Vaishali Pharma Ltd. · NSE:VAISHALI
Vaishali Pharma — Investor Presentation (August 2020)
31 slides from Vaishali Pharma's investor presentation, Aug 6, 2020
Slide 1: Cover letter to NSE
Vaishali Pharma Ltd. (Formerly known as Vaishali Pharma Pvt. Ltd.) CORPORATE & REGISTERED OFFICE: 706-709, 7th Floor, Aravali Business Centre, ttl R. C. Patel Road, Off. Sodawala Lane, Borivali (West), Mumbai-400 092. ~ ~,~'\ ( ".0; Tel.: +91-22-4217 1819 (30 Lines) \ 1'1;, ,{ Fax: +91-22-2892 8833
Slide 2: Vaishali Pharma Limited Investor Presentation August 2020
Vaishali Pharma Limited Investor Presentation August 2020 www.vaishalipharma.com
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which has been prepared by Vaishali Pharma Ltd. (the “Company”/Vaishali), is solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities and
Slide 4: Index
Index 04 12 Executive Summary Way Forward 05 18 Company Overview Industry Overview 11 26 Business Transformation Strategy Financial Performance Confidential August 2020 3
Slide 5: Executive Summary
Executive Summary o Established in 1989 as Vaishali Pharmachem, an APIs trading company by Shri Atul Vasani, the Company has made steady transformation from a Partnership Firm into Private Limited Company and then to a Listed Company known as Vaishali Pharma Limited (Vaishali). Vaishali is one of th
Slide 6: Company Overview
Company Overview One of the fastest-growing and most versatile companies in the pharmaceutical industry o Established in 1989, Vaishali Pharma Limited is engaged in the manufacturing and marketing of pharmaceutical formulations, Active Pharmaceutical Ingredients (APIs), surgical products, veterinary
Slide 7: Transformational growth story: from API player to formulations and brands
Company Overview Transformational growth story - Evolving from an “API Player” to a “Formulations & Brands” Company The inception of Vaishali Vaishali Pharmachem entered Vaishali Pharmachem designed Vaishali Pharmachem The most significant Established own office at Pharmachem, an APIs into a joint v
Slide 8: Global presence across multiple markets
Company Overview Has a global presence across multiple markets Russia Kyrgyzstan Armenia Tajikistan Afghanistan Turkey Bangladesh Morocco Jordan Pakistan Myanmar India Nigeria Yemen Cambodia Nicaragua Ethiopia Vietnam Ghana Costa Rica Tanzania Cameroon Papua New Guinea D R Congo Kenya Madagascar Zim
Slide 9: Relationship with esteemed clients
Company Overview Relationship with esteemed clients bring credibility to product offerings Key Clientele in Domestic Market Customer Name Address Product Relationship Tenure Claris Life Sciences Limited Gujarat 15 Years Pharmaceutical raw materials, intermediates, APIs, Medopharm Private Limited Tam
Slide 10: Seasoned and experienced team
Company Overview Company managed by a seasoned and experienced team of professionals Mr. Atul Vasani Mr. Dewansh Vasani Mr. Hemant Pathak Chairman & Managing Director Non-Executive Director Chief Executive Officer o An experienced professional, with the responsibility o Over 40 years of experience i
Slide 11: SWOT analysis
Company Overview SWOT analysis Opportunities Strengths o Strong market demand for generic and branded o Immense experience in the pharmaceuticals formulation products from India in overseas markets industry S o Significant market potential for novice branded products o Dynamic and varied product por
Slide 12: Business Transformation Strategy
Business Transformation Strategy Business transformation initiatives to support the long-term growth strategy Moving Up the Value Chain Value Creation Foray into high-value products > Scale-up share of exports in total business and achieve economies of scale Create differentiated processes and produ
Slide 13: Way Forward: near-term objectives
Way Forward Near-term objectives to achieve higher growth and expansion o Vaishali Pharma is actively investing in new product registrations which act as an entry barrier in the pharmaceutical industry, in terms of cost as well as time. o About 20% of the company’s products generate 80% revenues. In
Slide 14: Steps to achieve exports goal of Rs. 300 crore
Way Forward Multiple steps to be undertaken to achieve exports goal of Rs. 300 crore To achieve Rs. 300 crore The company is already export target, the company exporting to 20+ plans to apply for The company is planning to countries and is in talks registration of more than have 200 registrations in
Slide 15: Forward integration to strengthen value chain
Way Forward Forward integration to strengthen value chain and generate better operational efficiencies Leverage robust client Support growing export Focus on high-value Explore new product relationships business products opportunities Relationship with established In FY 2020, the company To enhance
Slide 16: Nutraceutical Sprays
Nutraceutical Sprays New line of products by the Company Recently, the company has launched novice nutraceutical oral sprays, which are available in different flavours and have high compliance rate due to the convenience of consuming it. The company has conviction to sell these products both in expo
Slide 17: Gummies
Gummies New line of products Apart from being healthy and tasty, gummy vitamins are easy to swallow and light to digest, making them an ideal choice for geriatric population and children. Gummies, which come in the form of soft chewable toffies can replace these conventional supplements and create a
Slide 18: Essentials for COVID-19 Pandemic
Essentials for COVID-19 Pandemic New line of products by the Company o Vaishali Pharma has followed a dynamic and flexible business approach in its endeavour to cater to the Healthcare needs of the Society. o The company has taken a stride forward to fight against the COVID-19 pandemic by launching
Slide 19: Pharmaceutical market growth
Industry Overview Pharmaceutical market growth Global Pharmaceutical Market and Outlook Major Therapeutic Areas in India - By Value (2018) Source: IQVIA Market Prognosis, Sep 2018; IQVIA Institute, Dec 2018 Indian Pharmaceutical Market and Outlook Source: IBEF Update, December 2019 o Indian Pharma g
Slide 20: Indian APIs Market Overview
Industry Overview Indian APIs Market Overview Indian APIs Domestic Consumption Market India’s Overall APIs Imports India’s APIs Imports from China Source: ASSOCHAM Report, RNCOS Estimation Source: News Articles Source: News Articles Indian APIs Market - Share of Captive and Merchant Market (FY 2016)
Slide 21: Issues pertaining to imports of APIs from China
Industry Overview Issues pertaining to imports of APIs from China… High Dependence on Chinese Imports Quality Issues o India sources over 65% of APIs used in the manufacturing of various o Indian pharmaceutical manufacturers witnessed quality issues in APIs antibiotics, antihypertensive drugs, anti-
Slide 22: Significant opportunity to domestic APIs manufacturers
Industry Overview …Which offers significant opportunity to domestic APIs manufacturers Potential Incremental Opportunity for Indian APIs Manufacturers Average Capacity Utilization Rates of APIs Manufacturing Units Global APIs Industry Output Ramp up US$155-180 billion (2018) Opportunity China (20%)
Slide 23: India is one of the largest exporters of pharmaceutical products
Industry Overview India is one of the largest exporters of pharmaceutical products India’s Pharmaceutical Exports India’s Pharmaceutical Exports (Region-wise FY 2018) Source: IBEF Presentation April 2019, News Article Source: IBEF Presentation April 2019, News Article o Indian pharmaceutical compani
Slide 24: ASEAN pharmaceutical market
Industry Overview ASEAN pharmaceutical market Large Population Baby Boom Almost 700 million peopl e, 9% of th e world popul ation, Ea ch yea r 7.3 mi llio n babi es are born in AS EAN live in ASEAN US$20 billion Urbanization Affordability Popul ation densit y grew by more than 15% in t he last t en
Slide 25: Russian and African pharmaceutical market
Industry Overview Russian And African pharmaceutical market Russian Pharmaceutical Market Drug Packages Sold in Russia Source: Deloitte Report, 2018 Source: News Articles African Pharmaceutical Sales Growth Drivers of African Market 1.3 Billion o Projected to be added to African population between 2
Slide 26: Gummy vitamins market gaining traction
Industry Overview The gummy vitamins market is gaining traction across the globe as well as in India Gummy Vitamins Market o As per Industry ARC Analytics, the gummy vitamins market across the globe was valued at US$2,864 million in 2017 and is projected to reach US$3,804 million by 3804 2023, regis
Slide 27: Financial Performance: revenue, gross profit, EBITDA
Financial Performance Revenues remains in the band but the mix is changing Total Revenue (Net Sales) and Growth Gross Profit and Gross Margin 100 95 14% 12 16% 75 9 9 75 67 66 68 0% 9 8 12% 60 Rs. Crore 6 Rs. Crore 50 -14% 6 5 8% 3 3 4% 25 -28% 0 0% 0 -42% FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY
Slide 28: Financial Performance: operating and net profit
Financial Performance Efficient utilization of debt has supported net profit after FY 2017 Operating Profit and Operating Margin Net Profit and Net Profit Margin 8 12.00% 100 1.6% 6.80 80 5.60 75 70 1.2% 6 9.00% 50 Rs. Lakhs 4.00 Rs. Crore 4 6.00% 50 0.8% 2.80 2.56 2 3.00% 25 0.4% 1.00 10 2 3 0 0.00
Slide 29: H2FY2020 Performance
Financial Performance H2FY2020 Performance Rs in Cr H2FY2020 H2FY2019 % yoy FY2020 FY2019 % yoy Total Revenue 32.82 56.40 -41.81% 62.26 77.07 -19.22% Raw Material Cost 25.79 52.40 -50.78% 51.09 68.66 -25.59% Gross Profit (GP) 7.03 4.00 75.80% 11.17 8.41 32.79% Employee Cost 0.93 0.68 37.10% 1.93 2.1
Slide 30: Balance Sheet
Financial Performance Balance Sheet Liabilities (Rs Cr) 2017-18 2018-19 2019-20 Assets (Rs Cr) 2017-18 2018-19 2019-20 Share Capital 6.59 6.59 10.55 Net Block 1.35 1.37 1.57 Reserves & Surplus 14.01 14.81 10.84 Capital Work-In-Progress - - - Networth 20.60 21.40 21.38 Other Non-Current Assets 3.71 4
Slide 31: Thank You
Thank You For Further Information – contact: Maithili Thakker Cell No.: + 91 97250 26676 research@bluestonefindelis.in
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