ARCH PHARMALABS LIMITED UNLISTED SHARE
ABOUT ARCH PHARMA LABS LIMITED
ARCH PHARMA LABS LIMITED is a pharmaceutical company aligned across two business verticals viz. Products and Services. The Products business of the company comprises the manufacture and sale of Active Pharmaceutical Ingredients (“API”) and Intermediates to innovator and generic pharmaceutical players in both domestic and international markets including the regulated markets. In services business of the company includes Contract Research and Manufacturing Services (“CRAMS”). Currently, the company owns and manages 9 multipurpose manufacturing facilities.
The Company has a diversified portfolio and offers more than 120 products ( over 65 APIs and over 55 Intermediates) across various therapeutic segments, such as lipid-lowering agents, oncology, anti-platelet agents, anti-asthmatic,anti-retroviral, anti-anginal, calcium channel blockers, anti-hypertensive,anti-histamine, anti-diabetic, anti-protozoal, anti-fungal, anti-emetic, proton pump inhibitors, expectorant, anti-depressant, decongestant, anti-convulsant, psychostimulant, hypnotic, anti-parkinsonian, anti-gout, analgesic, and others.
The Company provides contract manufacturing, custom synthesis, and contract research services comprising route selection, process development, optimization, analytical development, stability studies, safety studies, scale-up to technology transfer, clinical-trial manufacturing, and commercial manufacture.
Arch Pharmalabs Limited has technology tie-ups with Codexis (USA), Orochem Technologies (USA), and DSM (Netherlands). The use of these technologies helps the company to implement various green chemistry initiatives which are not only environmentally friendly but also reduce production costs.
INCORPORATION DETAILS
CIN | U24231MH1993PLC150891 |
Registration Date | 02 April 1993 |
Category/Sub-category of the Company | Company Limited by Shares |
Address of the Registered office and contact details | 3rd Floor, Titanic Building, Chandivali Farm Road, Nr. HDFC Bank, Andheri (East), Mumbai - 400072. Tel. : +91-22-4287 1210 |
Name, Address and Contact Details of Registrar and Transfer Agent, if any | Link Intime India Private Limited C-101, 247 Park, L.B.S Marg, Vikhroli (West), Mumbai - 400083, Tel: 022-25946970 |
PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
Name and Description of main products/services | NIC Code of the product/service | % to total turnover of the Company |
Pharmaceutical products | 21002 & 21005 | 100% |
BOARD OF DIRECTORS
Mr. Ajit Kamath (Chairman & Managing Director)
Mr. Rajendra Kaimal (Executive Director & CFO)
Mr. Ashish Ujagare (Executive Director)
Dr. Sunil Pitroda (Independent Director)
PARTICULARS OF SUBSIDIARY AND ASSOCIATE COMPANIES
Name of the Company | Subsidiary/Associate | % of shares held |
Arch Life SciencesLimited | Subsidiary | 58.46% |
Arch FinechemicalsLimited | Subsidiary | 88.95% |
Arch Pharmalabs FZLLC | Subsidiary | 100.00% |
Kobo Biotech Limited | Associate | 44.95% |
SHAREHOLDING PATTERN
(As of 31-03-2020)
S. No. | Shareholders’ Name | Number of shares | % of total Shares of the company |
1 | Arch Impex Private Limited | 5,54,05,664 | 36.47% |
2 | Arch PharmachemLimited | 2,11,81,000 | 13.94% |
3 | ArchAgroIndustriesPrivate Limited | 61,54,754 | 4.05% |
4 | AMR InvestmentsPrivate Limited | 19,76,681 | 1.30% |
5 | Arch Herbals Private limited | 62,42,076 | 4.11% |
6 | Public Shareholding | 6,09,62,901 | 40.12% |
| Total | 15,19,23,076 | 100.00% |
INDUSTRY OUTLOOK
The Global pharmaceutical industry is valued at around US$ 1250 billion. The US market alone accounts for 48% of the market. India and China each stand at US$ 53 billion and US$ 190 billion respectively. India is the largest provider of generic drugs and is fulfilling around 20% of the global demand.
In the Active Pharmaceutical Ingredients (API) Industry, if we see the units approved by USFDA, US leads with 28% approval rating, Europe with 26%, and India & China with 18% and 13% respectively. It is the best time for India to focus on building and improving its API manufacturing and export capabilities. According to Statistics, the Indian API market is projected to grow at a CAGR of 8.57% from 2020 to 2026. The Government of India has announced Rs. 6,940 Crore Production Linked Incentive (PLI) scheme to boost drug manufacturing in India. The scheme is mainly aimed at reducing imports through the promotion of domestic manufacturing of Active Pharmaceutical Ingredients (APIs) and Drug Intermediates.
Pharmaceutical Companies are continuously increasing outsourcing research activities to academic and private contract research organizations (CROs) to become and stay competitive in the market. After the COVID 19 pandemic, the pharmaceutical industry has gotten a new direction and is currently experiencing dynamic changes. That is why to reduce their R&D expenses, the companies to a significant extent are now relying on outsourcing service providers. Based on this, the opportunities available to India are Custom Chemical Synthesis or CCS, clinical trials, and contract manufacturing or CRAMS. However, the most scalable opportunity for Indian companies lies in contract manufacturing or CRAMS. This is because CRAMS supplies are linked to the success of a product post commercialization and can provide relatively stable revenues.
PROFIT & LOSS STATEMENT OF ARCH PHARMA LABS LIMITED(In Rs. Crores)
Particulars | FY 2020 | FY 2019 | FY 2018 |
Revenue from Operations | 632.29 | 476.58 | 247.19 |
EBITDA | 38.43 | 14.05 | -263.02 |
Finance Cost | 204.67 | 162.84 | 82.52 |
Depreciation | 30.30 | 32.54 | 39.10 |
Other Income | 19.22 | 38.20 | 0.25 |
Profit Before Tax and Exceptional items | -177.32 | -143.12 | -384.39 |
Exceptional items | 17.13 | 12.14 | 323.25 |
Total Tax | -0.69 | 0.34 | 0.00 |
Profit After Tax (PAT) | -159.50 | -131.31 | -61.14 |
EPS | -10.5 | -8.64 | -8.92 |
BALANCE SHEET OF ARCH PHARMA LABS LIMITED (In Rs. Crores)
PARTICULARS | 2020 | 2019 |
ASSETS | ||
NON-CURRENT ASSETS | ||
Tangible assets | 998.36 | 1052.33 |
Intangible assets | 5.18 | 9.17 |
Goodwill ( On Consolidation) | 9.71 | 9.71 |
Financial assets | 207.11 | 207.33 |
TOTAL NON-CURRENT ASSETS | 1,220.36 | 1,278.55 |
CURRENT ASSETS | ||
Inventories | 832.58 | 729.71 |
Trade receivables | 439.39 | 589.61 |
Cash and Cash Equivalents | 2.77 | 4.19 |
Short-term loans and advances | 614.29 | 628.74 |
TOTAL CURRENT ASSETS | 1,889.02 | 1,952.25 |
TOTAL ASSETS | 3,109.38 | 3,230.80 |
EQUITY AND LIABILITIES | ||
Share Capital | 151.92 | 151.92 |
Share Application Money | 17.51 | 17.51 |
Surplus | -1,776.35 | -1,582.75 |
Minority Interest | 3.39 | 3.39 |
TOTAL EQUITY | -1,603.52 | -1,409.92 |
NON-CURRENT LIABILITIES | ||
Long-term borrowings | 3,070.84 | 3,451.14 |
TOTAL NON-CURRENT LIABILITIES | 3,070.84 | 3,451.14 |
CURRENT LIABILITIES | ||
Short-term borrowings | 113.12 | 113.22 |
Trade payables | 475.48 | 550.94 |
Other current liabilities | 1,048.25 | 520.22 |
Short-term provisions | 5.21 | 5.21 |
TOTAL CURRENT LIABILITIES | 1,642.06 | 1,189.58 |
TOTAL LIABILITIES | 4,712.90 | 4,640.72 |
TOTAL EQUITY AND LIABILITIES | 3,109.38 | 3,230.80 |
DIVIDEND HISTORY
Particulars | 2020 | 2019 | 2018 |
Dividend (final + interim) (In Rs.) | Nil | Nil | Nil |
PERFORMANCE OF THE COMPANY
The revenue from operations of the company increased by 32.67% from Rs. 486.58 Crore in FY 2019 to Rs. 632.29 Crore in FY 2020. The increase in revenue can mainly be attributed to the increase in operational activities at the manufacturing sites and is expected to continue in the coming few years.
EBITDA of the company has increased by 173% from Rs. 14.05 Crore in FY 2019 to Rs. 38.43 Crore in FY 2020. EBITDA margins have improved from 2.95% in FY 2019 to 6.08% in FY 2020.
The finance cost of the company increased by 25.68% from Rs. 162.84 Crore in FY 2019 to Rs. 204.67 Crore in FY 2020.
The company has incurred a loss of Rs. 131.31 Crore in FY 2019, which increased to a loss of Rs. 159.50 Crore in FY 2020. These losses are mainly because of the increasing financial cost of the company.
The current Ratio of the company as of 31st March 2020 was 1.15.
The Company has not given any dividend for the past three years.
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