Sanofi india ltd online AGM experience and takeaways ~ Shareholder Awareness Program

Sanofi India AGM

Article published as on Tuesday, 7^th July, 2020 at 9:00 p.m.

64^th AGM of Sanofi India ltd

Tuesday 3:00 p.m. 7^th July, 2020

Through zoom video conferencing

Aditya Narayan briefed the on the course of meeting, the managing director Rajaram Narayanan and the CFO Charles billiard offered their comments on business and its financials as well.

As per my understanding here are few key points and highlights of the meeting.

Discussion on declaration of such huge dividend 349 rupees (1060% final and 2430% special dividend of FV 10 RS) was not necessary and instead company should save resources in these tough times.

Management thanked for the concerns from shareholders and assured of strong financial position of company, also he explained that after due diligence and doing enough provisions for the tough times this dividend is declared.

(This dividend caused an outflow of approximately 802.7 crores)

Apart from this questions regarding sale of Ankleshwar unit which concluded on 29^th may 2020, were also asked and management expressed their intention to exit manufacturing business and focus on branded business only.

(This shows that Sanofi India by focusing on only branded products and outsourcing the manufacturing wants an asset light model just like page industries)

Discussions were also done regarding goa manufacturing plant and management assured that there is enough capacity and no new capex will we required for next few years, also by achieving efficiency and reduction in wastage the output could be increased going forward.

One speaker also requested after normalcy returns pandemic the company should organize a factory visit to its goa plant for its shareholders

There were very few speakers

There were interesting suggestions given by speaker to the management team like ~

One shareholder advised on security concerns as cyber-attacks are growing, and hence conduct cyber audits should be done as well.

The meeting concluded at around 4:05 p.m.

Code: SANOFI EPS: 176.59

Price 7547.10 rupees PE: 42.74