Veerhealth Care

- VeerHealth Care Limited is currently in the process of a rights issue (equity fundraising). - The status of the rights issue is ongoing with the lead manager. - An update on the rights issue is expected within the next four weeks from June 12, 2024. - The funds from the rights issue are planned to be used for setting up a new manufacturing plant. - No specific mention of new debt fundraising was made in the call. - Promoters may increase their shareholding in the next two quarters, indicating possible equity interest activity.

- The company is completing an upgradation of its current facility with new infrastructure, plant, and machinery to support new contracts and buyers, particularly for the U.S. market. - They are in an advanced stage of identifying a new location to set up an additional manufacturing unit. - The new plant construction is planned to be funded through the upcoming rights issue. - The existing facility will continue to operate alongside the new plant once the latter is operational. - Expansion includes adding new manufacturing lines not only in oral care but also in body care categories. - These investments aim to scale shipments from 6 to 10-12 per month and increase contract manufacturing, own brand promotion, and exports.

- Target revenue of INR 42 crores in FY '25 with profit before interest and tax around INR 6 crores. - Aim to achieve INR 100 crores turnover by March 2027, within 3 financial years. - Plan to increase own brand contribution from current 15% to 35% of total revenue by expanding marketing and product variants. - Contract manufacturing to decrease from 55% to around 35%, with added new categories like personal care, body care, skin care. - Exports expected to remain around 30%, primarily led by the US market, with expansion into new categories like body care starting in Q2 FY '25. - Currently utilized capacity is 85%, with plans to upscale shipments from 6 to 10-12 per month via upgraded and new manufacturing facilities. - Significant opportunity in the US market due to regulatory changes and shifting focus away from China, targeting INR 12-15 crores in US exports in FY '25. - Expansion underway with new plants funded by rights issue; both existing and new plants will operate concurrently.

- VeerHealth Care targets INR100 crores turnover by March 2027, up from INR42 crores projected for FY25. - EBITDA for FY25 is expected at INR6 crores (profit before interest and tax), with profit before tax around INR5.26 crores. - The increase in revenue is driven by scaling own brand contribution from 15% to 35%, contract manufacturing remaining at 35%, and exports steady at 30%. - Expansion includes adding new product categories (personal care, body care, skin care), facility upgrades, and a new manufacturing plant funded by rights issue. - The US market export is forecasted to contribute INR12-15 crores in FY25, expanding to INR25-30 crores annually in coming years. - Improved operational efficiency, higher capacity utilization (~85%), and enhanced marketing (including e-commerce and Nykaa listing) are expected to support earnings growth.

- VeerHealth Care Limited's current order book for the US market is fully booked with the existing client until September 30th. - They have completed about three shipments for the US institutional supplies sector. - They expect to start exports in the body care category to the same US client by the start of Q2 FY25, with FDA registration underway. - They are targeting adding 4-5 new customers after the new plant is operational. - Initial customer onboarding took 8-10 months, but subsequent customer acquisitions are expected to be faster (approximately two weeks). - The company is scaling up shipment capacity from about 6 shipments in one category to 10-12 shipments per month across multiple categories. - New product categories like personal care, body care, and skin care are being added to the contract manufacturing portfolio to diversify and increase order volumes.