Ascent Meditech, the consumer health product company, is planning to triple its revenues in next 3 years to Rs 500 crore.
The company, which had raised private equity (PE) money last year from LeapFrog Investments, is setting up a greenfield facility in South Gujarat at an invetment of around Rs 100 crore.
Rajiv Mistry, founder and Managing Director of Ascent Meditech, said the company purchased 12 acres of land in South Gujarat to set up the new facility.
The upcoming facility to be completed in two phases, would be spread across 1 million square feet, and is built with an intention to be compliant with USFDA regulation. The new facility with a capacity to produce 100,000 units per day is expected to house the R&D and design studio as well.
Currently, Ascent has five manufacturing units scattered in Silvassa, spread over 2 lakh sq. ft., with an output of 40,000 units per day. The company expects to end FY20 with turnover of Rs 150 crore, with a compounded annual growth rate (CAGR) of 35 percent.
The company earns about 20 percent of its revenues from exports.
Mistry said the new facility is expected to provide employment to 3,000 people.
The company, which started in 1991 as maker of heat belts, now markets over 350 products under brand name Flamingo in segments such as orthopedic soft goods, healthcare, mobility and wound care.
Around 60 percent sales comes from orthopedic soft goods.
Mistry said he keeps away from contract manufacturing and white label products, as he wants to build one consumer health company.
The company get about 50 percent of its sales to through prescription (Rx), and rest through direct sale to customers. The company is targeting wellness and preventive care segments, focusing on e-commerce to generate more direct sales. The company reaches around 2 lakh retail points, across India.
Ascent early this year has appointed Bollywood actor Hrithik Roshan as the brand ambassador for its flagship brand Flamingo.
To attract millennials, the company has launched new range of lifestyle pain management products like Back Comfort Belt, Knee Caps, Thigh Support, Elbow Support and several other products in multiple colour variants.
"We are addressing a market which is valued at over Rs 7,000 crore. So, the potential is huge," Mistry said.
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