hetero med solutions ltd. - company profile

7/30/2019 Hetero Med Solutions Ltd. - Company Profile

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Hetero Med

Solutions

Ltd.

January 2013



2

Executive Summary

Company Description

• Hetero Med Solutions Ltd. is a pharmacy retail chain operating mostly in South India and is headquartered

in Hyderabad

• It operates as a subsidiary of Hetero Drugs Ltd., an Indian pharmaceutical company

Key Products and Services

• It provides various pharmacy retail services such as assistance from qualified & trained pharmacists,

availability of a wide range of medicines, computerized billing system and patient education leaflets

• It provides various benefits to corporate customers and Hetero Family Card holders

SWOT Analysis• The company’s strong regional presence is one of its major strengths; however, its declining liquidity is one

of the key areas of concern

• The company

can

reap

significant

benefits

from

the

attractive

profit

margins

and

strong

growth

in

the

pharmacy retail segment

• However, the presence of a huge unorganized sector and counterfeit products may have an adverse affect

on the growth prospects of the organization

Financial Profile• Hetero Med Solutions Ltd. generated total revenues of INR a mn in the fiscal year (FY) 20‐‐ registering a y‐o‐

y increase of b per cent. It earned a net profit of INR c mn in FY 20‐‐ as compared to a net loss of INR d mn

in FY

20

‐‐

• The financial profile of the company includes the balance sheet and profit and loss account for FY 20‐‐, 20‐‐,

20‐‐ and 20‐‐ and the key ratios depicting the key financial figures for FY 20‐‐, 20‐‐ and 20‐‐, giving an insight

into the company's financial performance

Industry Analysis• Pharmacy retail market in India was estimated at INR e bn in FY 20‐‐ and is expected to grow at a CAGR of f

per cent to reach INR g bn by FY 20‐‐

• Market is distinctly fragmented into organized and unorganized players with the unorganized market being

valued at approximately INR h bn in 20‐‐, occupying i% of the total market, while organized market was

valued at approximately INR j bn representing k% of the market

• There will emerge a significant change in the market segmentation by 20‐‐ when organized retail will

capture approximately l% market from the current m% share

Competitive Landscape• Key

competitors

for

the

company

can

be

enlisted

as

MedPlus

Health

Services

Pvt.

Ltd.,

Muthu

Pharmacy

Pvt. Ltd.



3

Contents

Executive Summary

Factsheet

Offices &

Outlets

Pharmacy Retail Services

Key People

SWOT Analysis

Financial Profile

Industry Analysis

Competitive Landscape

Recent News

Appendix

Hetero Med

Solutions

Ltd.



4

SA M P L

E FactsheetBasic Information

• Hetero Med Solutions Ltd. (Hetero Pharmacy) is headquartered

in Hyderabad and is a pharmacy retail chain operating mostly in

South India

• It is a subsidiary of Hetero Drugs Ltd., an Indian pharmaceutical

company established in 19‐‐ which entered the pharmacy

services in 20‐‐ as part of its integration strategy

• Within a year of its launch, Hetero Pharmacy grew to a network

of over

a pharmacies

across

Andhra

Pradesh

• With the parent company being a leading player in API’s and

finished dosages, Hetero Pharmacy believes it can provide high

quality services to its customers

• It also has outlets at the Nizam’s Institute of Medical Sciences

(NIMS) Punjagutta,

Hyderabad

and

GMR

international

airport,

Hyderabad

• Hetero Pharmacy plans to reach b stores by 20‐‐

• It provides special benefits to corporate clients and customers

with ‘Hetero Family Card’

• Hetero Pharmacy provides free home delivery of medicines as

well as provides various offers on products being sold

Brief Description

Industry

Corporate Address

Tel No.

Fax No.

Website

Year of Incorporation

Ownership

Revenue

Fiscal Year End

Auditor

Key Competitors



5

Outlets – India (x/y)

SAMPLE

Region /State No. of Outlets

Region 1 ‐‐

Serial No. Area Phone Address

1 Area 1

Region /State No. of Outlets

Region 2 ‐‐

Serial No. Area Phone Address

1 Area 1

2 Area 2

3 Area 3

4 Area 4

5 Area 5

6 Area 6

7 Area 7

8 Area 8

9 Area 9

10 Area

10

11 Area 11

12 Area 12



SA M P L

E Ratio AnalysisKey Ratios

Source: Netscribes Analysis Note: y ‐o‐y change in Profitability and Cost Ratios is represented in percentage points

Key Ratio Analysis

Improved Decline

• The company’s operating margin increased by a percentage

points y‐o‐y reaching b per cent in FY 20‐‐; the increase could be

attributed to the management’s increasing emphasis on

improving profitability by exercising inefficient cost management

initiatives compared to that of the previous year

• The return on equity increased by c percentage points y‐o‐y

reaching d per cent in FY 20‐‐ indicating the company’s ability to

use the reinvested earnings to generate additional profits

• Current ratio of the company decreased by e per cent y‐o‐y

reaching f in FY 20‐‐, indicating poor cash flow management

• Its cash ratio decreased by g per cent y‐o‐y to reach h in FY 20‐‐,

indicating the company’s inability to pay‐off current obligations

with its most liquid short term assets as compared to the

previous fiscal

year

• Debt to equity ratio of the company increased by i per cent y‐o‐y

reaching j in FY 20‐‐, indicating that the company is leveraging

itself which is likely to increase its interest expenses

• The company’s asset turnover ratio increased by k per cent y‐o‐y

to reach l in FY 20‐‐, indicating increased ability of the company

to generate

sales

revenue

with

its

total

assets

as

compared

to

the previous fiscal year

• The company’s working capital turnover ratio increased by m

per cent reaching n in FY 20‐‐ indicating that the company is

being able to finance its day‐to‐day operations efficiently

Particulars

y‐o‐y

change

(20‐‐

)

20‐‐ 20‐‐ 20‐‐ 20‐‐

Profitability RatiosOperating Margin

Net Margin

Profit Before Tax Margin

Return on Equity

Return

on

Capital

EmployedReturn on Working Capital

Return on Assets

Return on Fixed Assets

Cost RatiosOperating costs (% of Sales)

Administration

costs

(%

of

Sales)Interest costs (% of Sales)

Liquidity RatiosCurrent Ratio

Cash Ratio

Leverage RatiosDebt

to

Equity

RatioDebt to Capital Ratio

Interest Coverage Ratio

Efficiency RatiosFixed Asset Turnover

Asset Turnover

Current Asset Turnover

Working Capital Turnover

Capital Employed Turnover



SA M P L

E Industry AnalysisPharmacy Retail Industry – Overview

• Pharmacy retail market in India was estimated at INR a bn in FY

20‐‐ and is expected to grow at a CAGR of b per cent to reach

INR c bn

by

FY

20

‐‐

• Indian pharmacy retail market is ranked cth in terms of value and

dth in terms of volume

There are approximately e stores across the country

• Market is distinctly fragmented into organized and unorganized

players

• In 20

‐‐, the

unorganized

market

was

valued

at

approximately

INR

f bn,

occupying g% of the total market while organized market was valued at

approximately INR h bn representing i% of the market

Unorganized pharmacy retail market is growing at a CAGR of j% while

organized pharmacy retail is expected to grow at a CAGR of k%

There will emerge a significant change in the market segmentation by 20‐

‐ when organized retail will capture approximately l% market from the

current m% share

• In India,

pharmacies

are

the

dominant

distribution

channel

generating approximately n% of the overall pharmaceutical sales

• Currently, approximately o% of drug sales is through the retail

markets, while institutional sales are as low as p%

• Some of the key drivers of this market are growth in the

pharmaceuticals sector, increasing healthcare spending,

changing disease

profile

and

growth

in

the

OTC

segment

• Some of the major trends observed in the pharmacy retail

market are loyalty schemes, value‐added‐services, increasing

tracking of counterfeit drugs, tele consultation services, rural

expansion and health insurance plans being made available in

pharmacy outlets

INR bn

0

X%

2016e2015e2014e2013e2012e2011

Market Size & Growth

Market Segmentation

%

0%

2016e2015e2014e2013e2012e2011

Category 2Category 1



Competitive Landscape (/)

Company Name Description

Player 1• Player 1 owns India’s first exclusive hospital pharmacy chain – abc, and operates x pharmacies throughout the

country

• Outlets are in franchisee model with store formats including high street stores and shop in shops

• Programme offers a premium range of gifts that translate to an effective discount of 20‐30% on medicinal

purchases• Gives discount of v% on medicines and w% on general products

• Provides free lab test vouchers on purchase of medicines

• Launched an ecommerce site abc.com that provides a catalog of more than m Indian and international brands

Player 2• Player 2 has a strong presence in Chennai with s outlets spread across the city

• It is the first pharmacy chain store to be approved by Pharmacy Council to give practical training to pharmacist

students under regulation x of Education Regulation 19‐‐

• It has as many as r stockists

• Provides free blood pressure and weight and height check ups at outlets

• Gives free home delivery for all customers

• Starting from early 19‐‐, the company has so far organized u free medical camps till date across Tamil Nadu

SAMPLE


http://slidepdf.com/reader/full/hetero-med-solutions-ltd-company-profile 9/119SAMPLE

Competitive Landscape (/)Competitive Scenario

Company Name Hetero Player 1 Player 2

Financial Information (INR mn – FY 20‐‐)

Total Revenue

Net Profit/(loss)

Number of Outlets

Number of Stores

Geographic Presence

Andhra Pradesh

Tamil Nadu

Karnataka

West Bengal

Maharashtra

Rest of India

Present Not Present H: High; L: Low; M: Medium



Thank you for the attention

Hetero Med Solutions Ltd. is a part of Netscribes’ Healthcare Company Profile Series.

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