“Simplifying the corporate structure will unlock greater value for shareholders and PPL is well positioned to become a global Indian brand in the pharmaceutical space,” according to Ajay Piramal, Chairman of Piramal Enterprises. He says PPL has an integrated business model, niche product offerings and a global team to ensure responsible growth in the future.
Ajay Piramal started in his family’s textile business at the age of 22 in 1977 but moved into the pharmaceutical industry leaving textiles and acquiring Nicholas Laboratories in 1988. He later acquired the companies Indian companies of several multinationals like Boehringer Mannheim, research unit of Hoechst Marion Roussel (India) in Mumbai, Rhone Poulenc India, etc., to become one of the top five pharmaceutical companies in India. During this growth journey, Nicholas Piramal became Piramal Healthcare and after entering the financial services industry was renamed Piramal Enterprises.
The main activities of PPL are contract development and manufacturing organization (CDMO), a complex hospital generics business and an India-focused consumer healthcare business, selling over-the-counter (OTC) products. . Additionally, it has a joint venture with Allergan, a leader in ophthalmology in the Indian formulations market. PPL’s CDMO business achieved revenues of ₹3,960 crore in FY22 and offers end-to-end development and manufacturing solutions across the drug lifecycle to innovators and generic companies . It has approximately 15 facilities around the world and approximately 25% of its customers are major multinational drug manufacturers. “We have also taken small steps in biotech CDMO by acquiring a small business in this field,” says Nandini Piramal.
“We expect an EBITDA CAGR of 26% for FY22-24, led by a sales CAGR of 10%/12% in the CDMO/CHG segment and strong operating leverage,” a report said. Motilal Oswal analyst on Piramal’s health business.
Its complex hospital generics business had revenue of ₹2,002 crore in FY22 and sells complex products such as inhaled anesthetics, intrathecal therapies for spasticity and pain management, injectable analgesics and anesthetics, injectable anti-infectives and other therapies. “This company has a strong pipeline with over 40 products in various stages of development and growth will be stronger in the future,” Nandini said.
The consumer healthcare business had a revenue of ₹741 crore for FY22 and is now among the top players in India with popular brands such as Polycrol antacid, Saridon and Lacto Calamine. “We have built on strong brands and launched 40 new products and 18 new SKUs, and are expanding distribution through modern retail stores and e-commerce channels,” Nandini says. “Going forward, we intend to continue to focus on growing our chosen business areas and will identify and secure inorganic and organic growth opportunities.”