Granules India Ltd. plans to achieve 25 percent annualised profit growth for the next three years on the back of its pending U.S. Food and Drug Administration approvals and new launches.
“We have about 20 pending approvals from the U.S. FDA approvals and we expect to keep launching seven-eight new products each year for the next two years,” Krishna Prasad Chigurupati, chairman and managing director of the company, told BloombergQuint in an interview. “The market size [of pending approvals] is at least $400 million and we are aiming for 15-20 percent share on an average.”
The market share could potentially increase to 50-60 percent on certain products as existing players drop out as cost-efficient newcomers enter the market, Chigurupati said, adding that the company also expects to reduce its debt to the level around 1.1 times of equity for the next year by controlling its working capital cycle and utilising its cash flows.
Shares of the Hyderabad-based drugmaker declined 1.4 percent compared to a 0.2 percent gain in the Nifty Index.
Watch| Granules India Management Speaks On Debt Reduction Plans
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