Gujarat Themis Biosyn - New Business Model To Drive Topline, Margin: HDFC Securities Initiates Coverage

HDFC Securities Retail Research

Gujarat Themis Biosyn Ltd. is engaged in manufacturing of active pharma ingredients namely Rifamycin S and Rifamycin O. The key raw material for Gujarat Themis Biosyn is Rifabutin which is sourced through domestic market.

The company has long standing relationship with its suppliers thereby ensuring timely supply of key raw materials.

The company’s manufacturing plant is located in Vapi, Gujarat. Gujarat Themis Biosyn has installed capacity for manufacturing 10,000 kg per month for Rifamycin S and 6,000 kg per month (Rifamycin O). The average capacity utilisation was between 70-80% in FY22 and that has increased to 90-95% in H1 FY23.

Company caters to only two customers Lupin Ltd. (40- 45% of sales) and Optrix Laboratories Pvt. Ltd. (50-55% of sales). Company has ‘take or pay’ agreement with Optrix Laboratories which is renewed annually and has a contract with Lupin for five years.

Gujarat Themis Biosyn is trying to add two more customers to reduce the client concentration. The company said that it is working on 10-12 new products in the areas such as cardiac, anti-Infectives etc. and it would be by way of fermentation process only.

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