Viswanath Pilla Moneycontrol News
Hester Biosciences on Thursday said its board has given the nod to set up animal vaccine manufacturing unit in Tanzania at an investment of USD 3 million.
“The company's board has approved an investment of USD 3 million by way of equity in its wholly owned subsidiary company - Hester Biosciences Africa Ltd, Tanzania, with an objective to manufacture animal vaccines and health products in Tanzania, to cater to the whole African continent,” Hester said in a statement.
“The USD 3 million would be raised through internal accruals,” the company said. Hester said the project size has yet to be finalised.
The balance amount for the project would be raised through debt, it added.
Hester said it expects the investment will be completed by April 2020.
More than 80 percent of the required vaccines are imported in to Africa.
Hester said it sees a very big potential in Africa for animal vaccines. Besides the common diseases, there Africa specific diseases, which currently remain unaddressed, thereby causing economic losses to poultry and livestock farmers.
Hester currently exports animal vaccines and health products of Africa.
“Hester's distribution network in Africa not only aims at servicing the organised poultry and livestock farmers, but also the backyard farmers which constitute a big percentage of the animal population in Africa,” the company said.
Hester ended FY17 with revenues of Rs 123 crore, largely contributed by its poultry vaccine sales.
Shares of Hester rose 1.61 percent to close at Rs 915.85 on BSE, while the benchmark Sensex declined 0.19 percent to end at 31,213.36 points.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
