Vivimed Labs Ltd - Stock Valuation and Financial Performance

Vivimed Labs Ltd was originally incorporated as Emgi Pharmaceuticals & Chemicals Private Limited on 22-09-1988 with Registrar of Companies of Karnataka, Bangalore and subsequently converted into a public limited company on April 21, 1994. The name of the company has been changed to Vivimed Labs Limited on  April 22,1997.

The company was originally promoted by A. M. Rao. In 1989  Santosh Varalwar and  Subhash Varalwar acquired Emgi Pharmaceuticals and Chemicals Limited and commenced manufacturing of bulk drugs in 1991.

The company’s manufacturing unit is located at Bidar, Karnataka, where it was originally engaged in the manufacturing of Active Pharmaceutical Ingredients (APIs) and bulk drugs like Ibuprofen etc. However, due to downward price movement in the products of the company during 1995, it gradually moved over to manufacturing specialty chemicals and cosmetic ingredients like Triclosan, Avis etc. catering to global and domestic markets.

Vivimed started production of Triclosan with a very small capacity of 5 MT p.a. in the year 1999 and increased its capacity to 225 MT p.a. over a period of next 5 years. The production capacity was further doubled by adding one more production block in March 2004.

Touching lives on another front, they are fighting microbes in home. In the kitchen, in the linen and more, their antimicrobials deliver clean living. Their high-end chemistry also coats the screen of mobile telephone and car’s photochromatic windscreen. For the photographic industry they remain a timeless answer. Their photosynthetic and photographic chemicals have been products of choice for decades now.

Product range of the company includes:

• Triclosan  VIV 20
• Avis (Avo benzone)
• Calcium Glycero Phosphate (CaGP)
• Chlorphenesin – Cosvat (Anti Fungal)
• NDGA (Anti-oxidant)
• Hair care
• Oral care
• Anti microbial
• Skin care
• Sun care

Milestones:

1988 & 1989•  Incorporated on September 22, 1988•  Death of original promoter Mr. A. M. Rao•  Acquired by Mr. Santosh Varalwar and Mr. Subhash Varalwar

1990 •  Commenced production of Non-Steroidal Anti-Inflammatory Drug (NSAID) – IBUPROFEN.

1994 •  Diversification and expansion of product mix by adding other APIs viz. Chlorzoxazone (Skeletal disorders), Nalidixic Acid (Anti-diarrheas) and Flucanazole (Anti-fungal).

1995 •  Diversification into specialty chemicals by production of Triclosan.

1996 •  R&D was commenced with facilities having an integrated instrumentation for organicsynthesis, Microbiology and pre-formulation studies.

1997 •  Process Innovation of Anti-bacterial and clearance of innovative route of synthesis for Triclosan.• Grant of patent for VIV-20 (Triclosan) by the Indian Patents Office.1998 – 99• Qualified for supply to Unilever’s Asian locations after Audit of manufacturing facility by a team of Unilever Plc.•  Triclosan customer base expanded to UK, France, Germany as well as domestic market.

2002 •  Approved by Unilever group Companies in Asian/Middle & Far East Companies for usage of Enamel Protective Agent manufactured by the company in their oral care formulations.•  Developed Anti-fungal for usage in High-end cosmetic and pre-formulation blends.•  Vivimed emerges as a second chemical company located outside USA/Europe to get the US EPA’s registration for Triclosan as 99% ingredient.•  Vivimed’s Quality Management System gets ISO 9001:2000 certification.

2003 •  Signed Confidential Sale Agreement with HLL for R&D, scaling up and commercialization of product coded as A123.•  Commencement of EMS Audit for ISO 14001 certification.

2004 •  Introduced new products for anti-dandruff and skin care application•  Triclosan production capacity increased from 225 MT p.a. to 480 MT p.a.•  Developed novel synthetic process to manufacture a premium anti-oxidant and anti-cancer molecule branded as VINTOX

2012ʉۢ Vivimed launch Nisarg Soapnut at in-cosmetics, Barcelona.

2013• Vivimed Labs Limited signed an agreement to acquire Actavis Pharma Manufacturing Pvt. Ltd.’s solid oral dosage (“SOD”) facility in Alathur, Tamil Nadu, India. The facility acquired from its parent Actavis Holding Asia B.V., an affiliate of Actavis Inc.

2014 • Vivimed received the PIC/S (Pharmaceutical Inspection Convention and Pharmaceutical Inspection Co-operation Scheme) GMP (Good Manufacturing Practice) approval for one of its pharmaceuticals manufacturing facilities in Jeedimetla, Hyderabad for the supply of finished dosage formulations to the CIS (Commonwealth of Independent States) region.

Achievements/ recognition:

• ISO 9001:2000 and ISO14001