Dr. Anwar Daud, Managing Director, ZIM Laboratories Limited

28 Nov 2022 , 09:54 AM

What are the core capabilities of your company and how does it help you do more business?

Our core capability is built on the foundation of a strong, experienced in-house R&D setup which provides various delivery solutions and innovative technology platforms that are comprehensive and cover product conceptualization, product development, clinical studies, dossiers, manufacturing and supplies.

How big is your R&D team? How many products do you have in the R&D Pipeline? How much investment have you done in ZIM Health Technologies Ltd (ZHTL -100% subsidiary)?

Around 115 people in the team. We have 7 new products developed in the R&D pipeline and another 9 under development expected to be ready in FY24.

What portion of your business is from Pharmaceutical and Nutraceutical products?

72% of our business was from pharmaceutical products and the balance 28% from Nutraceuticals; both grew in H1FY23.

Mathew Cyriac has a nearly 22% stake in the company, at what price did he acquire and from whom?

He acquired from the secondary market the stake of the erstwhile private equity
investor.

Are you doing any capex for growth? If yes, are you funding via internal accruals or borrowings?

Yes, for the new products we are undertaking capex which will be funded through internal generation and debt and the escrow shares at the right time. These shares have been held in lieu of old outstanding dues. In addition, we are putting up a new Nutraceutical manufacturing facility.

What portion of your sales is from exports? Are there any risks associated with it?

Over 80% of our business is in exports. Yes, on the normal business based on collection and adverse currency fluctuations

Will you be able to sustain revenue and margins going further as well?

We expect 20% top line growth and margin expansions leading to higher profit growths in the next 2 years.

At what rate did your Pre-Formulation Intermediaries (PFI) business grow in the last year? What proportions constitute the export of PFI of revenue?

PFI grew by 21% and contribute 57% in FY22 and 59% in H1FY23 of total operating income.

Share with us the dividend distribution policy of the company.

Profits have been re-invested into the company for its growth so far.

How does the company stand out versus its other listed peers?

Differentiated products with unique processes and product development platforms on which it can leverage to develop multiple therapy agnostic generic product range in oral solid dosage forms.

Where do you see the company 5 years from now?

We have provided guidance for the next 2 years which does not include business from the pipeline of new products developed in FY23 and to be developed in FY24. Should these products be registered and marketed well, growth will be further enhanced over the next 5 years.