What Is Equity Research?

 Equity research is the study of a business and its

environment in order to make a buy or sell decision about
investing in its shares. This research can also be applied
by an acquirer to a prospective acquisition deal, to
determine the price at which to bid for the securities of a
target company.

 Equity Research is the division of an investment bank

responsible for producing analysis, reports and
recommendations to buy, hold or sell investment
opportunities that the bank or their clients may be
considering.
Objective Of Study

 The main objective of project is to do

fundamental analysis of pharmaceutical companies. To
provide an overview of Pharmaceutical
sector. investment prospects. collected on sales, profit,
earning per share, market price etc.

 As well as driving medical progress by researching,

developing and bringing new medicines that improve
health and quality of life for patients around the world,
the pharmaceutical industry is a key asset to the global
economy.
Top 5 Pharma Companies In India 2021

 Sun Pharmaceutical Industries Ltd

 Aurobindo Pharma Ltd
 Lupin
 Cipla
 Dr Reddy’s Laboratories Ltd

The global pharmaceutical market is expected to exceed USD 1.5

Trillion by 2023. India enjoys a key position in the global
pharmaceutical industry. India is the world’s largest supplier of
generics, accounting for 20% of global exports. It supplies over 50%
of global demand for various vaccines and 40% of the demand for
generic products in the US.

The domestic pharmaceutical market contributes to ~2% of the

global industry in value and ~10% in volume terms. India’s
pharmaceutical spending is predicted to grow at 8-11% CAGR in the
2019-23 period to reach a size of US$ 28-32 Billion.
 1.  Sun Pharmaceuticals  Industries Ltd

It is an Indian multinational pharmaceutical company headquartered

in Mumbai, Maharashtra that manufactures and sells pharmaceutical
formulations and active pharmaceutical ingredients (APIs) primarily in
India and the United States.

Sun Pharmaceutical Industries Ltd has a 24.09 % Stock Weighatage in

Nifty Pharma. The company has total sales of Rs 29066 Cr. Sun
Pharma is the Largest Pharma Companies in India by Revenue and
Market capital.

 Market Cap:  94,378 Cr.
 ROE: 9.19 %
 Sales Growth (3Yrs): 0.67 %
 Promoter holding: 54.56 %
 Debt to equity: 0.25
 Price to book value: 2.28

The company offers formulations in various therapeutic areas, such

as cardiology, psychiatry, neurology, gastroenterology,
and diabetology. It also provides APIs such
as warfarin, carbamazepine, etodolac, and clorazepate, as well
as anti-cancers, steroids, peptides, sex hormones, and controlled
substances

Sun Pharmaceutical Industries Limited including its subsidiaries and

associates (Sun Pharma) is the fourth largest global specialty generic
company that is ranked No. 1 in India and No. 8 in the US. It is the
largest Indian pharmaceutical company in the US and among the leading
Indian pharmaceutical companies in emerging markets. The company
manufactures and markets a large basket of pharmaceutical
formulations covering a broad spectrum of chronic and acute therapies.
It includes generics branded generics complex or difficult to make
technology intensive products over-the-counter (OTC) products anti-
retrovirals (ARVs) Active Pharmaceutical Ingredients (APIs) and
 intermediates. The product portfolio of over 2000 high quality molecules
covers multiple dosage forms including tablets capsules injectables
inhalers ointments creams and liquids.

The products cater to a vast range of therapeutic segments covering

psychiatry anti-infectives neurology cardiology orthopaedic diabetology
gastroenterology ophthalmology nephrology urology dermatology
gynaecology respiratory oncology dental and nutritionals.The company
has global presence with 43 manufacturing facilities across the world.
India and the US are two predominant markets accounting for nearly
70% of the company's revenue. The company has a robust product
pipeline and established presence in Europe and high-growth emerging
markets like Russia Romania South Africa Brazil and Mexico.

QUARTERLY | ANNUA MAR 2021 DEC SEP JUN MAR

L 2020 2020 2020 2020
Total Income 8,633.98 9,151.73 8,808.91 7,739.04 8,287.17
Total Income Growth -5.66 3.89 13.82 -6.61 0.15
(%)
Total Expenses 7,700.84 6,962.58 6,858.45 9,870.99 7,657.95
Total Expenses Growth 10.60 1.52 -30.52 28.90 11.62
(%)
EBIT 933.14 2,189.15 1,950.46 -2,131.95 629.22
EBIT Growth (%) -57.37 12.24 - -438.82 -55.51
Profit after Tax (PAT) 894.15 1,913.41 1,812.79 -1,655.60 492.76
PAT Growth (%) -53.27 5.55 - -435.99 -51.66
EBIT Margin (%) 10.81 23.92 22.14 -27.55 7.59
Net Profit Margin (%) 10.36 20.91 20.58 -21.39 5.95
Basic EPS (₹) 3.70 7.72 7.56 -6.90 1.67
Financial Structure
 Financial Statements

ALANCE SHEET MAR 21 MAR 20 MAR 19 MAR 18 MAR 17  

OF SUN
PHARMACEUTICA
L INDUSTRIES (in
Rs. Cr.)
  12 mths 12 mths 12 mths 12 mths 12 mths  
EQUITIES AND  
LIABILITIES
SHAREHOLDER'S  
FUNDS
Equity Share 239.93 239.93 239.93 239.93 239.93  
Capital
TOTAL SHARE 239.93 239.93 239.93 239.93 239.93  
CAPITAL
Reserves and 24,800.2 24,156.2 22,603.6 22,082.6 20,772.5  
Surplus 3 9 8 8 4
TOTAL RESERVES 24,800.2 24,156.2 22,603.6 22,082.6 20,772.5  
AND SURPLUS 3 9 8 8 4
TOTAL 25,040.1 24,396.2 22,843.6 22,322.6 21,012.4  
SHAREHOLDERS 6 2 1 1 7
FUNDS
NON-CURRENT  
LIABILITIES
Long Term 4,833.56 1,256.69 1,422.50 1,564.69 760.64  
Borrowings
Deferred Tax 0.00 0.00 0.00 0.00 0.00  
Liabilities [Net]
Other Long Term 160.72 161.72 19.12 0.91 0.68  
Liabilities
Long Term 620.84 1,391.96 157.07 345.18 1,132.83  
Provisions
TOTAL NON- 5,615.12 2,810.37 1,598.69 1,910.78 1,894.15  
CURRENT
LIABILITIES
CURRENT  
LIABILITIES
Short Term 1,651.98 4,505.33 4,428.05 5,213.81 4,054.04  
Borrowings
Trade Payables 2,592.61 2,334.89 2,154.92 2,565.97 2,072.60  
Other Current 2,895.29 3,265.58 4,145.13 2,125.89 2,988.58  
Liabilities
Short Term 1,203.67 1,097.94 2,543.73 2,652.75 1,847.43  
Provisions
TOTAL CURRENT 8,343.55 11,203.7 13,271.8 12,558.4 10,962.6  
LIABILITIES 4 3 2 5
TOTAL CAPITAL 38,998.8 38,410.3 37,714.1 36,791.8 33,869.2  
AND LIABILITIES 3 3 3 1 7
ASSETS  
NON-CURRENT  
ASSETS
Tangible Assets 6,007.15 4,910.31 4,709.21 4,400.52 3,869.35  
Intangible Assets 0.00 318.43 269.21 244.05 169.28  
Capital Work-In- 0.00 384.35 456.25 830.39 1,055.11  
Progress
Other Assets 0.00 0.00 0.00 0.00 0.00  
FIXED ASSETS 6,007.15 5,825.35 5,620.96 5,632.41 5,139.13  
Non-Current 16,967.6 16,966.6 17,656.1 18,310.5 19,293.2  
Investments 8 5 6 0 9
Deferred Tax 1,337.45 1,139.71 751.70 751.70 749.06  
Assets [Net]
Long Term Loans 71.39 0.74 1.00 3.42 4.87  
And Advances
Other Non-Current 2,548.82 2,536.76 2,514.54 2,518.57 2,294.73  
Assets
TOTAL NON- 26,932.4 26,469.2 26,544.3 27,216.6 27,481.0  
CURRENT ASSETS 9 1 6 0 8
CURRENT ASSETS  
Current 31.00 395.07 247.95 44.76 40.01  
Investments
Inventories 3,165.72 2,633.67 2,792.62 2,135.64 2,308.28  
Trade Receivables 6,370.62 6,168.13 5,031.47 5,271.44 2,714.70  
Cash And Cash 232.26 654.78 340.77 155.27 170.28  
Equivalents
Short Term Loans 738.57 448.59 294.73 52.05 13.85  
And Advances
OtherCurrentAsset 1,528.17 1,640.88 2,462.23 1,916.05 1,141.07  
s
TOTAL CURRENT 12,066.3 11,941.1 11,169.7 9,575.21 6,388.19  
ASSETS 4 2 7
TOTAL ASSETS 38,998.8 38,410.3 37,714.1 36,791.8 33,869.2  
3 3 3 1 7
OTHER  
ADDITIONAL
INFORMATION
CONTINGENT  
LIABILITIES,
COMMITMENTS
Contingent 0.00 3,863.62 5,549.82 1,186.57 5,829.14  
Liabilities
CIF VALUE OF  
IMPORTS
Raw Materials 0.00 0.00 0.00 0.00 0.00  
Stores, Spares And 0.00 0.00 0.00 0.00 0.00  
Loose Tools
Trade/Other Goods 0.00 0.00 0.00 0.00 0.00  
Capital Goods 0.00 0.00 0.00 0.00 0.00  
EXPENDITURE IN  
FOREIGN
EXCHANGE
Expenditure In 0.00 2,796.39 3,861.02 3,014.34 2,448.41  
Foreign Currency
REMITTANCES IN  
FOREIGN
CURRENCIES FOR
DIVIDENDS
Dividend -- -- -- -- --  
Remittance In
Foreign Currency
EARNINGS IN  
FOREIGN
EXCHANGE
FOB Value Of -- 7,421.87 6,602.54 4,081.64 4,411.81  
Goods
Other Earnings -- -- -- -- --  
BONUS DETAILS  
Bonus Equity -- 183.81 183.81 183.81 183.81  
Share Capital
NON-CURRENT  
INVESTMENTS
Non-Current -- 8.16 139.67 190.14 66.52  
Investments
Quoted Market
Value
Non-Current -- 93.83 17,590.7 18,685.9 134.21  
Investments 7 8
Unquoted Book
Value
CURRENT  
INVESTMENTS
Current -- -- -- -- --  
Investments
Quoted Market
Value
Current -- 395.07 245.26 42.07 40.01
Investments
Unquoted Book
Value

2. AUROBINDO PHARMA LTD.

(AUROPHARMA)

Aurobindo Pharma Limited (APL) one of the world's top 5 manufacturers

of semi synthetic penicillins was incorporated in 26th December 1986 as
a private limited company. Mr. P.V.Ramaprasad Reddy Mr. K.Nityananda
Reddy and a small highly committed group of professionals founded it.
APL is developing manufacturing and marketing active pharmaceutical
ingredients (APIs also referred as bulk actives) intermediates and
generic formulations. The company's robust product portfolio is spread
over 6 major product areas encompassing (Antibiotics Anti-Retro Virals
CVS CNS Gastroenterologicals and Anti-Allergics) with around 65 APIs in
the non-antibiotics and over 55 APIs in the antibiotic segment and the
World Health Organization (WHO) Geneva has also approved
Aurobindo's products.
APL is running with 14 manufacturing plants across the world
conforming to GMP/ISO regulations and an extremely well equipped
R&D facility. Aurobindo Pharma has identified international operations
also catering to over 100 countries. The Company has accelerated the
DMF/ANDA filings programme in its efforts to build a broad product
portfolio for the regulated markets. Cumulatively the Company has filed
a total of 337 DMFs (Drug Master Files) of which 110 are with US FDA
and 133 in Europe including with the EDQM and 102 in other countries.
This is one of the highest filings. The Company commenced its
operations during the year 1988-89 with a single unit manufacturing
semi synthetic penicillins (SSPs) at Pondicherry and it became a public
venture in 1992. In the same year 1992 another unit was also set up for
the manufacture of CMIC Chloride a bulk drug intermediate at
Pashamylaram near Hyderabad through another company namely
Chaitanya Organics Pvt. Ltd.

Later in 1994-95 it was merged with the company. The commercial

production of the pharmaceutical formulation unit was started in April of
the year 1994. Aurobindo Pharma had gone public in 1995 by listing its
shares in various stock exchanges in the country. Glaxo (India) the
Indian subsidiary of the UK-based multinational came to an alliance with
the company to meet its global bulk drug requirements during the year
1997. In the year 1998 the company had launched new formulations like
auronim Suspension in the paediatric segment. During 1999-2000 the
company diversified its product portfolio further with the introduction of
wide range of Cephalosporins (Oral & Sterile) and anti - virals in addition
to macrolides anti-ulcerants quinolones semi-synthetic penicillins and
formulations for domestic and export market.
CAPITAL STRUCTURE OF AUROBINDO

Period Instrument Authorized Issued -PAIDUP-

Capital Capital
FromTo   (Rs. cr) (Rs. cr) Shares Face Capita
(nos) Value l
2019202 Equity 66 58.59 585,938,60 1 58.59
0 Share 9
2018201 Equity 66 58.59 585,915,60 1 58.59
9 Share 9
2017201 Equity 66 58.59 585,907,60 1 58.59
8 Share 9
2016201 Equity 66 58.59 585,882,40 1 58.59
7 Share 9
2015201 Equity 66 58.52 585,169,58 1 58.52
6 Share 6
2014201 Equity 66 29.20 291,982,27 1 29.20
5 Share 5
2013201 Equity 66 29.15 291,457,02 1 29.15
4 Share 1
2012201 Equity 66 29.12 291,211,29 1 29.12
3 Share 0
2011201 Equity 66 29.11 291,121,29 1 29.11
2 Share 0
2010201 Equity 66 29.11 291,121,20 1 29.11
1 Share 0
2009201 Equity 66 27.86 55,728,837 5 27.86
0 Share
2008200 Equity 50 26.88 53,765,268 5 26.88
9 Share
2007200 Equity 50 26.88 53,765,268 5 26.88
8 Share
2006200 Equity 50 26.67 53,348,637 5 26.67
7 Share
2005200 Equity 50 26.64 53,270,000 5 26.64
6 Share
2004200 Equity 50 25.39 50,770,000 5 25.39
5 Share
2003200 Equity 50 25.39 50,770,000 5 25.39
4 Share
2002200 Equity 50 23.25 23,250,000 10 23.25
3 Share
2001200 Equity 50 20.67 20,670,000 10 20.67
2 Share
2000200 Equity 50 20.00 20,002,000 10 20.00
1 Share
1998199 Equity 20 9.45 9,450,000 10 9.45
9 Share
1997199 Equity 10 4.73 4,725,000 10 4.73
8 Share
1996199 Equity 15 4.73 4,725,000 10 4.73
7 Share
1995199 Equity 5 4.73 4,725,000 10 4.73
6 Share
1994199 Equity 5 4.73 4,725,000 10 4.73
5 Share
1993199 Equity 4 1.85 1,850,000 10 1.85
4 Share
QUARTERLY | ANNUAL MAR DEC SEP JUN MAR
2021 2020 2020 2020 2020
Total Income 6,079.60 6,498.31 6,537.19 6,040.37 6,191.02
Total Income Growth (%) -6.44 -0.59 8.22 -2.43 4.47
Total Expenses 4,992.14 2,458.96 5,307.97 4,922.95 5,062.37
Total Expenses Growth 103.02 -53.67 7.82 -2.75 2.27
(%)
EBIT 1,087.46 4,039.35 1,229.22 1,117.42 1,128.65
EBIT Growth (%) -73.08 228.61 10.01 -0.99 15.65
Profit after Tax (PAT) 801.58 2,946.46 806.23 780.58 849.83
PAT Growth (%) -72.80 265.46 3.29 -8.15 20.47
EBIT Margin (%) 17.89 62.16 18.80 18.50 18.23
Net Profit Margin (%) 13.18 45.34 12.33 12.92 13.73
Financial Statement

3. LUPIN LIMITED

Lupin Limited is an Indian multinational pharmaceutical company based

in Mumbai, Maharashtra, India. It is one of the
largest generic pharmaceutical companies by revenue globally.[8] The
company's key focus areas include paediatrics, cardiovascular, anti-
infectives, diabetology, asthma and anti-tuberculosis.

Lupin was founded in 1968 by Desh Bandhu Gupta,[9] who was a

professor of chemistry at BITS-Pilani, Rajasthan. Gupta moved to
Mumbai in the 60s to work on his business enterprise for which initially
he had initially borrowed Rs 5000 from his wife to fund his venture.
Subsequent funding from Central Bank of India, the company was able
to start their manufacturing facility for producing folic acid and iron
tablets for Government of India mother and child health program. Later
Lupin started manufacturing anti TB drugs which at one point formed
36% of the company sales and was considered as the largest TB drugs
manufacturer in the world After success with Lupin, in 1988 Gupta
founded the group's CSR arm, the Lupin Human Welfare & Research
Foundation (LHWRF). This initiative was dedicated to sustainable rural
development with the aim to uplift families living below the poverty line.

As the company grew, in July 2015 the company announced its intention
to acquire Gavis Pharmaceuticals and Novel Laboratories for $880
million.
The founder, Desh Bandhu Gupta died in June 2017 and was
subsequently replaced as chairman by his wife, Manju Deshbandhu
Gupta.
In October 2019, Pharma major lupin limited announced today the
Appointment of Sreeji Gopinatham as Chief Information Officer (CIO).
During early 2020, US government approved USFDA for several Lupin
drugs including for treatment of Tuberculosis, Asthma, Diabetes, etc .

Capital Structure of Lupin

Period Instrument Authorized Issued -PAIDUP-
Capital Capital
FromTo   (Rs. cr) (Rs. cr) Shares Face Capita
(nos) Value l
2019202 Equity 200 90.60 452,998,12 2 90.60
0 Share 1
2018201 Equity 200 90.50 452,493,69 2 90.50
9 Share 7
2017201 Equity 200 90.42 452,082,85 2 90.42
8 Share 0
2016201 Equity 200 90.32 451,576,86 2 90.32
7 Share 9
2015201 Equity 200 90.12 450,582,96 2 90.12
6 Share 9
2014201 Equity 100 89.90 449,488,33 2 89.90
5 Share 5
2013201 Equity 100 89.68 448,375,80 2 89.68
4 Share 4
2012201 Equity 100 89.51 447,529,49 2 89.51
3 Share 3
2011201 Equity 100 89.33 446,641,68 2 89.33
2 Share 1
2010201 Equity 100 89.24 446,201,18 2 89.24
1 Share 9
2009201 Equity 100 88.94 88,943,833 10 88.94
0 Share
2008200 Equity 100 82.82 82,819,550 10 82.82
9 Share
2007200 Equity 100 82.08 82,080,895 10 82.08
8 Share
2006200 Equity 100 80.34 80,344,564 10 80.34
7 Share
2005200 Equity 50 40.14 40,141,134 10 40.14
6 Share
2004200 Equity 50 40.14 40,141,134 10 40.14
5 Share
2003200 Equity 50 40.14 40,141,134 10 40.14
4 Share
2002200 Equity 50 40.14 40,141,134 10 40.14
3 Share
2001200 Equity 50 40.14 40,141,134 10 40.14
2 Share
2000200 Equity 50 2.83 2,830,086 10 2.83
1 Share
1999200 Equity 50 33.55 33,550,865 10 33.55
0 Share
1998199 Equity 50 33.55 33,550,865 10 33.55
9 Share
1997199 Equity 50 33.55 33,550,865 10 33.55
8 Share
1996199 Equity 50 33.55 33,550,865 10 33.55
7 Share
1995199 Equity 50 33.55 33,550,865 10 33.55
6 Share
1994199 Equity 50 33.55 33,550,865 10 33.55
5 Share
1993199 Equity 50 33.55 33,550,865 10 33.55
4 Share
1992199 Equity 50 22.15 22,150,865 10 22.15
3 Share
1991199 Equity 50 22.15 22,150,865 10 22.15
2 Share

Financial Statement
QUARTERLY | ANNUAL MAR DEC SEP JUN MAR
2021 2020 2020 2020 2020
Total Income 3,841.32 4,038.53 3,859.96 3,571.14 4,054.34
Total Income Growth (%) -4.88 4.63 8.09 -11.92 4.96
Total Expenses 3,291.27 3,482.94 3,466.56 3,254.42 3,451.59
Total Expenses Growth -5.50 0.47 6.52 -5.71 -11.09
(%)
EBIT 550.05 555.59 393.40 316.72 602.75
EBIT Growth (%) -1.00 41.23 24.21 -47.45 -
Profit after Tax (PAT) 460.36 438.25 211.02 106.90 389.63
PAT Growth (%) 5.05 107.68 97.40 -72.56 -
EBIT Margin (%) 14.32 13.76 10.19 8.87 14.87
Net Profit Margin (%) 11.98 10.85 5.47 2.99 9.61
Basic EPS (₹) 10.24 9.74 4.71 2.40 8.64

4. CIPLA LIMITED

Cipla Limited is an Indian multinational pharmaceutical company,

headquartered in Mumbai, India. Cipla primarily develops medicines to
treat respiratory, cardiovascular disease, arthritis, diabetes, weight
control and depression; other medical conditions.
As of 17 September 2014, its market capitalisation was ₹49,611.58
crore (equivalent to ₹530 billion or US$7.5 billion in 2019), making it
India's 42nd largest publicly traded company by market value.
On 23 April 2019, Cipla appointed Dr. Raju Mistry as Global Chief People
Officer.

It was founded by Khwaja Abdul Hamied as 'The Chemical, Industrial

& Pharmaceutical Laboratories' in 1935 in Mumbai. The name of the
company was changed to 'Cipla Limited' on 20 July 1984. In the year
1985, the US FDA approved the company's bulk drug manufacturing
facilities. Led by the founder's son Yusuf Hamied, a Cambridge-educated
chemist, the company provided generic AIDS and other drugs to treat
poor people in the developing world. In 1995, Cipla
launched Deferiprone, the world's first oral iron chelator. In 2001, Cipla
offered medicines (antiretrovirals) for HIV treatment at a fractional cost
(less than $350 per year per patient)

In 2013 Cipla acquired the South African company Cipla-Medpro, kept it

as a subsidiary, and changed its name to Cipla Medpro South Africa
Limited. At the time of the acquisition Cipla-Medpro had been a
distribution partner for Cipla and was South Africa's third biggest
pharmaceutical company. The company had been founded in 2002 and
was known as Enaleni Pharmaceuticals Ltd. In 2005, Enaleni bought all
the shares of Cipla-Medpro, which had been a joint venture between
Cipla and Medpro Pharmaceuticals, a South African generics c

Products and services

Cipla sells active pharmaceutical ingredients to other manufacturers as well as
pharmaceutical and personal care products, including Escitalopram (anti-
depressant), Lamivudine and Fluticasone propionate. They are the world's
largest manufacturer of antiretroviral drugs
In July 2020, the company announced the introduction of Gilead
Sciences' Remdesivir under the brand name CIPREMI in India after reaching a
voluntary licensing agreement with parent company and DCGI approval for
"restricted emergency use" in COVID-19 treatment of critical confirmed
patients.
ompany, and in 2008 it changed its name to Cipla-Medpro

Financial Statement

OTHER ADDITIONAL  
INFORMATION
CONTINGENT  
LIABILITIES,
COMMITMENTS
Contingent Liabilities 0.0 3,121.8 4,801.9 4,505.3 4,733.9  
0 0 9 3 2
CIF VALUE OF  
IMPORTS
Raw Materials 0.0 0.00 0.00 0.00 0.00  
0
Stores, Spares And 0.0 0.00 0.00 0.00 0.00  
Loose Tools 0
Trade/Other Goods 0.0 0.00 0.00 0.00 0.00  
0
Capital Goods 0.0 0.00 0.00 0.00 0.00  
0
EXPENDITURE IN  
FOREIGN EXCHANGE
Expenditure In Foreign 0.0 590.26 1,904.1 2,103.3 0.00  
Currency 0 3 3
REMITTANCES IN  
FOREIGN
CURRENCIES FOR
DIVIDENDS
Dividend Remittance -- -- -- -- --  
In Foreign Currency
EARNINGS IN  
FOREIGN EXCHANGE
FOB Value Of Goods -- 5,517.4 5,740.9 4,988.2 --  
5 5 7
Other Earnings -- 86.15 199.06 180.82 --  
BONUS DETAILS  
Bonus Equity Share -- 151.66 151.66 151.66 151.66  
Capital
NON-CURRENT  
INVESTMENTS
Non-Current -- -- -- -- --  
Investments Quoted
Market Value
Non-Current -- 6,355.3 3,803.6 -- --  
Investments Unquoted 2 1
Book Value
CURRENT  
INVESTMENTS
Current Investments -- -- -- -- --  
Quoted Market Value
Current Investments -- 834.43 2,011.5 1,039.7 638.18
Unquoted Book Value 8 4
5. Dr. REDDY’S LABORATORIES LTD

Dr. Reddy's Laboratories is an Indian

multinational pharmaceutical company located
in Hyderabad, Telangana, India. The company was founded by Anji
Reddy, who previously worked in the mentor institute Indian Drugs and
Pharmaceuticals Limited.[2] Dr. Reddy's manufactures and markets a
wide range of pharmaceuticals in India and overseas. The company has
over 190 medications, 60 active pharmaceutical ingredients (APIs) for
drug manufacture, diagnostic kits, critical care,
and biotechnology products.

Dr. Reddy's began as a supplier to Indian drug manufacturers, but it

soon started exporting to other less-regulated markets that had the
advantage of not having to spend time and money on a manufacturing
plant that would gain approval from a drug licensing body such as
the U.S. Food and Drug Administration (FDA). By the early 1990s, the
expanded scale and profitability from these unregulated markets
enabled the company to begin focusing on getting approval from drug
regulators for their formulations and bulk drug manufacturing plants - in
more-developed economies. This allowed their movement into regulated
markets such as the US and Europe. In 2014, Dr. Reddy Laboratories was
listed among 1200 of India's most trusted brands according to the Brand
Trust Report 2014, a study conducted by Trust Research Advisory, a brand
analytics company.

By 2007, Dr. Reddy's had seven FDA plants producing active

pharmaceutical ingredients in India and seven FDA-inspected and ISO
9001 (quality) and ISO 14001 (environmental management) certified
plants making patient-ready medications – five of them in India and two
in the UK.
Since then the Company has also been focused on implementing
significant improvements to its cyber and data security systems to
safeguard from such risks in the future.The Company continues to
consider the impact of COVID-19 pandemic in assessing the
recoverability of receivables goodwill intangible assets and certain
investments.During December 2020 the company entered into a
definitive agreement with Glenmark Phannaceuticals Ltd. to acquire
certain brands in various Emerging Market countries for a total
consideration of Rs 1516 million. The said transaction was accounted for
as an acquisition of product related intangibles .

Financial Statement

BALANCE SHEET OF DR MAR 21 MAR 20 MAR 19 MAR 18 MAR 17  

REDDYS
LABORATORIES (in Rs.
Cr.)

  12 mths 12 mths 12 mths 12 mths 12 mths  

EQUITIES AND  
LIABILITIES

SHAREHOLDER'S FUNDS  

Equity Share Capital 83.20 83.10 83.00 83.00 82.90  

TOTAL SHARE CAPITAL 83.20 83.10 83.00 83.00 82.90  

Reserves and Surplus 16,900.50 15,108.8 12,601.10 11,724.8 11,517.70  

0 0

TOTAL RESERVES AND 16,900.50 15,108.8 12,601.10 11,724.8 11,517.70  

SURPLUS 0 0
TOTAL SHAREHOLDERS 16,983.70 15,191.9 12,684.10 11,807.8 11,600.60  
FUNDS 0 0

NON-CURRENT  
LIABILITIES

Long Term Borrowings 17.70 19.30 345.40 488.00 485.20  

Deferred Tax Liabilities [Net] 0.00 0.00 55.50 0.00 0.00  

Other Long Term Liabilities 42.80 29.60 28.50 31.30 41.10  

Long Term Provisions 25.10 54.50 54.70 53.30 62.30  

TOTAL NON-CURRENT 85.60 103.40 484.10 572.60 588.60  

LIABILITIES

CURRENT LIABILITIES  

Short Term Borrowings 1,180.90 1,043.60 546.30 2,100.80 1,869.90  

Trade Payables 1,336.40 1,068.40 1,031.60 1,061.00 778.70  

Other Current Liabilities 1,744.30 1,861.20 1,316.70 1,384.70 1,401.00  

Short Term Provisions 298.70 207.30 184.70 173.40 208.40  

TOTAL CURRENT 4,560.30 4,180.50 3,079.30 4,719.90 4,258.00  

LIABILITIES

TOTAL CAPITAL AND 21,629.60 19,475.8 16,247.50 17,100.3 16,447.20  

LIABILITIES 0 0

ASSETS  

NON-CURRENT ASSETS  

Tangible Assets 6,745.10 3,769.80 3,950.40 3,979.00 4,043.30  

Intangible Assets 0.00 664.10 732.30 738.30 798.80  

Capital Work-In-Progress 0.00 384.10 400.10 675.00 540.00  

Other Assets 0.00 0.00 0.00 0.00 0.00  

FIXED ASSETS 6,745.10 4,845.70 5,082.80 5,392.30 5,382.10  

Non-Current Investments 3,392.20 3,367.10 1,819.10 1,953.70 1,802.80  

Deferred Tax Assets [Net] 254.80 612.90 0.00 93.10 82.10  

Long Term Loans And 1.20 1.20 33.20 199.10 193.20  

Advances

Other Non-Current Assets 77.00 542.20 379.20 423.60 393.20  

TOTAL NON-CURRENT 10,470.30 9,369.10 7,314.30 8,061.80 7,853.40  

ASSETS

CURRENT ASSETS  

Current Investments 1,597.20 2,118.40 2,114.40 1,682.80 1,299.10  

Inventories 2,819.70 2,190.40 2,015.60 1,856.80 1,809.70  

Trade Receivables 4,080.00 4,638.70 3,717.70 4,203.80 4,405.40  

Cash And Cash Equivalents 1,306.30 39.20 113.20 120.70 66.70  

Short Term Loans And 0.00 0.00 0.00 0.00 0.00  

Advances

OtherCurrentAssets 1,356.10 1,120.00 972.30 1,174.40 1,012.90  

TOTAL CURRENT ASSETS 11,159.30 10,106.7 8,933.20 9,038.50 8,593.80  

0

TOTAL ASSETS 21,629.60 19,475.8 16,247.50 17,100.3 16,447.20  

0 0

OTHER ADDITIONAL  
INFORMATION

CONTINGENT LIABILITIES,  
COMMITMENTS

Contingent Liabilities 0.00 1,068.60 696.50 716.70 707.90  

CIF VALUE OF IMPORTS  

Raw Materials 0.00 0.00 0.00 0.00 0.00  

Stores, Spares And Loose 0.00 0.00 0.00 0.00 0.00  

Tools

Trade/Other Goods 0.00 0.00 0.00 0.00 0.00  

Capital Goods 0.00 0.00 0.00 0.00 0.00  

EXPENDITURE IN  
FOREIGN EXCHANGE

Expenditure In Foreign 0.00 3,961.60 1,910.40 1,891.60 0.00  

Currency

REMITTANCES IN  
FOREIGN CURRENCIES
FOR DIVIDENDS

Dividend Remittance In -- -- -- -- --  
Foreign Currency

EARNINGS IN FOREIGN  
EXCHANGE

FOB Value Of Goods -- -- -- 7,262.30 --  

Other Earnings -- 8,419.30 8,867.30 -- --  

BONUS DETAILS  

Bonus Equity Share Capital -- 55.87 55.87 55.87 55.87  

NON-CURRENT  
INVESTMENTS

Non-Current Investments -- 1.10 3.80 3.00 3.50  

Quoted Market Value

Non-Current Investments -- 5,546.60 4,033.00 135.40 --  

Unquoted Book Value

CURRENT INVESTMENTS  

Current Investments Quoted -- -- -- -- --  

Market Value
Current Investments -- -- -- 1,682.80 1,299.10
Unquoted Book Value

REVIVEW OF LITERATURE

1 SubbaRaoChanganti(2008), states in his book, “Pharmaceutical Marketing in

India”, that the country is spending as less as 1.9 per cent of sales on R&D as
compared to 10 – 20 per cent spent by pharmaceutical companies in the
developed world. The book claims that the reason for such low R&D funding by
Indian companies were due to low profitability. He further maintains that
there is an abysmally low record of drug discovery in India; also the earliest
drug discovered in India was the public sector undertaking. Therefore, he
wonders why is it that in forty years the Indian pharmaceutical industry could
not introduce a handful of commercially successful new drugs.
2 Suresh Koshy (1995), in hisBoston University paper, The Effect of TRIPS on
Indian Patent Law: “A Pharmaceutical Industry Perspective” explains the
importance of patent compliance with TRIPS and how it affects Indian
pharmaceutical industry. He was of the opinion that the industry should have
used the provision of ten year grace period effectively with active assistance
from the government of India to prepare them ready and competent with the
rest of the world. Government should have helped the industry with various
fiscal and monetary incentives to make strong R&D before the actual
implementation of TRIPS in 2005. The paper further discuss about creating an
atmosphere of reformed patent laws and relaxed drug control regulations for
companies to cap prices for new drug research that ensures a steady supply of
new medications to consumers and highlighted the example of Japan’s
technological development and patent reform.
3 Jean O. Lanjouw (1997), in the Yale Universitydiscussion paper, The
Introduction of Pharmaceutical Product Patents in India: “Heartless
Exploitation of the Poor and Suffering” claims India won’t be benefitted much
by introducing product patent because; in India the drug accessibility is an
issue toalmost 70 per cent or so of its population. Therefore, he feels the
inventor company may prompt to be discouraged in introducing new drug at
low price in the initial years despite patent protection. As discussed in the
paper, the benefit of patent protection will be possible provided there is
enough R&D is done to develop drug therapies for the set of diseases which
are relevant to Indian consumers, which according to him is done very little.
The paper further discuss that India may not benefit even in R&D investments
by MNC as he feels a strong intellectual property rights alone will not compel
MNC to relocate R&D in India.
4 SanjeeveChandran et al. (2005), in their paper, Implication of New Patent
Regime on Indian Pharmaceutical Industry: “Challenges and Opportunities”
argues that the absence of strong patent protection and encouraging reverse
chemical process engineering for molecules already invented is responsible for
poor R&D orientation, lack of professional expertise in new chemical entity
development and lesser exposure to conducting advanced clinical trials by
pharmaceutical industry in the country. The report further claims that there
was very little or no effort was invested in the original drug discovery research
leading to new drug molecules. It also maintains that more 90 per cent
companies in India do not have sufficient capital or technology to initiate new
drug research. Irrespective of the fact that the report suggests the edge exists
for Indian pharmaceutical companies only if they are into continuous process
of innovation and introduction of new drug molecules.
5 SudipChaudhari (2005), in his IIMC, working paper, “TRIPS and Changes in
Pharmaceutical Patent Regime in India”, describes TRIPS wasn’t a natural
acceptance in the parliament but a forced presidential decree, this reflects the
opposition to product patent in India. It is said that product patent benefits
only the inventor company, for example the exorbitant cost of AIDS drugs (US$
10,000/ year), however, the price later crashed to US$ 350 to US$ 201/year
only after due intervention from companies in India, which followed only
process patent. Thereport further examines that the provision of compulsory
licensing, which strike a balance between the private rights of patentees and
the socio-economic needs and objectives of its people. However, its
interpretation is so unclear provides opportunities for patentees to manipulate
the process by litigation to prevent others from getting such licenses.
6 DwijenRangnekar (2005), in his University of Warwick working paper, No
Pills for Poor People? “Understanding the Disembowelment of India’s Patent
Regime” discussed about the positive side of accepting the product patent as
Indian companies can fully exploit the export market for their future growth
because the domestic market has its own limitation with respect to India’s
relatively low per capita income, limited access to medicine and negligible
insurance coverage. Indian companies can capitalize on their strength to get
USFDA approval for ANDA of generic drugs, strategic alliances with foreign
firms, technology transfers, and enter areas of shared research, overseas
production and global marketing.
7 SudipChaudhuri (2007), in his IIMC working paper, “Is Product Patent
Protection Necessary in Developing Countries for Innovation? R&D by Indian
Pharmaceutical Companies after TRIPS”,shows the R&D expenditure around
when TRIPS came into effect have gone up in Indian companies not only for the
development of new process but for new chemical entities as well. However,
argues that the incentive to do R&D is not primarily due to the anticipated
product patent in India. He claims, for that matter, the product patent regime
have not made much difference to developed countries in terms of R&D
investments. The report further claims that the increased R&D investments yet
to prove competence in innovating new products.
8 Gopakumar G Nair (2008), in his journal, “Impact of TRIPS on Indian
Pharmaceutical Industry” views taking India to the global patent arena withre-
introduction of product patent was the major contribution to TRIPS. Gives
detailed account of various patent amendment acts culminating to IPA 2005.
He believes that TRIPS agreement was a boon to Indian pharmaceutical
industry as it had given from pre-TRIPS complacency to a sense of direction
and urgency with regard to setting up world-class research facilities, initiation
of New Drug Delivery System and introduction of new molecule research. He
feels the post-TRIPS era has boosted pharmaceutical exports substantially not
only to LDC but developed countries such as US and Europe. The report further
says that the environment of the intellectual property right (IPR) knowledge
has strengthened considerably in India.
9 Ravi KiranandSunita Mishra (2009), in their international paper, “Changing
Pragmatics of the Indian Pharmaceutical Industry in the Pre and Post TRIPS
period” highlights the fact that, with the reintroduction of product patents,
many Indian pharmaceutical companies have recognized the importance of
R&D investments and discovery of new chemical entities. This has prompted
many companies to increase their R&D expenditures, which has touched a
growth of 5.07 per cent from 3.88 per cent pre-TRIPS period. The study further
reveals a strong relationship between increase in size of the firm lead to
increase in R&D activities as well as R&D performance. The study has also
found that there is a shift in better technology in pharmaceutical industry in
India to suit the changing global scenario.
10 Ravi KiranandSunita Mishra (2009), in their international research paper,
Performance of the Indian Pharmaceutical Industry in Post-TRIPS period: “A
Firm level Analysis” observes the increase in R&D spending has brought drastic
shift in the structure of R&D activities of Indian companies not only for new
drug discovery but for developing capabilities to assimilate and exploit
knowledge available externally. Indian firms are also able to tackle complex
chemical synthesis relatively in a short period of time with cost efficiency.

Abstract
Describes a general theory of social behavior-equity theory-consisting of
4 propositions designed to predict when individuals will perceive that
they are justly treated and how they will react when they find themselves
enmeshed in unjust relationships. Research conducted to test equity
theory is summarized. Ways in which equity theory interlocks with other
major social psychological theories are discussed. Some ways in which
equity theory can be applied to understanding social problems are
considered. (103 ref.) (PsycINFO Database Record (c) 2016 APA, all
rights reserved)

 Theory and Business Relationships The vast majority

of equity research has been
conducted in industrial settings … elsewhere (see Adams, 1965; Lawler,
1968; Opsahl & Dunnette,
1966; Pritchard, 1969; Weick & Nesset, 1969), we will
not review this literature

Although there is a large body of research on brand equity, little in terms

of a literature review has been published on this since Feldwick's (1996)
paper. To address this gap, this paper brings together the scattered
literature on consumer-based brand equity's conceptualisation and
measurement. Measures of consumer-based brand equity are classified
as either direct or indirect. Indirect measures assess consumer-based
brand equity through its demonstrable dimensions and are superior from
a diagnostic level. The paper concludes with directions for future
research and managerial pointers for setting up a brand equity
measurement system.