Procter & Gamble Health Ltd.CMP - 5685 - Looks good for long term investment purpose...
Procter & Gamble Health Ltd
About
P&G Health Ltd (formerly Procter & Gamble td) (erstwhile Merck Limited) is engaged in the business of manufacturing and marketing of pharmaceuticals and chemicals.
Key Points
Strong Brand Portfolio
Company is one the India’s largest VMS companies, manufacturing and marketing vitamins, minerals and supplements. It has a strong portfolio of various pharma brands such as Evion, Neurobion, Seven seas, Nasivion, Polybion, Cosome and Livogen.
Geographical Presence
Company’s products are sold in ~180 countries and territories. Around 90% revenue comes from the India and 10% from outside India markets.
Manufacturing Facility
The company owns and operates 1 manufacturing facility in Goa.
Change in Distribution Model
During FY23, Co. transitioned from its previous go-to-market model, which was serviced via carrying and forward agents, to a new distributor led go-to-market model by appointing distributors. This transition was completed in April 2023. It also strengthened its partnerships across omni channel stores, increasing the availability and access of its brands across online and offline platforms.
Customer Awareness Programs
On World Diabetes Day 2022, the Company launched a large-scale collective awareness effort on Peripheral Neuropathy which was recognized among India’s top diabetes campaigns by Obesity International. On World Iron Deficiency Day, the Company in partnership with FOGSI initiated the 'Na Na Anemia Bus Yatra', a 40-day Bus Yatra across 20 cities and 5 states of India to create awareness on Iron Deficiency.
Discontinuation of Injections Portfolio
Company plans to source the injections portfolio of its products from a contract manufacturer, hence co. decided to discontinue production of injections at its manufacturing plant in Goa effective September 30, 2023. This step will help co. to achieve cost efficiency and supply optimization.
Acquisition By P&G
In 2018, the company (erstwhile Merck Ltd) was acquired by Procter & Gamble Company of USA as a part of a global transaction to acquire Merck KGaA's international consumer healthcare business for a total of 4.2 billion USD. P&G acquired ~51.8% stake of Merck for ~1,300 Crs INR.
Royalty Expenses
The company pays royalty expenses to its parent company The Procter & Gamble Company, USA. It paid 24 Cr in FY23 compared to ~22 Cr in FY22.
Source: Screener.in
This is just to boost my confidence. No Suggestions for buying. I will keep checking and updating my mistake if last post gone wrong...
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