Research Insight -1

Research Report on ABOTT INDIA LTD.

OVERVIEW
Abbott India Ltd is a part of Abbott's global pharmaceutical business in India and is one of the fastest
growing pharmaceutical firms in India. Abbott India Ltd, a publicly traded company and a subsidiary
of Abbott Laboratories, is headquartered in Mumbai and has strong brand equity in a variety of
therapeutic areas, including Women's Health, Gastroenterology, Neurology, Thyroid, Diabetes &
Urology, Pain Management, Vitamins, Anti-Infectives, and other areas.

Abbott India Ltd.’s success is supported by a highly qualified and motivated commercial staff, R&D-
backed products, and strong alliances and collaborations. The company employs more than 2,600
employees serving clients through a 35-point distribution network.

SWOT ANALYSIS
In SWOT analysis, the results can be used to improve and expand the firm's competitive advantages,
insights can be utilized to mitigate the company's shortcomings and provide a strategy for dealing
with external threats.

STRENGTHS

 Strong distribution network: Abbott India ltd. has created a strong distribution network
over the past few years that can cover the vast majority of its prospective market.
  Strong brand portfolio: Abbott Laboratories has put a lot of effort into creating a strong
brand portfolio over the years. If the company wants to bring out new product categories, this
brand portfolio might be highly valuable.
 High level of customer satisfaction: the company has been able to attain a high level of
customer satisfaction among current customers and good brand equity among potential
consumers thanks to its specialized customer relationship management department.

WEAKNESSES

 Lack of financial planning: Financial planning is ineffective and ineffective. The current
asset ratio and liquid asset ratios indicate that the company can make better use of its cash
than it is now.
 Days inventory is high compare to the competitors: When compared to competitors, days
inventory is high, forcing the company to generate more capital to spend in the channel. This
may have an impact on Abbott Laboratories' long-term growth.
 Limited organization structure: Because the organization's structure is only compatible
with the current business strategy, expansion into related product sectors is limited.

OPPORTUNITIES

 New trends in consumer behavior: these trends can open up a new market for the company.
It gives the company a great chance to diversify into new product categories while also
generating new revenue sources.
 New tax policy: The new tax policy will have a big impact on how businesses operate, and it
will provide new opportunities for established companies like Abbott Laboratories to grow
their profits.
 Lower inflation rate: Because of the low inflation rate, the market is more stable, allowing
the company’s consumers to obtain loans at a reduced interest rate.

THREATS

 Intense competition: Over the last two years, stable profitability has led to an expansion in
the number of players in the business, putting downward pressure on both profitability and
overall sales.
 No regular supply of innovative products: The corporation has developed a number of
goods throughout the years, but they are frequently in response to the development of other
players. Second, the supply of new products is irregular, resulting in high and low swings in
sales numbers over time.
 Shortage of skilled labour: A shortage of skilled workers in key worldwide marketplaces
poses a danger to the company’s ability to maintain consistent profit growth in such regions.

SHARE HOLDING PATTERN OF THE COMPANY

  Abbott India ltd. Is a part of the Abbott group which includes Abbott laboratories, Abbott
laboratories Argentina, S.A and Abbott capital India Ltd.
 The parent company originally being Abbott laboratories is an American multinational
medical devices and health care company which is head quartered in in Abbott Park Illinois.
 The parent company as well as the group as a whole that operates over around 160 countries
are all mainly held by institutions as their shareholder, hence the company is not a family-
owned company.
 Some of the major shareholders of Abbott India ltd are as follows:

Name % of holding
Abbott laboratories 75.0%
L&T Investment Management Ltd. 0.95%
Goldman Sachs Asset Management International 0.68%
Canara Robeco Asset Management Co. Ltd. 0.55%
Franklin Templeton Asset Management (India) Pvt Ltd. 0.52%
Nippon Life India Asset Management Ltd. (Invt. Mgmt) 0.51%
Kotak Private Equity Group 0.48%
Axis Asset Management Co. Ltd. 0.47%
Motilal Oswal Asset Management Co. Ltd. 0.45%
SBI Funds Management Pvt Ltd. 0.39%

Abbott India Ltd.'s Shareholding Pattern includes the Promoter's holding, FII's holding, DII's holding,
and general public's holding, among other things.

Holder's Name No of Shares % Share Holding

No Of Shares 21249302 100%

Foreign Institutions 215661 1.01%

NBanks Mutual Funds 683280 3.22%

Others 492665 2.32%

General Public 3431949 16.15%

Financial Institutions 491699 2.31%

Foreign Promoter 15934048 74.99%

The following is represented in graphical form which explains the above table:
 Promoters holding remains unchanged at 74.99% in Mar 2021 qtr.
 Mutual Funds have decreased holdings from 4.0% to 3.22% in Mar 2021 qtr.
 Number of MF schemes decreased from 25 to 22 in Mar 2021 qtr.
 FII/FPI have decreased holdings from 1.1% to 1.01% in Mar 2021 qtr.
 Number of FII/FPI investors decreased from 84 to 77 in Mar 2021 qtr.
 Institutional Investors have decreased holdings from 6.92% to 6.55% in Mar 2021 qtr.
 MANAGEMENT OF THE COMPANY
Abbott India ltd is a professionally managed company by institutional investors.

Name Designation

Ambati Venu Non-Executive Director

Anil Joseph Managing Director

Anisha Motwani Independent Director

Kaiyomarz Marfatia Non-Executive Director

Krupa Anandpara Co. Secretary & Compl. Officer

Munir Shaikh Chairman

Rajiv Sonalker Whole-time Director & CFO

Shalini Kamath Independent Director

Sudarshan Jain Independent Director

 The Background of Abbott India Ltd. captures the details on Company's Industry,
Incorporation Date, Face Value, Registered Address, Web Site, Registrar, and Auditor’s
information.
 The industry name is pharma -MNC
 The incorporation date is 22/08/1944 along with face value of shares of the company is 10.0
 The company being situated in the state of Maharashtra in the city , Mumbai
 The registrar is KFIN technologies , and the auditor of the company being SRBC & Co LLP.

COMPETITIVE ANALYSIS
Abbott India ltd. Holds a significant presence in the pharmaceutical market. In the recent market
activity, the company has shown a positive growth.

Abbott's power brands are market leaders in their respective areas. Knowing that the brand-building
and patient communication measures being done, the company’s strong performance is projected to
continue.

COMPETITORS OF ABBOTT INDIA LTD.:

SUN PHARMA

 Sun Pharmaceutical Industries Ltd., founded in 1993, is a Large Cap business in the
pharmaceuticals sector with a market cap of Rs 163,202.76 crore.
 It is the market leader in the chronic sector and has a strong position in the acute category.
 The company specializes in technically challenging devices and provides a full therapy
basket.

DIVIS LABS

 Divi's Laboratories Ltd., founded in the year 1990, is a Large Cap business in the
pharmaceuticals industry with a market cap of Rs 121,052.35 crore.
 It manufactures and sells generic active pharmaceutical ingredients (APIs) as well as a variety
of carotenoids and vitamins to the nutritional, pharmaceutical, and feed industries.

CIPLA

 Cipla Ltd., founded in 1935, is a Large Cap business in the pharmaceuticals industry with a
market capitalization of Rs 78,605.98 crore.
 it is into pharmaceutical business, with a product portfolio spanning respiratory, anti-
infectives, cardiometabolic, gastrointestinal, and urological therapeutic areas.

The following table show the position of Sun pharma, Divis labs and Cipla along with other top
competitors.

 Sun pharma has more than double the market capitalization of the other firms. The company
has more strong hold in the market than Abbott India.
 The 2nd comes Divis labs with second highest market capitalization in the market but when
compared to the 1st year performance, Divis labs has the highest rate of performance.
 Cipla comes 3rd when it comes to market capitalization with 2nd highest rate of performance.
 Abbott India has lower position in the market as compared to its competitors Sun pharma
being on its top position in the market.

CONCLUSION
 The company has to still work on its strengths in order to make its self a more competitive
brand in the market, as the company has a potential growth which can be achieved by
working on market strategies.
 Since the company has a known position in the market, it can work more on its weaknesses
taking in consideration the opportunities that lie ahead of the company.
 Analyzing the market position of Abbott India, the company has a low position as compared
to its competitors. Hence, the financial planning is something which the company need to
work on.
 With strong distribution network and lower inflation rate in the market the company can work
on its financial planning which would result in rising growth of the market capitalization.
 Along with necessary expansion for the company’s organizational structure which would in
return lead to expansion in the product related sectors increasing the market share.