For a Healthier Tomorrow
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Building Momentum for a Healthier Tomorrow Annual Report | 2019-20 Mr. Samprada Singh 2nd May, 1930 to 27th July, 2019 Remembering Our Founder & Chairman Emeritus A true visionary and an impactful leader, Mr. Samprada Singh’s story and life are full of wonderful lessons of courage, resolve, hard work and indomitable willpower. He overcame the financial difficulties that his familyad h to face to become the first graduate from his village in Bihar. He then braved the challenges of venturing into newer avenues – from selling umbrellas to opening a medical store to setting up his own pharmaceutical distribution company in the late 50s. Our beloved founder was determined to use his vast knowledge and deep understanding of the Indian pharmaceutical industry garnered over nearly two decades to champion change in an era when the market was dominated by international companies. The bold step came in 1973 with his decision to establish Alkem Laboratories. Guided by his visionary leadership and extraordinary business acumen, our Company not only competed successfully with global giants but also emerged as one of India’s largest pharmaceutical companies. Mr. Samprada Singh’s imprint extended well beyond our business. His guiding principle of striving for excellence in all that we do has been an inspiration to all who had the privilege of knowing him. His life is a testimony to the fact that with zeal, determination and hard work, no dream is unattainable. While he is physically not present amongst us today, his life, achievements and deep-rooted virtues will continue to guide Alkemites to scale new heights. We stand committed to his vision and building on his legacy. Contents Corporate Overview Financial Statements 03 Corporate Information Standalone 04 About Alkem 94 Independent Auditor’s Report 06 Building Momentum in Biologics 102 Balance Sheet 07 Building Momentum for International Business 103 Statement of Profit and Loss 08 Chairman’s Message 104 Statement of Changes in Equity 10 Message from the MD’s Desk 105 Statement of Cash Flow 12 Board Profile 107 Notes 14 Key Financial Highlights 16 Building Momentum for a Healthier Workplace Consolidated 19 Building Momentum for Sustained Change 155 Independent Auditor’s Report 21 Together Against COVID-19 for a Healthier World 162 Balance Sheet 163 Statement of Profit and Loss 164 Statement of Changes in Equity 166 Statement of Cash Flow 168 Notes Statutory Reports 229 Notice 22 Management Discussion & Analysis 40 Directors’ Report 69 Corporate Governance Report 86 Business Responsibility Report Key Figures - FY 2019-20 ₹ 83,444 Mn ₹ 14,734 Mn ₹ 11,271 Mn ₹ 94.26 Revenue from EBITDA Profit After Tax Earnings Per Share Operations To view the online version of this report or for other information, log on to: www.alkemlabs.com 03-21 Corporate Overview 22-93 Statutory Reports 94-228 Financial Statements Corporate Information Board of Directors Registered Office Mr. Basudeo N. Singh Alkem House, Senapati Bapat Marg, Lower Parel, Executive Chairman Mumbai - 400 013, Maharashtra, India ClN: L00305MH1973PLC174201 Mr. Sandeep Singh Telephone: +91 22 3982 9999 Managing Director Fax: +91 22 2495 2955 Mr. Dhananjay Kumar Singh Website: www.alkemlabs.com Joint Managing Director Email: [email protected] Mr. Balmiki Prasad Singh Executive Director Registrar & Share Transfer Agents Mr. Mritunjay Kumar Singh M/s Link Intime India Private Limited Executive Director Unit: Alkem Laboratories Limited C-101, 247 Park, L.B.S. Marg, Mr. Sarvesh Singh Vikhroli (West), Mumbai - 400 083 Executive Director Telephone: +91 22 4918 6270 Mr. Arun Kumar Purwar Fax: +91 22 4918 6060 Independent Director E-mail id: [email protected] Website: www.linkintime.co.in Mr. Ranjal Laxmana Shenoy Independent Director Plant Locations Mr. Narendra Kumar Aneja Independent Director 1. Unit I & II, Daman, India 2. Mandva, Gujarat, India Ms. Sangeeta Singh 3. Ankleshwar, Gujarat, India Independent Director 4. Unit I & II, Baddi, Himachal Pradesh, India Ms. Sudha Ravi 5. Kumrek, East Sikkim, India Independent Director 6. Alkem Health Science, (Unit of the Company) Unit I, II & III, Samardung, South Sikkim, India Dr. Dheeraj Sharma 7. California, U.S.A. Independent Director 8. Missouri, U.S.A. 9. Indchemie Health Specialities Private Limited, Somnath, Key Managerial Personnel Daman, India 10. Indchemie Health Specialities Private Limited, Amaliya, Mr. Rajesh Dubey Daman, India President - Finance and Chief Financial Officer 11. Indchemie Health Specialities Private Limited, Baddi, Mr. Manish Narang Himachal Pradesh, India President – Legal, Company Secretary and Compliance Officer 12. Unit I & II, Indchemie Health Specialities Private Limited, Kumrek, East Sikkim, India 13. Cachet Pharmaceuticals Private Limited, Baddi, Auditors Himachal Pradesh, India M/s. B S R & Co. LLP, Chartered Accountants 14. Alkem Labs Ltd, Unit 5, South Sikkim, India 15. Alkem Labs Ltd., S.E.Z., Indore, Madhya Pradesh, India Bankers 16. Enzene Biosciences Limited, Chakan, Pune, Maharashtra, India SBI Bank Syndicate Bank HDFC Bank Barclays Bank Major Research Centres Citi Bank IDBI Bank 1. R&D Centre, MIDC, Taloja, Maharashtra, India BNP Paribas Bank ICICI Bank 2. R&D Centre, Mandva, Gujarat, India DBS Bank MUFJ Bank (Bank of Tokyo) 3. Enzene Biosciences Limited, T-Block, MIDC, Bhosari, Yes Bank Emirates NBD Pune, Maharashtra, India Mizuho Bank Firstrand Bank 4. Enzene Biosciences Limited, MIDC, Bhosari, Kotak Mahindra Bank Shinhan Bank Pimpri-Chinchwad, Pune, Maharashtra, India Saraswat Co-op Bank Federal Bank 5. S&B Pharma Inc., California, U.S.A. HSBC Bank HDFC Limited (NBFC) 6. S&B Pharma Inc., Missouri, U.S.A. Axis Bank Alkem Laboratories Ltd. 3 About Alkem Leading Today On Course for Tomorrow Headquartered in Mumbai, Alkem Laboratories is one of India’s Making a difference to patients’ lives is an intrinsic element foremost global pharmaceutical company. The Company is of Alkem’s philosophy. Powered by this purpose, the engaged in the development, manufacture and marketing Company pursues R&D with vigour and continues to expand its of pharmaceuticals with operational footprints across 40+ operations both beyond its shores and within. This momentum countries. In India, it has a formidable presence in several for a healthier tomorrow is supported by the Company’s robust therapy segments and consistently features amongst the top ten infrastructure. It has 21 manufacturing facilities and 6 R&D pharmaceutical companies. centres located across India and the US. An extensive pan-India Steered by its industry experience of over four decades, Alkem sales and distribution network, forte in brand building and offers high-quality branded generics, generic drugs, active marketing, a large and talented workforce, and an experienced pharmaceutical ingredients and nutraceuticals. The Company’s management team further reinforce its capabilities. product portfolio features over 800 brands encompassing all major therapeutic segments. Inspiring us Towards Tomorrow To achieve value-driven leadership in the Indian Healthcare Industry and beyond through: Our Vision Quality that is infinite Service that cares Hard work that endures Key Facts About the Company Four decades Successfully ` 278.1 billion 5th 21 6 Incorporated in 1973 completed – More than four Initial Public Market Largest Manufacturing R&D centres decades of experience Offering (IPO) in capitalisation as on pharmaceutical facilities across across India in pharmaceutical December 2015 31st March, 2020* company in India India and US and US industry in terms of market share ** Established India Business # 1 # 3 800+ 10 7 Pan India distribution Anti-Infective Rank in Gastro- Brands in India Brands with annual Brands network with 40+ company in India intestinal and sales of more Feature amongst sales depots / for over 15 years** Analgesic therapy than ` 1 billion** top 100 warehouses and segments in India** pharmaceutical >7,000 stockists brands in India** Fast-growing International Business 40+ US$300+ million 6 >1,100 144 89 Countries Revenues from US USFDA approved Filings across Cumulative ANDA approvals Global presence business facilities in India various Abbreviated New from the US FDA# and US international Drug Applications markets (ANDA) filings with the US FDA# *Source: NSE website **Source: IQVIA data #Includes 2 NDA, as on 31st March, 2020 4 Annual Report 2019-20 03-21 Corporate Overview 22-93 Statutory Reports 94-228 Financial Statements Market-Wise Revenue Segmentation Other international markets ₹ 5,382 Mn US 6.4% revenue India ₹ 21,999 Mn contribution ₹ 56,062 Mn 26.4% revenue contribution 67.2% revenue contribution Map not to scale. For illustrative purposes only. Manufacturing Facilities & Capabilities in India Manufacturing Facilities & Capabilities in the US Location No. of Manufacturing Location No. of Manufacturing Facilities Capabilities Facilities Capabilities Baddi 4 Formulations - Tablets, Injectables, Dry Syrup Sikkim 7 Formulations - Tablets, Injectables, Dry Syrup California 1 Active Pharmaceutical Daman 4 Formulations - Capsules, Tablets, Ingredients (APIs) Injectables, Dry Syrup Mandva 1 Active Pharmaceutical Ingredients (APIs) St. Louis 1 Formulations - Liquids, Nasal Ankleshwar 1 Active Pharmaceutical Ingredients (APIs) (Missouri) Sprays, Semi-solids, Solids Indore 1 Formulations - Capsules, Tablets, Dry Syrup Pune 1 Biosimilars R&D Facilities in India R&D Facilities in the US Location No. of Facilities Location No. of Facilities Taloja 1 California 1 Pune 2 Mandva 1 St.