CIPLA LIMITED

Cipla Limited is an Indian multinational pharmaceutical and biotechnology company,

headquartered in Mumbai, India. Cipla primarily develops medicines to
treat respiratory, cardiovascular disease, arthritis, diabetes, weight control and depression;
other medical conditions. It was founded by Khwaja Abdul Hamied as
'The Chemical, Industrial & Pharmaceutical Laboratories' in 1935 in Mumbai.
Revenue of the company is ₹17,720.95 crore (US$2.5 billion) (2020)
Operating income is ₹3,205.99 crore (US$450 million) (2020)
Net income is ₹1,546.98 crore (US$220 million) (2020)
Total assets are ₹23,662.56 crore (US$3.3 billion) (2020)
Number of employees are 22,036
Subsidiaries: Invagen Pharmaceuticals
Website: www.cipla.com
The equity shares of Cipla are listed on the Bombay Stock Exchange, where it is a constituent
of the BSE SENSEX index, and the National Stock Exchange of India, where it is a
constituent of the CNX Nifty. Its Global Depository Receipts (GDRs) are listed on
the Luxembourg Stock Exchange.
SHAREHOLDING PATTERN:

Shareholding belonging to the category : "Promoter and Promoter Group"

 Holding March 2020

Name % Share Indian/Foreign

Individuals/ Hindu Undivided 14.24 114,708,572 Indian

Family

Sophie Ahmed 5.71 45,982,000 Indian

Mustafa Khwaja Hamied 4.29 34,567,572 Indian

Samina Hamied 2.22 17,909,500 Indian

Rumana Hamied 1.23 9,886,500 Indian

Shirin Hamied 0.79 6,363,000 Indian

Any other 0.73 5,869,837 Indian

Mn Rajkumar Garments Lp 0.67 5,376,852 Indian

Alps Remedies Pvt Ltd 0.06 492,985 Indian

Yusuf Khwaja Hamied 20.35 163,967,687 Foreign

Kamil Hamied 1.36 10,939,500 Foreign

MANAGEMENT:
Average Management tenure is 3.3 years
1. CEO Umang Vohra (45 Years)
Tenure: 3.75 years
Compensation: 150,300,000
Umang Vohra has been Managing Director and Global Chief Executive Officer (MD
&GCEO) of Cipla since September 2016. Umang joined Cipla in October 2015 as its Global
Chief Financial Officer, and from January 2016 to August 2016 was Cipla’s Global Chief
Operating Officer. Under Umang’s leadership, Cipla has built strong momentum in its home
markets, augmented its capability, strengthened its core, and shown significant improvement
in its operating margin and profitability. At the helm of the Management Council of Cipla,
Umang’s big-picture agenda is to define and execute Cipla’s strategic growth roadmap and
geographical footprint, identify the next levers of growth, invest in innovation for the future,
and build the right organisation.

Name Position Tenure Compensation

Umang Vohra MD, Global CEO & 3.75 150.30m
Director

Samina Vaziralli Executive Vice Chairperson 3.75 64.10m

Kedar Upadhye Global Chief Financial 3.83 35.53m
Officer

Rajendra Chopra Compliance Officer & 3.33 14.40m

Company Secretary

Geena Malhotra President 1.58 -

Raju Mistry President & Global Chief 1.17 -
People Officer

Pradeep Bhadauria President & Chief Scientific 0.25 -

Officer

Raghunathan Global Chief Operating 1.83 -

Ananthanarayanan Officer

Alpesh Dalal Head of Investor Relations - -

Gautam Rohidekar Chief Legal Officer 5.67 -

SWOT ANALYSIS:
Strengths:
Strong R&D: Cipla has focused on developing new products as well as on improving drug
delivery systems and expanding product applications. Cipla has set up strong Research and
Development department for the same. The strong R&D facilities are well supported by many
manufacturing plants across the cities.
The wide range of Products: Cipla has a broad product portfolio includes APIs and
formulations for humans and animal healthcare products. Cipla has over 2000 products in
over 65 categories and is constantly looking for expansion of its product portfolio.
Weaknesses:
Lack of significant presence in developed countries: India is Cipla’s major market for
revenue generation. Although, Cipla has the presence in over 100 other countries but it has
low significance in other developed markets and hence is highly dependent on the Indian
market.
Negative campaigning: AIDS healthcare foundation had challenged Cipla over pricing of its
drug for AIDS, which keep the drugs out of reach of many in need. This brought a negative
publicity for Cipla.
Opportunities:
Strategic Expansion: In the recent past, Cipla has been expanding its business through
initiatives such as investments, partnerships and acquisitions in India as well as in the
international market. For instance, Cipla invested in a biotech manufacturing facility in South
Africa. It also acquired InvaGen pharmaceuticals in the USA etc.
Grow in Emerging markets: Cipla should look forward to growing in emerging markets,
especially places where medical infrastructure is improving and hence pharmaceutical is also
expected to grow.
Threats:
Intense competition in generics industry: There is intense competition in the Indian
generics industry from major competitors such as Lupin, Sun Pharma etc. This affects
growth potential as well as limits the market share for Cipla.
Fluctuation in Exchange rates: Any changes in the exchange rates affect the company’s
financial agreement with other countries and thus can affect profitability.
COMPETITORS:
1. Sun Pharma Ltd
Sun Pharma is Cipla's #1 rival. Sun Pharma is a Public company that was founded in
Mumbai, Maharashtra in 1983. Like Cipla, Sun Pharma also works within the
Pharmaceuticals field. Sun Pharma has 5,281 more employees vs. Cipla.
2. Lupin
Lupin is perceived as one of Cipla's biggest rivals. Lupin was founded in 1968, and is
headquartered in Mumbai, Maharashtra. Like Cipla, Lupin also operates in the
Pharmaceuticals sector. Lupin generates $110.6M more revenue vs. Cipla.
3. Dr. Reddy’s Labs
Dr.Reddy's is a top competitor of Cipla. Dr.Reddy's is a Public company that was founded in
1984 in Hyderabad, Andhra Pradesh. Dr.Reddy's competes in the Health Care Services field.
Compared to Cipla, Dr.Reddy's has 4,753 fewer employees.
Cipla’s consolidated quarterly revenues have remained somewhat stable, fluctuating in the Rs
3,400-4,000 crore range for the last 11 quarters. Cipla’s annual dollar revenues have floated
around the $2 billion mark, depending on the dollarrupee exchange rate. The high
dependence on Indian revenues has worked as a hedge for Cipla, protecting it while the rest
of the Indian pharma majors faced trouble. But all that is changing, and Cipla and its
investors will henceforth have to take on the risk of US regulatory action affecting its
revenues. In April, Cipla’s US subsidiary InvaGen recalled an injection used to treat low
testosterone from the US markets. It had been manufactured in Cipla’s Goa plant. In March,
Cipla’s Kurkumbh plant in Pune got 18 observations after an FDA audit. The company has
now replied to those. Of the 18 observations, 10 are for a diabetes drug that goes off-patent in
2025. It also raises the biggest question about Cipla’s US push. When Indian pharma
companies, with high US revenue dependency, have suffered, running into stringent FDA
norms, why is Cipla making a risky bet? The obvious answer is that it is too huge a market
for a big generics player to ignore. But that doesn’t dilute regulatory risk in the least bit.
According to figures from All India Organisation Chemists and Druggists (AIOCD), Cipla’s
domestic a 9% growth last year, while its peers like reported a 7% growth in domestic
business. Jefferies in its February analyst report noted domestic growth accelerated to the
highest level 18 months. Cipla has invested back into the India market, especially to expand
the reach for its inhalers, the usage of which suffers from social stigma.
The primary focus of Cipla's Research and Development (R&D) center is to develop
innovative and affordable products and drug delivery systems. It has pioneered several
formulations and come up with many firsts - both in India and the world.