Zota Health Care Ltd. · NSE:ZOTA
Zota Health Care — Investor Presentation (November 2024)
48 slides from Zota Health Care's investor presentation, Nov 26, 2024
Slide 1: NSE cover letter for Investor Presentation
November 26, 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 Requirem
Slide 2: India's Largest Private Generic Pharmacy Retail Chain
INDIA’S LARGEST PRIVATE GENERIC PHARMACY RETAIL CHAIN November 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 470 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 GROUP CEO AND NON-EXECUTIVE DIRECTOR KEY MANAGERIAL PERSONNEL Total Experience: 38+ Total Experience: 10+ Total Experience: 23+ • Holds a D-Pharma
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 R AJ E S H K U M AR PRITHISH KUNDU SGM (South & North) – SGM - Information Technology G M - B2B, PCD & ET HICAL COCO & FOFO OPERATIONS Total Experience: 17 Years Total Experience: 21 Years Total Experience:
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 ( Q 2F Y 2 5 ) 1 . DAVA I ND I A • A Retail generic pharmacy chain providing quality generic medicines. Consolidated 02 Store variants 30% – 90% • Focuses only on private-label products in: Company Owned Company
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. *As of 4th Oct 2024 2000+ 1,165* 501 664 1.9+ crores SKUs Total no. COCO stores FOFO St
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 The time required to open a new COCO store has been significan
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 501 Operated by wholly-owned subsidiary Operational Davaindia Health Mart Davaindia Health Mart Ltd COCO stores 12 Enhancing Store Significant rent rationalization to ₹ 33,000 p.m. in 3rd phase (300 store
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 501 11.8 387 8.6 6.9 253 5.4 4.7 154 125 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25
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 ₹ ₹ 2,714 ₹ 247 ₹ 249 ₹ 241 ₹ 238 ₹ 229 ₹ 2,050 ₹ 1,660 ₹ 1,346 ₹ 1,154 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25
Slide 24: Younger COCO Stores to fuel growth
Younger COCO Stores to fuel growth 23 zotahealthcare.com davaindia.com Significant Young Store Network 501 231 Many of our stores are relatively new, still in the early stages of their lifecycle. Total COCO Stores COCO Stores <5m While currently modest in revenue, expected to grow multiple folds as
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 6 664 FOFO Franchise Owned Franchise Operated Operational States No. of Stores 2 FOFO stores Uttar Pradesh 134 8 Odisha 90 5 West Bengal 80 40 33 4 Madhya Pradesh 58 Gujarat 43 Haryana 43 24 10 124 Maharashtra 41 24 9 Delhi 35 Bihar 25 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 664 10.4 645 8.9 8.9 627 8.1 7.5 607 577 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25
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 ₹ ₹ 2,840 ₹ 2,608 ₹ 290 ₹ 2,465 ₹ 2,328 ₹ 2,005 ₹ 278 ₹ 274 ₹ 271 ₹ 269 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25
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 * 5,554 Lakhs 60 % Gross Merchandise Value in Q2FY25 Gross Margin in COCO format 1,165 30-90 % Fast growing FOFO & COCO store network* Savings to consumers on Generic medicines 3.25 Lacs sq. ft* 25-30 % T
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: Management Commentary
Management Commentary 42 zotahealthcare.com davaindia.com “We are pleased to announce a robust performance this quarter, marked by 49% revenue growth driven by rising demand for our products. As a part of our expansion strategy, we launched 133 new Davaindia stores in Q2FY25, including 114 COCO stor
Slide 44: Quarterly Revenue Segmentation
Quar terly Revenue Segmentation 43 zotahealthcare.com davaindia.com Business Verticals – Consolidated Revenue bifurcation Davaindia ₹ lakhs Domestic Operations ₹ lakhs Export Operations ₹ lakhs 4,260 3,581 1,586 1,491 1,391 1,915 709 655 472 Q2 FY24 Q1 FY25 Q2 FY25 Q2 FY24 Q1 FY25 Q2 FY25 Q2 FY24 Q1
Slide 45: Annually Financial Snapshot
Annually Financial Snapshot 44 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 5,9
Slide 46: Profit & Loss Statement (Consolidated)
Profit & Loss Statement ( C o n s o l i d a te d ) 45 zotahealthcare.com davaindia.com ₹ in lakhs (Consolidated) Particulars Q2FY25 Q1FY25 Q2FY24 H1FY25 FY24 Export Sales (SEZ) 654.7 472.1 709.3 1126.8 2,003.5 Davaindia Sales 4260.3 3,580.9 1490.6 7841.3 10,355.9 Domestic Sales 1586.5 1,390.9 2327.4
Slide 47: Balance Sheet statement
Balance Sheet statement 46 zotahealthcare.com davaindia.com ₹ in lakhs (Consolidated) As at As at As at As at ASSETS 30th Sept 31st March EQUITY AND LIABILITIES 30th Sept 31 March 2024 2024 2024 2024 Non-Current Assets (i) Equity Share capital 2,740.8 2,584.7 Property, plant and equipment 3,747.3 2,
Slide 48: Thank You
Thank You Contact Infor mation M r. Ashvin Variya "ZOTA HOUSE", 2/896, Hira Modi Street, Sagrampura, Surat-395 002 (Gujarat) cszota@zotahealthcare.com www.zotahealthcare.com EY LLP Siddesh Chawan - siddesh.chawan@in.ey.com Ajit Mishra- ajit.j.mishra@in.ey.com www.ey.com
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