30-year Journey of Piramal Enterprises

Prior to 1988, the Group was involved in Textile and other businesses. Since the acquisition of Nicholas Laboratories in 1988, the company reinvented itself multiple times, constantly evolved and grew, with a clear objective of consistently creating significant value for all its stakeholders.

The entry into pharmaceuticals was a contrarian move by the Group. This was because at that time, most global pharmaceutical companies were exiting India due to its challenging business environment and unfriendly patent regime.

In the last 30 years, PEL has undergone multiple rounds of transformation, which has helped it grow manifold and stand strong in the ever-changing economic environment. The Company had entered the pharma industry, grew from 48 th rank in 1988 to one of the Top 3 pharma players by 2010 and sold the Domestic Formulations business for a record valuation and later also entered the Financial Services business. Today, apart from growing the remaining Pharma businesses, the Company has also created a large, diversified and high quality Financial Services platform. Thus, Piramal Enterprises has today emerged as one of the large, well-established and diversified conglomerates of India.

Exited Textile business and entered Pharma

  • In the early 1980s Mr. Ajay Piramal took the leadership of the Piramal Group
  • Entered the Pharma space through the acquisition of Nicholas Laboratories in 1988
  • Nicholas Piramal was ranked 48th in the industry

`6Cr

MCAP (AS ON JUNE 30, 1988)

`19Cr

REVENUE (FY1988)

`1Cr

PAT (FY1988)

Created one of the leading Indian Pharma companies

  • Series of M&As, JVs and alliances and various organic initiatives to grow Pharma business
  • Sold the Domestic Formulations business to Abbott in 2010 for US$3.8 Billion at 9x Sales and 30x EBITDA
  • Grew and sold Diagnostic Services to Super Religare Laboratories
  • Series of acquisitions and organic initiatives enabled the Company to grow Domestic Formulations OTC, Pharma Solutions, Critical Care and Diagnostics Services businesses

`8,712Cr

MCAP (AS ON MARCH 31, 2011)

`3,624 Cr

REVENUE (FY2011)

`482Cr

PAT (FY2011)

FY2011 CORPORATE STRUCTURE: PIRAMAL HEALTHCARE

PHARMA
SOLUTIONS

`1,021Cr

REVENUE

CRITICAL
CARE

`338Cr

REVENUE

DOMESTIC
FORMULATIONS

`2,000Cr1

REVENUE

OTC

`196Cr

REVENUE

India NCE

R&D BASED OUT OF

MUMBAI

DIAGNOSTIC
SERVICES

`206Cr1

REVENUE

Continued Business

Remaining healthcare businesses contributed 40% of revenues in FY2010

Exited Business

Sold Domestic Formulations business for US$3.8 billion (@30x EBITDA and 9x Sales) to Abbott

Sold Diagnostic Services business for ₹ 600 Cr to Super Religare Labs

REVENUE2(IN ` CR)

28% 21-year CAGR

  • FY1989 19
  • FY1993103
  • FY1998535
  • FY20031,367
  • FY20103,624

NET PROFIT2(IN ` CR)

32% 21-year CAGR

  • FY1989 1
  • FY199310
  • FY199857
  • FY2003116
  • FY2010482

Built a strong Financial Services business and scaled up the balance Pharma business

  • Created an end-to-end Real Estate developer financing model and a sector agnostic Corporate Finance Group platform
  • Acquired stakes in Shriram Group
  • Strengthened retail financing by launching Housing Finance
  • Launched Emerging Corporate Lending for mid-sized and emerging businesses
  • Scaled up the remaining Global Pharma and India Consumer Products business
  • Entered US-based Healthcare Insight & Analytics business by acquiring DRG
  • Sold ~11% stake in Vodafone for ₹ 8,900 Crore, generating an IRR of 19%

`44,002 Cr

MCAP (AS ON MARCH 31, 2018)

`10,639 Cr

REVENUE (FY2018)

`1,551 Cr

NORMALISED PAT* (FY2018)

FY2018 CORPORATE STRUCTURE: PIRAMAL ENTERPRISES

FINANCIAL SERVICES

PHARMA

HEALTHCARE INSIGHT & ANALYTICS

RE Whosale Lending

Loan Book ₹ 31,833 Cr

Global Pharma

Revenue ₹ 3,976 Cr

Decision Resources Group

Revenue ₹ 1,209 Cr

Corporate Finance Group

Loan Book ₹ 8,209 Cr

India Consumer Products

Revenue ₹ 346 Cr

Emerging Corporate Lending

Loan Book ₹ 916 Cr

Housing Finance

Loan Book ₹ 1,210 Cr

Alternative AUM

Loan Book ₹ 7,620 Cr

Investments in Shriram

Invested ₹ 4,583 Cr

India Resurgence Fund

(for Distressed Assets)

REVENUE1(IN ` CR)

29% 6-year CAGR

  • FY2012 2,352
  • FY20133,544
  • FY20144,503
  • FY20155,123
  • FY20166,381
  • FY20178,547
  • FY201810,639

NORMALISED NET PROFIT1,2,3(IN ` CR)

55% 5-year CAGR

  • FY2015112
  • FY2013-227
  • FY2014-501
  • FY2015421
  • FY2016905
  • FY20171,252
  • FY20181,551

Future strategy

Post raising a billion dollar, below is our business-wise future strategy:

Creating a large and well-diversified Financial Services business of India, consistently generating strong risk-adjusted returns, while maintaining a high focus on asset quality

Further explore opportunity to grow in retail

Continue to grow real estate Loan Book by launching relevant, innovative and customised solutions

Grow products such as commercial and residential construction finance and LRD in real estate developer financing and moving down the risk curve while maintaining our ROEs

Continue to diversify Loan Book through focus on Corporate Finance Group (non-Real Estate) and Emerging Corporate Lending space

Scale up HFC by leveraging the Company’s strong relationships with developers and Brickex network

Maintain focus on asset quality while continuing to deliver higher risk adjusted ROEs

Continue to look for strong partners to ensure long-term patient capital for steady business growth

Optimise liability franchise:

  • Further deepen and diversify funding sources
  • Target credit rating improvement

Continue to enhance technology usage to improve efficiency through:

  • Use of data & analytics for better decision-making
  • Automation of systems and processes to improve Turnaround Time (TAT)
  • Analysing data of asset monitoring teams to automate the process of getting early warning signals

Creating a large, differentiated and profitable Global Pharma business with high focus on quality

GLOBAL PHARMA

Leverage significant capital invested into core infrastructure in the global pharma and India consumer segments

Continue to move up the value chain by focusing on differentiated branded generics products

Increase focus on offering end-to-end integrated solutions to customers to reduce time-to-market for product launches

Further improve distribution economics by leveraging our global distribution channels and tapping new markets to grow further rapidly

Improve margins through differentiated offerings, addition of niche and complex products, operating leverage and higher capacity utilisation

Continue to focus on quality and regulatory compliance framework

Expand organically to improve capacities and capabilities

Niche inorganic opportunities continue to remain a driver for growth

Creating a rapidly growing and profitable India Consumer Products business focusing on niche areas of routine disruptions

INDIA CONSUMER PRODUCTS

Continue to develop and acquire new brands and products

Improve margins by leveraging India-wide sales distribution network with the addition of new products

Tap e-commerce, rural, exports and alternate opportunities

Improve media effectiveness by using digital aggressively to reduce cost of communication reach

Transforming to grow and improve profitability

Drive revenue growth through broadening of large addressable market into payer/provider space in addition to our core life sciences customer base

Continue to transform our customer offering towards high-end value-added insights and solutions by leveraging proprietary data and analytics tools

Focus on “Build Once, Sell Many” products and accelerate launch of new products

Focus on the creation of syndicated products based on highly successful bespoke analytics and consulting services

Selectively enter new high-growth markets

Further invest in developing our consulting skills and talent pool

Improve margins by leveraging our India base