ANG Lifesciences
Introduction:
“ANG Life science India limited is a leading pharmaceutical company engaged in the business of manufacturing and marketing of finished pharmaceutical formulations across all dosage forms. The company has geographical presence across India, Africa, Latin America, Gulf Countries & ROW etc. Presently, the company owns and operates 7 state of the art manufacturing facilities & manufactures over 1000+ formulations at Baddi (H.P). These facilities are designed to meet the requirements of both advanced as well as emerging market opportunities.”
Plants:
All plants are located at Baddi, Himachal Pradesh.
Unit 1: Production block (45k sq. ft.) Manufacturing of dry powder injectables – 1st plant of the company
Unit 2: Acquired Star Biotech building – dedicated Penicillin formulation unit
Unit 3: Acquired Jot Saroop Knits Pvt Ltd – Currently used as a warehouse (Surgical unit in future)
Unit 4: Production block (Cephalosporin Tablet, Cephalosporin Capsule and Dry Syrup & Sachet).
Unit 5: Production block (2.5 lac sq ft) product & capacity – Tablets (300 mn), Capsules (72 mn), Dry syrup section (2.4 mn), Liquid Syrup (9 mn), Liquid Injection Ampoules (9 mn), Liquid Injection Vials (7.2 mn), Prefilled Syringe (1.8 mn)
Unit 6: Production block (1 lac sq ft) product & capacity – Soft Geletin Capsules (60 mn), Lotion (0.7 mn), Ointment (3.6 mn)
Unit 7: Mansa Print & Publishers Ltd: Acquired this company under NLCT liquidation process in FY21. Engaged in printing and packaging business covering manufacturing of packaging products including cartons, corrugated boxes, aluminium foils, etc. It is strategic backward integration move as packaging cost is almost 15-20% of the cost of product.
Journey post listing:
| 2018-2021: | Acquired Star Biotech and MBL Pharma Ltd and doubled the manufacturing capacity |
|---|---|
| Acquired Mansa Printers for backward integration of packing business | |
| 2021-2022: | Completed acquisition of Ind-Swift Ltd Unit 3 & 4, Presently renamed as Unit 4 & 5 of ANG Life Sciences for Rs. 60 cr on deferred payment basis |
| Commissioning of Penicillin unit in Star Bio-Tech at the end of this Current FY | |
| Continuous Automation and process improvement efforts to help attain higher capacities and to add New Molecules. | |
| Plans to venture into API & its derivative & in forward integration. | |
| Plans to venture into B2C Healthcare business. | |
| 2022-2023: | To Setup Greenfield facility of Anti- Cancer and Nutraceuticals in existing surplus land available in times ahead. |
In Nov ’21, acquired 100% shares of ANG Healthcare India Pvt Ltd for Rs. 4 cr. It’s a group company (same promoter). ANG Healthcare India Private Limited is a marketing company selling critical care products to Hospitals and Nursing Homes in therapeutic segments of anti-biotic, anti-infective, anti-malarial, pain management etc. The company has got presence all over India through a network of Super Stockists and 150 Stockists along with a strong sales force of about 60 personnel and expanding at a fast pace. It has FY21 revenue of 9.27 cr and FY22 target of 16 cr.
For acquisition from M/s Ind- Swift Ltd, as against acquisition cost of Rs. 60 cr, company has paid Rs. 22.51 cr (Net cash flow from operations). Balance payment of Rs 37.48 cr will be paid in Equal Annual installment in subsequent years. Acquisition of the company will provide potential annual revenue of Rs. 500 cr – Rs. 600 cr. It is worth pondering that Ind-Swift is a loss making entity and they sold these units to reduce debt (source: company transcript). However, ANG see huge potential in these assets.
M/s Star Biotech was under distress sale and ANG acquired it for Rs. 10 cr. ANG will use this company to manufacture Pencillin products like dry powder injections, dry syrups, and tablets. Brownfield expansion for the same in expected to commission in Q3 FY22. It is expected to generate additional revenue of Rs. 250 cr.
It has also acquired Jyot Sarup Knits Pvt. Ltd and MBP Pharma.
During H1, company has invested Rs. 63 cr to purchase fixed assets. Of this, Rs. 24 cr was from internal accrual and balance was from debt. (Although 1 doubt: In BS long term borrowing has increasing by Rs. 51 cr (Consolidated H1) whereas in CF, borrowing is only Rs. 41 cr.)
Comment by Mr. Rajesh Gupta on H1 FY22 performance:
Production Capacity:
In 2017, company had production capacity of 70 mn pcs per annum for dry powder injections. Its utilization was in FY15 (38%), FY16 (67%) and FY17 (73%).
Current capacity utilization detail is not available.
Future plans:
ANG’s more than 50 Product Registrations are under way (Under Registration) in countries like Yemen, Latin America, Philippines, Vietnam, Myanmar, Uganda, Kenya, Ghana, Nigeria, Congo, Libya, Combodia, Senegal, Togo, Bolivia, Brazil, Venezuela & CIS Countries.
ANG has targeted to Submit Dossiers for 250+ products for registrations in countries like Latin America, South East Asia & African countries by FY24.
They are planning to launch 30 to 50 new product formulation by end of current FY and will launch 200 new product formulation by H1 FY23.
They plan to file DMFs for all new molecules in regulated and semi-regulated market.
Company plans to venture into API derivative Menthol by the end of current FY.
Company is targeting to cross Rs. 350 cr revenue in FY22 and Rs. 800-850 cr in FY23 through domestic brand building, manufacturing of high molecules in existing facilities, product registration in various different countries and commissioning of M/s Star Biotech plant. It plans to achieve sale of Rs. 2000 cr by FY26.
Company is also planning to set up greenfield facility for anti-cancer and nutraceuticals in existing surplus land available in times ahead.
They are also open to more acquisitions to fuel growth.
ANG’s Export share will rise to 30% In current FY as compared to just 7% in FY 20-21 ANG is targeting Rs. 500 cr revenue from Exports by FY24.
Source: Investor Presentations, Listing prospectus, Annual Report
Disclosure: Not invested, Tracking
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