Nectar Lifesciences targets Rs 1300cr revenues in FY12

In an interview with CNBC-TV18, Dinesh Dua, CEO of Nectar Lifesciences said,"We are looking at about close to Rs 1,300 plus crore topline for the next year."

 

The company is planning to scale up its formulations business close to about Rs 250 crore in future. It is likely to secure orders worth Rs 100 crore.

 

Below is the verbatim transcript of Dua's interview with Reema Tendulkar and Ekta Batraof CNBC-TV18. Also watch the accompanying video.

 

Q: You have given a revenue target of around Rs 1,100 odd crore for FY11 what can you exactly extrapolate this to FY12 and FY13 and where exactly is this demand coming from?

 

A: We expect a usual growth of about 25% next year. This 25% growth year on year over the past five years is in the backdrop of a robust Indian growth of close to about 10%-13% depending on which segment are you in.

 

For the next year, we are looking at about close to Rs 1,300 crore plus top line. Major growth would come in from API, which is our core nuclear business and from the formulations business where we are concentrating very much objectively. The formulations business is currently contributing about Rs 150 crore. Going forward we will like to scale it up next year to close to about Rs 250 crore.

 

Q:Dua coming onto that point about API, we understand that you are in discussions with a few MNCs and you are likely to bag orders worth about Rs 100 odd crore, could you tell us when any of these orders might materialize?

 

A: It is a prolong business where the maturity of it has to be measured both by the vendor as well as by MNCs. We already have some wonderful relationship across 55 odd geographies. We are strongly in trench with at least 10 of them, which contributes close to about 15 to 20% of our business. We are reasonably confident that we will continue to mature this business where at least two or three large clients going forward to the next year as well.

 

Q: You actually spoke about formulations contributing quite significantly going forward does this growth actually and factor in the fact that you might actually be entering into developed markets?

 

A: Our journey is well and true. It is only in 2012 and 2013 that we would be in a position to get some revenues streaming in from the regulated markets. In the API segment, we are already there in Europe and will reach the US by 2012, 2013.

 

As far as formulation is concerned because of the current scenario in US, the waiting period is close to about two to three years. Our revenue stream is coming from formulations from regulated markets its slated to be first in 2012-2013, 2013-2014 or thereabouts.