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Company analysis Report

of
Cipla pharmaceuticals limited
LOGO
COMPANY PROFILE

 Khwaja Abdul Hamied, the founder of Cipla, was born on October 31,
1898.
 In 1935, he set up The Chemical, Industrial & Pharmaceutical
Laboratories, which came to be popularly known as Cipla.
 On August 17, 1935, Cipla was registered as a public limited company
with an authorised capital of Rs 6 lakhs.
 Cipla was officially opened on September 22, 1937 when the first
products were ready for the market.
 July 4, 1939 was a red-letter day for Cipla, when the Father of the
Nation, Mahatma Gandhi, honoured the factory with a visit.
BOARD OF DIRECTORS
• Founder
• Dr. K.A. Hamied
(1898-1972)
•   Chairman & Managing Director
• Dr. Y.K. Hamied
•   Joint Managing Directors
• Mr. M.K. Hamied
Mr. Amar Lulla
•   Non-Executive Directors
• Mr. V.C. Kotwal
Dr. H.R. Manchanda
Mr. S.A.A. Pinto
Mr. M.R. Raghavan
Mr. Ramesh Shroff
Mr. Pankaj Patel
PRODUCTS
•   Back     Alzheimer`s Dementia
• Amoebicides/Antiprotozoals
• Anabolic Steroids
• Analgesics/Antipyretics
• Anesthetic Agent
• Antacids/Antiflatulents
• Anthelmintics
• Anti-Arthritis
• Anti-Inflammatory Drugs
• Anti-TB Drugs
• Antiacne/Antipsoriatic Drugs
• Antiallergic Drugs
• Antibiotics/Antibacterials
• Anticancer Drugs
Anticoagulant and Antithrombotic Agents
Antidepressants
Antidiabetic
Antidiarrhoeals
Antiemetics
Antiepileptic
Antifungal
Antimalarials
Antimigraine Drugs
Antiobesity Drugs
Antiosteoporotic Agents
Antiparkinson's
Antipsychotic
Antipsychotic
Antiretroviral
Antispasmodics
Antiulcerants
Antivirals
Anxiolytics/Sedatives
Apetite Stimulants
Benign Prostatic Hyperplasia Drugs
Cardiovascular Agents
Cerebral Vasodialators
Cholestrol Reducers / Hypolipedemic Agents
Cough and Cold
Diuretics
Diuretics
Erectile Dysfunction Therapy
Expectorants/Cold Preparations/Mucolytes
Eye and Ear Preparations
Gout Preparations
Haematinic Preparation
Haemorrhoelogic Agents
Haemostatics
Hormone - Related Drugs
Hormone Replacement Therapy
Immunosuppressants
Iron Chelators
Irritable Bowel Syndrome
Laxatives
Motility Regulators
COMPETITORS
RANBAXY
NICHOLAS PIRAMAL
SUN PHARMA
NOVARTIS
PFIZER
REDDY LABS
AWARDS AND ACHIEVEMENTS

 Cipla’s Director Received P.adma Bushan Award In 2005 i.e


Dr.Y.K.Hamied.

 Cipla launches medicinal aerosols for asthma in 1976.

 Wins Chemexcil Award for Excellence for exports in 1980.

 Cipla wins National Award for Successful Commercialisation of Publicly


Funded R&D in 1988. 

 Set-up state-of-the-art facility for manufacture of formulations at Sikkim


in 2007.
Company Strengths and
Weaknesses
Analyzing Strengths and Weaknesses

• Areas of Strength:
– Customer loyalty
– Dominant market share position
– Effectiveness of advertising
– Quality sales force
– Make and sell products of highest quality
– High integrity as a company
Analyzing Strengths and Weaknesses

• Areas of Strength:
– Excellence in product design and/or
performance
– Low-cost, high operating skill
– Leadership in product innovation
– Efficiency in customer service
– Personal relationships with customers
– Effectiveness in sales promotion
– Merchandising efficiency
Analyzing Strengths and Weaknesses
Areas of weaknesses:
• Inadequate definition of customer for product/market
development
• Ambiguous service policies
• Too many levels of reporting in the organizational setup
• Overlapping channels
• Lack of top management involvement in new product
development
• Lack of quantitative goals
Ratio Analysis
Liquidity Ratio’s.
1)CURRENT RATIO:

CURRENT ASSETS
CURRENT LIABILITIES
2005 2006 2007 2008

2.75 2.97 4.07 3.16

Interpretation: The liquidity position of the company is satisfactory because


it has reached the ideal ratio 2:1.Compared to 2007 there is a decrease in
year 2008.The company should decrease liabilties.
 Quick Ratio:

Current assets – inventories.


Current liabilities
2005 2006 2007 2008

1.25 1.47 2.23 1.81

Interpretation: The liquidity position of the company is satisfactory since it


reached the ideal ratio 1:1 because the company the company can meet it’s daily
requirements. The year 2007 it was2.23 but there is a decrease in 2008 to 1.81 because
there is an increase in inventory stock.
LEVERAGE RATIO’S.

1)Debt equity Ratio

2)Proprietary Ratio

3)Fixed Asset Ratio

4)Interest Coverage RatiO


Debt Equity Ratio:

Long term debts/Equity share holder funds.

2005 2006 2007 2008


0.13 0.24 0.04 0.15

Interpretation: In 2007 debt equity ratio is 0.04 and there is an increase in


2008 because of increase of debts.
Proprietary Ratio:

Net Worth /Total Assets

2005 2006 2007 2008


0.95 0.96 0.97 0.97

Interpretation: We can observe a slight increase in 2005-2007 i.e 0.95 to


0.97.So,the company’s position is good and they should continue the
same.
Fixed Assets Ratio:

Fixed Assets
Net worth

2005 2006 2007 2008


2.37 2.32 2.42 2.42

Interpretation: It is constant from 2007-2008 i.e., 0.97 in both the years.


Interest coverage Ratio:

PBIT/Fixed Interest Charges

2005 2006 2007 2008


72.46 66.71 167.28 76.01

Interpretation: We see a drastic decrease from 2007-2008, because there is a


decrease in profits & debts also increased. That means fixed interest charges
increases.
Turn Over Ratios
1)inventory holding periods

2)working capital turnover

3)inventory turnover ratio

4)fixed assets turnover ratio


Inventory Holding Period:

No.Of Days In Years/S.T.R

2005 2006 2007 2008


194 Days 195 Days 184 Days 166 Days

Interpretation: The company’s inventory holding period in 2007 was 189 days
which was decreased to 166 days in year 2008.The company should
continue to decrease its inventory holding period in future also.
Working Capital TurnOver Ratio

Net Sales/Working Capital

2005 2006 2007 2008


2.24 2.09 1.82 1.61

Interpretation: The above mentioned ratio has decreased from 2005-


2008,because of decrease in sales and working capital is increased.
Inventory TurnOver Ratio:

CGS/Avg. Inventory

2005 2006 2007 2008

1.86 1.85 1.96 2.17

Interpretation: We can see a increase from 1.96-2.17 in yrs 2007-2008.The


company should control its C.G.S expenses.
Fixed Assets TurnOver Ratio:

TurnOver/ Fixed Assets

2005 2006 2007 2008


2.95 2.74 2.48 2.41

Interpretation: There is a gradual decrease from 2005 to 2008 because


the sales are low &fixed assets not used optimally.
Profitability Ratio’s:
1)Gross Profit Ratio

2)Operating Ratio
gross profit ratio:

gross profit X 100


Sales

2005 2006 2007 2008


43.84% 45.77% 44.77% 43.12%

Interpretation: The gross profit ratio has slightly decreased in 2008 when
compared to previous year because of increase in cost of goods sold
expenses.
Operating Ratio:

CGS + Operating Exp X 100


Net Sales
2005 2006 2007 2008
80.65% 79.80% 79.99% 83.98%

Interpretation: The company’s operating ratio has increased from 79% to


84% because the company has controlled its operating expenses such as
salaries, ads etc.,
I Owe My Sincere Thanks To
 Nagraj (HOD)

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