Zota Health Care Ltd. · NSE:ZOTA
Zota Health Care — Investor Presentation (July 2019)
37 slides from Zota Health Care's investor presentation, Jul 10, 2019
Slide 1: Submission letter to NSE
Lzoto' healthcare ltd. July 10,2019 To, The Manager Listing Depa rtment, The National Stock Exchange of lndia [imited Exchange Plaza, Ba ndra Kurla Complex, Band ra (E), Mumbal-400051 Dear Sir/Madam, Trading Symbol: ZOTA Sub: lnvestor Presentation Ref: Regulation 30(6) of sEBl (listing obligations a
Slide 2: Zota Health Care Limited Investor Presentation July 2019
ZOTA HEALTH CARE LIMITED Investor Presentation July 2019
Slide 3: Disclaimer
Disclaimer 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 except by means of offer do
Slide 4: Table of Content
Business Overview 4-7 Our Journey 8-9 Industry Overview 10-18 Zota’s Business Model 19-24 Davaindia at a Glance 25-28 Key Management Profile 29-31 Financial Metrics 32-35 Table of Content
Slide 5: Business Overview
Business BusinessOverview Overview Incorporated in 2000, Zota Health care Ltd (ZHL) develops, manufactures and markets Generic, Ayurvedic, Nutraceuticals and Over the Counter (OTC) Pharmaceutical products • Focused segments bifurcated in to Domestic, Exports and Retail Pharmacy chain which operates
Slide 6: Our Philosophy
Our Philosophy OUR - Our vision is to become a global Health Care organization driven by people, research and technology and to be recognized as domestic and internationally integrated Health care and pharmaceutical VISION company through Innovation, Quality and Competence. OUR - Our mission is to b
Slide 7: Zota Health care at a Glance
Zota Health care at a Glance 1050+ 22+ 143+ 360+ 3000+ DOMESTIC DISTRIBUTORS EXPORTING TO COUNTRIES DAVAINDIA STORES TEAM STRENGTH PRODUCTS 1250+ 68% 22% 9% ₹ 18% DAVAINDIA PRODUCTS PROMOTER HOLDING SEZ UNIT CAPACITY 5 YEAR REVENUE CAGR 5 YEAR PAT CAGR UTILIZATION 6
Slide 8: Zota Health care's Strength
Zota Health care’s Strength 01 03 05 07 09 Well- Diversified Strong Profit experienced WHO,GMP, 11% CAGR years product portfolio Diversified promoters and with presence in GLP certified (FY15-19) , 5 yr geographical management in different manufacturing Avg Profit footprints the similar therapeutic
Slide 9: Our Journey
Our Journey 4. Zota
Slide 10: Our Journey
Our Journey Acquired all Export oriented Got listed on the Acquired trade brand names speciality Crossed the mark, brand NSE emerge Opened 143 of Sayona manufacturing benchmark of names of platform through Davaindia till Medicare Pvt. unit was 10 crore+ Vision and and Initial Public date Ltd. throug
Slide 11: Industry Overview
Industry Overview 4. Zota
Slide 12: Generic v/s Branded
Generic v/s Branded Safe Effective ₹ High-Quality ₹₹₹ GENERIC BRANDED Active Ingredient COSTS COSTS Performance Strength Dosage Form According to the World Health Organization, if doctor started prescribing generic medicines, then health expenditure can be reduced by 70% in developed countries and d
Slide 13: Pharma Sector in India
Pharma Sector in India Bulk Drug / API Formulations (Manufacture) Domestic Exports Patented Drugs Branded Drugs Generics Generics 12
Slide 14: Indian Pharmaceutical Industry
Indian Pharmaceutical Industry 21 10.0 1,600 1,473 8.9 19 18.12 9.0 1,306 17.87 1,400 16.41 8.0 17 15.53 1,200 7.0 1,044 14.59 5.7 15 6.4 6.0 1,000 852 763 781 13 5.0 800 651 11 4.0 539 492 582 600 3.0 409 9 1.4 400 2.0 7 1.0 200 96 5 0.0 0 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2019 - Ju
Slide 15: Industry Statistics
Industry Statistics India's Import of Drug Formulations India Pharmaceutical Industry Public Health Expenditure % of GDP Per Capita Health Expenditure (In US Dollars) Composition 5 1.6 1.7 1.7 1.8 Maldives 9.40% Maldives 770 1.5 1.6 1.6 4.5 1.6 21% 4.3 Thailand 2.90% Thailand 166 4 1.4 3.3 3.5 1.2 1
Slide 16: Average Pharma spends by country
Average Pharma spends by country 250 200 150 Average spend - $107 person/year 100 50 0 Pharmerging Per Capita Spending by Country, 2022 Source: IQVIA Market prognosis, Sept 2017; IQVIA Institute, Oct 2017 Notes: Spending per capita, per capita growth and overall spending growth in Constant US $. Rep
Slide 17: Growth drivers for Indian generic / Key Industry Challenges
Growth drivers for Indian generic Key Industry Challenges Inherent Competencies and Low-cost Manufacturing Capabilities Highly Fragmented Market Increasing Consolidation Through Co-operative Alliances Corruption and Red-Tapism Conducive Regulatory Environment ₹ Drug Price Control Measures The Medica
Slide 18: Why branded drugs?
Why branded drugs? 4 zota
Slide 19: Why do people still take brand-name drugs?
Why do people still take brand-name drugs ? Basically, it's marketing. If the drug company can convince the average patient that the generic is the "cheap" version and that they deserve the best, many patients buy it. Also, if a patient is finally on a drug that works, he might be less likely to swi
Slide 20: Zota's Business Model
4. Zota Zota’s Business Model 19
Slide 21: 3-Pronged Business Strategy
3-Pronged Business Strategy Domestic Revenues Export Revenues Davaindia Revenues 72% 21% 7% ( ₹ 6,312 Lakhs) ( ₹ 1,808 Lakhs) ( ₹ 598 Lakhs) Franchised 80%-85% Fill rate, 100% Sold at MRP by 259 Dossiers 52% YoY growth Business 1250 95% Pvt label Outsourced Franchisee Distributor filed SKU’s product
Slide 22: Operational Metrics – Annual
Operational Metrics Pronged – Annual Business Revenue Mix Strategy Domestic CAGR 10.4% Exports CAGR 21.4% FY18 FY19 6,746.4 6,909.7 6,664.3 15% 21% 5,866.1 5,350.8 4,559.8 3,825.4 1,807.7 1,190.0 79% 607.3 85% 565.5 431.3 493.7 295.5 Domestic Revenues Domestic Revenues FY13 FY14 FY15 FY16 FY17 FY18
Slide 23: Domestic Business – Value Chain
Domestic Business – Value Chain Zota Healthcare presence in value chain Clearing Pharmacy End and OR Consumer API FDF Zota Marketing Forwarding Distributor Retailer Hospital 3000+ Brands 1050 Distributor Marketing Manager Regional Manager Area Sales Manager Medical Representative Doctors 22
Slide 24: Export Business – Value Chain
Export Business – Value Chain Zota Healthcare presence in value chain API Manufacturing FDF Zota Marketing Distributor Exported End Consumer 250 Each country Distributors Supply to 22 Asian , African and CIS Countries 23
Slide 25: Davaindia Business – Value Chain
Davaindia Business – Value Chain Davaindia ZOTA Wholesaler Franchisee Consumer 24
Slide 26: Davaindia
Davaindia 4. Zota
Slide 27: Davaindia – Pharmacy Retail Chain
Davaindia– Pharmacy Retail Chain Franchisee Model Asset light Business Model Educating customers about inexpensive medicines Dedicated cloud based software Started with 4 stores and for retailers reflecting real time touched a 143 stores data to Zota 70% Medicinal & 30% Cosmetics, KEY 500 stores ant
Slide 28: Davaindia
Davaindia 27
Slide 29: Davaindia Footprints
Davaindia Footprints HARYANA (2) UTTARAKHAND (2) Dehradun(2) RAJASTHAN (2) Jaipur(1), Jodhpur(1) UTTAR PRADESH (3) GUJARAT (77) Firozabad(1), Ghaziabad(1), Lucknow(1) Surat(17), Navsari(3), Kheda(3), Vadodara(3), Rajkot(13), Ahmedabad(12), Gandhinagar(4), Mehsana(4), Sabarkantha(3), % Davaindia acro
Slide 30: Key Management Profile
Key Management Profile 4. Zota
Slide 31: Zota Healthcare Organisational Structure
Zota Healthcare Organisational Structure Chairman/ Promoter Mr. Ketan Chandulal Zota Promoter / Whole Time Promoter / Whole Time Promoter / Whole Time Managing Director Director Director Director Mr. Himanshu Muktilal Zota Mr. Moxesh Ketanbhai Zota Mr. Kamlesh Zota Mr. Manukant Zota CS CFO Mr. Ashvi
Slide 32: Management Team
Management Team Mr. Ketan Zota Mr. Moxesh Zota Designation – Promoter, Non-executive Chairman Position Held – Small retail medical store Designation - Managing Director Experience – 35 years Position Held – Entrepreneur and associated with the Company Qualification – D Pharmacy Experience – 5 years
Slide 33: Financial Metrics
Financial Metrics 4. Zota
Slide 34: Capacity & Utilization
Capacity & Utilization Particulars FY14 FY15 FY16 FY17 FY18 FY19 Installed Capacity (Nos. in Lakhs) Tablet 4800 4800 4800 4800 4800 4800 Capsules 5400 5400 5400 5400 5400 5400 Utilized Capacity (Nos. in Lakhs) Tablet 504 921 1533 1186.27 2211.29 1842 Capsules 845 170 98 113.49 344.29 364 Utilized Ca
Slide 35: Profit & Loss Statement
Profit & Loss Statement Particulars (INR Lakhs) FY14 FY15 FY16 FY17 FY18 H1FY18 H1FY19 H2FY18 H2FY19 FY19 Income from Operations 5,011.2 5,646.3 6,473.3 7,158.0 7,785.2 3,913.7 4,326.6 3,870.8 4,236.4 8,562.9 Other Income 10.2 1.4 7.7 5.6 151.9 60.5 100.3 91.4 54.2 154.5 Total Income 5,021.4 5,647.8
Slide 36: Balance Sheet & Key Ratios
Balance Sheet & Key Ratios Particulars (INR Lakhs) FY14 FY15 FY16 FY17 FY18 FY19 Share capital 1,196.9 1,436.3 1,436.3 1,436.3 1,754.3 1,754.3 Reserves and Surplus 384.2 395.7 707.8 1,262.0 5,223.4 5,138.5 Non-current liabilities 521.3 548.7 272.7 466.8 64.7 87.1 Current liabilities 1,381.7 1,657.6
Slide 37: Thank You
Thank You Mr. Himanshu Zota/Mr. Ashvin Variya "ZOTA HOUSE", 2/896, Hira Modi Street, Sagrampura, Surat-395 002(Gujarat) hzota@zotahealthcare.com cszota@zotahealthcare.com www.zotahealthcare.com