan. The
Government has taken several steps to increase public health expenditure. As
per Economic Survey 2011-12, the health expenditure by General Government
(Central and State Government combined) as percentage of the GDP is 1.30 in
2011-12.
This year, India
also touched a milestone of being polio free for one whole year. There is a
need to ensure that there is no case of polio infection for the next three
consecutive years for India to celebrate eradication of poliomyelitis. As per
information furnished by Medical Council of India (MCI), the total number of
doctors registered (allopathic) in the country till 31st July, 2011, is
8,56,065 out of which approximately six lac are presently active practitioners.
The current doctor-population ratio has been worked out to be approximately
1:2000. A large number of steps have been taken to address shortage of doctors,
specialists and faculty in the country.
The Government has
also launched the National Urban Health Mission to encompass the primary
healthcare needs of people in the urban areas.
DOMESTIC
FORMULATION BUSINESS:
The Domestic
formulations market, valued at Rs. 482000.000 Millions has grown steadily at
CAGR of 14-15% over the past five years. The strong growth has been driven by a
confluence of factors including – a) rising household income levels leading to
higher expenditure on healthcare, b) increasing prevalence of lifestyle related
diseases, c) improving healthcare infrastructure/delivery systems and d) rising
penetration in smaller towns and rural areas. As a result, majority of the
growth in the Indian market has been driven by expansion in volumes and new
product introductions as against prices increases.
The competitive
pressure in the domestic formulations market has been rising steadily for some
time now. While on one hand, this has been prompted by significant increase in
investments by other domestic players in marketing efforts through expansion in
field force, on the other hand, MNC have also renewed their focus on India.
The company
continues to make investment in the domestic branded business, particularly
with the newer specialty segments. Alembic continues to maintain its market
share owing to its strong distribution reach, strong field force and product
launches. Alembic’s domestic formulations business registered a growth of 13%
over the last year.
INTERNATIONAL
BUSINESS:
Subject export
formulation business to regulatory markets of US, Canada and Europe recorded a
stellar performance during the year to reach turnover of Rs. 2418.000 Millions
and registered 39% growth over last year. The Company has filed 7 Abbreviated
New Drug Applications (ANDAs) and 9 Drug Master Files (DMFs) and received
approvals for 19 ANDAs. The Company filed its first NDA application in
February, 2012.
Subject strategy
in International Generics is to partner with International Generic companies
and leverage on their marketing and sales capabilities. Alembic typically
shares the investment and return with the marketing partners and this helps
de-risk its ANDA programme and reduces the upfront investment in the
development stage. The Company has also had various opportunities of exploring
opportunities with other large MNC through their in-licensing deals both for
domestic as well as other emerging markets.
The Company has a
robust product basket with export sales of Rs. 567.000 Millions in 2011-12 in
semi regulated market as compared to Rs. 501.500 Millions in the previous year,
registering a growth of 13% over the previous year. The Company’s API export in
2011-12 was Rs. 2792.200 Millions as compared to Rs. 1799.000 Millions in the
previous year, registering a growth of 55% over the previous year.
FINANCE:
The Company has
registered standalone total revenue of Rs. 13757.300 Millions for the year as
compared to Rs. 11650.100 Millions in the previous year. The standalone Profit,
before providing for Interest, Depreciation and Taxes, was Rs. 2100.100
Millions for the year as compared to Rs. 1558.100 Millions in the previous
year. The Company has made a standalone Profit for the year of Rs. 1205.400
Millions for the year as compared to Rs. 815.100 Millions in the previous year.
The Company has
registered consolidated total revenue of Rs. 14668.300 Millions for the year as
compared to Rs. 12021.300 Millions in the previous year. The consolidated
Profit, before providing for Interest, Depreciation and Taxes, was Rs. 2208.500
Millions for the year as compared to Rs. 1603.200 Millions in the previous
year. The Company has made consolidated Profit for the year of Rs. 1301.300
Millions for the year as compared to Rs. 853.900 Millions in the previous year.
OUTLOOK:
With increase in GDP
and per capita income, more patients are able to afford organized healthcare.
This is very important and advantageous for a company like Alembic which has
strength in the acute therapy segments. Alembic has also started the
consolidation process for its product line in the lifestyle illness segment and
is registering decent growth.
The outlook for
the Pharmaceutical Industry remains favourable benefitting from healthy growth
in the domestic formulations business and steady growth expected in the U.S/Europe
generics space on back of patent expiries.
With several drugs
going off-patent and big pharma increasing exposure to cost efficient sourcing
locations, opportunities remain favourable for Companies like Alembic to
provide developmental services and subsequently graduate to commercial scale
production.
However, the key
challenges facing the industry are the potential implementation of the new
pricing policy in India, increasing competitive pressure in the chronic
segments, aggressive approach such as authorized generics by innovators in the
US and healthcare reforms in European markets.
With India
becoming a hub for manufacturing and research operations, Alembic looks to get
significant growth from this area as well. Our manufacturing facilities have passed
successful inspections from regulatory bodies from all over the world and
testimony to that is USFDA status being confirmed to both API and Solid Dosage
facilities. Our research labs are well equipped to develop new products and
formulations. Low cost of products and strong Intellectual Property are going
to be the two most important drivers in the International Generics Markets.
Timely and accelerated quality filling ANDAs / DMFs will be key to Alembic’s
success in these advanced markets. Alembic has strived to show excellence in
both these areas in development as well as manufacturing. It is a focused
approach on these two which will give Alembic’s Future plans a fillip.
FIXED ASSETS:
·
Freehold Land
·
Leasehold Land
·
Building
·
Employees Quarters
·
Plant and Equipments
·
R and D Equipments
·
Furniture and Fixtures
·
Vehicles
·
Office Equipments
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 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.54.64 |
|
|
1 |
Rs.87.45 |
|
Euro |
1 |
Rs.72.65 |
INFORMATION DETAILS
|
Report Prepared
by : |
TPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--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 |
|
55 |
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.