LUPIN-2011-2012.Pdf
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Spine has to be adjusted by printer at his end BUILT TO GROW ANNUAL REPORT 2012 LUPIN Spine has to be adjusted by printer at his end Spine has to be adjusted by printer at his end 1st 3rd 9th 14th Largest Indian Largest Indian Largest Largest generic pharmaceutical pharmaceutical Japanese pharmaceutical company in the company generic company USA by pharmaceutical globally prescriptions company An innovation led transnational pharmaceutical company LUPIN LIMITED Corporate Office Laxmi Towers, ‘B’ Wing, Bandra Kurla Complex Bandra (East) LUPIN 2012 Mumbai 400 051 India Tel: +91 (22) 6640 2222 > USD 1.4 billion revenue Registered Office > 20% EBITDA and growing 159, C.S.T. Road, Kalina Santacruz (East) Expanding global footprint Mumbai 400 098 India Tel: +91 (22) 6640 2323 Market capitalization has grown 11 times in 7 years Email Within reach of top 25 global pharmaceutical companies [email protected] Website www.lupinworld.com Spine has to be adjusted by printer at his end BUILT TO GROW Lupin was founded in 1968 with the vision to develop new drugs to combat and eradicate life-threatening diseases. To manufacture drugs of the highest social priority so as to nurture, protect and enrich our society. Embedded in Lupin was a formula for growth. Forty-four years on, what has stayed with us is that same entrepreneurial spirit, culture of creativity and innovation and pride in belonging to an industry that makes a difference in the lives of people. We are today a fully integrated pharmaceutical company with an unrivaled position in the US, India and Japan. This position is built on a backbone of cutting-edge research, world-class manufacturing facilities and a truly global supply chain. With the building blocks in place, the future looks brighter than its ever been. We are Built to Grow. CHAIRMAN’S MESSAGE Embedded in Lupin is a formula for growth which fuels creativity, performance and innovation Dr Desh Bandhu Gupta Founder and Chairman 02 BUILT TO GROW My Dear Shareowners When I started Lupin over 40 years ago, the dream was simple – to provide as many people as possible with affordable medicines that would address the most prevalent diseases of the highest social priority, such as tuberculosis. I discovered that by working hard on a noble ambition, growth and success followed. Embedded in Lupin is a formula for this growth. Growth fuelled by a boundless vision, the determination to succeed and reach for our dreams. These fundamental philosophies are what drive Lupin - creativity, performance and innovation. Lupin has delivered the highest growth performance consistently over the past ten years. We expect the future to be no different and we continue to invest in new therapy areas, reach out to new territories and dive deeper into our existing markets. As we have grown as a company, we realized that our ambitions were bigger than generic products alone and that we had the means to go up the value chain into specialty products and proprietary research and development. That is the journey we are on today – to become a global specialty pharmaceutical company offering a wide portfolio of generic and proprietary products. As always, it is a pleasure for me to address you and to share our results for the previous year. We have carefully put together all the pieces of our story, to be counted amongst the leading pharmaceutical companies in the world. Lupin is Built to Grow. With Best Wishes Dr Desh Bandhu Gupta Founder and Chairman Lupin Limited 03 LUPIN Annual Report 2012 CONTENTS 02 Chairman’s Message 06 Corporate Information 07 Board of Directors 08 Financial Highlights 10 Managing Director’s Letter 14 US & Europe 18 India 22 Rest of the World 25 Active Pharmaceutical Ingredients 26 Research & Development 32 Manufacturing 33 Quality & Regulatory Compliance 36 Human Resources 38 Financial Review 42 Corporate Social Obligation 44 Built As One 46 Six Year Financial Summary 48 Reports And Accounts Shakti Chakraborty Naresh Gupta Divakar Kaza Vinod Dhawan 04 MANAGEMENT TEAM Ramesh Swaminathan Ms Vinita Gupta Dr Desh Bandhu Gupta Dr Kamal K Sharma Nilesh Gupta 05 LUPIN Annual Report 2012 CORPORATE INFORMATION DIRECTORS SENIOR MANAGEMENT TEAM REGISTERED OFFICE Dr Desh Bandhu Gupta Dr Desh Bandhu Gupta 159, C.S.T. Road, Kalina Chairman Chairman Santacruz (East) Dr Kamal K Sharma Dr Kamal K Sharma Mumbai 400 098 Managing Director Managing Director Tel:+ 91 22 6640 2323 Mrs M D Gupta Fax:+ 91 22 2652 8806 Executive Director Ms Vinita Gupta Group President & CEO - Mr Nilesh Gupta Lupin Pharmaceuticals Inc., USA CORPORATE OFFICE Executive Director Laxmi Towers, 'B' Wing Ms Vinita Gupta Mr Nilesh Gupta Bandra Kurla Complex Dr Vijay Kelkar Group President & Executive Director Bandra (East) Mr Richard Zahn Mr Shakti Chakraborty Mumbai 400 051 Mr R A Shah Group President - Dr K U Mada India Region Formulations & CIS Tel: + 91 22 6640 2222 Mr D K Contractor Fax: + 91 22 6640 2130 Mr Vinod Dhawan Group President - www.lupinworld.com COMPANY SECRETARY & AAMLA & Business Development COMPLIANCE OFFICER E-Mail Mr R V Satam Mr Ramesh Swaminathan President - Finance & Planning [email protected] AUDITORS Dr Rajender Kamboj Deloitte Haskins & Sells President - Novel Drug Discovery & Chartered Accountants Development AUDIT COMMITTEE Mr Naresh Gupta President - API & Global TB Dr K U Mada Chairman Dr Kamal K Sharma Mr Divakar Kaza Mr D K Contractor President - Human Resources Mr Alok Ghosh INVESTORS' GRIEVANCES President - Technical Operations COMMITTEE Mr D K Contractor Chairman Dr Cyrus Karkaria President - Biotechnology Dr K U Mada Mr Sunil Makharia REMUNERATION Executive Vice President - Finance COMMITTEE Mr Debabrata Chakravorty Dr K U Mada Chairman Executive Vice President - Supply Mr R A Shah Planning & Strategic Sourcing SOLICITORS Mr Andrew Macaulay Crawford Bayley & Co. Executive Vice President - Lupin (Europe) Ltd. BANKERS Dr Dhananjay Bakhle Central Bank of India Executive Vice President - Bank of Baroda Medical Research State Bank of India Dr Sofia Mumtaz Citibank N.A. Executive Vice President - IPMG The Hongkong and Shanghai Banking Corporation Limited Mr Rajendra Chunodkar Standard Chartered Bank Executive Vice President - Technical ICICI Bank Limited Mr R S Raghav Kotak Mahindra Bank Limited Executive Vice President - J P Morgan Chase Bank N.A. Marketing & Sales 06 BOARD OF DIRECTORS Dr Desh Bandhu Gupta Chairman Dr Kamal K Sharma Managing Director Mrs M D Gupta Executive Director Mr Nilesh Gupta Executive Director Ms Vinita Gupta Dr Vijay Kelkar Mr Richard Zahn Mr R A Shah Dr K U Mada Mr D K Contractor AWARDS 2011-12 Ernst & Young Entrepreneur of the Year Life Sciences and Health Care – Dr Desh Bandhu Gupta NDTV Business Leadership Awards Pharmaceutical Company of the Year Business Today 30 Most Powerful Women in Business Ms Vinita Gupta 06 Business Today Yes Bank Best CFO Awards Best Leverage Management – Large Companies Mr Ramesh Swaminathan 07 LUPIN Annual Report 2012 FINANCIAL HIGHLIGHTS 2012 Revenue Composition (%) Net Sales 69,597 (` million) 57,068 47,736 API Domestic Formulations 37,950 Advanced Markets Emerging Markets 28,341 Formulations Formulations 12 27 FY 08 FY 09 FY 10 FY 11 FY 12 52 9 Profit Before Tax 11,960 (` million) 9,963 14,590 EBITDA 8,357 (` million) 12,000 6,060 5,402 9,981 7,439 6,423 FY 08 FY 09 FY 10 FY 11 FY 12 FY 08 FY 09 FY 10 FY 11 FY 12 Exports (` million) 41,862 Consolidated Net Profit Formulation 32,955 (` million) 8676 API 26,405 8,626 19,654 6,816 5,015 10,032 4,083 5,260 5,047 5,562 5,931 6,434 FY 08 FY 09 FY 10 FY 11 FY 12 FY 08 FY 09 FY 10 FY 11 FY 12 08 Cumulative Capex Cumulative R&D (` million) 20,609 (` million) 20,067 5,514 5,940 15,095 14,127 4,808 5,301 10,287 8,826 4,433 4,119 5,854 4,707 3,489 2,669 2,345 2,038 2,365 2,038 FY 08 FY 09 FY 10 FY 11 FY 12 FY 08 FY 09 FY 10 FY 11 FY 12 Geographic Break Down (%) Contribution Domestic Exports - Advanced Market Exports - Emerging Market Dividend 160 (%) 150 35 33 32 31 45 135 125 35 47 50 51 53 100 20 18 17 17 16 FY 08 FY 09 FY 10 FY 11 FY 12 FY 08 FY 09 FY 10 FY 11 FY 12 Lupin Share price movement (`) Closing Rate (BSE) Closing Rate (NSE) 600.00 529.5 500.00 529.65 400.00 Earning Per Share Basic 19.43 (`) 19.36 300.00 200.00 15.84 12.17 100.00 12.53 10.00 0.00 12.53 * 31.03.03 * 31.03.04 * 31.03.05 * 31.03.06 * 31.03.07 * 31.03.08 * 31.03.09 * 31.03.10 * 31.03.11 * 31.03.12 FY 08 FY 09 FY 10 FY 11 FY 12 09 LUPIN Annual Report 2012 MANAGING DIRECTOR’S LETTER Our culture drives us to reach for superior goals, higher productivity and sound business practices; this discipline has made us the 14th largest generic player in the world Dr Kamal K Sharma Managing Director 10 THE CULTURE TO GROW Dear Shareholders We have now recorded 7 consecutive years of consistent growth. The momentum built through this journey reassures that our businesses are on the desired track of consistent and sustainable growth. It is our culture that challenges us to reach for superior goals, higher productivity and ever more meticulous business practices. We are now the 14th largest generic pharmaceutical company in the world by revenues; we remain the 5th largest and fastest growing generics player in the US.