Amanta Healthcare – A High Margin Sterile Injectables Player

1 Sep 2025 , 02:43 PM

Amanta Healthcare is a Gujarat based leading manufacturer of sterile liquid pharma products. Its LVP and SVP range of products are well recognised. Also, it differentiates with its Steriport branded LVP products that attract higher margin. Its manufacturing capacity spans 330 m units of BFS and ISBM lines.

Its IPO of INR 1,260 million is aimed at increasing the capacity of its SVP and SteriPort lines to meet future demand. The IPO is entirely a fresh issue of shares.

Offer Details of the IPO

Total Size of the Offer: Up to 10,000,000 Equity Shares aggregating up to INR 1,260 million. The offer consists of a fresh issue and does not include an offer for sale.

Price Band: INR 120 to INR 126 per Equity Share

BRLMs

• The Book Running Lead Manager (BRLM) for the issue is Beeline Capital Limited.

Objectives of the IPO
The Company aims to utilize the Net Proceeds from the Issue towards the following objectives:

• Funding capital expenditure a new SteriPort manufacturing line: INR 700 m
• Funding capital expenditure for a new Small‑Volume Parenteral (SVP) manufacturing line: INR 301.3 m

Indian Pharmaceutical Industry – Overview

The Indian pharmaceutical industry is a significant sector that plays a crucial role in the country’s economy and healthcare system. The industry is involved in the development, production, and distribution of pharmaceutical products, including medicines, vaccines, and other healthcare-related products. The end customers of the industry include hospitals, clinics, pharmacies, and individual patients. The industry offers a wide range of products and services, including generic medicines, branded medicines, over-the-counter (OTC) products, and vaccines.

The Indian pharmaceutical industry can be broadly segmented into several key areas:

Formulation Segment

The formulation segment is the largest segment within the Indian pharmaceutical industry. This segment involves the development and production of finished pharmaceutical products, including tablets, capsules, injectables, and ointments. The formulation segment is further divided into two sub-segments: generic formulations and branded formulations. Generic formulations are copies of branded medicines that are no longer protected by patents, while branded formulations are proprietary medicines developed and marketed by pharmaceutical companies.

API Segment

The API (Active Pharmaceutical Ingredient) segment involves the production of raw materials used in the manufacture of pharmaceutical products. API manufacturers supply their products to formulation manufacturers, who use them to produce finished pharmaceutical products. The API segment is a critical component of the pharmaceutical industry, as it provides the raw materials necessary for the production of medicines.

Vaccine Segment

The vaccine segment is a growing area within the Indian pharmaceutical industry. This segment involves the development and production of vaccines, which are used to prevent and treat diseases. The vaccine segment is further divided into two sub-segments: human vaccines and animal vaccines. Human vaccines are used to prevent and treat diseases in humans, while animal vaccines are used to prevent and treat diseases in animals.

Contract Research and Manufacturing Segment

The contract research and manufacturing (CRAM) segment involves the provision of research and manufacturing services to pharmaceutical companies. CRAM companies provide a range of services, including clinical research, formulation development, and manufacturing of pharmaceutical products. This segment is growing rapidly, as pharmaceutical companies increasingly outsource their research and manufacturing activities to specialized service providers.

Industry Size and Growth Trends

The Indian pharmaceutical industry has witnessed significant growth over the years, driven by various factors such as increasing demand for healthcare services, growing population, and rising income levels.

The industry can be broadly categorized into two segments: chronic and acute. The chronic segment, which includes therapies such as anti-diabetic, cardiovascular, and oncology, is expected to register higher growth at a CAGR of 8.5-9.5% from fiscal 2024 to fiscal 2029. The acute segment, which includes therapies such as anti-infectives, gastro-intestinal, and pain and analgesics, is expected to grow at a CAGR of 7.0-8.0% during the same period. IV-fluid market, on the other hand, is expected to grow at 9-11% with a reported size of INR 45-47 billion.

Key Drivers of Growth

Several factors are driving growth in the Indian pharmaceutical industry:

• Increasing Demand for Healthcare Services: The growing population and rising income levels in India are leading to an increase in demand for healthcare services, which in turn is driving growth in the pharmaceutical industry.
• Growing Prevalence of Chronic Diseases: The prevalence of chronic diseases such as diabetes, cardiovascular diseases, and cancer is increasing in India, leading to a growing demand for chronic therapies.
• Government Initiatives: The government’s initiatives to improve healthcare infrastructure and increase access to healthcare services are also driving growth in the industry.
• Increasing Investment in Research and Development: Pharmaceutical companies are increasing their investment in research and development, leading to the development of new and innovative products, which is driving growth in the industry.

Company Overview: Amanta Healthcare Limited

Amanta Healthcare Limited, formerly known as Marck Parenterals (India) Limited, was incorporated on December 21, 1994, as a public limited company under the Companies Act, 1956. The company was founded by Bhavesh Patel, who is the current Chairman and Managing Director. The company’s name was changed to Amanta Healthcare Limited in 2014.

Bhavesh Patel, the founder and Chairman of Amanta Healthcare Limited, has over 30 years of experience in the pharmaceutical industry. He is a qualified mechanical engineer and has a master’s degree in management from B.K. School of Management, University of Gujarat.

Segments and Products

Amanta Healthcare Limited operates in the pharmaceutical industry, specifically in the manufacturing and marketing of sterile injectables, including large volume parenterals (LVPs) and small volume parenterals (SVPs). The company’s product portfolio includes:

• Large Volume Parenterals (LVPs): The company manufactures LVPs, which are used for the treatment of various medical conditions, including dehydration, electrolyte imbalance, and nutritional deficiencies.
• Small Volume Parenterals (SVPs): The company also manufactures SVPs, which are used for the treatment of various medical conditions, including pain management, anesthesia, and emergency care.

It derives a majority of its revenue from its LVP portfolio. While a larger part of its stated volume (by bottles) is devoted to SVPs, the significantly higher price of LVPs results in a much higher revenue share ~80%).

Services

Amanta Healthcare Limited also provides contract manufacturing services to other pharmaceutical companies, where it manufactures products on behalf of the client company. These account for a small portion of its revenue (less than 3%).

Exports

A predominant share of the company’s revenues is from domestic business. Over the past 3 years, exports accounted for ~30% of the business while domestic sales accounted for ~70%. The company exports its products to various countries, including the United States, Europe, Africa, and Asia.

Competitive Differentiators

Amanta operates in a competitive industry with both international as well as domestic players. Its LVP product portfolio is a key differentiator as it enjoys higher margins. On the other hand, any extension of DGCO price caps are a risk.

 

Table: Amanta vs Competitors – Core Differentiators

Segment	Amanta’s Position	Main Competitors	Competitive Edge / Vulnerability
Large‑Volume Parenterals (LVP) – > 100 ml, premium IV fluids (electrolytes, nutrition, specialty solutions)	Core profit driver – 79 % of product revenue despite only ~21 % of installed capacity. Brand SteriPort (two‑port, self‑collapsing) commands a price premium and is largely outside DPCO price caps. Export‑oriented (US/EU) adds margin.	Fresenius Kabi (Ecoflac plus), Otsuka (Aqua Pulse), Shree Krishnakeshav (Freeflex), B. Braun (Ecoflac plus)	Strength: high ASP (≈ ₹ 4,090 / bottle) vs SVP (≈ ₹ 265). Risk: price‑cap exposure if regulators broaden DPCO to LVP; dependence on a few high‑margin SKUs.
Small‑Volume Parenterals (SVP) – ≤ 100 ml, diluents, ophthalmic drops, respules	Volume engine – 79 % of bottles produced, 21 % of revenue. Products are largely price‑capped under DPCO, yielding a low ASP.	Aculife (large SVP portfolio), Denis Chem (glass‑bottle IVF), Otsuka (standard IVF), Shree Krishnakeshav (glass IVF)	Strength: high utilisation (≈ 99 %). Weakness: thin margins, intense price competition, limited pricing freedom.
Contract‑Manufacturing Services (CM)	Ancillary – ₹ 517 lakhs (≈ 2 % of total contract‑customer revenue). Cost‑plus pricing, low utilisation of capacity.	Denis Chem (offers CM), Axa Parenterals (CM), B. Braun (CM for niche products)	Low‑margin by design; not a strategic profit centre but useful for capacity smoothing and relationship building.
Geographic Reach	Domestic 67 %, Export 33 % (FY 2025). Export markets are mainly regulated (US/EU) where pricing is market‑driven.	Fresenius Kabi (global footprint), Otsuka (strong export), B. Braun (global), Denis Chem (regional export)	Opportunity: expand export of premium LVPs; Threat: foreign‑exchange volatility and regulatory compliance costs.

Source: RHP

Table: Amanta vs Competitors – Strategic Levers

Lever	How Amanta Uses It	Peer Benchmark / Risk
Technology (BFS / ISBM)	Blow‑Fill‑Seal lines (large‑volume) and Injection‑Stretch‑Blow‑Moulding (small‑volume) give high throughput and low contamination risk.	Similar tech used by Fresenius Kabi and B. Braun; however, Amanta’s older LVP lines (Line‑I & II) run at ~91 % utilisation – a modest headroom for margin improvement.
Brand Differentiation (SteriPort)	Two‑port, self‑collapsing IV bags – a niche that commands a premium and is not price‑capped.	Competitors have comparable premium lines (Ecoflac plus, Freeflex) but none with the exact SteriPort design; brand loyalty can be a moat.
Export Incentives	Export incentives (₹ 516 lakhs FY 2025) are booked as “Other operating revenue” and boost the export contribution.	Multinationals enjoy larger scale economies; Amanta’s export share is already sizable for a domestic player.
Capacity Expansion (SVP)	Net‑proceeds of ₹ 3,013 lakhs earmarked for new SVP lines to capture volume growth.	Competitors (Aculife, Denis) are also expanding SVP capacity; the race is on cost‑efficiency rather than price.
Leverage Management	Gearing of 3 × is the highest among peers; debt servicing eats into PAT.	Most peers have gearing < 1 ×; lower financing costs translate into higher PAT% and ROE.
Regulatory Pricing (DPCO)	SVP products fall under the Drug Price Control Order, limiting upside. LVPs are largely exempt.	If regulators extend DPCO to LVPs, Amanta’s margin premium could erode dramatically.
Supply‑Chain Resilience	Raw‑material cost volatility is a key risk .	Larger players can negotiate better raw‑material terms; Amanta’s high gearing may limit its bargaining power.

Source: RHP

 

Financial Overview:

Revenue Growth: Revenue rose ~ 8.2 % in FY24. The gain was driven by higher sales of IV‑fluid products (both large‑volume and small‑volume parenterals) and a modest uplift in “other operating revenue” (scrap sales, export incentives). In FY 2025, revenue slipped ~ 2.0 % to INR 27,470 lakhs. A modest decline in “ sale of services” and its core business led to this dip.

PAT growth: Its PAT witnessed a significant growth in the past few years. The key reasons were largely non-operational. Debt restructuring and a tax writeback led to the sharp recovery in its PAT.

Valuations: Its valuations are at a premium to listed competitor – Denis Chem Lab

Table: Amanta vs Competitors – Valuation

Name of the company	Total Income (INR m)	P/E	CMP	Diluted EPS	RoNW (%)
Amanta Healthcare Limited	2760.93	33.9	126	3.71	10.89
Denis Chem Lab Limited*	1756.74	15.92	92.65	5.82	9.49

Source: RHP