We have healthy margins right now: Anu's Laboratories

An IPO in the pharma space, Anu's Laboratories, a manufacturer of basic and advanced intermediates of APIs, opened today with a price band of Rs 200-210. They plan to raise about Rs 80 crore.

K Haribabu, MD of Anu's Laboratories said, the company was focused more on the manufacturing side in the CRAM space. He said going forward the company hoped to maintain margins, which he said were healthy right now.

He said the company was looking at growth opportunities available to the industry in the supply of intermediates, as well as by way of contract manufacturing operations. He added that the company was planning to invest in a Greenfield project in the Pharma City being developed by Ramky at Visakhapatnam where we will be able to take up this contract manufacturing activities and conversion of our own intermediates into APIs.

Excerpts from CNBC-TV18’s exclusive interview with Hari Babu:
 
Q: First you can just outline the various businesses you are into and the purpose behind raising these funds?
 
A: We are manufacturers of basic and advanced intermediates of APIs. We have a range of products, about half of that we manufacture on regular basis and other on campaign basis. We command a dominant position in each of the products that we manufacture on regular basis, we command a. We are also engaged in manufacturing some intermediates for some of our customers on an exclusive basis. We also develop some new chemical entities for some of our customers.

Looking forward at the growth opportunities that are available to the industry, in the supply of intermediates as well as by way of contract manufacturing operations. We are planning to invest in a Greenfield project in the Pharma City being developed by Ramky at Visakhapatnam where we will be able to take up this contract manufacturing activities and conversion of our own intermediates into APIs for some of our customers.
 
Q: Your CRAMs pilot plant has been priced at about Rs 8.34 crore. What is your arrangement with Teva and what kind of business are you expecting from CRAMs?
 
A: It’s not just Teva. For Teva, we are doing a couple of compounds right now. We are looking at the opportunities basically and not at specific contracts at this point. It is because we can speak to the customers more specifically when the facilities are ready and when we are in a position to have them certified by the regulatory agencies.
 
Q: In the CRAM space, will you focus more on the research side going forward or are you focusing on manufacturing?
 
A: We will be focusing more on manufacturing, which is our forte.
 
Q: So you expect no significant uptick in your margins?
 
A: We hope to maintain. We have healthy margins right now.