Granules India

HISTORY AND BUSINESS OF THE COMPANY
 
 Granules India Ltd (GIL) was incorporated as a Private
 Limited Company on March 16, 1991 and was later converted
 into a Public Limited Company on February 8, 1993.  GIL
 commenced its operations in April 1991 as a merchant
 exporter of bulk drugs like Paracetamol, Guaifenesin and
 Chloro Pheniramine Maleste.  It has been exportingmainly
 to the developed markets such as U.S.A., Europe, Mexico and
 Hongkong. Since 1992, GIL concentrated on export of
 Paracetamol powder, which was procured from a Group
 Company, M/s.Triton Laboratories Pvt Ltd (TLPL), a small
 scale unit. In 1993-94, the international prices of bulk
 drugs like Paracetamol were under pressure and GIL decided
 to enter into value added areas.
 
 In April 1993, GIL also joined as a partner of M/s.Triton
 Laboratories (TL), a partnership firm promoted by the
 promoters in 1985.  After GIL became a partner. TL crested
 facilities for manufacture of DC blends of Paracetamol and
 directly entered into its export market. Later, TL decided
 to diversify into manufacturing of bulk drugs and started
 implementing a project for the same.  In August 1994, as
 part of consolidation and restructuring the Group's
 operations.  TL was dissolved and its assets and
 liabilities were taken over by GIL at book value. The assets
 were independently valued by Shri S.Deshpande, Chartered
 Engineer and approved valuer.
 
                                              (Rs.lakhs)
 
 Description              Book     Transfer   Chartered
                          value     value     Engineer's
                                              valuation
 
 Assets
 
 Land & Development       *35.54    35.54      39.58
 Building                  22.42    22.42   # 102.57
 Plant & Machinery         13.36    13.36)  # 125.10
 Others                    17.76    17.76)
 Capital work-in-progress 174.17   174.17
                                   263.25     267.25
    
 Investment                 5.00     5.00
 
 Total   (A)                       268.25
 
 Liabilities
 
 Net current liabilities   63.27    63.27
 Long term liabilities      0.92     0.92
 
 Total liabilities (B)              64.19
 Purchase consideration (A) - (B)  204.06
 
 * The value of land, purchased in 1985 for Rs.88,994 was
 revalued at Rs.28,26,980/
 
 - on March 30, 1993 at Government fixed rate of Rs.500/-
 per sq. yard and as valued by M/s. M. Raja Rao & Co.,
 Chartered Engineers. Registered valuers & Insurance
 surveyors.  Development cost includes land leveling.  
 
 # Includes Capital work-in-progress
 
 Out of the purchase consideration of Rs.204.06 lakhs, the
 shares of the partners were as follows: -
 
    GIL                  -  Rs.131.13 lakhs
    Sri Krishna Prasad   -  Rs. 37.47 lakhs
    Smt C. Uma Devi      -  Rs. 35.45 lakhs
 
 Sri Krishna Prasad and Smt C. Uma Devi were allotted
 3,74,700 and 3,54,500 equity shares respectively of GIL of
 Rs. 10/- each at par in settlement of their share of
 partnership as detailed above. In addition to the above GIL
 allotted (I) 6,500 equity shares of Rs. 10/- each at par to
 Smt. C. Uma Devi in settlement-of rental dues for the
 years 1992-93 and 1993-94 and (ii) 2,600 equity shares to
 Dr. C. Hariprasad, 1,500 equity shares to 
 Dr. C. Nageswara Rao and 5,000 equity shares to Smt R.
 Santisree, all these of Rs. 10/- each and issued at par
 towards the long term liabilities taken over from the
 partnership firm as detailed above.
 
 GIL has also purchased the assets of a sick unit from the
 Andhra Pradesh State Financial Corporation (APSFC) on 
 March 30, 1994.  This unit was manufacturing bulk drugs.
 The assets comprising of land, buildings and plant and
 machinery were purchased for Rs.35 lakhs, by availing term
 loan from APSFC (Rs.22.75 lakhs) and own funds (Rs.12.25
 lakhs). These assets are not presently used and are
 earmarked for future expansion needs of the company
 
 GIL is now implementing the ongoing project taken over from
 TL and is exporting DC blends of Paracetamol of
 international pharmacopial standards from September 1,
 1994. Trial production of Folic Acid commenced in November,
 1994 and commercial production in August 1995.  
 
 The list of GIL's clients include M/s.Roussel Corporation,
 Helm New York Chemical Corporation and Granutec all of
 U.S.A, Welding GMBH & Co of Germany and Flavine Espana S.A.
 of Spain.
 
 2003
 -Granules MD Mr C. Krishna Prasad bags Udyog Rattan and Excellence
 Award
 
 2004
 
 -Granules India Ltd (GIL), has announced that its new plant at
 Gagillapur has successfully gone through first International
 Regulatory audit by the German Health Authority. The German approval
 enables it to export its products to Europe and significantly enhance
 its presence in these markets.
 
 -Granules India Gagillapur Facility successfully goes through Audit
 by German Health Authority
 
 2005
 
 -Granules India Ltd has informed that pursuant to the approval of the
 shareholders at the EGM held on September 25, 2004 to issue up to US $
 15 million Global Depository Receipts, each representing one equity
 share of Rs 10/- each in the share capital of the Company, the GDR
 issue was opened on January 13, 2005 and closed on January 19, 2005.
 
 2006
 
 Granules India Ltd on October 12, 2006 has announced that it has
 signed a Memorandum of Understanding (MoU) with Hubei Biocause Heilen
 Pharmaceutical Company (Biocause) of China.
 
 -Granules India signs MOU with PharmaMatch B.V.
 
 2007
 -Granules forges alliance with GSK Healthcare R&D.
 
 -Granules India Ltd has appointed Mr. Stephen R Olsen as an
 Additional Director of the Company at the Board Meeting held on June
 02, 2007.