J.B. Chemicals & Pharmaceuticals Limited (JBCPL) has plans to setup a state-of-the-art manufacturing facility to exclusively manufacture its world-class Doktor Mom range of cough lozenges and tablets in Daman. This was announced at its Annual General Meeting in Mumbai today.
The manufacturing facility will be built as per international GMP standards at a projected cost of Rs. 15 crore and will be totally financed through internal accruals. Profits derived from this new facility will be completely tax free for the first five years from financial year 2003-04 and 30 per cent of the profits will be tax-free for the next five years. The strategic and tax efficient project is expected to go on stream by 2003 and will have a significant impact on bottom line and Earnings Per Share (EPS) in the years to come.
This is in line with Company's philosophy of maintaining highest quality standards through setting up new ultra modern manufacturing facilities that empowers the Company to meet its vision of reaching a turnover of around Rs. 500 crore by the year 2005. It will also enable the Company to cater to the increasing demand for the company's products in the domestic as well as international market, in the coming years.
The General Body / Shareholders also approved a final dividend of 50 per cent including a jubilee dividend of 15 per cent, taking the total dividend payout for FY0102 to 75 per cent, considering the already paid 25 per cent interim dividend. The total dividend payout claims Rs. 12.45 crore, which is higher by 41 per cent compared to the previous financial year.
JBCPL performed well on all fronts in 2001-02. The Company reported over 16 per cent increase in turnover to Rs. 276.02 crore and a 34.56 per cent increase in net profit to Rs. 42.05 crore, outperforming the pharmaceutical industry's sales growth of 10 per cent. JBCPL ranked #37 in the Indian pharmaceutical industry rankings by ORG-MARG RSA 2002 (previous ranking was #39). Exports grew over 20 per cent to Rs. 136 crore and now account for 49 per cent of total turnover. The Company received the CHEMEXCIL Award for Outstanding Export Performance for 2000-01 and commissioned a state-of-the-art 100 per cent Export-Oriented-Unit (EOU) at Panoli to manufacture large volume parentals, gels and ointments.
JBCPL's Doktor Mom brand was also adjudged the 'Most Trusted European Brand' in 2001-02 by Reader's Digest for the second successive year in the cough and cold category.
The Company also made several breakthroughs in research, discovering 20 new molecules in various therapeutic segments. The animal pharmacodynamic studies for anti-inflammatory activity have revealed promising results. An application for patenting these molecules has been filed in USA, South Africa among other countries, and the Director of the United States Patent and Trademark Office has already granted JBCPL a patent titled 'Heterocyclic Compounds For Therapeutic Use'.
The Company also launched three new formulations - Reducin XX, Ifistatin and Vasolip and filed several new patent applications in year 2001-02. Recently, JBCPL became only the second company in India to receive DCGI permission to market its Ofloxacin Once-Daily 400mg and 800mg formulations.
J.B. Mody, chairman (JBCPL) said, "We are confident of sustaining this steady growth and achieving a turnover of around Rs. 500 crore by 2005 by focusing on seven growth drivers: Expanding margin by launching value-added products; Product innovation in fast growing therapies; Leveraging top of mind brand recall of Unique and enhancing its brand equity; Improving prescription strike rates and expanding reach; Moving even mature products into the growth zone in line with the potential of the therapeutic segments; Creating state-of-the-art and tax efficient manufacturing facilities to meet future growth of business; and steadily Increasing the ratio of international business to domestic business."