I

BRACTs
Vishwakarma Institute of Management
(An ISO 9001-2008 Certified Institute)
(Approved by AICTE-New Delhi, Recognized by Government of Maharashtra and Permanently Affiliated to University of Pune)
MBA Programme Rated as MH-A by CRISIL
Recipient of the 19
th
Dewang Mehta B School Award for the Best B School with Academic Inputs in Marketing
Rewarded as Second Best Professional Institute in Urban Area Category by the University of Pune





1 Executive Summary
2 Project Objective
3 Introduction
4 Markets
5 Financial Information
6 Corporate Governance
7 CSR Activities
8 Conclusion
9 References





Project Report
On
Cipla
For the subject,
Enterprise Analysis Desk Research (Course Code: 115)
Submitted by,
xxxxxx
MBA I, Div. A
Roll No xxxxxx

1


INDEX


Sr. No. Topic Page No.
1 Executive Summary 2
2 Project Objective 4
3 Introduction 5
4 Markets 10
5 Financial Information 12
6 Corporate Governance 22
7 CSR Activities 26
8 Conclusion 27
9 References 28





2

1. Executive Summary
1.1 Introduction
Cipla was established in 1935 with the vision of making India self-reliant and self-
sufficient in healthcare. Today, Cipla is one of the worlds largest generic pharmaceutical
companies with a presence in over 170 countries. Cipla is renowned for making affordable,
world-class medicines that meet the needs of patients across therapies. Cipla offer services like
consulting, commissioning, plant engineering, technical know-how transfer and support.
1.2 History
Ciplas journey began in 1935 when our founder, Dr. K. A. Hamied, set up an enterprise
with the vision to make India self-sufficient in healthcare. Over the past 77 years, Cipla has
emerged as one of the worlds most respected pharmaceutical names, not just in India but
worldwide.
Cipla has 34 state-of-the-art manufacturing facilities that make Active Pharmaceutical
Ingredients (APIs) and formulations, which have been approved by major international
Regulatory Agencies. Cipla has over 2000 products in 65 therapeutic categories; with over 40
dosage forms, covering a wide spectrum of diseases ranging from communicable, non-
communicable, common and emerging diseases to even rare diseases.
Ciplas Research and Development (R&D) centre is focused on developing innovative
products and drug delivery systems, giving the country and the world many Firsts'.
Today, Cipla is one of the worlds largest generic pharmaceutical companies with a
strong presence in over 170 countries. The company maintains world-class quality across all its
products and services.
Whether its for millions or for just a few hundreds, Ciplas journey to care for all
humanity continues.




3

1.3 Caring for life
Since inception in 1935, caring has been at the core of everything we do at Cipla.
For patients, caring is a promise that we will do whatever it takes to ensure they have
continued access to the highest quality medicines at affordable prices; whether a disease affects
millions or just a few hundreds.
To the medical fraternity, caring means the assurance of world-class medicines and
support across multiple therapeutic areas.
For business partners, caring brings the confidence of always getting world-class quality
and competitive prices.
For employees, caring manifests itself in a safe, equal-opportunities' workplace that
fosters innovation for a healthier world.
1.4 Vision
Cipla stands for healthcare solutions by bringing access to medication; affordable
medicines and true innovation to patients.
Establish the right mix of high volume and high value complex generics
Capitalize on Ciplas wealth of respiratory experience into meaningful healthcare
solutions.
Establish affordable access to HIV products as a cornerstone of Ciplas global portfolio.








4

2. Project Objective

i) The primary objective to study Cipla is to understand in detail about the Company.
ii) To understand various segments / markets / customers catered by company from
perspective of companys stakeholders / shareholders / or future employee of
company.
iii) Understand the companys market scenario and financial stand.
iv) To understand about companys various governance and CSR activities.



5

3. Introduction
3.1 Cipla
Cipla Limited is a pharmaceutical company based in Mumbai, India. Founded by Khwaja
Abdul Hamied as The Chemical, Industrial & Pharmaceutical Laboratories in 1935, Cipla makes
drugs to treat cardiovascular disease, arthritis, diabetes, weight control, depression and many
other health conditions.
Cipla cooperates with other enterprises in areas such as consulting, commissioning,
engineering, project appraisal, quality control, know-how transfer, support, and plant supply.
Type: Public
Traded as: BSE: 500087
NSE: CIPLA
BSE SENSEX Constituent
Industry: Pharmaceuticals
Founded: 1935
Headquarters: Mumbai, Maharashtra, India
Key people: Y. K. Hamied (CMD), Chairman
Products: Pharmaceuticals and diagnostics
Revenue: INR69775.0 million (US$1.1 billion) (2012)
Net income: INR11.23 billion (US$170 million) (2012)
Approvals: US FDA, WHO-Geneva, MHRA-UK, TGA-Australia, SUKL-
Slovak Republic, APVMA-Australia, MCC-South Africa, PIC-
Germany, Danish Medical Agency, ANVISA-Brazil, INVIMA-
Colombia, NDA-Uganda, Department of Health-Canada and
MOH-Saudi Arabia, among others
Highlights: One of the worlds largest generic companies.
Over 2,000 products, 65 therapeutic categories, over 40 dosage
forms.
34 state-of-the-art manufacturing facilities approved by major
international regulatory agencies.
Continuous innovation in R&D; over 20 world firsts.


6

Employees : over 16,000
Cipla logo:

Website: www.cipla.com

3.2 Key therapies
o CARDIOVASCULAR: Forty years ago, Cipla started its fight against heart disease with
innovative and high-class drugs. Cipla introduced Propranolol, the first beta blocker in
India way back in 1972. This ushered in a new age of affordable beta blockers. Over the
years, Cipla have developed several products that help treat various diseases like MI,
angina, heart failure, hypertension, arrhythmia, lipid abnormalities and diabetes, and
obesity. Apart from innovation in cardiology, Cipla also provide valuable services to the
medical fraternity, in the form of the latest medical updates, CMEs and workshops. Not
to mention many international symposia and Ciplabcasts with the worlds leading minds
in cardiology, and conferences conducted in collaboration with international scientific
bodies.

o DERMATOLOGY AND COSMETOLOGY: Dermatology and Cosmetology are among
the most dynamic sciences in the world and Cipla are doing their best to be at the
forefront. Cipla Dermatology is based on three pillars: Science, Technology and
Aesthetics. This unique 3-in-1 approach has led the company to develop many innovative
products and services for both patients and doctors. Cipla have a spectrum of products
based on a range of formulations for acne, skin infection (bacterial, fungal & herpes),
seborrhoeic dermatitis, psoriasis, steroid responsive dermatitis, hair loss and aging skin.
Products are available as oral and various topical formulations like cream, ointment,
solution, suspension, foam, serum and so on.

o DIABETES: Cipla has played a significant role in diabetes treatment and control and has
developed a range of anti-diabetic drugs for the management and control of diabetes and


7

the treatment of complications that arise due to it. Cipla have several products as single
and combination pills to treat diabetes: Metformin, a single drug, Metformin plus
Glimepiride, a dual combination and Metformin plus Glimepiride plus Pioglitazone, a
triple drug combination. Cipla also have drugs to manage diabetic complications like
Atorvastatin and Fenofibrate for high cholesterol, Pregabalin for painful diabetic
neuropathy and Cilostazol for intermittent claudication.

o HIV/AIDS: Cipla has been committed to the cause of HIV/AIDS for over two decades. In
our crusade against the disease, Cipla has developed over 15 single and combination
medicines that revolutionized HIV therapy, not just in India but across the world. In
2001, Cipla introduced the worlds first ever recommended 3-in-1 fixed dose
combination (Stavudine + Lamivudine + Nevirapine) to fight AIDS. It was made
available at less than $1 per day compared to over $12,000 per patient per year prevailing
in most countries throughout the world. It lifted the death sentence from millions across
the developing world. Cipla has also done pioneering work in pediatric HIV and
addressed the needs of every kind of HIV patient, from pregnant mothers to babies and
from children to adults.

o NEUROSCIENCES: Cipla has brought its expertise gained from other therapies into the
world of neurosciences, one of the most challenging areas in medicine. So whether its
migraine or epilepsy, multiple sclerosis or Parkinsons disease, bipolar disorder or
Alzheimers dementia, Cipla has a repertoire of world-class medicines for all these
conditions. Companys strength lies in the anti-migraine segment with Rizatriptan and
Zolmitriptan. Ciplas Zolmitriptan Nasal Spray offers quick relief, in less than 10 minutes
due to its unique dosage form. Glatiramer Acetate Injection is Indias first pre-filled
syringe for patients suffering from multiple sclerosis. Cipla has a wide range of
medications for various types of epilepsies, from the conventional Valproate to the
second generation Lamotrigine and Levetiracetam, and third generation drugs including
Lacosamide. Cipla make drugs for Parkinsons disease such as Amantadine and
Pramipexole, and Donepezil and Memantine for Alzheimers.

o ONCOLOGY: Cipla hopes to bring relief to the lives of cancer patients with its range of
quality products at humane prices. Cipla has also helped pioneer the concept of Palliative


8

Care in India by founding the Cipla Palliative Care and Training Centre. Cipla is the first
company in India to introduce the drugs Vincristin and Vinblastine in the year 1984.
Over the years, Cipla has extended its anti-cancer portfolio and now Cipla has more than
32 drugs (57 SKU) to treat various types of cancer. Cipla manufacture most of the APIs
in-house - this is testimony to our strong research, manufacturing and quality capabilities.
Cipla is the first in India to get US FDA approval for its manufacturing facilities for
oncology products. Cipla have successfully developed and manufactured a number of
nanotech based products for cancer, such as paclitaxel injection. The aim is to prevent
unwanted toxicity, improve patient compliance and thus provide favorable clinical
outcomes. The Cipla Palliative Care and Training Centre Pune were set up in 1997 to
provide free care for terminally ill cancer patients. The approach is holistic, and focuses
not on dying but on living each day to the fullest. Over the years, the Centre has reached
out to more than 7,700 patients and their families.

o OPHTHALMOLOGY: Cipla has a dedicated ophthalmology division with medicines that
support wellness, prevention, treatment and cures in a broad range of therapeutic areas
which include glaucoma, dry eye, anti-infectives , anti-inflammatory and anti-oxidants.
Working on the belief that eyes are the most complex and delicate organs in the body,
Cipla ensure that every eye drop contains a universe of care and commitment, science
and technology, passion and precision
Some of Ciplas innovative products:
Worlds first cyclosporine eye drops with micro-emulsion technology.
Worlds first antibiotic-steroid fixed dose combination.
Indias first carbonic anhydrase inhibitors for glaucoma.

o OSTEOPOROSIS: Since 1997, Cipla has been committed to strengthen the bones of
millions of patients suffering from osteoporosis. Cipla has the widest range of
osteoporosis drugs that meet the individual needs of people to adhere to the medicine. At
a time when anti-osteoporosis medicines were not available in the country, Cipla
launched Alendronate, the first osteoporosis drug to be introduced in India. Cipla
introduced Risedronate, an anti-osteoporosis drug in India at 1/10th the price of the
innovator brand, making it affordable to all. Patient compliance is generally a big


9

challenge in the treatment of osteoporosis. Risedronate 150 met this challenge with its
once-a-month dosing and this has improved patient adherence. With the launch of
Risedronate 35 mg + Calcium Citrate Maleate + Cholecalciferol, patients are ensured
that, along with the bisphosphonate, they get Calcium and Vitamin D, which is an
integral part of osteoporosis treatment. When Cipla introduced Zoledronic acid, an
injection for osteoporosis to be taken just once a year, Cipla increased patient compliance
by leaps and bounds.

o RESPIRATORY: Cipla is proud of its commitment to respiratory diseases with the
introduction of Salbutamol tablets in 1976 and Salbutamol inhaler in 1978 in India. Since
then Cipla have consistently introduced new products for asthma, Chronic Obstructive
Pulmonary Disease (COPD) and Allergic Rhinitis (AR) and more recently in other
diseases such as Pulmonary Arterial Hypertension (PAH), lung cancer and Idiopathic
Pulmonary Fibrosis (IPF).

o UROLOGY: Cipla has a significant presence in urology, with products in prostate
ailments BPH (Benign Prostatic Hyperplasia), prostate cancer, bladder disorders,
urinary stones, hypogonadism and sexual dysfunction ailments. Besides developing many
of Indias firsts in this therapy, we have to our credit the worlds first combination
products containing Tamsulosin + Finasteride and Tamsulosin + Dutasteride...milestones
in the history of urology. Some of Ciplas other important products in urology include a
selective alpha-blocker that reduces the chances of surgery for BPH patients,
Bicalutamide for prostate cancer. Potassium citrate and Magnesium citrate solution
for the treatment and management of urinary stones.

o WOMEN'S HEALTH: Ciplas commitment to womens health began in 1979, with the
launch of Clominphene citrate for infertility in women. Over the years, Cipla have
developed an entire range of products dedicated to help women across age groups lead
more fulfilling lives. From managing polycystic ovarian syndrome to maintenance of
early pregnancy, from preventing post-partum haemorrhage to hormonal treatment, to
helping menopausal problemsCipla have medication for every stage of a womans life.



10

4. Markets
Domestic Markets
Cipla delivers robust growth in the domestic market across therapies and maintains its
leadership position in respiratory, urology and HIV. The strong field force and distribution
network are important factors for Ciplas success in India. The focus is on channelizing the
Companys resources in increasing sales force effectiveness and hence productivity. For future
prospects, in-licensing opportunities are being considered, which would provide an unparalleled
platform to launch new, innovative and complex products. Furthermore, Cipla continues to work
closely with specialized corporate hospitals and nursing homes and take advantage of our broad
portfolio. Ciplas leading position in various therapeutic categories, including respiratory and
urology, reinforces the potential to strengthen its presence in India across other therapies. Cipla
continues to increase its focus on CNS, Oncology, Dermatology and Gastroenterology.
International Markets
The contribution from exports to the total revenues is more than 50% and is further
expected to grow over the years. Cipla is evaluating several business models such as capturing
value through direct presence in key priority markets including South Africa, US, Europe and
Australia. Additionally, Cipla will continue working with existing alliances to capture untapped
growth opportunities.
Recently, the Company completed the acquisition of 100% of share capital of Cipla
Medpro in South Africa, at ZAR 10 per share amounting to a total investment of Rs 2,707 crore.
This investment is aimed at further strengthening the Companys commitment to the African
continent, and is aligned with the strategy to ascend the value-chain by managing a frontend
sales force in a market outside India. The deal enables Cipla to strengthen Medpros position in
the South African pharmaceutical market, support the optimization of Medpros manufacturing
capability and support Medpros expansion into collaboratively identified African markets.
Cipla will leverage the broad spectrum of products in its domestic market to optimally
capitalize across other emerging countries. Simultaneously, the Company aims to build a robust
portfolio of differentiated products to drive growth in developed markets. Recent achievements


11

of regulatory approval for Fluticasone HFA in several European countries and commercialization
of Azelastine combinations with Meda AB are few examples in this direction.

Product Name Sales (Rs.Millions) % of STO
Tablets & Capsules 4499.91 54.25
Bulk Drugs 756.92 9.13
Aerosols/Inhalation Devices 736.28 8. 8
Injections/Sterile Solutions 653.46 7.88
Tablets & Capsules - Traded 433.96 5.23
Liquids 286.36 3.45
Liquids - Traded 176.15 2.12
Injections/Sterile Solutions - Traded 135 1.63
Bulk Drugs - Traded 121.8 1.47
Creams 108.73 1.31
Others - Traded 54.81 0.66
Aerosols/Inhalation Devices - Traded 49.66 0.6
Others 49.03 0.59
Creams - Traded 45.46 0.55











12

5. Financial Information
Consolidated Balance Sheet of
Cipla

------------------- in Rs. Cr. -------------------
Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
12 mths 12 mths 12 mths 12 mths 12 mths
Sources Of Funds


Total Share Capital 160.58 160.58 160.58 160.58 155.46
Equity Share Capital 160.58 160.58 160.58 160.58 155.46
Share Application Money 0 0 0 0 0
Preference Share Capital 0 0 0 0 0
Init. Contribution Settler 0 0 0 0 0
Preference Share Application
Money 0 0 0 0 0
Employee Stock Opiton 0 0 0 0 0
Reserves 8,858.10 7,478.35 6,496.58 5,741.02 4,183.37
Revaluation Reserves 0 0 8.97 8.97 8.97
Networth 9,018.68 7,638.93 6,666.13 5,910.57 4,347.80
Secured Loans 9.49 10 47.95 0.41 2.79
Unsecured Loans 957.44 3.46 523.94 4.66 937.45
Total Debt 966.93 13.46 571.89 5.07 940.24
Minority Interest 0 0 0 0 0
Policy Holders Funds 0 0 0 0 0
Group Share in Joint Venture 0 0 0 0 0
Total Liabilities 9,985.61 7,652.39 7,238.02 5,915.64 5,288.04



Application Of Funds


Gross Block 5,317.52 4,626.90 4,241.10 2,897.26 2,693.29
Less: Accum. Depreciation 1,707.55 1,411.11 1,146.54 886.09 700.8
Net Block 3,609.97 3,215.79 3,094.56 2,011.17 1,992.49
Capital Work in Progress 377.79 371.17 285.34 684.24 366.32
Investments 2,532.44 1,268.81 590.4 246.41 80.05
Inventories 2,387.07 1,850.08 1,906.16 1,512.58 1,398.32
Sundry Debtors 1,668.84 1,553.58 1,490.82 1,566.63 1,852.86
Cash and Bank Balance 143.01 90.46 95.56 61.54 53.23
Total Current Assets 4,198.92 3,494.12 3,492.54 3,140.75 3,304.41
Loans and Advances 938.65 1,000.36 1,161.93 1,226.04 1,113.34
Fixed Deposits 0 0 5.46 0.52 0.16
Total CA, Loans & Advances 5,137.57 4,494.48 4,659.93 4,367.31 4,417.91
Deffered Credit 0 0 0 0 0
Current Liabilities 1,389.79 1,454.63 1,171.20 1,177.12 1,177.02


13




Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
12 mths 12 mths 12 mths 12 mths 12 mths



Provisions 282.37 243.23 221.01 216.37 391.71
Total CL & Provisions 1,672.16 1,697.86 1,392.21 1,393.49 1,568.73
Net Current Assets 3,465.41 2,796.62 3,267.72 2,973.82 2,849.18
Minority Interest 0 0 0 0 0
Group Share in Joint Venture 0 0 0 0 0
Miscellaneous Expenses 0 0 0 0 0
Total Assets 9,985.61 7,652.39 7,238.02 5,915.64 5,288.04



Contingent Liabilities 4,080.64 510.96 542.35 423.87 364.54
Book Value (Rs) 112.32 95.14 82.91 73.5 55.82























14



Consolidated Profit & Loss account of Cipla
------------------- in Rs. Cr. -------------------
Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
12 mths 12 mths 12 mths 12 mths 12 mths
Income
Sales Turnover 8,279.33 7,128.82 6,371.32 5,677.07 5,295.33
Excise Duty 0 108.11 49.52 52.16 61.04
Net Sales 8,279.33 7,020.71 6,321.80 5,624.91 5,234.29
Other Income 261.91 139.52 99.99 109.8 -143.86
Stock Adjustments 290.6 -5.65 125.89 184.09 113.55
Total Income 8,831.84 7,154.58 6,547.68 5,918.80 5,203.98
Expenditure
Raw Materials 3,335.01 2,831.12 2,979.09 2,687.54 2,513.11
Power & Fuel Cost 233.12 235.35 179.33 92.15 91.71
Employee Cost 1,036.26 772.52 489.45 319.1 271.38
Other Manufacturing Expenses 0 268.95 260.27 259.67 262.65
Selling and Admin Expenses 0 0 1,016.49 868.03 887.33
Miscellaneous Expenses 1,767.69 1,248.27 183.31 182.72 76.94
Preoperative Exp Capitalised 0 0 0 0 0
Total Expenses 6,372.08 5,356.21 5,107.94 4,409.21 4,103.12
Operating Profit 2,197.85 1,658.85 1,339.75 1,399.79 1,244.72
PBDIT 2,459.76 1,798.37 1,439.74 1,509.59 1,100.86
Interest 33.91 38.34 23.1 28.3 52.23
PBDT 2,425.85 1,760.03 1,416.64 1,481.29 1,048.63
Depreciation 330.48 312.22 254.15 167.07 151.79
Other Written Off 0 0 0 0 0
Profit Before Tax 2,095.37 1,447.81 1,162.49 1,314.22 896.84
Extra-ordinary items 0 0 -0.14 11.87 -1.32
PBT (Post Extra-ord Items) 2,095.37 1,447.81 1,162.35 1,326.09 895.52
Tax 544.31 306.51 195.22 243.5 124.5
Reported Net Profit 1,551.06 1,141.30 967.13 1,082.59 771.02
Minority Interest 0 0 0 0 0
Share Of P/L Of Associates 6.21 -2.94 -22.44 0 0
Net P/L After Minority Interest & Share Of Associates 1,505.08 1,144.24 989.71 975.72 772.34
Total Value Addition 3,037.07 2,525.09 2,128.85 1,721.67 1,590.01
Preference Dividend 0 0 0 0 0
Equity Dividend 160.58 160.58 224.81 160.58 155.46
Corporate Dividend Tax 27.29 26.05 36.72 26.67 26.42
Per share data (annualised)
Shares in issue (lakhs) 8,029.21 8,029.21 8,029.21 8,029.21 7,772.91
Earning Per Share (Rs) 19.32 14.21 12.05 13.48 9.92
Equity Dividend (%) 0 0 0 0 0
Book Value (Rs) 112.32 95.14 82.91 73.5 55.82


15

SALES


YEAR END
SALES(Rs in
crores)
31st mar '09 5,295.33
31st mar '10 5,677.07
31st mar '11 6,371.32
31st mar '12 7,128.82
31st mar '13 8,279.33

















Sales trend

Year 2008-09:
The Companys turnover recorded a 22 per cent growth and crossed the Rs.5000 crore
milestones. While exports grew by 30 per cent, the domestic sales grew by 15 per cent.
The Company introduced many new drugs and formulations during the year. Some of the
significant introductions were:
Abamune L (abacavir and lamivudine tablets) new NRTI combination for HIV/AIDS.
Aprepit (aprepitant capsules) new antiemetic for prevention of nausea and vomiting in
cancer chemotherapy
0.00
1,000.00
2,000.00
3,000.00
4,000.00
5,000.00
6,000.00
7,000.00
8,000.00
9,000.00
31st mar
'09
31st mar
'10
31st mar
'11
31st mar
'12
31st mar
'13
5,295.33
5,677.07
6,371.32
7,128.82
8,279.33
SALES(Rs in crores)


16

Bondria (ibandronate tablets and injection) for osteoporosis and metastatic bone
diseases
Cold Spray (azelastine and budesonide spray) combination spray for allergic rhinitis
Gefticip (gefitinib tablets) for advanced and metastatic lung cancer

Year 2009-10:
The Company achieved an overall growth of about 8 per cent in turnover during the year.
Domestic growth was steady at 10 per cent. According to ORG-IMS, Cipla remained the leader
in the domestic market, as on 31st March 2010 with a market share of 5.38 per cent. However,
growth in formulation exports was affected due to various factors including non-
availability of important raw materials, lower tender business in anti-retroviral and
unfavorable movements in foreign exchange rate.
Significant introductions of new drugs and formulations during the year:
Advent Forte (amoxycillin and clavulanic acid syrup) combination antibiotic for
difficult infections
Antiflu (oseltamivir capsules and syrup) first oral drug for bird flu
Bosentas (bosentan tablets) first specific therapy for pulmonary arterial
hypertension
Cinmove (cinitapride tablets) new anti-motility drug for gastrointestinal
disorders
Clearnoz NS (sodium chloride nasal spray) saline spray for dry nose

Year 2010-11:
During the year under review, the Companys total income from operations increased by
12 per cent. Domestic turnover rose by 12 per cent while export income went up by 16 per cent.
Significant introductions of new drugs and formulations during the year:
Entavir (entecavir tablets) - antiviral for hepatitis B
Flosoft (fluorometholone acetate ophthalmic suspension) - topical steroid for eye
inflammation
Panstal (pancreatin capsules) - digestive enzyme for pancreatic insufficiency
Phosome (liposomal amphotericin injection) - high potency antifungal in a new targeted
drug delivery system


17

Prandial M (voglibose and metformin tablets) - combination antidiabetic

Year 2011-12:
The Companys revenue from operations during the financial year 2011-12 amounted to
Rs 7,128.82 crore against Rs 6,371.32 Crore in the previous year recording a growth of more
than 10 percent.
Significant introductions of new drugs and formulations during the year:
Adgain vital nutritional supplement for hair loss
Capnea (caffeine citrate injection and oral solution) for apnoea of prematurity in infants
Flavocip (flavoxate hydrochloride tablets) for relief of spasm of the urinary tract
Ivabeat (ivabradine tablets) novel drug for coronary artery disease and chronic heart
failure
Lumet (artemether and lumefantrine tablets) combination drug for acute malaria

Year 2012-13:
The Companys revenue from operations during the financial year 2012-13 amounted to
8,279.33 crore against Rs 7,128.82 crore in the previous year recording a growth of more than 17
percent. The domestic turnover increased by more than 14 percent, from Rs 3,213 crore in the
previous financial year to Rs 3,681 crore in the financial year under review. Total exports
increased by about 20 percent during the year to Rs 4,426 crore.
Significant introductions of new drugs and formulations during the year:
Amlopres VL (amlodipine and valsartan tablets) combination therapy for effective
hypertension management
Cinmove OD (cinitapride sustained-release tablets) for gastrointestinal motility
problems and acid reflux
Mupinase (mupirocin ointment) for bacterial skin infections
Painil SP (paracetamol, aceclofenac and serratiopeptidase tablets) a triple drug
combination for pain and inflammation
Tugain (minoxidil foam) innovative foam formulation for hair loss in males.



18

EXPENSES


YEAR END
EXPENSES (Rs in
crores)
31st mar '09 4,103.12
31st mar '10 4,409.21
31st mar '11 5,107.94
31st mar '12 5,356.21
31st mar '13 6,372.08

















Expenses trend:

Year 2008-09:
The Company has invested about Rs.1900 crore in fixed assets. The construction work at
the Companys Rs.750 crore Special Economic Zone (SEZ) project for pharmaceutical
formulations, at Indore, Madhya Pradesh, began in full swing.

Year 2009-10:
The Company invested about Rs.250 crore in a new R&D and administration facility at
Vikhroli, Mumbai. Cipla also focused on setting up API facilities at Bengaluru for anti-cancer
0.00
1,000.00
2,000.00
3,000.00
4,000.00
5,000.00
6,000.00
7,000.00
31st mar
'09
31st mar
'10
31st mar
'11
31st mar
'12
31st mar
'13
4,103.12
4,409.21
5,107.94
5,356.21
6,372.08
EXPENSES (Rs in crores)


19

products. The Company upgraded its API facilities at Patalganga to scale-up production. The
total investment for these two projects was estimated to be about Rs.200 crore. In May 2010,
Cipla acquired an undertaking for Rs.30.64 crore, by way of a slump sale arrangement. The
undertaking had a manufacturing facility, approved by US FDA and WHO, for APIs and
intermediates. It is located at Kurkumbh (Pune district).

Year 2010-11:
In April 2010, the Company commenced commercial production of pharmaceutical
formulations at the Special Economic Zone (SEZ) project, at Indore, Madhya Pradesh. This
project includes facilities for the manufacture of aerosols, respules, liquid orals, pre-filled
syringes (PFS), nasal sprays, large volume parenterals (LVP), eye drops, tablets and capsules.
The total investment for this project is about Rs 900 crore.
The Company focused setting up API facilities at Bengaluru and Kurkumbh. It also
upgraded the API facilities at Patalganga. The total investment for these projects was about 400
crore.

Year 2011-12:
The Company is setting up additional R&D facilities at Vikhroli The Company is also
setting up API facilities at Patalganga, Bengaluru and Kurkumbh which are expected to be
completed in 2012-13. The total investment for these projects is estimated to be around Rs 500
crore.

Year 2012-13:
In order to expand and consolidate its Head Office operations, the Company has acquired
office space in Peninsula Business Park in Lower Parel, Mumbai for Rs 294 crore. The Company
completed the acquisition of 100% of share capital of Cipla Medpro in South Africa, at ZAR 10
per share amounting to a total investment of Rs 2,707 crore.





20

NET PROFITS


YEAR END
PROFITS (Rs in
crores)

31st mar '09 771.02

31st mar '10 1,082.59

31st mar '11 967.13

31st mar '12 1,141.30

31st mar '13 1,551.06


















Profits trend

Year 2008-09:
Technical fees fetched Rs.218 crore, marking a significant 42 per cent growth over the
previous year. However, forward contracts entered into to hedge the Companys foreign
exchange business had an impact on net profit growth.

Year 2009-10:
During the year, positive signs had begun to emerge in many countries, signifying
recovery from the general recession and economic crisis. The recovery of the Indian economy
seemed to be on track with GDP predicted to grow to higher levels. Industrial recovery also
gathered momentum in recent months. The Indian pharmaceutical industry maintained its
momentum and registered a growth of about 18 per cent, according to ORG-IMS statistics.
0.00
200.00
400.00
600.00
800.00
1,000.00
1,200.00
1,400.00
1,600.00
31st mar
'09
31st mar
'10
31st mar
'11
31st mar
'12
31st mar
'13
771.02
1,082.59
967.13
1,141.30
1,551.06
PROFITS (Rs in crores)


21


Year 2010-11:
Reported net profit for the year was Rs 967.13 crore compared to Rs 1,082.59 crore last
year. This year, there was a dip in operating margins of about 3 per cent, as a percentage of total
revenue. This was mainly due to lower technical fees (Rs 60 crore compared to Rs 150 crore last
year), as the development stage of several projects reached completion and the products were
either been commercially launched or were launched by the Companys partners. Another major
reason for the decline was that the Indore SEZ factory was in its first year of operations and it
still had to reach its optimum capacity levels. Besides, the Rupee has appreciated compared to
the US dollar which has in turn reduced earnings by about 4 per cent.

Year 2011-12:
Total exports increased by 10 percent during the year. Profit after tax of the Company
increased by 17 percent to Rs 1,141.30 crore from Rs 967.13 crore in the previous financial year.
During the year under review, operating margin (as a percentage of total revenue) increased by
about 2 percent. This was primarily due to reduction in material cost from 47 percent to 42
percent on account of improved realizations, reduction in input costs of certain product
categories and changes in the product mix.

Year 2012-13:
During the year under review, operating margin increased by 34 percent. This was
primarily due to reduction in material cost on account of improved realizations, changes in the
product mix and higher contribution of Escitalopram (a drug used for treating depression &
anxiety disorder) in the US. As a result, profit increased by more than 34 percent to Rs 1,551.06
crore from Rs 1,141.30 crore in the previous financial year.







22

6. Corporate Governance

6.1 BOARD OF DIRECTORS:
Executive Directors
Dr Y. K. Hamied*
Mr. M. K. Hamied
Mr. S. Radhakrishnan
Non-Executive/Non Independent Director
Dr. Y. K. Hamied*
Additional Director
Mr. Subhanu Saxena
(Mr. Subhanu Saxena was appointed as an Additional Director with effect from 16th July
2013 and holds office up to the date of the ensuing Annual General Meeting.)

Non-Executive/Independent Directors
Dr. H. R. Manchanda
Mr. Ramesh Shroff
Mr. V. C. Kotwal
Mr. M. R. Raghavan
Mr. Pankaj Patel
Dr. Ranjan Pai
*Retired as Managing Director effective 31st March 2013 and continues to be the Chairman in a
non-executive role effective 1st April 2013.


23

Seven Board Meetings were held during the financial year 2012-13. The dates on which
the meetings were held are: 10th May 2012; 7th June 2012; 31st July 2012; 17th August
2012; 5th November 2012; 6th February 2013 and 27th February 2013.
None of the Directors is related to each other except for Dr. Y.K. Hamied and Mr. M.K.
Hamied.
Shareholding of present Non-Executive Directors:
o As on 31st March 2013, Dr. H.R. Manchanda, Mr. Ramesh Shroff and Dr. Ranjan
Pai - Non-Executive Directors held 200000, 250 and 1010 equity shares
respectively in the share capital of the Company. None of the other Non-
Executive Directors hold any equity shares of the Company.

6.2 AUDIT COMMITTEE
The Audit Committee was constituted on 4th September 2000 in compliance with
the requirements of Clause 49 of the Listing Agreement. The Audit Committee
currently comprises: Mr. Ramesh Shroff - Chairman, Mr. M.R. Raghavan - Member
and Mr. S. Radhakrishnan - Member.
The Chief Financial Officer and other functional managers along with Internal
Auditors, Statutory Auditors and Cost Auditor are invited to attend the meetings of
the Audit Committee, as and when necessary. The Company Secretary acts as
Secretary to the Committee. The Audit Committee discharges such duties and
functions generally indicated in Clause 49 of the Listing Agreement with the Stock
Exchanges and also such other functions as may be specifically delegated to it by the
Board from time to time.
o Meetings and attendance during the financial year 2012-13:
The meetings of the Audit Committee were held on 10th May 2012; 7th June
2012; 31st July 2012; 5th November 2012 and 6th February 2013 during the financial
year 2012-13. Mr. M.R. Raghavan attended four meetings during the year. Mr.
Ramesh Shroff and Mr. S. Radhakrishnan attended all five meetings.






24

6.3 INVESTORS` GRIEVANCE COMMITTEE
o The Company has an Investors` Grievance Committee to attend to and address the
grievances of the Shareholders`/Investors` as and when received. The Committee
currently comprises: Dr. H.R. Manchanda - Chairman, Mr. M.K. Hamied -
Member and Mr. Pankaj Patel - Member.
o During the financial year 2012-13, the Committee met on 10th May 2012; 31st
July 2012; 5th November 2012 and 6th February 2013.
o Mr. Mital Sanghvi, Company Secretary acts as the Company`s Compliance
Officer. The Company attends to the shareholders`/investors`
grievances/correspondence expeditiously. During the year under review, 66
investor grievances were received and all of them have been resolved

6.4 GENERAL BODY MEETINGS
o The Annual General Meetings of the Company for the financial year 2009-10 and
2010-11 were held at Amar Gian Grover Auditorium, Lala Lajpat Rai Marg, Haji
Ali, Mumbai-400 034 at 3.00 p.m.
o The Annual General Meeting of the Company for the financial year 2011-12 was
held at Rama Watumull Auditorium, K.C. College, Dinshaw Wacha Road,
Churchgate, Mumbai-400 020 at 3.00 p.m.
o Special Resolution granting consent to the holding of office or place of profit by
Mr. Kamil Hamied, relative of Mr. M.K. Hamied, Managing Director of the
Company as member of management team was passed at the Annual General
Meeting of the Company held on 25th August 2010.
o Special Resolution granting consent to the holding of office or place of profit by
Mrs. Samina Vaziralli, relative of Mr. M.K. Hamied, Managing Director of the
Company as member of management team was passed at the Annual General
Meeting of the Company held on 25th August 2011.
o No resolution was approved by the members through postal ballot during the
financial year ended 31st March 2013. In April 2013, Company obtained approval
of the members through postal ballot for issuance of 10, 00,000 stock options to
Mr. Subhanu Saxena, Chief Executive Officer. Mr. B. Narasimhan, Practising
Company Secretary was appointed as Scrutinizer for conducting the postal ballot


25

process. The said special resolution for issuance of stock options to Mr. Subhanu
Saxena was passed with requisite majority.

6.5 MEANS OF COMMUNICATION
o The half-yearly/quarterly results are published in the newspapers (Mumbai
edition) and are not being sent to each household of shareholders.
o The results are usually published in the following newspapers: The Economic
Times; Navbharat Times; The Financial Express; Business Standard; The Hindu
Business Line; Sakaal.
o The annual/half-yearly/quarterly results and other official news releases are
displayed on the website of the Company - www.cipla.com
o The Management Discussion and Analysis Report forms part of the Directors`
Report.

















26

7. CSR Activities

o Being a good corporate citizen is an integral part of companys core value - caring
for life.
o The Cipla Palliative Care and Training Centre in Pune continue to provide holistic
care to terminally ill cancer patients and their families free of charge. Till now the
Centre has given treatment, comfort and solace to more than 7,700 patients. The
focus of the Cipla Palliative Care Centre is to reach out to more cancer patients
who need Palliative Care and to integrate Palliative medicine with curative
therapy.
o Cipla extend support to Manavya, a Pune-based organization which runs a home
for children with HIV infection. Manavya operates a mobile dispensary in villages
on the outskirts of Pune and it is fully funded by the company.
o On the occasion of Ciplas Platinum Jubilee in 2010, The Cipla Foundation by
contributing a sum of Rs. 5crore was set up. The Foundation aims to provide care
and financial support to people in need of healthcare and education in India.
o In a humanitarian effort to support cancer patients and relieve their burden, Cipla
made a breakthrough in reducing the prices of cancer drugs, thus making world-
class medicines accessible to patients in India.
o Cipla work closely with several reputed non-profit organizations such as Drugs
for Neglected Diseases Initiative, Medecins Sans Frontieres and the Clinton
Foundation in order to make drugs for malaria, HIV/AIDS and several neglected
diseases, available at affordable prices.
o Cipla also provide medicines to treat over a million poor, aged patients in slums
and villages through non-profit organizations. In addition, the company supports
several health, educational and welfare activities in communities surrounding the
companys factories, both directly and through our Charitable Trusts, by
providing healthcare education, improvement of community infrastructure,
scholarships, etc. This is part of our commitment to improve the quality of life for
these communities.




27

8. Conclusion
Thus we conclude by the statements that there has been a modest improvement in the
global financial condition ensuring reduced short term risks; however, the overall financial
climate has not picked up the momentum of recovery. From a regional outlook, the US
experienced a moderate growth, while the Eurozone continued to be in a vulnerable position
with high risks of banking system meltdown and unresolved debt crisis issues. The emerging
economies such as the BRIC countries did not pace up to last fiscal years growth; however,
other emerging nations including developing Asia showed promising growth. The data from
the Central Statistics Office affirmed the Indian GDP Growth rate at a decade lowest of 5%
for the fiscal year 2012-13 on account of weakness in investment, significant deceleration in
household consumption and sluggish exports. The declining growth warranted the
government to take immediate steps to curtail inflation and restore fiscal health. The Indian
economy is expected to gradually recover, with a projected 6.4% growth for 2013-14.
However, the financial climate will continue to face various challenges in the coming year.
Despite the fragile economic environment, the Indian pharmaceutical market grew at a
healthy 10%. This robustness in performance is a testimony to the measures taken in
improving healthcare standards. Factors that also bolstered the Indian pharmaceuticals
performance include strong exports to the US and the depreciation of the Rupee against the
Dollar. The positive growth is expected to be a long-term phenomenon in the industry,
promising a CAGR of 14-16% in the next 5 years.









28

9. References
www.crisilresearch.com
www.wikipedia.com
www.aceanalyser.com
www.cipla.com