Renata Limited
Company overview
Renata Limited is a leading and fastest growing pharmaceutical and animal health product company in Bangladesh. Renata is fourth largest pharmaceutical company in Bangladesh and it is the market leader in animal health products. Its field of business is manufacturing, marketing & distribution of human pharmaceuticals, animal health medicines, nutritional, and vaccines. The company is listed in Dhaka Stock Exchange with a market capitalization of over USD 1 billion. The company has started its operations in 1972 as Pfizer Laboratories (Bangladesh) Limited, a subsidiary of Pfizer Corporation, USA.1
Pfizer has transferred the ownership of the company to Bangladeshi shareholders in 1993 and the company’s name was changed to Renata Limited. It has ten manufacturing facilities in three manufacturing sites. There are 19 depots across the country for distribution of its products. The company exports to Core values of the company are as follows –
- Focus on long-term growth
- Structural innovation for sharing growth
- Going the extra mile for employees
- Environmental activism
- Health activism through promoting innovation and partnerships
The company is headquartered at Mirpur-7, Dhaka, Bangladesh. It has three subsidiaries – Renata Agro Industries Limited, Purnava Limited, and Renata Oncology Limited. There are three production sites of the company – Mirpur-7 site, Dhaka, Rajendrapur site, Gazipur, Bhaluka site, Mymensingh.
The company produces some general products for UNICEF (United Nations Children’s Fund) and SMC (Social Marketing Company). The company has issued received Certificate of GMP Compliance of a Manufacturer from Medicines and Healthcare products Regulatory Agency (MHRA), UK. The company holds 99.99% shares of both Renata Agro Industries Limited and Purnava Limited; and it holds 100% shares of Renata (UK) Limited and Renata Pharmaceuticals (Ireland) Limited. The company transacts with/through the following bankers –
- Agrani Bank Limited
- Bangladesh Commerce Bank Limited
- Bank Asia Limited
- Brac Bank Limited
- Commercial Bank of Ceylon
- Citibank, N.A.
- Eastern Bank Limited
- Standard Chartered Bank
- Sonali Bank Limited
- The City Bank Limited
- United Commercial Bank Limited
Auditor of Renata Limited is ACNABIN, Chartered Accountants. Legal advisors of the company are Dr. M. Zahir and Associates, Vertex Chambers, Hoque & Associates.
Mission of Renata is to provide maximum value to the customers and communities where we live and work; and vision is the establish Renata permanently among the best of innovative branded generic companies. The company is rated AAA by credit rating agencies.
Renata has introduced total 18 new formulations in the year 2019-20. The company has made a capital expenditure of BDT 2.5 billion in the same financial year. The investments were made from internally generated cash from retained earnings, and bank loans. The strategy of the company is to retain enough earnings and cash for future development and sustaining the proper growth rate. However, during FY20, the company has declared BDT 13 cash dividend per share (10 par value each), and stock dividend in the ratio 1:10. The cash dividend will result into a disbursement of BDT 1.15 billion and stock dividend will result into a transfer of BDT 88.59 million to share capital account. The company has contributed BDT 5.5 billion to national exchequer in 2019-20.
Industry overview
The pharmaceuticals industry in Bangladesh was once dependent heavily on imports and multinational companies. But now the industry is growing very fast to meet 98% of the domestic demand. The remaining 2% are specialized imports like vaccines, hormone drugs, anti-cancer products and so on. The industry is also exporting to different parts of the world and posting a growth rate of 27% per year in export earnings. In 2018, the industry stood at BDT 205 billion in terms of market size with a compound annual growth rate of 15.6% for the last five years. The industry is expected to grow at a rate of 15% per year to reach $5.11 billion by 2023.
The industry in Bangladesh has found its strengths in the 80s. Over the past 4 decades, the industry has grown to a billion-dollar industry by developing thousands generic drugs and producing other thousands patented drugs. The drugs produced in the country are divided into two parts – 80% are generic, 20% are patented drugs. Different lines of drugs are being produced in the country including Allopathic, Homeopathic, Unani, Ayurvedic, and Herbal.
Key growth drivers of the industry
Bangladesh has posted stellar economic growths in the past years until the covid-19 pandemic has come and caused a slip in the GDP growth rate. The country has achieved a growth rate of 7.28% in FY17 and 7.86%, 8.15%, 3.51% in the following financial years. According to Bangladesh Bureau of Statistics (BBS), provisional estimate of GDP for the country in FY21 is 5.47%. The country is experiencing a population growth rate of 1% every year. Per capita income of the country stands at $2,227 in FY21, an increase of $203 from previous fiscal year. Consumption expenditure of the country in FY21 is 75.83% of GDP. Domestic savings increased in FY21 to 24.17% of GDP from 23.77% of GDP a year earlier. Public and private investment together combines to 7.95% of GDP.2 Higher economic growth, increase in disposable income, population growth rate, and changes in pattern of disease are the key drivers for pharmaceuticals industry in Bangladesh. People are also becoming more aware about the facilities they can receive through the pharmaceuticals industry in the country. Apart from that changed life style, improved life expectancy, health awareness, and modern healthcare facilities cause drive in the pharmaceuticals industry.
