Extensive Product Basket largely Branded business with minimal overlap – Strong Doctor Relationships and opportunities to leverage market presence to cross-sell products US$ 250 million of revenue &operational synergies by 3rd year primarily derived from top-line growth, and procurement & supply chain efficiencies The US Food and Drug Administration's approval to Nexium and Diovan could provide benefits of $300-400 million net income in the short term b) Synergies that can be realised and value of the synergies According to the analysts at Sun pharma, it expects to realise its merger related synergies by the third year of acquisition. The synergies that it expects to obtain are the revenue and operational synergies resulting from sales growth, procurement and supply chain efficiencies. The expected value of the synergies is $250 million or 1550 crore from merger related synergies by third year after the acquisition is completed. c) DCF method for Valutaion Fiscal Period March (in INR crores) 2014 2015 2016 2017 13,040.30 Sales ₹ ₹ ₹ ₹ 12,944.80 12,912.90 13,577.00 Operating income (EBITDA) 973.20 1,975.20 ₹ ₹ ₹ ₹ 2,259.80 1,775.40 Operating profit (EBIT) ₹4,97.00 ₹ 1,503.00 ₹ ₹ 1,689.00 13,63.00 taxes 343.50 311.00 323.00 488.00 ₹ ₹ ₹ ₹ 1,015.00 NOPAT [EBIT(1-t)] 153.5.00 1378.80 ₹ ₹ ₹ ₹ 1,040.00 476.20 570.00 412.40 471.80 D&A ₹ ₹ ₹ ₹ capex 780.90 495.10 530.10 522.40 ₹ ₹ ₹ ₹ 326.00 324.00 323.00 339.00 change in NWC ₹ ₹ ₹ ₹ Free Cash Flow -₹ 599.30 625.80 477.70 ₹ ₹ ₹ 1,129.70 Terminal Value ₹ 24,416.98 WACC 8.72% 8.72% -₹ 599.30 477.70 ₹ ₹ ₹ 1,129.70 25,042.78
Extensive Product Basket – largely Branded business with minimal overlap Strong Doctor Relationships and opportunities to leverage market presence to cross-sell products US$ 250 million of revenue &operational synergies by 3rd year primarily derived from top-line growth, and procurement & supply chain efficiencies The US Food and Drug Administration's approval to Nexium and Diovan could provide benefits of $300-400 million net income in the short term b) Synergies that can be realised and value of the synergies According to the analysts at Sun pharma, it expects to realise its merger related synergies by the third year of acquisition. The synergies that it expects to obtain are the revenue and operational synergies resulting from sales growth, procurement and supply chain efficiencies. The expected value of the synergies is $250 million or 1550 crore from merger related synergies by third year after the acquisition is completed. c) DCF method for Valutaion Fiscal Period March (in INR crores) 2014 2015 2016 2017 Sales ₹ 13,040.30 ₹ 12,944.80 ₹ 12,912.90 ₹ 13,577.00 Operating income (EBITDA) ₹ 973.20 ₹ 2,259.80 ₹ 1,775.40 ₹ 1,975.20 Operating profit (EBIT) ₹4,97.00 ₹ 1,689.00 ₹ 13,63.00 ₹ 1,503.00 taxes ₹ 343.50 ₹ 311.00 ₹ 323.00 ₹ 488.00 NOPAT [EBIT(1-t)] ₹ 153.5.00 ₹ 1378.80 ₹ 1,040.00 ₹ 1,015.00 D&A ₹ 476.20 ₹ 570.00 ₹ 412.40 ₹ 471.80 capex ₹ 780.90 ₹ 495.10 ₹ 530.10 ₹ 522.40 change in NWC ₹ 326.00 ₹ 324.00 ₹ 323.00 ₹ 339.00 Free Cash Flow -₹ 477.70 ₹ 1,129.70 ₹ 599.30 ₹ 625.80 Terminal Value ₹ 24,416.98 WACC 8.72% 8.72% -₹ 477.70 ₹ 1,129.70 ₹ 599.30 ₹ 25,042.78