Feb 2024 concall
PERFORMANCE
1…Export
=We continue to face
headwinds from the currency exchange fluctuation, and shortage of foreign exchange in some
of our major markets. However, I am happy to share that these challenges are gradually easing we anticipate a renewed business growth in these regions in the coming period.
2…Domestic
=growth of 35%
3…Margin
=However, as we navigate through this phase of growth, it is essential to note that our profit margin and EBITDA margin have shown a marginal decrease.
=This can be attributed to the strategic investments made in launching and promoting our new product range, Oradox.
=Additionally, our participation in both domestic and international dental exhibitions has incurred promotional expenses aiming to enhance the visibility of our brand.
=Furthermore, we are actively expanding our team across various departments for existing facilities as well as new facilities including sales including sales & marketing, research & development
==========================
FUTURE GROWTH
1…Export
=While our export business has encountered challenges due to foreign exchange crisis in some of our major exporting countries, I am pleased to inform you that we have successfully navigated these difficulties
A…Egypt peru, africa, argentina, sudan
=These are the 4 countries which were our major exporting countries. Because of the foreign exchange crisis and currency situation, they have not been able to give us sufficient orders.
=The situation is improving
=These are very high potential countries
=We are very confident that this is not a permanent situation. This situation
will definitely improve, and once the situation improves, business will grow in these 4 major
countries as well as the countries where now we are making all-out efforts to grow
B…USA
We have explored new countries. And our business in the USA has increased
0.8% to now it is 2.44%. So, we see a lot of opportunities in the US market.
C…Other countries
=we have also explored new countries where there is a potential so that we can grow in these countries to compensate for our business loss in the 4 countries which we have just mentioned
=.We have expanded our export footprint into new territories such as Venezuela, Senegal, Mauritius, and more.
=We have started selling in Australia also this year and
another country. Some more countries we have added.
= In Saudi Arabia, we have done
extremely well in this financial year.
=We are very confident that in the next financial year, we
will have much better business from these countries. We are very
efforts, growth in the export market will come back.
2…Domestic
=It is evident from our results that we have a growth of 35% in the domestic market, which is a phenomenal growth.
=And we are
very confident that this growth will continue further with the efforts of our marketing team and
with the high quality of products which we are manufacturing in our factory.
=New market/New produvt
=Growth in the domestic market, we are not even looking at
stopping at one location. We are looking at growth from our existing set of products, exploring
newer markets and pitching in new products to the markets where we are not reaching. And
that is where our online foray works.
=Parallelly, to improve our turnover in the domestic market, we are also looking at the new
range of products. For example, Oradox.
3…Oradox
=One of the highlights of this
quarter is the successful launch of our new product line under the brand, Oradox.
=The overwhelming response fro
indicates a promising future for this brand which will undoubtedly boost our top line growth in the coming months.
=These products are very innovative and most of them are first in India.
=And many of these are not available in India, and hence the direct competition to the bigger players in this market doesn’t exist because these are very specialized products.
=3 ways of marketing these products
-
an online consumer part is already there.
-
From an offline point of
engage with our dentist channel partners. Already we have a huge reach to these dentists
through our team, through our dealer network in India, which we have 60+ dealer networks
there and we are already reaching to them. -
The dental exhibit
will provide us another opportunity to launch these to dentists.
= These are the 3 ways we are
looking at moving these products to the end consumer.
4…Disinfactants
=Our venture into the disinfectant segment is progressing well.
=With products in the pre
trials in various institutions to validate the product quality.
=We anticipate that this segment will contribute significantly to our top line in the coming yrs
=The global antiseptic and disinfec
anticipated to reach around $63 billion by 2030, growing at a CAGR of roughly 10% between
2022 and 2030. We are fully ready to enter these growing segments of the
dental industry and
see a bright future for our company in terms of business
5…Dental 3 D printing material
=This market is growing@15% cagr
=This market is driven by the increasing prevalence of dental
diseases and demand for high-quality dental products.
=3D printing offers more treatment
choice, cost effectiveness, and customization options for the patients and clinicians.
6…Raw matrial depenence
=Our commitment to self
our dependence on imported raw materials.
=We are geared towards achieving this objective, allowing us to break free from our reliance on imported products
7…Online portal
=We have already secured partnerships with three of the biggest online portals and our range of products are now available on Tata 1mg, Amazon, and Flipkart in addition to our own portal.
=In line with our commitment to innovation and customer ,we have taken bold step by launching our own e portal prevest directly
=It had allowed us to engage with our customers directly and has already yielded promising results.
=Initial respose has exceeded our expectations indicating rapid expansion potential, especially in our underdeveloped markets.
8…Huge capacity after expansion
…After expansion,we are operating at 40%. There is huge capacity available for business growth
9…Branding and marketing
=Our company is joined by a very good marketing team led
with respect to other marketing people
= We have increased our
employees from 100 to 141. Mostly, this increase is with respect to the marketing team.
=There is an increase in exhibition expenses. Since we are
exploring new markets world over, we are going to as many as possible number of exihibitions
= In addition to this, we have
consultancy fee which has increased, say at least 2x to 3x in this current year since we have got the US FDA approval
10…Capex
Capacity utilization @ 40%
=We have enough capacity for the next 5 yrs
=CAPEX.
=We have already invested Rs. 24 crores on the capital expenditure for setting up of the new facility and also for setting up of the research center.
=With the new product
manufacturing facility, we have sufficient capacity for the next 5 years and sufficient products
for marketing in the next 4 to 5 years.
11…R and D
=We are continuing our research activities so that we can add some more biomaterial products
=We are developing bone grafting materials, we are also developing oral wound dressings. There are many
products which are under development. And our R&D is working on the development of these
products. Once these products are developed, we will take them for commercial production.
12…Competitiors
=Chinese products are very low quality
We dont consider them as competitiors
=We compete with MNC
=In india ,the top 5 companies who have the maximum market share are all multinational companies.
No. 1 is Dentsply. No. 2 is GC Fuji, is a Japanese company; Coltene;
=We have the highest market share among the Indian manufacturers
=Within India, we are the biggest player. In terms of turnover or market share perspective, we are bigger than any of the other players
13…Other
=As of now, there is no product we are trading. All the products that are there, are manufactured by us
=20 countries@80% revenue
Total 90countries
=Top 20 products@40% revenue
Disc…invested