Piramal Healthcare, Diagnostics Division

Piramal Healthcare entered Diagnostics Business by acquiring Boehringer Mannheim India Ltd (Roche Diagnostics) in the year 1996. Piramal Healthcare nurtured the diagnostics business by introducing new tests and by 2005 we reported sales revenues of Rs 70 Crs. In 2005 we handed over the business to Roche Diagnostics as per the negotiated settlement.Piramal Healthcare has today rebuilt the business by installing more than 100 fully automated biochemistry analysers(BS 300, BS 400, respons 920) and more than 800 semi-auto analysers. (Photometer 5010). Today we have made our presence felt with the Diasys range of reagents. We have a sizable market share of Lipids and perhaps no 2 selling immunoturbidimetric HbA1c kit. We have also installed more than 350 hemaology analysers (Swelab Alfa) and more than 20 Excell 2280 (5 part diff ) analysers.We have initiated a quality movement by educating customer about the quality aspects through our monthly magazine QC Guideline. We have released 34 issues so far... in line with our credo of Knowledge, Action, Care. We reduce the burden of internal quality control cost by offering Trulab N/P free to customer against their patronage of Diasys reagents…. this is “ction” or act by which we want to partner you in providing quality reports to your customers(patients) and care for faster diagnosis and treatment.We have a strong infrastructure of 30 service engineers and more than 120 distributors for after sales service and logistics support.We are also building a robust web based after sales support software and DIQAP (Diasys International Quality Assessment Program).We will soon introduce immunology rage with emphasis on blood banking parameters, hepatitis markers and TORCH kits.

Drawing upon the largest source of perpetual wisdom, The Bhagvad Gita – a source of inspiration for our chosen path of excellence, we abide by the three distinct principles of: 

Gyan Yoga – the principle of knowledge and intellect Karma Yoga – the principle of action and entrepreneurial spirit Bhakti Yoga – the principle of care and compassion

Each one of us is encouraged to exhibit these values in our daily actions towards the realization of our collective vision of democratizing healthcare. Our values prescribe us to adhere to the following:

We will take the right action only if it is backed by knowledge Our care will have an impact only with timely and bold action Our actions create value only if we care for our customer’s success

 Elaborating these further:Knowledge

Building a deep understanding of our customer and domains Applying creative / breakthrough ideas for business improvement and growth opportunities

 Action

Execution - meticulous planning and follow through Passionate about delivering outstanding results

Entrepreneurial – continuously exploring business improvement and growth opportunities Care

Commitment to our internal and external customers’ results Create opportunities for personal and professional growth by developing themselves and others

i-sure

Piramal Healthcare launches i-sure Ovulation test kit as an addition to its women's intimate range consisting of i-pill and i-can.i-sure Ovluation test kit detects those 2 days of the month when the chances of conception are highest for any woman.

i-can

i-can is a one step pregnancy test kit containing 1 test device and 1 disposable dropper.

i-pill

i-pill is a single dose emergency contraceptive pill, a safe and easy way to avoid unwanted pregnancy due to unprotected sex or contraceptive failure. To be taken orally within 12 hours and not later than 72 hours of unprotected sex. i-pill has no long term side effects. It has been approved by scientific and regulatory authorities as safe. One should carefully read the pack insert when using i-pill.

Polycrol

A 40 years long heritage with a new avatar makes Polycrol an ideal choice in acidity. Its active molecules work with a unique 2X

Lacto Calamine

Lacto calamine is a more than two decades old, expert tested & trusted brand and is the choice of over a million women across India and beyond. Its unique combination of Glycerin and Kaolin offers complete SKINSURANCE for the skin & make it suitable for all skin types.

Jungle Magic

Piramal Healthcare known for its expertise in creating and building sustainable brands has conceptualized the “Jungle Magic” range by using natural fruity fragrances that will appeal and attract children.

Saridon

Any headache warrants just one Saridon, the No. 1 headache analgesic.

Complete

Supractiv Complete, designed by experts with specially selected ingredients, such as vitamins, minerals, micro-nutrients, antioxidants, amino acids, ginseng etc., provides complete nutrition from head to toe.

Tri Activ

Tri Activ is India’s Grade 1 Anti Bacterial Soap. Its active agent Triclosan helps fight gram positive and gram negative bacteria that can cause problems such as skin/ throat infections, diarrhea, typhoid and pneumonia. It keeps one active and fresh throughout the day while still being gentle on the skin.

Overview

Human capital is the most valued asset in our organisation. We believe in transparency of systems and processes, providing opportunities to learn and grow and empowering our employees through care as a result of which our attrition levels are much lower than the industry standards and we are emerging as a preferred employer in the OTC space.Human capital is broadly divided into two :

Field Force (employees who operate from various locations across the country and would include employees from Sales, HR, Training, Supply Chain and Administration functions)

Corporate (all employees who are based out of Head Office, includes all functions)

Rapid increase in number of employees from 250 in 2009 to 1100 in 2011 commensurate with the growth ambition of the organisation.We believe our people are the competitive edge for our business.

Annual report for FY 2012Summary

PROFIT & LOSS ACCOUNT

Details (in Cr) for the 10 years of  :: FY2003 : FY2004 : FY2005 : FY2006 : FY2007 : FY2008 : FY2009 : FY2010 : FY2011 : FY2012Total Income 1,402 : 1,413 : 1,342 : 1,623 :  2,472 : 2,879 : 3,288 : 3,777 : 2,009 : 2,352EBITDA : 333 :304 : 203 : 238 : 384 : 548 : 589 : 833 : 379 : 471Interest 61 24 19 17 31 46 84 184 89 215Profit Before Tax :146 : 203 : 211 : 148 : 267 : 373 : 341 :  500 : 16,415 :  121Profit after Tax : 116 : 200 : 164 : 124 : 228 : 334 : 316 : 482 : 12,736 : 115Earnings per Share : 30.3 : 52.1 : 8.5* :  5.8 : 10.3 : 15.9 : 15.1 : 21.4 : 572.2** : 6.6

* Face value of shares changed to Rs.2 per share from Rs.10 per share post share split in ratio of 1:5** Includes gain on account of sale of the healthcare solutions business and sale of subsidiary - Piramal Diagnostics Services Private Limited

FINANCIALS - FY2012: (CONSOLIDATED) 

Summary - consolidated:

  Total Operating Income : Rs.2,352.3 Cr  R&D Expenses : Rs.233.1 Cr

  EBITDA : Rs.471.3 Cr  Net Profit : Rs.115.3 Cr  Gross margins : From 65.5% to 60.6% in FY2012  EBITDA Margin : From 18.9% to 20.0% in FY2012

FINANCIAL HIGHLIGHTS –In Crs(CONSOL)

Particulars   ::  FY2012 ::  FY2011 Growth %Net Sales     ::  2,083.8 :: 1,627.3 :: 28.1Investment Income :: 219.4 :: 335.8 :: (34.7)Other Operating Income :: 49.1 :: 45.8 :: 7.3Total Operating Income :: 2,352.3 :: 2,008.8 : 17.1EBITDA :: 471.3 :: 378.7 :: 24.4Interest Expense :: 215.5 :: 88.8 :: 142.6Depreciation :: 129.3 :: 95.9 :: 34.9Exceptional Items :: 5.7 :: (16,220.5)  ::Profit Before Tax :: 120.9 :: 16,414.6  :: -Tax 5.6 :: 3,678.9 :: -Profit After Minority Interest :: 115.3 :: 12,735.7 :: -EPS (Face value Rs.2/-) :: 6.6 :: 572.2 :: -EPS before exceptional items (net of tax) Rs.6.9 Rs. 15.2  -

DIVIDEND : Recommended Dividend at Rs.17.50 per equity share of Rs.2 (i.e. 875%).

OPERATIONS HIGHLIGHTS- Consolidated

Pharma Solutions:

  New contract signed for commercial manufacturing of off-patent product on an exclusive basis for a large pharma

company

  Significant ramp-up in volumes from a key customer for an ongoing contract at Digwal site

  Capacity utilisation of oral solid dosage improved significantly

  Our facilities at Pithampur, Digwal and Toronto cleared USFDA audit successfully

Piramal Critical Care:

  Settled patent litigation with Baxter on - generic version of Baxter’s SUPRANE® (desflurane)

  Increased market share in US for sevoflurane

  Received registrations for sevoflurane in 28 EU countries

OTC & Ophthalmology:  Rank moved from 9th to 7th in OTC market in India, market share increased from 1.3% to 1.5% in FY2012

  Lacto Calamine and Saridon were elected as superbrands during FY12

  Extended i-pill franchise across women’s intimate range of products

Innovative Discovery & Commercialisation:

  Completed Phase I/II trial for P276 in combination with gemcitabine for pancreatic cancer in India

  Completed Phase I trials of P1446, an oral Oncology molecule in India and Canada

  Received European CE mark approval in April 2012 for innovative bio-orthopaedic product for cartilage repair BST-

CarGel®

Financial Services Business:

  Commenced lending to real estate companies; highly experienced team in place

  Built high quality loan book of Rs.351 Cr as on 31st March 2012

  INDIAREIT received a mandate from Trafalgar/F&C Reit to manage their India investment (Amount: US$ 36 million)