CF (Cadila)

8/7/2019 CF (Cadila)

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nipo boomn2g unravellednunlocking land valuenaia engineering leadsMay 30, 2010

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midas Touch

cadila healThcarepj pt

cm

Smart acquisitions propel 18-fold growth

December 12, 2010


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Midas

Touch

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Pnkj PtelcMd


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B u s i n e s s i n d i a u nvmbr 29dcmbr 12, 2010 Cover Feature

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Sharvil: generation next

PHoToGRaPHs By: palashranjan bhaumick


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( crore)( crore)Impressive growth

2005-06 2006-07 2007-08 2008-09 2009-10 5-yearCAGR (%)

Financials

Gross sales 1507.8 1874.7 2363.8 2917.1 3614.2 22.60

Total income from operations 1484.5 1828.8 2322.9 2927.5 3686.8 23.60EBIDT 287.7 352.1 458.2 605.8 808.6 27.20

EBIT 209.8 269.8 391.3 494.0 674.7 31.60

PBT 176.8 273.9 323.4 369.8 603.9 34.50

Net profit before exceptional

items (net of tax) 162.4 210.2 263.3 323.4 509.2 31.30

Net profit 152.4 233.8 257.6 303.1 505.1 33.30

EPS (`) 8.09 12.41 13.67 14.8 24.6.7 31.10

R&D spend

Revenue 79.7 134.4 133.6 156.4 166.0 17.70

Capital 37.0 26.9 26.8 31.3 41.5

Total R&D spend 116.7 161.3 160.4 187.7 207.5 14.40

Parekh: in favour of debt


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Though Cadila Healthcarewas basically a pharma-ceutical company at its incep-

tion, its management realised

somewhere along the way that

consumer health products,

cosmetic items and nutritional

products would grow rapidly

over many years into the u-

ture. This gave rise to a series

o wellness products such as

Nutralite (a orm o low calo-

rie butter), Sugar-Free (a sugar

substitute and Everyuth, a

beauty product. The business

grew steadily in size, until Zy-

dus Wellness was hived o into

a separate company,

publicly held and

listed on the stock

exchanges.

All three product

groups cater to the

rising middle class

in the country, who

have a higher disposable in-

come than the earlier gen-

eration, and this generates a

demand or health-enhancing

products. This is why Sugar-

Free and its related products

Sugar-Free Dlite (a sot drink)

and TeaLite have

captured an 80 per

cent market share in

the country.

Similarly, Nu-

tralite has got wide-

spread consumer ac-

ceptance amongst

health conscious amilies as

a healthier alternative to but-

ter, being cholesterol-ree

and having no trans-ats or

hydrogenated ats.

All this has helped Zydus

Wellness to post a sales rev-

enue o`268 crore (net proft:

`45.27 crore) in FY10 up

rom a mere `31 crore in FY06.

The management claims that

it would become a `500 crore

company in the next 3-4 years.

It has a market capitalisation

o `2,150 crore, with Zydus

group, the promoters, and

Pankaj Patels amily holding

about 72 per cent. u

Wellne qotent

Joshi: managing the people Belapure: in charge of production


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usuMiT GHosHaL

Institutions

17.52%

Shareholding pattern

Non institutions

7.69%

Promoter and promoter

group74.79%

CIRCLE OF LIFE

High technology in action

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CF (Cadila)