Sun Pharmaceutical Industries was founded in 1983 in Kolkata, India by Dilip Shanghvi. It has since grown to become one of the largest pharmaceutical companies in India through strategic acquisitions and a focus on generic drugs. Some key milestones include acquiring Caraco Pharmaceutical Labs in 1997, acquiring a plant in Ohio in 2005, and merging with Ranbaxy Laboratories in 2014. Sun Pharma has a presence across multiple therapeutic areas and geographic regions. It has a market share of 3.2% in India and follows strict regulatory guidelines. With the aging global population and rising incomes, Sun Pharma is well positioned for continued growth in the coming years through synergies from acquisitions and expanding in emerging markets

1. Fundamental analysis
of
Sun Pharmaceutical Industries

2. History and Background
Founding members & When was it founded?
● Founder: Dilip Shanghvi
● Founded: 1983
Vision and mission statement
Mission
● The mission of Sun India Pharmacy Ltd. is good health and happiness for all. We
believe in utilizing modern science to bring out the essence of nature and provide
effective and high quality medicines at affordable prices.
Vision
● With the prime objective of good health to all, Sun India Pharmacy aims to be
amongst the top ten Generic Pharma and OTC players in India in the span of next
ten years. We intend to achieve this with the help of strategic growth and stringent
quality measures.

3. Milestones Timeline
● 1983 – Sun Pharma begins operations in Kolkata with 5 psychiatry – based
products, first with 2 people and then with a 10 – employee team. Year 1 turnover –
Rs. 1 million.
● 1988 – With the launch of the brands Monotrate and Angizem, the first few
cardiology products are launched.
● 1993 – SPARC, the first research center, is inaugurated by His Excellency Shri K.
R. Narayanan, the Vice President of India. An office is begun in Moscow. Products
are now registered across 10 markets.
● 1996 – Product registrations are now in place across 24 countries.
● 1997 – It begin the first of its international acquisitions. As part of a technology–
for–equity agreement, a stake is acquired in a generic dosage form manufacturer; the
Detroit–based Caraco Pharm Labs.
● 1999 – Rank moves within the top 10 in the domestic market.
● 2001 – A new formulation plant is built in Dadra.
● 2002 – Forbes Global ranks Sun Pharma in the list of best small 200 companies for
2002 (turnover less than $500 million).
● 2003 – Forbes Global ranks Sun Pharma in the list of the best small 200 companies
for 2003 (turnover less than $500million).

4. ● 2004 – Sun Pharma acquires common stock and options from 2 large shareholders
of Caraco, increasing stake to over 60% from 44% at a total outlay of about $42
million. By 2007, this stake has reached 75% on a diluted basis.
● 2005 – Sun Pharma buys a plant in Bryan, Ohio, US and the business of ICN,
Hungary from Valeant Pharma
● 2006 – Announced the demerger of innovative business with pipelines, people,
equipment and funding, into a new company.
● 2007 –Completed the demerger of the innovative business, with requisite legal and
regulatory approvals. SPARC ltd, the new company, is listed on the stock exchanges
in India, the first pure research company to be so listed
● 2008 – In November 2008, it along with its subsidiaries, acquired 100% ownership
of Chattem Chemicals, Inc.,a narcotic raw material importer and manufacturer of
controlled substances with a approved facility in Tennessee.
● 2011 – Dilip Shanghvi, CMD, received the E&Y Entrepreneur of the Year Award
for 2010.
● 2014 – April 6, 2014 Sun Pharmaceutical Industries and Ranbaxy Laboratories
announced that they have entered into definitive agreements pursuant to which Sun
Pharma will acquire 100% of Ranbaxy in an all–stock transaction

5. Promoters
●
Management and Personnel
No. Name of the Shareholder Number As a % of grand
total
1 Dilip Shantilal Shanghvi 231,140,480 11.16
2 Viditi Investment Pvt Ltd 201,385,320 9.72
3 Tejaskiran Pharmachem Industries Pvt
Ltd
195,343,760 9.43
4 Family Investment Pvt Ltd 182,927,440 8.83
5 Quality Investment Pvt Ltd 182,868,640 8.83
6 Virtuous Finance Pvt Ltd 97,104,040 4.69
7 Virtuous Share Investments Pvt Ltd 83,976,000 4.05
8 Sholapur Organics Pvt Ltd 16,035,080 0.77
9 Jayant Shantilal Sanghvi 7,416,840 0.36
10 Vibha Dilip Shanghvi 5,784,000 0.28
11 Kumud Shantilal Shanghvi 3,280,000 0.16
12 Aalok Dilip Shanghvi 2,885,000 0.14
13 Vidhi Dilip Shanghvi 2,830,000 0.14

6. Promoters
14 Jeevanrekha Investrade Pvt Ltd 1,462,720 0.07
15 Kumud S Shanghvi Trustee of Shanghvi
Family & Friends Benefit Trust
1,280,200 0.06
16 Package Investrade Pvt Ltd 897,440 0.04
17 Varsha Kiran Doshi 322,000 0.02
18 Shanghvi Finance Pvt Ltd 283,360 0.01
19 Dipti Nirmal Modi 227,880 0.01
20 Asawari Investment & Finance Pvt Ltd 49,600 0
21 Flamboyawer Finance Pvt Ltd 20,920 0
22 Sanghvi Properties Pvt Ltd 15,520 0
23 Gujarat Sun Pharmaceutical Industries Pvt Ltd 14,400 0
24 Nirmit Exports Pvt Ltd 7,040 0
25 Raksha Sudhir Valia 34,772,000 1.68
26 Sudhir Vrundavandas Valia 15,384,000 0.74
27 Aditya Medisales Ltd 40,203,960 1.94
28 Unimed Investments Ltd 10,428,760 0.5
Total 1,318,346,400 63.65

7. Management and Personnel
Name Designation Name Designation
Israel Makov Chairman Dilip S Shanghvi Managing Director
Sudhir V Valia Whole Time Director Sailesh T Desai Whole Time Director
S Mohanchand
Dadha
Director Hasmukh S Shah Director
Keki M Mistry Director Ashwin Dani Director
Rekha Sethi Director

8. Company Analysis
Current product and service mix of Sun Pharma
Provide wide range of Ayurvedic and Allopathic product. Provide high quality
medicines at the most affordable prices.
Product
● AYURVEDIC PRODUCTS
● TABLETS JAR
● SOFTGEL CAPSULES
● CAPSULES
● TABLETS
● SYRUPS

9. Company Analysis
USP
● Bringing Healthcare at affordable prices for India masses
Advertising and Marketing Strategy
● For a company that started in 1983 with just five people and five products, it's no mean
achievement that Sun Pharma today commands the largest market capitalization of Rs
21,271 crore (Rs 212.71 billion) in the pharma universe.
● Sun Pharma focuses on niche segments such as psychiatry and lifestyle drugs, the
company has raced ahead, with its business growing four-fold between 1999-2000 and
now, with revenues of Rs 2,237 crore (Rs 22.37 billion).
● From the very beginning sun pharma has focused on the high-margin chronic care
therapy products that have made the company very profitable.
● Building a profitable business or creating wealth for his shareholders.
● Today, with a domestic market share of 3.2 per cent, it is ranked number six.

10. Geographical Reach
AFRICA ASIA PACIFIC EUROPE NORTH AMERICA
Morocco Australia France Canada
Nigeria Malaysia Germany USA
South Africa Myanmar Ireland SOUTH AMERICA
Sri Lanka Italy Brazil
Lithuania CIS
The Netherlands Russia
Poland Ukraine
Romania
Spain
United Kingdom
Denmark
Finland
Norway
Sweden

11. Geographical Reach

12. Industry Analysis
Industry wide growth parameters
● Increase in life expectancy and ageing population: Life expectancy is expected to
reach 73.7 years by 2017 from an estimated 72.6 years in 2012, bringing more than
10% of the total global population to over the age of 65 years.
● Rising income of households: Rising income will make growth of the
pharmaceuticals industry grow.
● Growing incidence of chronic diseases: Healthcare demand for diseases will
contribute to the industry’s growth.
● Improved healthcare access reforms: With more than one billion people lacking
access to a health care system across reforms, including increases in government
funding and broader insurance coverage.

13. Industry Analysis
Market Share
● Total Sales Turnover of
PHARMACEUTICALS
industry: 126098.11 in Cr
● Sales turnover: 8017.2 in Cr
● Net total percentage
of turnover: 6.3579
TOTAL SALES TURNOVER OF PHARMACUTICAL INDUSTRY
SALES TURNOVER OF SUN PHARMA
0
20000
40000
60000
80000
100000
120000
140000

14. PEER COMPARISION
Name Last Price Market Cap.
(Rs. cr.)
Sales
Turnover
Net Profit Total
Assets
Sun Pharma 843.9 203078.07 8017.2 -1472.76 9816.89
Lupin 1731.7 77897.91 9752.47 2397.35 7118.44
Dr Reddys Labs 3347.2 57067.77 10010.94 1679.35 11993.5
Cipla 612.9 49213.45 10131.78 1181.09 10968.98
Aurobindo
Pharm
1335.3 38988.39 8095.1 1516.34 6827.25
Cadila Health 1793.7 36725.74 5284.43 1271.12 5041.1

15. Regulation
CDSCO Central Drugs Standard Control Organization (CDSCO), Ministry of Health
& Family Welfare, Government of India provides general information about
drug regulatory requirements in India.
NPPA The clinical trials legislative requirements are guided by specifications
of Schedule Yof The D&C Act.
D & C Act,
1940
The clinical trials legislative requirements are guided by specifications
of Schedule Yof The D&C Act.
Schedule M The clinical trials legislative requirements are guided by specifications
of Schedule Yof The D&C Act.
Schedule T The clinical trials legislative requirements are guided by specifications
of Schedule Yof The D&C Act.
Schedule Y The clinical trials legislative requirements are guided by specifications
of Schedule Yof The D&C Act.

16. Regulation
GCP guidelines The Ministry of Health, along with Drugs Controller General of
India (DCGI) and Indian Council for Medical Research
(ICMR)has come out with draft guidelines for research in
human subjects. These GCP guidelines are essentially based
on Declaration of Helsinki, WHO guidelines and ICH
requirements for good clinical practice.
The Pharmacy
Act,1948
The Pharmacy Act, 1948 is meant to regulate the profession of
Pharmacy in India.
The Drugs and
Magic Remedies
(Objectionable Ad
vertisement) Act,
1954
The Drugs and Magic Remedies (Objectionable Advertisement) Act,
1954 provides to control the advertisements regarding drugs; it
prohibits the advertising of remedies alleged to possess magic
qualities.
The Narcotic
Drugs and
Psychotropic
Substances Act,
1985
The Narcotic Drugs and Psychotropic Substances Act, 1985 is an
act concerned with control and regulation of operations relating to
Narcotic Drugs and Psychotropic Substances.

17. Future Prospectus & Recommendation
Growth Prospectus
● The Rs 1,400-crore (Rs 14 billion) Sun Pharmaceuticals has made substantial
investments in R&D over the past five to six years, the corporate decision to convert
this intellectual asset into a future growth-driver by demerging the innovative
research arm come only now.
● Sun Pharmaceutical Industries, India’s largest drugmaker, announced the closure of
its merger with Ranbaxy Laboratories and said the integration would deliver
synergies worth $250 million (about Rs 1,500 crore) in three years.
● Sun’s superior marketing and distribution franchise in the US should help it scale up
revenues from Ranbaxy’s generic product basket.
● Sun can leverage its expertise in the derma market (through its subsidiary Taro
Pharma) to boost revenues from Ranbaxy’s acne drug Absorica
● Sun’s management expects the Ranbaxy merger to add $250 million to its operating
profit over one-two years.
● The Ranbaxy merger will strengthen Sun’s position in emerging markets in the
Asia-Pacific, Latin America, Africa and West Asia.

18. 4 quarter performance snapshot
Period Ending: Mar'15 Dec'14 Sept'14 Jun'14
Total Revenue 61570.5 69294.6 143469.3 39355.8
Gross Profit 45596.1 52167.6 109179 31707.4
Operating
Income
3304.6 19361.3 42644.7 16045.9
Net Income 8880.5 3953.3 32572.2 13905.1
Mar'15 Dec'14 Sept'14 Jun'14
0
20000
40000
60000
80000
100000
120000
140000
160000
Total Revenue
Gross Profit
Operating Income
Net Income

19. Recommendations
● MARKET CAP of Sun Pharma (RS CR)204,545.98
● SECTOR: PHARMACEUTICALS
● Return on Investment TTM 21.05% (TTM = Trailing Twelve Months)
● Last 3 month high on NSE:1,200.80
● Last 3 month low on NSE: 807.25
● Today (18 jun) open on NSE : 847.00
● In next slide past three month data shows the downward trend `from my point of it's
good opportunity for investor to invest stock because of high earning visibility in
pharmaceutical sector.

20. Recommendations
Past three Month Data
0
2 0 0
4 0 0
6 0 0
8 0 0
1 0 0 0
1 2 0 0
1 4 0 0
3 / 1 8 / 2 0 1 5 4 / 1 8 / 2 0 1 5 5 / 1 8 / 2 0 1 5
H i g h
L o w

21. Reasons
● Pharma stocks have moved up sharply in the last one year.
● Pharma companies were riding on the back of rupee depreciation and a recovery in
the US market, while investors have found safety in the pharmaceuticals sector due
to its reputation as a 'safe haven' against high inflation and interest rates.

22. Thank you..