Table of content
Emcure Pharmaceuticals Introduction
Emcure Pharmaceuticals Ltd is a global pharmaceutical company headquartered in Pune, India. Here are some key points about the company:
Founding and History: Emcure was founded in 1981 by Mr. Satish Mehta and Mr. Sunil Mehta. Over the years, it has grown into a significant player in the pharmaceutical industry.
Brief about Emcure Pharmaceuticals
Summary of the business of Emcure Pharmaceuticals
ndian pharmaceutical company engaged in developing, manufacturing and globally marketing a broad range of pharmaceutical products across several major therapeutic areas. We are a research and development driven company with a differentiated product portfolio that includes orals, injectables and biotherapeutics, which has enabled us to reach a range of target markets across over 70 countries, with a strong presence in India, Europe and Canada. In India, we are present across acute and chronic therapeutic areas, and our key therapeutic areas include gynaecology, cardiovascular, vitamins, minerals and nutrients, human immunodeficiency virus antivirals, blood-related and oncology/anti-neoplastic.
History of Emcure Pharmaceuticals
Company was originally incorporated as Emcure Pharmaceuticals Private Limited as a private limited incorporation dated April 16, 1981, issued by the Registrar of Companies, Maharashtra at Bombay.
Promoters & Board of Directors of Emcure Pharmaceuticals
Satish Ramanlal Mehta, Sunil Rajanikant Mehta, Namita Vikas Thapar and Samit Satish Mehta are the Promoters of Emcure Pharmaceuticals.
Board of directors of Emcure Pharmaceuticals
| Name | Designation |
| Berjis Minoo Desai | Chairman and Non – Executive Director |
| Satish Ramanlal Mehta | Managing Director and Chief Executive Officer |
| Sunil Rajanikant Mehta | Whole-time Director |
| Namita Vikas Thapar | Whole-time Director |
| Samit Satish Mehta | Whole-time Director |
| Mukund Keshao Gurjar | Whole-time Director |
| Samonnoi Banerjee(1) | Non-Executive Director |
| Palamadai SundararajanJayakumar | Independent Director |
| Vijay Keshav Gokhale | Independent Director |
| Vidya Rajiv Yeravdekar | Independent Director |
| Shailesh KripaluAyyangar | Independent Director |
Share Holding pattern of Emcure Pharmaceuticals
| Promoters | % holding |
| Satish Ramanlal Mehta | 41.85 |
| Sunil Rajanikant Mehta | 1.59 |
| Namita Vikas Thapar | 3.50 |
| Samit Satish Mehta | 7.48 |
| Total | 54.42% |
| Promoter Group | 28.79% |
| Public | 16.79% |
Qualitative Factors of Emcure Pharmaceuticals
- Well-placed to leverage our position in the domestic market.
- Demonstrated capabilities of building brands.
- Large, diversified and fast-growing product portfolio in international markets.
- Strong R&D capabilities driving differentiated portfolio of products.
- Extensive and diversified manufacturing capacity.
- Highly qualified, experienced and entrepreneurial management team and Board.
Industry Outlook
The Indian pharmaceutical industry is the world’s third largest by volume and was valued at ₹3.6-3.8 trillion (including bulk drugs and formulation exports) as of the Financial Year 2024. The industry can be broadly classified into formulations and bulk drugs. Formulations can further be divided into domestic formulations and export formulations, both having almost an equal share in the market. At present, low-value generic drugs constitute a large part of Indian exports. India accounts for approximately 3.5% of total drugs and medicines exported globally, and exports pharmaceuticals to more than 200 countries and territories, including highly regulated markets such as the US, the UK, the European Union and Canada. India has a complete ecosystem for the development and manufacturing of pharmaceuticals, with companies having state-of-the-art facilities and skilled/ technical manpower. Moreover, the country has several renowned pharmaceutical educational and research institutes and a robust ecosystem of allied industries.
Overview and outlook of Indian domestic formulation market
Domestic formulations market to grow at approximately 8-9% CAGR over the Financial Year 2024 to the Financial Year 2029
The Indian domestic formulation market has seen healthy growth in the recent times. As of the Financial Year 2024, the Indian domestic formulation market contributed to approximately 2% of the total global pharmaceutical market. Indian domestic formulations market (consumption) grew at a healthy rate at a CAGR of 8.5% from the Financial Year 2019 to the Financial Year 2024. The Indian domestic formulations segment (consumption) is expected to grow at a CAGR of 8-9% over the next five years from the Financial Year 2024 to reach approximately ₹2.9-3.0 trillion in the Financial Year 2029, aided by strong demand because of rising incidence of chronic diseases, increased awareness and access to quality healthcare.
Indian domestic formulation market by key therapies
Chronic segment is dominated by anti-diabetic and cardiovascular while anti-infectives and gastro-intestinal are the top therapeutic segments in acute segment
The Indian domestic formulation industry can be categorized into the chronic therapies segment and acute therapies segment. The chronic segment mainly comprises of anti-diabetic, cardiovascular, oncology etc. The acute segment mainly comprises of anti-infectives, gastro-intestinal, pain and analgesics etc.
As of the Financial Year 2024, chronic therapies and acute therapies constituted 53% and 47% of the total domestic formulation market, respectively. As of the Financial Year 2024, anti-diabetic and cardiovascular were some of the largest therapeutic segments catered by the Indian formulations industry in chronic therapies segment, together accounting for nearly one-fourth share of the Indian domestic formulation market. As the prevalence of chronic diseases have grown in the country, chronic diseases such as diabetes and cardiovascular disorders are more prevalent in the Indian population. Anti-diabetic constituted approximately 9% of all therapies catered by the Indian domestic formulation market. Similarly, cardiovascular constituted approximately 13% of all therapies catered by the Indian domestic formulation market. Sedentary lifestyles along with poor dietary habits have resulted in growing incidence of chronic diseases in Indian population, which is expected to drive the growth of therapies such as anti-diabetic and cardiovascular in the next few years.
In the acute segment, anti-infectives, gastro-intestinal and pain and analgesics are some of largest therapeutic areas catered in the Indian domestic formulation market. The chronic therapies segment in the Indian domestic formulation market is expected to register higher growth at a CAGR of 8.5-9.5% from the Financial Year 2024 to the Financial Year 2029 than the acute therapies segment which is expected to register a CAGR of 7.0-8.0% from the Financial Year 2024 to the Financial Year 2029.
Key therapy areas in domestic formulation market
| Therapy Name | share in total market financial year 2019 | share in total market financial year 2019 | share in total market financial year 2019 | CAGR (Financial Year 2019 to Financial 2024 | CAGR (Financial Year 2024 to Financial Year 2029P) |
| Cardiovascular | 12.4% | 13.2% | 14.1% | 9.7% | 10.0-11.0% |
| Anti-Infectives | 13.1% | 12.3% | 11.8% | 7.6% | 8-9% |
| Gastrointestinal | 11.4% | 11.7% | 12.3% | 9.6% | 10-11% |
| Anti-Diabetic | 9.2% | 9.1% | 11.1% | 9.0% | 13-14% |
| Vitamins / Minerals / Nutrients | 8.7% | 8.9% | 9.9% | 9.5% | 12-13% |
| Respiratory | 7.5% | 8.3% | 9.0% | 11.2% | 12-13% |
| Pain / Analgesics | 6.9% | 7.0% | 7.0% | 9.5% | 9-10% |
| Derma | 7.3% | 6.7% | 6.1% | 7.0% | 8-9% |
| Neuro / CNS | 6.1% | 6.1% | 6.7% | 9.0% | 11-12% |
| Gynecological | 5.1% | 5.1% | 5.1% | 8.9% | 10-11% |
Key growth drivers for the Indian domestic formulation industry
With improving life expectancy, the demographic of the country is also witnessing a change. As of 2011, nearly 8% of the Indian population was of 60 years or more, and this is expected to surge to 11% by 2026 and 13% by 2031.
According to the Report on Status of Elderly in Select States of India, published by the UNFPA in September 2023, chronic ailments such as arthritis, hypertension, diabetes, asthma, and heart diseases were commonplace among the elderly, over 30% of the elderly women and 28% of the men suffered from one chronic morbid condition and nearly one-fourth (across both sexes) suffered from more than two morbid conditions.
With the Indian population expected to grow to approximately 1.4 billion by 2026, it is imperative to ensure availability of healthcare services to this vast populace. This is expected to present substantial growth potential for the Indian domestic formulation industry.
Recent trends in Indian pharmaceutical industry
- Vertical integration among pharma players
- Vertical integration has been one of the key characteristics of pharmaceutical industry specially the generics pharmaceutical industry. Reason for vertical integration can be the better control over supply chain and drug development process especially for development of generics drugs. Early development and procurement of APIs has become more important to the profitability of downstream manufacturers in recent years. Having vertically integrated business model can help in better control over manufacturing and development of drugs and avoid sourcing complexities for APIs.
- New Drug Delivery Systems in injectables
- Injectables industry has seen new forms of drug delivery systems as well as emergence of self-administered injectables. Also, few technologies categorized as complex injectables have been proven to be better drug delivery systems like liposomes, nanoparticles, microemulsion, microparticles, micelles, PEGylation, etc. These are termed as New Drug Delivery Systems. The new developments require a wider range of development capabilities and manufacturing expertise to ensure reduced time to market. As a result pharmaceutical companies look for strategic, integrated value added partners, who can help deliver on various fronts, helping big pharma companies reduce complexities in supply chain.
- Indian pharmaceutical companies building specialty and complex generics capabilities
- With declining opportunity in the conventional generics segment and pricing pressures on the existing portfolios, it has become important for Indian players to look at high-value and high-margin drugs. Players have been developing niche products in order to weather the impact of pricing pressure. Number of niche product launches during last few years have been high. Companies are increasingly focusing on building capabilities in complex and niche molecules. These products are relatively untapped in comparison with conventional generics and offer huge realization as they are difficult to crack. Major players have increased their portfolio of complex generics and specialty products.
- Biosimilars presents opportunity for Indian players
- Biologics share in total patent expires by value is expected to be higher in next few years, signifying a tremendous opportunity for players. The top 10 biologics had a combined global sales worth over $65 billion. The top players have already started moving towards bio-similar.
- Further, even among the drugs where patents have already expired, the penetration of biosimilars is very low due to regulatory challenges and difficult procedural requirements of all-phase clinical trials. These expiries will present a lucrative opportunity for Indian players to launch biosimilar versions in regulated markets. Compared with a generic chemical molecule, such biopharmaceutical drugs can contribute higher revenue and margin realization since most products catering to critical chronic ailments. Moreover, there are relatively fewer players per product on account of the higher cost of development and the drugs can be more effective.
- Also in recent times there has been regulatory push for the guidelines in approving biosimilars in the regulated markets like USA and Europe. The US FDA announced the Biosimilars Action Plan in July 2018, to ease market access of biosimilars in the country. These factors are also expected to aid the growth in the biosimilars across globe.
Overview of opportunities with respect to collaboration between global multi-national companies (“MNCs”) and Indian players for established/new molecules
In-licensing
In the domestic formulations industry, in-licensing is the process by which intellectual property rights are transferred to the manufacturer of the drug by the licensor or the innovator under the agreed terms. The transfer of intellectual property rights can be related to a product or process. In the domestic formulations industry, usually licensor transfers the technology for development and manufacturing of the product. In this type of arrangement development costs are borne by the drug marketer. Manufacturers use the technology and manufacture the drug as per the requirements of the drug marketer. Drug manufacturers charge drug marketers the cost of goods sold plus the profit. Profitability in this arrangement depends on the operational and cost efficiencies of the drug manufacturers. Manufacturers also save on the drug development costs and can focus on manufacturing operations and efficiencies to increase the profitability.
| Indian Company | MNC Partner | Therapy area | Year |
| Sun Pharma | AstraZeneca | Diabetes | 2016 |
| MSD | Diabetes | 2018 | |
| Pharmazz Inc. | ischemic stroke | 2023 | |
| Bayer | Renal, Cardiovascular | 2024 | |
| Cipla | Novartis | Diabetes, Cardiovascular and Respiratory | 2018-2019 |
| Johnson and Johnson | Diabetes | 2018-2019 | |
| Roche | Oncology | 2018 and 2020 | |
| Merck | Anti-Viral | 2021 | |
| Lupin | Novartis | Cardiovascular and Respiratory | 2016 |
| Lilly | Diabetes | 2016-2017 and 2021 | |
| Boehringer Ingelheim | Diabetes | 2016 and 2018 | |
| LG | Oncology | 2014 | |
| Alvion Pharmaceuticals P.C. | Cardiovascular | 2022 | |
| Aurobindo | Gilead | Anti-Viral | 2011-2012* |
| MPP | Oncology | 2023 | |
| Emcure | Gilead | Anti-Viral | 2011-2012* |
| Merck | Anti-Viral | 2021 | |
| Roche | Oncology | 2012 | |
| Sanofi | Oncology | 2014 | |
| Viiv Healthcare | Anti-Viral | 2015* | |
| Laurus Labs | Gilead | Anti-Viral | 2011-2012* |
| Hetero | Gilead | Anti-Viral | 2011-2012* |
| Zydus Cadila | Gilead | Anti-Viral | 2011-2012* and 2021 |
| Dr. Reddy’s | Amgen | Oncology and Osteoporosis | 2016 |
| Pharmazz, Inc. | Hypovolemic shock | 2024 |
Overview of biologics market in India
Biopharmaceuticals or biologics are substances produced by manipulating living organisms via techniques such as genomics (mapping of genes), proteomics (study of structure of proteins), mutation analysis (change in the DNA sequence of a cell) and systems biology (study of complex interactions in a biological system) intended for human/animal treatment. Globally, these techniques are referred to as biotechnology, which in other words is a process technology or a drug discovery research tool. Biopharmaceuticals are drugs developed by applying biotechnology on living organisms / biologics for treatment of diseases.
Share of injectables drugs revenue for top 20 players in IPM
| Company Name | MATFinancial Year 2020 | MATFinancial Year 2021 | MATFinancial Year 2022 | MATFinancial Year 2023 | MATFinancial Year 2024 |
| Sun Pharma Industries Ltd. | 3.32% | 2.91% | 3.21% | 3.03% | 3.18% |
| Abbott India Ltd. | 25.17% | 24.98% | 25.75% | 24.71% | 24.43% |
| Mankind Pharma Ltd. | 3.36% | 3.06% | 3.10% | 2.99% | 3.35% |
| Cipla Ltd. | 13.44% | 17.18% | 16.37% | 10.44% | 11.38% |
| (Zydus Cadila) | 26.94% | 28.26% | 27.07% | 27.26% | 28.35% |
| Torrent Pharmaceuticals Ltd. | 1.98% | 1.83% | 2.16% | 2.41% | 2.29% |
| Alkem Laboratories Ltd. | 22.98% | 21.01% | 22.42% | 20.88% | 21.46% |
| Intas Pharmaceuticals Ltd. | 13.11% | 12.88% | 12.67% | 13.34% | 15.45% |
| Lupin Ltd. | 15.22% | 15.06% | 15.08% | 13.57% | 14.71% |
| Macleods Pharmaceuticals Ltd. | 11.15% | 11.09% | 15.16% | 15.01% | 17.09% |
| Aristo Pharmaceuticals Pvt. Ltd. | 35.49% | 33.68% | 37.63% | 33.29% | 35.19% |
| Dr. Reddy’s Laboratories Ltd. | 7.50% | 7.83% | 8.14% | 7.56% | 7.50% |
| Emcure Pharmaceuticals Ltd. | 28.64% | 29.02% | 30.60% | 27.01% | 27.47% |
| GlaxoSmithKline Pharmaceuticals Ltd. | 20.30% | 18.30% | 12.91% | 10.18% | 9.66% |
| USV Pvt. Ltd. | 1.11% | 1.10% | 1.30% | 1.12% | 1.41% |
| Glenmark Pharmaceuticals Ltd. | 5.27% | 5.12% | 5.95% | 6.99% | 8.48% |
| Ipca Laboratories Ltd. | 8.37% | 5.67% | 5.42% | 4.56% | 6.09% |
| Pfizer Ltd. | 26.37% | 22.11% | 22.36% | 22.05% | 15.74% |
| Micro Labs Ltd. | 4.36% | 4.06% | 3.85% | 4.75% | 5.32% |
| Sanofi India Ltd. | 45.94% | 48.15% | 44.76% | 40.15% | 39.47% |
Business Data of Emcure Pharmaceuticals
Verticals of Emcure Pharmaceuticals
- Generic products
- Branded generics
- Branded patented products
- APIs
Key brands of Emcure Pharmaceuticals
| MAT Brand Name | March 2020 | March 2021 | March 2022 | March 2023 | March 2024 |
| Orofer-XT | |||||
| Domestic Sales (₹ in millions) | 2,208.98 | 2,190.14 | 2,589.50 | 3,248.56 | 3,688.34 |
| Market share in molecule/subgroup (%) | 42.09% | 41.96% | 45.23% | 47.14% | 50.89% |
| Tenectase | |||||
| Domestic Sales (₹ in millions) | 140.23 | 155.31 | 272.06 | 442.72 | 487.46 |
| Market share in molecule/subgroup (%) | 17.76% | 17.26% | 21.10% | 29.81% | 35.94% |
| Maxtra | |||||
| Domestic Sales (₹ in millions) | 1,504.97 | 1,178.86 | 1,864.77 | 2,426.77 | 2,163.66 |
| Market share in molecule/subgroup (%) | 13.71% | 12.19% | 13.87% | 16.83% | 15.33% |
| Bevon | |||||
| Domestic Sales (₹ in millions) | 1,500.82 | 2,090.33 | 2,196.62 | 2,435.21 | 2,372.47 |
| Market share in molecule/subgroup (%) | 9.75% | 11.23% | 9.73% | 10.97% | 10.74% |
Market Share of Emcure Pharmaceuticals
| MAT | Therapeutic | Molecule Area Peers in India | millions | Rank | Market Share | |
| FerricCarboxymaltose | Gynecology | 6 | 2,597.76 | 1 | 58.56% | |
| S-Amlodipine | Cardiovascular | 2 | 1,513.55 | 1 | 87.84% | |
| Tenecteplase | Cardiovascular | 1 | 1,165.23 | 1 | 85.90% | |
| S-Metoprolol | Cardiovascular | 1 | 1,077.37 | 1 | 92.16% | |
| Ibutilide | Cardiovascular | 1 | 2.79 | 1 | 100.00% | |
| Treosulfan | Anti-neoplastics | 1 | 0.79 | 1 | 100.00% | |
| Ferrous Ascorbate | Gynecology | 1 | 1.93 | 1 | 100.00% | |
Product wise break-up of Emcure Pharmaceuticals
| 2023 | 2022 | 2021 | |
| Formulations: | |||
| Generic products | 40.13% | 34.24% | 31.20% |
| Branded generics | 52.84% | 56.54% | 60.11% |
| Branded patented products | 2.76% | 3.86% | 4.57% |
| APIs | 4.27% | 5.36% | 4.12% |
| Revenue from sale of products | 100.00% | 100.00% | 100.00% |
Domestic Business of Emcure Pharmaceuticals
| Therapeutic Area | MAT Financial Year 2024 | As a Percentage of Domestic Sales | Market Rank in Covered Markets | Market Share in Covered Markets | Share of Covered Markets in IPM |
| (₹ in millions) | (%) | (%) | (%) | ||
| Gynecology | 13,274.35 | 24.09% | 1 | 26.58% | 50.91% |
| Cardiovascular | 8,652.83 | 15.70% | 4 | 5.85% | 56.76% |
| Anti-infectives | 6,046.70 | 10.97% | 9 | 3.35% | 74.04% |
| Vitamins, minerals and nutrients | 4,840.57 | 8.79% | 5 | 5.38% | 51.87% |
| HIV antivirals | 3,772.02 | 6.85% | 1 | 63.45% | 98.85% |
| Respiratory | 3,500.76 | 6.35% | 6 | 5.01% | 43.61% |
| Gastrointestinal | 3,498.34 | 6.35% | 13 | 2.64% | 57.21% |
| Pain and analgesics | 3,019.61 | 5.48% | 11 | 3.36% | 63.85% |
| Blood-related | 2,114.16 | 3.84% | 1 | 13.79% | 58.38% |
| Oncology/Anti-neoplastics | 2,457.39 | 4.46% | 3 | 10.19% | 53.78% |
| Anti-diabetic | 1,421.44 | 2.58% | 21 | 1.29% | 61.57% |
| Hormones | 976.13 | 1.77% | 3 | 12.06% | 24.11% |
| Neurology/CNS | 697.39 | 1.27% | 16 | 1.23% | 46.67% |
| Others(6) | 825.17 | 1.50% | – | 1.33% | – |
| Total | 55,096.85 | 100.00% | 4 | 5.28% | 52.66% |
Revenue contribution from Geography presence of Emcure Pharmaceuticals
(₹ in millions, except percentages)
| 2024 | 2023 | 2022 | |
| Sales in India | 48.28% | 53.16% | 54.73% |
| Sales outside India | 51.72% | 46.84% | 45.27% |
| Europe | 21.38% | 19.84% | 15.32% |
| North America | 13.94% | 12.19% | 11.60% |
| Other continents | 16.40% | 14.81% | 18.35% |
| Total | 100.00% | 100.00% | 100.00% |
Customer dependency of Emcure Pharmaceuticals
diverse customer base of over 5,000 customers, comprising distributors, other pharmaceutical companies and healthcare providers who in turn sell products to patients. Company typically conduct business on a purchase order basis, but may from time to time also enter into long-term agreements which set forth annual volumes of specific products to be delivered. For the Financial Years 2024, 2023 and 2022, no single customer contributed to more than 5.00% of total revenue from operations.
Competition for Emcure Pharmaceuticals
competition varies by market, therapeutic area and product category, and within each category, upon dosage strengths and drug delivery. Our principal competitors within India include leading Indian pharmaceutical companies such as, among others, Dr. Reddy’s Laboratories Limited, Cipla Limited, Alkem Laboratories Limited, Torrent Pharmaceuticals Limited, Mankind Pharma Limited, Abbott India Limited and J.B. Chemicals & Pharmaceuticals Limited, as well as multi-national pharmaceutical companies who operate in the IPM in similar therapeutic areas. Our principal competitors in the international markets that we operate include regional companies and multinationals.
To stay ahead of our competitors, we regularly upgrade our equipment and technology for our manufacturing facilities. We aim to keep our costs of production low to maintain our competitive advantage and our profit margins. We continuously seek new product registrations, marketing authorizations and other approvals from regulatory authorities to increase our product offerings.
Peer companies comparison
(in ₹ million)
| Name of the Company | Revenue from operations (in ₹ million) | Face value per equityshare (₹) | Closing price onJune 21, 2024(₹) per equity share | P/E (x)(2) | EPS(Basic) (₹ per share)(1) | EPS(Dilute d) (₹ per share)(1) | RoN W (%)(3) | Net Asset Value “NAV” (₹in million)(4) | Net Asset Value “NAV”(₹ per share) |
| Emcure Pharmaceutical s Limited | 66,582.51 | 10.00 | 1008 | 36.60 | 27.54 | 27.54 | 16.87 | 29,522.83 | 163.22 |
| Listed peers | |||||||||
| Dr. Reddy’sLaboratories Limited | 280,111.00 | 5.00 | 6,000.50 | 17.93 | 335.22 | 334.59 | 19.74 | 282,548.00 | 1,693.75 |
| Cipla Limited | 257,740.90 | 2.00 | 1,535.15 | 30.10 | 51.05 | 51.01 | 15.43 | 267,064.30 | 330.78 |
| AlkemLaboratories Limited | 126,675.80 | 2.00 | 5,085.00 | 33.86 | 150.19 | 150.19 | 17.41 | 103,120.60 | 862.46 |
| Torrent Pharmaceutical s Limited | 107,280.00 | 5.00 | 2,825.60 | 57.74 | 48.94 | 48.94 | 24.15 | 68,560.00 | 202.57 |
| Mankind Pharma Limited | 103,347.75 | 1.00 | 2,160.00 | 45.30 | 47.75 | 47.68 | 20.43 | 93,630.88 | 233.73 |
| Abbott India Limited | 58,489.10 | 10.00 | 26,811.00 | 47.43 | 565.28 | 565.28 | 32.48 | 36,988.90 | 1,740.71 |
| J. B. Chemicals & Pharmaceuticals Limited | 34,841.80 | 1.00 | 1,759.75 | 50.49 | 35.66 | 34.85 | 18.90 | 29,233.30 | 188.37 |
Subsidiary companies
| Category | Number of Subsidiaries | Subsidiary |
| Direct Subsidiaries (Indian) | 2 | Zuventus Healthcare Limited; and |
| Gennova Biopharmaceuticals Limited | ||
| Direct Subsidiaries (Foreign) | 13 | Emcure Nigeria Limited; |
| Emcure Pharmaceuticals Mena FZ-LLC; | ||
| Emcure Pharmaceuticals South Africa (Pty) Limited; | ||
| Emcure Brasil Farmacêutica Ltda; | ||
| Emcure Pharma UK Ltd; | ||
| Emcure Pharma Peru S.A.C; | ||
| Emcure Pharma Mexico S.A. DE C.V.; | ||
| Marcan Pharmaceuticals Inc.; | ||
| Emcure Pharmaceuticals Pty Ltd.; | ||
| Emcure Pharma Chile SpA; | ||
| Lazor Pharmaceuticals Limited; | ||
| Emcure Pharma Philippines Inc.; and | ||
| Emcure Pharmaceuticals Dominicana S.A.S | ||
| Indirect Subsidiaries | 7 | Tillomed Pharma GmbH; |
| Tillomed Laboratories Limited; | ||
| Laboratorios Tillomed Spain SLU; | ||
| Tillomed Italia SRL; | ||
| Tillomed France SAS; | ||
| Tillomed Malta Limited; and | ||
| Mantra Pharma Inc. |
Business risk factors
- Any disruptions to the supply, or increases in the pricing, of the raw materials and finished products that we outsource, may adversely affect the supply and pricing of our products and, in turn, adversely affect our business, cash flows, financial condition and results of operations.
| For the Financial Year ended March 31, | |||
| 2024 | 2023 | 2022 | |
| Raw materials and finished goods costs attributable to imports (₹ in millions) | 6,849.29 | 5,104.54 | 7,024.45 |
| As a percentage of total raw material and finished goods costs (%) | 26.30% | 23.38% | 27.86% |
| As a percentage of revenue from operations (%) | 10.29% | 8.53% | 12.00% |
| For the Financial Year ended March 31, | |||
| 2024 | 2023 | 2022 | |
| China (including Hong Kong) | |||
| Raw materials and finished goods imported (₹ in millions) | 1,064.47 | 1,111.08 | 2,730.67 |
| As a percentage of total raw material and finished goods import costs (%) | 15.54% | 21.77% | 38.87% |
| As a percentage of revenue from operations (%) | 1.64% | 1.86% | 4.66% |
| Spain | |||
| Raw materials and finished goods imported (₹ in millions) | 908.12 | 334.36 | 545.75 |
| As a percentage of total raw material and finished goods import costs (%) | 13.26% | 6.55% | 7.77% |
| As a percentage of revenue from operations (%) | 1.36% | 0.56% | 0.93% |
| Germany | |||
| Raw materials and finished goods imported (₹ in millions) | 477.45 | 759.69 | 825.28 |
| As a percentage of total raw material and finished goods import costs (%) | 6.97% | 14.88% | 11.75% |
| As a percentage of revenue from operations (%) | 0.72% | 1.27% | 1.41% |
- have experienced negative cash and cash equivalents in the past and may continue to do so in the future.
- Although company have de-merged U.S. operations, company have ongoing civil proceedings in the United States, including class-action antitrust cases and complaints filed by U.S. state attorneys-general, which may subject us to significant losses and liabilities.
- success depends on our ability to develop and commercialize products in a timely manner. If our R&D efforts do not succeed or the products we commercialize do not perform as expected, this may hinder the introduction of new products, and could adversely affect our business, financial condition and results of operations.
| For the Financial Year ended March 31, | |||
| 2024 | 2023 | 2022 | |
| R&D expenditure (₹ in millions) | 3,099.89 | 3,022.05 | 3,404.49 |
| As a percentage of revenue from operations (%) | 4.66% | 5.05% | 5.81% |
Financials
Key performance indicators
(in ₹ million, unless otherwise indicated)
| Particulars | For the Financial Year ended March 31 | ||
| 2024 | 2023 | 2022 | |
| Percentage of revenue from operations attributable to sales in India (in %) | 48.28 | 53.16 | 54.73 |
| Percentage of revenue from operations attributable to sales outside India (in %) | 51.72 | 46.84 | 45.27 |
| EBITDA | 12,767.82 | 12,209.41 | 13,933.81 |
| EBITDA Margin (in %) | 19.01 | 20.24 | 23.54 |
| PAT | 5,275.75 | 5,618.45 | 7,025.56 |
| PAT Margin | 7.86 | 9.31 | 11.81 |
| RoCE (in %) | 19.37 | 22.01 | 29.69 |
Balance Sheet
(in ₹ million)
| Particulars | March 31,2024 | March 31,2023 | March 31,2022 |
| Assets | |||
| Total Non-current Assets | 35,462.48 | 28,366.19 | 26,393.70 |
| Total Current Assets | 42,599.15 | 38,359.12 | 34,240.99 |
| Total Assets | 78,061.63 | 66,725.31 | 60,634.69 |
| EQUITY AND LIABILITIES | |||
| Total Equity | 31,217.65 | 26,496.60 | 21,141.42 |
| Total Non-Current Liabilities | 14,739.25 | 10,036.79 | 9,844.98 |
| Total Current Liabilities | 32,104.73 | 30,191.92 | 29,648.29 |
| Total Liabilities | 46,843.98 | 40,228.71 | 39,493.27 |
| Total Equity and Liabilities | 78,061.63 | 66,725.31 | 60,634.69 |
Profit & Loss
(₹ in millions, except percentages)
| 2024 | 2023 | 2022 | |
| Revenue from operations | 66,582.51 | 59,858.11 | 58,553.87 |
| Percentage of revenue from operations attributable to sales in India | 48.28% | 53.16% | 54.73% |
| Percentage of revenue from operations attributable to sales outside India | 51.72% | 46.84% | 45.27% |
| Profit for the year | 5,275.75 | 5,618.45 | 7,025.56 |
| PAT Margin | 7.86% | 9.31% | 11.87% |
| EBITDA | 12,767.82 | 12,209.41 | 13,933.81 |
| EBITDA Margin | 19.01% | 20.24% | 23.54% |
Cash Flow
(₹ in millions)
| For the Financial Year ended March 31, | |||
| 2024 | 2023 | 2022 | |
| Net cash generated from operating activities | 10,972.40 | 7,468.53 | 7,682.07 |
| Net cash used in investing activities | (7,125.12) | (4,676.85) | (7,887.91) |
| Net cash used in financing activities | (1,642.06) | (1,453.97) | (1,518.51) |
| Net increase/(decrease) in cash and cash equivalents | 2,205.22 | 1,337.71 | (1,724.35) |
| Cash and cash equivalent as at March 31 | (1,745.29) | (3,081.72) | (3,500.42) |
| Less: Transferred pursuant to composite scheme of arrangement | – | – | 2,141.19 |
| Effect of exchange rate fluctuations on cash and cash equivalent | (20.02) | (1.28) | 1.86 |
| Total cash and cash equivalent | 439.91 | (1,745.29) | (3,081.72) |
Capital structure
(in ₹ million, except ratios)
| Particulars | Pre-Offer as at March 31, 2024 |
| Total borrowings: | |
| Non-current borrowings | 7,665.95 |
| Current borrowings | 13,207.16 |
| Non-current lease liabilities | 2,157.41 |
| Current lease liabilities | 319.19 |
| Total borrowings | 23,349.71 |
| Total equity: | |
| Equity share capital | 1,811.52 |
| Other equity | 27,711.31 |
| Total equity attributable to the owners of the Company | 29,522.83 |
| Ratios | 0.79 |
SWOT
- Strengths:
- Diverse Therapeutic Areas: Emcure has a presence in major therapeutic areas, including cardiology, pain management, HIV, gynecology, anti-infectives, and more.
- Branded Generics: The company focuses on branded generic products, which can provide a competitive edge.
- Global Operations: Emcure operates in several countries, including Brazil, Dubai, South Africa, Singapore, and Nigeria.
- API Manufacturing: It produces active pharmaceutical ingredients (APIs) for its own products and other manufacturers.
- Weaknesses:
- Dependency on Generics: Relying heavily on generics may expose Emcure to pricing pressures and competition.
- Limited Pipeline: A narrow product pipeline could hinder long-term growth.
- Regulatory Challenges: Compliance with diverse global regulations can be complex.
- Opportunities:
- Emerging Markets: Expanding further into emerging markets offers growth potential.
- Research and Development: Investing in R&D can lead to innovative products.
- Strategic Alliances: Collaborations with other pharmaceutical companies can enhance market reach.
- Threats:
- Competition: Intense competition from other pharmaceutical players.
- Regulatory Changes: Evolving regulations impact product approvals and marketing.
- Supply Chain Risks: Dependence on APIs and global supply chains poses risks.
IPO Details
Emcure Pharmaceuticals IPO Details
| Detail | Information |
|---|---|
| Issue Size | ₹1,952.03 Crore |
| Price Band | ₹960 – ₹1,008 per share |
| Fresh Issue | ₹800 Crore |
| Offer for Sale (OFS) | ₹1,152.03 Crore |
| Issue Period | July 3, 2024 – July 5, 2024 |
| Lot Size | 14 Shares |
| Listing Date | July 10, 2024 (Tentative) |
| Status | Upcoming (As of July 2, 2024) |
Ipo funds utilisation for
(in ₹ million)
| Particulars | Amount |
| Repayment and/or prepayment of all or a portion of certain outstanding borrowings availed by our Company | 6,000.00 |
| General corporate purposes |
Litigation involved
Gray Market Premium
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