Cipla Final Inder

8/10/2019 Cipla Final Inder

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INTRODUCTION

Cipla Limited is a Indian pharmaceutical company, probably best-known outside

its home country for pioneering the manufacture of low-cost anti-AIDS drugs for

HIV positive patients in developing countries. It has played a similarly prominentrole in expanding access to drugs to fight influenza, respiratory

disease and cancer. Founded by nationalist Indian scientist Khwaja Abdul

Hamied as The Chemical, Industrial & Pharmaceutical Laboratories in 1935, Cipla

makes drugs to treat cardiovascular disease, arthritis, diabetes, weight control,

depression and many other health conditions, and its products are distributed in

virtually every country of the world. Cipla is one of the biggest medicine company

not only in India but in the whole world.The company has more than 1000

products in the domestic market including generic AIDS drugs,antibiotics,chemotheraph & drugs for gastrointestinal illness and asthama.Cipla is a leader in

the domestical pharmaceuticals market.Its products come from the

manufacturing plants located through out the country.Cipla firm also exports raw

materials, intermediates, prescription drugs over the country products and

veterinary products to some 180 countries around the world.

COMPANY PROFILE

Cipla is based in Indias commercial capital Mumbai, The Chemical, Industrial &

Pharmaceutical Laboratories. Today, Cipla is a leading player in anti-infective and

anti-asthmatic formulations. The company also specializes in the manufacturing

of steroids and hormones. Cipla manufactured ampicillin for the first time in the

country in 1968. In 1983, Cipla developed two anticancer drugs, vinblastine and

vincristine from the common garden plant Vinca rosea in association with the

National Chemical Laboratory. The company pioneered the manufacture of the

antiretroviral drug, zidovudine, in technological collaboration with Indian Institute

of Chemical Technology in 1993. In 1997 Cipla became the first company in the

world by launching transparent Rotahaler, a dry powder inhaler device. In 1998

the company launched lamivudine, and became one of the few companies in the

world to offer all three component drugs of retroviral combination therapy

(zidovudine and stavudine already launched).Cipla received clearance from the


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Drugs Controller General of India to manufacture and market the country's first

non-nucleoside reverse transcriptase inhibitor (NNRTI), nevirapine, for the

treatment of AIDS. Cipla Ltd became Indias second largest pharmaceutical, edged

out the multinational giant GlaxoSmithKline which was reigning supreme in the

country for long, in terms of drug sales last year. Consistently maintaining a fast-

track growth momentum, Cipla has registered an 80-percent jump in net profit for

the quarter ended on March 31 2006, driven by growth in domestic sales and

exports. In the fourth quarter, Cipla posted a net profit of 1.90 billion rupees. Net

sales grew 63 percent to 8.7 billion rupees. Cipla's exports in the quarter grew

63.7 percent while domestic sales rose 56.4 percent. Cipla anticipates 15 to 20

percent growth in this year. Cipla's R&D division focuses on the development of

new products and new drug delivery systems across a range of therapies. The

company is spending over 4 per cent of its total turnover on R&D activities. The

company supplies drugs to treat over 2 lac HIV-positive patients worldwide. The

company has also been among the major suppliers of anti-malarial drugs and

drugs for schistosomiasis to international markets.

MISSION AND VISION

Ciplaisa global pharmaceutical company whose goal is ensuring no patient

shall be denied access to high quality & affordable medicine and

support. Ciplas mission is to be a leading global healthcare company which

uses technology and innovation to meet everyday needs of all patients.

Cipla

company wants to make indians healthy and strong.Cipla vision to make

suitable medicines for preventing bird flu. Cipla company visions to make

independent and self- Sufficient india in the field of medicine.Create healthyatmosphere and To resarch on CANCER and AIDS .


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BUSINESS OVERVIEW

The present businesses of Cipla can be broadly classified into:

Domestic branded formulation sales (74% of total sales; 19-20% operating profit margin)

Domestic unbranded formulation sales (7% of total sales; over 10% operating profit margin)

Exports (19% of total sales; around 38-40% operating profit margin). Breakup of exports is as follows:

Europe (17%), US (30%), Africa (34%), Middle East (8%) and Australia (11%).


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Cipla has been relatively low profile on its R&D initiatives compared to the

domestic peers, all of whom have set their sights on discovering new chemical

entities (NCEs). But lately, R&D spend of Cipla has increased by 25% to Rs. 300 mn

(4% of sales) and the company has an R&D team of 200 people. In future the R&D

expenditure is expected to grow at a faster pace compared to sales and might rise

to over 5% of sales. The business environment for Cipla has become highly

competitive in the last few years. The major factors affecting Cipla are as

follows:New Drug R&D costs are prohibitive, which has made MNCs to spread

their R&D costs through Mergers / Acquisitions. In Indian Pharmaceutical Sector

prices of over 60% of the Drugs/Formulations is controlled by the government

through DPCO (Drug Price Control Order). For Cipla DPCO coverage is around 55%

Low entry barriers in the bulk drugs market has led to a situation of over-capacity,

which has made major domestic players, shift their focus towards formulations

segment. As a result Cipla, which is earning nearly 80-85 percent of its sales from

formulations, is facing increasing competition. With the focus on post 2005 era,

MNCs are strengthening their position in India through marketing tie-ups with

local majors and fully owned subsidiaries. This can lead to even higher degree of

competition.


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SHAREHOLDING PATTERN

CATEGORY OF NO.OFSHAREHOLDER SHARE

HOLDERS

TOTAL NO.OF

SHARES

TOTAL NO. OFSHARES HELD IN

DEMATERIALIZEDFORM

TOTALSHAREHOLDING

AS A % OF TOTALNO. OF SHARESAS A % OF(A+B)AS A % OF(A+B+C)

SHARESPLEDGED OR

OTHERWISEENCUMBEREDNUMBER OFSHARESAS A % OFTOTALNO. OFSHARES

(A) Shareholding of Promoter and Promoter Group

(1) Indian

Individuals /HinduUndividedFamily

14 122,720,500 122,720,500 15.46 15.28 - -

BodiesCorporate

5 6,022,791 6,022,791 0.76 0.75 - -

Sub Total 19 128,743,291 128,743,291 16.21 16.03 - -

(2) Foreign

Individuals(Non-ResidentsIndividuals /ForeignIndividuals)

4 166,742,687 166,742,687 21.00 20.77 - -

Sub Total 4 166,742,687 166,742,687 21.00 20.77 - -

Totalshareholdingof PromoterandPromoterGroup (A)

23 295,485,978 295,485,978 37.22 36.80 - -

(B) Public Shareholding

(1)Institutions

Mutual Funds/ UTI

181 33,772,001 33,772,001 4.25 4.21 - -

FinancialInstitutions /

41 2,146,712 2,072,612 0.27 0.27 - -


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Banks

InsuranceCompanies

43 61,772,362 61,772,362 7.78 7.69 - -

ForeignInstitutionalInvestors

368 190,190,557 190,190,557 23.95 23.69 - -

Sub Total 633 287,881,632 287,807,532 36.26 35.85 - -

(2) Non-Institutions

BodiesCorporate

1,778 29,180,988 28,919,931 3.68 3.63 - -

Individuals - - - - - -

Individualshareholdersholdingnominal sharecapital up toRs. 1 lakh

154,183

52,432,556 47,682,519 6.60 6.53 - -

Individualshareholdersholdingnominal sharecapital inexcess of Rs.1 lakh

399

99,110,556 60,891,882 12.48 12.34 - -

Any Others(Specify)

4,148 29,904,666 7,275,766 3.77 3.72 - -

Trusts 41 1,376,393 1,376,393 0.17 0.17 - -

ForeignCorporateBodies

4143,297 143,297 0.02 0.02 - -

Non ResidentIndians

3,57527,502,709 4,873,809 3.46 3.43 - -

ClearingMembers

526881,792 881,792 0.11 0.11 - -

ForeignNationals

1100 100 - - - -

OverseasCorporate

1375 375 - - - -


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Bodies

Sub Total 160,508 210,628,766 144,770,098 26.53 26.23 - -

Total Publicshareholding(B)

161,141 498,510,398 432,577,630 62.78 62.09 - -

Total (A)+(B) 161,164 793,996,376 728,063,608 100.00 98.89 - -

(C) Sharesheld byCustodiansand againstwhichDepositoryReceipts havebeen issued-m

- - - - - - -

(1) - - - - - -

(2) - - - - - -

Sub Total 2 8,924,981 8,924,981 - 1.11 - -

Total(A)+(B)+(C)

161,166 802,921,357 736,988,589 - 100.00 - -

HISTORY OF THE COMPANY

Khwaja Abdul Hamied, the founder of Cipla, was born on October 31, 1898. In

1935, he set up The Chemical, Industrial & Pharmaceutical Laboratories, which

came to be popularly known as Cipla. He gave the company all his patent and

proprietary formulas for several drugs and medicines, without charging anyroyalty. On August 17, 1935, Cipla was registered as a public limited company

with an authorized capital of Rs 6 lacs. The search for suitable premises ended at

289, Belasis Road (the present corporate office) where a small bungalow with a

few rooms was taken on lease for 20 years for Rs 350 a month. Cipla was officially

opened on September 22, 1937 when the first products were ready for the


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market. July 4, 1939 was a red-letter day for Cipla, when the Father of the Nation,

Mahatma Gandhi, honoured the factory with a visit. He was "delighted to visit this

Indian enterprise", he noted later. From the time Cipla came to the aid of the

nation gasping for essential medicines during the Second World War, the

company has been among the leaders in the pharmaceutical industry in India. On

October 31, 1939, the books showed an all time high loss of Rs 67,935. That was

the last time the company ever recorded a deficit. In 1942, Dr Hamied's blueprint

for a technical industrial research institute was accepted by the government and

led to the birth of the Council of Scientific and Industrial Research (CSIR), which is

today the apex research body in the country. In 1944, the company bought the

premises at Bombay Central and decided to put up a "first class modern

pharmaceutical works and laboratory." It was also decided to acquire land and

buildings at Vikhroli. With severe import restrictions hampering production, the

company decided to commence manufacturing the basic chemicals required for

pharmaceuticals. In 1946, Cipla's product for hypertension, Serpinoid, was

exported to the American Roland Corporation, to the tune of Rs 8 lacs. Five years

later, the company entered into an agreement with a Swiss firm for

manufacturing foromycene. Dr Yusuf Hamied, the founder's son, returned with a

doctorate in chemistry from Cambridge and joined Cipla as an officer in charge of

research and development in 1960. In 1961, the Vikhroli factory startedmanufacturing diosgenin. This heralded the manufacture of several steroids and

hormones derived from diosgenin.

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Cipla Final Inder