1. Summary Information
|
Country |
|
||
|
Company Name |
STRIDES ARCOLAB LIMITED |
Principal Name 1 |
Mr. Deepak Vaidya |
|
Status |
Good |
Principal Name 2 |
Mr. P M Thampi |
|
Registration # |
11-057062 |
||
|
Street Address |
201, Devavrata, Sector 17,
Vashi, Navi Mumbai – 400705, |
||
|
Established Date |
28.06.1990 |
SIC Code |
-- |
|
Telephone# |
91-22-27892924 |
Business Style 1 |
Manufacturing |
|
Fax # |
91-22-27892942 |
Business Style 2 |
Marketing |
|
Homepage |
Product Name 1 |
Bulk Drugs |
|
|
# of employees |
800 (Approximately) |
Product Name 2 |
Pharmaceuticals |
|
Paid up capital |
Rs.583,800,000/- |
Product Name 3 |
-- |
|
Shareholders |
Promoter
and Promoter Group – 27.51%, Public shareholding – 72.49% |
Banking |
HDFC Bank |
|
Public Limited Corp. |
Yes |
Business Period |
23 Years |
|
IPO |
Yes |
International Ins. |
-- |
|
Public |
Yes |
Rating |
Ba (54) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Joint
Ventures |
USA |
Akorn Strides
LLC |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.12.2011 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
20,809,350,000 |
Current Liabilities |
3,159,910,000 |
|
Inventories |
1,303,200,000 |
Long-term Liabilities |
14,398,010,000 |
|
Fixed Assets |
3,239,020,000 |
Other Liabilities |
2,149,650,000 |
|
Deferred Assets |
0,000 |
Total Liabilities |
19,707,570,000 |
|
Invest& other Assets |
7,948,100,000 |
Retained Earnings |
12,980,710,000 |
|
|
|
Net Worth |
13,592,100,0000 |
|
Total Assets |
33,299,670,000 |
Total Liab. & Equity |
33,299,670,000 |
|
Total Assets (Previous Year) |
30,191,820,000 |
|
|
|
P/L Statement as of |
31.12.2011 |
(Unit: Indian Rs.) |
|
|
Sales |
7,163,550,000 |
Net Profit |
1,179,210,000 |
|
Sales(Previous yr) |
5,046,380,000 |
Net Profit(Prev.yr) |
735,620,000 |
MIRA INFORM REPORT
|
Report Date : |
23.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
STRIDES ARCOLAB LIMITED |
|
|
|
|
Registered
Office : |
201, Devavrata, Sector 17,
Vashi, Navi Mumbai – 400705, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation
: |
28.06.1990 |
|
|
|
|
Com. Reg. No.: |
11-057062 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 583.800 millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24230MH1990PLC057062 |
|
|
|
|
TAN No.: [Tax Deduction & Collection
Account No.] |
MUMS36534B |
|
|
|
|
PAN No.: [Permanent Account No.] |
AADCS8104P |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares
are Listed on the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturing and marketing of all types of Bulk Drugs,
Pharmaceuticals, etc. |
|
|
|
|
No. of Employees
: |
800 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (54) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 54000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established and a reputed company having fine track
record. 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 – 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 |
FITCH |
|
Rating |
BBB+ (Long Term Rating) |
|
Rating Explanation |
The default risk is currently low. The capacity for payment of
financial commitment is considered adequate. |
|
Date |
October 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.
LOCATIONS
|
Registered Office : |
201, Devavrata, Sector 17,
Vashi, Navi Mumbai – 400705, |
|
Tel. No.: |
91-22-27892924 / 27893199 |
|
Fax No.: |
91-22-27892942 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
Strides House, Bilekahalli, |
|
Tel. No.: |
91-80-26581343/ 44/ 67580738/
39/ 67580000/ 66580751/ 66580000/ 66580600 |
|
Fax No.: |
91-80-26583538/ 4330/ 67580700/
800/ 66580800 |
|
E-Mail : |
|
|
|
|
|
GLOBAL PLANTS : |
|
|
Factory 1 : |
Sterile Products Division – I Bilekahalli, |
|
|
|
|
Factory 2 : |
Penicillins Facility Estrada Doutor
Lorival Martins Beda, 926 - 968 28110-000- Donana - Campos dos, Goytacazes-
Rio de Janeiro- Brazil |
|
|
|
|
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 |
|
|
|
|
Factory 4 : |
Strides Arcolab Polska Sp.Zo.o ul. Daniszewska
10 03-230 Warszawa NIP-813-34-15-000, Poland. |
|
|
|
|
Factory 5 : |
Oral Dosage Form Facility - III Plot No. 9-12,
Dewan and Sons Industrial Area, Veroor, Palghar, Dist. Thane 401 404,
Maharashtra, India. |
|
|
|
|
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 |
|
|
|
|
Factory 7 : |
Strides Vital Nigeria Limited Gate No. 02, |
|
|
|
|
Factory 8 : |
Beta-lactams
Facility Bilekahalli, |
|
|
|
|
Factory 9 : |
Beltapharm SpA 20095 Cusano
MIL. (MI) - Via Stelvio, 66 |
|
|
|
|
Factory 10 : |
Penems Facility Estrada Doutor
Lorival Martins Beda, 926 - 968 28110-000- Donana - |
|
|
|
|
Warehouse : |
Plot No. 62, Sector – 1, Nerul, Navi Mumbai – 400 706, |
|
|
|
|
Global
Offices : |
Located
at :
4, Angus Cresent, |
DIRECTORS
AS ON 31.12.2011
|
Name : |
Mr. Deepak Vaidya |
|
Designation : |
Chairman (Non-Executive) |
|
|
|
|
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 |
|
Designation : |
Executive Director (Executive and Promoter) |
|
Qualification |
B.Sc. (Part) |
|
Date
of Joining |
June, 1990 |
|
|
|
|
Name : |
Mr. Mukul Sarkar |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. P M Thampi |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Venkat S Iyer |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. M.R. Umarji |
|
Designation : |
Director (Non-Executive and Independent) |
|
|
|
|
Name : |
Mr. A.K. Nair |
|
Designation : |
Director (Non-Executive and Independent) |
KEY EXECUTIVES
|
Name : |
Mr. Arun Kumar |
|
Designation : |
Group Chief Executive
Officer |
|
|
|
|
Name : |
Mr. Venkat S Iyer |
|
Designation : |
Executive Director and Chief Executive
Officer - Agila |
|
|
|
|
Name : |
Mr. T. S. Rangan |
|
Designation : |
Group Chief Executive
Officer |
|
|
|
|
Name : |
Mr. Adam Levitt |
|
Designation : |
Chief Executive Officer Americas Operations |
|
|
|
|
Name : |
Dr. Anand Iyer |
|
Designation : |
Chief Executive Officer, Agila Biotech Division |
|
|
|
|
Name : |
Mr. D P Shrivastava |
|
Designation : |
Chief Executive Officer, Brazil
|
|
|
|
|
Name : |
Mr. Manish Gupta |
|
Designation : |
Chief Executive Officer - pharma |
|
|
|
|
Name : |
Mr. Subroto Banerjee |
|
Designation : |
President, Agila (India Region) |
|
|
|
|
Name : |
Mr. Sihue B Noronha |
|
Designation : |
Chief Executive Officer - Africa |
|
|
|
|
Name : |
Mr. Sridhar S Rao |
|
Designation : |
President, Quality Assurance |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2012
|
Category of
Shareholder |
No. of Shares |
% of No. of
Shares |
|
|
|
|
|
|
|
(1) Indian |
|
|
|
|
Individuals / Hindu Undivided Family |
3277326 |
5.57 |
|
|
|
12896876 |
21.93 |
|
|
|
16174202 |
27.51 |
|
|
(2) Foreign |
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
16174202 |
27.51 |
|
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
|
Mutual Funds / UTI |
4912617 |
8.35 |
|
|
Financial Institutions / Banks |
121125 |
0.21 |
|
|
|
2010303 |
3.42 |
|
|
|
21951939 |
37.33 |
|
|
Sub Total |
28995984 |
49.31 |
|
|
(2) Non-Institutions |
|
|
|
|
|
3139380 |
5.34 |
|
|
|
|
|
|
|
Individual shareholders holding nominal share capital up to Rs. 0.100
Million |
3126361 |
5.32 |
|
|
Individual shareholders holding nominal share capital in excess of Rs.
0.100 Million |
4392495 |
7.47 |
|
|
|
2975299 |
5.06 |
|
|
|
1664087 |
2.83 |
|
|
Hindu Undivided Families |
278704 |
0.47 |
|
|
Directors & their Relatives & Friends |
193200 |
0.33 |
|
|
|
234581 |
0.4 |
|
|
|
495000 |
0.84 |
|
|
Trusts |
691 |
0 |
|
|
Foreign Corporate Bodies |
109036 |
0.19 |
|
|
|
13633535 |
23.18 |
|
|
Total Public shareholding (B) |
42629519 |
72.49 |
|
|
Total (A)+(B) |
58803721 |
100 |
|
|
|
0 |
0 |
|
|
(1) Promoter and Promoter Group |
0 |
0 |
|
|
(2) Public |
0 |
0 |
|
|
Sub Total |
0 |
0 |
|
|
Total (A)+(B)+(C) |
58803721 |
0 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and marketing of all types of Bulk Drugs,
Pharmaceuticals, etc. |
||||||||
|
|
|
||||||||
|
Products : |
|
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) |
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
Bankers : |
|
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
Facilities : |
|
|||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Statutory Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
Deloitte Centre, |
|
Tel. No.: |
91-80-66276000 |
|
Fax No.: |
91-80-66276011 |
|
|
|
|
Internal Auditors : |
|
|
Name : |
Grant Thornton International Chartered Accountants |
|
Address : |
Wings, 1st Floor, 16/1, Cambridge Road, Halasuru,
Bangalore-560008, India |
|
|
|
|
Joint Ventures : |
|
|
|
|
|
Wholly Owned Subsidiaries : |
Direct Holding
Indirect Holding
|
|
|
|
|
Other Subsidiaries : |
Indirect Holding
|
|
|
|
|
Enterprises owned or significantly influenced by
key management personnel and relative of key management personnel : |
|
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 |
|
|
|
|
|
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 |
5957.200 |
6341.500 |
|
|
TOTAL BORROWING |
14398.010 |
12418.560 |
12322.390 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
27990.110 |
26479.610 |
21601.680 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
3239.020 |
3115.150 |
3268.930 |
|
|
Capital work-in-progress |
79.920 |
375.280 |
112.140 |
|
|
|
|
|
|
|
|
INVESTMENT |
7868.180 |
18200.670 |
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
|
4654.760 |
3597.850 |
|
Total
Current Assets |
22112.550
|
8500.720 |
6941.970 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
2761.510
|
1920.200 |
2124.910 |
|
|
Other Current Liabilities |
398.400
|
301.180 |
81.390 |
|
|
Provisions |
2149.650
|
1490.830 |
1695.480 |
|
Total
Current Liabilities |
5309.560
|
3712.210 |
3901.780 |
|
|
Net Current Assets |
16802.990
|
4788.510
|
3040.190
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
27990.110 |
26479.610 |
21601.680 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.12.2011 |
31.12.2010 |
31.12.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
7163.550 |
5046.380 |
7694.420 |
|
|
|
Other Income |
498.920 |
248.060 |
131.500 |
|
|
|
TOTAL (A) |
7662.470 |
5294.440 |
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 |
884.630 |
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 |
3832.020 |
5835.500 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2213.740 |
1462.420 |
1990.420 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
775.880 |
420.770 |
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 |
890.830 |
725.290 |
|
|
Less |
Tax Expenses |
0.000 |
155.210 |
108.940 |
|
|
|
Net Profit from
Continuing Operations |
0.000 |
735.620 |
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 |
30.06.2012 |
30.09.2012 |
31.12.2012 |
31.03.2012 |
|
|
1st Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
1998.500 |
1877.400 |
1774.400 |
1242.500 |
|
Total Expenditure |
1726.700 |
1596.100 |
1686.300 |
1153.900 |
|
PBIDT (Excl OI) |
271.800 |
281.300 |
88.200 |
88.600 |
|
Other Income |
251.500 |
107.500 |
838.700 |
90.300 |
|
Operating Profit |
523.200 |
388.800 |
926.900 |
178.900 |
|
Interest |
235.600 |
169.400 |
88.800 |
90.100 |
|
Exceptional Items |
(442.200) |
125.300 |
(1.000) |
(326.200) |
|
PBDT |
(154.6000) |
344.700 |
837.100 |
(237.400) |
|
Depreciation |
44.400 |
43.600 |
58.800 |
44.200 |
|
Profit Before Tax |
(199.000) |
301.100 |
778.300 |
(281.600) |
|
Tax |
0.000 |
0.000 |
39.000 |
0.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
(199.000) |
301.100 |
739.300 |
(281.600) |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
(199.000) |
301.100 |
739.300 |
(281.600) |
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
|
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 |
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
(if applicable) |
Yes |
|
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 |
No |
|
30] |
Major Shareholders, if
available |
No |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
No |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director,
if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
|
UNSECURED LOAN |
Rs.
In Millions 31.12.2011 |
Rs.
In Millions 31.12.2010 |
|
1. Long term
loans |
|
|
|
a) Foreign currency convertible bonds (FCCB’s) |
|
|
|
- Debt Portion of FCCB’s |
5854.240 |
4381.890 |
|
- Fair value of embedded derivatives in FCCB’s |
2.090 |
190.950 |
|
b) From subsidiaries |
0.000 |
681.520 |
|
2. Short term
loans |
|
|
|
a) From banks |
111.510 |
502.840 |
|
b) From others |
100.000 |
200.000 |
|
|
|
|
|
TOTAL |
6067.840 |
5957.200 |
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, Segment – 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 up to 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
WEBSITE DETAILS
NEWS
PRESS RELEASE
MALAYSIAN
BIO-XCELL SDN BHD SEALS A DEAL EXCEEDING US$35M (RM107M) WITH AGILA BIOTECH SDN
BHD DURING BIOPHARMA ASIA 2013
Bangalore, March
19 2013 – In conjunction with Asia’s leading biopharma industry gathering, the
BioPharma Asia Convention (BioPharma Asia) held in Singapore from 19th to 21st
March 2013 witnessed Malaysian Bio-XCell Sdn Bhd (Bio-XCell) and Agila Biotech
Sdn Bhd (Agila Biotech (Malaysia)) sealing a US$34.4m (RM107m) Build-and-Lease
Agreement. This agreement is for the establishment of a customized biotech
facility located in the Bio-XCell ecosystem in Nusajaya, Johor, Malaysia.
The agreement was
signed between En. Rizatuddin Ramli, CEO of Bio-XCell and Dr. Anand Iyer, CEO
of Agila Biotech (Malaysia), a subsidiary of India-listed Strides Arcolab
Limited, replacing an earlier agreement signed in May 2011.
“Agila Biotech
(Malaysia) is indeed poised to be a major anchor tenant for the Bio-XCell
ecosystem and we are extremely pleased to be able to offer our services and
support for this promising project," said En. Rizatuddin Ramli. Bio-XCell
will fund RM67.32 million (approximately US$22 Million) to be provided under
the Build-and-Lease Agreement with Agila Biotech (Malaysia), which will cover
the construction of the building and part of the equipment. All other related
state-of-the-art equipment, integration service and testing of this turnkey
project (estimated at US$13-15 million) will be funded by Agila Biotech
(Malaysia) from internal accruals and funding from external sources.
Work on the
facility for the end-to-end manufacturing of biologics located on an 8.77 acre
plot is expected to start as soon as all necessary clearances and permits have
been obtained and all supplemental agreements have been executed. Both parties
are aiming for the R and D and manufacturing facilities to be operational by
end 2014.
Agila Biotech
(Malaysia) plans to incorporate into its facility at Bio-XCell, the
“next-generation” technology platforms which revolutionize the way biomolecules
are developed, manufactured and commercialized. It is built around a unique
platform that features the innovative application of single-use component
technology and transforming biomanufacturing economics, thus reducing
deployment of new manufacturing capacity from 3-5 years to a faster 12-18
months. There's also a significant capital investment savings compared to
conventional approaches.
“Successful foray
into the biologics space would require building a state-of-the-art
infrastructure and strong technical foundation to support three pillars for a
successful biotech business," said Dr. Anand lyer, while adding that the
three pillars are strong pipeline of products; partnering capabilities; and
novel formulations/ delivery capabilities, all of which will be found in their
new facility planned in Malaysia.
Dr. Iyer also
noted that the facility in Bio-XCell represents a strategic move to further
bolster Agila Biotech (Malaysia)’s manufacturing presence in the region and tap
into unmet global demand and window of opportunity in biologics. The proposed
facility at Bio-XCell will include a Mammalian Cell Culture Single-Use
Technology Manufacturing Suite, a Microbial Fermentation Single-Use Technology
Manufacturing Suite, a Fill and Finish Suite, Analytical/ QC/ R and D labs,
utilities infrastructure and offices.
Agila Biotech
(Malaysia)'s plans for their facility at Bio-XCell include the development of a
state of- the-art, multi-product, scalable manufacturing facility with a
production capacity for mammalian (2KL expandable up to 8KL) and microbial (500
L expandable up to 2KL) products. It also aims to develop advanced formulation/
fill finish facilities to meet Agila Biotech (Malaysia)’s business model which
will support the manufacturing of internal pipeline products as well as CMO
activities. These facilities will be able to support the production of
Recombinant
Monoclonal
Antibodies (mAbs) from DS to DP, Recombinant Therapeutic Proteins from DS to
DP, CMO activities for DS and DP, chemistry and formulation activities for
PEGylation, novel formulation development and sterile fill finish facilities
for vials, PFS, cartridges and lyophilized products.
Agila Biotech
(Malaysia) is also building a 15,000sq.ft, state-of-the-art biologics R and D
facility in Bangalore that will support and complement its operations in
Malaysia.
Agila Biotech
(Malaysia) joins Biocon (India), MetEx (France) and Glycos Biotechnologies
(USA) as the early entrants into the Bio-XCell ecosystem. The site is supported
by a network of five seaports and two international airports, all within 59km
from the park. The ecosystem at Bio- XCell is designed for industrial and
healthcare biotechnology with a focus on manufacturing and R and D.
ABOUT BIO-XCELL
Bio-XCell, a biotechnology
park and ecosystem dedicated to healthcare and industrial biotechnology is
being developed by Malaysian Bio-XCell Sdn Bhd, a joint venture company formed
between Malaysian Biotechnology Corporation and property developer UEM Land
Berhad in 2009.
Bio-XCell is
strategically located on 160 acres in Nusajaya, within the Iskandar region of
Johor, Malaysia, and close to the border with Singapore providing global
connectivity through a network of five seaports and two international airports,
all within 59 km. Bio-XCell offers a conducive environment for the development
and manufacturing of biologics, pharmaceuticals, bio-based/ green chemicals and
other solutions to heal, fuel and green the world.
As a managed park,
Bio-XCell will provide its clients and investors with a range of value added
benefits including comprehensive infrastructure, high speed internet access,
park maintenance and security as well as core facilities to nurture the
ecosystem. Key facilities of the park include the Central Hub and Central
Utilities Facility (CUF).
The Central Hub is
a multipurpose complex featuring a business centre, auditorium, lab and office
space as well as amenities such as F and B and retail outlets. The CUF will
provide specialized utilities for biomanufacturing to the park’s clients.
Clients have options to locate their manufacturing operations at one of the
ready-built standard shell buildings or customise their own facility on one of
the land plots available at the park.
The park's global
clients include Biocon (India) whose biologics facility will represent the
largest insulin production plant in Asia, as well as Agila Biotech (India),
METabolic EXplorer (France) and Glycos Biotechnologies (USA).
About Agila
Biotech (Malaysia) / Strides Arcolab Limited:
Agila Biotech Sdn
Bhd is a wholly owned subsidiary of Agila Biotech Private Limited, India. Agila
Biotech (Malaysia) is a Strides Acrolab Limited (Strides) enterprise.
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 and D Centre located in Bangalore.
STRIDES ARCOLAB TO
SELL AGILA SPECIALTIES DIVISION TO MYLAN INC. FOR AN AGGREGATE SUM OF US$1,600
MILLION IN CASH AND POTENTIAL ADDITIONAL CONSIDERATION OF UP TO US$250 MILLION
·
Crystallises significant value creation for Strides and its
shareholders
·
Recognises the high-quality nature of Agila’s management team,
regulatory compliance, manufacturing set-up, and pipeline built over the course
of a decade
·
Significantly strengthens Strides’ balance sheet post closing
·
Proposes to distribute approximately US$700 million to US$800 million
pre-tax to shareholders
·
Transaction does not include Agila Biotech division
·
Remaining Pharma and Biotech business to be future growth areas for
Strides
Bangalore: Strides Arcolab Limited (BSE: 532531, NSE: STAR) today announced that it
has entered into a definitive agreement for the sale of its specialties
subsidiary, Agila Specialties Private Limited, and simultaneously its overseas
specialties subsidiary, Agila Specialties Asia Pte. Limited, Singapore, has
entered into a definitive agreement for the sale of its subsidiaries to Mylan
Inc. (NASDAQ: MYL).
Under the terms of the agreement, Strides and its subsidiary will
receive an aggregate sum of US$1,600 million in cash on closing and a potential
additional consideration of up to US$250 million subject to the satisfaction of
certain conditions by Strides. As announced simultaneously, the division
recorded sales of US$255 million and EBITDA of US$86 million for the historical
year ended 31 December, 2012.
The transaction has been independently approved by the respective Board
of Directors of Strides and Mylan. The agreement to sell Agila Specialties Asia
Pte. Limited, Singapore, has been independently approved by the respective
Board of Directors of Agila Specialties Asia Pte. Limited and Mylan. Following
successful closing of the transaction, Strides proposes to utilise proceeds
towards, inter alia, retiring debt, providing a pre-tax return of approximately
US$700 million to US$800 million to shareholders, and costs related to the
satisfaction of contingent conditions.
Headquartered in Bangalore, India, Agila is a leading global speciality
injectables business focused on key domains including oncolytics, penems, penicillin,
cephalosporins and ophthalmics in India and overseas. Agila operates from nine
world-class global manufacturing facilities, including one of the largest
sterile capacities in India and amongst the largest lyophilisation capacities
in the world.
Headquartered in Pittsburgh, Pennsylvania, USA, Mylan is a global
pharmaceutical company with a growing portfolio of more than 1,100 generic
pharmaceuticals and several brand medications. In addition, it offers a wide
range of antiretroviral therapies and operates one of the largest active
pharmaceutical ingredient manufacturers. The company currently markets products
in approximately 140 countries and territories and employs a workforce of more
than 20,000 people.
Strides will continue to operate and develop its Pharma business and
front-end businesses in India and Africa. Strides will also focus on developing
a fully integrated Biotech business which will be fully funded post this
transaction.
Commenting on the transaction, Arun Kumar, Executive Vice Chairman and
Group CEO of Strides Arcolab, said: “The sale of Agila demonstrates our
commitment to maximising value to our shareholders. Our investments in the
business, together with the operational excellence of our employees, have led
to the creation a global, high-quality specialty injectables business with an
industry-leading pipeline and best-in-class infrastructure. We believe Agila,
its partners, customers and employees across all of its markets will benefit
significantly from Mylan’s global reach and strong position in the global
generic and specialty pharmaceutical sector. I am excited by the combination of
our Agila business with Mylan as it allows Mylan to leverage its operational
base to become a leading global injectables company in the coming years and
offers great opportunities to the employees who have made Agila what it is
today. Mylan’s long-standing commitment to quality, its track record of
integrity and reliability, and powerful global platform make Mylan the perfect
fit for this business, both culturally and from a commercial perspective”.
Mr. V.S. Iyer, CEO of Agila Specialties, said “This transaction is an
endorsement of the world-class capabilities the Agila team has created and
serves as a perfect bolt-on strategy for the future of Agila and its
employees”.
Heather Bresch, CEO of Mylan, said: “The addition of Agila to Mylan’s
existing injectables platform will immediately create a new, powerful global
leader in this fast-growing, attractive market segment and accelerate our
target of becoming a top-three global player in injectables. Agila’s broad
product portfolio and pipeline, which is very complementary to Mylan’s, is the
result of best-in-class research and development and an industry-leading track
record of securing product approvals. Importantly, Agila will bring Mylan one
of the most state-of-the-art, high-quality injectables manufacturing platforms
in the industry. We are excited to welcome the Agila employees to Mylan’s
growing global team and anticipate a seamless and rapid integration of the
Agila business.”
The transaction is subject to customary conditions, including receipt of
required regulatory approvals.
Jefferies International Limited is acting as sole financial advisor to
Strides Arcolab. Herbert Smith Freehills LLP is acting as lead international
counsel, supported by DSK Legal, Haynes and Boone, LLP, and Pinheiro Neto
Advogados.
The Company will be hosting an investor / analyst call at 04.30 p.m.,
India time on 28 February, 2013, to discuss the transaction.
This announcement does not constitute a recommendation to shareholders
or potential investors.
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 and 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 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. 53.33 |
|
|
1 |
Rs. 82.55 |
|
Euro |
1 |
Rs. 70.10 |
INFORMATION DETAILS
|
Report Prepared
by : |
DPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
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.