Lupin Limited

 Lupin Limited is an Indian multinational pharmaceutical company based in Mumbai, Maharashtra, India. It is one of the largest generic pharmaceutical companies by revenue globally.^[10] The company's key focus areas include paediatrics, cardiovascular, anti-infectives, diabetology, asthma and anti-tuberculosis.

History and evolution[edit]

Lupin was founded in 1968 by Desh Bandhu Gupta,  who was a professor of chemistry at BITS-Pilani, Rajasthan. Gupta moved to Mumbai in the 60s to work on his business enterprise for which initially he had initially borrowed Rs 5000 from his wife to fund his venture. Subsequent funding from Central Bank of India, the company was able to start their manufacturing facility for producing folic acid and iron tablets for Government of India mother and child health program. Later Lupin started manufacturing anti TB drugs which at one point formed 36% of the company sales and was considered as the largest TB drugs manufacturer in the world.

After success with Lupin, in 1988 Gupta founded the group's CSR arm, the Lupin Human Welfare & Research Foundation (LHWRF). This initiative was dedicated to sustainable rural development with the aim to uplift families living below the poverty line.

As the company grew, in July 2015 the company announced its intention to acquire Gavis Pharmaceuticals and Novel Laboratories for $880 million.

The founder, Desh Bandhu Gupta died in June 2017 and was subsequently replaced as chairman by his wife, Manju Deshbandhu Gupta.

In October 2019, Pharma major lupin limited announced today the Appointment of Sreeji Gopinatham as Chief Information Officer (CIO).

In March 2019, the US FDA put several Lupin drug plants on notice for quality problems, and indicated it might not approve future Lupin drug applications.

Research and development

Lupin's research program covers the entire pharma product chain. The company's R&D program is headquartered in the Lupin Research Park located near Pune that houses over 1400 scientists. Lupin's R&D covers:

Businesses

Lupin's businesses encompass the entire pharmaceutical value chain, ranging from branded and generic formulations, APIs, advanced drug delivery systems to biotechnology. The company's drugs reach 70 countries with a footprint that covers advanced markets such as USA, Europe, Japan, Australia as well as emerging markets including India, the Philippines and South Africa to name a few.

USA

Headquartered in Baltimore, Maryland, Lupin Pharmaceuticals Inc. (LPI), the company's US subsidiary is a $891 million enterprise. It has a presence in the branded and generics markets of the US. In the branded business, Lupin operates in the CVS and Pediatric segments. The company is the market leader in 28 products out of the 77 products marketed in the US generics market, of which it is amongst the Top 3 by market share in 57 of these products (IMS Health, December 2014): Suprax (Cefixime), a paediatric antibiotic, is Lupin's top-selling product here. Other products in Lupin's branded portfolio include Antara< (Fenofibrate), Locoid lotion, Alinia (Nitazoxanide) and InspiraChambers (Anti-static valved holding chamber). The company is also the 5th largest and fastest growing generics player in the US (5.3% market share by prescriptions, IMS Health). Lupin's US brands business contributed 9% of total US sales whereas the generics business contributed 91% during FY 2014–15.

India Region Formulations (IRF)

Lupin's IRF business focuses on Lifestyle diseases and Chronic disease therapy segments, particularly in Cardiology, Central Nervous System (CNS), Diabetology, Anti-Asthma, Anti-Infective, Gastro Intestinal and Oncology. The IRF business contributed 24% of the company's overall revenues for FY 2014–15, growing by 20% and recording revenues of ₹29,676 million (US$420 million) for FY 2014-15 as compared to ₹24,794 million (US$350 million) for FY 2013–14.

It has 12 manufacturing plants and 2 Research plants in India, as Jammu(J&K), Mandideep & Indore (Madhya pradesh), Ankaleswar & Dabasa (Gujarat), Tarapur, Aurangabad and Nagpur (Maharashtra), Goa, Visakhapatnam (Andhra Pradesh) and Sikkim; where research centre at Pune and Aurangabad. Among these the baby plant is Nagpur plant which will the biggest formulation unit for Lupin in coming year.

Europe

Lupin's focus in the European Union encompasses Anti-Infectives, Cardiovascular, and CNS therapy areas, along with niche opportunities in segments like Oral Contraceptives, Dermatology and Ophthalmics. The company's presence in France is by way of a trade partnership; in Germany, it operates through its acquired entity Hormosan Pharma GmbH. ] (Hormosan); while the UK business is a direct-to-market initiative.

Japan

Lupin is the fastest-growing Top 10 generic pharmaceuticals player in Japan (IMS). It operates in Japan through its subsidiary, Kyowa Pharmaceutical Industry Co. Ltd. (Kyowa), a company acquired in 2007, and I ’rom, Pharmaceutical Co. Ltd (IP), acquired in 2011. Kyowa has an active presence in Neurology, Cardiovascular, Gastroenterology and the Respiratory therapy segments. I'rom is a niche injectables company.

In 2014, Lupin entered into a strategic joint venture agreement with Toyama-based Japanese pharmaceuticals company, Yoshindo Inc. to create YL Biologics (YLB). YLB will be jointly managed by both partners and wil be responsible for conducting clinical development of certain biosimilars including regulatory fillings and obtaining marketing authorization in Japan.

South Africa

Lupin's South African subsidiary, Pharma Dynamics (PD) is the fastest growing and the 4th largest generic company in the South African market (IMS). The company is a market leader in the Cardiovascular segment and has a growing presence in Neurology, Gastroenterology and the Over the Counter (OTC) segments.

Reliance Industries

 Reliance Industries Limited (RIL) is an Indian multinational conglomerate company headquartered in Mumbai, Maharashtra, India. Reliance owns businesses across India engaged in energy, petrochemicals, textiles, natural resources, retail, and telecommunications. Reliance is one of the most profitable companies in India,^[3] the largest publicly traded company in India by market capitalization,^[4] and the largest company in India as measured by revenue after recently surpassing the government-controlled Indian Oil Corporation.^[5] On 22 June 2020, Reliance Industries became the first Indian company to exceed US$150 billion in market capitalization after its market capitalization hit ₹11,43,667 crore on the BSE.^[6][7]

The company is ranked 96th on the Fortune Global 500 list of the world's biggest corporations as of 2020.^[8] It is ranked 8th among the Top 250 Global Energy Companies by Platts as of 2016. Reliance continues to be India's largest exporter, accounting for 8% of India's total merchandise exports with a value of ₹1,47,755 crore and access to markets in 108 countries.^[9] Reliance is responsible for almost 5% of the government of India's total revenues from customs and excise duty. It is also the highest income tax payer in the private sector in India.^[9][10]

History

The company was co-founded by Dhirubhai Ambani and Champaklal Damani in 1960's as Reliance Commercial Corporation. In 1965, the partnership ended and Dhirubhai continued the polyester business of the firm.^[11] In 1966, Reliance Textiles Engineers Pvt. Ltd. was incorporated in Maharashtra. It established a synthetic fabrics mill in the same year at Naroda in Gujarat.^[12] On 8 May 1973, it became Reliance Industries Limited. In 1975, the company expanded its business into textiles, with "Vimal" becoming its major brand in later years. The company held its Initial public offering (IPO) in 1977.^[13] The issue was over-subscribed by seven times.^[14] In 1979, a textiles company Sidhpur Mills was amalgamated with the company.^[15] In 1980, the company expanded its polyester yarn business by setting up a Polyester Filament Yarn Plant in Patalganga, Raigad, Maharashtra with financial and technical collaboration with E. I. du Pont de Nemours & Co., U.S.^[12]

In 1985, the name of the company was changed from Reliance Textiles Industries Ltd. to Reliance Industries Ltd.^[12] During the years 1985 to 1992, the company expanded its installed capacity for producing polyester yarn by over 1,45,000 tonnes per annum.^[12]

In 1993, Reliance turned to the overseas capital markets for funds through a global depository issue of Reliance Petroleum. In 1996, it became the first private sector company in India to be rated by international credit rating agencies. S&P rated Reliance "BB+, stable outlook, constrained by the sovereign ceiling". Moody's rated "Baa3, Investment grade, constrained by the sovereign ceiling".^[17]

In 1995/96, the company entered the telecom industry through a joint venture with NYNEX, USA and promoted Reliance Telecom Private Limited in India.^[16]

In 1998/99, RIL introduced packaged LPG in 15 kg cylinders under the brand name Reliance Gas.^[16]

The years 1998–2000 saw the construction of the integrated petrochemical complex at Jamnagar in Gujarat,^[16] the largest refinery in the world.

In 2001, Reliance Industries Ltd. and Reliance Petroleum Ltd. became India's two largest companies in terms of all major financial parameters.^[18] In 2001–02, Reliance Petroleum was merged with Reliance Industries.^[13]

In 2002, Reliance announced India's biggest gas discovery (at the Krishna Godavari basin) in nearly three decades and one of the largest gas discoveries in the world during 2002. The in-place volume of natural gas was in excess of 7 trillion cubic feet, equivalent to about 120 crore (1.2 billion) barrels of crude oil. This was the first ever discovery by an Indian private sector company.^[13][19]

In 2002–03, RIL purchased a majority stake in Indian Petrochemicals Corporation Ltd. (IPCL), India's second largest petrochemicals company, from the government of India,^[20] RIL took over IPCL's Vadodara Plants and renamed it as Vadodara Manufacturing Division (VMD).^[21][22] IPCL's Nagothane and Dahej manufacturing complexes came under RIL when IPCL was merged with RIL in 2008.^[23][24]

In 2005 and 2006, the company reorganized its business by demerging its investments in power generation and distribution, financial services and telecommunication services into four separate entities.

In 2006, Reliance entered the organised retail market in India^[26] with the launch of its retail store format under the brand name of 'Reliance Fresh'.^[27][28] By the end of 2008, Reliance retail had close to 600 stores across 57 cities in India.^[13]

In November 2009, Reliance Industries issued 1:1 bonus shares to its shareholders.

In 2010, Reliance entered the broadband services market with acquisition of Infotel Broadband Services Limited, which was the only successful bidder for pan-India fourth-generation (4G) spectrum auction held by the government of India.^[29][30]

In the same year, Reliance and BP announced a partnership in the oil and gas business. BP took a 30 per cent stake in 23 oil and gas production sharing contracts that Reliance operates in India, including the KG-D6 block for $7.2 billion.^[31] Reliance also formed a 50:50 joint venture with BP for sourcing and marketing of gas in India.^[32]

In 2017, RIL set up a joint venture with Russian Company Sibur for setting up a Butyl rubber plant in Jamnagar, Gujarat, to be operational by 2018.^[33]

In August 2019, Reliance added Fynd primarily for its consumer businesses and mobile phone services in the e-commerce space.^[34][35]

Shareholding[edit]

The number of shares of RIL are approx. 310 crore (3.1 billion).^[36] The promoter group, the Ambani family, holds approx. 46.32% of the total shares whereas the remaining 53.68% shares are held by public shareholders, including FII and corporate bodies.^[36] Life Insurance Corporation of India is the largest non-promoter investor in the company, with 7.98% shareholding.^[37]

In January 2012, the company announced a buyback programme to buy a maximum of 12 crore (120 million) shares for ₹10,400 crore (US$1.5 billion). By the end of January 2013, the company had bought back 4.62 crore (46.2 million) shares for ₹3,366 crore (US$470 million).^[38]

Listing[edit]

The company's equity shares are listed on the National Stock Exchange of India Limited (NSE) and the BSE Limited. The Global Depository Receipts (GDRs) issued by the Company are listed on Luxembourg Stock Exchange.^[39][40] It has issued approx. 5.6 crore (56 million) GDRs wherein each GDR is equivalent to two equity shares of the company. Approximately 3.46% of its total shares are listed on Luxembourg Stock Exchange.^[36]

Its debt securities are listed at the Wholesale Debt Market (WDM) Segment of the National Stock Exchange of India Limited (NSE).^[41]

It has received domestic credit ratings of AAA from CRISIL (S&P subsidiary) and Fitch. Moody's and S&P have provided investment grade ratings for international debt of the company, as Baa2 positive outlook (local currency issuer rating) and BBB+ outlook respectively.^[42][43][44] On the 28th of December, 2017, RIL announced that it will be acquiring the wireless assets of Anil Ambani-led Reliance Communications for about ₹23,000 crores.^[45]

Operations

The company's petrochemical, refining, oil and gas-related operations form the core of its business; other divisions of the company include cloth, retail business, telecommunications and special economic zone (SEZ) development. In 2012–13, it earned 76% of its revenue from refining, 19% from petrochemicals, 2% from oil & gas and 3% from other segments.^[37]

In July 2012, RIL informed that it was going to invest US$1 billion over the next few years in its new aerospace division which will design, develop, manufacture, equipment and components, including aircraft, engine, radars, avionics and accessories for military and civilian aircraft, helicopters, unmanned airborne vehicles and aerostats.^[46]