“Streamlining the corporate structure will unlock greater shareholder value and PPL is well poised to be a global Indian brand in the pharmaceutical space,” according to Ajay Piramal, President of Piramal Enterprises. He says that PPL has an integrated business model, niche product offerings and a global team to drive responsible growth in the future.
Ajay Piramal started in his family’s textile business at age 22 in 1977, but moved into the pharmaceutical business by exiting textiles and acquiring Nicholas Laboratories in 1988. He later acquired Indian businesses from various multinationals such as Boehringer Mannheim, a research unit from Hoechst Marion Roussel (India) in Mumbai, Rhone Poulenc India, etc., to grow as one of the top five pharmaceutical companies in India. During that growth journey, Nicholas Piramal became Piramal Healthcare and, after entering the financial services business, was renamed Piramal Enterprises.
PPL’s core businesses are in the Contract Development and Manufacturing Organization (CDMO), the complex hospital generics business, and an India-focused consumer healthcare business, selling over-the-counter (OTC) products. In addition, it has a joint venture with Allergan, the ophthalmology leader in the Indian formulation market. PPL’s CDMO business had revenue of Rs 3,960 crore in FY22 and provides end-to-end development and manufacturing solutions across the drug lifecycle for innovative and generic companies. It has around 15 facilities around the world and around 25% of its customers are major multinational drug manufacturers. “We’ve also taken baby steps in biotech CDMO by acquiring a small company in this space,” says Nandini Piramal.
“We expect an EBITDA CAGR of 26% for FY22-24, led by a 10%/12% CAGR of sales in the CDMO/CHG segment and strong operating leverage,” says an analyst report. by Motilal Oswal about Piramal’s healthcare business.
Its complex hospital generics business had revenue of ₹2002 crore in FY22 and sells complex products such as inhalation anesthetics, intrathecal therapies for spasticity and pain control, injectable analgesics and anesthetics, injectable anti-infectives and other therapies. . “This business has a strong portfolio with more than 40 products in various stages of development and growth will be stronger in the future,” says Nandini.
The consumer healthcare business had FY22 revenue of ₹741 crore and is now among the biggest players in India with popular brands such as Polycrol antacid, Saridon and Lacto Calamine. “We’ve built on powerful brands and launched 40 new products and 18 new SKUs, and we’re expanding distribution into modern retail stores and e-commerce channels,” says Nandini. “Going forward, we intend to maintain focus on growing our chosen business lines and identify and secure organic and inorganic growth opportunities.”