1
CHAPTER I PROFILE OF INDUSTRIES
1.1 HISTORICAL BACKGROUND OF PHARMACEUTICAL INDUSTRY
On 1st May 1960 Gujarat State got separated from greater Bombay State. Prior to
that, about hundred years, Gujarat based Companies like Alembic Chemical Works
Ltd. and Sarabhai Chemicals were producing Galenicals, Syrups, Elixirs, Powders,
and Extracts etc.
At the time of independence, India was not self-sufficient for medicines. Many of the
formulations and bulk drugs were imported. Exports of medicine were almost
negligible. Total production of Pharmaceutical products in 1947, the year of
independence - was in the tune of Rs.100 million only. 1
According to data published by the Department of Pharmaceuticals, Ministry of
Chemicals and Fertilizers, the total turnover of India's pharmaceuticals industry
between September 2008 and September 2009 was US$ 21.04 billion. Of this the
domestic market was worth US$ 12.26 billion.
The Indian pharmaceuticals market is expected to reach US$ 55 billion in 2020 from
US$ 12.6 billion in 2009, according to a report India Pharma 2020: Propelling access
and acceptance, realizing true potential by McKinsey & Company. The report states
that the market has the further potential to reach US$ 70 billion by 2020 in an
aggressive growth scenario.
Moreover, according to an Ernst & Young and industry body study, the increasing
population of the higher-income group in the country, will open a potential US$ 8
billion market for multinational companies selling costly drugs by 2015. Besides, the
report said the domestic pharma market is estimated to touch US$ 20 billion by 2015,
making India a lucrative destination for clinical trials for global giants.
Further, IMS Health India, which tracks drug sales in the country through a network
of nationwide drug distributors, estimates the healthcare market in India to reach US$
31.59 billion by 2020.The Indian pharmaceutical market reached US$ 10.04 billion in
size, with a value-wise growth rate of 20.4 per cent over the previous years
2
corresponding period on a Moving Annual Total (MAT) basis for the 12 months
ended July 2010, according to data from IMS Health India.
Cipla maintained its leadership position in the domestic market with 5.27 per cent
share, followed by Ranbaxy. The highest growth in the domestic market was for
Mankind Pharma, which grew 37.2 per cent. Leading companies in the domestic
market such as Sun Pharma (25.7 per cent), Abbott (25 per cent), Zydus Cadila
(24.1 per cent), Alkem Laboratories (23.3 per cent), Pfizer (23.6 per cent), GSK India
(19 per cent), Piramal Healthcare (18.6 per cent) and Lupin (18.8 per cent) had
impressive growth during July 2010, shows the data.
According to the All India Organisation of Chemists and Druggists (AIOCD), the
pharmaceuticals industry in India will grow by over 100 per cent over the next two
years.
According to Shinde, President, AIOCD, the pharmaceutical industry is currently
growing at the rate of 12 per cent, but this will accelerate soon. The sale of all types of
medicines in the country stands at US$ 9.61 billion, which is expected to reach around
US$ 19.22 billion by 2012.
India's domestic pharmaceutical market is valued approximately at US$ 12 billion in
2010, and has shown a strong growth of 21.3 per cent for the 12 months ending
September 2010, as per consulting firm Pricewaterhouse Coopers (PwC). It estimates
that over the next 10 years, the domestic market will grow to US$ 49 billion, at a
compounded annual growth rate (CAGR) of 15 per cent.
According to Mr Srikant Kumar Jena, Union Minister of State for Chemicals and
Fertilisers, India tops the world in exporting generic medicines worth US$ 11 billion
and currently, the Indian pharmaceutical industry is one of the world's largest and
most developed.2
The industry was once tarnished for making cheap clones of Western medicines and
selling them in developing countries. However, this is no longer the case, seasoned in
the basics of medicine making; it is now playing a significant role in the global drug
industry. The strengthening of patent law and the increasing cost pressures on name-
brand drug makers in the West are fueling the growth tempo of Indian drugs industry.
According to the consultancy KPMG, the industry is expected to grow at a compound
3
annual growth rate of about 18% till 2013-14. The Indian pharmaceutical market has
become the third largest in the world in terms of volume and is ranked 14th in terms of
value at over Rs.1 trillion. During 2009-10, Indian pharmaceutical was among the few
sectors that managed revenue growth despite the global economic recession. Another
positive development has been the development of biotechnology sector in India.
Driven by increasing affordability, the industry is undergoing a major transformation
and is slated to move into the worlds top-ten pharmaceutical market by 2015.
During the 1990s, there were hardly any exports to regulated markets from India.
However, today over 40% of $8 billion exports to North America and Western Europe
alone. The industry has a presence in 150 markets, which is more than any industry in
India. According to the US Food and Drug Administration data, it also accounts for
1,735 Drug Master Files as against 1,054 from US domestic companies and more than
the combined total of European and Japanese companies in 2008. This is a remarkable
achievement in a decade. In 1998, India filed only three Abbreviated New Drug
Applications (ANDAs). In 2009, it filed 181 ANDAs.3
Table 1.1: Indian Pharmaceutical Evolution
1970 1980 1990 2000 2010
Phase I
Early Years
Phase II
Government
Phase
Phase III
Development
Phase
Phase IV
Growth
Phase
Phase V
Innovation and
Research
Market share
domination
foreign
companies
Relative
absence of
organized
Indian
companies
Indian Patent
Act 1970
Drug prices
capped
Local
companies
begin to make
an impact
Process
development
Production
infrastructure
creation
Export
initiatives
Rapid
expansion of
domestic
market
International
market
development
Research
orientation
New IP Law
Discovery
research
Convergence
Source: Pharmascience Inc.
The Indian Pharmaceutical sector is highly fragmented with more than 20,000
registered units. It has expanded drastically in the last two decades. The leading 250
4
pharmaceutical companies control 70% of the market with market leader holding
nearly 7% of the market share. It is an extremely fragmented market with severe price
competition and government price control.
The pharmaceutical industry in India meets around 70% of the country's demand for
bulk drugs, drug intermediates, pharmaceutical formulations, chemicals, tablets,
capsules, orals and injectibles. There are about 250 large units and about 8000 Small
Scale Units, which form the core of the pharmaceutical industry in India (including 5
Central Public Sector Units). These units produce the complete range of
pharmaceutical formulations, i.e., medicines ready for consumption by patients and
about 350 bulk drugs, i.e., chemicals having therapeutic value and used for production
of pharmaceutical formulations.
Following the de-licensing of the pharmaceutical industry, industrial licensing for
most of the drugs and pharmaceutical products has been done away with.
Manufacturers are free to produce any drug duly approved by the Drug Control
Authority. Technologically strong and totally self-reliant, the pharmaceutical industry
in India has low costs of production, low R&D costs, innovative scientific manpower,
strength of national laboratories and an increasing balance of trade. The
Pharmaceutical Industry, with its rich scientific talents and research capabilities,
supported by Intellectual Property Protection regime is well set to take on the
international market.4
Aggregate net sales of 132 pharmaceutical companies consisting of 125 domestic and
seven MNC subsidiaries and associates posted an 11% increase to Rs.13690 crore in
the quarter ended June 2009. Revenue growth from the EU and the US regions was hit
despite improvement in volumes. This is mainly due to the sharp appreciation of the
Indian rupee against the pound euro and US dollar. As a result of rise in sales and
expansion of margin, operating profit rose 22% to Rs.3051 crore. Capacity expansion
and rising interest rates together led to a 72% spike in interest costs to Rs.235 crore
and 11% increase in depreciation to Rs.404 crore, respectively. Thus, growth in profit
before tax was restricted to 11% to Rs.2410 crore. Aggregate net profit of 125
domestic pharmaceutical companies posted an impressive rise of 24% in net profit to
Rs.1755 crore on healthy growth in net sales by 11% to Rs.12397 crore.5
5
The Indian pharmaceutical industry reported double-digit growth in net profit in the
quarter ended September 2010. Rupee appreciation, rise in employee costs and
increase in raw material prices dampened the show. Aggregate net sales of 138
companies constituting 131 domestic pharmaceutical companies and seven MNCs
pharmaceutical subsidiaries and associates grew 14% to Rs.19044 crore in the quarter
ended September 2010 over the September 2009 quarter. Aggregate net sales of 16
BSE Healthcare Index companies (excluding Piramal Healthcare as it has earned a
one-time exceptional income of Rs.16224 crore) grew 18% to Rs.14764.21 crore
despite the rupee appreciation affected growth to some extent in the quarter ended
September 2010. Net profit increased 30% to Rs.2636.62 crore on forex gains.
MNC companies reported better performance than domestic pharmaceutical
companies by growth in turnover and profit. Aggregate net sales of seven MNC
pharmaceutical companies jumped 15% to Rs.1463 crore.
The Indian pharmaceutical industry is witnessing sluggish prescription trends, pricing
pressure from the European Union, intensified generic competition, and pricing
reforms by Germany. The growth is especially coming from the US, Russia and CIS
regions.6
Table 1.2: Pharma Sector Aggregates (Rs in Crores)
Total Domestic MNCS
1009(03) VAR (%)
1009(03) VAR (%)
1009(03) VAR (%)
Sales 19044 14 17581 14 1463 15
OPM (%) 21.3 20.7 28.5
OP 4057 2 3640 1 417 16
Other Income 403 150 359 185 44 26
PBIDT 4460 8 3999 7 461 17
Interest 272 -34 298 -30 -26 53
PBDT 4188 13 3701 12 487 18
Depreciation 681 17 666 17 15 7
PBT 3507 12 3035 11 472 19
Tax 623 3 471 -1 152 21
Net Profit 2884 14 2564 13 320 18
Source: Capital line Databases.
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India is a low-cost hub for Contract Research and Manufacturing Services (CRAMS),
and with many big pharmaceutical companies finding it difficult to grow, focus is
shifting towards India. Till 2008, developed pharmaceutical markets (US, Canada,
UK, Western Europe and Japan) contributed more than 50% of global pharmaceutical
growth and held a disproportional tilt in the market. A group of seven emerging
markets now rechristened as pharmerging countries, i.e., Brazil, India, Turkey,
Mexico, Russia, South Korea and China- are eclipsing those developed countries now.
By 2013, these markets are expected to contribute 70% of the global pharmaceutical
market growth.7
In October 2010, the pharmaceutical industry posted a substantially lower growth of
6.5%, as against 20% in September 2010, mainly due to lower sales of anti-infective
and cough and cold medicines. In October 2009, the domestic retail market had
clocked a huge growth of nearly 30%, while during the previous year in October
2008, it posted a negative growth.8
According to a report by PricewaterhouseCoopers, India will join the league of the top
10 global pharmaceutical markets in terms of sales by 2020 with the total reaching
$50 billion.9
1.2 PHARMACEUTICAL INDUSTRY IN GUJARAT
Gujarat's pharmaceutical industry, which led the way with indigenous production of
medicines and the march towards self-sufficiency in drugs and pharmaceuticals in a
newly-independent India, completes its centenary this year.
While Bengal Chemicals, now closed, was the first modern pharmaceutical company
in India, Vadodara based Alembic Ltd, the second, celebrated its centenary in 2007.
The State was the first to manufacture APIs and finished dosage form in India,
manufacture pharmaceutical machinery, lead the way with clinical research
organizations and become the first to undertake pre-clinical safety and toxicology
studies in the country.
Alembics potent combination of pioneering vision, entrepreneurial spirit, sound
infrastructure and the ability to adapt to the changing times have helped shape Gujarat
as a pharma hub. From its beginning in 1907 when Alembic was set up in the then
princely state of Baroda, the state today serves as the corporate headquarters and a
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manufacturing base for several leading Indian pharmaceutical companies and
multinationals.
Gujarat has four pharma manufacturing clusters at Ahmedabad, Vadodara,
Ankleshwar and Bharuch-Vapi-Valsad belt.10 Being home to around 3,500 drug
manufacturing units, Gujarat is one of the countrys most enterprising states in the
pharmaceutical sector. It boasts of 42 percent share of Indias pharmaceutical turnover
and 22 percent share of exports.11
The industry had received strong support from the academic field. In 1940, the Drugs
Laboratory in Vadodara was established, followed by LM College of Pharmacy.
Further in 1989, the B.V.Patel Education Trust, Ahmedabad and Gujarat Branch of
Indian Pharmaceutical Association (IPA) established the B.V. Patel Pharmaceutical
Education and Research Development (PERD) Centre in Ahmedabad.12
45% of the pharmaceuticals used by the nation also happen to be from Gujarat.13
The present research covers the study of the below mentioned five pharmaceutical
companies in the state of Gujarat.
Alembic Limited
Torrent Pharmaceutical Limited
Cadila Healthcare
Sun pharmaceutical
Lupin Laboratories Ltd.
A brief profile of the above mentioned companies is as follows.
1.3 PROFILE OF ALEMBIC LIMITED
One of the oldest pharmaceutical companies in India, Alembic formerly known as
Alembic Chemical Works Company has already completed 100 years of operations.
Among other things, the company makes Glycodin, the most trusted cough syrup for
over 50 years. It manufactures pharmaceuticals and chemicals, bulk drugs (penicillin
and other antibiotics) and formulations. In 1995, the veterinary division of the
company was tied up with the animal health division of Hindustan Ciba-Giegy to
export eight veterinary products to Ciba (Bangladesh). In 1998-99, the installation
work of Cephalosporin-C recovery plant has been completed and that of 7-ACA was
8
commissioned in Oct.,2000.The Bulk Drug unit of Darshak Limited was amalgamated
with the company with the approval of High court of Gujarat and the legal formalities
was also completed w.e.f. 16.09.2002. As per the scheme, the shareholders of
Darshak Ltd were allotted shares in the ratio of 6 shares of Alembic for every 100
shares of Darshak Ltd. In Feb. 2001, the company has launched Glycodin Activ cold
and flu tablets that are available over-the-counter (OTC) at Rs 12 (local taxes extra)
for a blister pack of 10. The company got ISO-9002 and ISO-14001 certification.
Alembic has finalized a major business restructuring plan under which it will create a
new division for cardiovascular and diabetic drugs while hiving of some odd brands
into a franchisee company for their marketing. The company has introduced novel
anti diabetic product Nateglinide in the brand name of NATELIDE. The company
plans to set up R&D Centre at Vadodara covering 7500 square metres. The facility
would consist of Chemistry, Analytical and Biological Laboratories. In order to make
more significant in Generic market and also to make it US FDA qualified the
company made a investment at its Panelav plant. This facility is expected to be
inspected in the first quarter of 2004.14
Alembic started in 1907 & now it is Asia's most respected integrated pharmaceutical
company with manufacturing facilities in Baroda and Baddi, India with R&D
facilities spearheading landmark research in the areas of Chemistry, Microbiology,
and Pharmaceutical Technology. and Bio-Equivalence. They have launched "BIO
ARC RESEARCH CENTRE" at Baroda to further capitalize their strength in
research.
Needless to say, Alembic has a turnover and growth rate that takes it into the top
bracket of Indian pharmaceutical companies with a series of brands among the top
five in their respective categories.
Alembic is a certified ISO-9002 and ISO-14001 company with manufacturing
practices and facilities that conform to WHO-GMP guidelines ensuing that every
Alembic product meets the most stringent quality standards. No wonder, then,
Alembic can be found improving the quality of life in over 75 countries around the
world.15
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1.4 PROFILE OF TORRENT PHARMACEUTICALS LIMITED
It all began with the toil of one enterprising individual, Shri. U N Mehta, when he
ventured on his own to create history in the Indian pharmaceutical industry by
implementing successfully the concept of niche marketing. His journey, characterized
by ups and downs, reached a milestone in 1970, with the launch of Trinicalm Plus, an
effective tranquilizer in the niche segment, central nervous system (CNS).
The foundations for Torrent were laid when 'Trinity Laboratories' began operations
under the able guidance of Shri Mehta whose efforts are worthy of emulation.
'Trinity' was renamed 'Torrent' and with this not only did the company get a new
name, it also focused on establishing its own manufacturing facilities in the early 80s.
Torrent augmented its efforts with the expansion of its manufacturing capacity,
emphasis on marketing and creating business opportunities through focus on exports.
Torrent Pharmaceuticals Limited recorded a quantum leap in the year 1994. It has also
been rated India's ninth best company among capital intensive companies in terms of
ROCE in a study by ETIG-BCG in 2001.
In recognition of the consistent performance Torrent Pharmaceuticals Limited has
been receiving accolades from various quarters, such as the President's award for
highest pharmaceuticals exports of Rs.1570 million in 1991-92. The Company that
had a humble beginning has now grown to become one of the leading players in
pharmaceuticals.16
The flagship company of Torrent group, Torrent Pharmaceuticals Limited, is a
dominant player in the therapeutic areas of cardiovascular (CV) and central nervous
system (CNS) and has achieved significant presence in gastro-intestinal, diabetology,
anti-infective and pain management segments.
To cater to new niche segments and sharpen its focus among customers, Torrent
Pharma has six marketing divisions, each catering to defined therapeutic segment. A
2300 strong field force caters to around 2,00,000 doctors across the country, which
makes it rank fifth in terms of market reach.
Torrent Pharmas competitive advantage as a manufacturer stems from its world-class
manufacturing facilities. Its manufacturing facilities at Indrad, Gujarat, comply with
WHO, cGMP, MHRA and TGA norms and have received ISO 9001, ISO 14001 and
10
OHSAS 18001 (Occupational Health and Safety Management System) and ISO/IEC-
17025 certifications.
With a view to cater to its growth requirements, Torrent Pharma commissioned a new
formulations manufacturing facility at Baddi, Himachal Pradesh, in November 2005.
The facility has a capacity to manufacture 3600 million tablets, 400 million capsules
and 18 million Oral Liquid bottles, per annum and would cater to the domestic
formulations requirement.
Torrent has a modern and well-equipped state-of-the-art R&D Centre, built with an
investment of US $ 40 million. It is manned by more than 525 highly qualified
scientists, with a combined experience of over 2500 scientific man-years in Drug
Discovery and Development. Torrent Pharma has earmarked 9% of sales year-after-
year for R&D advancement.
In the International operations arena, Torrent Pharma exports to more than 50
countries around the world with over 1000 product registrations. The international
business has been broadly divided into five zones- USA, Latin America, Russia and
CIS, Western Europe and CEE and Rest of the World (ROW). For its export
excellence in International Business, Torrent Pharma has won several prestigious
export awards.
Torrent Pharma is now gearing up to enter the advanced highly regulated international
markets. Torrent Pharma has incorporated Zao Torrent Pharma in Russia, Torrent Do
Brasil Ltd. in Brazil, Torrent Pharma GmbH in Germany, Torrent Pharma Inc. in
USA and Torrent Pharma Philippines Inc. in Philippines. These wholly owned
subsidiaries will become a springboard for entry into several regulated and less
regulated international markets.17
1.5 PROFILE OF SUN PHARMACEUTICALS LIMITED
Sun Pharma began in 1983 with just 5 products to treat psychiatry ailments. Sales
were initially limited to 2 states - West Bengal and Bihar. Sales were rolled out
nationally in 1985. Products that are used in cardiology were introduced in 1987, and
Monotrate, one of the first products launched at that time has since become one of our
largest selling products. Important products in Cardiology were then added; several of
these were introduced for the first time in India.
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Sun Pharma was listed on the main stock exchanges in India in 1994; and the Rs. 55
crore issue of a Rs. 10 face value equity share at a premium of Rs. 140/- was
oversubscribed 55 times. The minimum 25% that was required under the regulations
then for listing was offered to the public, the owner family continues to hold a
majority stake in Sun Pharma. They used this money to build a greenfield site for API
manufacture, as well as for acquisitions. For the acquisitions, typically companies or
assets that could be turned around and brought on track were identified.
Their first API manufacturing plant was built in Panoli in 1995, for access to high
quality actives ahead of competition, and to tap the vast international opportunity for
speciality APIs.
Another API plant, the Ahmednagar plant, was acquired from the multinational Knoll
Pharmaceuticals in 1996, and upgraded for approvals from regulated markets, with
substantial capacity addition over the years. This was the first of several sensibly
priced acquisitions, each of which would bring important parts to the long-term
strategy
By 1997, their headquarters were shifted to Mumbai, the commercial capital of the
country. We began on the first of our international acquisitions with an initial $7.5
million investment in Caraco Pharm Labs, Detroit. By 2000, we had completed 8
acquisitions, each such move adding new therapy areas or offering an entry to
important international markets. A new research center was set up in Mumbai for
generic product development for the US market. In India, as new therapy areas were
entered into post acquisition; customer attention, product selection and focused
marketing helped us gain a foothold in areas like orthopedics, gynecology, oncology,
etc. From a ranking at 38th in 1994, by the year 2000 Sun Pharmaceutical was ranked
5th with a leadership in 8 of the 11 therapy areas that they were present in. The year
2000 was the year of turnaround at the US subsidiary, Caraco, as it began to receive
approvals after successful inspection by the USFDA. In December 2004, a research
center spread over 16 acres was inaugurated by the President of India, with special lab
space for drug discovery and innovation.
The tally at the end of 2005
15 manufacturing plants in 3 continents.
5000 employees
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2 World class research centers
Brand selling in markets worldwide
A growing presence in the US generic market
Increasing research investments
40% of sales from international markets18
GROUP COMPANIES
Caraco Pharmaceutical Laboratories
Based in Detroit, Michigan, Caraco develops, manufactures, market and distributes
generic and private label pharmaceuticals* and markets them throughout the United
States. The corporation's present portfolio consists of a number of products in various
strengths and package sizes, across a variety of therapeutic segments, including
epilepsy and hypertension.
Caraco's manufacturing facility and executive offices were constructed in 1991, after
a $9.1 million loan from the Economic Development Corporation of the city of
Detroit. Since August 1997, capital infusions and loans have primarily come from Sun
Pharma.
Sun Pharma's investment in and support of Caraco has resulted in, since the second
quarter of 2002, Caraco achieving the sales to support its operations. As of March
2007, Sun Pharma owns approx 75% on a diluted basis of the outstanding common
shares of Caraco. Sun Pharma has two R&D centers in Baroda and Mumbai, where
development work for generics is done.
Sun Pharmaceutical Industries Inc. (SPI)
Sun Pharmaceutical Industries Inc is a Michigan Corporation and a wholly owned
subsidiary of Sun Pharmaceutical Industries Ltd, India
In the second half of 2004, Sun Pharma acquired the trademarks, manufacturing
know-how and other intellectual property of certain pharmaceutical products from
Women's First Healthcare, Inc, which was under bankruptcy proceedings. On
completion of the acquisition in December 2004, these products were assigned to Sun
Pharma Inc.
13
In December 2005, Sun Pharma Inc completed the purchase of dosage form
manufacturing operations of Able Labs in the US for USD 23.15 million from the US
Bankruptcy Court of the District of New Jersey, Trenton. A plant spread over 35,000
sq ft, in Bryan, Ohio, manufactures liquids, creams, and ointments. This plant was
purchased from Valeant Pharma.
The Ohio plant is now approved by the USFDA and the Cranbury plant expects to
receive approval shortly.
In January 2005, the company entered into a distribution and sale agreement with
Caraco. Under the agreement, Caraco distributes and sells SPIs products using its
business organization, management personnel, and distribution set up.
Sun Pharmaceutical (Bangladesh)
Sun Pharmaceutical (Bangladesh) is a private limited company incorporated in March
2001 under the Companies Act 1994. This company was formed jointly with Sun
Pharma, City Overseas Ltd, a company incorporated in Bangladesh and Sun Pharma
Global Inc, a company incorporated under the laws of the British Virgin Islands. The
company began commercial operations in October 2004. The company owns and
operates a pharmaceutical factory and makes pharmaceutical products that are sold in
the local market. It currently markets 48 products and had reported a loss of 15 mill
Taka for the year ending March 07. (Previous year: 44 mill Taka loss).
Alkaloida Chemical Company Exclusive Group Ltd.
ICN Hungary, purchased from Valeant Pharmaceuticals in 2005, is one of the few
units worldwide, authorized to make controlled substances. ICN Hungary has now
been renamed Alkaloida Chemical Company. This 170 acre site has facilities spread
over 1,75,000 sq ft for the manufacture of bulk actives, with 500 KL capacity and
designated areas to make controlled substances. It has a 150,000 sq ft facility for
different dosage forms such as film coated and effervescent tablets, capsules, etc. A
large 65,000 sq ft research center has labs across synthetic chemistry, instrumentation
analytical and structural elucidation. The site is operational with 450 people and
additional recruitments are planned over time.19
14
1.6 PROFILE OF CADILA HEALTHCARE LIMITED
'Cadila Healthcare' is an Indian pharmaceutical company head quartered at
Ahmedabad in Gujarat state of western India. The company is the fifth largest
pharmaceutical company in India. It is a significant manufacturer of generic drugs.
Cadila Laboratories was founded in 1952 by Shri Ramanbhai Patel (1925-2001),
formerly a lecturer in the L.M. College of Pharmacy, and his business partner Shri
Indravadan Modi. The company evolved over the next four decades into one of India's
established pharmaceutical companies. In 1995 the Patel and Modi families split, with
the Modi family's share being moved into a new company called Cadila
Pharmaceuticals Ltd. and Cadila Healthcare became the Patel family's holding
company. Cadila Healthcare did its IPO on the Bombay Stock Exchange in 2000. Its
stock code on the Bombay exchange is 532321.
In 2001 the company acquired another Indian pharmaceutical company called German
Remedies. On June 25, 2007, the company signed an agreement to acquire 100 per
cent stake in Brazils Quimica e Farmaceutica Nikkho do Brasil Ltda (Nikkho) for
around 26 million dollars From nine pharmaceutical production operations in India as
well as a major R&D operation Zydus Cadila develops and manufactures a large
range of pharmaceuticals as well as diagnostics, herbal products, skin care products
and other OTC products. The company also makes EverYuth Naturals Walnut Scrub
& Ultra Mild Scrub -India 's leading scrub brand , EverYuth Naturals Golden Glow
Peel-Off-the no. 1 in the peel-off category and a face wash range .It is also the maker
of Sugar Free, India's most popular artificial sweetener, and Nutralite, India's most
popular cholesterol-free margarine.20
Cadila Healthcare Limited is a pharmaceutical company that discovers, develops,
manufactures and markets a range of healthcare products. Its operations range from
active pharmaceutical ingredient to formulations, animal health products and
cosmeceuticals. During the fiscal year ended March 31, 2009, it launched over 25 new
products and over 30 line extensions in the formulations market. Zydus
Pharmaceuticals (USA) Inc., its subsidiary in the United States. It has manufacturing
facilities for APIs and formulations, spread across five states, which include Gujarat,
Maharashtra, Goa, Himachal Pradesh and Sikkim. In February 2009, Zydus Family
Trust acquired 73.91% of interest in the Company. As a result, Zydus Family Trust
15
holds 74.56% interest in the Company. In December 2009, Zydus Healthcare SA
(Proprietary) Limited, a subsidiary of the Company, acquired 30% interest in Simayla
Pharmaceuticals (Proprietary) Limited. Subsequently it became the Company's wholly
owned subsidiary.21
1.7 PROFILE OF LUPIN LABORATORIES LIMITED
Headquartered in Mumbai, India, Lupin Limited today is an innovation led
transnational pharmaceutical company producing a wide range of quality, affordable
generic and branded formulations and APIs for the developed and developing markets
of the world. Dr. Desh Bandhu Guptas vision and dream to fight life threatening
infectious diseases and manufacture drugs of highest national priority led to the
formation of Lupin in the year 1968. His Vision, his inimitable commitment and
verve have steered Lupin to achieving the distinction of becoming one of the fastest
growing Generic players globally.
Lupin first gained recognition when it became one of the worlds largest
manufacturers of Tuberculosis drugs. Over the years, the Company has moved up the
value chain and has not only mastered the business of intermediates and APIs, but has
also leveraged its strengths to build a formidable formulations business globally.
The year 2008-09 was yet another year with impressive growth of 32% in revenue and
50% (excluding IP income) in profits. Over the last 5 years, the Company has
recorded a Compounded Annual Growth Rate (CAGR) of 31% and 53% in sales and
net profits respectively.
The Company today has significant market share in key markets in the Cardiovascular
(prils and statins), Diabetology, Asthma, Pediatrics, CNS, GI, Anti-Infectives and
NSAIDs therapy segments, not to mention global leadership positions in the Anti-TB
and Cephalosporins segments. The Companys R&D endeavours have resulted in
significant progress in its NCE program. The Companys foray into Advanced Drug
Delivery Systems has resulted in the development of platform technologies that are
being used to develop value-added generic pharmaceuticals.
Drugs and products of the company reach over 70 countries in the world. Today,
Lupin has the unique distinction of being the fastest growing top 10 Generics players
in the two largest pharmaceutical markets of the world The U.S (ranked 9th by
16
prescriptions & growing at 92 %) and Japan (ranked 7th and growing at 23%). The
company is also the fastest growing, top 5 pharmaceutical players in India (ORG IMS
- March 2009) and the fastest growing Generic player in South Africa (ranked 6th and
growing at over 30 % annually - IMS March 2009).
Lupins world class manufacturing facilities, spread across India and Japan, have
played a critical role in enabling the Company realize its global aspirations.
Benchmarked to International standards, these facilities are approved by international
regulatory agencies like US FDA, UK MHRA, Japans MHLW, TGA Australia,
WHO, and MCC South Africa.22
Milestones:23
2009 Lupin acquired majority stake in Multicare Pharmaceuticals Philippines Inc.
2008 Lupin expanded its product basket in Japan-Kyowa and received ten products approval from Ministry of Health & Labour Welfare, Japan. Lupin acquired Hormosan Pharma GmbH, a Generic Company in Germany. Lupin acquired stake in Generic Health Pty Ltd., in Australia. Lupin acquired Pharma Dynamics in South Africa.
2007 Lupin acquired Vadodara based Rubamin Laboratories Ltd (rechristened to Novodigm Ltd). Lupin acquired Kyowa Pharmaceutical Industry Company Limited, a leading Generic Company in Japan. Commercial production was started at the New finished dosage facility at Jammu. Lupin received Best new manufacturer of the year award from Amerisource Bergen.
2006 A new facility was set up at Jammu. Maiden Bonus share were issued in the ratio of 1:1. Maiden issue of Foreign Currency Convertible Bonds (FCCB) aggregating US $100 mn, which are listed on Singapore Stock Exchange.
2005 Maiden Employees Stock Option Plan was implemented. US FDA and MHRA (UK) approvals were received for Goa. New Lovastatin plant at Tarapur was approved by the US FDA.
17
2004 WHO approval was received for State of the art formulation Plants at Goa and Aurangabad.
2003 Lupin had successfully implemented SAP ERP across the Company to unify all business functions and processes. Introduced collaborative messaging and workflow solution on the intranet. Oral Cefaclor injectible Plant at Mandideep was approved by US FDA. Lupin Pharmaceuticals Inc. USA, was formed for trading, marketing and developmental activities in the US.
2002 Exports to the Advanced Markets crossed Rs.1000 mn. Rising trend of exports as a % of total revenue up 33% year-over-year. Patent filings crossed 100. Five ANDAs were filed. New Anti-TB facility was commissioned at Aurangabad. Rablet was rated by ORG-Marg as the second best launch of FY 2002-03.
2001 Lupin became the only Asian Pharmaceutical company to receive US FDA approvals for its sterile cephalosporin facility. A state of the art US FDA approvable oral cephalosporin bulk active plant was commissioned. State of the art R&D Centre at Pune was commissioned. Lupin commenced supply of Cephalosporin bulk actives to its alliance partners in the US. Lupin Laboratories Ltd was amalgamated with Lupin Chemicals Ltd, whose name was changed to Lupin Limited.
2000 The Cefotaxime facility was approved by the US FDA. The Companys restructuring operations yielded encouraging results. Work commenced on the R&D Centre at Pune.
1999 Lupins injectable cephalosporin bulk active plant at Mandideep was approved by UK MCA.
1997 Lupins injectable Cephalosporins dosages plant at Mandideep obtained UK MCA approval. Lupins formulations facility at Aurangabad was upgraded.
18
Three plants of Lupin, manufacturing Cefaclor at Mandideep, 7 ACCA at Ankleshwar and Rifampicin at Tarapur, got US FDA approvals. ICMA Technology award was given for injectable Cephalosporins.
1996 Government of India conferred the Best Exporter Award on Lupin. Company received the ICMA Technology award for injectable Cephalosporins.
1992 Fermentation Plant of Lupin Chemicals Ltd was established at Tarapur, Maharashtra. Sterile Plant for injectable Cephalosporins (bulk) was commissioned at Mandideep. Lupin Laboratories Ltd and Lupin Chemicals Ltd raised money through IPOs in 1993-94. Won FICCIs award for contribution towards rural development.
1991 Injectable cephalosporin (bulk and dosages) production was initiated at Mandideep. Lupin won the ICMA technology award for successfully manufacturing Vitamin B6.
1989 Joint venture in Thailand Lupin Chemicals (Thailand) Ltd was established. Two Plants Ankleshwar and Mandideep received US FDA approvals for maintaining stringent quality standards.
1988 The Lupin Human Welfare and Research Foundation (LHWRF) was founded by Dr Desh Bandhu Gupta to provide an alternative, sustainable and replicable model of rural development.
1987 Cephalexin Plant at Mandideep and 7 ADCA plant at Ankleshwar went on stream.
1981 Ethambutol production was started
1980 Lupin commissioned a formulations plant and an R&D center at Aurangabad.
1972 Lupin Laboratories Pvt Ltd was incorporated.
1968 Lupin commenced business.
19
1.8 BRIEF HISTORY OF ENGINEERING INDUSTRY
Hardly any aspect of our life remains untouched by engineering today. Engineers put
power and materials to work for human race steel and concrete to build bridges,
roads, buildings, dams and glass, metal and plastics to manufacture hundreds of
everyday products. Engineering industry is the pre-requisite of industrialization of a
society or a nation as it portrays the capability to add value to primary products in our
economical world of today where trade has replaced war and finance has replaced
arms.
During the first ten years of independence, engineering industry maintained a low
profile in the unorganized sector through the indigenous efforts of mechanics,
craftsmen and immigrants who had the employees of large industrial units in India.
However, things improved in late fifties when large units such as Karachi Shipyard
and Engineering Works (KSEW) were commissioned in 1956.
While engineering industry has made a substantial progress over the years to produce
such as tractors, motorcycles, electric transformers, switch gears, electric meters, air
conditioners, refrigerators, sewing machines, cars, trucks, diesel engines within the
country, the uncertain as well as non-availability of right type of basic raw material
steel and its alloys plus lack of precision needed for the manufacture of parts and
machinery are one of the major constraints for the development of the engineering
industry.24
The following five engineering units are selected for the purpose of study:
1. Elecon Engineering Company Ltd.
2. FAG Bearings India Ltd.
3. Bosch Rexroth India Ltd.
4. Ingersoll-Rand (India) Ltd.
5. GMM Pfaudler Ltd.
1.9 PROFILE OF ELECON ENGINEERING COMPANY LIMITED
Here is the Saga made of great vision and sheer determination. Soon after Indias
independence, Elecon started making its presence felt in industrial scenario in most
productive and enriching manner. This process has its root as far back as 1951.
20
A small beginning that was destined to have a glorious present and spectacular future
was made in 1951 in Bombay by a dynamic visionary late Shri Ishwarbhai B Patel. A
small firm indigenously manufacturing conveying equipments started spreading its
wings in the area so far unexplored, resulting in valuable savings in foreign exchange
outflow. With obvious increase in business operations, it was converted into a Private
Limited Company on 11th January 1960.
On formation of a separate Gujarat State in May 1960, with a view to contribute
towards the development of home-land Gujarat, Elecon shifted its base to Vallabh
Vidyanagar, and became a Public Limited Company soon after.25
The company derives its corporate identity, viz. "Elecon" from a modest start of
design and manufacture of Elevators and Conveyors. It has grown over the years to be
known as a pioneer of the concept of mechanized way of Bulk Material Handling
Equipment in India. During the span of more than 4 decades, Elecon has encompassed
all the major core sectors through its supplies of highly sophisticated equipment
bearing ample testimony of the symbolic mark of Elecon's unbeatable technology.
Elecon has thus, made its presence felt through consistent and satisfactory
performance of its equipment in such core sectors as fertilizer, cement, coal/power
generation, chemical, steel plant and port mechanization etc., across the country.
Elecon is the first company in India to have manufactured sophisticated equipment for
Bulk Material Handling and thereby adhering to the motto of ALWAYS A STEP
AHEAD IN TECHNOLOGY.
Its product range includes design, engineering, manufacture, supply, erection and
commission of:
1. Wagon tipplers
2. Bucket wheel stacker/reclaimers
3. Barrel-type blender reclaimers
4. Fertilizer reclaiming scrapers
5. Limestone pre-homegenizing and blending plants
6. Single and twin bucket wheel bridge-type reclaimers
7. Crawler-mounted trippers
8. Stationary and shiftable conveying systems for open cast lignite mines
21
9. Integrated coal handling plants for power stations
10. Underground mining conveyors
11. Open-cast conveying systems
12. Ferrous and non-ferrous foundry products
Elecon has developed and perfected its skills in design, manufacture, erection and
commissioning of coal handling plants. Over the years, Elecon has expanded its skills
and expertise to include the designing and execution of turnkey contracts for:
1. Crushing
2. Screening
3. Stacking
4. Blinding, and
5. Reclaiming plants
The company has gone a long way from a moderate beginning at Goregaon in
Bombay, in the early fifties to a sprawling workshop area spanning over 1,17,051 sq.
meter. The present manufacturing facilities are equipped with latest computerized
machine tools, and quality control equipments.
A separate Gear division manufactures
1. Helical and Bevel Helical Gear boxes
2. Worm Gear boxes
3. Elevator Traction Machines (Lift Gear boxes)
4. Couplings
5. Wind Mill Gear boxes
6. High Speed Gear boxes
7. Planetary Gear boxes
8. Marine Gear boxes
9. Geared Motors
10. Custom built Gear boxes
11. Vertical Roller Mill Drive (VRM)
Elecon has expertise in providing customized gear boxes for Steel Mills, High Speed
Turbines, Sugar Mills, Marine vessels, Coast Guard Ships, Plastic Extrusions,
Antenna Drives and for Satellites in the Indian Space Programme. 26
22
This Division has recently specialized in developing speed increasing application for
Windmills as well.
Elecon has also set up an Alternate Energy Division in the year 1995 for
manufacturing and supply of Wind Turbine Generators a non conventional source
of producing energy. Under the technical know-how obtained from a Belgium
Company
It has recently signed collaboration with Renk AG, Germany w.e.f. April 07 for
Vertical Roller Mill Gearboxes for KPAV type up to size 200 & output
torque 1040 KNM.
Subsidiaries:27
The financial growth over the years is tabulated below:
1965 Issued 12 000 Right Equity shares at par in the prop. 1:5 425 No. of
Equity shares forfeited. 6 824 shares issued for consideration other than
cash during 1960.
1974 24 000, 9.8% Pref. shares issued to the public. Pref. shares redeemable
during 30.6.1982/84 at 3 months' notice.
1976 36 000 Right Equity shares issued at par in proportion of 1:2.
1977 54 000 Bonus Equity shares issued in prop. 1:2.
1979 Chitraj Engineering Co. (P) Ltd. became a wholly owned subsidiary of
the Company from 9th November.
1981 Equity shares sub divided on 15.6.1981. 8 10 000 Bonus Equity shares
of Rs 10 issued in prop. 1:2 on 29.6.1981.
1982 The name of this subsidiary was changed to Elecon (Chennai) Ltd. with
effect from 2nd February. The subsidiary's working was affected by
paucity of orders and natural calamities during 1984. In January the
Company issued to the public 5 50 000-13.5% convertible secured
debentures of Rs 100 each.
1983 During March consequent upon conversion of 55% of the face value of
convertible debentures the Company issued equity shares of Rs 10 each
credited as fully paid up at a premium of Rs 17.50 per share in the
23
proportion of, 2 No. of equity shares for every debenture. Shares were
allotted on 12th March. Pref. shares redeemed on 31.12.1983. 10 99
632 No. of equity shares allotted on conversion of debentures on
12.3.1983.
1984 Authorized capital reclassified.
1987 21 17 778 Bonus shares issued in prop. 3:5.
1988 A letter of registration was received for the manufacture of new articles
viz. shearer and continuous miner with an annual capacity of 10 units.
1989 The High Courts of Chennai and Gujarat by their orders dated 14th
February and 22nd March 1990 respectively approved the scheme of
amalgamation of the wholly owned subsidiary Elecon (Chennai) Ltd.
with the Company effective from 1st January 1987. Accordingly Elecon
(Chennai) Ltd. was dissolved without winding up effective from 1st
January 1987. The Company's sales declined to Rs.99.75 crores mainly
due to irregular inflow of orders because of severe competition which
led to uneven load in the workshops.
1990 The Company has issued 5 00 000 14% secured redeemable non
convertible debentures of Rs 100 each by private placement of SBI
Capital Markets Ltd. and Canara Bank in equal proportion to meet the
longterm working capital needs of the Company. These debentures are
redeemable at a premium of 5% in three equal annual instalments
between 19th September 1996 to 19th September 1998. The Company's
profits were low due to non receipt of export benefits worth Rs.113
lakhs from the export order of EGAT which was already completed and
higher tax liability.
1991 The working results were adversely affected due to increased interest
rates large overdue receivables from Electricity Boards execution of
contracts with lower margins etc. The Company proposed to diversify
into the business relating to vegetable and fruit processing food
processing and processing of edible oil seeds extraction and refining of
edible oil grain silos cattle and poultry feeds.
24
1993 The Company proposed to dispose of the Chennai division in view of
poor performance of the unit.
1994 The Company had successfully implemented the Alternate Energy
System. It installed 7 wind mills out of these 5 were sold to outside
parties and 2 were retained by the company for its own consumption.
The Company has entered into a technical collaboration agreement with
HMZ Belgium N. V. Belgium for manufacture of windomaster wind
Energy Generators which is one of the best available in the world with
larger energy generation.
1995 The liquidity and profitability of the company was adversely affected
on account of large over due receivables. 11 Wind Mills were
commissioned which already started generating power. The Company
had decided to abandon diversification into shrimp feed production in
view of the recessionary conditions in shrimp farms all over India.
1996 Efforts to realise large over due receivables from State Electricity
Board and Central Government Corporation were partly successful. The
Company secured an order from Neyveli Lignite Corporation Ltd. for
manufacture erection and commissioning of 2400 MM Drive Heads and
conveyors for its Mine III. The diversification programme in the field
Alternate non conventional energy source continued. The company
installed eight additional wind mills during the year raising the total to
twenty two.
1997 Eleven wind mills erected in Gujarat for captive consumption were lost
due to severe cyclone. The installed seven additional Wind Mills during
the year. The Company's sales and other services declined to Rs.159.80
crores due to the recessionary conditions. Authorised capital increased.
1998 The Company launched Super NU Universal Mounting Worm Gears
which provide improved power ratings and are well accepted by
industries. The Company launched POSIRED 2 Helical Bevel Gears for
which the company has entered into a technical collaboration with
P.I.V. Antrieb Werner Reimers GmbH & Co. KG Germany.
2004 Elecon Engineering produces gear boxes for Stealth Frigate battle ships
25
2005 Elecon Engg gets Rs 26 cr order from APGenco
2007 Elecon Engineering Company Ltd has signed a Memorandum of
Understanding (MoU) with the Government of Gujarat (GoG) at the
Vibrant Global Investors' Summit 2007 held on January 13 2007.
Elecon Engineering Company Ltd has informed that the Company has
been awarded a contract worth Rs 229.09 Crores for supply and
installation of Coal Handling Plant Package for National Capital
Thermal Power Project (NCTPP) Dadri Stage II (2 x 490MW) from
NTPC Ltd. Elecon Engineering receives order of Rs 57.70 crores from
BHEL.
2008 Elecon Engineering Company Ltd has informed that the Board of
Directors of the Company at its meeting held on July 29 2008 Shri.
Prashant C Amin appointed as Additional Director of the Company.
Elecon Engineering Company Ltd has bagged three orders worth Rs
51.74 crore from Techpro Systems Chennai and SAIL Durgapur Steel
Plant Durgapur. Elecon Engineering Company Ltd has informed that
the Company has been awarded some prestigious order of Rs 17.75
Crores from following client for design engineering manufacturing
testing supplying fractioning and commissioning of Material Handling
Equipments and other Equipments.
1.10 PROFILE OF FAG BEARINGS INDIA LIMITED
FAG Bearings India Limited, a member company of FAG group of Germany - is a
leading player in the Indian Bearing industry.
The company manufactures a very wide range of bearings conforming to the stringent
international quality standards.
FAG India's manufacturing plants, located at Vadodara, Gujarat, feature the most
advanced manufacturing technology. The company is certified to ISO/TS 16949, ISO
9001, and ISO 14001 standards.
FAG India is a leading OEM supplier to the automotive industry, mechanical and
electrical engineering industry, besides the Railways.
26
In 1997, FAG Bearing India Limited set up the country's first 100% EOU for
bearings. Bearings produced at the EOU plant have gained ready acceptance and
recognition of customers located in Europe, USA, Asia and Africa.
FAG's joint venture company - FAG Roller Bearings Private Limited - produces taper
roller bearings at Chakan near Pune.28
The milestones achieved of FAG as follows:29
1962 Incorporated as Precision Bearings India Limited.
1986 The company name changed to FAG Precision Bearings Limited.
1993 Became first Indian Bearing company to achieve ISO 9001 certification.
1997 EOU Project for Cylindrical roller bearings inaugurated.
1998 Became first Indian Bearing company to achieve QS 9000 certification.
1999 Change in name to FAG Bearings India Limited. The company achieved
ISO 14001 certification.
2000 Set up India's first production facilities to produce hub bearings.
2001 Launched Joint Venture Company FAG Roller Bearings Private Limited
to manufacture taper roller bearings.
1.11 PROFILE OF BOSCH REXROTH INDIA LIMITED
Dedicated to the vision of providing Drive and Control solutions for industrial
applications, Bosch Rexroth AG, Lohr am Main, Germany, the parent company of
Bosch Rexroth (India) Ltd., serves a wide range of customers in 80 countries across
the globe. Over 500,000 customers worldwide count on Bosch Rexroths years of
experience, world-class R & D activities, extensive customer support and continuous
product and process improvements accomplished by 35,300 employees in 39
countries.30
Milestones:31
1975 Incorporated as Rexroth Maneklal Industries Ltd.
1976 Started manufacturing in Ahmedabad.
1981 Started power unit production in Mumbai.
1988 Started power unit production in Bangalore.
1993 Started sales of electric drives & controls.
27
1994 Started sales of linear motion products.
1995 Name changed to Mannesmann Rexroth (India) Ltd.
1996 Majority shareholding acquired by Mannesmann Rexroth AG.
1999 Completed manufacturing restructuring, process reengineering, and
corporate reorganization.
Received ISO 9001 1994 certification Sales reach Rs. 500 million.
2000 Inaugurated new Service Center at Ahmedabad.
2001 Robert Bosch GmbH acquired Mannesmann Rexroth AG.
Company acquired Hydraulics Division from MICO/Bosch Group.
Name changed to Bosch Rexroth (India) Ltd.Commenced TPM (Total
Plant Maintenance) process.
2002 Shareholding increased by Bosch Rexroth AG to 96%
2003 Inaugurated new Training Center at Ahmedabad.
Recertified under ISO 9001 2000.
Bosch Rexroth India Ltd. is a provider of comprehensive drive and control solutions
in industrial and mobile applications through Hydraulics, Electric Drives and
Controls, Linear Motion and Assembly Technologies, Pneumatics.
The company has units to manufacture of hydraulic valves, pumps, blocks, cylinders
and power in Ahmedabad and Bangalore. It has sales offices in Ahmedabad,
Bangalore, Kolkata, Mumbai, New Delhi and service centers in Ahmedabad,
Bangalore, Jamshedpur. It has Training centers in Ahmedabad and Bangalore and 57
authorized sales and service partners.
Bosch Rexroth India Ltd. is ISO 9001-2000, ISO 14001:2004, OHSAS 18001:1999
certified.
1.12 PROFILE OF INGERSOLL-RAND (INDIA) LIMITED
Ingersoll-Rand is a leading innovation and solutions provider for over 25 years that
have helped develop the industrial base and infrastructure of countries all over the
world. The company focuses on the major global markets of Climate Control,
Industrial Technology, Infrastructure Development and Security and Safety.
Ingersoll-Rand (India) Limited is a part of the Ingersoll Rand Company, a global
innovation and solutions provider with powerful brands and leading positions within
28
its markets. Ingersoll-Rand (India) Limited has its presence in India since 1921. The
company established its first manufacturing plant in India in 1965 and became a
public limited company in 1977.Today Ingersoll-Rand has manufacturing facilities in
Ahmedabad that is ISO 9001:2008 certified and in Sahibabad that is ISO 9001:2000,
ISO 14001:2004 & OHSAS 18001:2007 Certified. Ingersoll Rand products are widely
appreciated in the market for their superior quality and reliability. With a strong sales
presence in over 15 locations across the country and a strong national distributor
network, Ingersoll-Rand (India) Limited is a dominant player in its business of
providing solutions for the Infrastructure development, Industrial Solutions and
Climate Control markets. It is amongst the country's largest exporters of engineered
goods.
Ingersoll Rand is no longer an Engineering Company offering world-class products,
but a Company that provides the customer with solutions based on these products,
solutions which go well beyond them.
Ingersoll-Rand (India) Limited is among the Country's largest exporters of engineered
goods. Annual exports for financial year 2006-2007 stood at Rs. 1,004.80 Million.
The journey of Ingersoll-Rand (India) Ltd. right from its inception is given below:32
1871 Simon Ingersolls steampowered rock drill is patented. Ingersoll Rock Drill Company is formed
1872 Rand & Waring Drill & Compressor Company is formed
1879 Rand & Waring changed to Rand Drill Company
1888 Ingersoll Rock Drill Company merges with Sergeant Drill Company to form Ingersoll Sergeant Drill Company
1894 WR Grace named president of Ingersoll Sergeant
1896 J. George Leyner invents the hammer drill
1902 Type X portable compressor line is introduced by Rand
1904 Panama Canal is started using Ingersoll Sergeant drills
1905 Merger of Ingersoll Sergeant Drill Company and Rand Drill Company to form Ingersoll Rand Company.
1906 William Saunders becomes first president of Ingersoll Rand.
29
1907 Imperial Pneumatic Tool is acquired
1909 A.S. Cameron Steam Pump Works is acquired
1912 Jackhammer drill is invented (Tradename: Jackhammer)
1912 J.G. Leyner Engineering Works Company is acquired
1913 William Saunders becomes Ingersoll Rands first Chairman
1925 Develops first commercially successful diesel electric locomotive engine; first diesel electric locomotive sold to Central Railroad of New Jersey
1927 Provides jackhammer drills and air compressors for work on Mount Rushmore
1934 First air powered Impactool introduced
1936 George Doubleday elected chairman
1942 The Company is recognized for its wartime contributions with the coveted Army Navy E Award
1948 The Quarrymaster is introduced; known as the first modern self contained, mobile, air powered rock drill for large diameter blast holes
1954 Worlds first atomic powered submarine is equipped with Ingersoll Rand boiler
1955 Downhole drill is introduced
1955 Daniel C. Keefe elected chairman of the board
1959 Robert Johnson elected chairman
1967 William L. Wearly elected chairman
1968 The Torrington Company manufacturer of bearings and motion control products, is acquired
1968 Centac air compressor is introduced
1972 Company executive offices move from NYC to Woodcliff Lake, New Jersey
1974 Acquires Schlage Lock Company
1977 Builds the worlds fastest rescue drill for the South African Chamber of Mines
1980 Thomas A. Holmes elected chairman
1982 High speed centrifugal pump introduced
30
1986 Ingersoll Rand and Dresser Industries from Dresser Rand
1987 The Company re-enters China through joint venture with Xuanhua Pneumatic Machinery Limited
1988 Theodore H. Black becomes Chairman
1990 The ARO Corporation is acquired
1993 James E. Perrella elected Chairman
1995 Acquires Clark Equipment Company, including Bobcat, Club Car and Blaw Knox
1996 Steelcraft, manufacturer of steel doors and frames, is acquired
1996 Zimmerman International Corporation, manufacturer of ergonomic material handling systems, is acquired
1997 Acquires Newman Tonks, European producer of architectural hardware
1997 Thermo King, manufacturer of transport refrigeration equipment, is acquired
1999 Harrow Industries is acquired, including Locknetics (electronic security products). Recognition Systems (biometric security). Ives and Broadway (architectural hardware and bath fixtures.)
2000 Herbert L. Henkel elected chairman.Acquires 100% ownership of Dresser Rand. Hussmann, manufacturer of stationary refrigeration equipment, is acquired. Acquires Interflex, provider of time and attendance, scheduling and security systems. Superstav, based manufacturer of compact equipment, is acquired
2001 Kryptonite Corporation manufacturing of portable security products, is acquired
2003 Completes sale of Torrington
2004 Completes sale of Drilling Solutions and Dresser Rand
2005 Acquires CISA, ITO and SuperRay. Acquires majority interest in Shenzhen Bocom System Engineering Co. Ltd., a China based provider of Integrated Security Technologies and Services. Acquires Dolphin Electromagnetic Technologies, an India based Provider of Integrated Security Technologies and Services. Acquires Astrum GmbH, a Leading Developer of Personnel Scheduling and Management Software and Services. Acquires United
31
States Distribution Rights for Tramac Branded Hydraulic Breakers. Establishes a Joint Venture for the Manufacture and Distribution of Door Locks with Taiwan Fu Hsing Industrial Co.
2006 Celebrates 100 Years of Trading on the New York Stock Exchange. Acquires Geith International, an Ireland based Equipment Attachments Manufacturer. Acquires the Global Low Pressure Air Business of BOC Edwards. Acquires ZEKS Compressed Air Solutions, a Leading North American Provider of Compressed Air Treatment Technologies
2007 Acquires Remaining Interest of Instrum Rand Sells its Road Development Business Unit for $1.3 Billion to AB Volvo. Signs an agreement to purchase privately owned Officine Meccaniche Industriali srl (OMI), a leading European provider of compressed air treatment equipment. Sells its Bobcat, Utility Equipment and Attachments Business Units for $4.9 Billion to Doosan Infracore. Announces definitive agreement to acquire Trane Inc. (formerly American Standard Companies) in a transaction valued at approximately $10.1 billion
2008 Completes acquisition of Trane Inc., a global leader in indoor climate control systems, services and solutions in a transaction valued at approximately $10.1 billion.
1.13 PROFILE OF GMM PFAUDLER LIMITED
GMM Pfaudler was incorporated in 1962 as Gujarat Machinery Manufacturers
(GMM) and listed on the Bombay Stock exchange. In 1987 Pfaudler Inc., USA
subscribed to 40% to form a joint venture. Pfaudler Inc. further increased their stake
to 51% in 1999 and the name of the company was changed to GMM Pfaudler
Limited.
Robbins & Myers Inc., USA which is listed on the New York Stock Exchange owns
Pfaudler Inc. GMM Pfaudler acquired Mavag AG, Switzerland in 2008. The annual
group revenue of GMM Pfaudler stands at US$ 43 million in 2008 - 09.
GMM Pfaudler has a state of the art plant spread over 20 acres at Karamsad, Gujarat,
450 Kms north of Mumbai. It is easily accessible by two major airports Vadodara (45
Kms) and Ahmedabad (70 Kms) both having multiple daily flights from and to
Mumbai and other Indian metros.
32
The plant has a covered area of over 21,000 sq. Meters. It is equipped with the latest
equipment required for quality fabrication. In addition we have 5 furnaces - 3 electric
and 2 natural gas.A company is its people. GMM Pfaudler's 120 trained and
motivated workers are supported by 60 engineers and 110 staff and officers to ensure
that the plant delivers quality equipment on time.
GMM Pfaudler has a sales and service presence across India with regional offices in
Ahmedabad, Bengaluru, Chennai, New Delhi, Hyderabad, Mumbai and Vadodara.
GMM Pfaudler Limited is a leading supplier of engineered equipment and systems for
critical applications in the global chemical and pharmaceutical markets.
Their success is based on close and continuing interaction with our customers,
application engineering expertise, innovation, customer support and a competitive
cost structure.
As a customer-focused organization, we strive to fully understand our customers
needs to better anticipate their future requirements. We also offer process solutions
with in house application engineering and technical support services to create a
competitive advantage.A truly world class organization, GMM Pfaudler is an ISO
9001:2008 company. We have been accredited by ASME for the manufacture and
repair of pressure vessels under U Stamp and R Stamp respectively, by TUV Nord
for the manufacture of pressure vessels under CE 0045 (PED 97/23/EC, Module
H/H1) and AD 2000-Merkblatt HP0. We have also been approved by Special
Equipment Licensing Office (SELO) for the supply of pressure vessels to the Peoples
Republic of China. Our welding workshop has been verified and recognized based on
the requirements of the standard DIN EN ISO 3834-2 (EN 729-2) by TUV Nord.
GMM Pfaudler Limited is headquartered in Mumbai, India with our manufacturing
facility located in Gujarat, India.
Mavag AG a wholly owned subsidiary of GMM Pfaudler Limited is located in
Neunkirch, Switzerland, with a turnover of CHF 15 million. Mavag is a leading
supplier of highly engineered equipment for the pharmaceutical, bio engineering and
fine chemical industries.33
33
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29. The Analyst, Aug. 2010, p.50.
34
30. The Analyst, Dec. 2010, p.74.
31. The Analyst, Dec. 2010, p.76.
32. The Hindu Business Line Business Daily from THE HINDU group of
publications, Friday, Dec 28, 2007.
33. The Times of India, Ahmedabad, Monday, Dec. 13, 2010, pp. 18.
