Lupin Ltd.
About Lupin
Herbaceous perennial plant from South & western North America , Mediterranean region and Africa.
Fixes nitrogen from the atmosphere into ammonia via a rhizobium root nodule.
Lupin beans are edible and are also used as fodder for animals.
Vision
Mission• “Our aspiration is to become a multi-billion dollar
transnational company and be counted amongst the top generic pharmaceutical companies in the world. Going forward, we have to consistently set ourselves standards and benchmarks that will be world-class but uniquely Lupin.”
Dr Desh Bandhu Gupta Chairman
Values
History & Milestones 1980 Lupin commissioned a formulations plant and an R&D
center at Aurangabad. 1981 Ethambutol production was started. 1986 Lupin was started. 1988 The Lupin Human Welfare and Research Foundation
(LHWRF) was founded.(a CSR initiative). 1993-94 Lupin Laboratories Ltd and Lupin Chemicals Ltd raised
money through IPOs. 2000 The R&D Centre at Pune began operations. 2002 Exports to the Advanced Markets crossed Rs.1000 mn.
Rising trend of exports as a % of total revenue – up 33% year-over-year.
Merger & Acquisitions
2007
•Japan - Kyowa Pharmaceutical Industry Company Ltd. ( Generic Company)
2008
•Australia - Generic Health Pty Ltd.
2008
• Germany - Hormosan Pharma (Generic Company)
2008
•South Africa - Pharma Dynamics
2009
•Philippines - Multicare Pharmaceuticals Inc.
2010
•US – Antara and Aller-Naze
Corporate Social Obligation\
The Lupin Human Welfare & Research Foundation (LHWRF) Transforming lives of over 2 million people. Focus on uplifting people and families below the poverty line. Women and Child development. Better Public Health. Education and Employability. International Symposium on Diabetes.
Business Segments
Business Segments FORMULATIONS:• End products • Tablet, capsules , injectibles or syrups.
APIs and intermediates :• Active Pharmaceutical Ingredients used in the
manufacturing of drugs.• Intermediates – used for synthesis of APIs.
Business Break-Up
Formu-la-
tions
85%
API15%
Business Mix
Out-side India63%
India27%
Geography Mix
Formulations Commands a business of over Rs. 11,412 mn spread across the globe
2005-06 2006-07 2007-08 2008-09 2009-100%
10%
20%
30%
40%
50%
60%
70%
80%
90%
52%
61%70%
81% 85%
% contribution (gross sales)
Advanced Market61%
India32%
Emerging Market7%
Formulation sales break-up (09-10)
Formulations-India
FY 08-09 FY 09-1010000
10500
11000
11500
12000
12500
13000
13500
11011
13008
Sales (in Rs. million)• Fastest growing pharma
company.• Aggressive focus on brand
building.• New Products constitute over
45% of sales.
• Divisions in India : Lupin Pharma, Lupin Respira, Endeavour, Maxter Pinnacle, Lupin
Diabetes care, MindVision, Lupinova.• 42 new products launched this year.
Formulations-Advance Markets
Generics - US :• 5th largest Generic player.• Generics business grew by 45%
Generics – Europe• Cefpodoxime Proxetil tabs
France – 72% market share• Ceftiofur – Ranked #1 generic
2008-09 2009-100
50100150200250300350 273
348Net Sales ($ million)
Branded :• Suprax continues robust growth.• Branded portfolio forms 37% of US Turnover
Formulations-Emerging MarketsJapan
Australia
South Africa
API & Intermediates
2005-06 2006-07 2007-08 2008-09 2009-100%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
48%
39%
30%
19%
15%
% contribution (gross sales) • Global leadership in chosen therapies Cephs Ceph-intermediates Anti-TB range Lisinopril
• India’s most profitable API entity – ROCE 36%
Financial Analysis
Heads Of Income
Net sales95.81%
Other operating income3.78%
Other income0.41%2006
Net sales98%
Other operating income2%
Other income0.12%
2010
Heads Of ExpensesRaw material
60%
Power and fuel cost
5%
Employee cost11%
Other manu-facturing expenses
4%
Selling and admin ex-
penses17%
Miscellaneous expenses3%
2006
Raw material56%
Power and fuel cost
5%
Employee cost14%
Other manu-facturing expenses
4%
Selling and admin ex-
penses18%
Miscellaneous expenses2%
2010
Sources Of Funds
Equity share capital
2%
Re-serves
and surplus
64%
Minor-ity in-
terests1%
Loan funds 29%
Deferred tax4%
Equity share capital2.44%
Re-serves
and sur-plus
35.44%
Minor-ity in-terest0.10%
Loan funds
56.21%
Deferred tax liabilities (net)
5.81%
2006
2010
Application Of Funds
Fixed assets50%
Goodwill on consolidation
8%
In-vest-
ments1%
De-ferred
tax assets (net)1%
Net current assets41%
Fixed assets
40.83%
In-vest-
ments0.17%
De-ferred
tax assets (net)
0.10%
Net current assets
58.90%
2006
2010
Net Sales
Jan-06 Jan-07 Jan-08 Jan-09 Jan-100.00
500.00
1,000.00
1,500.00
2,000.00
2,500.00
3,000.00
3,500.00
4,000.00
1,652.93
1,985.79
2,575.39
2,954.70
3,690.09
Net sales (In Rs. Cr. )
Operating Profit =operating revenue-operating expenses
Jan-06 Jan-07 Jan-08 Jan-09 Jan-100
100
200
300
400
500
600
700
800
900
303.37333.56
541.31574.12
841.11
Operating profit (In Rs. Cr.)
Profit After Tax=Operating Income x (1-Tax Rate)
Jan-06 Jan-07 Jan-08 Jan-09 Jan-100
100
200
300
400
500
600
700
179
279.979999999999
442.8416.96
647.849999999998
Profit after tax (In Rs. Cr.)
Net Profit=Total Revenue -Total Expenses
Jan-06 Jan-07 Jan-08 Jan-09 Jan-100
100
200
300
400
500
600
700
182.72
302.06
443.38416.97
648.929999999999
Net profit (In Rs. Cr.)
Net profit (In Rs. Cr.)
Ratios
Current Assets Current Liabilities
Jan-06 Jan-07 Jan-08 Jan-09 Jan-100
0.2
0.4
0.6
0.8
1
1.2
1.41.14999999999
9991.22
0.970000000000001
0.830000000000001
0.960000000000001
Current ratio
Current Ratio =
Debt Equity
Jan-06 Jan-07 Jan-08 Jan-09 Jan-100
0.2
0.4
0.6
0.8
1
1.2
1.4
1.61.42
0.970000000000001
0.730000000000001
0.690000000000001
0.36
Column1
Debt Equity Ratio =
Profit After Tax Net Worth
100Return On Net Worth (%) =
Jan-06 Jan-07 Jan-08 Jan-09 Jan-100
5
10
15
20
25
30
35
40
28.37
34 33.6630.31
25.64
Return on net worth
Return on net worth
v Net Profit TurnoverNet Profit Margin (%) = 100
Jan-06 Jan-07 Jan-08 Jan-09 Jan-100
2
4
6
8
10
12
14
16
18
20
10.98
14.8916.3
14.09
17.52
Column1
Earnings For Equity Share Holder Total No. Of Equity Shares
Earning Per Share =
Jan-06 Jan-07 Jan-08 Jan-09 Jan-100
10
20
30
40
50
60
70
80
45.5237.6
54.0250.35
72.96
Earning per share
Dividend Total No. Of ShareDividend Per Share =
Jan-06 Jan-07 Jan-08 Jan-09 Jan-100
2
4
6
8
10
12
14
16
6.55
10
12.513.5
Column1
Core Competitors Sun Pharma Cipla Dr Reddys Labs Ranbaxy Labs GlaxoSmithKline Cadila Health Piramal Health Divis Labs Glenmark
Competitors’ Market Share
Sun Pharm
aCipla
Dr Red
dys La
bs
Ranbax
y Lab
s
GlaxoSm
ithKlin
eLu
pin
Cadila
Health
Piramal
Health
Divis L
abs
Glenmark
0
5
10
15
20
25
COMPANIES % MARKET CAPITALCOMPANIES % SALES TURNOVER
Competitors’ Profit Share
Sun Pharma
Cipla
Dr Reddys L
abs
Ranbaxy La
bs
GlaxoSmith
Kline
Lupin
Cadila Health
Piramal H
ealth
Divis Labs
Glenmark0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
% NET PROFIT
% NET PROFIT
Strategies Replicating our Branded business model in new markets
Developing our specialty business, bio-similars. Focusing the US business on more specialised products. Strategic investments in APIs will support growth across
all businesses.
Targeting doubling of sales growth every 4 years while improving operating margin
Thank You