Expecting turnover of Rs 250 cr in FY17: NutraPlus

Bulk drugs and intermediates supplier, NutraPlus India has witnessed a huge rally of 488 percent in its stock this year.

The company produces high end multi-specialty active pharmaceutical ingredient (API) in therapeutic and analgesic segments.

Speaking to CNBC-TV18, Mukesh Naik, MD of Nutraplus said that Cadila, Wanbury, Sun Pharma and Alkem Labs are some of its major clients, with the first three contribute 20 percent to the company’s sales.Below is the transcript of Mukesh Naik’s interview with CNBC-TV18's Ekta Batra and Reema Tendulkar. Ekta: First I wanted to discuss who exactly your key clients are because we do understand that there is some capital expenditure (capex) which is coming up by the company which would focus primarily on a couple of marquee pharma companies, who are your clients, if you could throw some colour on that? A: Our main clients are Alkem Laboratories, Sun Pharma, Cadila Pharmaceuticals, Wanberry Limited these are all pharma companies. Reema: Could you tell us how many facilities you have and are you looking at any kind of an expansion? A: We have four facilities and at two facilities we have done an expansion. One already started and one is going to start from February 1. Reema: So, with the incremental capacity what will be the addition to your revenues, what can we expect in terms of FY16 revenues as well as FY17 revenues? A: FY16 there will not be much impact but FY17 we are expecting turnover of more than closer to Rs 250 crore. Ekta: Can you give us a sense in terms of Sun Pharma, Alkem Laboratories, Wanberry Limited and Cadila Pharmaceuticals. How much do they comprise of as a percent of your total sales right now? A: Around 20 percent is one particular product is as a sales of all the 3-4 intermediary plants. Ekta: One company is 20 percent or a combination of them? A: No, all three companies. Cadila Pharmaceuticals, Sun Pharma and Wanberry 20 percent of the turnover is that products. Reema: How will you be funding your capacity? You had an approval to raise up to Rs 100 crore in July. Have you exercised it or will you exercise it? A: Right now our bankers are Saraswat Bank and we have sanctioned loan from Saraswat Bank for out both the projects in Tarapur. Reema: So, no equity raising? A: Yes. Ekta: You spoke about Sun Pharma and Cadila Pharmaceuticals. But how much is Alkem Laboratories as a percent of your sales, how big a client are they for you and how much have you been supplying for them and which Active Pharmaceutical Ingredients (API) if I may ask? A: Alkem Laboratories turnover is nearly around Rs 10-15 crore for their product exclusively for Alkem Laboratories.