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PLETHICO PHARMACEUTICALS LIMITED. Agenda. Company Overview Expansion Project & Status Growth Strategy Journey Ahead Summary. Company Overview. Background - Company. - PowerPoint PPT Presentation
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PLETHICO PHARMACEUTICALS LIMITED
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Agenda
1. Company Overview
2. Expansion Project & Status
3. Growth Strategy
4. Journey Ahead
5. Summary
3
Company Overview
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Background - Company
Plethico was incorporated in 1991 to undertake manufacture of Formulations and undertake focused marketing of ethical/ prescriptions market.
Focused on innovation and pioneered introduction of:
Doxycycline based unique anti-biotic formulation
Co-trimoxazole based unique anti-bacterial formulation
Introduced for the first time in India, novel ayurvedic / herbal preparation (Single Herb Fenugreek extract)
Adopted the “Branded Generic” model for marketing formulations in India & abroad.
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Background - Company
TODAY: The company has made it’s presence felt Internationally in niche segments like:
Herbal & Nutraceuticals preparations including Food
supplements
OTC / Consumer Products
NDDS
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Background - Company
Operations in 45 countries including India
Export targets at the semi-regulated / un-regulated markets of
Eastern Europe (including the Common Wealth of Independent States (CIS))
The African nations
THIRD FRONT:
South East Asian (SEA) nations
Gulf Co-operation Council (GCC)
Latin American Countries (LAC)
Over 300 sales representatives and front line-managers are employed across markets including 143 in India.
RussiaKazakhstanMoldovaGeorgia
TurkmenistanUkraineUzbekistanTajikistanKyrgyzstanAzerbaijanLatviaLithuania
Slovakia
Ivory CoastDR CongoBenin
SudanUgandaKenyaEthiopiaEritreaSouth AfricaNigeria
CameroonSierra Leone
PeruChileEcuadorColombiaVenezuela
KuwaitYemenDubai
A TRULY GLOBAL REACH
VietnamPapua New GuineaMalaysiaCambodiaPhilippines
El SalvadorNicaraguaCosta RicaPanamaGuatemala
Caribbean
Sri Lanka
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Shareholding Structure as on 30th June, 2006
PROMOTORS 87.0059%
FOREIGN INST. INVESTORS
3.8128%
PUBLIC 3.9025%
NON RESIDENT INDIANS 0.0311%
MUTUAL FUND 3.0225%
NATIONALISED BANKS
0.0074%
CLEARING MEMBER 0.0286%
OTHER BODIES CORPORATE
0.8977%
VENTURE FUNDS/PVT
EQUITY FUNDS1.2916%
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Sales Turnover 30.6.06 – USD 48.88 Million (@1$=INR 45.5)(9 Months unaudited results)
Break up of Total Turnover
66%
34%
Export Domestic
Countrywise Export Break up
34%
33%
15%
18%
India CIS Africa Thd Frt
Domestic Break Up
84%
16%
Contract Manufacturing Domestic OTC
Export Turnover
72%
28%
Herbal /NutraceuticalsAllopathic/Disposables
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Annual Sales Turnover 30.9.06 (E) – USD 68.13 Million (@ 1$= INR 45.5)
Break up of Total Turnover
66%
34%
Export Domestic
Countrywise Export Break up
35%
32%
18%
15%
INDIA CIS AFR THD FT
Domestic Break Up
64%
36%
Contract Manufacturing Domestic OTC
Export Turnover
76%
24%
Herbal /NutraceuticalsAllopathic/Disposables
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Key Financial Indicators
The Company had sold off its Domestic division (Ethical Allopathic division) to M/s Shreya Life Science Pvt Ltd in October 2003. The extraordinary income of Rs 698.50 Mn is included in Profit Before Tax
(PBT) for FY 2004.
Particulars SEP 30, Jun-30 SEP 30, SEP 30,JUNE 30, JUNE 30, JUNE 30, CAGR 2006 (E) 2006 2005 2004 2003 2002 2001
(9 Mth) (15 Mth)Total Income 3,100 2,224 2,245 2,376 1,487 1,272 1,230 14.4%EBITDA 990 709 674 504 245 193 181 32.1%Interest & Fin. Charges 40 34 29 58 42 19 21Depreciation 60 51 50 53 33 10 7Profit After Tax 850 594 561 1,056 164 161 150 29.7%EBITDA Margin 31.9% 31.9% 30.0% 21.2% 16.5% 15.1% 14.7%PAT Margin 27.4% 26.7% 25.3% 52.8% 11.4% 13.4% 13.1%
Year/Period Ended (Figs in INR in Millions)
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Key Financial Indicators
Particulars Dec-31 SEP 30, SEP 30, JUNE 30, JUNE 30, JUNE 30,2005 2005 2004 2003 2002 2001
(3 mth) (15 Mth)
Capital Employed 3,434 3,301 2,609 1,598 1,498 1,056 Net Block (Including Capital WIP) 969 986 990 908 716 404 Working Capital 1,204 1,145 765 640 737 582 Net Worth 2,809 2,623 2,084 1,060 907 766 Borrowings 625 678 525 537 591 290 Debt Equity Ratio 27.0% 32.0% 32.0% 97.0% 89.0% 61.0%Return on Net Worth 26.4% 21.4% 50.7% 15.5% 17.7% 19.5%Earning Per Share (Weighted Average) 24 74 139 22 21 20
Year/Period Ended (Rs. In Millions)
CAGR of Networth for 2001-2005 is 30.0%
Note: The Equity Capital Structure till 30th September was INR 76 Million, which was subsequently increased by issuing Bonus Shares and raising the same to INR 304 Million. So, Comparability post this period will have to be made, keeping this point in mind. The update reflects the pre- issue capital as the IPO took place in April ’06. (Figs in Blue are Annualised)
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Expansion Project &
Status
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Expansion Project
Project S.No.
Particulars Amount (INR in Millions) Earmarked
Expected date of Completion
Status
I Acquisition of unit at Jammu (Phase I) , Organic Farming (Phase II), Expansion of Capacity (Phase III)
309 June ’06 (Ph.I) Aug ’06 (Ph.II) June ’07 (Ph. III)
Currently focusing on Sikkim for unit.(Ph.I & III clubbed)Land for Organic farming bought.
II Up gradation of Kalaria Plant, Indore to comply with UK MHRA requirements
257 Dec ’06 Work is on in full swing
III R&D centre at Manglia, Indore 132 Feb ’07 Equipments have been ordered
IV Acquisition of a Brand/ Company in OTC sector
280 June ’06 Scouting is on for Indian Brands also evaluating Foreign Brands. High valuations being sought.
V Corporate House 194 June ‘07 Currently on Hold. Management perception prop. prices will correct.
Growth Strategy
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Growth Strategy
A. INVESTMENT STRATEGY: The Company has invested in
future growth by building a two pronged investment footprint.
“Organic growth footprint” - Build robust facilities & nurture brands.
“Inorganic Growth footprint” - Invest strategically into strong
setup’s
Marketing & Distribution outfit (called M&D Strategy)
Manufacturing cum M&D outfit (Called MM&D Strategy).
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The Company has implemented the M&D strategy for consolidation & growth in
the Common Wealth of Independent States (CIS) in the following Countries. The
stake held by the Company is as under:
Kazakhstan – 75%*
Kyrgyzstan – 75%*
Moldova – 63%*
Russia – 51%
Ukraine – 51%
Azerbaijan – 51%*
NOTE: Total amount invested is approx USD 26 Million till date. It has completed all the
requisite formalities in 4* Countries. For Russia & Ukraine all formalities are expected to be
completed latest by Dec ’06.
Growth Strategy (Cont’d)
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The Company has implemented the MM&D strategy for consolidation & growth
in Africa
Kenya – Plethico Africa Ltd - via joint venture for setting up world
class manufacturing unit with liquid and ointment plant, allowing access to
17 COMESA Countries (Common Market For Eastern & Southern Africa)
This unit is expected to cater to the World Bank supported Tender
Market in Africa as a “African entity” and also undertake manufacture of
Ethical formulations for Kenyan markets to begin with.
The Marketing & Distribution outfit will have two wings; one the Ethical
division and second the OTC division
Plethico (India) is interested in marketing it’s Herbal & Nutraceutical
formulations through the OTC division.
Growth Strategy (Cont’d)
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Growth Strategy (Cont’d)
B. BACKWARD INTEGRATION: EXECUTED:
Backward Integration by installation of State of the art:
“Klockner Hansell GMBH” machinery for manufacturing Lozenges
“Aoki Japan” machine for PET bottles.
CURRENTLY WORKING ON:
Entry into regulated markets with herbal products via Organic Farming in Jammu.
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Growth Strategy (Cont’d)
C. INCREASED FOCUS ON HERBALS & NUTRACEUTICALS.:
80%0%
28%
48%
21%
2%
3%
2%
13%
3%DOM - OTC - H&N
DOM - ETH - Allop
DOM - CM/TM
EXP - OTC - H&N
EXP - OTC - Allo &BD
FY05
FY03
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Growth Strategy (Cont’d)
Entry into regulated markets of UK/ Europe.
Innovative products like NDDS for diabetes and cancer patients.
Focussed approach to Lat Am, GCC and SEA countries.
Pan India reach through confectionary, foot care and oral care products in OTC India.
Domestic reach:
field force to increase from 100 to 500 over 2 years
Strategic shift to Sikkim to cater to IT planning till 2022.
Fillip to operations through manufacturing JV in Kenya.
D. OTHER INITIATIVES.:
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Journey Ahead
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1. Compliance with UK MHRA requirements at Kalaria, MP, India site.
2. Acquire a Company with few Brands in Europe / UK, having a strong distribution setup in place. This unit will seek manufacture of these brands in Kalaria plant, which will be in “Approvable status”.
3. This will trigger an Inspection at Kalaria. (We expect approvals by March ’08.)
4. Kalaria unit will be earmarked for Regulated Countries.
5. Kandla & Manglia unit will be earmarked Semi / unregulated Countries.
6. November ’08 may see Plethico back in the Ethical market in the Lifestyle drug segment.
7. Explore Inorganic growth opportunities at all points of time.
The Journey Ahead…..
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Summary
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Summary
Non infringing model of Business
State of art manufacturing units in Indore possessing capability of manufacturing all possible dosage forms.
Strong formulation development technique including NDDS like effervescent tablets.
Strong M&D tie up in Russia, CIS & Cambodia
Strong management team and motivated workforce
Foray into Backward Integration for cultivating essential critical herbs for captive consumption thus enabling high end finger printing technology for herbal formulations
Strong system oriented company
Product list exceeding 400, transcending more than 39 therapeutic categories exporting to more than 45 countries across the globe
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THANK YOU
Q&A
PLETHICO PHARMACEUTICALS LIMITED