Comprehensive Report

A COMPREHANSIVE PROJECT REPORTON

AMLOPRES AT (AMLODIPIN + ATENOLOL COMBINATION),

A PRODUCT OF CIPLA Ltd.

PREPARED UNDER GUIDENCE OF DR. HEMANT C. TRIVED

FACULT OF MANAGMENETDEPARTMENT OF BUSINESS ADMINISTRATION

PEPARED BYVIRAL B PATHAK

SUBMITTED TODEPARTMENT OF BUSINESS ADMINISTRATION

BHAVNAGAR UNIVERSUTYBHAVNAGAR

COMPREHENSIVE REPORT ON AMLOPRES AT

INDEXPage No.

The Indian pharmaceutical industry. 3

Pharma`s top 10 companies. 6

Introduction to the company (cipla ltd.) 7

Background. 8

History. 8

Board of directors. 12

Milestones. 13

Business. 18

Research and Development. 25

Quality control. 27

Exports. 28

Marketing and Promotion. 30

Distribution. 31

Expansion and modernization. 32

Cardiac division. 33

Major competitors. 35

Cardiac therapy. 36

Introduction to the product. 39

Competitors brand. 45

Financial analysis. 49

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Bibliography. 56

THE INDIAN PHARMACEUTICAL INDUSTRY:

From a very little start at Colcata, today Indian Pharma Industry has acquired a considerable position in Indian Industrial Market. In the post independence era India has become successful to achieve significant growth and development through conductive five year plans and rapid market potential.

We believe India is poised to become one of the major pharmaceutical producers given that it has one of the lowest per

capita drugs spending in the world of dollar through the country has a great potential for growth.

Economic growth will see a rise in sophisticated health care requirment foe the growing urben middle class in the terms of drugs and health care management, there will be a gradual trickle down effect on the vast rural population for which rising incomes will also increase demand for better helth care.

Before Drug Price Control Order(DPCO) Indian drug prices were among the highest in the world. But after been developed as an indigenious industry in 197, DPCO established retail selling prices on certain drugs. The introduction of the Indian Patents Act (1970) also resulted in a fundamental structural change with in the industry. The act did not recognize product patents for drugs but process patent, which allowed a company to copy a drug using different process route without payments of licence fees or royalties to originators. But now that would a major change in this process as the patent law is going to be introduced with in a shprt span of time which would prevent companies to produce same molecule drugs without having patent rights. So, there may be a major change after the implication of that law.

Indian drug companies with their lower labor and operational cost were able to manufacture first time international drugs and cheaper than MNCs, which had to adhere to international Patent regulations restricting them to their proprietary drugs.

Export of Indian Pharmaceuticals mainly consists of basic drugs, intermediates and fine chemicals (Including quinine salts exported exclusively by the Govt. and the finished formulations.

The Indian export have largly been consumed by the Russia who has been its largest buyer of Indian bulk drugs, accounting for 33% of the exports. Along with this now a days there are many other countries which are importing drugs from India like Cnanda, UK, Germany etc.

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The country’s raw material and manufacturing cost structure is internationally competitive.

A mix of low cost skilled labor and production efficiencies through process development has resulted in Indian drug prices being among the lowest in the world.

Among the developing countries, the India Pharma Industru leads in terms of its product range, as well as it’s product quality. Considering the fact that the population in India 17% of world population, its Pharma Industry constitutes only 3% in the world showing tremendous market potential.

The Indian Pharma Industry is characterized by a high level of fragmentation. Over 20,000 Pharma units in the country produce bulk drugs and intermediates.

The US$300bn global pharmaceutical industry is research driven. New drug R&D cost being prohibitive, it is limited to pharmaceutical MNCs in developed nations where product patents are enforced. High prices of under-patent drugs are causing a shift to generics, especially in USA and European markets. So, to spread their R&D costs over a larger base, Pharma MNCs are consolidating through mergers/ alliances. Historically, India has recognized only process patents. Under WTO, as per TRIPs agreement India too has to enforce product patents latest by year 2005 AD.

In the Rs160bn Indian pharma sector, prices of over 50% of the drugs/ formulations are Government controlled (through DPCO). In the domestic bulk drugs market, low entry barriers have resulted in overcapacity and price wars. So, major players are focusing on formulations, where brand image and distribution network act as entry barriers. Most players are increasing their overseas marketing/ manufacturing network in order to enhance exports (under patent drugs to third world countries and generics to developed nations). Large local players are consolidating through brand acquisitions, co-marketing/ contract manufacturing tie-ups with MNCs etc.

Facts: Total Value of Pharma Market is worth 16,235crores.Growth rate/annum of Pharma Industry is 11.6%

SOURCE: COMPANY LITERATURE (CIPLA Ltd.)

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PHARMA’S TOP 10 COMPANIES Figures in Rs crore

GAINER RANK

COMPANY AVG.MKT. CAPITAL(2002-2003)

AVG.MKT. CAPITAL(2002-2003)

1. RANBAXY LAB 10,131.28 6,081.84. DR. REDDY’S LAB 7,255.69 5,747.77

10. CIPLA 5,863.. 6,654.172. GSK PHARMA 2,827.09 1,928.156. SUN PHARMA 274,.69 2,619.413. WOCKHART 1,759.86 1,332.568. PFIZER 1,079.85 1,092.35. NOCHOLAS PIRAMAL INDIA 983.84 928.979. AVENTIES PHARMA 917.92 960.67. NOVARTIES INDIA 805.38 770.3

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Above figures shows the business of top 10 Indian Pharma companies.In these years, investors in pharma made a killing. Especially, Ranbaxy and Dr Reddy’s have scored on the strength of FDA approvals and strong growth in markets like US.

SOURCE: Business Today November-2002 issue.

INTRODUCTION TO THE COMPANY (CIPLA Ltd.):

Cipla, a India’s leading domestic pharmaceutical company, has excellent process R&D and distribution network. It is a leading player in anti-infective and anti-asthmatic formulations.

Cipla is aggressively expanding its therapeutic reach in high margin segment of cardiovascular, diabetic, anti asthma inhalers and central nervous system to boost domestic sales. With marketing JVs in all major markets of Europe, Australia, South East Asia, Africa and US, Cipla’s exports have grown at grow at more than 50% in the last FY2000 and FY2001. The company has consistently come out with modern drugs at a comparatively lower price in the domestic market. Cipla has strong pipeline of products and the company is expected to come out with innovative drugs through NDDS and chiral synthesis.

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BACKGROUND

Cipla was incorporated as a public limited company in 1935, in the name of Chemical Industrial and Pharmaceutical Laboratories Ltd. The name was changed to the acronym ‘Cipla’ in 1984. Over the last 6 decades Cipla has set up plants at 5 locations, mainly concentrated in Maharashtra. Currently it has around 2200 employees. Its in house R&D was established in 1952. Cipla is managed by the Hamied brothers, sons of the founder, late Dr K A Hamied. Dr Y K Hamied, with a doctorate in Organic Chemistry from Cambridge, is the Chairman and Managing Director. He heads the research division that has a strength 200 people. His brother, M K Hamied, looks after marketing and Amar Lulla heads the finance division. Cipla has incorporated a unique, flat organization structure.

HISTORY

Khwaja Abdul Hamied, the founder of Cipla, was born on October 31, 1898. The fire of nationalism was kindled in him when he was 15 as he witnessed a wanton act of colonial highhandedness. The fire was to blaze within him right through his life.

In college, he found Chemistry fascinating. He set sail for Europe in 1924 and got admission in Berlin University as a research student of "The Technology of Barium Compounds". He earned his doctorate three years later.

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In October 1927, during the long voyage from Europe to India, he drew up great plans for the future. He wrote: "No modern industry could have been possible without the help of such centres of research work where men are engaged in compelling nature to yield her secrets to the ruthless search of an investigating chemist." His plan found many supporters but no financiers. However, Dr Hamied was determined to being "a small wheel, no matter how small, than be a cog in a big wheel."

CIPLA IS BORN

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 any royalty. On August 17, 1935, Cipla was registered as a public limited company with an authorised capital of Rs 6 lakhs.

The search for suitable premises ended at 289, Bellasis 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 market. The Sunday Standard wrote: "The birth of Cipla which was launched into the world by Dr K A Hamied will be a red letter day in the annals of Bombay Industries. The first city in India can now boast of a concern, which will supersede all existing firms in the magnitude of its operations. India has lagged behind in the march of science but she is now awakening from her lethargy. The new company has mapped out an ambitious programme and with intelligent direction and skillful production bids fair to establish a great reputation in the East. "

MAHATMA GANDHI VISITS CIPLA

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.

On October 31, 1939, the books showed an alltime 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

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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 lakhs. 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 started manufacturing diosgenin. This heralded the manufacture of several steroids and hormones derived from diosgenin.

THE FOUNDER PASSES AWAY

The whole of Cipla was plunged into gloom on June 23, 1972 when Dr K A Hamied passed away. The Free Press Journal mourned the death of a "true nationalist, scientist and great soul…. The best homage we can pay to him is to contribute our best in the cause of self-reliance and the prosperity of our country in our fields of endeavour."

Cipla set up an agricultural research division in Bangalore in early 1973. The division worked on cultivation of several medicinal plants, particularly the Dioscorea species. The Bangalore factory was opened on October 22, 1977.

AWARDS AND ACHIEVEMENTS

Cipla was awarded the Chemexcil Second Award for 1978-79, in recognition of the company’s role in the international market as also the high ratio of exports to local sales.

The Chemexcil First Award followed this, in 1981-82. In 1983, Cipla bagged the Sir P C Ray Award for the development of indigenous technology in the face of stiff competition.

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In another landmark achievement that hit the headlines in the same year, Cipla developed two anticancer drugs, vinblastine and vincristine from the common garden plant Vinca rosea. This was in association with the National Chemical Laboratory.

Commercial production commenced in Cipla’s fourth factory at Patalganga in November 1983. Located in the middle of a green island, the plant incorporated the latest technical facilities in accordance with Good Manufacturing Practices.

In 1985, the US FDA approved Cipla’s bulk drug manufacturing facilities for the first time. In 1988 Cipla won the National Award for Successful Commercialisation of Publicly Funded R&D.

In keeping with its leadership position in anticancer drugs, the company pioneered the manufacture of the antiretroviral drug, zidovudine, in technological collaboration with Indian Institute of Chemical Technology in 1993.

In 1994, Cipla’s fifth factory began commercial production at Kurkumbh, Maharashtra.

Heralding a new era in inhalation therapy, Cipla launched its transparent Rotahaler, the world’s first such dry powder device, in 1995.

In 1997, the palliative cancer care centre set up by the Cipla Foundation, began offering free service to terminally ill patients at Warje, near Pune.

In 1998, Cipla launched lamivudine, thus becoming one of the few companies in the world to offer all three component drugs of retroviral combination therapy (the other two being zidovudine and stavudine).

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BOARD OF DIRECTORS

Board of Directors As on 26th July-2001

Dr Y K Hamied- Chairman & Managing Director

M K Hamied

Amar Lulla

D R Narang

Dr H R Manchanda

S A A Pinto

Ramesh Shroff

V C Kotwal

B K Khare

Secretary

n/a

MILESTONES:

1935:

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Dr K A Hamied sets up "The Chemical, Industrial and Pharmaceutical Laboratories Ltd." in a rented bungalow, at Bombay Central.

1941As the Second World War cuts off drug supplies, the company starts producing fine chemicals, dedicating all its facilities for the war effort.

1952Sets up first research division for attaining self-sufficiency in technological development.

1960Starts operations at second plant at Vikhroli, Mumbai, producing fine chemicals with special emphasis on natural products.

1968Cipla manufactures ampicillin for the first time in the country.

1972Starts Agricultural Research Division at Bangalore, for scientific cultivation of medicinal plants.

1976Cipla launches medicinal aerosols for asthma.

1980Wins Chemexcil Award for Excellence for exports.

1982Fourth factory begins operations at Patalganga, Maharashtra.

1984Develops anti-cancer drugs, vinblastine and vincristine in collaboration with the National Chemical Laboratory, Pune. Wins Sir P C Ray Award for developing inhouse technology for indigenous manufacture of a number of basic drugs.

1985US FDA approves Cipla’s bulk drug manufacturing facilities.

1988

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Cipla wins National Award for Successful Commercialisation of Publicly Funded R&D.

1991Lauches etoposide, a breakthrough in cancer chemotherapy, in association with Indian Institute of Chemical Technology.

The company pioneers the manufacture of the antiretroviral drug, zidovudine, in technological collaboration with Indian Institute of Chemical Technology, Hyderabad.

1994Cipla's fifth factory begins commercial production at Kurkumbh, Maharashtra

1997Launches transparent Rotahaler, the world's first such dry powder inhaler device now patented by Cipla in India and abroad. The palliative cancer care centre set up by the Cipla Foundation, begins offering free services at Warje, near Pune.

1998Launches lamivudine, becoming one of the few companies in the world to offer all three component drugs of retroviral combination therapy (zidovudine and stavudine already launched).

1999Launches Nevirapine, antirltroviral drug, used to prevent the transmission of AIDS from mother to child.

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CIPLA WAS THE FIRST TO INTRODUCE THESE DRUGS IN INDIA.

ClofibrateFor hyperlipidaemias resistant to diet

PropranololFor hypertension

LorazepamFor anxiety

Salbutamol sulphateFor bronchial asthma

Vincristine sulphateFor acute leukaemia

Vinblastine sulphateFor palliative treatment of cancer

PiroxicamFor rheumatoid arthritis

OndansetronFor cancer-induced emesis

SalmeterolFor bronchial asthma

DeferiproneWorld ’s first oral iron chelator for use in thalassaemia

FinasterideFor benign prostatic hyperplasia

Fluticasone propionateTopical corticosteroid

Alendronate

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GugulipidFor cholesterol reduction

NorfloxacinBroad spectrum antibacterial

EtoposideFor various cancers

Zidovudine (AZT)For HIV infection

BicalutamideFor prostate cancer

FamcyclovirFor herpes infections

ApraclonidineFor glaucoma

For osteoporosis

StavudineFor HIV infection

LamivudineFor HIV infection

DoxazosinFor hypertension

NevirapineFor HIV infection

MisoprostolFor NASAID induced gastritis

TamsulosinFor BPH

Montelukast SodiumFor bronchial asthma

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BUSINESS

Cipla’s FY2002 sales consist of formulations (65%), sold in the domestic and export market, and bulk drugs (35%), mostly exported

PRODUCTS

Cipla in the past has been focused on the domestic formulations market, spending large sums on R&D for processing under patent drugs and at the same time improving the efficacy of the formulations through novel drug delivery systems and chiral synthesis. It has premiered launches of many MNCs’ products in India, at competitive prices. Cipla has established itself as a leading player in antibiotics (including quinolones). In anti-asthmatics, it has around 70% market share in aerosols (inhalable formulations), with Asthalin (including brand extensions) being the leading brand. Other therapeutic areas are anti-AIDS, anti-cancer, cardiovascular, intestinal disinfection and anti-inflammatory/ anti-helmintic products.

PRODUCTION:

MANUFACTURING FACILITIES

Vikhroli, MumbaiFormulations

BangaloreBulk drugs, formulations, natural products

PatalgangaBulk drugs, formulations

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KurkumbhBulk drugs, formulations

Goa : Formulations

DEDICATED LICENSED MANUFACTURING FACILITIES Bangalore

Intermed Pharma Pvt. Ltd.Intermed Labs Pvt. Ltd.

DamanGolden Cross Pharma Pvt. Ltd.Healing Cross Pharma Pvt. Ltd.Jupiter Remedies Pvt. Ltd.Advanced Remedies Pvt. Ltd.

GoaMedispray Laboratories Pvt. Ltd.Meditab Specialities Pvt. Ltd.Okasa Pvt. Ltd.

KurkumbhOrion Remedies Pvt. Ltd.

Satara Okasa Pharma Ltd.Mediorals Laboratories Pvt. Ltd.

SolapurAditi Pharmaceuticals Pvt. Ltd

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Dosage Forms

Cipla manufactures:

Tablets

Conventional

Sustained Release

Enteric Coated

Effervescent

Chewable

Mouth Dissolve

Dispersible

Bilayered

Capsules

Hard Gelatin

Sprinkles

Sustained Release

Immediate Release

Filled with liquid

Powder Plus Tablet

Enteric coated pellets

Soft Gelatin

Conventional

Microemulsion

Liquids

Suspensions

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Syrups

Drops

InjectionsAmpoulesVialsDry PowderLyophilized

DepotOphthalmic PreparationsSuspensionsSolutions

OintmentsTopical PreparationsLotionsCreamsOintmentsTransdermal PatchesTransdermal SpraysGels

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PowdersNasal PreparationsSuspensionsSolutionsMetered Sprays

InhalersMetered DoseDry PowderNebulizing SolutionsRectal PreparationsSuppositoriesEnemaFoamsPowdersEffervescentConventionalDispersibleBuccal PreparationsMetered SpraysDevicesFor use withMetered Dose InhalersIntramammary PreparationsFor Veterinary Use

Toiletries

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PRODUCTSCipla produces around 50 types of bulk drugs. Most of these are captively consumed, and merchant sales are targeted mainly at export markets

CARDIAC CARE:

Carloc Simcard Atorlip

Zaart Trivedon-20 Doxacard

Amlopres Amlopres AT Amlopres L

INFECTION CARE:

Novamox AX Synclar Norfiox

Novaclox LB Cefoprox Norflox TZ

Acivir Novamox Ciplox

Forcan Ciplox TZ

ASTHAMA THEORAPY:

Asthalin Sereflo Inhealers

Bambudil Serobid Rotahealer

Aerocort Beclate Zerostat + spacer

Fiohale

EYE (OPTHELMIC PRODUCTS)

Optipres –S Ciplox

Optipres Norflox

ANTI-CANCER RANGE

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Kelfer Cytoblustin

Cytocristine Etosid

AIDS:

Lavimir Stavir Zidovir

Duovir Nevimune

Among the major products launched during the year were:

Asthalin HFA (salbutamol inhaler) - CFC-free bronchodilator aerosol for asthma

Atorlip (atorvastatin tablets) -advanced lipid lowering agent

Bambudil (bambuterol tablets) -Iong-acting bronchodilator for asthma

Cefadur Rediuse ( cefadroxil syrup) -ready- to-use paediatric antibiotic formulation

Doxacard (doxazosin mesylate tablets) - once-daily alpha blocker for hypertension and symptomatic relief of benign prostatic hyperplasia (BPH)

Duovir (lamivudine plus zidovudine tablets) -combination antiretroviral for HIV infection

Entofoam (hydrocortisone acetate foam) - corticosteroid rectal foam for ulcerative colitis

Lamivir HBV (lamivudine tablets) -new antiviral for chronic hepatitis B

Melflam (meloxicam tablets) -preferential COX-2 inhibitor NSAID for arthritis

Nevimune (nevirapine tablets) -novel antiretroviral for HIV infection

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Novaclox-LB (amoxycillin, cloxacillin and lactobacillus capsules) -antibiotic- lactobacillus combination free of gastrointestinal side effects

Novamox-AX (amoxycillin plus ambroxol tablets) -antibiotic-mucolytic combination for bronchitis

Seroflo Rotacaps (salmeterol plus fluticasone) -new corticosteroid bronchodilator combination for asthma

Synclar Dry Syrup (clarithromycin) - macrolide antibiotic for paediatric respiratory infections

Oflox TZ (ofloxacin plus tinidazole tablets) antibacterial combination for mixed aerobic/anaerobic infections.

From the active pharmaceutical ingredients (APIs) under development, the following were successfully scaled up for commercial manufacture:

a) Budesonide -corticosteroid

b) Cyproterone acetate -antiandrogen

c) Docetaxel -anticancer

d) Ebastine- antihistamine

e) Gabapentin- antiepileptic

f) Leflunomide -for rheumatoid arthritis

g)Mometasone furoate -corticosteroid

h) Nevirapine -non-nucleoside reverse transcriptase inhibitor

i) Olanzapine –antipsychotic

RESEARCH AND DEVELOPMENT:

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As in the past, Cipla's R&D division continued its focus on technological innovation. The Company zealously system of knowledge management within and outside the organisation to support its research efforts.

A wide spectrum of products has been successfully taken up for commercial manufacture during the year. Several innovative processes have already taken shape in the laboratory for the manufacture of active pharmaceutical drug ingredients including abacavir, alosetron, apraclonidine, atorvastatin, didanosine, efavirenz, linezolid, loteprednol, paroxetine, pioglitazone, quinapril and topotecan. Their commercial manufacture is on the anvil in the near future.

Significant progress was also achieved in the area of formulations and medical devices. Besides CFC-free metered dose inhalers, the R&D team has also developed other novel dosage forms. A unique dry powder delivery device is currently under development.

With a view to enhance its participation in the global market, Cipla is focusing on securing international patents for new processes, innovative drug formulations, advanced drug delivery systems and medical devices. The Company is carefully examining its future role in path-breaking areas of research such as genetics. This could open up unexplored avenues of global alliances for the introduction of new therapeutic agents.

The Company's new R&D centres at Kurkumbh and Patalganga obtained recognition from the Department of Scientific and Industrial Research, Government of India. The same was renewed for the existing in-house R&D units at Mumbai and Bangalore.

Cipla's R&D units are closely associated with major CSIR laboratories as well as other research institutions in India. During the year, the Company's expenditure on R&D was Rs300mn, approximately 4% of its turnover.

Research on new chemical entities in the area of antifungals, antihistamines and antiaids compounds.

Development of new drug delivery systems in various pharmaceutical dosage forms viz.

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1. Sustained and modified release dosage forms

2. Innovative Transdermal Delivery system

3. Drug delivery systems based on inhaled forms

4. Nasal, Rectal, Topical drug delivery forms

5. Ready to use formulations in Paediatric and Geriatric applications

6. CFC-free metered dose inhalers

Path-breaking work on agronomy and scientific development of traditional medicines.

State-of-the-art equipment for research, pilot scale manufacture as well as QC.

Designing innovative laboratory and plant equipment to enhance product performance and maximise returns

RESEARCH & DEVELOPMENT CENTRES Mumbai Central, Mumbai

R&D Formulations Vikhroli, Mumbai

R&D Bulk drugs & formulations Bangalore

R&D Bulk drugs Patalganga

R&D Bulk drugs Kurkumbh

R&D Bulk drugs

QUALITY CONTROL:

Cipla’s highly qualified professionals help upgrade quality standards by making consistent contributions to national and international pharmacopoeia and to analytical science.

Expertise in method development and validation for new molecules with special emphasis on impurity profiling, particle

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size analysis, stability and integrity assay methods, and in-vitro dissolution profiling.

Custom-made methods to evaluate sophisticated dosage forms like metered dose inhalers, intra nasal preparations, ophthalmic preparations, transdermal systems, dermatological products and implants.

Cipla laboratories are equipped with the following sophisticated equipment viz. HPLCs, HPTLCs, XRDs, GC-MS, FTIR Microscopy, LC-MS, Thermal Analytical Systems, Laser Particle Size Analysers and Illumination Chambers in order to test for conformity with USP, BP, EP, IP as well as inhouse specifications surpassing various pharmacopoeial standards.

Microbiological analysis including bacterial, endotoxin and sterility testing.

EXPORTS

Cipla was amongst the first few Indian pharma companies to receive US FDA approval for its works in 1985. In FY2001, exports grew 84% yoy, contributing 25% of net sales. A major portion of Cipla’s exports is to the developed countries of Americas (39%), and Europe (19%) which have highly stringent quality norms. Other major markets are Africa (16%), Middle East (15%), Asia (8%) and Australia (3%). Cipla has stopped exports to Russia and CIS countries due to ongoing crisis.

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The company has signed supply arrangements with a number of generic suppliers including Ivaxx and Zenith Goldline. More importantly, five of these arrangements are with companies who already have or are likely to obtain first to file marketing exclusivity. This implies that the margins on these products would be higher. Most important of these will be Olanzipine of Eli Lilly, which is a $2 billion plus product. Cipla’s strategy is a low risk one though it might lead to slightly lower returns. Cipla doesn’t have a single employee outside India (unlike its peers- DRL and Ranbaxy) as it believes in entering into partnership arrangements with people who already are in the market.

On the R&D front, the company is looking at partnerships for entering the biotech area. Again it believes that biotech research is much advanced abroad and it makes better sense to tie up with people already working in the field.

In last year company’s export were just under 5 billion, it accounts about 35% of the total sales.

Cipla products are bought by over 140 countries located in the following regions:

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Cipla technology is presently sold to companies in:

Canada Ecuador Germany Ivory Coast

Saudi Arabia

UK USA

Cipla has entered into marketing joint ventures with companies in:

Australia Ireland South Africa

MARKETING & PROMOTION:

For marketing mainly one to one strategy is used in which doctors all across India are visited by the Sales Exicutives of the

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company. Cipla has a well-qualified team of over 1000 MRs covering around 0.2m doctors all over India.

Cipla has co-marketing arrangement with Ranbaxy for once a day Ciprofloxacin. The company has offered to supply a key AIDS drug Niveripine free of cost to the Indian government for 2001 and 2002. The management feels very strongly about the grave situation facing India in the AIDS area and is even willing to give technical and manufacturing know- how free of cost to the Indian government.

Another helping tool of marketing is the gift method in that various kinds of gifts are given to the doctor to motivate them to prescribe their product.

Many doctors are sponsored by the company for various meetings and seminars in which mainly the registration is done by the company as a part of the promotion of the product

DISTRIBUTION:

For distribution of the product, mainly pull strategy is practiced.

The product is sold directly to the customer only by the medical stores only with doctor’s prescription.

For distribution: the customer comes to the medical store and asks about the medicine, the medical store owner inquires to the stockiest situated near to their medical store by direct

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contact or by the phone and the stockiest contacts to the dealer of the company or to the godown of the company where the stocks are delivered from ware houses in the respective regions and at there the stocks are delivered directly from the production units.

In this distribution network, cost of the distribution is on company up to the stock reaches to the stockiest and while in the case of the product reaching from stockiest to the various medical stores charges do mostly the medical stores pay.

It has a network of 24 sales offices and depots, liaising with around 1300 stockists and 1,30,000 retailers across the country.

EXPANSION AND MODERNISATION:

Considering the growing needs of business particularly in the various International markets, the Company invested substantially in modernising its plant and machinery at all its manufacturing locations.

The aggregate capital expenditure incurred during the year was Rs323.7mn.

BUSINESS ENVIRONMENT AND FUTURE PROSPECTS:

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The expecations of the indigenous pharmaceutical sector were belied, once again in the absence of any concrete measures to boost the industry. Despite several assurances, there was no relaxation in the drug pricing policy. Besides lacking transparency, the policy guidelines are based on outdated criteria and continue to be applied in an arbitrary and inequitable manner. In this era of liberalisation, the pharmaceutical industry is eagerly awaiting steps to relax pricing and other controls that have been hampering its growth for years.

As regards the impending introduction of product patents, it is fervently hoped that the Government will provide for compulsory licensing to protect Indian consumers, while finalising the patent amendment bill. India would do well to learn from the experience of the African countries, which are caught in the patent bind and are unable to provide life- saving drugs, like those to fight AIDS, to their ailing millions.

Regardless of the challenges posed by the changing business environment, Cipla is confident of maintaining its leadership position in the coming years on the basis of its inherent technological strengths and a highly committed and skilled manpower.

CARDIAC DIVISION:

The cardiac group forms a very important segment to Cipla as a company. The cardiac market is very dynamic and growing one. Infact, cardiac group as a whole industry is worth of 1419 crore and it is growing 20.5%/annum. Cipla has a 93 crore share in this group and is growing at a rate of 19.9%.

So, because of the above reasons it becomes essential for any company, in this segment, to focuss on proper marketing for the cardiac products and so as, the Cipla is doing extensive efforts for the marketing of cardiac products of Cipla. This efforts helps in two ways; firstly, helps the company to maintain their lead for certain well-established products, and secondly, it aids in steering the other brands forward.

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Now let us have a look on the contributions of the Cipla in cardiac devision in last 3 decades…

1. 1973: Ciplar (Proponolol) was introduced.

2. 1985: Metolar (Metopropol), the first cardioselective Beta-blocker, manufactured right from the basic stages, was introduced.

3. 1988-89: Nifelat (Nifedipine) was added in the cardiac basket.

4. 1992: Felogard (Felodipine), the vasoselective calcium antagonist was introduced.

5. 1995: Trivedon-20 (Trimetazidine) – the Cipla was first in India and second in the world to synthesize Trimetazidine.

6. 1995-96: Amlopres (Amlodipine) the advanced calcium antagonist was introduced.

7. 1996: Amlopres-AT (Amlodipine + Atenolol) the first bilayered tablet, was introduced.

8. 1997: Amlopres-L (Amlodipine + Lisinopril) was added to the Amlopres range.

9. 1997: Dilgard-XL (Diltiazem extended relase) was introduced.

10.1997: Warf (Warfarin) the anticoagulant entered.

11.1998: Simcard (Simvastatin) was a major breakthrough in lipid lowering therapy.

12.1998: Zaart (Losartan), an angiotensin receptor blocker, was a major advancement in antihypertensive therapy.

13.1999: Carloc (Carvedilol) the novel Beta-blocker was introduced.

14.1999: Doxacard (Doxazosin), Cipla was the first to introduced this Alpha- blocker in India.

15.1999: Atorlip (Atorvastatin) a premium statin molequle was added in their vast range.

16.2000: Amlopres-Z joined the Amlopres range.

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17.2001: Obestat and Ramipres were added to the cardiac basket.

18.2002: Clopivas, Metolar Injection, Trivedon-MR, Hydrazide, Fenolip entered in Cardiac Market.

TOTAL CIPLA SALES (During 2002-2003)

Value 1389.87 CroresGrowth 32%

Source: Company Literature

MAJOR COMPETITORS:

1) Pfizer.2) U.S.V.3) Intas.4) Sun Pharma5) Ranbaxy Lab6) Dr. Reddy’s Lab.7) GSK Pharma.8) Wockhardt.9) Nicholas Piramal India.10) Aventis Pharma.11)Novrartis India.

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CARDIAC THERAPY

Indications

Hypertension (high blood pressure), Angina (blockage in arteries), Arrythmia (disturbance in heart beat rhythm), low blood supply to other organs in the body.

Major Effective Drugs (as per therapeutic utility)

Anti-hypertensives :

Used to control high blood pressure. BP can be high due to a variety of reasons for eg

Excessive hormones released in the blood stream which cause blood vessels to contract more than necessary, resulting in higher blood pressure or.

Due to malfunctioning of the kidney and resultant disturbance in sodium salt & water balance in the body.

As per the cause of the hypertension, the relevant type of hypertensives are prescibed as under :

ACE Inhibitors :

These reduce the action of Acetyl-Choline-Esterase Enzyme (ACE) which when produced by the body in excess results in hypertension. Major drugs are Enalapril Maleate, Lisinopril, Ramipril, Captopril.

Beta Blockers :

These help to decrease heart rate, force of contraction and cardiac output therefore resulting in reducing high blood pressure. Includes drugs such as Atenolol, Propranolol, Metoprolol.

Calcium Channel Blockers :

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These help increase arterial circumference thus they are effective as both anti-hypertensive as well as anti-anginal drugs. Major drugs are Nifedipine, Diltiazem, Amlodipine, Verapamil and Felodipine.

Diuretics :

These help increase excretion by kidneys and result in reducing excess sodium salts in the body. This indirectly helps in lowering high blood pressure. Major drugs are Frusemide, Spironolactone and Lasamide.

Anti-anginals :

To treat or prevent chest pain due to compromised blood supply to the heart muscles. The drugs dilate arteries and improve blood flow. Major drugs are Isosorbide Mononitrate, Isosorbide Dinitrate and Trimetazidine.

Anti-arrhythmics :

These help stabilise the heart rate and rhythm. But none of the presently available drugs seem to have optimal effect. Main drugs are Disopyramide, Quinidine, Propafenone, Amiodarone and Digoxin.

Peripheral Vasodilators :

These selectively dilate blood vessels in the limbs and increase blood flow to the desired part of the body, without affecting overall blood pressure. Major drugs are Pentoxyfilline, Isoxsuprine.

DRUG PROPERTIES

Atenolol Beta Blocker

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Amlodipine Calcium Channel Blockers

Captopril ACE Inhibitor

Cinnarizine Peripheral Vasodilator

Diltiazem Calcium Channel Blockers

Enalapril Maleate ACE Inhibitor

Felodipine Calcium Channel Blockers

Isosorbide Dinitrate Anti-anginal

Isosorbide Mononitrate Anti-anginal

Lisinopril ACE Inhibitor

Methyl Dopa Anti-hypertensive

Nifedipine Calcium Channel Blockers

Pentoxyfilline Peripheral Vasodilator

Perindopril ACE Inhibitor

Ramipril ACE Inhibitor

Verapamil Calcium Channel Blockers

Frusemide Diuretic

Lasamide Diuretic

Spironolactone Diuretic

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INTRODUCTION TO PRODUCT

PRODUCT FEATURESIntroduction: Amlopres AT is the combination of two effective medicines : Amlodipine & Atenolol, which was first introduced by Cipla in the Indian Market.

Product Composition Pack PriceAmlopres AT Each unquated bylayered Tablet Con-

tains Amlodipine 5Mg. & Atenololol 50Mg.

BlisterStrip of10Tabs.

29.80

Amlpres AT25

Each unquated bylayered Tablet Con-tains lodipine 5Mg. & Atenololol 25Mg.

BlisterStrip of10Tabs.

20.50

BRAND POSITIONING :

The Combination of Two Best drugs, for Hypertensive with co-existing angina.

DESCRIPTION Amlopres-AT and Amlopres-AT 25 are fixed-dose combinations of amlodipine and atenolol. Amlodipine is a dihydropyridine calcium antagonist that inhibits the transmembrane influx of calcium ions into vascular smooth muscle and cardiac muscle; it has a greater effect on vascular smooth muscle cells than on cardiac muscle cells. Amlodipine

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is a peripheral vasodilator that acts directly on vascular smooth muscle to cause a reduction in peripheral vascular resistance and reduction in blood pressure. Amlodipine reduces tone, decreases coronary vasoreactivity and lowers cardiac demand by reducing afterload.

Atenolol is a cardioselective beta-blocker. It does not possess any membrane-stabilising or partial agonist action. The cardio-selectivity is dose-related. Atenolol causes a reduction in blood pressure by lowering cardiac output, decreasing the plasma renin activity and sympathetic outflow from CNS. Atenolol also causes a reduction in myocardial oxygen demand by virtue of its negative inotropic and negative chronotropic effects.

INDICATIONS The combination is indicated for the treatment of hypertension and chronic stable angina.

DOSAGE AND ADMINISTRATION The recommended dosage is one tablet of Amlopres-AT or Amlopres-AT 25 daily. If necessary, the dosage may be increased to two tablets daily. The dosage however should be individualised.

CONTRAINDICATIONS Hypersensitivity to either component, sinus bradycardia, second and higher degrees of heart block, cardiogenic shock, hypotension, congestive heart failure, poor left ventricular function.

WARNINGS AND PRECAUTIONS

DRUG INTERACTIONS:Disopyramide: Atenolol reduces the clearance of disopyramide by 20%. Additive negative inotropic effects on the heart may be produced.

Ampicillin at doses of 1 g and above may reduce atenolol levels.

Oral antidiabetics and insulin: Beta-blockers may decrease tissue sensitivity to insulin and inhibit insulin secretion e.g. in response to oral antidiabetics. Atenolol has less potential for these actions. The heart rate may not be reliable as an early warning of hypoglycemia.

HYPOTENSION:Excessive fall of blood pressure can occur in some patients especially the elderly.

AGGRAVATION OF ANGINA:Rarely patients, particularly those with severe obstructive coronary

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artery disease, have developed increased frequency, duration and/or severity of angina or acute myocardial infarction on starting calcium channel blocker therapy.

DRUG WITHDRAWAL:Since coronary heart disease may exist without being recognised, patients should be warned against stopping the drug suddenly. Any discontinuation should be gradual and under observation.

BRONCHOSPASM:The combination should be used with caution in patients with airway obstruction.

RENAL IMPAIRMENT:The combination can be used in patients with renal impairment. However, caution may be necessary if the creatinine clearance is less than 30 ml/min because of possible reduction in the excretion of unchanged atenolol.

HEPATIC IMPAIRMENT:Caution may be necessary in the use of the combination in patients with severe liver damage because of prolongation of the elimination half- life of amlodipine.

PREGNANCY:The combination should be used during pregnancy only if the expected benefit outweighs the potential foetal risk.

LACTATION:The combination should not be used by nursing mothers. If its use is considered necessary, breast feeding should be stopped.

SIDE EFFECTS The combination of amlodipine and atenolol is well tolerated. Side effects include headache, palpitations, flushing, edema, depression, dizziness, dyspepsia, dyspnoea, muscle cramps, fatigue, cold extremities and bradycardia.

OVERDOSAGE Though not documented, hypotension and less frequently congestive cardiac failure may occur in cases of overdosage. Unabsorbed drugs may be removed by gastric lavage or administration of activated charcoal. Symptomatic treatment is suggested.

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PRESENTATION Amlopres-AT Blister pack of 10 tablets Amlopres-AT 25 Blister pack of 10 tablets

DOCTORS ON FOCUS :

Cardiologists Physicians General Practitioners

COBINATION THERAPY – HIGHLIGHTS : The main benefits in the use of the Amlopres AT are given below.Features Benefits

1. Drugs from different classpharmacokinetically well matched * Neutralisation of adverse

effetspharmacodynamically well matched * Complementary control by

action on more than one pathway

pharmaceutically well matched * Stability of Tablet offered

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2. Smaller does of individual drug * Lesser incidences of adverse effects

* Better tolerability and safety

3. Single Tablet * Patient compliance

4. Economical * Better affordability

COMPETITOR BRANDS :

1.DIRECT(Amlodipine & Atenolo brands)

Brand Company Pack Price* Stamlobeta DRL 10 tablets Rs.35.28Tenochek IPCA 10 tablets Rs.31.00Amlopin AT USV(Lyka) 10 tablets Rs.29.00Myo-24 Wockhardt 7 tablets Rs.28.77Aten-AM Kopran 14 tablets Rs.28.25Amlogen-AT Bergen 10 tablets Rs.34.00Amlong-At Micro Labs 10 tablets Rs28.00.Amlovas-AT Macleods 10 tablets Rs.26.54Bibidip RPG 10 tablets Rs.26.00Amloz AT Plethico 14tablets Rs.35.33Amtas AT Intas 10 tablets Rs.24.25

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Amlobet Sun 10 tablets Rs.27.50Amalong-A MicroLabs 10 tablets Rs.28.00Amcard AT Systopic 10 tablets Rs.24.90Amlodac AT Alidac (Cadila) 10 tablets Rs.20.25Angitol Plus Ind Swift 10 tablets Rs.22.50Amlo- AT Mano Pharma 10 tablets Rs.19.90Covardil-A Unichem 10 tablets Rs.25.00Amlodipin- AT Cadila 14 tablets Rs.37.10Primodil- AT medley 10 tablets Rs.15.00

2. Indirect (Nifedipine & Atenolol Brands)

Brand Company

composition Pack Price*

Beta-Nicardia

Unique Atenolol 50 mg +Nifedipine SR 20 mg

10 capsules

Rs.24.16

Cardules Plus 10

Nicholas Atenolol 25 mg +Nifedipine SR 10 mg

10 capsules

Rs.17.22

Cardules Plus 20

Nicholas Atenolol 50 mg +Nifedipine SR 20 mg

10 capsules

Rs.24.00

Nilol Intas Atenolol 50 mg +Nifedipine SR 10 mg

10 capsules

Rs.27.00

presolar cipla Atenolol 50 mg +Nifedipine SR 10 mg

10 capsules

Rs.30.00

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FACTS ABOUT MARKET OF AMLODIPINE + ATENOLOL COMBINATION:

Total Market of Amlodipine + Atenolol groups: 94 crore

Total Market Growth rate for this combination is 20%

Total Market of Amlopres AT: 20 crore

Market Growth rate of Amlopres AT is 17%

Market Growth rate of UDP AT is 100%

Market Growth rate of Amlopin AT is 29%

Market Growth rate of Amlodar AT is 23%]

Market Growth rate of Amlong A is 17%

Market Growth rate of Amtas AT is 34%

Source: Survey by C MARK organization.

CORE COMPETENCE:

Amlopres AT was the first drug of Amlopres + Atenolol combination in the Indian market, introduced by Cipla Ltd.

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DISTRIBUTION:

For distribution of the product, mainly pull strategy is practiced.

The product is sold directly to the customer only by the medical stores only with doctor’s prescription.

For distribution: the customer comes to the medical store and asks about the medicine, the medical store owner inquires to the stockiest situated near to their medical store by direct contact or by the phone and the stockiest contacts to the dealer of the company or to the godown of the company where the stocks are delivered from ware houses in the respective regions and at there the stocks are delivered directly from the production units.

In this distribution network, cost of the distribution is on company up to the stock reaches to the stockiest and while in the case of the product reaching from stockiest to the various medical stores charges do mostly the medical stores pay.

MARKETING & PROMOTION:

For marketing the product one to one marketing strategy is mainly used. In that doctors are visited by the Sales Executives of the company to try and convince to prescribe them company’s product.

Another helping tool of marketing is the gift method in that various kinds of gifts are given to the doctor to motivate them to prescribe their product.

Many doctors are sponsored by the company for various meetings and seminars in which mainly the registration is done by the company as a part of the promotion of the product.

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PRODUCT LIFE CYCLE:

Amlopres AT was introduced in 1996 and after that it has shown considerable growth for few following years and from last short span of the time the growth of the product is stagnant and so the product is in the maturity stage.

FUTURE OF THE PRODUCT:

As Amlopres AT was first medicine of its kind it has done a reasonably good business in the Indian market but now it’s growth is stagnant and by talking to various people it is seen that sales executives of competitors are trying to force doctors to prescribe their brands on this reason. So it may happen that after few time Amlopres AT may lose some % of market share.

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FINANCIAL ANALYSIS

Net Sales have grown at a CAGR of 26% in the last three years which is commendable considering the industry has grown at only 11-12% in the same period. The growth has been driven by new product launches in the domestic market and new initiatives in the export market.

However, operating margins have declined over the period from 24.7% in FY98 to 22.3% in FY2001. The main decline has come over the last two years as the company moved into the generic generic segment in the domestic market. This segment has much lower margins than formulations and has impacted overall profitability. Also, selling expenses have increased from 2.5% of sales in FY98 to 4.4% in FY2001, again due to higher trade push strategy in the domestic market.

Net Profits have grown at a CAGR of 20.5% during the last three years, lower than sales growth. This was primarily due to decline in operating margins. Other income during the same period has grown at 13% CAGR and comprises 16% of FY2001 PBT. Interest costs have come down to almost nil from Rs 24 mn in FY98 as cash reserves increase.

ROCE and ROE of the company are amongst the highest in the industry at above 25%, but one area of concern is the declining trend. RoE has dropped from 28% in FY98 to 24.7% in FY2001 while RoE has fallen from 36% to 32% in the same period. The main reason for drop in return ratios is the high investment in financial instruments. Investments which are mainly in low yielding government securities or other debt instruments have increased at a CAGR of 40% from FY98-FY2001 and their share if capital employed has risen from 19% in FY98 to 30% in FY2001.

For the last three years, debtors have grown at a CAGR of 40%, much higher than sales growth of 26%. Turnover ratios have worsened for debtors, primarily due to increased exports. Overall investments in net current assets has however, grown at 21%.

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BALANCE SHEET (RS MN)Period ended 03/98 03/99 03/00 03/01No. of months 12 12 12 12SOURCES OF FUNDSEquity capital 199.9 199.9 599.7 599.7Capital reserve 0.8 0.8 0.8 0.8Share premium account 886.6 886.6 486.8 486.8Revaluation reserve 112.6 110.3 108.2 106.4Profit & Loss/ General reserve

2,443.4 3,426.5 4,559.6 6,052.9

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Reserves and surplus 3,443.4 4,424.2 5,155.5 6,646.9Net worth 3,643.3 4,624.1 5,755.2 7,246.6Secured loans 61.2 237.6 140.5 189.7Unsecured loans 124.7 98.6 55.2 50.6Total debt 185.9 336.2 195.7 240.3Capital employed 3,829.2 4,960.2 5,950.9 7,486.9 APPLICATION OF FUNDSGross block 1,787.5 2,138.6 2,423.8 2,838.0Accumulated depreciation (612.7) (715.9) (843.3) (997.5)Capital work in progress 50.1 26.3 37.0 31.3Total fixed assets 1,224.9 1,448.9 1,617.5 1,871.8Investments 728.2 1,404.0 1,950.0 2,229.3Inventories 1,479.0 1,584.2 2,122.0 2,753.6Sundry debtors 535.0 592.3 808.5 1,495.2Cash & bank balance 30.2 35.4 42.7 58.0Total loans & advances 1,484.7 1,685.5 1,763.0 2,032.9Sundry creditors/ Acceptances

(359.0) (398.2) (797.1) (1,090.1)

Other liabilities (241.7) (214.1) (465.6) (875.2)Provisions (1,056.4) (1,181.5) (1,093.0) (990.9)Net current assets 1,871.8 2,103.6 2,380.5 3,383.5Miscellaneous expenses 4.3 3.6 3.0 2.3Capital deployed 3,829.2 4,960.2 5,950.9 7,486.9

Turnover ratios (x)Net sales to total assets 1.3 1.1 1.2 1.3Net sales to fixed assets 3.9 3.9 4.3 5.2Net sales to working capital 2.6 2.7 2.9 2.9Net sales to inventory 3.3 3.6 3.3 3.5Gross sales to debtors 9.6 10.4 9.4 7.0Liquidity ratios (x)Current ratio 2.1 2.2 2.0 2.1Debt equity ratio 0.1 0.1 0.0 0.0Interest cover 60.0 59.5 164.2 304.6Return on (%)Networth (post tax) 28.0 24.9 23.1 24.7Capital employed (pre tax) 35.9 31.7 29.2 31.8Per share (Rs)Net earnings (EPS) 51.0 57.5 22.2 29.9Cash earnings (CPS) 55.4 64.3 24.4 32.5Dividend payout 6.1 8.3 3.3 5.0

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Book value (NAV) 182.2 231.3 96.0 120.8Asset composition (%)Net fixed assets 32.0 29.2 27.2 25.0Working capital 48.9 42.4 40.0 45.2

PROFIT & LOSS ACCOUNT (RS MN)Period ended 03/98 03/99 03/00 03/01No. of months 12 12 12 12Gross Sales 5,144.3 6,171.6 7,597.5 10,475.1Excise Duty (315.3) (470.7) (672.4) (808.3)Net sales 4,829.0 5,700.9 6,925.1 9,666.8Other income 265.9 279.9 316.4 386.2Total income 5,094.9 5,980.8 7,241.5 10,053.0Raw materials 1,715.4 1,650.5 2,241.7 3,025.7Stock adjustment (Inc)/ Dec (316.6) 25.5 (343.2) (375.9)Purchase of finished goods 1,010.3 1,114.4 1,570.1 2,211.0Cost of material 2,409.1 2,790.5 3,468.6 4,860.8Employee cost 225.0 291.0 349.2 499.0Power & fuel 75.9 93.3 106.8 129.3Advertising/ promotion/ public

56.6 97.9 170.3 333.8

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Freight & forwarding 38.6 43.1 67.7 91.6Other expenses 828.9 956.9 1,207.4 1,598.1Cost of sales 3,634.0 4,272.6 5,370.1 7,512.6PBIDT 1,461.0 1,708.2 1,871.4 2,540.4Interest & finance charges 24.4 28.7 11.4 8.3PBDT 1,436.6 1,679.5 1,860.0 2,532.0Depreciation 86.9 135.0 133.4 156.3PBT 1,349.7 1,544.5 1,726.6 2,375.7Provision for taxation 330.0 395.0 396.0 585.0Adjusted PAT 1,019.7 1,149.5 1,330.6 1,790.7Dividend payout 120.9 166.4 197.4 297.4Forex inflow 736.1 1,191.9 1,434.4 2,662.3Forex outflow 482.8 592.2 832.3 1,250.1Book value of quoted investments

75.9 30.0 30.0 30.0

Market value of quoted investments

80.9 31.7 33.8 35.3

Contingent liabilities 184.8 210.6 158.9 335.7

RATIOSAs % of net salesGross sales 106.5 108.3 109.7 108.4Excise duty (6.5) (8.3) (9.7) (8.4)Net sales 100.0 100.0 100.0 100.0Other income 5.5 4.9 4.6 4.0Total income 105.5 104.9 104.6 104.0Cost of material 49.9 48.9 50.1 50.3Employee costs 4.7 5.1 5.0 5.2Selling expense 2.0 2.5 3.4 4.4Other expenses 17.2 16.8 17.4 16.5Cost of sales 75.3 74.9 77.5 77.7Profitability ratios (%)PBIDT excl. other income 24.7 25.1 22.5 22.3PBIDT 30.3 30.0 27.0 26.3PBDT 29.7 29.5 26.9 26.2Profit before tax 28.0 27.1 24.9 24.6Profit after tax 21.1 20.2 19.2 18.5Growth ratios (% yoy)

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Net sales 13.8 18.1 21.5 39.6PBIDT 17.2 16.9 9.6 35.7PBT 31.4 14.4 11.8 37.6PAT 44.1 12.7 15.8 34.6Payout ratios (%)Tax (% of PBT) 24.4 25.6 22.9 24.6Dividend (% of PAT) 11.9 14.5 14.8 16.6

Latest Quarterly Results - 03/2002 (3 months) (Rs mn)Period ended 02/03 01/03 GrowthNo. of months (3) (3) (% yoy)Sales 3,448.9 2,466.4 39.8Other income 107.4 138.6 (22.5)Total income 3,556.3 2,605.0 36.5Expenditure (2,647.7) (2,118.0) 25.0Operating profit 908.6 487.0 86.6Interest (5.0) (0.9) 455.6Depreciation (71.5) (32.5) 120.0Profit before tax 832.1 453.6 83.4Tax (215.0) (110.0) 95.5Profit after tax 617.1 343.6 79.6Extra-ord.items/PYA 0.0 0.0 -Adjusted profit after tax 617.1 343.6 79.6OPM (%) 23.2 14.1 -Equity 599.7 599.7 -EPS (Rs) 41.2 22.9 -

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Notes:1. Provision for tax includes deferred taxation.2. The Company is exclusively in the pharmaceutical business segment.3. The above results were taken on record at the meeting of the Board of Directors held on April 29, 2002.

BIBILIOGRAPHY:

1. www.cipla.com2. www.cipladoc.com3. www.indiainfoline.com4. www.google.com5. Business Today November-2002 issue6. Cipla Company literature

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http://www.google.com/

http://WWW.INDIAINFOLINE.COM/

http://WWW.CIPLADOC.COM/

http://WWW.CIPLA.COM/

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