• Hester is amongst India’s leading animal healthcare companies and the second largest poultry vaccine manufacturer.
  • Headquartered in Ahmedabad, Gujarat, Hester has a state-of-the-art manufacturing facility for vaccines, health products and diagnostics. The Company’s products, registered with various countries and international agencies, have received wide acceptance and is marketed across India and a few African and Asian countries. The Company has a total manufacturing capacity of 4.8 billion doses of vaccines.
  • Hester, with its strong team of research scientists, equipment infrastructure and biological know-how, has the required expertise to develop stable biological products that are safe, effective and which meet regulatory requirements. The R&D activities are funded through Hesters’ own cash flow. The Company has a focus on developing new generation vaccines and animal health products that have higher efficacy and which cater to the evolving needs.
  • The Company has a wide portfolio of 49 vaccines and 50 health products addressing preventive, curative and growth needs of poultry and large animals. It also provides services such as seromonitoring for poultry farms and mastitis prevention programs for cattle farms.
  • Turnover has increased, driven by increased market penetration and award of tender businesses in the large animal segment in domestic market. Besides, rationalisation, better planning and addition of capacities led to growth in volumes.
  • Operating performance have improved, driven by focused strategy to enhance proportion of higher value-added products, rationalise product-mix and improve operational efficiencies. Better inventory management and stricter credit control further enabled in reducing cost of operations.
  • Debt:Equity ratio has declined, driven by increasing cash flows from operations over the years. Cash inflows have been effectively utilised to service debt, while the surplus reinvested.
  • Domestic sales grew 9.31% whereas exports dipped by 11.99%. This dip in exports was due to external and internal issues. Externally, the tendering for PPR vaccine from FAO was much slower. Also, the regulatory approvals for our new plant at Kathmandu, Nepal got delayed due to circumstances beyond our control. Internally, at Hester India, we faced capacity constraints for poultry vaccines during peak demand.
  • In summary, this has been a year of mixed financial performances. Though we did not report the kind of topline growth that we had anticipated, yet we delivered a strong bottom-line relative to the sales. We lived up to our mandate towards improving the bottom-line. Our confidence assures us of a good growth in the topline as well as in the bottom line in the current financial year.
  • Worldwide economic forecasts clearly indicate that Africa is the next continent for economic boom. Our own market survey has brought to light that animal farming activities, either organised or backyard farming, are poised to grow exponentially. This would have a direct positive impact on the demand for animal health products in Africa. To exploit these opportunities, Hester has decided to put resources in to Africa towards distribution as well as towards manufacturing.
  • Hester has formed a wholly owned subsidiary in Tanzania in the name of Hester Biosciences Africa Limited, to set up an animal vaccine manufacturing unit in Tanzania. This project would manufacture vaccines against most of the African-specific animal diseases, thereby addressing the unaddressed market in the continent. The project size is USD 18 million, will be an export-oriented unit to address the animal vaccine demand of the continent. The plant capacity would be to manufacture 1.50 billion doses of animal vaccines to reach revenues of USD 30 million at full capacity. The project is part funded by the Bill & Melinda Gates Foundation and is expected to roll out the first commercial batch in early 2021.
  • Large Animal vaccines market is forecasted to grow in geometric progression considering that there are immunisation as well as eradication programs embarked on by state governments as well as by the central government for Brucella and PPR diseases, respectively. Large Animal health products have a huge market. We estimate that this division would be the fastest growing division in the next two financial years. A large range of products have been planned to be launched in the next two years, which would substantially contribute to the topline.
  • Till three years ago, Hester had all its revenue derived from domestic sales. The immediate focus is to grow international business and make exports as a 50% contributor to the sales by 2020.
  • The company offers a total 15 live vaccines, 30 inactivated vaccines and 16 health products for poultry. The segment accounts for 84.33% of total revenues.
  • The company offers a total three live vaccines and 35 health products for the large animals. The segment accounts for 13.20% of total revenues.
  • The lesser than forecasted growth was mainly due to capacity constraints. The new created capacity is now functional to address the normal demand for poultry vaccines.
  • Exports sales were far below forecasts. Product registrations, which were expected in various countries did not come through. Besides, a lot of resources had to be used up in rationalising the distribution network.

 

 

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