Zota Health Care Ltd. · NSE:ZOTA
Zota Health Care — Investor Presentation (May 2024)
48 slides from Zota Health Care's investor presentation, May 30, 2024
Slide 1: Cover letter to NSE: Investor Presentation
May 30, 2024 To, The Manager Listing Department, The National Stock Exchange of India Limited Exchange Plaza, Bandra Kurla Complex, Bandra (E), Mumbai – 400051 Dear Sir/Madam, Trading Symbol: ZOTA Sub: Investor Presentation Ref: Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements)
Slide 2: India's Largest Private Generic Pharmacy Retail Chain
INDIA’S LARGEST PRIVATE GENERIC PHARMACY RETAIL CHAIN May 2024 Zota Health Care Limited I nv e s t o r P r e s e n t a t i o n
Slide 3: Safe Harbour
Safe Harbour 2 zotahealthcare.com This presentation has been prepared by the Zota Health Care Limited (the “Company”) only for information purpose to the stakeholders and does not contain any offer or invitation to subscribe the securities of the Company. No offering of securities shall be made exce
Slide 4: Company Overview
Company Overview
Slide 5: Zota Healthcare At a Glance
Zota Healthcare At a Glance 4 zotahealthcare.com davaindia.com • Zota Health Care Ltd., a publicly listed company on NSE, has established a Business Verticals significant footprint in the Indian healthcare sector since its inception in 2000. • Headquartered in Surat and employing over 400 dedicated
Slide 6: Our Journey
Our Journey 5 zotahealthcare.com davaindia.com 01 02 03 2000 2004 2010 2011 2017 2018 Zota Health Care - Acquired all brand names Inaugurated an export- Commenced exports, Introduced Davaindia, a private Achieved ₹10+ Cr in Export Sales; Incorporated of Sayona Medicare via an oriented formulations e
Slide 7: Management Profile
Management Profile ( 1 / 2 ) 6 zotahealthcare.com davaindia.com K E TAN K U M AR Z O TA M O X E S H Z O TA S U J I T PAU L CHAIRMAN AND MANAGING DIRECTOR CHIEF EXECUTIVE OFFICER AND NON-EXECUTIVE DIRECTOR KEY MANAGERIAL PERSONNEL Total Experience: 38+ Total Experience: 10+ Total Experience: 23+ • Ho
Slide 8: Management Profile
Management Profile ( 2 / 2 ) 7 zotahealthcare.com davaindia.com AD H E E S H M U K H AR J E E V I C TO R B H AD R A R AJ E S H K U M AR SGM (South & North) – SGM (East & West) – SGM - Information Technology COCO & FOFO OPERATIONS COCO & FOFO OPERATIONS Total Experience: 17 Years Total Experience: 13
Slide 9: Company Structure
Company Structure 8 zotahealthcare.com davaindia.com Zota Health Care Limited Step down subsidiary Davaindia Procurement in (Davaindia Health Mart listed entity (Listed entity) Supplying products at ALP* Limited) COCO (COCO# stores) FOFO Domestic Export (Sales to FOFO# stores) FOFO Sales through COC
Slide 10: Business & Industry Overview
Business & Industry Overview
Slide 11: Business Verticals
Business Verticals 10 zotahealthcare.com davaindia.com R E V E N UE C O N TR I BU TI O N ( F Y 2 4 ) 1 . DAVA I ND I A Consolidated • A Retail generic pharmacy chain providing quality generic medicines. • Focuses only on private-label products in: • Medicinal 02 Store variants 30% – 90% Company Owne
Slide 12: India is amongst the Lowest Public Spenders
11 India is amongst the zotahealthcare.com davaindia.com Lowest Public Spenders Medicines account for ~70% 17.00%** Population with household spending on health greater than 10% of total household budget. 6.67%# Population with household spending on health greater than 25% of total household budget.
Slide 13: Case Study – Savings on Davaindia margins
Case Study – Savings on Davaindia margins 12 zotahealthcare.com davaindia.com Indian Pharma MNC Indian Pharma Company marketed by > Davaindia 1 MNC 2 Same Tablet Tablet / Medicine Name Rosuvas – 10 mg Rosubest - 10 Rosuvastatin 10 Significant with same Molecule Rosuvastatin 10mg savings in molecule
Slide 14: Davaindia Quality Medication at Affordable Prices
Davaindia Quality Medication at Affordable Prices 13 zotahealthcare.com davaindia.com Industry update Same Quality, Davaindia sells generic medicines manufactured by the same producers as Total turnover of branded medicines. This ensures equivalent quality at a fraction of the Affordable Price cost.
Slide 15: Davaindia Generic Pharmacy
GENERIC PHARMACY | DAVAINDIA
Slide 16: Davaindia - Retail Pharmacy Chain data
Davaindia - Retail Pharmacy Chain data 15 zotahealthcare.com davaindia.com Revolutionizing the generic pharmacy industry with affordable, accessible, quality healthcare solutions through retail pharmacies’ chain. Launched in 2017, Davaindia has rapidly grown into India’s leading 2000+ 253 627 • priv
Slide 17: Davaindia - Operating Model
Davaindia - Operating Model 16 zotahealthcare.com davaindia.com Offers a cluster-based store 2,000+ SKUs with 70% medicinal model, optimizing products and 30% OTC products, Cloud-based software and Implementing a hyperlocal accessibility and convenience with a special emphasis on chronic AI-based to
Slide 18: Davaindia - Eliminating traditional supply chain
Davaindia - Eliminating traditional supply chain 17 zotahealthcare.com davaindia.com By sourcing directly from manufacturers and selling straight to consumers, traditional pharma supply chain is eliminated & the cost benefits are transferred to the consumer Average consumer price ~75% savings on Dav
Slide 19: Davaindia – What are COCO Stores
Davaindia – What are COCO Stores 18 zotahealthcare.com davaindia.com COCO stores are modern walk-in stores providing a distinct contrast to traditional counter-based pharmacies enhancing customer satisfaction and loyalty. Rapid Expansion Time required for opening a new COCO store has been reduced si
Slide 20: Davaindia – COCO Stores
19 zotahealthcare.com davaindia.com Davaindia – COCO Stores
Slide 21: Davaindia - COCO Stores
Davaindia - COCO Stores 20 zotahealthcare.com davaindia.com COCO Company-Owned Company-Operated 253 Operated by wholly-owned subsidiary Operational Davaindia Health Mart Davaindia Health Mart Ltd COCO stores Enhancing Store Significant rent rationalization to ₹ 34,290 p.m. in 3rd phase (52 stores) f
Slide 22: Davaindia COCO - KPI's (1/2)
Davaindia COCO - KPI’s (1/2) 21 zotahealthcare.com davaindia.com No. of Stores Quarterly Footfall in lakhs 253 6.9 5.4 4.7 154 3.7 125 114 3.0 101 2.2 67 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24
Slide 23: Davaindia COCO - KPI's (2/2)
Davaindia COCO - KPI’s (2/2) 22 zotahealthcare.com davaindia.com Quarterly GMV ₹ lakhs Avg. Wallet Spend ₹ ₹ 1,660 ₹ 249 250 ₹ 245 ₹ 247 ₹ 241 ₹ 1,346 ₹ 1,154 230 ₹ 223 ₹ 216 ₹ 903 210 ₹ 689 190 ₹ 484 170 150 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4
Slide 24: Younger COCO Stores to fuel growth
Younger COCO Stores to fuel growth 23 zotahealthcare.com davaindia.com Significant Young Store Network 253 99 Many of our stores are relatively new, still in the early stages of their lifecycle. Total COCO Stores COCO Stores <3m While currently modest in revenue, expected to grow multiple folds as t
Slide 25: Store Opening Lifecycle – COCO
Store Opening Lifecycle – COCO 24 zotahealthcare.com davaindia.com 75 Days Days 00 02 04 06 08 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54 56 58 60 62 64 66 68 70 72 74 76 Registration 0 Documentation - Online 0 Sign up fees 1 Signing process Store 4 Store layout Planning Ex
Slide 26: Davaindia – What are FOFO Stores
Davaindia – What are FOFO Stores 25 zotahealthcare.com davaindia.com Franchisee-Owned Franchisee-Operated (FOFO) FOFO stores employ an asset-light franchise model, Asset-light franchise contributing to the scalability and accessibility of our model product offerings. FOFO stores are compact and over
Slide 27: Davaindia - FOFO Stores
Davaindia - FOFO Stores 26 zotahealthcare.com davaindia.com 6 627 FOFO Franchise Owned Franchise Operated Operational States No. of Stores 2 FOFO stores Uttar Pradesh 115 8 Odisha 88 5 Madhya Pradesh 62 38 31 4 West Bengal 60 Maharashtra 51 Gujarat 50 23 10 115 Haryana 38 23 8 Delhi 31 Bihar 23 6 Ra
Slide 28: Davaindia - FOFO Stores
27 zotahealthcare.com davaindia.com Davaindia - FOFO Stores
Slide 29: Davaindia FOFO - KPI's (1/2)
Davaindia FOFO - KPI’s (1/2) 28 zotahealthcare.com davaindia.com No. of Stores Quarterly Footfall in lakhs 607 627 8.9 577 8.1 534 7.5 493 470 6.5 6.4 6.4 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Note – The Company did a one-time closure of unde
Slide 30: Davaindia FOFO - KPI's (2/2)
Davaindia FOFO - KPI’s (2/2) 29 zotahealthcare.com davaindia.com Quarterly GMV ₹ lakhs Avg. Wallet Spend ₹ ₹ 278 ₹ 2,465 ₹ 275 ₹ 2,328 ₹ 271 ₹ 2,005 ₹ 1,840 ₹ 1,846 ₹ 1,905 ₹ 269 ₹ 268 ₹ 260 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24
Slide 31: OTC Over-the-counter products
OTC Over-the-counter products 30 zotahealthcare.com davaindia.com Strategic Acquisition as Acquired 56% stake in the Everyday Herbal Group*, licensed by the a move towards Khadi and Village Industrial Commission, a strategic move towards backward integration backward integration. ~30% OTC products m
Slide 32: OTC – Products
31 zotahealthcare.com davaindia.com OTC – Products
Slide 33: Davaindia is Revolutionising the Indian Healthcare Scenario
Davaindia is Revolutionising the Indian 32 zotahealthcare.com davaindia.com Healthcare Scenario * 13,766 Lakhs 60 % Gross Merchandise Value in FY24 Gross Margin in COCO format 880 30-90 % Fast growing FOFO & COCO store network* Savings to consumers on Generic medicines 15.01 Mn+ 25-30 % Happy Consum
Slide 34: Davaindia Competitive Edge
Davaindia Competitive Edge 33 zotahealthcare.com davaindia.com The USP of Davaindia: Affordable, Trustworthy, and Innovative Pharmacy Solutions BENEFITS TO THE CUSTOMERS BENEFITS TO THE FRANCHISEES Medicines priced at low MRP thereby ensuring Store operations and the supply chain efficiently afforda
Slide 35: Healthy Repeats
Healthy Repeats 34 zotahealthcare.com davaindia.com Total Average (in %) With a strong base of 80% repeat customers, Davaindia demonstrates a high level of customer satisfaction and loyalty. 80% Repeat Customers 12% New Customers 08% Lost Customers
Slide 36: Higher Chronic category share
Higher Chronic category share 35 zotahealthcare.com davaindia.com 54% 55% 25% 25% 21% 20% Chronic OTC Other Chronic OTC Other CATEGORY MIX FY23 CATEGORY MIX FY24 Higher chronic share: A significant 55% of our revenue comes from chronic disease category, signalling high realization and retention rate
Slide 37: Supply Chain Management
Supply Chain Management 36 zotahealthcare.com davaindia.com • The Company has outsourced supply chain management to a third-party warehousing & logistics partner. • A state-of-art central warehousing & processing center has been built in Surat, in Phase 1. • Eventually the Company will replicate suc
Slide 38: Domestic Operations
GENERIC PHARMACY 02 Domestic Operations
Slide 39: Domestic Operations
38 Domestic Operations zotahealthcare.com davaindia.com Domestic marketing has been the oldest business vertical for the Company and has remained its mainstay in the past. Until 2017, this vertical contributed most of the Company’s revenues. This business vertical distributes generic drugs, OTC prod
Slide 40: Export Operations
Expor t Operations
Slide 41: Export Operations
40 Expor t Operations zotahealthcare.com davaindia.com Our Exports business vertical, which started in 2010, serves clients in over 30 countries, mainly in the CIS, Latin America, Africa, and Asia. At its plant in Sachin, SEZ, the Company manufactures generic formulations for the dossiers it has reg
Slide 42: Financial Overview
Financial Overview
Slide 43: Financial Snapshot
Financial Snapshot 42 zotahealthcare.com davaindia.com Davaindia has driven revenue growth, recording an impressive increase of 59% CAGR since FY22. Business Verticals – Consolidated Revenue bifurcation Davaindia ₹ lakhs Domestic Operations ₹ lakhs Export Operations ₹ lakhs 10,356 5,983 5,950 5,689
Slide 44: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement 43 zotahealthcare.com davaindia.com ₹ in lakhs (Consolidated) Particulars Q4FY24 Q3FY24 QoQ % Q4FY23 YoY % FY24 FY23 YoY% Export Sales (SEZ) 565.9 358.9 58% 415.7 36% 2,003.5 2,467.2 -19% Davaindia Sales 3,122.6 2,763.5 13% 1,760.8 77% 10,355.9 5,578.5 86% Domest
Slide 45: Balance Sheet statement
Balance Sheet statement 44 zotahealthcare.com davaindia.com ₹ in lakhs (Consolidated) As at As at As at As at ASSETS 31 March 31 March EQUITY AND LIABILITIES 31 March 31 March 2024 2023 2024 2023 Non-Current Assets (i) Equity Share capital 2,584.7 2,516.0 Property, plant and equipment 2,356.6 1,472.
Slide 46: Strategic Outlook
Strategic Outlook
Slide 47: Expanding Horizons
46 Expanding Horizons zotahealthcare.com davaindia.com The ZOTA Vision – Sustainable improvement in performance As Davaindia stores and revenue grow, occupying a Working Capital Days (Consolidated) ROCE (%) (Consolidated) larger portion of the overall business, we foresee a 129 18.9% 126 117 decline
Slide 48: Thank You
Thank You Contact Infor mation M r. Himanshu Zota / M r. Ashvin Variya "ZOTA HOUSE", 2/896, Hira Modi Street, Sagrampura, Surat-395 002 (Gujarat) cszota@zotahealthcare.com www.zotahealthcare.com EY LLP Diwakar Pingle - diwakar.pingle@in.ey.com Siddesh Chawan - siddesh.chawan@in.ey.com Sumedh Desai -