INTRODUCTION

Cipla Limited is a Indian pharmaceutical company, probably best-known outside

its home country for pioneering the manufacture of low-cost anti-AIDS drugs for
HIV positive patients in developing countries. It has played a similarly prominent
role in expanding access to drugs to fight influenza, respiratory
disease and cancer. Founded by nationalist Indian scientist Khwaja Abdul
Hamied as The Chemical, Industrial & Pharmaceutical Laboratories in 1935, Cipla
makes drugs to treat cardiovascular disease, arthritis, diabetes, weight control,
depression and many other health conditions, and its products are distributed in
virtually every country of the world. Cipla is one of the biggest medicine company
not only in India but in the whole world.The company has more than 1000
products in the domestic market including generic AIDS drugs,antibiotics,
chemotheraph & drugs for gastrointestinal illness and asthama.Cipla is a leader in
the domestical pharmaceuticals market.Its products come from the
manufacturing plants located through out the country.Cipla firm also exports raw
materials, intermediates, prescription drugs over the country products and
veterinary products to some 180 countries around the world.
COMPANY PROFILE
Cipla is based in Indias commercial capital Mumbai, The Chemical, Industrial &
Pharmaceutical Laboratories. Today, Cipla is a leading player in anti-infective and
anti-asthmatic formulations. The company also specializes in the manufacturing
of steroids and hormones. Cipla manufactured ampicillin for the first time in the
country in 1968. In 1983, Cipla developed two anticancer drugs, vinblastine and
vincristine from the common garden plant Vinca rosea in association with the
National Chemical Laboratory. The company pioneered the manufacture of the
antiretroviral drug, zidovudine, in technological collaboration with Indian Institute
of Chemical Technology in 1993. In 1997 Cipla became the first company in the
world by launching transparent Rotahaler, a dry powder inhaler device. In 1998
the company launched lamivudine, and became one of the few companies in the
world to offer all three component drugs of retroviral combination therapy
(zidovudine and stavudine already launched).Cipla received clearance from the

Drugs Controller General of India to manufacture and market the country's first
non-nucleoside reverse transcriptase inhibitor (NNRTI), nevirapine, for the
treatment of AIDS. Cipla Ltd became Indias second largest pharmaceutical, edged
out the multinational giant GlaxoSmithKline which was reigning supreme in the
country for long, in terms of drug sales last year. Consistently maintaining a fasttrack growth momentum, Cipla has registered an 80-percent jump in net profit for
the quarter ended on March 31 2006, driven by growth in domestic sales and
exports. In the fourth quarter, Cipla posted a net profit of 1.90 billion rupees. Net
sales grew 63 percent to 8.7 billion rupees. Cipla's exports in the quarter grew
63.7 percent while domestic sales rose 56.4 percent. Cipla anticipates 15 to 20
percent growth in this year. Cipla's R&D division focuses on the development of
new products and new drug delivery systems across a range of therapies. The
company is spending over 4 per cent of its total turnover on R&D activities. The
company supplies drugs to treat over 2 lac HIV-positive patients worldwide. The
company has also been among the major suppliers of anti-malarial drugs and
drugs for schistosomiasis to international markets.

MISSION AND VISION

Cipla is a global pharmaceutical company whose goal is ensuring no patient
shall be denied access to high quality & affordable medicine and
support. Ciplas mission is to be a leading global healthcare company which
uses technology and innovation to meet everyday needs of all patients. Cipla
company wants to make indians healthy and strong.Cipla vision to make
suitable medicines for preventing bird flu. Cipla company visions to make
independent and self- Sufficient india in the field of medicine.Create healthy
atmosphere and To resarch on CANCER and AIDS .

BUSINESS OVERVIEW
The present businesses of Cipla can be broadly classified into:
Domestic branded formulation sales (74% of total sales; 19-20% operating profit margin)
Domestic unbranded formulation sales (7% of total sales; over 10% operating profit margin )
Exports (19% of total sales; around 38-40% operating profit margin). Breakup of exports is as follows:

Europe (17%), US (30%), Africa (34%), Middle East (8%) and Australia (11%).

Cipla has been relatively low profile on its R&D initiatives compared to the
domestic peers, all of whom have set their sights on discovering new chemical
entities (NCEs). But lately, R&D spend of Cipla has increased by 25% to Rs. 300 mn
(4% of sales) and the company has an R&D team of 200 people. In future the R&D
expenditure is expected to grow at a faster pace compared to sales and might rise
to over 5% of sales. The business environment for Cipla has become highly
competitive in the last few years. The major factors affecting Cipla are as
follows:New Drug R&D costs are prohibitive, which has made MNCs to spread
their R&D costs through Mergers / Acquisitions. In Indian Pharmaceutical Sector
prices of over 60% of the Drugs/Formulations is controlled by the government
through DPCO (Drug Price Control Order). For Cipla DPCO coverage is around 55%
Low entry barriers in the bulk drugs market has led to a situation of over-capacity,
which has made major domestic players, shift their focus towards formulations
segment. As a result Cipla, which is earning nearly 80-85 percent of its sales from
formulations, is facing increasing competition. With the focus on post 2005 era,
MNCs are strengthening their position in India through marketing tie-ups with
local majors and fully owned subsidiaries. This can lead to even higher degree of
competition.

SHAREHOLDING PATTERN

CATEGORY OF
SHAREHOLDER

NO.OF
SHARE

TOTAL NO.
OF
SHARES

HOLDERS

TOTAL NO. OF
SHARES HELD IN
DEMATERIALIZED
FORM

TOTAL
SHAREHOLDING
AS A % OF TOTAL
NO. OF SHARES

SHARES
PLEDGED OR
OTHERWISE
ENCUMBERED

AS A % OF
(A+B)
AS A % OF
(A+B+C)

NUMBER OF
SHARES
AS A % OF
TOTAL
NO. OF
SHARES

(A) Shareholding of Promoter and Promoter Group

(1) Indian
Individuals /
Hindu
Undivided
Family

14

122,720,500

122,720,500

15.46

15.28

Bodies
Corporate

6,022,791

6,022,791

0.76

0.75

Sub Total

19

128,743,291

128,743,291

16.21

16.03

Individuals
(NonResidents
Individuals /
Foreign
Individuals)

166,742,687

166,742,687

21.00

20.77

Sub Total

166,742,687

166,742,687

21.00

20.77

23

295,485,978

295,485,978

37.22

36.80

181

33,772,001

33,772,001

4.25

4.21

41

2,146,712

2,072,612

0.27

0.27

(2) Foreign

Total
shareholding
of Promoter
and
Promoter
Group (A)

(B) Public Shareholding

(1)
Institutions
Mutual Funds
/ UTI
Financial
Institutions /

Banks
Insurance
Companies

43

61,772,362

61,772,362

7.78

7.69

Foreign
Institutional
Investors

368

190,190,557

190,190,557

23.95

23.69

Sub Total

633

287,881,632

287,807,532

36.26

35.85

1,778

29,180,988

28,919,931

3.68

3.63

(2) NonInstitutions
Bodies
Corporate
Individuals
Individual
shareholders
holding
nominal share
capital up to
Rs. 1 lakh
Individual
shareholders
holding
nominal share
capital in
excess of Rs.
1 lakh
Any Others
(Specify)
Trusts
Foreign
Corporate
Bodies
Non Resident
Indians

52,432,556

47,682,519

6.60

6.53

99,110,556

60,891,882

12.48

12.34

4,148

29,904,666

7,275,766

3.77

3.72

41

1,376,393

1,376,393

0.17

0.17

143,297

143,297

0.02

0.02

27,502,709

4,873,809

3.46

3.43

881,792

881,792

0.11

0.11

100

100

375

375

154,183

399

3,575

Clearing
Members

526

Foreign
Nationals

Overseas
Corporate

Bodies
Sub Total

160,508

210,628,766

144,770,098

26.53

26.23

Total Public
shareholding
(B)

161,141

498,510,398

432,577,630

62.78

62.09

161,164

793,996,376

728,063,608

100.00

98.89

(1)

(2)

Total (A)+(B)
(C) Shares
held by
Custodians
and against
which
Depository
Receipts have
been issuedm

Sub Total

8,924,981

8,924,981

1.11

Total
(A)+(B)+(C)

161,166

802,921,357

736,988,589

100.00

HISTORY OF THE COMPANY

Khwaja Abdul Hamied, the founder of Cipla, was born on October 31, 1898. In
1935, he set up The Chemical, Industrial & Pharmaceutical Laboratories, which
came to be popularly known as Cipla. He gave the company all his patent and
proprietary formulas for several drugs and medicines, without charging any
royalty. On August 17, 1935, Cipla was registered as a public limited company
with an authorized capital of Rs 6 lacs. The search for suitable premises ended at
289, Belasis Road (the present corporate office) where a small bungalow with a
few rooms was taken on lease for 20 years for Rs 350 a month. Cipla was officially
opened on September 22, 1937 when the first products were ready for the

market. July 4, 1939 was a red-letter day for Cipla, when the Father of the Nation,
Mahatma Gandhi, honoured the factory with a visit. He was "delighted to visit this
Indian enterprise", he noted later. From the time Cipla came to the aid of the
nation gasping for essential medicines during the Second World War, the
company has been among the leaders in the pharmaceutical industry in India. On
October 31, 1939, the books showed an all time high loss of Rs 67,935. That was
the last time the company ever recorded a deficit. In 1942, Dr Hamied's blueprint
for a technical industrial research institute was accepted by the government and
led to the birth of the Council of Scientific and Industrial Research (CSIR), which is
today the apex research body in the country. In 1944, the company bought the
premises at Bombay Central and decided to put up a "first class modern
pharmaceutical works and laboratory." It was also decided to acquire land and
buildings at Vikhroli. With severe import restrictions hampering production, the
company decided to commence manufacturing the basic chemicals required for
pharmaceuticals. In 1946, Cipla's product for hypertension, Serpinoid, was
exported to the American Roland Corporation, to the tune of Rs 8 lacs. Five years
later, the company entered into an agreement with a Swiss firm for
manufacturing foromycene. Dr Yusuf Hamied, the founder's son, returned with a
doctorate in chemistry from Cambridge and joined Cipla as an officer in charge of
research and development in 1960. In 1961, the Vikhroli factory started
manufacturing diosgenin. This heralded the manufacture of several steroids and
hormones derived from diosgenin.