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INDUSTRY REVIEW PROJECT

Submitted in partial fulfillment of the requirement for the award of the

Degree of Bachelor of Business Administration

Of Christ Deemed to be University)

Submitted by:

Shaan Deon Joshy (Reg No. 20111467)

Ayushman S Tomar (Reg No. 20111413)

Vishal Ghandi (Reg No. 20111459)

Under the Guidance of:

Prof. Manohar Giri

School of Business and Management

Christ (Deemed to be University)
PUNE, LAVSA
2021- 2022
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Caplin Point Laboratories Ltd.

Caplin Point Laboratories is one of the fastest growing mid-cap pharmaceutical companies in
India. Company holds over 2800 product licenses across the globe, with a dominant
position in Latin America.
Caplin Point, is one of the pharmaceutical industry’s heavy weight.
Formed on 16th April 1990, it had a outstanding performance owing to its strong supporters,
P.C. Partheeban, T. Palanisamy, S. Karunakaran, S. Jayaraman and B.A. Ahmed who
promoted the company throughout the country and held the flag high, as the company set
its roots forever in the world of medicine as one of India’s leading manufacturer of
pharmaceutical tablets, ointments, capsules and so much more.

A Brief Account of Caplin Point’s History and the Shift of Power:

The Company was incorporated on 16th April, 1990 under the Act as a Private Limited
Company under the name of CAPLIN POINT LABORATORIES PRIVATE LIMITED.
The name of the Company was changed to CAPLIN POINT LABORATORIES LIMITED
effective 23rd April 1993. The Company has adopted a new set of Articles on 12th March,
1993 as applicable to public limited companies. The Company was incorporated as an
extension of a pharmaceutical manufacturing unit started by M/s Triwin Pharmaceuticals,
the first pharmaceutical venture started by Mr. P C Partheeban (presently the Managing
Director), Mr. T Palanisamy and Mr. S Karunakaran in the year 1987 as a partnership
firm. In the year 1990, the Company was incorporated by the partners of the aforesaid firm
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along with Mr. B A Ahmed. Soon thereafter, Mr. S Jayaraman joined the Board to take
charge of production. M/s Triwin Pharmaceuticals was engaged in the business of
manufacture of Tablets, Liquid orals and Capsules (Non-Antibiotic) and Import Sales of
family planning and certain lifesaving drugs. The said firm also started the Export of
manufactured formulations in the year 1992-93. Even after the incorporation of the
Company, the firm continued its manufacturing, sales and export of Tablets, Liquid orals
and Capsules (Non-Antibiotic) and business of import sales while the Company started the
manufacture of Ointments, Oral Powders and Capsules (Antibiotic). The said firm has
since been taken over by the Company with effect from 1st September, 1993 with the
objective of consolidation of the business of the Company into a single larger entity for
setting up the Project envisaged. All the assets and liabilities of the firm were taken over at
book values as at 31st August 1993. The Company's turnover in future shall comprise of
the sales generated from the manufacturing faculties of the erstwhile firm also.
The company was listed in 1994, and set up a manufacturing facility in Pondicherry.
In 2001, it entered Angola with its unique stock and sales model.
In 2005, it entered the Chinese market by out sourcing from there.
In 2006, It soon expanded its product range and increased its production capacity.
The company was focused on the emerging markets of Latin America, Caribbean and
Southern Africa and today is the leading supplier around these regions with over 2800+
product licenses across the globe.
And in 2018, it began its first commercial shipments to the United States.

Until 2012 however, Caplin Point was only a Contract Manufacturer. After which it switched
its route from Generic medicine manufacturing to Branded Generic medicines which is
what led to its rapid growth over the past 10 years, from a measly 4.5 INR per share to a
whopping 712 INR per share. And still growing even though it’s a low cap company.

Product Profile:

Caplin Point Labs. Ltd. bring a range of products to the table, ranging from Tablets Capsules
and Oral Liquids to Ophthalmic Derma Cosmetics and Injections.
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Earlier in 2012, its main products were generics. Owing to the fact that during this period
from 1990 to 2012, it was a contract manufacturer. So their products comprised of market
required products and only generic medicines. However, once they became an actual
pharma company,
They began producing all sorts of products owing to their responsible Research and
Development team.
Products such as Ibuwin 400, which is a combination of Ibuprofen and Paracetamol.
Gencloben, a cream used for skin infection and many other products.

For now lets talk about the products that are currently regulated in today’s market:
Their Products comprise of home essentials and other such medicines which can be given for
instant relief or pain suppression.
Tablets, Capsules, Injections(Liquid, Lyophilized and Pre filled), Ophthalmic, Liquid Oral
medicines, Softgel capsules, Ointments, Creams and Gels.
They also Produce a wide range of hospital needed medicines which are to be prescribed,
such as:
Injection Powder, Suppository and Ovules, Dermo cosmetics, Surgical and Disposables, Pre
mix bad formulations, inhalers and sprays and IV infusion.

Their product sales around the world:

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Client Profile:

The major clients of Caplin Point include major hospitals in India, ranging from Physicians
recommendations to Customers who walk into Pharmacies.

Caplin Point as a company has done a spectacular job at winning over and influencing most
of the local market.

Caplin Point Laboratories has net cash of ₹4.53b, as well as more liquid assets than
liabilities. And it impressed us with its EBIT growth of 27% over the last year.

This is enough to show a new investor the scope of investing in Caplin Point, making it clear
that its customer base is growing tremendously in a short period of time.

7 out of 10 Customers, Physicians and Pharmacists themselves are happy with Caplin Point’s
products and Support services.

“Wide ‘growing customer base’ along with being a company with good recommendation is
why Caplin Point hits the market by storm” -Dr. Vijay Malik.

Organizational Structure:

Mr. C. C. Paarthipan is the chairman & promoter of Caplin Point Laboratories Ltd. He does
not take any salary from the company. Vivek Sidharth, son of Mr. Paarthipan, is the 2nd
generation entrepreneur and is already involved with Caplin Point Laboratories Ltd. So there
is a proper management succession plan.

With its Functioning work place Hierarchical structure, it makes sure there is a orderly work
environment and ensures an ethical flow of command and limited distribution of power.

Current Market Share:

As I’ve mentioned before, each share used to cost 4.5 INR back in 2010.

From there, it became 283 in 5 years.

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Each share is currently trading at 714.6 as of 21st July 2021.

The market demand is really strong for each stock of this company.

A Future Outlook:

As conveyed by management through its Annual Report 2016, Caplin Point Laboratories Ltd
has achieved its target in Latin America/Africa region and the future target is regulated
market through its CP IV unit.

However, there is a growing apprehension among analysts and shareholders about whether
Caplin Point Laboratories Ltd can compete with large players in the regulated market. Mr.
Paarthipan has addressed this concern in AR16 and was confident on Caplin Point
Laboratories Ltd’s success in the regulated market as well based on arguments like there are
very few players in US market for injectable and Caplin Point Laboratories Ltd has an
alliance with Europe giant Fresenius Kabi.

Even Chairman has already agreed that US business will not be cash rich rather it will be a
cash intensive business. At the same time, he has assured that this investment will come from
internal accruals (generated from FCF) and no equity dilution will happen. Going forward
investor needs to monitor whether Caplin Point Laboratories Ltd is funding through debt or
equity dilution.
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Caplin Point is on a rapid growth phase where its capital expenditure of 250 to 300 Cr INR to
expand its product portfolio and backward integrate majority of its products.

The Company is setting up manufacturing oncology plant for injectables and oral solid
dosage worth 160- 165 Cr INR.

They are targeting backward integration with its own API for 70% of all filing in US by
2024. They include US injectable APIs, OST APIs and Oncology APIs.

They plan on growing their Latin America business.

They have commenced exports to Mexico supplying injectables.

The Company’s Ecom platform “QuetenX” is growing rapidly serving

1000+ unique customers with 440+ SKUs.

They have now entered the United States Market. Going forward, it will be Caplin Point’s
primary factor for the company’s growth.

Caplin Point plans to enter more regulated markets such as Canada, Mexico and Australia in
its near to medium term horizon as well as expand its product portfolio.

Financial Information:

For the quarter ended 31-03-2021, the company has reported a Consolidated Total Income of
Rs 288.17 Crore, up 2.84 % from last quarter Total Income of Rs 280.21 Crore and up 22.70
% from last year same quarter Total Income of Rs 234.87 Crore.

BALANCE SHEET OF CAPLIN MAR MAR MAR MAR MAR  

POINT LABORATORIES (in Rs. Cr.) 21 20 19 18 17

  12 12 12 12 12  
mths mths mths mths mths

EQUITIES AND LIABILITIES  

SHAREHOLDER'S FUNDS  
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Equity Share Capital 15.13 15.13 15.13 15.12 15.12  

TOTAL SHARE CAPITAL 15.13 15.13 15.13 15.12 15.12  

Reserves and Surplus 743.55 575.34 410.06 277.19 184.91  

TOTAL RESERVES AND SURPLUS 743.55 575.34 410.06 277.19 184.91  

TOTAL SHAREHOLDERS FUNDS 758.68 599.91 432.05 295.60 200.12  

NON-CURRENT LIABILITIES  

Long Term Borrowings 0.00 0.02 0.29 0.32 0.48  

Deferred Tax Liabilities [Net] 20.97 22.14 22.54 22.16 18.97  

Other Long Term Liabilities 4.02 5.01 1.94 5.38 0.05  

Long Term Provisions 0.00 0.00 0.00 0.00 0.40  

TOTAL NON-CURRENT 24.99 27.16 24.77 27.86 19.90  

LIABILITIES

CURRENT LIABILITIES  

Short Term Borrowings 0.01 0.27 0.00 0.00 0.00  

Trade Payables 70.10 51.41 59.50 72.90 66.01  

Other Current Liabilities 7.22 11.71 21.76 13.86 29.37  

Short Term Provisions 0.00 0.87 1.25 0.58 1.67  

TOTAL CURRENT LIABILITIES 77.33 64.26 82.51 87.34 97.05  

TOTAL CAPITAL AND LIABILITIES 861.00 691.33 539.33 410.80 317.07  

ASSETS  

NON-CURRENT ASSETS  
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Tangible Assets 182.89 161.72 136.17 167.40 150.45  

Intangible Assets 0.00 5.20 1.59 1.92 1.30  

Capital Work-In-Progress 0.00 3.77 8.62 15.29 3.42  

Other Assets 0.00 0.00 0.00 0.00 0.00  

FIXED ASSETS 182.89 170.70 146.39 184.61 155.17  

Non-Current Investments 138.64 135.54 98.62 1.87 14.58  

Deferred Tax Assets [Net] 0.00 0.00 0.00 0.00 0.00  

Long Term Loans And Advances 3.49 2.21 4.43 9.08 10.59  

Other Non-Current Assets 3.32 2.15 1.94 2.03 0.00  

TOTAL NON-CURRENT ASSETS 328.34 310.59 251.37 197.59 180.34  

CURRENT ASSETS  

Current Investments 10.54 60.23 69.62 46.34 4.20  

Inventories 24.87 22.37 23.52 28.46 22.29  

Trade Receivables 98.46 218.98 125.39 86.35 3.21  

Cash And Cash Equivalents 365.49 58.27 44.85 28.28 76.66  

Short Term Loans And Advances 25.10 20.45 24.01 23.47 27.74  

Other Current Assets 8.20 0.43 0.56 0.31 2.63  

TOTAL CURRENT ASSETS 532.66 380.74 287.95 213.21 136.73  

TOTAL ASSETS 861.00 691.33 539.33 410.80 317.07  

OTHER ADDITIONAL  
INFORMATION
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CONTINGENT LIABILITIES,  
COMMITMENTS

Contingent Liabilities 0.00 26.56 74.63 74.22 0.00  

CIF VALUE OF IMPORTS  

Raw Materials 0.00 68.67 76.82 53.63 67.73  

Stores, Spares And Loose Tools 0.00 0.00 0.00 0.00 0.00  

Trade/Other Goods 0.00 0.00 0.00 0.00 0.00  

Capital Goods 0.00 9.73 13.13 10.45 10.85  

EXPENDITURE IN FOREIGN  
EXCHANGE

Expenditure In Foreign Currency 0.00 2.34 6.43 5.86 7.52  

REMITTANCES IN FOREIGN  
CURRENCIES FOR DIVIDENDS

Dividend Remittance In Foreign -- -- -- -- --  

Currency

EARNINGS IN FOREIGN  
EXCHANGE

FOB Value Of Goods -- 494.13 521.15 409.90 325.61  

Other Earnings -- -- -- -- --  

BONUS DETAILS  

Bonus Equity Share Capital -- -- -- -- --  

NON-CURRENT INVESTMENTS  

Non-Current Investments Quoted -- 0.33 0.04 0.04 12.95  

Market Value
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Non-Current Investments Unquoted -- 0.23 0.29 0.30 1.63  

Book Value

CURRENT INVESTMENTS  

Current Investments Quoted Market -- 60.23 69.62 46.34 --  

Value

Current Investments Unquoted Book -- -- -- -- 4.20

Value

Achievements:
Rather than writing them, here is a few photos and description of a few:
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