Table of content
Akums Drugs and Pharmaceuticals Limited Introduction
Akums Drugs and Pharmaceuticals Limited is a prominent Indian pharmaceutical company. Established in 2004, it has become a key player in the healthcare industry. The company specializes in manufacturing and marketing a wide range of pharmaceutical products, including generic medicines, over-the-counter drugs, and active pharmaceutical ingredients (APIs). Akums is known for its commitment to quality, innovation, and ethical practices.
Brief about Akums Drugs andPharmaceuticals Limited
Summary of the business
Akums Drugs and Pharmaceuticals Limited is a pharmaceutical contract development and manufacturing organization offering a comprehensive range of pharmaceutical products and services in India and overseas. Akums Drugs and Pharmaceuticals Limited is also engaged in the sale of branded pharmaceutical formulations and manufacturing of active pharmaceutical ingredients. Some of our other services include formulation research and development, preparation and filing of regulatory dossiers in the Indian and global markets, and other testing services. Some of our manufacturing units have been accredited by various global regulatory agencies such as the European Good Manufacturing Practice, the World Health Organization Good Manufacturing Practice and the United States National Sanitation Foundation.
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History
Akums Drugs and Pharmaceuticals Limited Company was incorporated as a public limited company under the Companies Act, 1956 as ‘Akums Drugs and Pharmaceuticals Limited’, pursuant to a certificate of incorporation dated April 19, 2004 issued by the RoC. Our Company received a certificate for commencement of business issued by the RoC dated May 13, 2004.
Promoters & Board of Directors
- Sanjeev Jain, Sandeep Jain, and Akums Master Trust are Promoters of Akums Drugs and Pharmaceuticals Limited
Board of directors
| Name | Designation |
| Sanjeev Jain | Managing Director |
| Sandeep Jain | Managing Director |
| Sanjay Sinha | Whole Time Director |
| Sunil Kumar Thakur | Non-Executive Director, Nominee of Ruby QC Investment Holdings Pvt. Ltd. |
| Kewal Kundanlal Handa | Independent Director |
| Matangi Gowrishankar | Independent Director |
| Nand Lal Kalra | Independent Director |
| Satwinder Singh | Independent Director |
Share Holding pattern
| Name of the shareholder | % of Holding |
| Promoters | |
| Sandeep Jain | 19.44 |
| Sanjeev Jain | 19.43 |
| Akums Master Trust | 43.57 |
| Promoters Holding | 82.44 |
| Promoter Group | |
| Arushi Jain | 0.02 |
| Lata Jain | 0.01 |
| Umang Jain | Negligible |
| Kanishk Jain | Negligible |
| Manan Jain | Negligible |
| Promoter Group Holding | 0.04 |
| Public | 17.52 |
Qualitative Factors
- Largest India-focused CDMO serving the Indian domestic pharmaceutical industry
- Diverse client base with longstanding CDMO relationships
- Large and rapidly growing R&D capabilities across our product portfolio
- Strategic presence across the pharmaceutical value chain
- Experienced and entrepreneurial management team with a proven track record and marquee healthcare focused PE investor.
Strategy
- Leverage our leadership position to continue to increase our market share and consolidate our position in the CDMO market
- Sustaining R&D for product development across therapies and dosage forms
- Grow our domestic formulations business
- Expanding our global presence through strategic initiatives
- Scale our API business
Industry Outlook
The enviable growth of the Indian pharmaceutical market (IPM) is attributable to the government’s prioritization of the segment, increasing chronic disease incidence, availability of affordable but innovative generics, and improved access to healthcare nationwide.
With a contribution of nearly 1.3%9 to India’s GDP, IPM registered a 9.0% CAGR in the last five years and a forecast of 9.6% for the next five years. Indian pharmaceutical market is among the fastest-growing pharmaceutical markets in the world, witnessing a value increase from INR 1,317.5 billion (USD 19.0 billion) in FY19 to INR 2,852.6 billion (USD 34.2 billion) in FY28.
OUTLOOK BY THERAPY AREAS
The top 3 therapy areas of Systemic Anti-infectives, Central Nervous System (CNS), and Gastrointestinal contributed to 47.5% of the market in FY24. Gastrointestinal (GI), Genitourinary (GU), and CVS segments are expected to grow fastest at a CAGR of ~10-11% between FY24 and FY28.
In line with the disease epidemiology described in the above sections, in FY24, GI, systemic anti-infectives, CNS, CVS, and AM&T are the top 5 therapy areas, contributing 20.4%, 13.8%, 13.3%, 13.2%, and 10.7%, respectively to the IPM. These segments are expected to grow at a 7-11% CAGR between FY24 and FY28. Aside from these segments, GU and dermatology are also anticipated to grow at a CAGR of 11.2% and 8.0%, respectively, between FY24 and FY28.
OUTLOOK BY DOSAGE FORMS
Contrary to global trends, but in line with the Indian market dynamics, nearly 70.0% of the market is commanded by oral solids as opposed to the global average of 42.3%; the fastest growth is expected in inhalation and liquid formulations.
Oral solids have dominated the Indian pharma market, owing to ease of administration, patient comfort, flexibility in dosing, and ease of manufacturing- lower manufacturing costs translating to overall lower costs. Moreover, the market will continue to grow in the country, given the innovations in oral solid formulations ranging from modified release formats to orally disintegrating tablets, lipid-based formulations, coated particles, and multi-particulate systems, to name a few. Consequently, the oral solids segment is expected to grow at a CAGR of 9.6%, from INR 1,379.9 billion (USD 16.6 billion) in FY24 to INR 1,989.8 billion (USD 23.9 billion) by FY28.
At the same time, other formulations like injectables, inhalations, and liquids are also witnessing rapid growth. While injectables are preferred for fast-acting and precise dosing characteristics, topical formulations and inhalation products are preferred for their localized and disease-specific action. Oral liquids have also gained popularity in pediatric and geriatric formulations, while implants are also beginning to gain traction in the country. As a result, the “others” segment, including liquids, implants, sprays, inhalation products, etc., is expected to contribute the highest growth of 10.7% between FY24 and FY28. In tandem, the injectables segment, which was pegged at INR 271.6 billion (USD 3.3 billion), is expected to grow at a CAGR of 8.0% from FY24 to FY28 to reach INR 369.6 billion (USD 4.4 billion) in FY28.
IPM Competitive Landscape
IPM is dominated by Indian companies, accounting for more than 80% of the market share; moreover, the market is heavily concentrated, with 77% of the share residing with the leading 30 companies.
The domestic formulations market is highly consolidated, with the leading 30 companies (based on sales in FY24) contributing 77.2% of the market in FY24. These leading 30 companies have outmatched the growth of the total pharma market, experiencing a 9.5% CAGR between FY19 and FY24. During FY24, Akums Drugs and Pharmaceuticals Ltd. (Akums), one of India’s largest CDMO service providers, manufactured formulations for all 10 leading pharmaceutical companies and 26 of the 30 leading pharmaceutical companies in India in terms of sales. Amongst the leading 30 companies, 26 are India-headquartered, whereas only four are multinational. Overall, among the total of 866 companies, Indian companies (829 companies), which accounted for 83.8% of the sales share in FY24, also outpaced total segment growth, enjoying 9.0% (in absolute INR terms) CAGR between FY19 and FY24. MNCs, however, experienced a slower growth of 6.0% (in absolute INR terms) during the same period, with many clocking a decline as they handed over their portfolios to domestic companies. While several Indian companies focus on both global and domestic markets, some companies, such as J. B. Chemicals & Pharmaceuticals Limited (JB Chemicals) and Mankind Pharma Ltd. (Mankind Pharma), have derived strong sales growth of 8.6% and 13.0% between FY19 and FY24, respectively, while focusing largely on the domestic market. Hence, with Indian pharma companies demonstrating accelerated growth, they will increasingly revert to CDMOs with large-scale operations, like Akums, to meet their growing production demands.
| Exhibit 2.9A: Financial Analysis of Select IPM Companies, FY23, INR Million | |||||
| Parameter/ Company | Torrent Pharma | Alkem Laboratories | Eris Lifesciences Ltd. | JB Chemicals | Mankind Pharma |
| Operating Revenue | 96,201.50 | 1,15,992.60 | 16,851.49 | 31,492.82 | 87,494.33 |
| Total Revenue | 96,652.90 | 1,18,153.40 | 16,963.02 | 31,592.22 | 88,779.99 |
| Total Revenue CAGR (FY19 – FY23) | 5.75% | 12.24% | 13.73% | 17.02% | 14.11% |
| EBITDA | 28,871.90 | 18,255.30 | 5,478.99 | 7,056.94 | 20,292.06 |
| EBIT | 21,806.00 | 15,151.10 | 4,308.11 | 5,912.88 | 17,032.87 |
| PAT | 12,452.30 | 10,068.10 | 3,741.60 | 4,100.08 | 13,096.80 |
| PAT CAGR (FY19 -FY23) | 29.98% | 7.27% | 6.50% | 20.65% | 7.83% |
| ROCE | 20.01% | 19.26% | 14.40% | 20.14% | 23.51% |
| Return on Equity | 20.09% | 10.67% | 16.85% | 16.53% | 17.18% |
| Return on Net Worth | 20.09% | 10.88% | 17.40% | 16.52% | 17.24% |
| EBITDA Margin | 29.87% | 15.45% | 32.30% | 22.34% | 22.86% |
| EBIT Margin | 22.56% | 12.82% | 25.40% | 18.72% | 19.19% |
| PAT Margin | 12.88% | 8.52% | 22.06% | 12.98% | 14.75% |
| Interest Coverage | 6.54 | 14.11 | 16.46 | 16.4 | 38.3 |
| R&D Expense/Operating Revenue | 5.36% | 4.65% | – | 1.13% | 2.15% |
| Fixed Asset Turnover Ratio | 1.16 | 4.72 | 0.76 | 1.68 | 1.88 |
| Debt/Equity Ratio | 0.85 | 0.14 | 0.38 | 0.22 | 0.02 |
| NAV/share (INR) | 183.13 | 756.52 | 161.49 | 320.77 | 185.61 |
| EPS diluted (INR) | 36.79 | 82.31 | 28.07 | 52.34 | 32 |
| EPS basic (INR) | 36.79 | 82.31 | 28.1 | 53 | 32 |
| Face Value (INR) | 5 | 2 | 10 | 2 | 1 |
GLOBAL & INDIA API INDUSTRY OVERVIEW
The growth in the formulations market also translates into corresponding growth in the API market. In contrast, the global API market is expected to grow at a CAGR of 7.7% between 2023-2027, and the Indian API market is expected to grow at 13.9% in the same period.
The Active Pharmaceutical Ingredient (API) serves as the biologically active core of a drug, inducing specific therapeutic effects, from pharmacological actions to disease diagnosis and prevention. A precisely formulated API is pivotal for ensuring the safety and efficacy of drugs, with the drug’s potency directly linked to the API quantity.
The demand for pharmaceutical products corresponds directly to API sales, and as this demand grows, so does the need for APIs. As disease patterns shift from acute to chronic and translate into high drug volume consumption, the access to healthcare facilities and affordable medicine increases, along with an increase in the purchasing power of the middle class in the country; the growth of the API industry will follow suit. Moreover, with the increasing adoption of novel drugs, including biologics, coupled with the volume growth of the generics industry, the segment is expected to grow steadily. Notably, there is a rising preference for complex APIs like Highly Potent Active Pharmaceutical Ingredients (HPAPIs) or those derived from fermentation, contributing to improved drug efficacy and increasing production costs. For instance, one of the key fermentation- based antibiotic APIs- cephalosporin, is estimated to be worth USD 2.1 billion in 2023 and forecasted to reach a size of ~USD 2.8 billion by 2028, with a CAGR of 5-7% during the forecast period. In India, too, cephalosporins comprise 40-45% of the anti-infectives segment19, with a limited number of manufacturers (4 to 5 players). Thus, expanding high-value APIs will result in an API market growing faster than the pharmaceutical market (by value).
ROLE OF INDIA IN GLOBAL SUPPLY OF API AND FORMULATIONS
While the growth in the domestic market is undeterred, India has gained new strides in the export market, particularly since emerging as a reliable supplier during the pandemic.
India has been aptly crowned Pharmacy of the World, particularly for its manufacturing prowess and contributions to the global pharma sector. India commands the position of being the largest provider of generic medicines worldwide, holding a 20% share in global supply by volume, encompassing a diverse range of 60,000 generic brands across 60 therapeutic categories. The industry’s global reach is underscored by the fact that India exports pharmaceuticals to over 200 countries, supplying over 50% of Africa’s generic medicine needs, almost 40% of the generic demand in the US, and about 25% of all medicines in the UK.
With a robust infrastructure, India boasts the highest number of US-FDA-compliant Pharma plants outside the US, housing over 3,000 pharmaceutical companies with an extensive network of over 10,500 manufacturing facilities. The sector is further supported by a highly skilled resource pool, including 500 Active Pharmaceutical Ingredient (API) manufacturers contributing approximately 5.2% to the global API Industry by value20. The total pharmaceutical exports (API + FDF) for 2023 (FY24) reached USD 25.6 billion, highlighting the sector’s global competitiveness.
API and FDF Exports from India
While FDF exports have grown by nearly 9% between 2017 and 2023, with strong growth in regulated markets, APIs have grown at 5% on the back of semi-regulated/ unregulated markets.
Globally, India is the 12th largest exporter of pharmaceutical formulations by value21. Formulation exports from India have grown from USD 12.6 billion in 2017 to USD 20.9 billion in 2023 and are expected to grow to USD 33.2 billion by 2027 at a CAGR of 12.3% from 2023 to 2027. Regulated markets account for more than 50% of the share by value, partly because of the comparatively high value per unit. In 2017, regulated markets contributed USD 6.5 billion to total exports and grew at a CAGR of 10.6% from 2017 to 2023. Formulation exports to unregulated and semi-regulated markets were valued at USD 9.0 billion in 2023, up from USD 6.1 billion in 2017.
CDMO INDUSTRY OVERVIEW
CHALLENGES FACED BY GLOBAL AND INDIAN PHARMA COMPANIES AND INCENTIVES FOR OUTSOURCING
Even with a strong growth trajectory, pharma companies face multiple challenges, encouraging companies to seek external partnerships with specialists like CDMOs, preferably with cost-efficient Indian CDMOs.
The pharmaceutical industry is characterized by significant challenges, notably the high capital expenditure required to establish and maintain sizeable and diverse manufacturing units, the R&D expertise required to develop an extensive product portfolio, the need for technical know-how and trained manpower to manufacture formulations and consistent quality control, pricing pressure on finished drug formulations, disruptions within the supply chain, and the long-drawn regulatory and client approval and inspection processes, among others. The substantial need for capital and maintaining strong client relationships acts as a formidable hurdle for pharmaceutical companies.
Business Data
Verticals
- CDMO
- Branded and generic formulations
- API
Product wise break-up
| Business | 2024 | 2023 | 2022 | |||
| (₹ in millions) | % of revenue | (₹ in millions) | % of revenue | (₹ in millions) | % of revenue | |
| CDMO | 32,663.48 | 78.18 | 27,230.08 | 74.5 | 26,610.96 | 72.47 |
| Branded and generic formulations | 6,993.18 | 16.74 | 7,545.63 | 20.65 | 9,014.76 | 24.55 |
| API | 2,125.16 | 5.09 | 1,772.49 | 4.85 | 1,093.21 | 2.98 |
| Revenue from operations | 41,781.82 | 100 | 36,548.20 | 100 | 36,718.93 | 100 |
Customer dependency
| Particulars | 2024 | 2023 | 2022 | |||
| (₹ in millions) | % of revenue from operations from CDMO business | (₹ in millions) | % of revenue from operations from CDMO business | (₹ in millions) | % of revenue from operations from CDMO business | |
| Ten largest clients of our CDMO business | 12,841.14 | 39.31 | 10,597.55 | 38.92 | 10,982.66 | 41.27 |
Supplier dependency
| Particulars | 2024 | 2023 | 2022 | |||
| (₹ in millions) | % of total purchases of raw materials | (₹ in millions) | % of total purchases of raw materials | (₹ in millions) | % of total purchases of raw materials | |
| Domestic sourcing | 18,331.71 | 88.11 | 17,456.85 | 89.77 | 21,461.70 | 88.98 |
| Direct imports | 2,473.08 | 11.89 | 1,988.80 | 10.23 | 2,658.04 | 11.02 |
| Total purchases of raw materials | 20,804.79 | 100 | 19,445.65 | 100 | 24,119.74 | 100 |
Machinery/Plants/Factory
Formulations Manufacturing Units
| Unit | Address | Dosage Forms | Number of production blocks |
| Unit 1 | Plot Nos. 19, 20, 21, Sector 6A, IIE, SIDCUL, Ranipur, Haridwar, Uttarakhand 249403, India | Oral solids | 1 |
| Unit 2 | Plot No. 22, Sector 6A, SIDCUL, Ranipur, Haridwar, Uttarakhand 249403, India | Oral solids | 1 |
| Unit 3 | Plot Nos. 2, 3, 4 and 5, Sector 6B, SIDCUL, Ranipur, Haridwar, Uttarakhand 249403, India | Sterile preparations | 4 |
| Unit 4 | Plot Nos. 47 and 48, Sector 6A, SIDCUL, Ranipur, Haridwar, Uttarakhand 249403, India | Hormonal (oral, injectables and topical) | 1 |
| Unit 5 | Plot No. 47, Sector 6A, SIDCUL, Ranipur, Haridwar, Uttarakhand 249403, India | Dermatology and cosmetics | 1 |
| Unit 6 | Plot No. 13, Sector 6A, IIE SIDCUL, Ranipur, Haridwar, Uttarakhand 249403, India | Ayurvedic / Nutraceuticals | 1 |
| Unit 7 | Plot Nos. 27, 28, 29 and 30, Sector 8A, IIE SIDCUL, Ranipur, Haridwar, Uttarakhand 249403, India | Oral solids, oral liquids, topical and injectable | 4 |
| Unit 8 | Plot No. 16, Vardhman Industrial Estate, Village Bahadarpur Saini, Roorkee, Haridwar, Uttarakhand 247677, India | Anti-bacterials and steroids | 4 |
| Unit 9 | Plot No. B- 6/7/8/9, Sector 1, Sigaddi, Growth Centre, SIDCUL, Village Srirampur, Kotdwar, Uttarakhand 246149, India | Penam antiinfectives | 2 |
| Unit 10 | Khasra Nos.318/280, 319/280, 319/280, 321/280, Village Mankapur, Nalagarh, Baddi, HimachalPradesh 173205, India | Oral solids and oral liquids | 4 |
| Unit 11 | Plot No. 01, Sector 3, IIE Ranipur, BHEL, Haridwar, Uttarakhand, 249403 | Injectables | 1 |
| Unit 12 | Khasra Nos. 876, 877, 905, 906, 906/1, 907, 339, 351, 338, 340, 1299, 1002, 341, 1003, 341, 342, 875 Makhnu Majra, Pargana Dharampur, Tehsil Baddi, Post Office Bhud, Baddi, Solan, Himachal Pradesh 173205, India |
API manufacturing units
| Unit | Address | API | Number of production blocks |
| Dera Bassi, Punjab | Akums Lifesciences Limited, Village Sundran, Post Office Mubarakpur, Tehsil Dera Bassi, District SAS Nagar, Punjab 140507, India | Beta-lactam range | 6 |
| Lalru, Punjab | Akums Lifesciences Limited, Village Chachrauli, Tehsil Dera Bassi, Lalru, District SAS Nagar, Punjab 140507, India | General range of APIs | 3 |
| Barwala, Haryana | Plot/Shed Nos. 280 and 281, Alipur Industrial Area, Barwala, Panchkula, Haryana 134118, India | HPAPI, Oncology and other high potent APIs | 1 |
Capacity Utilisation
| Unit | 2024 | 2023 | 2022 | ||||||
| Installed capacity (in millions) | Production during the Financial Year (in millions) | Capacity utilization as % of installed capacity | Installed capacity (in millions) | Production during the Financial Year (in millions) | Capacity utilization as % of installed capacity | Installed capacity (in millions) | Production during the Financial Year (in millions) | Capacity utilization as % of installed capacity | |
| Unit 1, Haridwar, Uttarakhand | 6,492.00 | 2,152.52 | 33.16% | 6,492.00 | 1,581.28 | 24.36% | 6,492.00 | 2,586.17 | 39.84% |
| Unit 2, Haridwar, Uttarakhand | 150 | 93.62 | 62.41% | 150 | 83.94 | 55.96% | 150 | 100.59 | 67.06% |
| Unit 3, Haridwar, Uttarakhand | 392.4 | 218.22 | 55.61% | 369.6 | 200.8 | 54.33% | 369.6 | 229.17 | 62.01% |
| Unit 4, Haridwar, Uttarakhand | 2,436.00 | 440.04 | 18.06% | 2,436.00 | 290.99 | 11.95% | 2,436.00 | 341.97 | 14.04% |
| Unit 5, Haridwar, Uttarakhand | 57.6 | 25.89 | 44.94% | 57.6 | 20.36 | 35.35% | 57.6 | 19.09 | 33.15% |
| Unit 6, Haridwar, Uttarakhand | 2,519.60 | 612 | 24.29% | 2,509.60 | 604.45 | 24.09% | 2,509.60 | 717.26 | 28.58% |
| Unit 7, Haridwar, Uttarakhand | 26,025.00 | 13,090.83 | 50.30% | 26,025.00 | 11,558.74 | 44.41% | 25,971.00 | 12,806.33 | 49.31% |
| Unit 8, Haridwar, Uttarakhand | 7,316.40 | 2,061.57 | 28.18% | 7,316.40 | 1,575.91 | 21.54% | 7,316.40 | 2,070.69 | 28.30% |
| Unit 9, Kotdwar, Uttarakhand | 168 | 3.13 | 1.86% | 168 | 1.58 | 0.94% | NA | NA | NA |
| Unit 10, Baddi, Himachal Pradesh | 3,674.78 | 87.44 | 2.38% | 3,674.78 | – | NA | NA | NA | NA |
| Unit | 2024 | 2023 | 2022 | ||||||
| Installed capacity (in MT) | Production during the Financial Year (in MT) | Capacity utilization as % of installed capacity | Installed capacity (in MT) | Production during the Financial Year (in MT) | Capacity utilization as % of installed capacity | Installed capacity (in MT) | Production during the Financial Year (in MT) | Capacity utilization as % of installed capacity | |
| Dera Bassi, Punjab | 557 | 217.22 | 39.00% | 530 | 149.14 | 28.14% | 530 | 156.22 | 29.47% |
| Lalru, Punjab | 180 | 26.76 | 14.87% | 109 | 40.45 | 37.11% | 109 | 1.71 | 1.56% |
| Barwala, Punjab | 0.384 | – | – | 0.384 | – | – | 0.384 | – | – |
| Particulars | 2024 | 2023 | 2022 | ||||||
| Installed capacity (production volume in millions) | Production during the Financial Year (in millions) | Capacity utilization as % of installed capacity | Installed capacity (production volume in millions) | Production during the Financial Year (in millions) | Capacity utilization as % of installed capacity | Installed capacity (production volume in millions) | Production during the Financial Year (in millions) | Capacity utilization as % of installed capacity | |
| Oral solids | 47,888.78 | 18,254.50 | 38.12% | 47,878.78 | 15,399.05 | 32.16% | 44,138.20 | 18,306.30 | 41.47% |
| Sterile | 767 | 370.4 | 48.29% | 744.2 | 349.39 | 46.95% | 722.4 | 379.58 | 52.54% |
| Liquids | 417.6 | 111.2 | 26.63% | 417.6 | 129.67 | 31.05% | 283.2 | 148.7 | 52.51% |
| External | 158.4 | 49.2 | 31.06% | 158.4 | 39.94 | 25.21% | 158.4 | 36.83 | 23.25% |
Customers
Competition
As a CDMO, Akums Drugs and Pharmaceuticals Limited primary competitors are other contract manufacturers who provide outsourcing services for the production of pharmaceutical and nutraceutical products. Akums Drugs and Pharmaceuticals Limited face competition from full-service pharmaceutical outsourcing or CDMO companies, contract manufacturers offering limited number of dosage forms, as well as contract manufacturers capable of offering multiple dosage forms. Additionally, we encounter competition from large pharmaceutical companies that extend third- party manufacturing services to utilize their excess capacity.
Moreover, in Akums Drugs and Pharmaceuticals Limited branded and generic formulations business, we compete with other marketing companies operating on a pan- India scale, multinational pharmaceutical corporations, and regional pharmaceutical companies, all involved in the promotion and sale of pharmaceutical formulations.
Lastly, in Akums Drugs and Pharmaceuticals Limited API business, we primarily compete with other API manufacturers engaged in the development and production of APIs, which are crucial components of pharmaceutical formulations.
Peer companies comparison
| Name of Company | Face Value Per Share (₹) | Share price (₹) | Operating revenue for Fiscal 2024 (₹ million) | EPS (₹) | P/E | Return on tangible Net Worth (%) | Net Asset Value per Equity Share (₹) | |
| Basic | Diluted | |||||||
| Akums Drugs and Pharmaceuticals | 2 | 679 | 41,781.82 | -0.28 | -0.28 | 2425 | -0.57% | 49.59 |
| Peer Group | ||||||||
| Divi’s Laboratories | 2 | 4,519.80 | 78,450.00 | 60.27 | 60.27 | 74.99 | 11.79% | 511.21 |
| Suven Pharma | 1 | 820.6 | 10,513.54 | 11.8 | 11.8 | 69.54 | 14.64% | 80.56 |
| Gland Pharma | 1 | 1,990.60 | 56,647.22 | 46.9 | 46.89 | 42.45 | 8.85% | 529.65 |
| Torrent Pharma | 5 | 2,946.35 | 107,280.00 | 48.94 | 48.94 | 60.2 | 24.15% | 202.57 |
| Alkem Laboratories | 2 | 5,133.65 | 126,675.80 | 150.19 | 150.19 | 34.18 | 17.41% | 862.46 |
| Eris Lifesciences | 1 | 1,006.30 | 20,091.43 | 28.82 | 28.79 | 34.95 | 15.16% | 190.12 |
| JB Chemicals | 1 | 1,790.50 | 34,841.80 | 35.66 | 34.85 | 51.38 | 18.90% | 188.37 |
| Mankind Pharma | 1 | 2,129.00 | 103,347.74 | 47.75 | 47.68 | 44.65 | 20.43% | 233.73 |
| Innova Captab | 10 | 558.1 | 10,813.05 | 18.66 | 18.66 | 29.91 | 11.35% | 145.2 |
Subsidiary companies
| Name of the entity | % of Holding |
| Pure and Cure Healthcare Private Limited (“PCHL”) | 99.99 |
| Maxcure Nutravedics Limited (“MNL”) | 99.98 |
| Malik Lifesciences Private Limited (“MLPL”) | 99.99 |
| Akumentis Healthcare Limited (“AHL”) | 91.49 |
| Unosource Pharma Limited (“UPL”) | 99.99 |
| Plenteous Pharmaceuticals Limited (“PPL”) | 99.98 |
| Nicholas Healthcare Limited (“NHL”) | 46.14 |
| Akums Healthcare Limited (“AHCL”) | 13.83 |
| Sarvagunaushdhi Private Limited (“SPL”) | 52.74 |
| Medibox Pharma Private Limited (“MPPL”) | 40 |
| Qualymed Pharma Private Limited (“QPPL”) | 99.98 |
Group companies
- Akome Lifecare Private Limited
- Amazing Research Laboratories Limited
- May and Baker Pharmaceuticals Limited
- Hygosap Pharma Private Limited (erstwhile Burroughs Welcome Pharmacia Private Limited)
- Welcure Pharmaceuticals Private Limited
- Akums Foundation
Business risk factors
- Akums Drugs and Pharmaceuticals Limited manufacturing units and research and development centres are concentrated in Haridwar, Uttarakhand and we are exposed to risks originating from economic, regulatory, political and other changes in this region, including natural disasters, which could adversely affect our business, results of operations and financial condition.
- Akums Drugs and Pharmaceuticals Limited rely on domestic and international third-party suppliers for the supply of raw materials and any delay, interruption or reduction in such supply could adversely affect our business, results of operations, financial condition and cash flows.
- Akums Drugs and Pharmaceuticals Limited EBITDA margin, profit after tax margin, return on equity and return on capital employed have fluctuated significantly during the Financial Years 2024, 2023 and 2022.
| Particulars | For the Financial Year | ||
| 2024 | 2023 | 2022 | |
| EBITDA margin(1) (%) | 3.73 | 10.38 | -1.87 |
| Profit after tax margin(2) (%) | 0.02 | 2.64 | -6.79 |
| Return on equity(3) (%) | 0.11 | 13.52 | -40.13 |
| Return on capital employed(4) (%) | 3.37 | 24.6 | -18.89 |
- Akums Drugs and Pharmaceuticals Limited business is dependent on the sale of products to a limited number of clients for a significant portion of our revenues. The loss of one or more such clients or the deterioration of their financial condition or prospects could adversely affect our business, results of operations and financial condition.
| Particulars | 2024 | 2023 | 2022 | |||
| (₹ in millions) | % of revenue from operations from CDMO business | (₹ in millions) | % of revenue from operations from CDMO business | (₹ in millions) | % of revenue from operations from CDMO business | |
| Ten largest clients of our CDMO business | 12,841.14 | 39.31 | 10,597.55 | 38.92 | 10,982.66 | 41.27 |
- Akums Drugs and Pharmaceuticals Limited have had negative cash flows from investing activities during the Financial Year 2024. Negative cash flows over extended periods, or significant negative cash flows in the short term, could affect our ability to operate our business and implement our growth plans.
- Akums Drugs and Pharmaceuticals Limited import some of our raw materials from China and other countries and source our remaining raw materials domestically. Any delay, interruption or reduction in the supply of such raw materials could adversely affect our business, financial condition and results of operations.
| Particulars | 2024 | 2023 | 2022 | |||
| (₹ in millions) | % of total cost of materials | (₹ in millions) | % of total cost of materials | (₹ in millions) | % of total cost of materials | |
| CDMO business | ||||||
| Domestic sourcing | 13,866.09 | 86.87 | 12,728.44 | 86.92 | 14,746.92 | 89.92 |
| Direct imports from China | 1,839.55 | 11.52 | 1,483.41 | 10.13 | 955.53 | 5.83 |
| Direct imports from other countries | 256.65 | 1.61 | 431.49 | 2.95 | 697.78 | 4.25 |
| Branded and generic formulations business | ||||||
| Domestic sourcing | 3,765.14 | 100 | 3,963.20 | 98.93 | 6,079.39 | 96.65 |
| Direct imports from China | — | — | — | — | — | — |
| Direct imports from other countries | — | — | 42.98 | 1.07 | 210.46 | 3.35 |
| API business | ||||||
| Domestic sourcing | 700.48 | 65.02 | 765.21 | 96.12 | 635.39 | 44.44 |
| Direct imports from China | 376.88 | 34.98 | 28.04 | 3.52 | 791.42 | 55.36 |
| Direct imports from other countries | — | — | 2.88 | 0.36 | 2.85 | 0.2 |
| Overall | ||||||
| Domestic sourcing | 18,331.71 | 88.11 | 17,456.85 | 89.77 | 21,461.70 | 88.98 |
| Direct imports from China | 2,216.43 | 10.65 | 1,511.45 | 7.77 | 1,746.95 | 7.24 |
| Direct imports from other countries | 256.65(2) | 1.23 | 477.35(3) | 2.45 | 911.09(4) | 3.78 |
Financials
Key Performance Indicators
(Amount in ₹ million)
| S. No. | Financial KPIs | For the year ended | ||
| 31 March 2024 | 31 March 2023 | 31 March 2022 | ||
| (a) | Revenue from operations | 41,781.82 | 36,548.20 | 36,718.93 |
| (b) | EBITDA | 1,570.10 | 3,840.55 | -690.89 |
| (c) | EBITDA margin | 3.73% | 10.38% | -1.87% |
| (d) | EBIT | 313.7 | 2,712.46 | -1,637.68 |
| (e) | EBIT margin | 0.74% | 7.33% | -4.43% |
| (f) | Profit for the year | 7.9 | 978.17 | -2,508.74 |
| (g) | Profit after tax margin | 0.02% | 2.64% | -6.79% |
| (h) | Fixed asset turnover ratio | 3.3 | 3.41 | 3.79 |
| (i) | Debt-equity ratio | 0.69 | 0.75 | 0.58 |
| (j) | Return on equity | 0.11% | 13.52% | -40.13% |
| (k) | Return on capital employed | 3.37% | 24.60% | -18.89% |
| (l) | Segment results before depreciation | |||
| – CDMO | 4,866.92 | 3,922.87 | 4,001.51 | |
| – API | -455.14 | -1,034.45 | -223.74 | |
| – Branded & Generic Formulations | 590.58 | 451.05 | 339.99 | |
| (m) | Segment results before depreciation margin | |||
| – CDMO | 14.90% | 14.41% | 15.04% | |
| – API | -21.42% | -58.36% | -20.47% | |
| – Branded & generic formulations | 8.45% | 5.98% | 3.77% | |
| (n) | Adjusted EBITDA | 5,147.84 | 3,400.86 | 4,250.85 |
| (o) | Adjusted EBITDA margin | 12.22% | 9.19% | 11.51% |
| (p) | Adjusted EBIT | 3,891.44 | 2,272.77 | 3,304.06 |
| (q) | Adjusted EBIT margin | 9.24% | 6.14% | 8.94% |
| (r) | Adjusted Return on equity | 17.19% | 3.11% | 14.51% |
| (s) | Adjusted Return on Capital employed | 16.94% | 10.77% | 17.22% |
Balance Sheet
(Amount in ₹ million)
| Particulars | As at 31March 2024 | As at 31 March2023 | As at 31March 2022 |
| ASSETS | |||
| Total non-current assets | 15,754.81 | 13,423.68 | 11,774.32 |
| Total current assets | 19,407.81 | 18,788.72 | 18,640.63 |
| Assets classified as held for sale | 1.03 | 452.87 | 275.53 |
| Total assets | 35,163.65 | 32,665.27 | 30,690.48 |
| EQUITY AND LIABILITIES | |||
| Total equity | 7,204.86 | 7,233.74 | 6,251.71 |
| Total non-current liabilities | 15,853.27 | 12,775.86 | 11,714.59 |
| Total current liabilities | 12,105.52 | 12,655.67 | 12,724.18 |
| Total equity and liabilities | 35,163.65 | 32,665.27 | 30,690.48 |
Profit & Loss
(Amount in ₹ million)
| S. No. | Financial KPIs | For the year ended | ||
| 31 March 2024 | 31 March 2023 | 31 March 2022 | ||
| (a) | Revenue from operations | 41,781.82 | 36,548.20 | 36,718.93 |
| (b) | EBITDA | 1,570.10 | 3,840.55 | -690.89 |
| (c) | EBITDA margin | 3.73% | 10.38% | -1.87% |
| (d) | EBIT | 313.7 | 2,712.46 | -1,637.68 |
| (e) | EBIT margin | 0.74% | 7.33% | -4.43% |
| (f) | Profit for the year | 7.9 | 978.17 | -2,508.74 |
| (g) | Profit after tax margin | 0.02% | 2.64% | -6.79% |
Cash Flow
| Particulars | 2024 | 2023 | 2022 |
| (₹ in millions) | |||
| Net cash generated from operating activities | 4,982.59 | 1,766.31 | 318.54 |
| Net cash (used in) investing activities | -3,304.15 | -3,047.02 | -2,348.22 |
| Net cash (used in) / generated from financing activities | -1,080.21 | 1,245.40 | 2,360.40 |
| Net increase/ (decrease) in cash and cash equivalents | 598.23 | -35.31 | 330.72 |
Capital structure
(₹ in million)
| Particulars | Pre-Offer as at March 31, 2024 |
| Total borrowings | |
| Current borrowings | 3,676.95 |
| Non-current borrowings | 782.97 |
| Current maturities of non-current borrowings | 455.63 |
| Total borrowings | 4,915.55 |
| Total equity | |
| Equity share capital | 286.13 |
| Other equity | 6,808.85 |
| Non – controlling interests | 109.88 |
| Total equity | 7,204.86 |
| Non-current borrowings (including current maturities of non-current borrowings) / Total Equity | 0.17 |
SWOT ANALYSIS
- Strengths:
- Established presence in the pharmaceutical industry.
- Strong manufacturing capabilities.
- Diverse product portfolio.
- Experienced management team.
- Weaknesses:
- Dependency on a few key products.
- Regulatory challenges.
- Limited international presence.
- High competition within the industry.
- Opportunities:
- Expansion into new markets.
- Research and development for innovative drugs.
- Strategic collaborations and partnerships.
- Growing demand for healthcare products.
- Threats:
- Intense competition from other pharmaceutical companies.
- Regulatory changes impacting operations.
- Economic fluctuations affecting sales.
- Supply chain disruptions.
IPO Details
Akums Drugs and Pharmaceuticals Limited IPO Details
| Feature | Details |
|---|---|
| IPO Size | ₹1856.74 crore |
| Issue Type | Book-building |
| Fresh Issue | ₹680 crore |
| Offer for Sale (OFS) | ₹1176.74 crore |
| Price Band | ₹646 – ₹679 per share |
| Lot Size | 22 shares |
| Issue Open Date | July 30, 2024 |
| Issue Close Date | August 1, 2024 |
| Anchor Investor Allotment | July 29, 2024 |
| Reservation | QIB: 75%, NII: 15%, Retail: 10% |
| Employee Discount | ₹64 per share |
| Listing Exchanges | BSE, NSE |
Object of the issue
| Objects | Estimated Amount (in ₹ million) |
| Repayment/prepayment of all or certain borrowings of our Company | 1,599.10 |
| Repayment/prepayment of all or certain borrowings of our Subsidiaries namely, Maxcure Nutravedics Limited and Pure and Cure Healthcare Private Limited | 2,270.90 |
| Funding incremental working capital requirements of our Company | 550.00 |
| Pursuing inorganic growth initiatives through acquisitions | |
| General corporate purposes |
Litigation involved
Gray Market Premium
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