GENERAL OVERVIEW:

Founded in 1986 by Mr. P.V. Ramprasad Reddy, Mr. K. Nityananda Reddy and a small group
of highly committed professionals, Aurobindo Pharma was born of a vision. The company
commenced operations in 1988-89 with a single unit manufacturing Semi-Synthetic
Penicillin (SSP) at Pondicherry.

Aurobindo Pharma became a public company in 1992 and listed its shares on the Indian
stock exchanges in 1995. In addition to being the market leader in Semi-Synthetic
Penicillin’s, Aurobindo Pharma has a presence in key therapeutic segments such as
neurosciences (CNS), cardiovascular (CVS), anti-retroviral, anti-diabetics, gastroenterology
and Anti-biotics

Through cost effective manufacturing capabilities and a few loyal customers, the company
also entered the high margin specialty generic formulations segment. Today Aurobindo
Pharma has evolved into a knowledge driven company manufacturing active pharmaceutical
ingredients and formulation products. It is R&D focused and has a multi-product portfolio
with manufacturing facilities in several countries.

The formulation business is systematically organized with a divisional structure, and has a
focused team for key international markets. Leveraging its large manufacturing
infrastructure for APIs and formulations, wide and diversified basket of products and
confidence of its customers, Aurobindo achieved revenue of USD 3.3 billion in FY 2020-2021.
Aurobindo’s 11 units for APIs / intermediates and 15 units (10 in India, 3 in USA, 1 in Brazil
and 1 in Portugal) for formulations are designed to meet the requirements of both advanced
as well as emerging market opportunities.

A well-integrated pharma company, Aurobindo Pharma features among the top 2

Pharmaceutical companies in India in terms of consolidated revenues. Aurobindo exports to
over 150 countries across the globe with around 90% of revenues derived from
international operations. Our customers include premium multi-national companies. With
multiple facilities approved by leading regulatory agencies such as USFDA, EU GMP, UK
MHRA, South Africa-MCC, Health Canada, WHO and Brazil ANVISA, Aurobindo makes use of
in-house R&D for rapid filing of patents, Drug Master Files (DMFs), Abbreviated New Drug
Applications (ANDAs) and formulation dossiers across the world. Aurobindo Pharma is
among the largest filers of DMFs and ANDAs in India.

SHAREHOLDING PATTERN:

MANAGEMENT OF THE COMPANY:

Mr. K. Ragunathan

Independent Director & Non-Executive Chairman

Mr. K. Ragunathan is a Chartered Accountant by profession. He is one of the leading

Management Consultants of India with expertise in Management Consulting, Enterprise

Software Processes, business transaction structuring, corporate law procedures and

compliances, capital market and depository operation related consulting etc. He has over 24

years of experience in consulting services. He is a certified Management Consultant

affiliated to International Council of Management Consulting Institutes.

Mr. K. Nityananda Reddy

Whole time Director & Vice Chairman

Mr. K. Nityananda Reddy, holds a Master’s Degree in Science (Chemistry). He has been

associated with the Company since its initial days, acting as a promoter. He has expertise

in manufacturing technology and supervises the overall affairs of the Company.

Mr. P. V Ram Prasad Reddy

Non-Executive Director

Mr. P.V. Ram Prasad Reddy, holds a degree in Commerce and is a promoter of the Company.

Prior to promoting Aurobindo Pharma in 1986, he held management positions in various

pharmaceutical companies. He leads the strategic planning for the Company.

Dr. M. Sivakumaran

Whole Time Director

He holds a Master’s Degree in Science and a Ph.D in Organic Chemistry. He has 35 years of

experience in the pharmaceutical industry and he is currently responsible for the

technological evolution of the Company. Dr. M. Sivakumaran looks after research and

development, new product development and total quality management.

Strengths, Weaknesses, Opportunities & Threats (SWOT) analysis of the

company:

Strengths:

1. A new drug Nevirapine discovered against the HIV infective disease has been approved by
the US FDA, which will increase the market size and profits of the company.
2. Approval of generic version of Clopidogrel from FDA will boost revenue of company
3. A greater growth in terms of sales in the US and Europe due to various US approvals
4. Strong marketing network
5. Aurobindo exports to over 125 countries across the globe

Weaknesses:

1. Retirement of the three top most directors will have an impact on the functioning till new
capable people join.
2. The company is not into mergers or acquisitions which will help it increase the product list
3. Very low in the corporate social front
4. Largely dependant on Indian market for revenue generation
Opportunities:

1. Increasing health awareness

2. Improving the R&D section to expand the product pipeline

3. Globalize and further break through into joint ventures and subsidiaries into China, Brazil
and other Latin American markets.

Threats:

1. The European crisis, which will have a great impact on the sales since major orders are
from the Europe and US

2. Depreciating value of currency will affect the export

3. Peers post a major competition.

COMPETITIVE ANALYSIS:

DR. Reddy’s Laboratories:

Dr. Reddy's Laboratories is an Indian multinational pharmaceutical company located in

Hyderabad, Telangana, India. The company was founded by Anji Reddy, who previously
worked in the mentor institute Indian Drugs and Pharmaceuticals Limited. Dr. Reddy's
manufactures and markets a wide range of pharmaceuticals in India and overseas. The
company has over 190 medications, 60 active pharmaceutical ingredients (APIs) for drug
manufacture, diagnostic kits, critical care, and biotechnology products. Dr. Reddy's began as
a supplier to Indian drug manufacturers, but it soon started exporting to other less-
regulated markets that had the advantage of not having to spend time and money on a
manufacturing plant that would gain approval from a drug licensing body such as the U.S.
Food and Drug Administration (FDA).

Glenmark Pharmaceuticals:

Glenmark was founded with a vision to emerge as a leading integrated research-based,

global pharmaceutical company with an average market capitalization of 9174.54cr. as on
21st June 2021. Their branded generics business has a significant presence in markets across
emerging economies including India with its total revenue of 10640cr and their current ratio
is 1.65 (>1). The generics business services the requirements of developed markets like the
US and Western Europe. Their API business sells products in over 65 countries including the
US, various countries in the EU, South America, and India .With 14 manufacturing facilities
and 3 R&D centers dedicated to the goal of enriching lives across the globe we believe that
the real force behind our continued successes is dedicated employees from across 60
nationalities, committed to creating 'A new way for a new world'.

Conclusion and Way forward for the company:

Aurobindo Pharma, which had traditionally focused on generic drugs, into the area of
discovery research. It has a strong presence in a few other countries. The company's stock
price has plummeted, and the management is under pressure from financial analysts to
drop discovery research and focus on what they had always done best generics. This
company will surely achieve its desired objectives and targets, will be in the top position of
pharmaceutical markets.