Professional Documents
Culture Documents
Main Bankers Client has been availing following limits from Sonari Bank Limited
Facilities Amounts
1 – L/C Sight 15.000 Million
w/w. FATR (90 days) 7.500 Million
2 – L/C (D/A) 50.000 Million
w/w. Acceptance Delivery 50.000 Million
3 – Running Finance 15.000 Million
4 – Letter of Guarantee 16.125 Million
Other Conditions The customer will ensure compliance with the Prudential Regulations of the State
Bank of Pakistan (SBP) and all other applicable laws and regulations of SBP and
any other regulatory authorities.
Facilities shall conform to Shariah principles as approved by the Shariah
Advisor/supervisory board of BIPL.
Legal documentation acceptable to the Bank.
The above offer will be subject to relevant approvals from the Management Credit
Committee (MCC) /Board of Directors of BIPL.
Any clause of additional security may be incorporated by the MCC, if deemed
necessary
BUSINESS BRIEF
Shazeb Pharmaceutical Industries Limited deals in Manufacturing, Import and trading of all kinds of drips, life saving
drugs, anhydrous, hydrous glucose, O.R.S, infusion sets vitamins, syrups etc.
The constitution of the firm is Limited Company..
INTRODUCTION
Incorporated in July 1991 and established in 1992 with authorized capital of PKR 110.000 Million is one of the leading
producers of High Quality IV Solutions in Pakistan. The purpose of industry is to manufacture the life saving drugs. The
project is located at 18 km from Hasan Abdal on Main Hazara Trunck Road in District Haripur. The plant is based in a
luch green, polluted free environment and covers an area of 83,000 Sq. Feet.
MANAGEMENT PROFILE
Shazeb Pharmaceutical Industries Limited have well reputed and qualified management. Mr. Zulqar Hussain is the
Chairman of the company. He has a vast experience of business and involved in other business like paper and oil from
last so many years.
TECHNICAL EXPERTISE
Company has the most reliable world famous technical expertise, provided by the the highly prestigious plant
manufactures, M/S. Getinge AB of Sweden and M/S. Rommelag of Switzerland.
The company with leading edge over other is producing a wide range of premium quality intravenous (IV) Solutions.
These specific IV Solutions plays a very significant role in controlling dehydration, electrolyte imbalance and
nutritional deficiency, helping millions of patients to recover every year.
PROCESS TECHNIQUES
The production/manufacturing process of finest quality IV Solutions demands for precision and accuracy involving
latest equipment. Process techniques comprises listed areas:
Water Treatment
Water treatment is the most important process, vital for excellent quality IV Solutions. Silhorko, a world leader in water
treatment has installed the water treatment plant of Shazeb Pharmaceuticals. The plant provides deodorized and de-
chlorinated water through automatic activated carbon filter.
Distillation
Pyrogen-free water for injection (WFI) is produced in a stainless steel computerized distillation still from kemiterm of
Denmark. This entire system of sterilization meets the highest international standards of excellence.
Solution Preparation
The HEPA filters facility envisages high quality of solution preparation. During this process, stainless steel 316 L
mixing vessels, equipped with Hi-Tech NA-mixers ensure absolutely clean mixing.
QUALITY CONTROL
“Quality At Every Step” is the company's Motto. The high quality Shazeb Pharmaceuticals reflect the Company's
commitment at all costs. Stringent quality control at all stages, backed by the confidence of Swedish technologies from
M/S. Getinge AB is the mainstay of the Company's success.
The quality control Lab., equipped with the latest state of the art computers provides the basis for customer trust,
confirming to Goods Manufacturing Practices world wide.
MARKETING
Company has a strong distribution network managed by the highly reputed company, Gulraiz Mediaids Pvt. Limited. To
meet the growing demands of IV Solutions country wide even in remote areas and on divisional and district levels. This
network is led by Marketing Professionals with many years of experience.
PRODUCT RANGE
Company produces / manufactures a wide range if supreme quality sterile, Pyrogen – Free IV Solutions. Some of these
products are:
FUTURE PLANS
Company is negotiating with prestigious, leading European companies for manufacturing of Infusion Sets and uplift of
our existing product range.
MARKET READ
Client has been availing following limits from Sonari Bank Limited
Facilities Amounts
1 – L/C Sight 15.000 Million
w/w. FATR (90 days) 7.500 Million
2 – L/C (D/A) 50.000 Million
w/w. Acceptance Delivery 50.000 Million
3 – Running Finance 15.000 Million
4 – Letter of Guarantee 16.125 Million
Subject to satisfactory account performance during next twelve months, we have plans to grow with the client on
selective basis without jeopardizing over the bank’s risk and interest.
INDUSTRY AND MARKET OUTLOOK
Pakistan has a very vibrant and forward looking Pharma Industry. At the time of independence in 1947, there was
hardly any pharma industry in the country. Today Pakistan has about 400 pharmaceutical manufacturing units including
those operated by 25 multinationals present in the country. The Pakistan Pharmaceutical Industry meets around 70% of
the country's demand of Finished Medicine. The domestic pharma market, in term of share market is almost evenly
divided between the Nationals and the Multinationals.
The National pharma industry has shown a progressive growth over the years, particularly over the last one decade. The
industry has invested substantially to upgrade itself in the last few years and today the majority industry is following
Good Manufacturing Practices (GMP), in accordance with the domestic as well as international Guidance. Currently the
industry has the capacity to manufacture a variety of product ranging from simple pills to sophisticated Biotech,
Oncology and Value Added Generic compounds
Although Pakistan 's pharmaceutical and healthcare sectors are expanding and evolving rapidly, about half the
population has no access to modern medicines. Clearly this presents an opportunity, but much more work needs to be
done by the government and industry's stakeholders. The value of pharmaceuticals sold in 2007 exceeded US$1.4bn,
which equates to per capita consumption of less than US$ 10 per year and value of medicines sold is expected to exceed
US$2.3 B by 2012
Pakistan is a developing pharmaceutical market, with a large population and economic progress evident, but per capita
drug spending was rather low at around US$9.30 in 2007. Private spending accounts for 65% of total healthcare
expenditure sourced through out-of pocket payments, international aid and religious or charitable institutions.
Pharmaceutical spending accounts for less than 1% of the country's GDP, comparable to levels in some neighboring
countries but above that in some of the South Asian countries. The forecast period is likely to witness the marginal
strengthening of the generics sector, albeit more in terms of volumes than values. The share of generics is also likely to
increase further as major drugs come off-patent in the near term, to the likely benefit of the generics-dominated local
industry.
The Pakistan pharma industry is relatively young in the international markets with an export turnover of over US$ 100
Million as of 2007. Pakistan Pharma Industry boasts of quality producers and many units are approved by regulatory
authorities all over the world. Like domestic market the sales in international market have gone almost double during
last five years. The pharma industry is focusing to an Export Vision of USD 500 Million by 2013. In the meantime,
exports are also likely to be boosted by new regional and global opportunities.
The Pakistan Pharmaceutical Industry is a success story, providing high quality essential drugs at affordable prices to
Millions. Technologically, strong and self reliant National Pharmaceutical Industry is not only playing a key role in
promoting and sustaining development in the vital field of medicine within the country, but is also well set to take on
the international markets.
The macroenvironment for the Pakistani pharmaceutical market is positive despite economic concerns. Economically,
the Economist Intelligence Unit (EIU) projects that Pakistan will be the fourth smallest economy in the Asia Pacific
region covered by Espicom in 2016. In per capita terms, Pakistan will rank the second lowest in the Asia Pacific region
by 2016. Real GDP growth is projected to increase to 4.7% in 2016. According to the EIU, Pakistan will remain heavily
dependent on multilateral institutions and bilateral donors for concessional loans and emergency aid. Demographically,
the EIU projects that Pakistan will have the fourth largest population in the Asia Pacific region by 2016. The elderly
population represents a very small proportion of the population; it will be the second lowest rate in the Asia Pacific
region by 2016.
IPR continues to be a major concern amid patent issues and the prevalence of counterfeit drugs. Despite being a
signatory to the WTO TRIPS agreement, Pakistan’s intellectual property rights protection for pharmaceuticals is very
weak. Pakistan remained on the US Trade Representative’s (USTR) Priority Watch List in 2010. The USTR stated that
Pakistan needs to improve the protection against unfair commercial use of pharmaceutical test data, and should
establish an effective system to address the patent issues of pharmaceutical products. Counterfeit drugs are also a major
problem in the country. The Pakistan Medical Association alleged that nearly half of drugs available in the country were
counterfeit and that the population spent around three-quarters of their household health budget on drugs, half of which
may be fake or unfit for human consumption.
The Pakistan pharmaceutical market is small and equally split between multinational and domestic companies. Espicom
projects the market to grow at a fairly high single-digit CAGR in the forecast period. By 2016, it will be the 11th largest
pharmaceutical market in the Asia Pacific region covered by Espicom. Imported retail medicaments account for around
a fifth of the market, although manufacturers rely heavily on imported raw materials for production. Multinational
companies account for around half of the market by value, although local producers have a far greater share in terms of
volume. With the vast majority of domestic manufacturing focused on the production of generics for the local market in
addition to significant pharmaceutical imports, the balance of pharmaceutical trade remains considerably negative
SECURITIES OFFERED
1 – Joint pari passu charge over present and future Fixed assets of the company of PKR 53.34 Million (with 25% margin
of finance facility)
2 – Lien of over import documents
3 – Personal guarantees of Mr. Zulqar Hussain and Dr. Tasadaq Hussain Cheema
PRESENT REQUEST
Shazeb Pharmaceutical Industries Limited management requested us for Package finance facility (Request enclosed)
however initially L/C (Sight & D.A) facility for PKR 40.000 Million to facilitate the import of raw material used in
manufacturing of product Line of company has been proposed
RECOMMENDATIONS
Keeping in view of strong financial means and good reputation of company, resourceful, qualified and experienced
management, Good market reputation of customer, Good trade and Import business, profitablity and deposits prospects,
we hereby request to please accord your approval for submitting the credit proposal. All relevant documents are
enclosed for your kind perusal and necessary action.
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Approved by:
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Credit Committee