Bharat Serum Amalgamation Will Yield Topline & Bottomline Growth: Mankind Pharma | CNBC TV18

Summary

Mankind Pharma’s Vice Chairman & MD, Mr. Juna, discusses the company’s robust growth in consumer healthcare and exports, highlighting a 20% growth in consumer business and a 60% increase in exports. The company’s long-term strategy focuses on expanding its presence in chronic therapies, with aspirations to grow its share from 28% to 40-50%. He also shares insights into the recent acquisition of Bhat Serums and Vaccines, and its potential to enhance Mankind’s growth. The company remains committed to a sustainable, long-term growth trajectory, prioritizing quality products and a strong market reach across India.

Takeaways

• 😀 Mankind Pharma has experienced strong growth in its consumer healthcare and export businesses, with the latter growing by 57%.
• 😀 The company maintains confidence in its consumer healthcare business, which is expected to grow at a high teen percentage rate, with profits expected to grow between 18-20%.
• 😀 The company aims to expand its export business by focusing on complex, niche products that can command profitability and longevity.
• 😀 The recent acquisition of Bhat Serums and Vaccines is expected to add value to Mankind Pharma, offering high-entry barrier products and unique patented products.
• 😀 Mankind Pharma’s chronic therapies have seen significant growth, with the share of the chronic segment increasing from 28% to 36% over recent years.
• 😀 The company sees its chronic segment reaching even higher levels in the future, potentially growing to 40-50% of its overall portfolio in the long term.
• 😀 Mankind Pharma has experienced a 60% growth in its export business, but the company aims for sustainable, double-digit growth moving forward.
• 😀 The company maintains a strategic approach to exporting, focusing on difficult-to-make, complex products that ensure long-term profitability.
• 😀 On the consumer healthcare front, Mankind Pharma is expanding its distribution reach in the southern regions of India, targeting markets that were previously less penetrated.
• 😀 The company is launching new products, such as a home fertility test kit, which has received positive traction, and a product focused on helping couples plan the best days to conceive.

Q & A

What was the main driver of growth for Mankind Pharma in the second quarter?

The main drivers of growth for Mankind Pharma in the second quarter were their consumer healthcare business, which grew by 20%, and their export business, which saw a significant increase of nearly 60%.

How does Mankind Pharma view its consumer healthcare business moving forward?

Mankind Pharma is confident in the future growth of its consumer healthcare business. The company believes that this segment will continue to expand due to strategic initiatives, including carving out the consumer business as a separate subsidiary, which demonstrates their commitment to this sector.

What has been the company's approach to exports, and how does it contribute to growth?

Mankind Pharma's approach to exports is focused on complex, niche products that are difficult to make. This strategy allows them to maintain profitability and sustainability, and they expect double-digit growth from exports moving forward, though they emphasize a mature and cautious approach.

What was the impact of the acquisition of Bhat Serums and Vaccines on Mankind Pharma's outlook?

While it is still early to predict the full impact, Mankind Pharma believes that acquiring Bhat Serums and Vaccines will provide high-entry barrier products and add significant value to the company. The acquisition is expected to contribute to topline growth and improved bottom-line performance.

What growth rate does Mankind Pharma expect for its chronic therapy segment?

Mankind Pharma aims to increase its chronic therapy segment, which has already shown significant growth, from 28% to potentially 40-50% of its overall business in the long term.

How has Mankind Pharma performed in the chronic therapy market compared to the industry?

Mankind Pharma has outperformed the chronic therapy market. For example, their chronic therapy growth was 1.3 times that of the overall market, and 1.6 times the performance of cardiac treatments within the industry.

What are Mankind Pharma's expectations for their export business in the second half of FY24?

Mankind Pharma expects to maintain a double-digit growth rate for its export business in the second half of FY24. They continue to focus on complex products that offer long-term sustainability and profitability.

What new products is Mankind Pharma focusing on in the consumer healthcare business?

Mankind Pharma is focusing on launching products like a fertility test kit, which helps couples determine the optimal days to conceive, and another product that has gained traction since its launch. They are also working to increase their distribution reach, especially in the southern regions of India.

How has Mankind Pharma increased its presence in the southern part of India?

Mankind Pharma has been focusing on expanding its presence in the southern part of India, where they had previously been weaker. They are working to increase their reach and share in this region through targeted efforts.

What is Mankind Pharma's long-term goal for the chronic therapy market?

Mankind Pharma's long-term goal for the chronic therapy market is to further increase its share to 40-50%, driven by their focus on the segment's growth, which has been highly profitable and consistent.