ABOUT THE COMPANY

Type

Public

Traded as

BSE: 500257
NSE: LUPIN

Industry

Pharmaceuticals

Founded

1968

Founder(s)

Dr. Desh Bandhu Gupta

Headquarters

Mumbai, Maharashtra, India

VISION AND VALUE

VISION
"An Innovation Led, Transnational Pharmaceutical Company
VALUE
"Our aspiration is to become a multi-billion dollar transnational company and be
counted amongst the top generic pharmaceutical companies in the world. Going
forward, we have to consistently set ourselves standards and benchmarks that
will be world-class but uniquely Lupin.
-Dr. Desh Bandhu Gupta Founder and Chairman

COMPANYs FINANCIALS
Mar ' 14

Mar ' 13

Mar ' 12

Mar ' 11

Mar '

Total revenue

9,430.97

7,328.26

5,388.32

4,511.46

3,673.

Reported net profit

2,324.22

1,260.43

671.84

809.47

647.85

Earning Per Share

(Rs)

51.84

28.16

18.01

18.15

INDUSTRY OVERVIEW

The Indian Pharmaceutical industry has been witnessing phenomenal

growth in recent years, driven by rising consumption levels in the country
and strong demand from export markets.

The pharmaceutical industry in India is estimated to be worth about US$

10 bn, growing at an annual rate of 9%.

In world rankings, the domestic industry stands fourth in terms of volume

and 13th in value terms. The ranking in value terms may also be a
reflection of the low prices at which medicines are sold in the country.

The industry has seen tremendous progress in terms of infrastructure

development, technology base and the wide range of products
manufactured.

Demand from the exports market has been growing rapidly due to the
capability of Indian players to produce cost-effective drugs with world

class manufacturing facilities.

Porters Five Force Model in Pharma Industries

Bargaining Power of Buyers

72.96

Hospitals & other health care organizations buy in bulk quantities and
exert pressure on pharmaceutical companies to keep prices in check
Regular patients have lost bargaining power due to price increases in
generic drugs
The bargaining power of buyers is a MEDIUM competitive force

Bargaining Power of Suppliers

Sales for the pharmaceutical industry concentrate in a handful of large

players and that has decreased the bargaining power of suppliers.

The bargaining power of suppliers is a LOW competitive force

Pharma industry can switch from their suppliers without incurring a very
high cost.

Barriers to Entry

High entry barriers due to costs associated with research & development
of new drugs (i.e. years of investment in R&D for a drug that may/may not
work)

Government regulation

The threat of entry posed by new or potential competitor is a LOW

competitive force due to the above entry barriers & regulatory constraints

Threat of Substitutes

Demand for generic versus brand name drugs has increased because of
the costs

Generic drug companies do not have the high costs associated with the
research & development of new drugs and that allows them to sell at
cheaper prices

The closeness of substitute products is a HIGH competitive force

Industry Competition

Most competitive industry in the country with as many as 10,000 different

players.

Top player in the country has only 6% market share and the next five have
18%.

High growth prospects.

The degree of rivalry among existing firms is a HIGH competitive force