INITIAL PUBLIC OFFERING APRIL 2006 PLETHICO PHARMACEUTICALS LIMITED
2 Disclaimer Statement This presentation has been prepared by PLETHICO PHARMACEUTICALS LIMITED (“PPL” or “the Company”) solely for providing information about them. The information contained in this presentation has not been independently verified by Anand Rathi Securities Pvt Limited (“ARSPL”). No representation or warranty, express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of such information or opinions contained herein. Neither the Company nor any of its respective affiliates, advisers or representatives nor ARSPL shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. The information contained in this presentation is only current as of its date. Certain statements made in this presentation may not be based on historical information or facts and may be "forward-looking statements", including those relating to the Company’s general business plans and strategy, its future financial condition and growth prospects, and future developments in its industry and its competitive and regulatory environment. Actual results may differ materially from these forward-looking statements due to a number of factors, including future changes or developments in the Company’s business, its competitive environment, information technology and political, economic, legal and social conditions in India. This communication is for general information purposes only, without regard to specific objectives, financial situations and needs of any particular person. Please note that investments in securities are subject to risks including loss of principal amount. ARSPL does not accept any liability whatsoever, direct or indirect, that may arise from the use of the information herein. This presentation does not constitute an offer or invitation to purchase or subscribe for any shares in the Company. ARSPL may from time to time perform investment banking or other services for, or solicit investment banking or other business from, any entity mentioned in this presentation.
5 Total Issue Size Rs. 1100 Mn Issue to PublicRs. 1100 Mn îof which QIB Portion (60%)Upto [●] Equity Shares aggregating to Rs.660 Mn îof which Non-Institutional Portion(10%)Upto [●] Equity Shares aggregating to Rs. 110 Mn îof which Retail Portion (30%)Upto [●] Equity Shares aggregating to Rs. 330 Mn Equity Shares O/s prior to the issue 3,04,00,000 Equity Shares O/s after the issue 34,328,572 at lower end and 34,066,667 at the higher end of the price band
6 Issue Summary Price Band Rs. 280 to Rs. 300 per Equity Share. Issue Size Rs. 1100 Million Minimum Application20 Equity shares and multiples thereof Issue opensApril 10, 2006 -Monday Issue closesApril 17, 2006 -Monday Listing on BSE & NSE BRLM Anand Rathi Securities Private Limited Syndicate MemberEnam Securities Private Limited Registrar to the IssueIntime Spectrum Registry Limited
8 Mission & Vision Mission To provide quality healthcare products at affordable prices driven by the highest standards of ethics and human values. Vision To be a global healthcare company by the year 2010, offering products of highest quality, backed by State-of-the-Art Manufacturing and R & D facilities, to have a strong presence in the area of consumer healthcare business and Nutraceuticals, both in the domestic as well as the International market.
9 Background - Company The group started operations way back in 1963 Plethico was incorporated in 1991 to undertake manufacture of Formulations and undertake focused marketing of ethical/ prescriptions market Focused on innovation and pioneered introduction of: î Doxycycline based unique anti-biotic formulation î Co-trimoxazole based unique anti-bacterial formulation Introduced for the first time in India, novel ayurvedic / herbal preparation (Single Herb Methi extract) Adopted the “Branded Generic” model for marketing allopathic formulations in India in the prescriptions market
10 Background - Company The company has presence in niche segments like îHerbal & Nutraceuticals preparations including Food supplements îOTC / Consumer Products îNDDS
11 Background - Company Operations in 45 countries including India Export targets at the semi-regulated / un-regulated markets of îEastern Europe îCommon Wealth of Independent States (CIS) îAfricas îSouth East Asian (SEA) nations îGulf Co-operation Council (GCC) îLatin American Countries (LAC) Over 150 sales representatives and front line-managers are employed in markets outside India
13 Fully Integrated State of Art Manufacturing Units Can Cater to High Capacity Production of Tablets, Capsules, Liquid Orals, Eye / Ear drops, Injectables, Ointments & Creams. MANGALIA PLANT Manufacturing Facilities KALARIA PLANT Centralized humidity & temperature controlled warehousing Plant built and installed as per cGMP norms
14 Backward Integration Backward Integration by installation of State of the art: î “Klockner Hansell GMBH” machinery for manufacturing Lozenges î“Aoki Japan” machine for PET bottles. Entry into regulated markets with herbal products requires augmenting the quality of herbal remedies vis a vis; herbal remedies exported to Non Regulated Countries. Hence the Company has decided to undertake Organic Farming.
Russia Kazakhstan Moldova Georgia Turkmenistan Ukraine Uzbekistan Tajikistan Kyrgyzstan Azerbaijan Latvia Lithuania Slovakia Ivory Coast DR Congo Benin Sudan Uganda Kenya Ethiopia Eritrea South Africa Nigeria Cameroon Sierra Leone Peru Chile Ecuador Colombia Venezuela Kuwait Yemen Dubai A TRULY GLOBAL REACH Vietnam Papua New Guinea Malaysia Cambodia Philippines El Salvador Nicaragua Costa Rica Panama Guatemala Caribbean Sri Lanka
16 Growth Strategy The Company has invested in future growth by building a two pronged investment footprint. î“Organic growth footprint” - Build robust facilities which will comply to world standards and î “Inorganic Growth footprint” - Invest strategically into strong setup’s either a Marketing & Distribution outfit (called M&D Strategy) Manufacturing cum M&D outfit (Called MM&D Strategy). Backward Integration Always gave due importance to R & D Activities.
17 The Company has entered into various overseas alliances with strategic partners across continents. Common Wealth of Independent States (CIS) Nations: MoU with Rezlov Limited, a pharmaceutical marketing & distribution (M&D) chain for the following countries. The stake held by the Company is as under: î Kazakhstan – 75% î Kyrgyzstan – 75% î Moldova – 63% î Russia – 51% î Ukraine – 51% î Azerbaijan – 51% Overseas Investments
18 Africa MoU signed for: î Kenya – Plethico Africa Ltd - for setting up of world class manufacturing unit with liquid and ointment plant, allowing access to COMESA Countries (Common Market For Eastern & Southern Africa) î Cambodia – Agreement with Tricon Holdings Limited in Cambodia for manufacturing and distribution operations Overseas Investments
19 Key Financial Indicators The Company had sold off its Domestic division (Ethical Allopathic division) to M/s Shreya Life Science Pvt Ltd in October 2003. The extraordinary income of Rs 698.50 Mn is included in Profit Before Tax (PBT) for FY 2004.
20 Key Financial Indicators CAGR of Networth for 2001-2005 is 30.03% Debt Equity for Dec 31, 2005 (3 Months) is at 0.27
23 Growth Initiatives NDDS for diabetes and cancer patients Current submission rate of 55-60 registration dossiers per month for exports Thrust on East Europe, GCC and SEA countries Increase in confectionary products and entry into foot care and oral care segments in domestic Setting up manufacturing JV in Kenya One of the differentiating features for export marketing -Invested over Rs 1Bn in Rezlov group of cos. to gain majority stake -To exercise control over the customers of M&D cos. Domestic reach: îfield force to increase from 100 to 500 over 2 years
24 Growth Initiatives (Contd…) Increased focus on herbals, OTC and nutraceuticals Topline growth Organic -Increase in confectionary products and entry into foot care and oral care segments in domestic -Thrust on East Europe, GCC and SEA countries Inorganic -Rs 280m of issue proceeds planned for company / brand acquisition
26 Summary Non infringing model of Business State of art manufacturing units in Indore possessing capability of manufacturing all possible dosage forms. Strong formulation development technique including NDDS like effervescent tablets. Strong M&D tie up in Russia, CIS & Cambodia Strong management team and motivated workforce Foray into Backward Integration for cultivating essential critical herbs for captive consumption thus enabling high end finger printing technology for herbal formulations Strong system oriented company Product list exceeding 400, transcending more than 39 therapeutic categories exporting to more than 45 countries across the globe