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NGL Fine-Chem Annual Report 2023 Summary

1. NGL Fine-Chem Limited is a leading animal healthcare company and a top manufacturer and exporter of human and veterinary Active Pharmaceutical Ingredients (APIs), advanced intermediates and finished dosage forms.

2. NGL has established itself as a market leader with a market share of 15% to 50% or more in major product lines.

3. The current year faced challenges following the Covid pandemic, resulting in a 61.61% decrease in turnover. Lower demand was influenced by destocking after Covid, recessionary trends, and foreign exchange shortages in global economies. Despite these issues, the company expanded its product portfolio from 22 to 28 products.

4. In terms of financial performance, in FY 2022-23, the company's total revenue decreased by 13.7% compared to the previous year, with total sales revenue at ₹275.06 Crores. EBITDA was ₹35.70 Crore, while PAT stood at ₹20.12 Crore. The R&D cost expanded by ₹0.17 Crore, and the EPS decreased by 61.5%, reaching ₹32.56 per equity share. Rs. 212.11 Crores Total Revenue from Exports Business

5. Highlights of FY 2022-23

- In Top 5 Products with 50%+ Market Share; Growing Strong in Next 4 Products

- 51 Countries Penetrated, Supported by Country-wise Regulatory Approvals and Strong presence in Unregulated Markets

- Suppliers to 5 of top 10 global animal healthcare companies

6. NGL’s three modern production facilities in Maharashtra (two in Tarapur and the third in Navi Mumbai) conform rigorously to all regulatory requirements and are equipped with cutting-edge technology. This enables NGL to manufacture a diverse range of products and cater to the varied needs of its global customer base.

7. In their greenfield expansion efforts, NGL is increasing capacity by 50% to accommodate upcoming product demands. The estimated capital expenditure for this expansion is ₹140 Crores, which will be financed through a combination of debt and internal accruals. Civil construction is currently underway, with the facility expected to become operational in FY 2024-25.

8. In the brownfield expansion, NGL has invested ₹26 Crores in their subsidiary, Macrotech, and introduced additional capacities for intermediates. Commercial production has already commenced in this expansion project.

9. In 2022 the company has initiated CEP filings for Triclabendazole, Flunixin Meglumine and Marbofloxacin with EDQM Converted Macrotech ETP to Zero Liquid Discharge .

10. Moving forward, the company is determined to position itself as a prominent global player in the animal healthcare APIs market by strategically expanding our product offerings and reaching new territories in terms of client base and geographical presence.

11. They aim to expand their product offerings and reach new clients and regions despite current subdued market demand. They attribute this decreased demand to existing inventory saturation and a lack of market demand.

12. In the EU market, NGL caters to the top ten global pharmaceutical companies in animal healthcare and is focused on capturing market demand previously sourced from competitors. They have transformed their product mix significantly to achieve this goal.

13. The global animal healthcare market is projected to grow, driven by factors like demographic changes, zoonotic diseases, and the expansion of pharmacy channels. NGL aims to capitalize on this growth by increasing R&D efforts and expanding their product pipeline.

14. The company has a robust portfolio of 26 animal healthcare APIs and plan to launch three to four new products annually, leveraging their production capabilities and expanding capacity.

15. Sustainability is a core aspect of their approach, with a focus on green energy, water conservation, and waste recycling. The company is upgrading its facilities to achieve zero discharge and are committed to adapting to industry changes for long-term growth.

16. Recognizing key macro trends in the global and Indian Animal Healthcare market, the Company strategically navigates these trends to chart a path towards continued expansion and success.

17. The animal healthcare market is growing due to rising zoonotic diseases, increased pet ownership, and innovation in healthcare. Affordable pet food prices and technological advancements are also fueling this growth.

18. Increasing Capacity to Meet Higher Demand

- Completed Macrotech expansion during the year, with approvals in place and validation batches initiated at the facility

- Added capacities through brownfield expansion at Tarapur

19. Strong Pipeline to Tap Opportunities

- De-bottlenecking and process enhancement across the value chain to achieve better capacities

- Outsourcing 15% of manufacturing to meet the growing demand

20. Greenfield Expansion at Tarapur

- Increase capacity by 50% to satisfy demand for additional projects in the pipeline

- Expected investment of Rs. 140 Crores to be financed by debt, with Rs. 7 Crores in Capex from internal accruals so far .



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