Posting the investor ppt here as it hasn’t been discussed since the results.
Slide 6 has details of upcoming capex: maintenance (200cr), Oncology (130cr) and backward integration (100cr). They are planning to manufacture 70% of their APIs inhouse, in an attempt to backward integrate and reduce margin compression in generic generic businesses. Have also mentioned that they are evaluating an inorganic opportunity here which may close by March 2022, so we may hear an announcement soon if this route is taken. On slide 14 they mention that they have already completed R&D for 22 APIs to be used for backward integration in US and Emerging markets.
Also noticed their their R&D spends have gone down to 45cr 9M FY 22 after peaking in FY20 at 85cr. This is interesting, given that they are looking to get into newer areas like oncology, and also file for more ANDAs in regulated markets. So this reduction in R&D spends is very counter-intuitive.
Disclosure: Invested from lower levels and evaluating whether to add more in the present correction.
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