We are Global Leaders & Expanding says Rahul Nachane, MD, NGL Fine-Chem Excl @IBMTVLIVE

Summary

Rahul G, Managing Director of NGL Fine Cam Limited, discusses the company's 43-year journey specializing in APIs for the veterinary pharmaceutical sector. With a focus on farm animals, NGL Fine Cam has carved a niche in the market, exporting to 55 countries and holding significant market share in its top products. The company, recognized in Forbes' Best Under a Billion list, is financially robust with a 15% average EBITDA over the last decade. Rahul highlights the company's high-quality standards, ISO certifications, and European guidelines compliance, emphasizing future growth potential despite current challenges like pricing pressures and competition from China.

Takeaways

• 😀 Rahul G is the Managing Director of NGL Fine-Cam Limited, a company that manufactures APIs (Active Pharmaceutical Ingredients).
• 🏭 NGL Fine-Cam Limited specializes in veterinary pharmaceuticals, focusing on APIs for farm animals like cows, horses, goats, and sheep.
• 🌐 The company's products are exported to 55 countries, with a strong emphasis on the global market, particularly in the top five products where they hold more than 50% market share.
• 🏅 NGL Fine-Cam Limited has been recognized by Forbes as one of Asia's Best Under a Billion companies, featuring in their list in 2015, 2016, and 2021.
• 📈 The company has a robust financial standing, reporting profits of over 15% EBITDA on average for the last 10 years.
• 🔬 NGL Fine-Cam has a dedicated R&D team of about 40 scientists working on new and innovative products.
• 🌟 The company meets high-quality standards, including ISO certifications and European guidelines for pharmaceutical manufacturing.
• 💹 NGL Fine-Cam is planning a significant expansion, investing 200 crores over the next two years, with a focus on entering the US and European markets.
• 📊 The veterinary industry is growing rapidly, with a strong potential for growth in companion animal healthcare as standards of living improve globally.
• 📈 Despite facing competition and pricing challenges, especially from China, the company is optimistic about future growth and opportunities in the animal health sector.

Q & A

What is the primary business of NGL Fine-Cam Limited?

NGL Fine-Cam Limited is a company that manufactures APIs (Active Pharmaceutical Ingredients). They sell these APIs to other pharmaceutical companies who then make tablets, capsules, and injections.

How long has NGL Fine-Cam Limited been in operation?

NGL Fine-Cam Limited is close to 43 years old and has been an API company throughout its journey.

What was the initial focus of NGL Fine-Cam Limited when it started?

Initially, NGL Fine-Cam Limited focused on making human pharmaceuticals, but for the last 27-28 years, they have specialized mainly in Veterinary Pharmaceuticals.

What types of animals does NGL Fine-Cam Limited primarily serve with their products?

NGL Fine-Cam Limited primarily serves farm animals such as cows, horses, goats, and sheep with their range of products.

How many different APIs does NGL Fine-Cam Limited produce today?

NGL Fine-Cam Limited makes almost about 30 different APIs today, with close to 28 of them being for animal or veterinary use, and two for human use.

What makes NGL Fine-Cam Limited unique in the Indian pharmaceutical industry?

NGL Fine-Cam Limited is unique because it is one of the few companies in India that is focused exclusively on Animal Health, which is more popular across the world.

Has NGL Fine-Cam Limited been recognized for its performance?

Yes, NGL Fine-Cam Limited has been listed in Forbes' 'Best Under a Billion' in Asia's best billion companies in 2015, 2016, and 2021, which is a major achievement.

What is the export to local sale ratio for NGL Fine-Cam Limited?

The export to local sale ratio for NGL Fine-Cam Limited is close to 3 to 1, meaning almost 75% of what they produce is exported.

How many countries does NGL Fine-Cam Limited export to?

NGL Fine-Cam Limited exports its products to almost 55 countries across the world.

What are the top five products in which NGL Fine-Cam Limited is a global leader?

The script does not specify the exact names of the top five products, but it mentions that NGL Fine-Cam Limited holds more than 50% market share in those products on a global scale.

What quality certifications does NGL Fine-Cam Limited have?

NGL Fine-Cam Limited has ISO certification 9,1 for Quality, 14,1, and 45,000 for health and safety, and they also meet the European guidelines for pharmaceutical manufacturing known as the IC guidelines.

What is the financial strength of NGL Fine-Cam Limited?

NGL Fine-Cam Limited has been reporting profits of over 15% EBITDA on average for the last 10 years, indicating that they are financially strong.

What are the company's expansion plans?

NGL Fine-Cam Limited plans to invest close to 200 crores over the next 2 years to expand their capacity, with 160 crores going into a green field venture to cater to the US and European markets, and another 40 crores to expand capacity in existing markets.

Outlines

00:00

💊 Introduction to NGL Fine Cam Limited and Its Specialization

Rahul G, the Managing Director of NGL Fine Cam Limited, introduces his company, which has been in operation for approximately 43 years. The company specializes in manufacturing APIs (Active Pharmaceutical Ingredients) for both human and veterinary pharmaceuticals, with a significant focus on the latter for the past 27-28 years. The business model is B2B, selling APIs to other pharmaceutical companies for the production of tablets, capsules, and injections. NGL Fine Cam Limited is recognized for its specialization in animal health, particularly for farm animals, and is one of the few companies in India to focus exclusively on this niche. The company has a diverse product range, with 28 out of 30 APIs designed for veterinary use. Rahul highlights the company's inclusion in Forbes' list of Asia's best under a billion companies, reflecting its profitability and growth. The company's export-oriented strategy is emphasized, with 75% of production being exported to 55 countries, serving over 400 customers globally.

05:02

🌍 Global Market Share and Expansion Plans

Rahul G discusses NGL Fine Cam Limited's position in the global market, particularly in the veterinary industry, where the company competes effectively against China, holding more than 50% market share in its top five products. The industry is experiencing rapid growth, with a significant opportunity in the companion animal segment. Despite facing challenges such as global competition and pricing pressures, the company maintains a strong quality standard, with ISO certifications and adherence to European guidelines for pharmaceutical manufacturing. The company has not faced any product rejection in the last 20 years, a testament to its high-quality standards. Rahul also mentions the company's financial strength, with a consistent profit margin of over 15% EBITDA for the past decade. The company is embarking on a significant expansion plan, investing 200 crores over the next two years, which includes setting up a new plant to cater to the US and European markets. The future potential for the company is considered huge, with a largely untapped market and ample room for growth.

10:02

🌐 Veterinary Market Potential and Future Outlook

In the final paragraph, Rahul G addresses the potential of the veterinary market globally, noting that there is significant room for growth, especially in regions like Latin America and Africa where the penetration of veterinary products is currently low. He suggests that as living standards improve in these areas, the demand for animal medicines will increase. The conversation concludes with Rahul expressing optimism about the company's future and inviting investors to consider NGL Fine Cam Limited as a standout company with strong operations and a promising growth story.

Keywords

💡API

API stands for Active Pharmaceutical Ingredients, which are the key components that give medications their intended effects. In the context of the video, NGL Fine Limited manufactures APIs, primarily for the veterinary pharmaceutical sector. The company's specialization in veterinary APIs highlights its niche in the broader pharmaceutical industry, focusing on products used in treating animals rather than humans.

💡Veterinary Pharmaceuticals

Veterinary Pharmaceuticals refer to medications and other medical preparations intended for use in animals, particularly in the context of the video, farm animals like cows, horses, goats, and sheep. NGL Fine Limited has specialized in this area for the last 27-28 years, indicating a strategic focus on animal health, which differentiates it from many other pharmaceutical companies that serve both human and animal markets.

💡B2B Business

B2B stands for Business-to-Business, which describes a commercial transaction between two businesses rather than between a business and an individual. NGL Fine Limited operates as a B2B business, selling its APIs to other pharmaceutical companies that manufacture finished dosage forms like tablets and capsules for veterinary use.

💡Export-Oriented

The term 'export-oriented' refers to a business strategy where a significant portion of production is intended for international markets. In the video, it is mentioned that NGL Fine Limited exports approximately 75% of its production to about 55 countries, emphasizing the company's reliance on and success in global markets.

💡Market Leaders

Being a 'market leader' in a product category means holding a dominant position in terms of market share or influence within that market. The video states that NGL Fine Limited leads in its top five products globally, even competing against China and holding more than 50% market share in terms of volume, showcasing the company's strong competitive position.

💡ISO Certification

ISO Certification refers to the international standards set by the International Organization for Standardization. NGL Fine Limited holds ISO 9001 for Quality, ISO 14001 for environmental management, and ISO 45001 for health and safety, indicating the company's commitment to high-quality standards and operational excellence.

💡European Guidelines (GMP)

GMP stands for Good Manufacturing Practice, which are guidelines that ensure products are consistently produced and controlled according to quality standards. The video mentions that NGL Fine Limited meets European GMP guidelines, signifying that its manufacturing processes adhere to stringent international standards, which is crucial for pharmaceutical companies.

💡R&D Team

R&D stands for Research and Development, which is a critical function in pharmaceutical companies for creating new products and improving existing ones. The video highlights that NGL Fine Limited has a team of about 40 scientists dedicated to R&D, emphasizing the company's focus on innovation and product development.

💡Profitability

Profitability refers to the ability of a company to generate profits. The video mentions that NGL Fine Limited has reported profits of over 15% EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) on average for the last 10 years, indicating strong financial performance and efficiency.

💡Expansion Plans

Expansion plans refer to a company's strategies to grow its operations, often through capital investments. The video discusses NGL Fine Limited's plans to invest approximately 200 crores over the next two years, with a significant portion going towards a new plant to cater to US and European markets, reflecting the company's ambition for growth and market penetration.

💡Global Competition

Global competition refers to the competitive landscape in which companies operate on an international scale. The video notes that NGL Fine Limited competes globally, particularly with China, highlighting the company's ability to compete in the international market and the challenges it faces due to strong competition, especially in pricing.

Highlights

Introduction of Rahul G, Managing Director for NGL Fine-Cam Limited.

NGL Fine Limited specializes in manufacturing APIs for the pharmaceutical industry, focusing on Veterinary Pharmaceuticals.

The company has been in operation for approximately 43 years, with a specialization in veterinary APIs for the last 27-28 years.

NGL Fine Cam's products are used for treating farm animals such as cows, horses, goats, and sheep.

The company produces around 30 different APIs, with 28 dedicated to animal use and two for human use.

NGL Fine Cam is recognized as one of the few companies in India focused exclusively on Animal Health.

The company has been listed in Forbes' 'Best Under a Billion' for Asia in 2015, 2016, and 2021.

NGL Fine Cam has a strong export focus, with approximately 75% of production being exported to 55 countries.

The company holds a leadership position in its top five products, with over 50% global market share in terms of volume.

The veterinary industry is growing rapidly, with a strong focus on both farm and companion animals.

NGL Fine Cam meets high-quality standards, including ISO certifications and European guidelines for pharmaceutical manufacturing.

The company has not faced any product rejection in the last 20 years, reflecting its commitment to quality.

NGL Fine Cam has a robust R&D team of around 40 scientists working on new and existing products.

The company has reported profits of over 15% EBITDA on average for the last 10 years.

NGL Fine Cam is planning a significant expansion, investing 200 crores over the next two years to increase capacity.

The company is optimistic about future growth, despite current pricing challenges and competition from China.

The veterinary market has significant untapped potential, especially as standards of living improve globally.

Transcripts

hello everyone we are today with uh

Rahul G he is managing director for NGL

fine cam limited how are you sir I am

very well thank you for this opportunity

which you are giving me yeah pleasure is

all mine sir okay sir please take us

through your success Journey

yeah so I'm I'm uh happy to introduce my

company to you uh NGL fine limited is uh

my company which manufactures uh apis

active pharmaceutical

ingredients um so broadly the Pharma

sector is divided into two parts one is

what we call as the API industry and the

second is the industry which makes the

finished dosages so everybody is aware

of the finished dosages because those

are the tablets capsules which are

bought uh and consumed by people but the

basic drug which goes into making the

tablets and capsules is made by

companies like ours and we sell it to

other Pharma companies who make the

tablet capsule

injection so this is a B2B business

essentially at the

background uh NGL fine cam today is uh

close to about uh 43 years

old um it's been a API company all

throughout its Journey initially when we

started we used to make human

Pharmaceuticals but for the last about

27 28 years we are specialized mainly on

Veterinary Pharmaceuticals so our Focus

has been on making products for the um

Veterinary industry animals

essentially and uh in that our focus is

more on farm animals so cows horses goat

sheep you know those kind of

animals so we make a range of products

which are used uh uh for treating uh

these animals and uh these are

essentially in the range of things like

ders um

uh feed supplements phosphorus

supplements anti Protools which you know

for treating blood diseases so different

segments we make almost about 30

different API today of which uh close to

about 28 are for animal use uh for

veterinary use and two are for uh human

use uh our company is one of the unique

companies here in India there are not

many companies which are focused

exclusively on Animal Health there are

very few companies in that space here in

India though it's more popular across

the world where you find that you know

companies are doing exclusively Animal

Health um in India most of the Pharma

companies do animal health as well as

human health so they are a combination

uh

company so we stand out because we are

very focused on Animal

Health uh our company has also been

mentioned uh in the fobes uh list so

fobes publishes what they call as a best

under billion Asia's best billion

companies where they go through close to

something like 20,000 listed companies

in

Asia so we are talking about China

Pakistan India Bangladesh

Vietnam uh

Malaysia uh Indonesia all of uh it

covers the entire Asia they go through

that and then based on the profitability

and the growth story of that company

they come with a

listing so we have been listed under the

F's uh best and billion in 2015 in 2016

and in 2021 so we have figured in that

list three times which is a uh major uh

achievement for

us um in terms of our uh growth story or

our sales we are

um uh very focused on

export

so our export to local sale is close to

about 3 to 1 so almost 75% of what we

produce we export and today we are

exporting our products to almost about

55 countries across the world we have

over to 400

customers and uh our product is now well

accepted and well regarded all over the

all over the

world and we also

are leaders in our top five products and

when I say leaders I mean on a global

scale we compete against China also and

we hold more than 50% market share in

those products in terms of

volume uh the veterinary industry is

growing uh at a very rapid Pace right

now um it's broadly divided into what

they call as farm animals and companion

animals companion animals mean you know

the pets which we have at home dogs cats

and farm animal means the car C and

horses and camels which are used in

farms and the growth is very strong

right now in the companion animal

space so the future opportunities in

this industry are large and uh uh

there's a lot of scope which is uh yet

to be

explored

um at the same time it also gives rise

to challenges which we face because we

are competing on a global basis China is

a big compet

competitor but

um we are currently in a space where we

can we can compete with China very

comfortably we are very cost competitive

when it comes to our products and uh our

product is well accepted uh across the

world we manufacture to the highest uh

quality standards so uh we have ISO

certification 9,1 for Quality uh 14,1

and 45,000 for health and safety we also

meet what is known as the European

guidelines uh uh for pharmaceutical

manufacturing they are called as the IC

guidelines so we meet the European

guidelines also in all all our

plants so we have very high standards in

our uh quality standards and we are one

of those few companies where we can

proudly say that we have not faced any

product rejection in the last 20 years

so that's the level of uh quality which

we uh

meet we have a full fledged R&D team uh

in our company we have a team of close

to about 40 scientists who work on uh on

new products and innovating existing

products uh we have a very strong team

in terms of uh quality in terms of

marketing in terms of uh placing our

products the company has been uh

reporting profits of over 15% Eva or an

average for the last uh 10 years uh we

are fairly financially strong we have

just embarked now on a big expansion

where we plan to invest close to about

200 crores over the next 2 years uh to

expand our

capacity uh 160 crores is going to go

into a green field Venture where we are

setting up a plant to cater to the US

and uh European markets another 40 cror

will be invested to expand our capacity

uh uh in our uh existing uh Market

markets

uh the future potential for the company

is huge because the market is uh largely

untapped we operate more in you know

small sections where uh we are making uh

products for uh the animal indust

industry it's not as big of Market let's

say as like the human industry but

there's still amples room for growth and

we are very optimistic about how the

things are going to face out in the

future uh we believe uh strongly in our

uh growth story and in our internal

strength and uh uh we encourage you also

to look at uh our company and uh uh I'm

sure you'll find that we are um one of

those standout companies which are which

have got very strong uh

operations okay so what message you

would like to give to the

investors well um as I said meaning it's

a strong uh story for us right

now uh the future growth is uh wide open

currently postco we are facing Chen in

terms of pricing uh and especially very

strong competition from China but I very

optimistic about the future and I think

uh major successes are yet to come okay

so please tell us about your industry

globally uh the veterinary Market

industry is uh quite strong um uh we

need to understand the penetration of in

the markets is not very uh big currently

uh so there are a lot of countries let's

say in Latin America in Africa where

people are poor and they are not able to

afford medicines for themselves so when

they can't afford it for themselves how

can they do it for their animals so

penetration is still low there is huge

potential as the standard of living

starts going up and there is ample room

for growth anything else you would like

to

add no I have covered more or less uh

all the aspects which I would have like

to speak about okay thank you Rahul G

for your uh precious time and

information given to us thank you very

much for the opportunity