Bliss GVS Pharma Ltd. (BLISS) is the largest manufacturer of suppositories in the world, with presence in more than 29 African countries (expect South Africa & Botswana). It is also engaged in manufacture of pessaries and female contraceptives. It is the largest branded player in Africa with revenues of INR 270 crs and over 400 brands registered. The company operates four manufacturing units in Palghar besides one injectable and one ointment manufacturing facility under its subsidiary Bliss Indasi Life Sciences and Kremoint Pharma Pvt. Ltd. respectively. The Indian branded business forms small portion of its portfolio with INR 30 crs of revenues supported by ~100 MRs.
Why we met the company • BLISS has been consistently making EBITDA margins of ~30% over the last 5 years. What is driving such margins for the company? • The company has reported a growth CAGR 17% over FY11-15, what is the future outlook for the company? Key Management Takeaways Business Highlights • Suppositories contribute 20% of its revenues, where as anti-malaria is contributes the 40% to the topline where its largest brand is “Lonart” • BLISS received the EU GMP approval recently, which will help it target European markets • Is engaged in contract manufacturing of Suppositories for a large number of pharma players, including Sun Pharma, Intas Pharma, Cipla etc. the company has recently received an order from Boehringer Ingelheim as well for a product that was earlier being manufactured by Cadila. • Cadila’s packaging is in the aluminium form, which requires refrigeration, while Bliss products have PVC packaging. • Cadila is the only other player manufacturing suppositories in India and has only 1-2 products like paracetemol. • Given the fact that there are no artensunate suppositories available currently, the product has substantial potential once Bliss receives WHO approval Moat • Suppositories are a high entry barrier segment due to technological complexity, and high investment cost to set up the plant. Cost for setting up 1 line in the plan is 1.8 mn euro. Capex • The company is also adding a capacity to manufacture 2 billion tablets a year, for which it has spent INR 20 crs of capex and is anticipating INR 50 crs additional capex requirement over the next 1-2 yrs Receivable days • BLISS routes its products for the Francophone market through Paris, after which it has national level distributors appointed. The company also uses the sea route to transport its products to Ghana, Nigeria, Kenya etc. With 45-60 days in transit and delays on both ends, the company operates on a debtor cycle of 180 days. It is currently taking measures to reduce it to 120 days -- Kindly email stock reports at STOCKRESEARCHER@googlegroups.com For sharing knowledge -- NIFTYVIEWS.COM NOW A FREE OPEN SOURCE WEBSITE. http://www.niftyviews.com/ Disclaimer :- "The opinions expressed by the members on this board are based on their individual experience and perceptions and to share information with other members with the best of intentions to help fellow members in investment decisions as equity investment is a risky venture.The administrator of www.Niftyviews.com just provide a platform for the authors to express their opinion and take no guarantee for the genuineness of the same."ANY member of this forum doesnt prepare or publish any research report; or ii. provide research report; or iii. make 'buy/sell/hold' recommendation; or iv. give price target; --- You received this message because you are subscribed to the Google Groups "Niftyviews.com" group. To unsubscribe from this group and stop receiving emails from it, send an email to stockresearcher+unsubscr...@googlegroups.com. For more options, visit https://groups.google.com/d/optout.
