1. WELCOMEWELCOME
CORPORATE STORY
By : Krishna Murari

2. Why Pharmaceutical
The Pharmaceutical In India is the world third largest in terms of
volume and stands 14th
in terms of values.

3. Why Lupin
 Lupin is the 4th
largest player in Indian pharmaceuticals industry.
 It has emerged as an out performer in the Pharma sector.
 Its Stock counted among frontline farm stock and considered for
the long term buy.
 The company over the year has grown to be one of the top ten
generic company in the USA, Japan & South African market.

4. About Lupin
 Lupin Limited is an innovation led transnational pharmaceutical
company producing a wide range of quality, affordable generic and
branded formulations.
 Lupin first gained recognition when it became one of the world's
largest manufacturers of Tuberculosis drugs.
 Lupin has emerged as the 4th largest and the fastest growing Top 5
company in the U.S.A.
 Began Operations : 1968

5. About Lupin
Board of Directors
• Dr Desh Bandhu Gupta - Chairman
• Dr Kamal K Sharma - Managing Director
• Mrs M. D. Gupta - Executive Director
• Mrs Vinita Gupta - Director
• Mr Nilesh Gupta - Executive Director
• Dr Vijay Kelkar - Director
• Mr Richard Zahn - Director
• Mr R. A. Shah – Director

6. 6
Lupin’s FacilitiesLupin’s Facilities
LOCATION PRODUCTS APPROVALS
Mandideep,
Madhya
Pradesh
Cephalosporins
Prils
WHO, US
FDA, UK
Tarapur,
Maharashtra
Rifampicin
Lovastatin
US FDA,
WHO
Ankleshwar,
Gujarat
Ethambutol
Intermediates
WHO
Aurangabad,
Maharashtra
Anti TB
Lisinopril
WHO, MSF,
Verna,
Goa
Non-
cephalosporin
Oral FD
US FDA,
Jammu,
J&K
Oral FD FDA
Indore,
Madhya
Pradesh
API
FD
-
Baroda,
Gujarat
CRAMS -
Pune,
Maharashtra
R&D
Goa
Pune
arapur
nkleshwar
Mandideep
Aurangabad
Jammu
Mumbai
Indore
Baroda
Head Office:- Mumbai, Maharashtra

7. Vision Of The Company
An Innovation Led,
Transnational
Pharmaceutical Company.

8. Mision Of The Company
Our mission is to become a
transnational pharmaceutical company
through the development and
introduction of a wide portfolio of
branded and generic products in key
markets.

9. Values Of The Company
Superior Performance
Entrepreneurship
Customer Orientation
Working Together
Respect for People
Integrity

10. History & Milestone Of Lupin
1968: Lupin started business.
1972: Lupin Laboratories Pvt. Ltd was incorporated.
1980: Lupin Started a formulations plant and an R&D center at
Aurangabad (Maharastra).
2001: State-of-the-art R&D Centre at Pune was Started.

11. History & Milestone Of Lupin
2004 : WHO approval was received for State of the art
formulation Plants at Goa and Aurangabad.
2009 : Lupin acquired majority stake in Multicare
Pharmaceuticals Philippines Inc.
2011: Lupin Acquires I'rom Pharmaceuticals through its Japanese
Subsidiary.

12. Awards-Accolades Of Lupin

13. Awards-Accolades Of Lupin
2009 :International Excellence Award by Institute of Economic
Studies.
2010 : Best Drug Development Company, Asia' by The New
Economy Pharmaceutical & Healthcare Awards.
2010: Lupin wins 'The Most Promising Entrant into the Big
League' by CNBC India Business Leader Awards.
2011: Lupin ranked amongst India's Top 3 'Best Companies to
Work For' in Healthcare and Pharma Sector.
2012: Mrs. Vinita Gupta won the Business Today '30 Most
Powerful Women in Business' award.

14. STP Analysis

15. STP Analysis
Segmentation
Anti TB segment, Cardiovascular, Oral and injectable, pediatric
products API’s, Anti-Infectives segment .

16. STP Analysis
Targeting
Healthcare professionals, doctors treating patients suffering from
TB, respiratory & cardiovascular diseases.

17. STP Analysis
Positioning
It is innovation led pharmaceutical company, which specializes in
generic, API & branded formulations for developed &
developing world.

18. Marketing Mix

19. Product
Product on the basis of two types:
Formulation.
API’s.

20. Product
 Formulation : This is the production of capsules, tablets and
syrup with the help of API’s. A branch which is producing
API’s will send this for formulation.

21. Product
Product category Segment Product(medicine)
Lupin Pharma Semi acute therapy , Anti-TB R-cinex,Akurit
Lupin Respira Anti-Asthma, respiratory L-cin,Telecast
Endeavour Anti-biotics, pain management Softovac, cefaxone
Maxter Wound management Tazar, Merotrol
Pinnacle Cardiac market Ramistar, Lupenox
Lupin CVN Nephrology Novastat
Lupin Diabetes
Care
Diabetes market Misobit, Telista
Mindvision Neuropsychiatry like stroke,
depression, anxiety
Cognistar, citistar
Lupin Femina Women’s health care segment Faa-20, Luprolide

22. Product
API’s : This is the active pharmaceutical
ingredient. This is in the form of powder and
this is generally using in the formulation of
medicine. It is the kind of production .

23. Product
Product category Product(medicine)
Anti-Biotics Cephalexin , Cefadroxil
Anti-TB Rifampicin, Rifabutin
Cardiovascular Lisinnopril, Simvastatin
Central nervous system Lacosamide,Pregabalin
Analgesics Flupirtine
Anti-Gout Febuxostat

24. Place
 Lupin has created strong foothold in the advanced markets
of USA , Europe, Japan , Australia and emerging markets of
India and some of the other Rest of the world countries.
.

25. Price
 Initially the company adopted Cost based pricing strategy but after
new Pharma pricing policy, it has changed its pricing policy.
 New Pricing Policy
 New pricing policy is good for the people of India who can buy essential
drugs at cheaper prices and at the same time it is less taxing for the
Pharma companies.

26. Promotion
 Influencing the physician is key to pharmaceutical sales.
Physicians are the most important players in pharmaceutical
sales.
 Eli Lilly India (Lilly) and Lupin ltd announced that they
have entered into strategic collaboration to promote and
distribute Lilly’s Hum insulin range of products.

29. PESTAL Analysis

30. PESTAL Analysis
Political
Governments have a responsibility to take all necessary measures
to ensure that much-needed new medicines are developed,
become available and are accessible.

31. PESTAL Analysis
Economic
 Global economic crisis.
 Reduction in individual income.
 The economic crisis pressure are seeing an increased growth in
strategic buying groups who are forcing down prices.

32. PESTAL Analysis
Social/Culture
There is also the problem of the increasing obesity
amongst the population and its associated health risks.

33. PESTAL Analysis
Technological
The technological advancement creates new business prospects
both in terms of new therapy systems and service provisions. The
online opportunities will see the growth in:
Customized treatment
Social media for health care
Direct to patient advertising
Direct to patient communication

34. PESTAL Analysis
Legislation
The pharmaceutical industry has many regulatory and legislative
restriction.
Changes to advertising laws.
Increased litigation.

35. Porter’s five forces Analysis

36. Porter’s five forces Analysis
Power of Buyers
 Generic (low cost versions of the branded drugs) drugs offer
cost-effectives to the innovator drugs and thus offer significant
savings for buyers.
 The bargaining power of buyers is high.

37. Porter’s five forces Analysis
Power of suppliers
 The barging power is high for API companies with difficult to
manufacture products. These companies command premium
prices. However majority of API suppliers have low barging
power since they produce products which are simple to
manufacture or commoditized.
 Thus bargaining power of suppliers as a whole is Medium.

38. Porter’s five forces Analysis
Competitive Rivalry
 The growth opportunities for Pharma companies are expected to
grow manifold in the next few years with many drugs going off
patent in the US and emerging countries coming into focus.
 The competitive rivalry is high.

39. Porter’s five forces Analysis
Availability of substitutes
 The threat of substitution is higher in unbranded markets
where one generic can be substituted by another by the
pharmacists.
 The threat of substitute is high.

40. Porter’s five forces Analysis
Entry barriers
 Entry barriers in the emerging markets are high due to its branded
nature.
 However the companies require extensive legal knowledge
combined with ability to develop the product earlier than
competition, this is possible for only a few top companies.

41. Competitor Analysis

42. Company
Market share of Pharma
company in India
Cipla 5.6
Ranbaxy 4.76
Dr. Reddy's laboratory 4.47
Sun Pharma 4.03
Lupin 2.73
Cadila Healthcare 2.07
Glaxosmithkline Pharmaceuticals 1.79
Matrix Laboratories Ltd. 1.6
Ipca Laboratories Ltd. 1.36
Other 1.29

43. SWOT analysis

44. SWOT analysis
World wide leader in Anti TB drugs .
In the US and Japanese market it is the largest
generic player.
 Wide global footprint as it is present in over
70 countries

45. SWOT analysis
 High dependence on global formulation business
with 84% revenue coming from US market.
 It operates in low growth segments such CNS,
respiratory diseases

46. SWOT analysis
 Increased health awareness.
 Emerging technological trends in
drug delivery.
 Increasing prevalence of TB in
developing countries .

47. SWOT analysis
 Price regulation by government reduce the pricing
ability of company.
 With around 20000 unorganized and 300 large
organized player makes Indian Pharma industry
highly competitive .

48. 48
Lupin’s Business ModelLupin’s Business Model
Technology
•R&D
•Biotechnology
•Chemical & pharma
engineering
Alliances
•In-Licensing
•Long term partnership with
customers
Sustainable Earnings
Accelerated Growth
Fulfilling Stakeholder
Aspirations
Sustainable Earnings
Accelerated Growth
Fulfilling Stakeholder
Aspirations
Markets
•Advanced Markets –
Exponential Growth
•Geographical
Expansion – Emerging
Markets
• Enhanced Market
Penetration & New
Therapies
Generics Formulation API
Acquisitions
•Markets
•Therapies
•Technology

49. Financial Statement Analysis

50. Income Statement

51. PARTICULARS Mar.12 Mar.11
INCOME Rs. Cr Rs. Cr
Net Sales 7,067.46 5,780.78
Other Income 29.42 44.27
Stock Adjustments 316.91 90.71
Total Income 7,413.79 5,915.76
Expenditure
Raw Materials 3,112.65 2,485.36
Power & Fuel Cost 268.82 205.47
Employee Cost 969.53 767.70
Other Manufacturing Expenses 170.75 137.34
Selling and Admin Expenses 0.00 852.99
Miscellaneous Expenses 1,433.36 232.88
Preoperative Exp Capitalised 0.00 0.00
Total Expenses 5,955.11 4,681.74

52. PARTICULARS Mar.12 Mar.11
INCOME Rs. Cr Rs. Cr
PBDIT 1,458.68 1,234.02
(-)Interest 35.47 66.84
PBDT 1,423.21 1,167.18
(-)Depreciation 227.52 171.18
Profit Before Tax 1,195.69 996.00
Tax 308.74 116.93
Reported Net Profit 886.95 880.07
PBDIT 1,458.68 1,234.02
(-)Interest 35.47 66.84
PBDT 1,423.21 1,167.18
Book Value (Rs) 89.85 73.53

53. Balance Sheet Statement

54. PARTICULARS Mar.12
RS. Cr
Mar.11
Rs . Cr
Sources Of Funds
Equity Share Capital 89.33 89.24
Reserves 3,995.85 3,243.35
Net worth 4,012.89 3,281.08
Secured Loans 764.48 784.13
Unsecured Loans 716.39 378.28
Total Debt 1,480.87 1,162.41
Total Liabilities 5,566.05 4,495.00
Application Of Funds
Gross Block 3,985.52 2,964.34
Less: Accum. Depreciation 1,232.78 907.51
Net Block 2,752.74 2,056.83
Capital Work in Progress 440.64 531.22

55. PARTICULARS Mar.12 Mar.11
Investments 2.80 3.15
CURRENT ASSETS
Inventories 1,732.67 1,199.96
Sundry Debtors 1,731.81 1,255.82
Cash and Bank Balance 402.47 171.29
Total Current Assets 3,866.95 2,627.07
Loans and Advances 870.89 683.14
Fixed Deposits 0.00 248.83
Total CA, Loans & Advances 4,737.84 3,559.04
Current Liabilities 2,039.29 1,383.43
Provisions 328.68 271.81
Total CL & Provisions 2,367.97 1,655.24
Net Current Assets 2,369.87 1,903.80
Total Assets 5,566.05 4,495.00

56. RATIO ANALYSIS

57. 0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
2009-2010 2010-2011 2011-2012
TotalDebt EquityRatio
Total Debt Equity Ratio : Total Debt / Equity
Total Debt To Equity Ratio

58. 2.2
2.25
2.3
2.35
2.4
2.45
2.5
2009-2010 2010-2011 2011-2012
Current Ratio
Current Ratio : Current Assets /Current Liability
Current Ratio

59. 5
5.1
5.2
5.3
5.4
5.5
5.6
5.7
5.8
5.9
6
2009-2010 2010-2011 2011-2012
Inventory Turnover Ratio
Inventory Turnover Ratio : Cost of good sold/ Avg
inventory
Inventory Turnover Ratio

60. 0
0.5
1
1.5
2
2.5
3
2009-2010 2010-2011 2011-2012
Fixed Assets Turnover Ratio
Fixed Assets Turnover Ratio: Cost of good sold/
Avg fixed assets.
Fixed Assets Turnover Ratio

61. PEERS ANALYSIS

62. COMPANY
NAME
LAST PRICE NET SALES TOTAL ASSETS
SUN PHARMA 678.50 4015.56 8094.90
CIPLA 378.10 6977.50 7520.84
DR. REDDYS
LAB
1722.40 6686.30 8251.20
LUPIN 561.70 5364.37 4703.07
RANBAXY LABS 511.60 7686.59 6123.38

63. “Human Resources are something above each
measurement. The capacity of these resources can be
extended indefinitely when each person begin to
think.”

64.
To offer differential skill
sets to people for
enhancing competitive
edge.

65. Philosophy
“To convert employees into leaders in stipulations
of capability to lead self, situation and people.”

67. Recruitment Process

68. Lupin is using three different medium for selecting the right talent:
Management Trainee Programme
Young Leaders Programme
Advertisement

69. Learning and Development
 Lupin has instituted various programs aimed at developing
leadership qualities for first line supervisors, mid-sized team
leaders or large function heads.
 They have developed specific programs in order to groom this
talent pool on individual basis in 3 areas:
• Education
• Training & Development
• Job rotation / exposure

70. Programmer For New Joiners and First-line Supervisors
 Udbhav
 The Iceberg
 Leader Plus
 Buddy

71. For Managers:
 AMEX (Accelerating Managerial Excellence)
 Manufacturing Business Leadership Programme
 Executive Coaching For Senior Management

72. Performance Appraisal

73.  Employee appraisals are a balancing act between the
expectations of employees and the management's
perception of the employee's contribution to business
goals.
 The Company use Management By Objective Method for
Performance Appraisal.
 It is a developmental aspect as it involves employee
training for right fit.

74. Need of HR Specialized employees
Issue:
Higher Education Aspirations.
Solution:
Introduction of the PhD Program at the Lupin Research Park.

75. Whistle Blowing Policy
Whistleblowing encourages and enables employees to raise
serious concerns within the Council rather than overlooking a
problem or 'blowing the whistle' outside.
Transparency helps Companies to redefine processes and
make improvements.

76. Corporate Social Responsibility

77. Lupin Human Welfare & Research
Foundation

80. Milestones of LHWRF
 Won the FICCI Ladies Organization Award for Women
Welfare.
 Third Dalmia Environment Award for best water
management practices.
 Award for outstanding achievement in rural development.