Industry Profile: Indian pharmaceutical sector is among the fastest-growing market, the third-largest market by volume and thirteen by value. It is expected that the Indian pharma industry will grow with a 15% CAGR between 2015-20. The Indian pharmaceutical industry is expected to become $55 billion by 2020, emerging as the sixth-largest market by absolute size. India is the largest supplier of generic drugs globally, with 20% by volume. In addition, 80% Anti RETROVIRAL drugs used against AIDS all over the world are supplied by Indian companies.
India maintains its lead over China in pharmaceutical export with 11.44% year-on-year growth to $21.91 billion. Drug approval to Indian pharma from USFDA has also increased by nearly double, but with a substantial inspection, the biggest problem for many Indian pharmaceutical companies now.
All due to support from govt of India, the sector is thriving and surviving against global competition. The pharmaceutical industry is permitted to receive 100% FDI under the automatic route. The sector attracts FDI inflows of about $14 billion between April 2000 and December 2016. Many global companies like Abbott and GSK are investing in India.
Company Profile: One of the leading pharmaceutical manufacturing companies, Aurobindo pharma founded in 1986. Today the company operates in over 100 countries, with a product portfolio of therapeutic segments including antibiotic, Anti Retroviral, cardiovascular, and gastroenterology. In addition, the company is the market leader in Semi-synthetic Penicillin. The company is maintaining its network of subsidiaries, manufacturing plant, and Marketing network in China, Brazil, Japan, South Africa, the UK, USA. Its marketing partners include AstraZeneca and Pfizer. over 70% of its revenue is from international business.
Shareholding Pattern: BSE Data
Financials and Ratios : [table id=62 /]
Future Prospects: The company is a global pharmaceutical manufacturer and marketer. Like other Pharma companies in India, The company is also coming under the scanner of the US FDA. Recently it received observations for the Hyderabad unit. The company’s fundamentals are excellent, but the way the market is reacting is an overreaction. The company has extensive research facilities, which are very important for pharma. Though the Expense on research is supposed to show as Expense on the balance sheet, the company’s cash flow is strong and growing. The company is investing heavily in business development and the acquisition of assets.
