Company Overview
Innova Captab Limited is pharmaceutical company incorporated in January 2005, operating in three key business segments in India’s pharmaceutical value chain CDMO, Domestic branded generic, international branded generic. The company claims to be country’s second-largest domestic formulations Contract Development and Manufacturing Organization (CDMO).
It ranks among the top three formulation CDMOs by revenue in India, serving 14 of the top 15 companies in the Indian branded market. The company deals in tablets, capsules, dry syrups, dry powder injections, ointments, and liquid medicines.
For Domestic Branded Generics it has network of approximately 5,000 distributors and stockists, reaching over 150,000 retail pharmacies.
Its International Branded Generics generates 12.5% of revenue with highest margin for them. They have R & D centre in Baddi and new one is coming up in Panchkula which shall assist them in their International business in future.
It has five manufacturing facilities 3 in Baddi, 1 in Dehradun, 1 in Taloja. New Unit in Jammu started producing revenue(44 cr) last qtr.
The Jammu factory has four dedicated blocks (general, cephalosporin, penicillin, and penum) established with a capital outlay exceeding ₹450 crores.
Company claims to be Second-largest domestic formulations CDMO in India and claims to work with 14 of top 15 Indian pharma companies
As per there various presentations, its units are WHO-GMP certified manufacturing facilities and has Strong R&D capabilities with 29 scientists and engineers
Its financial performance of past has been consistent .
Scuttlebutt with its supplier reveals that are very good pay master and reliable in terms of regular orders in comparison to other CDMO players.
New Jammu factory has government incentives like capital interest subvention and GST-linked incentives. This shall protect margins in highly competitive CDMO business and help them get new business and take advantage of india’s growing CDMO market. Company expects to generate 700cr revenue from Jammu by FY27.
It acquired Sharon Bio-Medicine in June 2023 ( CIRP ), It aims to capitalise on sharon’s International presence.
Overall Innova Captab seems to be investment opportunity in India’s rapidly expanding CDMO sector.
The recent commissioning of the Jammu facility, with its substantial capacity addition and government incentives, provides a significant growth catalyst. The company’s focus on operational excellence, combined with India’s cost advantages and regulatory compliance, creates a sustainable competitive moat.
https://www.sebi.gov.in/filings/public-issues/dec-2023/innova-captab-limited-rhp_79995.html/
https://in.linkedin.com/company/innova-captab-pvt.-ltd.
Disc: Invested