INDIA

SOCIO POLITICAL
ECONOMICAL SYSTEM
AND CURRENT
AFFAIRS


Project By
Abhigna Argonda
B.com SEM-II


PROJECT REPORT

LAURUS LABS
 LAURUS LABS
HISTORY AND BACKGROUND OF LAURUS LABS
Laurus Labs is a worldwide pharmaceutical and biotechnology firm
based in Hyderabad, India, with manufacturing facilities in
Visakhapatnam, Hyderabad, and Bangalore.

Active pharmaceutical components, final dosage forms, synthesis,

and biotechnology are among its main areas of focus.

Dr. Satyanarayana Chava launched the company in 2005.

Laurus labs started with 15 employees in 2005, growing steadily and

reached to a stage where it is now employing 4808 employees.

In March 2020, Laurus Labs received US Food and Drug

Administration approval to market hydroxychloroquine tablets. The
company announced that it would supply hydroxychloroquine for
clinical trials of preventive treatment of COVID-19
.

Laurus Labs is a major R&D-driven pharmaceutical firm in India, with

a leadership position in generic active pharmaceutical ingredients
('APIs') for high-growth therapeutic areas such as antiretrovirals
('ARVs'), Hepatitis C, and Oncology.

Subsidiaries of laurus labs are Richore biotech company, laurus

synthesis private limited, and sriram labs private limited.

Laurus labs acquired 100% stake of sriram labs private limited on

November 01, 2016 for consideration of Rs 20.99 crore.
Laurus Labs entered the biotechnology sector in 2020, by acquiring
the Indian biotech company, Richcore. It acquired the 73%stake of
Richore biotech company for Rs 247 crore.

ACTIVITIES OF LAURUS LABS.

CEO’S MESSAGE
“They contribute to society in many ways – most importantly by
bringing affordable and quality medicines to patients suffering from
serious diseases.”

Laurus Labs strives to be the most renowned pharmaceutical and

biotechnology firm in the world, with a clear focus on their key areas
of growth: APIs, FDFs, synthesis, and biotechnology.
They have become a prominent maker of Active Pharmaceutical
Ingredients (APIs) for antiretroviral (ARV) and Hepatitis C
medications as a result of their early expenditures in R&D and
production.
APIs for Oncology and other therapeutic fields are also produced by
them. They undertake dedicated R&D in areas that have significant
growth potential.
They are positioned as suppliers of choice for pharmaceutical firms
wishing to use their technical knowledge and cost-effective
manufacturing capabilities.
They have world-class manufacturing facilities capable of large-scale
commercial API production. WHO, USFDA(U.S Food and drug
administration), have all given their clearance to their facilities.
Their cutting-edge Fixed Dosage Formulations (FDF) manufacturing
plant can produce one billion tablets per year and can be scaled up to
five billion tablets per year.
For global pharmaceutical firms, their Synthesis business uses their
strong process chemistry expertise to deliver analytical and research
services, clinical research supplies, and commercial-scale contract
manufacturing services.
Specialty ingredients for nutraceuticals, nutritional supplements, and
cosmeceutical products are also developed and manufactured by
them.
They filed 315 patents in which they own 177 patents. They have
commercialized 60+ products since inception across three distinct
business units: Generics API, Generics FDF and Synthesis.

They have been recognised for their success and were awarded with
'India Pharma Leader Award' for the 6th edition of the Indian Pharma
and Medical Device Awards 2020 main event, at the Federation of
Indian chambers of commerce and industry (FICCI) House in New
Delhi, India.
They also received Golden Peacock Award for Excellence in
Corporate Governance 2020 won the renowned Golden Peacock
Award for Excellence in Corporate Governance in 2020. The Golden
Peacock Award is considered as a global symbol of business
achievement which was established in 1991 by India's Institute of
Directors (IOD). It was the first time, laurus labs has won that
prestigious award in its whole business life.
It also won 'Most Promising Company of the Year’ in 2021.

FINANCIAL POSITION AND GROWTH OF LAURUS LABS

Due to the right vision and strategy of the company's leadership,

efficient execution by the operational team, and the support of
dedicated employees and other committed stakeholders, the year
was a huge success.

• They had a solid year in 2020-21, with strong sales growth and
improved core profitability.
• In 2019-20, their combined revenues were '4,814 crore, up from
'2,832 crore the previous year.
• Their EBITDA increased by 176% to '1,573 crore from '570 crore
the prior year.
• In 2019-20, its PAT increased by 286 percent to '984 crore, up
from '255 crore the previous year.

They bought a 72.55 percent share in Richcore Lifesciences from two

private equity groups, Eight Roads and Ventureast, throughout the
year. The purchase aims to diversify and access high-growth areas
such as recombinant animal origin free goods, enzymes, and
developing biologics at scale to CDMO.

The share price of Laurus labs is currently around Rs 580 which

increased from Rs 68 in April,2020.
They also intend to purchase additional property in order to expand
their fermentation capacity to over a million litres.

With continued new customer acquisitions, the synthesis business is

likely to develop rapidly over the next two years. Laurus Bio is
planned to develop significantly over the next 4-5 years,
transforming us into a fully integrated pharmaceutical and
biotechnology firm.
CSR ACTIVITIES OF LAURUS LABS

Laurus Labs began its CSR operations in tandem with its entry into
the commercial sector in order to encourage a beneficial influence on
the environment through its actions, rather than out of necessity.
Laurus Labs, as a pharmaceutical firm, established shared value by
offering medications to the less fortunate through charities and
providing financial assistance to universities for the modernization of
chemical labs.

Their CSR operations are generally focused on educational,

healthcare, and environmental programmes, notably in the
communities surrounding their production plants. Their CSR
initiatives are overseen by their Board's CSR Committee.

Helping communities As a responsible corporate citizen, Laurus Labs

extended its support to the governments of Telangana
and province within the fight to avoid wasting the lives of
these stricken by COVID-19 and people expected to be full of the
outbreak in both states.

Safe drink plants Laurus installed safe water plants in Munnaluru

village in Krishna district and Dibbapalem village in Visakhapatnam
district, both in state, with capacities of 2,000 litres/hector and 4,000
litres/hector respectively. The plants provide safe drinkable for a
population of 1,000 in Munnaluru and 500 in Dibbapalem.
Support for education infrastructure Donated to the 'Nadu-Nedu'
project, which aims to boost Andhra Pradesh's educational
infrastructure. The administration has been working to boost school
infrastructure across the state as a part of the initiative.
Spandana team is the body who takes cares of CSR activities of
laurus labs, they took the initiative of feeding nearly 500 poor and
needy people every day.
When it came to giving to the community, laurus labs has done a lot,
they donated medicines, safety kits to the PM CARES Fund and CM
Relief fund to support the healthcare ecosystem.

They also donated medicines to Andhra Pradesh Government,

Telangana Government and Kerala Government.

Their initiative towards healthy and green planet.

ENERGY CONVERSATION
Energy consumption and energy mix play a crucial role in designing
their manufacturing processes. They need consciously sought to shift
a greater part of their energy consumption towards renewable and
clean energy sources. All their facilities use energy-efficient LED
lighting. They have also introduced energy-efficient
machinery like agitators into the manufacturing process.
WATER MANAGEMENT
With global climate change increasingly causing environmental
degradation, India is facing a crisis within the availability of
freshwater. Conservation is important to combating the depletion of
this precious restheirce and has, thus, ranked high on their list of
environmental sustainability goals. They reduce, recycle and reuse
the highly pure water they have for his or her manufacturing
processes. Rainwater harvesting is additionally wiped out non-
production areas like administrative buildings and cafeterias.
Safe water plants Laurus installed safe drink plants in Munnaluru
village in Krishna district and Dibbapalem village in Visakhapatnam
district, both in Andhra Pradesh, with capacities of two,000
litres/hector and 4,000 litres/hector respectively. The plants provide
safe beverage for a population of 1,000 in Munnaluru and 500 in
Dibbapalem.

WASTE MANAGEMENT.
They strive to scale back the quantity of waste they generate
and make sure that what they produce is reused or recycled – either
for the identical purpose or for a secondary use. Their sites adjust
to all applicable health, safety and environmental requirements and
ensure waste materials are sent for disposal within the most
sustainable manner. They suits all the local and national
regulations, additionally to adopting global standards in safe
handling and disposal of emissions and effluents. Additionally to
direct emissions, they also target indirect emissions like pollution
from employees commuting to office etc. Free bus transportation
and carpooling help us reduce carbon emissions. They enctheirage
zero waste matter in their cafeterias and whatever little gets wasted
is processed to be used as compost for plantations at their
manufacturing facilities
EDUCATION SECTOR
Acting responsibly and giving back to the society are important to
the way they do business. They feel that devoting resources to offer
assistance and aid in the improvement of people's lives and
livelihoods is a good idea.

MoU with Krishna University

Krishna University has signed a Memorandum of Understanding.
They have a Memorandum of Understanding with Krishna University.
In the first three semesters of university, students get theoretical
instruction, and in the fourth semester, they do an internship at
Laurus Labs. They are paid a stipend of $5,000 a month. They provide
full-time employment to good achievers once they complete their
Masters in Science (M.Sc.) degree. The intern has the option of
joining us or going elsewhere.

MoU with Gitam University

They signed a Memorandum of Understanding with Gitam University
to construct a five-year integrated M.Sc. programme that includes
classroom study for 75 percent of the time and an internship at
Laurus Labs for the remaining 25%. They repay Gitam's tuition price
and provide students with a $5,000 monthly stipend during the
programme. Students may be given full-time work with Laurus Labs
at the end of the programme based on their performance, which
they may accept, or they may opt to seek a career elsewhere.
STRENGTHS AND WEAKNESS OF LAURUS LABS

STRENGTHS

• Their main strength lies in the field of API, they have leadership
in APIs in elect, high-growth therapeutic areas

• They also have strong R&D capabilities and process chemistry

skills.

• They have Industry-leading and modern manufacturing facilities

• Long-standing relationships with multinational companies

• Experienced management team and qualified operational

personnel
• Established track record of delivering growth.

WEAKNESS

• Companies with growing costs YoY for long run projects

• Companies that Declared ends up in Past One week,

Showing Declining profits YoY OR QOQ (subscription)

• Decline in Quarterly profits with falling ratio (YoY).

• Foreign exchange fluctuation risk

CONTRIBUTION TO PHARMACEUTICAL INDUSTRY.
Indian pharmaceutical company Laurus Labs Ltd. plans to spend as
much as 15 billion rupees ($202 million) over the next 24 months to
expand its production capacity, according to its chief executive
officer.

The pharmaceutical sector is the top performer in India’s $2.1 trillion

equity market this year after the corona virus pandemic turned global
investors’ spotlight on health-care companies. Laurus, which supplies
ingredients used in antiretrovirals to treat HIV, has seen its stock
surge 350 per cent so far in 2020, the second-biggest gain on the 69-
member S&P BSE Healthcare Index, which is up 44 per cent.
The capital expenditure will be funded through a mix of internal
accruals and some external debt, Chava said.

Laurus Labs is a global supplier of antiretroviral APIs and

intermediates. Oncology is one of its core areas in the segment and it
plans to expand its portfolio by focusing on molecules in diabetes,
ophthalmology, and cardiovascular therapy.
 CONCLULSION
The project allowed some conclusions to be drawn on the basis of
analysis that was done in the data collected.

The data clearly indicated that Laurus labs are growing rapidly and
the sudden boom was because of COVID-19, it was the period when
the company rose. The company’s strategy also played an important
role, they were striving for excellence with sustainability.

Laurus labs strives to be the most renowned pharmaceutical and

biotechnology firm in the world, with a clear focus on their key areas
of growth: APIs.

The company is performing well, the growth of the company is

immense, it is also focusing on expanding the activities of company in
next 24months.

The study also proves that the company is maintaining long standing
relations with multinational companies which is crucial for a company
to sustain and expand its operations.
 SOURCES
• https://www.lauruslabs.com/
• https://www.careratings.com/upload/CompanyFiles/PR/24062021082138_Laurus_Labs_Limite
d.pdf
• https://www.livemint.com/companies/news/laurus-labs-buys-73-stake-in-biotech-firm-
richcore-lifesciences-for-rs247-crore-11606311893776.html
• https://www.lauruslabs.com/Investors/PDF/Disclosures/Annual-Report-FY-2020-21.pdf
• https://economictimes.indiatimes.com/laurus-labs-ltd/infocompanybackground/companyid-
61545.cms