Piramal Phytocare Ltd (erstwhile Piramal Life Sciences Ltd) was engaged in the two business activities NCE Research Activity and Herbal business activity. However, NCE research activity was demerged to Piramal Health Care (Now Piramal Enterprises Ltd) through a scheme of arrangement in December 2011 for approx. ₹196 crores. Post demerger Piramal Phytocare continued with its remaining business of Herbal products till date.  Since Piramal Phytocare is running into losses since past 5 years, Piramal Enterprises post-merger will absorb the losses of herbal business.

Piramal Enterprises Ltd (PEL) is engaged in the business of pharmaceuticals, including research and development, financial services and information management through its subsidiaries. The product portfolio of the company is:

  1. Piramal Pharma
  2. Financial Services
  3. Healthcare Insights and Analytics

The Company offers its products under brands, including Saridon, Lacto Calamine, i-pill/i-know, Polycrol, Tetmosol, Untox, Stop AllerG and Throatsil. Piramal Enterprises Limited, the Group’s flagship company generates more than 51% of its revenues from international markets. Currently, PEL has a market cap on BSE of Rs 50,665 Crores.

Piramal Phytocare Ltd (PPL) offers medicinal products that are made from standardized herbal extracts. The Marketing of Herbal Products is done through country-specific marketing & distribution partners, manufacturing is outsourced on Loan License basis. In the year ended March 31, 2018, the Company has also entered into an arrangement with PEL whereby PPL has appointed PEL as a distributor to sell certain over the counter products bearing specific trademarks

Efficient Capital Deployment

Till date, Piramal Enterprises has history of making over 50 acquisitions. The company is known for its efficient capital allocation.

Capital Deployed Financial performance
Loan Book Rs 46,995 Cr (on B/S) & Alternative AUM Rs. 7,620 Cr ✔  6-year loan book CAGR: 122%1

✔  Q1 FY19 ROE: 19%

✔  Q1 FY19 GNPA ratio: 0.3%

Rs. 6,652 Crores invested in Pharma ✔  7 Year Revenue CAGR: 16%1

✔  Q1FY19 Global Pharma EBITDA Margin: 20%

✔  8 acquisitions in last 3 years

Rs. 4,583 Crores invested in Shriram Group ✔  Around 16% annualized return on STFC and SCUF
Rs. 5,000 Crores invested in Healthcare Insight and Analytics ✔  Around 20% appreciation in USD (relative to INR) since investment

✔  Peers trading at attractive valuations in US

Rs. 5,680 Cr of capital returned to shareholders since 2010 ✔  Buyback of Rs. 2,508 Cr

✔  Annual dividends of Rs. 2,568 Crs & Special dividends of Rs. 604 Cr

✔  FY-2018 Dividend Pay-out –29 %

Transaction

Please Subscribe to read the full article.