Almost 18 months after acquiring JB Chemicals & Pharmaceuticals Ltd (JB) from the promoters for ₹3,100 crore, private equity major KKR has significantly improved its performance, functioning and rankings in pharma through a new leadership team. industry, a top executive said.
“When we bought the company, we had good assets,” JB CEO Nikhil Chopra said in an interview. “We have strengthened our processes and systems and are now running better governance. Today there is better discipline in optimizing resources, how to get the best out of the team, how to enter the most progressive category of business,” he said.
Stating that the family of promoters did not take that risk in a dynamic environment, Mr Chopra said that professionally driven management is now changing that. “We are now looking at whatever opportunities are in our hands and how new launches will drive growth,” he said.
The company had acquired two brands, including Sanzyme and Azmarda, for around ₹1,000 crore.
“There has never been an investment like this in the history of this company. New products are now contributing to growth. We are now expanding our plants into contract manufacturing; we are looking at digital ways to connect our teams.” We are ready on the ground for adoption. Along with the doctors. A lot has been done to strengthen the fundamentals,” he said.
Noting that JB has improved its ranking in the Indian pharma industry from 32nd to 23rd, Mr. Chopra said that the target now is to maintain a growth rate of 18-20%, well ahead of the industry average of 8-12%. is gone.
Outside India, the company plans to grow its contract manufacturing business by acquiring new concepts in defense and wellness. He added that the company’s contract manufacturing business has the potential to grow from $30 million currently to a $100 million business in 5 years.
JB also introduced the strategy of growing both organic and inorganic. “Inorganically we will continue to evaluate the properties available in India. We will see the right valuations and we have got many opportunities on the table,” said Mr. Chopra.
As part of the change in corporate identity, the company decided to brand itself as ‘JB’.
“In the last 18 to 20 months a lot of effort has been made to strengthen the right organisation, the right leadership team, processes and systems. We are not shying away from investing in difficult times when people were left behind during COVID. So If there could be some pressure on our balance sheet, we’ve done it. [whatever was needed] To prepare the future of the company,” he said.
In the financial year 2021-22, the company recorded revenue of Rs 2,424 crore, a 19% increase over the previous year’s Rs 2,043 crore. He said sales were up 18% in the previous quarter, with domestic formulations registering a 30% growth.