Pravin Herlekar, CMD, Omkar Speciality Chemicals Ltd is a Bachelor of Technology in Chemical Engineering from Indian Institute of Technology (IIT), and is a post graduate in Management studies from Mumbai University. He has an overall experience of 38 years in the field of Product Development, Marketing and Administration.
Omkar Speciality Chemicals Limited (OSCL) is mainly engaged in the manufacture and sale of Speciality Chemicals and Intermediates for Chemical and Allied Industries. The Company took over the business of Omkar Chemicals, a proprietary concern (proprietor Pravin Herlekar) in June, 2005 which was formed in the year 1983 with capacity of 6 MT per annum for manufacture of molybdenum derivatives. The Company is primarily involved in the production of Speciality Chemicals and Pharma Intermediates OSCL exports its diversified product range various countries in Europe, Asia, North America, South America and Australia and is purely focus on expanding its customer base by catering to the requirements of customers from various industry segments.
Replying to Yash Ved of IIFL, Pravin Herlekar says, “Our company proposes to launch about 5-6 new molecules during FY12-13.”
Brief us about your expansion plans for FY13?
Our company proposes to set up facility at Lote Parshuram MIDC, Chiplun by investing approx. Rs. 1bn in a span of next two years. This plant will manufacture specialty intermediates for pharmaceuticals. Additionally, our company’s expansion programmes at MIDC Badlapur will continue as per the schedules given in the RHP of the IPO.
Our company has recently acquired Lasa Laboratory Private Limited, an API manufacturing company at MIDC Mahad, Raigad District. It is an ongoing business taken over by OSCL, and this unit would be producing APIs.
What is your outlook on the Pharma industry?
Pharma industry in India is growing at a reasonable pace. This is on account of population growth and the changing life styles of people. The drug for applications on anti-diabetic, anti-cholestrol, anti-hypertension, anti-asthematic, etc., has been constantly in demand. Moreover, a number of drugs are getting off-patented in the near future, and the Indian pharmaceutical industry is expected to cash on this business.
How many products are you planning to launch for FY12-13?
Our company proposes to launch about 5-6 new molecules during FY12-13. The API products will have specialized applications in pharmaceutical industry, and the same would be exported.
Brief us about the acquisition of LASA Laboratory?
We have recently forayed into pharmaceutical business with our recent acquisition of LASA Laboratory Private Limited, which is an established player in the anthelmintic / veterinary API segment with state-of-the-art API manufacturing facility.
There is a colossal demand in the API manufacturing space, and with Indian drug manufacturing sector gaining international prominence, the acquisition of LASA Laboratory was the right move for our group to venture into the pharma business. It is also a part of our group's forward integration strategy.
The acquisition will enable us to focus on manufacturing Anthelmintics, such as Albendazole EP, Albendazole IP/USP, Cyromazine, Fenbendazole BP VET/ EP, Nitroxynil BP Vet, Ricobendazole, Toldimphos Sodium and Triclabenda. The deal size is stood at Rs. 60mn.
What are your R&D plans?
Our research & development is the backbone of the company. The company has basic research capabilities and has recently acquired M/S.Rishichem Research Limited at MIDC, Badlapur, a wholly owned subsidiary, which is expected to provide a total R&D back-up to the company for all its future expansion and diversification programmes.
Comment on your capex plans?
Our capex plans stands between Rs 850-Rs 900mn for FY12-13.
In which countries do you export your products?
We export our products to various countries, such as the Middle East, Canada, Iran and Australia.
Brief us about your financials?
Our company reported a robust growth in revenues and profit after tax (PAT) for the quarter ended December 31 2011. Our company saw an increase in the net sales by an impressive 80.08% from Rs. 245.1mn to Rs. 441.4mn during the same period for the third quarter. The profit after tax (PAT) for the quarter ended December 31 2011 stood at Rs. 40.3mn resulting into an increase of 90.25% as against Rs. 21.1mn in the corresponding period of the last fiscal year.
What is your revenue mix?
Our company’s revenue mix comes from a variety of segments such as pharmaceuticals, glass & ceramics, poultry & veterinary feeds, electroplating & metal finishing and water treatment, to name a few.