This document provides an overview of Cipla Limited, an Indian pharmaceutical company. It discusses the company's history, vision, products, competitors, global presence, financial performance, SWOT analysis, and industry factors like PESTLE and Porter's Five Forces. Key points include that Cipla was founded in 1935 and is now a leading player in anti-infective and anti-asthmatic drugs. It has a presence in over 170 countries and 44 manufacturing facilities in India. A SWOT analysis identifies strengths like its product range and social initiatives, and weaknesses like a lack of presence in developed countries. PESTLE and Porter's Five Forces analyses examine political, economic, social and technological factors impacting the industry.

1. LOVELY PROFESSIONAL UNIVERSITY
School Of Pharmaceutical Science
Name- Rishabh Mishra
Reg no: 12011221
Group- 02
Section- Y2031

2. CONTENTS
🠶 THE COMPANY
🠶 PESTLE ANALYSIS
🠶 PORTER 5 FORCES
🠶 SWOT ANALYSIS

3. THE COMPANY
• Founded by Khwaja Abdul
Hamied as 'The Chemical,
Industrial & Pharmaceutical
Laboratories'
1935
• Make India self-
reliant in
healthcare
VISION
• Now a leading player
in anti-infective & anti-
asthmatic formulations
Respiratory, cardiovascular disease,
arthritis, diabetes, weight control,
depression medicines
COMPETITORS
• Sun Pharma
• Dr Reddy lab
• Lupin
• Aurobindo Pharma
• Piramal
• Glenmark
• Pfizer
• Merck
• GSK

4. Currently
Business in 170+
countries including the
United States, Canada,
Europe, Africa,
Australia, Latin America
and Middle East.
44 manufacturing
facilities in India
1400 suppliers glo
2b
0a
0ll
0y
+products in 65
therapeutic categories
and 60+ dosage forms,
covering
communicable, non-
communicable,
common and
emerging diseases, and
rare diseases.
ACHIEVEMENTS
• 1960s: PioneersAPI(Active Pharmaceutical Ingredients) manufacturing in India, laying the
foundation for bulk drug industry
• 1968: Manufactured ampicillin for the first time in the country
• 1970: Spearheads the New Patent Law, enabling Indian pharmaceutical companies to manufacture
patented products
• 2001: Pioneers access to HIV treatment by making anti-retrovirals (ARVs) available at less than a
dollar a day
• 2005: Produces an anti-flu drug in less than 3 months during the Bird Flu epidemic
Revenue Break up
4%6%
11%
40%
20%
19%
India
North America
SAGA
Emerging Markets
Europe
Others

5. PESTLE
SOCIAL
Wider population in getting
access to essential services
in India
Negative migration attitude
towards India can impact
Cipla’s ability to bring
international leaders &
managers
With increasing
liberalization the attitude
towards health and safety
are getting lax which Cipla
needs to be careful of
POLITICAL
Stable Govt and
major policies
Regulatory
Practices
in India
Other
stakeholders -
such as NGO,
protest &
pressure groups,
activist
movements play
critical role.
Taxation policies
–Cipla has
benefitted from
lower taxation
policies
throughout for 2
decades
Changes can
affect company
Political stability
in other
geographies
ECONOMIC
Indian pharma
market
expected to
grow to USD
55 billion by
2020
Combination
of value and
volume
provides
interesting
opportunities
Increasing
investment in
public
services
Pricing
controls & an
economic
slowdown can
affect

6. TECHNOLOGY
Intellectual property
rights and patents
protection
R&D cost is high in India
compared to western
nations
Technology has
shortened the product life
cycle and has enabled
suppliers to quickly
develop new products
Technology transfer and
licensing issues
Lowering cost of
production
LEGAL
Companies are finding
it increasingly difficult
to engage physicians
and patients in an
information intensive
day and age
India’s drug price
control regime is
erratic in its
implementation.
Government decides
the price and
companies have to
implement it with
immediate effect and
grievances resolution
takes time
ENVIRONMENTAL
Recycling is fast
emerging as a norm
rather than a good
thing to do in India
economy
Regular scrutiny by
environmental
agencies in production
and product design

7. PORTER 5 FORCES
BUYERS
Moderate
Distribution
Channel
Govt control
prices
Fragmentation
of buyer in the
market - online,
consolidated for
hospitals
Competencies
& specialty -
respiratory
Loyal customer
as prescription
is used, high
switching cost
Low price
sensitivity-
Differentiated
pdt
SUPPLIER
High
Raw material
marketing,
labor can
increase your
cost
Switching cost
for companies
is high –
specifications
Suppliers can
form cartel
Supplier can
sell to other
industry
Chemical
industry –
forward
integration
Backward
integration
Depends on
company size
and revenue
percentage
SUBSTITUTES
High
Biosimilars Generic and
Ayurvedic
Substitutes leads
to price erosion -
competition
Increases cost
Less impact as
people buy with
prescription –
online can
disrupt

8. Easy entry for global players, but Indian companies have upper hand
Drugs worth business of US$80 to 250 billion expected to go off-patent over
next 10 years
Difficult to create brand among doctors, hospitals
Knowledge intensive
Threat of new entrants is moderate
NEW ENTRANTS
Medicines spending in India is projected to grow 9-12 percent over the next five years
R&D spending by other major players can increase
100% FDI allowed, low production cost
Generic medicine competition from domestic & MNC’s,
rising middle class households and improving medical infrastructure
Very High
COMPETITIVE RIVALRY

9. SWOT ANALYSIS
STRENGTHS
Strong R&D: 7.1% in R&D for development &
improvements
Products Range: APIs and formulations for humans
and animal healthcare products. Over 2000 products in
65 categories with constant expansion.
A foremost player in anti-infective and anti-asthmatic
formulations
Social initiatives: Cipla made breakthrough in
reducing the prices of cancer drugs, providing quality
at affordable prices
WEAKNESS
Lack of presence in developed
countries: Presence in over 170
countries but India is major revenue
generator
Governance Issue : Company
appointed new CEO in 2016 who
changed decisions of the former,
such future activities can affect
performance ahead as in past

10. OPPORTUNITIES
Strategic Expansion: Cipla is continuously
looking for investments and acquisitions in India as
well as in the abroad
Treatment of HIV: Cipla offers a wide range of
ARV products for the treatment of HIV/AIDS in
both children and adults. Growing number of
patients can provide opportunities
Growth in Emerging markets: Cipla is focusing
on growing in emerging markets, where medical
infrastructure is improving
THREATS
Drug Pricing control methods in India: India has
proposed a new pricing policy under Drug price control
which can have a negative impact on the industry.
Competition in generics industry: There is intense
competition in the Indian generics industry whic affects
growth potential
Regulatory issues : Indian companies need USFDA
regulatory approvals for facilities & observations given
affect company sales
Fluctuation in Exchange rates: International business is
highly affected

11. RATIOS
Particulars
18-Mar 17-Mar 16-Mar 15-Mar 14-Mar
Basic EPS (Rs.) 18.25 12.13 18.21 14.71 17.29
Equity (%)
(X)
(%)
Net Profit Margin (%) 12.89 9.05 12.06 11.65 14.8
Return on Networth / 10.4 7.61 12.2 10.65 13.76
Total Debt/Equity (X) 0.01 0.03 0.09 0.12 0.09
Asset Turnover Ratio (%) 66.62 68.99 79.51 66.69 72.58
Current Ratio (X) 2.91 2.48 2.19 1.83 2.11
Inventory Turnover Ratio 3.75 4.06 4.15 3.08 3.74
Earnings Retention Ratio 89.05 83.5 87.63 86.41 88.44
Price/BV (X) 3.1 3.72 3.43 5.15 3.06

12. Study met primary
endpoint of improving
overall survival in
patients with metastatic
colorectal cancer
Demonstrated
improvement in overall
survival in patients with
bone metastases in
prostate cancer
Launched in US & EU
ACS trial showed
significant reduction in
mortality
Filed in EU and Japan
for wet AMD
At The Verge of a Business-Transforming
New Product Cycle in Pharma
Xarelto Eylea
(VEGF Trap-Eye)
Alpharadin Regorafenib
4 potential blockbuster compounds to be launched near-term
>€2bn* ≥€1bn* ≥€1bn* ≥€1bn*

13. 36%
64%
Developed markets Emerging markets1
+5%
+11%
Strong Growth Momentum in the
Emerging Markets

14. HealthCare –
Major Progress Achieved
Emerging Markets Growth
Consumer Health
Efficiency Improvement
 Savings program on track
 T
argeting approx. €430m p.a.
 Pharma margin improved
Pipeline Progress
 Key late-stage pipeline assets progressed
as planned or better
 Strong early- and mid-stage pipeline
 Double-digit sales growth in 9M2011
 Expansion of marketing and sales
organization
 Strong growth of key brands
 Consumer Care (OTC pharmaceuticals)
gained share during 9M2011

15. Four Potential Blockbuster Products
Expected to be Launched Near-term
Xarelto
SPAF, other
anticoagulation > €2bn
VEGF Trap-Eye
wet AMD, DME,
CRVO, myopic CNV ≥ €1bn
Alpharadin
Bone metastases in
cancers ≥ €1bn
Regorafenib
mCRC, GIST,
other cancers ≥ €1bn
Project Indications Peak sales potential*

16. Consumer Care – Strong Brands
Brand 9M2011 Sales y-o-y Growth
324*
209
175
168
127
101
+10%
+8%
+8%
+6%
+4%
+3%

17. Building a World-Class Innovation
Company
 Delivered growth and performance, 9M2011: adj. sales up 7%, adj.
EBITDA up 12%, reported EPS +43%, Core EPS +19%
 Group FY 2011 financial outlook1) projects 5-7% organic sales growth,
adj. EBITDA > €7.5bn and core EPS growth of ~15%
 Further strategic progress:
 Innovation pipeline: 4 potential blockbuster compounds in pharma
pipeline
 Productivity: Group-wide restructuring plans with €320 million
annualized savings already implemented
 Emerging markets: 11% organic growth
2011 A Year of Significant Progress

18. MaterialScience –
Sales Driven By Higher Selling Prices
Earnings
Q3’11 Sales
MaterialScience €2,768m; +4% (+7%)
Adj.
EBITDA
Adj.
EBIT
259
196 -24%
Q3‘10 Q3‘11 Q3‘10 Q3‘11
749
475
173
408
348 -15%
Polyurethanes
+4% (+7%)
1,371
Polycarbonates
+3% (+7%)
CAS*
0% (+3%)
Price
7.1%
Volume
0.3%
Fx
-3.7%
Portfolio
0.2%
IO**
+21% (+24%)

19. Thank you