Chandrakant Laxminarayan Rathi, Promoter and Managing Director, Advanced Enzyme Technologies

"We are planning to raise Rs.60 crore through fresh issue and rest from Offer for Sale."

Jun 04, 2016 11:06 IST IIFL Yash Ved |

Chandrakant Laxminarayan Rathi, Promoter and Managing Director, Advanced Enzyme Technologies holds a Bachelor‘s degree in Science (Chemical Engineering) from National Institute of Technology, Rourkela. He has over 37 years of experience in the enzyme industry and was one of the co-founders of Rathi Papains Private Limited incorporated in the year 1978, which was engaged in the business of manufacturing of enzymes from papain. In the year 1986, he joined Messrs Super Organic Research Laboratories as a partner till the year 1987 (which came to be acquired by the Company at a later stage). Subsequently, he promoted and incorporated the Company in the year 1989 and is currently responsible for the management of the entire operations of the Company and its Indian subsidiaries, including strategic initiatives of our businesses.
 
Advanced Enzyme Technologies Limited is the largest Indian enzyme company, engaged in the research and development, manufacturing and marketing of 400+ proprietary products developed from 60 indigenous enzymes. It operate in two primary business verticals namely Healthcare & Nutrition (human and animal) and Bio-Processing (food and non-food). By following critical industry trends, we focus on ensuring that our enzyme products are relevant, helping customers to meet the evolving market demands. We are a fully integrated enzyme manufacturing company driven by extensive focus on research and development (―R&D) of various enzymes, enzyme blends, enzyme products and customized enzyme solutions. It also supplies these value-added and eco-safe enzyme products to diverse end-user industries like human healthcare and nutrition, animal nutrition, food processing, baking, dairy and cheese processing, fruit and vegetable processing, cereal extraction, brewing, grain processing, protein processing, oil and fat processing, biomass processing, textile processing, leather processing, paper & pulp processing, bio-fuels, bio-catalysis etc.
 
Speaking with Yash Ved of IIFL, Chandrakant Laxminarayan Rathi says, "We are planning to raise Rs.60 crore through fresh issue and rest from Offer for Sale."
 
What are your IPO plans? How much are you raising via IPO?
We are planning to raise Rs.60 crore through fresh issue and rest from Offer for Sale.
 
Brief us about your manufacturing facilities?
We currently have six geographically-spread and accredited manufacturing facilities.
Four of these are located in India which consist of two integrated fermentation, recovery & formulation facilities at Sinnar (Nashik, Maharashtra, India) and Pithampur (Dhar, Madhya Pradesh, India), one extraction and recovery facility at Satpur (Nashik, Maharashtra, India), and one blending, mixing and formulation facility at Vashind (Thane, Maharashtra, India). Two blending, mixing and formulation facilities are located outside of India at Chino (California, United States).
 
The company also has four R&D facilities, of which two are located at Thane, and one each at Sinnar and Chino, California.
 
Going forward, what will be your focus area?
Although, we have the capability to manufacture enzymes using all the four natural origins viz. plant, animal, bacterial and fungal, our major focus is on developing enzymes through microbial fermentation.
 
Brief us about your business in different segments?
Our major thrust is Human Healthcare and Nutrition and Animal Nutrition.We provide our proprietary enzyme products and customized enzyme solutions to various pharmaceutical and nutraceutical companies in India, North America, Asia (ex-India), Europe and other countries globally.
 
We provide enzyme based feed additives for the animal nutrition industry, mainly catering to poultry and swine. Enzymes are a well-proven and successful tool that allows feed producers to extend the range of raw materials used in feed, and also to improve the efficiency of existing formulations. Our product offering enables animals to maximize the nutrients they absorb from the feed, thus helping in reducing feed costs, minimizing animal waste production and accordingly helping to reduce environmental pollution.
 
What is your revenue mix?
About 65% of our revenue comes from US and 35% from India.US is an important focus market for us which contributes to a major portion of our international revenues.
 
Any plans for the international market?
We primarily operate in the Healthcare and Nutrition vertical in US, and are engaged in providing proprietary and customized enzyme blends, mainly to the nutraceutical industry. Further, we also actively cater to the animal nutrition, food processing and non-food processing verticals in the US market. In the year 2012, we have also launched our own branded enzyme supplements in the US, offering healthcare professionals and consumers a natural therapeutic alternative for preventive care and health, 0using high quality systemic and digestive enzyme supplements.
 
Who are your investors?
Kotak Private Equity had invested Rs. 30 crore in the firm in mid 2012 and is offloading around half of it.
 
Anything you would like to add?
We have strong R&D, enzyme development and manufacturing capabilities and specialized business model with high entry barriers. We also have diversified product portfolio and wide customer base, served by a strong sales, marketing and distribution network with financial stability and stable cash flows.
 
What is your vision?
Our vision at Advanced Enzymes is to become the largest, enzyme-based, value provider to consumers and processors globally!

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