Company Profile - Template

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Company NameIPCA laboratories Ltd

SaumyaRoll-138

Lal bahadur shastri Institute Of Mgt

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Table of contents Executive Summary Background

History, Year of Incorporation & other details

Evolution of Edelweiss Behind the LOGO Demographics

Location, Branches, Employee details

Legal structure Corporate Structure

Organizational Structure Leadership, Organizational

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Operational Profile Products /Services /Solutions Business Lines Awards and Ratings

Competitive Strengths Shareholding Pattern Financial Summary

Revenue by segments, Historical revenue growths Profitability

Market Forces Risks & Concerns Key Success Factors SWOT Analysis Company Initiatives & Strategy Annexure

Company in the press

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Executive summary

• History of IPCA• Demographies at IPCA• Structure-legal and organisational• Business line and product line• Shareholing pattern • Financial summary with revenue segmentation,camparison with nifty(detailed discription with the help of charts and tables)• Market forces (internal agents and external agents) at ipca• Risk and issues which IPCA has to take care of• It’s success factor• Finding the strength,weakness,opportunities and threats to ipca laboratories• Companies future strategies• Initiatives• Auditor’s annexure• Recent developement

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Background1949

• IPCA (Indian Pharmaceutical Combine Association)Laboratories was by a group of medical professionals and businessmen

1969• One of the first modern pharma factory of

yesteryears was commissioned by IPCA

1975• current management took over the

company(Ajitabh Bachchan, Premchand Godha and M R Chandurkar )

1994 • The company came out with its maiden public issue

1998 • Ajitabh Bachchan divested his 36 per cent stake in the company to the other promoters and FIIs.

•IPCA is one of India's fully integrated pharmaceutical companies with a strong thrust on exports.•Its facilities are approved by leading drug regulatory authorities like USFDA, MCA-UK, MCC-South Africa, ANVISA-Brasil and TGA-Australia•IPCA is the largest Indian manufacturer of bulk drugs like Chloroquine Phosphate (antimalarial), Atenolol (antihypertensive), Furosemide (diuretic) and Pyrantel salts (anthelmintics)

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DemographicManufacturing plant State/UT Operational year

Athal Dadra & Nagar Haveli 1995

Aurangabad Maharashtra 1997

Dehradun Uttarakhand 2006

Kandla Gujarat 1993

Silvassa Dadra & Nagar Haveli 2004

Indore Madhya Pradesh 1994

Ratlam Madhya Pradesh 1983

Pithampur Madhya Pradesh

•Regional Office-Mumbai(Maharashtra)•R&D Centre-Mumbai(Maharashtra) •Corporate Office and shared Department-Mumbai (Maharastra)

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Employee strength

The field staff strength of Ipca Labs is around 7500 people of which nearly 1500 field staff are from its 2 domestic Cardiac products marketing divisions. The company recruited more people in FY10 for its two new domestic marketing divisions and additional recruitment was made in R&D areas.

Various degisnations are as follows:-• Data Management Statistics• Drug Regulatory Officer• Good Manufacturing• Laboratory Staff• Medical Representative Manager• Pharmacist• Quality Assurance/Control Manager• Executive• Manager/Team Lead/Head

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Legal structureJoint Ventures / Acquisition / Subsidiaries

1)Directors are appointed by Shareholders to manage the affairs of the Company on their behalf and to act for their benefit and in the interests of the Company.2) Directors have a fiduciary relationship with the Company3)Directors owe a duty of care to the Company and not to act negligently in the management of its affairs, the standard of care being that of a prudent and reasonable man looking after his own affairs.

Code of Conduct

•Conflicts of Interest• Honesty & Integrity

•PCA Laboratories Limited (IPCA) is a publicly held pharmaceutical company.•It’s major shareholder’s are Ajitabh Bachchan, Premchand Godha and M R Chandurkar

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Subsidiaries companies

• The Companys wholly-owned subsidiary Company Laboratories Ipca Do Brasil Ltda, Brazil is in the process of being voluntarily wound-up.

• Directed by the Central Government, the financial data of the subsidiaries have been furnished under Details of Subsidiaries forming part of the Annual Report.

• The annual accounts of the subsidiaries are also uploaded on the

website of the Company.

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Organisational Structure(Leadership)

• IPCA has a flexible organisation structure.

• An organizational structure consists of activities such as task allocation, coordination and supervision, which are directed towards the achievement of organizational aims.

• It has decentralisation system with Delegation of authority for efficient decision making

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Organizational StructureManagement Hierarchy

It has non hierarchical management structure.Director and senior most executives interact with employees at different levels at different forums.

Board of Directors

Chairman

Executives

Vice President

Auditors

Registrar Shareholder transfer Agent

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Business Line

It is engaged in the development and manufacture of active pharmaceutical ingredients (APIs), drug intermediates and formulations

• IPCA is also one of the largest suppliers of these APIs and their intermediates world over.

• Ipca believes in embarking on it’s mission through their employees - the partners of our business.

IPCA strongly believe in:• Customer Focus

Continual Learning and Improvement Flexible Organization Structure Significant Technological Support Culture Building

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Operational Profile

Product Category• Formulation- Ipca manufactures over 150 formulations representing various therapeutic

segments and dosage forms like tablets,capsules,oral liquid,dry powder for suspension, and injectables (liquid & dry).

• Active Pharmaceutical Ingredients-ipca is largest manufacturer and exporter of APIs backed by more than 27 years of expertise in pharmaceutical manufacturing. Ipca's APIs are well accepted all over the world and are currently exported to the regulated as well as to the non-regulated markets in all the major continents. Ex analgesics,Anthelmentics,antiosteoporosis,antibacterials,anticoagulant,antidepressants,antidiabetic,antiemetics,antifungal,antihistaminics,antihypertensives,antiinflammatory,antimalarials

• Drug Intermediates- it is a organic compound that is formed in a stage between the parent substance and the final pharmaceutical compound.EX 2-Bromo-6-Methoxy-Naphthalene (2BMN),4,7-Dichloroquinoline (4,7

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Awards and recognition

• Forbes, a leading US business magazine, selected Ipca in 2003 among its top 200 successful, rising companies outside USA, with sales under USD 1 Billion

• Ipca was selected by FORBES in this prestigious list for two consecutive years, 2004 and 2005.

• Ipca Labs received best Patent Award during the year 07 - 08 from IDMA.

• Ipca has received the Second Prize in "National Energy Conservation Award" for 2007• January - 'Ipca Who' Brochure received ABCI Gold Award, (Association of Business

Communicators of India) in 2008.

• WHO prequalify Ipca's dossier of ARTESUNATE + AMODIAQUINE Co Blister making Ipca the 2nd company in the world and the first Indian company to receive this prequalification.

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Shareholding as on 31-03-2010

Category %holding

Domestic 46.36

Mutual Fund &UTI 35.42

FII &NRI 1.19

Domestic companies 4.98

Resident indivisual 12.05

• Domestic includes- directors,subsidiary companies,state government, central government, general public,employees.

• Institutions include-ICICI,IDBI,UTI,LIC.• Foreign includes-NRI,collaborators,insitutes,industries.

(A) Listing: BSE and NSE,

(B) BSE Code: 524494

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Financial summary

70

30

%

formulationAPI

Revenue –segment wise

Key features:-

•Ipca is a medium sized player in the domestic market producing branded and generic formulations, Active Pharma Ingredients (APIs) and Intermediaries. •The domestic business has shown a strong growth of CAGR 21% between FY06-10. •It is a market leader in anti-malarial and rheumatoid arthritis. •Exports form slightly over 50% of the total sales ,

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Financial Summary• Key Financial Indicators

Mar-08 Mar-09 Mar-10Revenue(rs-mn) 11,068.2 13,125 15,906.5EBITDA(%) 19.1 20.3 21.2PAT(rs-mn) 1352.4 1053.1 2051.6EPS(rs) 53.9 42.1 16.4PE(x) 11.4 7.8 19.7ROE 25.5 17.3 27.5

PROFITABILITY-Net profit of Ipca Laboratories rose 129.32% to Rs. 209.19 crore in the year ended March 2010 as against Rs. 91.22 crore in 2009.

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Historical data

Mar-08 Mar-09 mar-10

Net sales 10477.3 12,798.5 15533.4

Operating income

11068.2 13125.7 15906.5

EBDITA 2112.0 2660.4 3371.4

Depriciation 326 397 468

PBT 1698.3 1333.2 2668.4

PAT 1352.4 1053.1 2051.6

No of shares 25.1 25 125.2

EPS 53.9 42.1 16.4

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• Stock performance vis-à-vis market

YTP 1-m 3-m 12-m

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ipcaniftySeries3

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Market forces• Internal forces• It organises employee’s training program to ensure their

complete understanding about the services the company offers

• It has strong network of interaction between the employee about products,patents etc

• It organises various celebrationprograms on festivals• Quizes,tournaments,competitions are organised to spread

information among the staff.• Cultural festivals are organised to ensure participation of staff

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• External forcesDistribution strategies-Looking after concept selling for new theapies and

new products at Physicians, General Practitioners and Orthopedician level by using KOLs as speaker and panelist.

It has created a pool of speakers - national and international for CMEs and workshops to spread awareness about the products

It has created brand strategies, brand promotion for new product etcVarious post are introduced for growth and development of assigned

territories. (zonal business manager)

Use of social networking forums like linkedin,facebook to stay connected with the people

Surveys ,researchs are conducted to get the feedback

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Risks and Concerns

•Drug Price Control Order (DPCO) continues to challenge the Indian pharmaceutical industry

• OPM contraction –due to this exports for FY10 was 52% of revenues recurring net profit growth contraction, higher depreciation and tax charges.

•Fluctuation in rupees- exports are subjected to hit.

• higher staff and other expenses – Despite strong revenue growth operating performance was impacted due to it

•Addition in the field force has impacted short term profitability but long term growth visibility remains intact

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Key Success Factor• world class manufacturing facilities approved by US FDA have played a

critical role in enabling the company to realize its global ambitions .

• Exports form slightly over 50% of the total sales has resulted in global reach(New avenues for growth)

• Innovation-the Company keeps on bringing new product to the market.It inttroduces 8 new products in the domestic market last year

• Intellectual property protection -These applications relate to novel and innovative manufacturing processes for the manufacture of APIs and pharmaceutical formulations.It has also build up market confidence

• SEZ approval-Companys new formulations manufacturing unit at Special Economic Zone (SEZ) Indore leading to commercial growth

• Internal control systems- the Company has an adequate internal control system including suitable monitoring procedures commensurate with its size and the nature of the business

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SWOT Analysis

Strength

•It is the leading growing Indian pharmaceutical company•Company has a stronghold in the domestic formulations business and may see higher exports on regulatory approval of its new facility.•Strong domestic presence•Strong thrust on exports has resulted in emerging as global market player•The global demand for generics•Approval from leading Drug regulatory body•It is operational in more than 100 counties•Awards and recognition has further added feathers to its cap•Strong Human Resource• Strong Internal control systems

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SWOT Analysis

Weakness

• To keep updated with new technology ,it has to change its machines very frequently sometimes before the net value is realised.

• Too much diversification demands very strong distribution strategies• the anti-malarials business is seasonal and dependant on raw material

sourcing from China.

Opportunities• Growing awareness among people about healthcare• Export opportunities

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SWOT Analysis

Threats• Excessive forex fluctuations (given its export exposure)

• Delay in USFDA approval of its Indore facility pose near-term

• Drug Price Control Order (DPCO) continues to challenge the Indian pharmaceutical industry

• Threat from other competitors like Abbhot India Ltd,biocon ltd etc

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Company Initiatives & Strategy

Registering the products-IPCA has identified 50 existing developed formulations for registration and launch across all continents. Building strategic tie-up with Ranbaxy for 25 generic formulations in US. tie-ups with the MNC pharma companies. Marketing agreements – in APIs segment, Ipca is pursuing MNC tie-ups for supply agreements.Targeting export –it exports to over 110 countries globally, and derived 52% of its FY10 revenues from exports. The main exporting region is Europe (45% of total exports). The other key destinations are Americas, Asia and Africa. Domestic formulations business the cash cow: Ipca has been successful in changing its business focus to the high-margin chronic and lifestyle segments from the low-margin anti-malarial segmentIncreasing penetrations-On the formulations front, the company has been increasing its penetration in the regulated markets, viz. Europe and US by expanding the list of generic drugs backed by its own API.Focus on building brands In the emerging and semi-regulated markets, Ipca plans to focus on building brands in the CVS, CNS, pain-management, anti-malarial .

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Corporate Social Responsibility • IPCA is committed to good corporate citizenship

• It continues to undertake a range of activities in respect of healthcare and education to improve living conditions of people living in the neighbourhood of its manufacturing facilities.

•It has also supported healthcare and educational projects undertaken by charitable institutions and organizations.

•The Company considers safety, environment and health as the management responsibility.

•Regular employee training programmes are carried out in the manufacturing facilities on safety and environment.

•Initiatives in Environment-conservation of energy,awareness in global warming, Beautification of Road•Health-heart awareness workshop, Seminar on Health Hazards of Chewing Tobacco, Distribution of Free Medicines•Customers safety-by patenting the drug•Takes care of stakeholder involved

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Annexure – Press Releases Auditor’s reports states that the comapany complies with accounting standards referred to in Sub-section (3C) of Section 211 of the Companies Act, 1956

None of the directors is disqualified as on Sis5* March, 2010 from being appointed as a director in terms of Clause (g) of Sub-section (1) of Section 274 of the Companies Act, 1956.

The Company is maintaining proper records showing full particulars, includingquantitative details and situation of fixed assets;(b) The fixed assets have been physically verified by the management at reasonableintervals and any material discrepancies noticed on such verification have been properlydealt with in the books of account;(c) The Company has not disposed off any part of fixed assets

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News-recent development

• The company has released Ipca Laboratories Q2 FY11 Results• Ipca will set up 2 new bulk drug units at Ratlam for Rs. 600 mln• IPCA Labs to see rapid export growth after Indore SEZ units start

ops• IPCA Labs debt has increased marginally to Rs. 4.81 bln as on

Sep 30• The company will file 7 more generic drug applications in US by

Mar• Ipca Laboratories has received approval for its anti-malarial

finished fixed dose combination formulation • IPCA Labs to spend Rs. 1.2 bln each year on capex in FY11 and

FY12

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Thank You