Research Report on Abbott India Ltd. on the basis of Company Profile, Management, Shareholding Pattern, SWOT Analysis, Competitive Analysis, and Way forward.

1. FINLATICS
REPORT ON ABBOTT INDIA LTD
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Prepared by Aditya Arora

2. COMPANY
OVERVIEW
Abbott India Ltd is one of the largest MNC
pharma companies operating in India. It is a
subsidiary of Abbott Laboratories of USA.
Abbott Laboratories held 75% stake in Abbott
India as on 31 March 2018. The company is
engaged in the discovery development
manufacture and marketing of
pharmaceutical diagnostic nutritional and
hospital products. They are having their
presence in both OTC drugs and formulations.
Their manufacturing facilities are located at
Verna in Goa.
Abbott India Ltd.is a healthcare company that
discovers, develops, manufactures and
markets various products in area of
Anesthesia, Animal Health, Anti-Infectives,
Cardiovascular, Diabetes Care, Hematology,
Immunodiagnostics and Clinical Chemistry,
Immunology, Metabolics, Molecular,
Neuroscience, Nutrition, Oncology, Pain Care,
Point of Care, Renal Care, Vascular, Virology.
The company has in-house development and
medical teams to undertake product and
clinical development tailored to the needs of
the Indian market.
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Rs 15511.05
CURRENT MARKET PRICE
BSE
Stock Data
Value Parameters

3. COMPANY
FINANCIALS
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Balance Sheet
Income Statement

4. SHAREHOLDING
PATTERN
Shareholding Summary Statement - Abbott India Ltd.
Shareholding Pattern - Abbott India Ltd.
04
Foreign Promoter
75%
General Public
14.6%
N Banks Mutual Funds
4.8%
Financial Institutions
1.3%
Others
2.7%
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5. MANAGEMENT
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Name Designation Qualification
Experience
(inyears)
Anisha
Motwani
Independent
Director
MBA / B.Sc. 28
Anil
Joseph
Managing
Director
MBA(Marketing & HR) /
B.Sc. in Mathematics
25
Shalini
Kamath
Independent
Director
MBA (HR &
Marketing)
23
Sudarshan
Jain
Independent
Director
MBA / B.Sc. in
Physics
35
Munir
Shaikh
Chairman & CEO
ICAEW (Institute of
Chartered Accountants in
England and Wales
52
Ambati
Venu
Non-Executive
Director
MBA / BE (Mechanical
Enginnering)
24
Kaiyomarz
Marfatia
Non-Executive
Director
LLB (Qualified law
professional)
36
Rajiv
Sonalker
Whole-time
Director & CFO
ICAI (Institute of
Chartered Accountants
of India)
28

6. SWOT ANALYSIS
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Strong distribution network – Over the years Abbott has built a
reliable distribution network that can reach majority of its potential
market.
Strong Brand Portfolio – Over the years Abbott has invested in
building a strong brand portfolio. The SWOT analysis of Abbott just
underlines this fact. This brand portfolio can be extremely useful if
the organization wants to expand into new product categories.
Skilled Employees Base - Abbott India Ltd employs over 2,600 people
and reaches customers through a wide network of 35 distribution
points, catering to over 4,500 stockists and 150,000 retail outlets.The
company has over 100 employees at a state-of-the-art formulation
plant at Verna, Goa.
Strong dealer community – It has built a culture among distributor &
dealers where the dealers not only promote company’s products but
also invest in training the sales team to explain to the customer how
he/she can extract the maximum benefits out of the products.
Merger & Acquisition: Successful track record of integrating
complimentary firms through mergers & acquisition. It has
successfully integrated number of technology companies in the past
few years to streamline its operations and to build a reliable supply
chain.
STRENGTHS of Abbott India Ltd. – Internal Strategic
Factors

7. SWOT ANALYSIS
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Good Returns on Capital Expenditure – Abbott Laboratories is
relatively successful at execution of new projects and generated good
returns on capital expenditure by building new revenue streams.
Superb Performance in New Markets – Abbott Laboratories has built
expertise at entering new markets and making success of them. The
expansion has helped the organization to build new revenue stream
and diversify the economic cycle risk in the markets it operates in.
Strong Experience in the industry - experience is the most important
thing not only in the medical industry but also in any industry you can
imagine of. As it has been operating for 129 years; it has developed a
strong experience base. Abbott can apply this experience for its
future investment and to introduce innovative products.
STRENGTHS of Abbott India Ltd. – Internal Strategic
Factors
2016 2017 2018 2019 2020
500,000
400,000
300,000
200,000
100,000
0
10.9%
10.7%
14.3%
11.1%
14.0%
420753379189341549296020269623
REVENUE ( Rs in LAKHS)
Revenue Growth 10.9%

8. SWOT ANALYSIS
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Limited success outside core business – Even though Abbott is one of
the leading organizations in its industry it has faced challenges in
moving to other product segments with its present culture.
Organization structure is only compatible with present business
model thus limiting expansion in adjacent product segments.
Not very good at product demand forecasting leading to higher rate
of missed opportunities compare to its competitors. One of the reason
why the days inventory is high compare to its competitors is that
Abbott is not very good at demand forecasting thus end up keeping
higher inventory both in-house and in channel.
Need more investment in new technologies. Given the scale of
expansion and different geographies the company is planning to
expand into, Abbott needs to put more money in technology to
integrate the processes across the board. Right now the investment in
technologies is not at par with the vision of the company.
Low R&D Expenses - after the year 2010, It has decreased its budget
on research & development. It may result to weaken R&D
department.
Financial planning is not done properly and efficiently. The current
asset ratio and liquid asset ratios suggest that the company can use
the cash more efficiently than what it is doing at present.
WEAKNESSES of Abbott India Ltd. – Internal Strategic
Factors

9. SWOT ANALYSIS
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New environmental policies – The new opportunities will create a
level playing field for all the players in the industry. It represent a
great opportunity for Abbott Laboratories to drive home its advantage
in new technology and gain market share in the new product
category.
Lower inflation rate – The low inflation rate bring more stability in
the market, enable credit at lower interest rate to the customers of
Abbott.
New trends in the consumer behavior can open up new market for the
Abbott. It provides a great opportunity for the organization to build
new revenue streams and diversify into new product categories too.
Abbott offers innovative products & services. The most products
across the medical devices and diagnostics. The nutrition product
division include Similac, Ensure, Pedialyte, Glucerna, FreeStyle Libre,
ZonePerfect, MitraClip, & i-STAT.
Stable free cash flow provides opportunities to invest in adjacent
product segments. With more cash in bank the company can invest in
new technologies as well as in new products segments. This should
open a window of opportunity for Abbott Laboratories in other
product categories.
OPPORTUNITIES of Abbott India Ltd. – External
Strategic Factors

10. SWOT ANALYSIS
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Intense competition – Stable profitability has increased the number
of players in the industry over last two years which has put downward
pressure on not only profitability but also on overall sales.
Growing strengths of local distributors also presents a threat in some
markets as the competition is paying higher margins to the local
distributors.
No regular supply of innovative products – Over the years the
company has developed numerous products but those are often
response to the development by other players. Secondly the supply of
new products is not regular thus leading to high and low swings in
the sales number over period of time.
Shortage of skilled workforce in certain global market represents a
threat to steady growth of profits for Abbott Laboratories in those
markets.
Exchange Rate Fluctuation - as it is a global company, it sells its
products and buys raw materials from other countries as well. A
negative change in the exchange rate may bring harm to its profit
growth.
THREATS of Abbott India Ltd. – External Strategic
Factors

11. COMPETITIVE
ANALYSIS
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Sun Pharmaceutical Industries Limited is an Indian multinational
pharmaceutical company headquartered in Mumbai, Maharashtra, that
manufactures and sells pharmaceutical formulations and active
pharmaceutical ingredients (APIs) primarily in India and the United
States. The company offers formulations in various therapeutic areas,
such as cardiology, psychiatry, neurology, gastroenterology and
diabetology. It also provides APIs such as warfarin, carbamazepine,
etodolac, and clorazepate, as well as anti-cancers, steroids, peptides,
sex hormones, and controlled substances.
0 25,000 50,000 75,000 100,000 125,000
Sun Pharma
Dr Reddys Labs
Divis Labs
Cipla
Aurobindo Pharm
Torrent Pharma
Lupin
Cadila Health
Abbott India
Alkem Lab
..............Market Cap. (Rs. cr.).................
MAJOR COMPETITORS

12. COMPETITIVE
ANALYSIS
11
Research Insight-2
Sun Pharmaceutical Industries Limited is an Indian multinational
pharmaceutical company headquartered in Mumbai, Maharashtra, that
manufactures and sells pharmaceutical formulations and active
pharmaceutical ingredients (APIs) primarily in India and the United
States. The company offers formulations in various therapeutic areas,
such as cardiology, psychiatry, neurology, gastroenterology and
diabetology. It also provides APIs such as warfarin, carbamazepine,
etodolac, and clorazepate, as well as anti-cancers, steroids, peptides,
sex hormones, and controlled substances.
0 25,000 50,000 75,000 100,000 125,000
Sun Pharma
Dr Reddys Labs
Divis Labs
Cipla
Aurobindo Pharm
Torrent Pharma
Lupin
Cadila Health
Abbott India
Alkem Lab
..............Market Cap. (Rs. cr.).................
MAJOR COMPETITORS

13. CONCLUSION
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As one of the leading organizations in its industry, Abbott
Laboratories has numerous strengths that help it to thrive in the
market place. These strengths not only help it to protect the
market share in existing markets but also help in penetrating new
markets.
Certain capabilities or factors of an organization can be both a
strength and weakness at the same time. This is one of the major
limitations of SWOT analysis . For example changing
environmental regulations can be both a threat to company it can
also be an opportunity in a sense that it will enable the company
to be on a level playing field or at advantage to competitors if it
able to develop the products faster than the competitors.