Piramal Group At A Glance

– A family business with roots in textile manufacturing, dating back to 1840s
– Diversified into pharmaceuticals, financial services, healthcare insight and analytics, glass manufacturing and real estate
– Headquartered in Mumbai, with offices in 30 countries and brand presence in over 100 markets
– Employs around 10,000 people

Portfolio includes:
– Pharmaceuticals
– Financial services
– Healthcare insight and analytics
– Glass packaging
– Real estate

Selling Nicholas Lab to Abbott:
– Abott Labs agreed to buy Piramal’s domestic formulations business in May 2010
– Deal was valued at US$3.8bn

Major Pharma Acquisitions:
2012
– Acquired Massachusetts-based health information provider Decision Resources for US$635mn

2015
– Bought babycare brand Little’s
– Acquired five trademark rights for India from Organon India Pvt Ltd and MSD BV
– Acquired Coldstream Laboratories, a US-based CDMO

2016
– Purchased 5 injectable anesthesia and pain management brands from Janssen
– Acquired four brands from Pfizer
– Acquired Ash Stevens Inc, a US-based CDMO

2017
– Bought portfolio of drugs from UK-based Mallinckrodt LLC for US$171m

IDFC-Shriram Merger Called Off:
– A proposed merger of IDFC and Shriram Group was called off in Oct 2017
– Both cmpanies announced plans in Jul 2017
– The $12bn merger plan was discontinued due to differences in swap ratios
– Shriram has certain unique capabilities which nobody else has

Growth:
– Pharma is a difficult market
– Normally Financial Services grows at 2.5 times of GDP growth
– 20% is the average growth rate for Financial Services
– Current loan book is $6bn
– Loan book to reach $15bn by 2020

Profile of Ajay Piramal:
– Took over the reins of Piramal Group in 1984 (aged 29)
– Went on to build the company into a pharmaceutical empire through acquisitions
– Under his leadership, the group evolved from a textile-centric business to a conglomerate worth around US$10 bn
– Graduated from Jain Hind College, Bombay University with B.Sc (Hons) degree
– Holds a Masters in Management studies from Jamnalal Bajaj Institute of Management Studies
– Advanced Management Programme, Harvard Business School
– Conferred with an Honorary Doctorate Degree in Philosophy by Amity University
– Asia Business Leader of the year 2017

– 90% of his acquisitions have created value for his shareholders
– Always followed ethical and value based approach
– Travel the path less travelled because that’s when you can make really good money
– Leadership based on values
– We have to do what’s in the best interest of shareholders, employees and customers
– People make the difference
– Simplify business decisions
– Continioulsly take risks within certain boundaries
– Both daughter and son are highly qualified

Notes:
– There will always be competition. Piramal aims to be among leaders in housing finance business
– Profitability of Financial Services ahead of Pharma Business
– Good possibility financial services will overtake pharma
– 80% of the real estate players may not survive

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