MANGALAM DRUG & CHEM Share price

A. HISTORY AND BACKGROUNDMangalam Drugs & Organics Limited (Mangalam) is a part of the MangalamGroup promoted by Dhoot family in 1972 as Advent Pharma PrivateLimited with a view to set up a plant for manufacture of organic andinorganic chemicals. On April 1 1996 three other group companies i.e.Mangalam Organics Private Limited Shree Mangalam Pharma PrivateLimited and Mangalam Rasayan Private Limited were merged with AdventPharma Private Limited. Under the scheme of arrangement approved by theHonorable High Court Mumbai and Gujarat the entire chemical divisionof MOPL MRPL and SMPPL was transferred to and vested in MDOL as agoing concern free from all encumbrances and on that basis MDOL issuedone fully paid equity share of MDOL for every twenty fully paid equityshares of MOPL twelve fully paid equity shares of MDOL for every fivefully paid equity shares of MRPL and twenty-seven fully paid equityshares of MDOL for every five fully paid equity shares of SMPPL to theshare holders of MOPL MRPL and SMPPL respectively. Subsequent to thismerger the name of Advent Pharma Private Limited was changed toMangalam Drugs and Organics Private Limited. In September 1997 itbecame a deemed public limited company in terms of Section 43A of theCompanies Act 1956. In 2001 the company was converted into a fullfledged public limited company in terms of Special Resolution passed onAugust 10th 2001.The company has a state of art multi-product manufacturing facilitiesat Vapi in Gujarat and Sangamner in Maharashtra for production of bulkdrugs perfumery chemicals inorganic chemicals and disperse dyesintermediaries with a strong in-house Research and Development base.MDOL is an ISO 9001 certified company with a WHO GMP Certificate(since expired has applied for renewal) for its bulk drugsmanufacturing plant implying that the company carries out goodmanufacturing practices which is an important tool for promoting itsexports. It enjoys a strong brand name in the domestic market with overthree decades of experience in the industry with a wide and satisfiedcustomer base.Company's manufacturing facility at Plot No. 187 Vapi has receivedCertification of Suitability dated 27th September 2004 from EuropeanDirectorate for the Quality of Medicine (EDQM) for the production of anexisting product Nimesulide.In the year 2003-2004 the bulk drug production capacity of the Companywas increased from 350 MTPA to 600 MTPA. During the current year thecapacity is being further enhanced to 960 MTPA.Presently various bulkdrugs other drug intermediates and specialty chemicals such asNimesulide 4-M.E.P. Oranger Crystals and DTDBA are being produced inthe production facilities The cost pf expansion of capacity is Rs.975lacs and the same would be financed through internal accruals/unsecuredloans from promoters to the tune of Rs.325 lacs and balance amount ofRs.650 lacs being financed by Term Loan from State Bank of India. Thesaid term loan has been sanctioned by SBI and the company has commenceddrawal of funds.The company with its proven R & D process has the ability to improveprocesses through process innovation enhance process yields therebyreduce costs coupled with flexible production process places it in aposition of strength to cater to the requirement of its customers underone roof. Thus the company has been able to carve a place for itselfin the segments it is operating in.There exists an extremely good market for Anti-Malarial Drugs andAluminium Chloride being produced by the company. It intends to takeadvantage of the estimated demand supply gap in the market andcapitalize on its present strengths in quality experience andreputation. The Company has a stable and well-established customer baseand flexible distribution network for its products. Recently theGovernment of India has imposed an anti-dumping duty on import ofChloroquine Phosphate vide their Notification No. 14/3/2003- DGAD dated15th July 2004 which is likely to result in a major surge in demandfor the product in the local market.Vision Mission Quality Policy & Core Values:Vision:* To Be a well respected company in the businesses and geographies weoperate in and* To Become an admired bulk - drugs (API) manufacturing company withstrong focus on research.Mission:To achieve growth in business by* Attaining globally competitive cost levels* Enhancing the value we deliver to stakeholders* Commitments to corporate responsibilityEmployees are our strength and we will create an environment thatfosters achievement innovation and teamwork.Quality Policy:Mangalam is committed to customer satisfaction by offering qualityproducts and services meeting their specifications and expectations atcompetitive prices by customer - employee - vendor in involvement andadopting GOOD MANUFACTURING PRACTICES AND QUALITY MANAGEMENT SYSTEMS.It aims to create and maintain safe and healthy working conditionsprotect the environment strive for continual improvement of ourpersonnel quality and processes of products and meet regulatoryrequirements.Core Values:* Excellence* Innovation* Fairness* Transparency* Encouraging InitiativeKey Strengths:* Existing company with three decades of experience and expertise inits field* An established brand name* In-house manufacturing facilities with the state of art processquality control and R & D* Availability of Pilot Plant* Proven leadership* Extensive Marketing network in India and abroad* Proven R&D capabilities to develop efficient and cost effectiveprocess* ISO 9001 certification and WHO-GMP* Certification for CQP Plant atthe Vapi facility* Certification of Suitability from European Directorate for theQuality of Medicine (EDQM) for the production of an existing productNimesulide* WHO GMP Certificate has expired and the company has applied forrenewal of the same.PRODUCTS AND SERVICESProducts Manufactured by the company are:BULK DRUGS & INTERMEDIATESA] ANTIMALARIALCHLOROQUINE PHOSPHATE I.P./B.P.CHLOROQUINE SULPHATE I.P./B.P.AMODIAQUINE HCL USP/IPAMODIAQUINE BASE USPB] ANTIANALGESIC NIMESULIDE E.P./B.P.C] INTERMEDIATES 4 7 DICHLORO QUINOLINE 4 METHOXY ETHYL PHENOL META CHLORO ANILINE SUCCINIMIDE ORTHO PHENOXY ANILINE ORTHO PHENOXY METHANE SULFONYL ANILIDE 3 4 DICHLORO NITROBENZENE ORTHO METHOXY TOLUENE 4 (2-AMINOETHYL) MORPHOLINE PHENYL ETHYL CHLORIDEINORGANIC/ORGANIC CHEMICALSALUMINIUM CHLORIDE (ANHYDROUS)PHENOXY ETHANOLPERFUMERY CHEMICALSPHENYL ETHYL ALCOHOLPHENYL ETHYL METHYL ETHERPHENYL ETHYL ACETATEORANGER CRYSTALS (METHYL BETA NAPHTHYL KETONE)SPECIALITY CHEMICALSN.N-BIS (2-HYDROXY ETHYL) META TOLUIDINE. (MANGALAM-2)N-ETHYL-N-HYDROXY ETHYL-ANILINE. (MANGALAM-15)N-HYDROXY ETHYL-N-ETHYL META TOLUIDINE (MANGALAM-21)N.N.BIS (2-HYDROXY ETHYL) -PARA TOLUIDINE (MANGALAM-25)N.N-BIS (2-HYDROXY PROPYL)-PARA TOLUIDINE. (MANGALAM-26)DISPERSE DYE INTERMEDIATESBY PRODUCTSALUMINIUM CHLORIDE (SOLUTION)TRISODIUM PHOSPHATESODIUM THIO SULPHATEPRODUCTS UNDER DEVELOPMENTTRICLOSANTRICLORO CARBANILIDEAVO BENZONEOCTYL METHOXY CINNAMATE4 HYDROXY PHENYL ETHYL ALCOHOLMETA HYDROXY ACETOPHENONEARTISUNATEARTIMETERARTIETHERThe company is supplying its products to Indoco Remedies Ltd..NicholasPiramal India Ltd May (India) Laboratories Ltd Bayer PharmaceuticalsUnicure (India) P. Ltd Cipla The Karnataka state Agarbatthi etc.toname a few.Key milestonesKey milestones of Mangalam over the years are set out below:Year Milestone1977 First plant for Manufacture of perfumery chemicals at Plot No. 187 GIDC Vapi was started under the name "Advent Pharma Pvt. Ltd." (APPL)1981 A new plant under the name "Mangalam Rasayan Pvt. Ltd." (MRPL) was commissioned for manufacture of Anhydrous Aluminium Chloride1984 A new plant was commissioned under the name "Shree Mangalam Pharma Pvt. Ltd." (SMPPL) where higher manufacturing capacity of Aromatic Chemicals was created.1984 The facilities in APPL was re-organised to manufacture the first "Bulk Drug" in the group namely "Metronidazole I. P."1985 The capacity of Anhydrous Aluminium Chloride was doubled1987 Inorganic chemicals manufacturing capacities were expanded by putting up a new plant at Sangamner under the name "Mangalam Inorganics Pvt. Ltd." (MIPL)1989 A new plant was erected to manufacture Dyes Intermediates at Plot No. 1203 IIIrd Phase GIDC Vapi under the name Mangalam Organics Private Ltd. (MOPL)1991 Additional manufacturing capacity for perfumery chemicals was created under new plant of SMPPL1994 A New Plant was commissioned for manufacturing of Meta Chloro Aniline under MRPL1997 Scheme of arrangement between SMPPL MOPL and MRPL by transferring their entire Chemical Division to Mangalam Drugs & Organics Ltd.1999 A new product namely "Nimesulide" was launched from Plant at Plot No. 1203.2001 Two new products namely Amodiaquine Hydrochloride and Amodiaquine were launched from Plant at Plot No.1203.2002 WHO-GMP approval for Chloroquine Phosphate I.P./B.P.2002 Awarded ISO-9000-2000 Management System Certificate from DNV.2003 WHO-GMP approval for Amodiaquine Hydochloride and Amodiaquine U.S.P.2003 Awarded ISO-9000-2000 Management System Certificate from DNV.