Alkem Laborataries

Group Project

GROUP 6
Prashant Makwana Swapnilkumar Prajapati Rakshit Patel
Garima Rao Rutva Patel Dhruvi Patel
 INDEX

SR NO Content Page
1 Executive Summary
2 Introduction
3 Key Facts, Financials, Reviews
4 External and Internal Analysis
5 Competencies
6 Corporate strategies
7 Implementation plan
8 Conclusion
9 References
 Executive Summary - Alkem Laboratories

Our examination of Alkem Laboratories, a significant participant in the pharmaceutical sector,

demonstrates a thorough comprehension of its financial performance and strategic environment.

Group:

Our team, composed of diverse roles, embarked on a thorough exploration of Alkem Laboratories,
focusing on its competitors, corporate strategies, internal and external analysis of Alkem Industry and
its Financial and performance overview and concluding its performance and rank in the market.

Above discussed topic has been divided into each group member and contributing equally to the
success of the project.

Business and Industry Overview:

Alkem Laboratories Limited is a pharmaceutical firm involved in the research, production, and global
distribution of pharmaceutical and nutraceutical products. It works in the fiercely competitive
pharmaceutical and healthcare industries, which are distinguished by strict laws, ongoing innovation,
and global importance. Consolidated revenue of the company was Rs 115,993/- Million in FY 2022-
23.

India is a major pharmaceutical player that supplies 20% of the world's supply and more than 60% of
immunizations globally. The healthcare sector in the nation is projected to grow from $280 billion in
2020 to $372 billion in 2022.

Alkem's product portfolio, R&D capacity, regulatory compliance, and marketing approaches all
influence its competitive position. Investments in R&D, robust distribution networks, and regulatory
flexibility are essential to the industry's success. The snapshot of the top 11 pharmaceutical
companies in the industry that is attached shows key financial metrics. Alkem, a significant player in
the Indian market, is competing with both domestic and foreign companies.
Vision, Mission, and Strategies:

Vision:

To achieve value driven leadership in Indian Health Care Industry and

beyond through:

1. Quality that is infinite

2. Service that cares.

3. Hard work that endures.

Mission:

We are committed to sustaining and enabling people the world over to lead a healthier life by
increasing global access to our high-quality healthcare solutions.

Current years progress in achieving Vision and Mission:

Alkem Laboratories has made significant strides toward achieving its goals. Revenues almost doubled
over the previous four years, hitting Rs. 9,054 crores in 2022–2023. A significant improvement in
profits was demonstrated by higher EBITDA margins, which came to Rs. 1,556.84 crores. The
company's EPS margins increased significantly as well, reaching Rs. 94.88 crores.

Current Strategies:

The company outlines strategic initiatives to grow the prescriber network and expand flagship brands
to solidify its leading position in India's acute healthcare segments. Furthermore, expanding the base
of prescribers and launching novel products are the main goals for chronic segments to ensure long-
term growth.

The strategy calls for leveraging strategic alliances and Sales Force Effectiveness programs to
increase the company's presence in the US and other foreign markets. In order to maintain
compliance with international cGMP standards in manufacturing and research facilities, the company
pledges to continue its R&D efforts. This includes improving abbreviated new drug application filings
for the US and creating differentiated portfolios for important markets.

Business Focus:

Alkem Laboratories primarily focuses on the following areas:

Pharmaceutical Research and Development: The business makes R&D investments to create cutting-
edge pharmaceutical products for a range of therapeutic areas.

Production and Manufacturing: Alkem produces a wide range of premium pharmaceuticals and
healthcare products at its cutting-edge manufacturing facilities.

Market Expansion: By introducing new products and forming strategic alliances or collaborations,
Alkem aims to increase its market presence both domestically and abroad.

Customer satisfaction: It is Alkem's top priority. To this end, it offers patients and healthcare
professionals high-quality, reasonably priced products along with first-rate customer service.

Financial Overview

Alkem Laboratories has demonstrated strong financial performance over the past five years, with
revenue growing at a 9.4% CAGR and reaching RS 115,993 million in FY 2023. With an average profit
margin of 8.5%, the company's net profit increased steadily, ending the most recent fiscal year at RS
9,842 million. Better current ratio and lower net debt were the results of efficient cash flow
management.

Alkem reduced overall debt, improved the debt-to-equity ratio, and strengthened financial stability
through prudent debt management. Consistent investment in research and development, amounting
to ₹5,394 million (4.7% of revenue) in FY 2022–2023, demonstrates the company's dedication to
innovation and guarantees a competitive and diverse product line.

Key Performance Measures:

The business excels in customer satisfaction thanks to a culture of constant improvement and a
dedication to high standards. With a significant 21.7% market share in the US and a dominant 70.3%
market share in India, it shows effective market penetration. Robust cost control strategies ensure
operational efficiency while minimizing the impact on earnings.

Learning initiatives, skill-development programs, and other engagement strategies are used to
promote employee engagement. The business actively engages in Corporate Social Responsibility,
making contributions to international markets' rural development, sports, education, and healthcare
sectors.
References

Alkem Laboratories. (n.d.). https://www.alkemlabs.com/annual-reports.php

Rating Rationale. (n.d.). https://www.crisil.com/mnt/winshare/Ratings/RatingList/RatingDocs/

AlkemLaboratoriesLimited_September%2022,%202023_RR_326295.html

MoneyControl Alkem Laboratories - Competition Comparison.

https://www.moneycontrol.com/competition/alkemlaboratories/comparison/AL05