Supriya life 39 years old company,Complete backward integration, 87% from export supply in 86 countries, CDMO CMO not generate any revenue at this point, shifted from China to Europe, one product dependency on China is now lesser , china cfda also visit the our GMP certified plant with minimal observation, expanding our anaesthetic portfolio, 300 million dollar global opportunity size with 4-5% of CAGR, 28-30% EBITDA,120-150 cr profit & 100 cr capex all capex funded by internal approvals, 20% growth, 1000 cr sales targets fy27, DSM fair ( Europe) get 10 year contract of vitamin sole supplier , globally contact mfg from next 2-3 years expected 60 cr revenue per years, inventory day is below 150 days is our Target, pls watch video also..
The 4 promotor/WTDs were paid around 18 crores in salaries in FY23 while PAT was around 90 crores. This violates the 10% rule by a huge margin (double the ceiling) as stated here Managerial remuneration under section: 197
Although, salaries more than stipulated limits can be paid by Special Resolutions, I will take above info as some negative flag for higher valuations and can be monitored as company progresses.
The company has strategically filed for approvals in regulated markets for their existing product portfolio, which previously generated revenue primarily from semi-regulated markets.
Over time, the company has successfully increased its market share in these regulated markets. This is evidenced by the rise in revenue contribution from regulated markets to 41% of the total topline, up from 31%.
Investment in CMO and CDMO Business
CMO and CDMO Expansion:
Capital Investments: Significant investments are being made in capital expenditures, approvals, and research & development to bolster the CMO (Contract Manufacturing Organization) and CDMO (Contract Development and Manufacturing Organization) segments.
European Contract: The company has secured a substantial contract with a European company to supply 20-30 tonnes of material this year, with potential revenue peaking at ₹200 crores.
Future Projects: Two additional projects are in the final stages of approval, promising further growth.
Market Positioning: By creating a strong brand presence, the company has successfully captured market share from Chinese competitors.
Vertical Integration: Plans are in place to achieve full backward integration for new niche products, positioning the company as one of the few global manufacturers (excluding a Chinese competitor) capable of producing these products from scratch. This strategy will also facilitate forward integration for certain products.
Product Line Expansion
Leveraging Expertise in Anti-Histamines:
The company is leveraging its expertise in anti-histamines to introduce new products in related fields such as anti-congestants, anti-diabetics, and anti-anxiety medications, which have significant growth potential in targeted geographies.
Several new products (4-5) are lined up for launch, expanding the company’s product portfolio.
Revenue Guidance and Long-Term Growth Plan
Revenue Guidance to ₹1000 Crores by FY27:
The management has outlined an ambitious plan to achieve a topline of ₹1000 crores by FY27.
This growth will be driven by increased capacities at existing locations and strategic collaborations.
Innovation in Diagnostic Solutions:
In collaboration with Kalinga University, the company has developed an oral detection kit, which they plan to launch within the next two years.
Patents have been filed in India, and a partnership with a local company for sales and development has been established.
Clinical trials are set to commence soon, with expected completion in the next two years.
There is also significant interest in this product from Southeast Asian countries such as Malaysia, Singapore, and Indonesia.
CAPEX and Capacity Utilization
CAPEX and Enhanced Capacity:
The company plans to invest around ₹100 crores in FY25 for capacity expansion and debottlenecking at the Ambernath plant, Module E.
Current Capacity: The existing capacity is approximately 597 KL per day.
Post-CAPEX Capacity: After the planned investments, the capacity will increase to approximately 1020 KL per day at Lote Parshuram and 200 KL per day at Ambernath.
Utilization: The current capacity utilization is at 86%, the highest level achieved to date.
In summary, the company’s comprehensive growth strategy for FY25 includes expanding into regulated markets, significant investments in CMO and CDMO businesses, leveraging expertise to launch new products, ambitious revenue targets, and substantial CAPEX plans to enhance capacity and utilization. These initiatives position the company for robust growth and increased market presence in the coming years.
Majority of their sales are anti histamines and anti allergics. Q2 and Q4 are generally strong quarters for this and Q1 and Q3 are weaker. So better to compare yoy than qoq sequentially
Article talks about setting an academy in Ahmedabad To Set Up Global Academies In Ahmedabad, Hyderabad
“Ensuring good manufacturing practices is now a priority over pricing,” said Jain. Prices of pharma drugs are about 65% lower in India than in other big countries, Jain said, citing a study by IPA. Hence, the body has dealt with the pricing already, according to him. However, IPA is planning to improve its partnership and supply chain with the US to make drugs more affordable in both nations.
The overall percentage of OAIs on Indian pharmaceutical companies had halved to 13% in 2023 from 26% in 2014. Although gaps in practices, maintenance of facilities and ancillaries, and investigations not being done versus the written procedures have risen to 23%, there is a drop of 3–4% seen in violations found in capability, training, lab controls and core manufacturing processes.
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