Shuchi Nahar's Weekend Blog!

Recent disruption in China - Impact on Indian Chemical Companies Twitter Handle: @shuchi_nahar Specialty Chemical Article: https://myweekendspot.blogspot.com/2021/07/speciality-chemicals-market-size-demand.html Government scheme to boost: https://myweekendspot.blogspot.com/2021/07/government-initiatives-to-boost-growth.html Indian specialty chemicals companies are poised to ride tailwinds from macro drivers including ‘China+1’, import-substitution, growing costs within China (capital, operational, compliances), and currency benefits.  Recent disruptions in China will cause medium-term challenges for downstream producers while benefiting base chemical suppliers. More importantly, these frequent supply disruptions in China further strengthen the case for quality Indian players in the chemical domain. Growing import substitution by local industry makes a case for strengthening volume growth for base chemical/intermediate suppliers.  Recent disruptions in China (electricity s...

Granules India Ltd. - Huge Scope of Growth Ahead Twitter Handle: @shuchi_nahar Company Overview Founded in 1991, Granules India Limited is a large-scale vertically integrated Company manufacturing Active Pharmaceutical Ingredient (API), Pharmaceutical Formulation Intermediate (PFI) and Finished Dosage (FD). The Company over the years has created a strong presence in ‘the first line of defence’ products such as Paracetamol, Ibuprofen, Metformin, Methocarbamol, and Guaifenesin. Till date, Granules has filed 45 ANDAs, received approval for 29 products (12 in FY20) and launched five in the US. EBITDA margins have seen improving from better product mix, operating efficiencies and higher capacity utilisations. Also, the margins are expected to further expand with the launch of own label products in the US, a new facility commenced at Vizag and using its own Metformin with new capacity commissioned. In FY20 it received approval for 12 ANDAs. It has a further 16 ANDAs (45 cumulative fi...

Neuland Laboratories Limited -  Company Overview  Shuchi.P.Nahar -  @shuchi_nahar Neuland is a leading manufacturer of active pharmaceutical ingredients (APIs) and an end-to-end solution provider for the pharmaceutical industry’s chemistry needs. The Company operates in the market using two main business models - Generic Drug Substances (GDS) where they cater to the needs of the Generic players and Custom Manufacturing Solutions (CMS) where they primarily work with innovators by helping them bring critical products to the market. CDMO is the emerging growth segment of the company with 13 to 17 Molecules in development phase. 1.      Business Performance Neuland lab (NLL) has posted revenue of INR 2,054mn with 13.5% YoY increase, which was 4% below. The revenue growth was mainly driven by the CMS segment, led by 32 molecules (Development + Commercialize) with speciality API segment, which grew by 33.2% in Q1FY21. EBITDA margin expanded by 622bps to...