homebusiness Newscompanies NewsPI Industries targets at least Rs 500 crore revenue from its new pharma business in FY24
PI Industries targets at least Rs 500 crore revenue from its new pharma business in FY24
PI Industries is targeting Rs 500-550 crore revenue from its newly started pharma business this financial year. The agri-to-pharma group, despite facing a 13 percent de-growth in the domestic business during the first quarter (Q1) of the current fiscal year, has also set a target of a double digit growth in revenue this year. Mayank Singhal, Vice Chairman and Managing Director of PI Industries, remains confident in the company's ability to rebound and meet its growth targets.
PI Industries Ltd, one of India's leading agriscience companies, has set an ambitious revenue target for its recently ventured pharmaceutical business. The company, which entered pharma segment this April through a couple of acquisitions in the contract development and manufacturing (CDM) and active pharmaceutical ingredients (API) space, is aiming to achieve a revenue of Rs 500-550 crore in the financial year 2023-24.
The company's wholly owned subsidiary PI Health Sciences Ltd acquired the US-based Therachem Research Medilab LLC in the beginning of this financial year. With this deal, valued at $52.5 million, PI Health got in possession of the US company's two wholly owned subsidiaries in India —TRM India and Solis Pharma Chem — along with the latter's other assets in the US.
PI Industry's diversification into pharma was part of its strategy to de-risk its overdependence on agriscience business. Its revenue target for pharma, though seems quite ambitious, is not that difficult too given the potential of the contract development and manufacturing as well as API businesses. The existing business of the acquired entities and its access to the high profile clients in the US, Europe and emerging markets will also help PI to achieve this goal, according to industry experts.
PI Industries group, despite a declined business growth in the April-June quarter, has also now set an ambitious growth target for the full year. It is aiming for a double-digit growth in the current financial year, starting from the second quarter itself.
Speaking to CNBC-TV18, Mayank Singhal, Vice Chairman and Managing Director of PI Industries, stated; “Going forward, I believe that we should be in a better situation in the second quarter, and I think the sales would come in line with our expectations. This fiscal year, we should definitely target a double-digit growth.”
PI Industries faced a 13 percent de-growth in the domestic business during the first quarter (Q1) of the current fiscal year.
However, Singhal's positive outlook is further supported by a strong order book in the company's exports business. He highlighted the presence of new products that are being commercialised, and the company's guidance for an average growth rate of 18 to 20 percent over the next two to three years.
In pursuit of expansion and diversification, PI Industries is still actively evaluating acquisition opportunities. Notably, the company is exploring prospects not only within the pharma sector but also across other business areas.
PI Industries, which raised close to Rs 2000 crore through a Qualified Institutional Placement (QIP) sometime ago, will utilise this fund for both capital expenditures and potential mergers and acquisitions (M&As).
The company on Wednesday reported a 46.2 percent year-on-year (YoY) jump in net profit at Rs 382.9 crore for the first quarter that ended June 30, 2023.
In the quarter under review, its total revenue stood at Rs 1,910.4 crore, up 23.8 percent against Rs 1,543 crore in the corresponding period of the previous financial year. CNBC-TV18 Polls had predicted a first quarter revenue of Rs 1,803 crore for PI Industries.
(Edited by : C H Unnikrishnan)
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