IPO not coming in next five years: RC Juneja

By: | Published: June 3, 2015 12:38 AM

With a valuation of over $1.7 billion, Mankind Pharma is counted among India’s top five drug companies.

With a valuation of over $1.7 billion, Mankind Pharma is counted among India’s top five drug companies. It plans to launch 75 products in FY16 to achieve its revenue target of over Rs 5,000 crore by FY17. RC Juneja, founder and chairman, Mankind Pharma, tells Neha Bothra that the company is looking to enhance its presence in the US over 18 months and expects a revenue contribution of $150 million from the country by 2030. Juneja also says the company is not looking to divest equity and may decide on an IPO after five years. Excerpts:

What are your focus areas for the next two-three years?
We will focus on the domestic and export markets, targeting over
Rs 5,000 crore by FY17. The domestic market will be the main growth driver. We will focus on formulations, increasing the number of products in the neutraceutical category and expansion of field force. We also plan to enter the API (active pharmaceutical ingredient) segment given the government’s thrust on this area, and our under-construction factory will be ready in six months. Our next big focus area will be the US market, which we plan to enter in a year-and-a-half, and in six months we will know which molecules to launch there. By 2030, we expect the US market to contribute $150 million to revenues.

Do you have a launch target for FY16?

We expect to launch close to 75 products across segments like food supplements and antibiotics.

You have undertaken novel drug discovery and research programmes to develop therapies in areas like diabetes, arthritis and angina. What is the progress on this?

Patent laws make it difficult and the process requires a lot of time and money. We may consider a foreign collaboration.

Are you looking to raise funds?

As of now, we have no debt on our books, but we are currently not looking to raise funds or dilute equity.

Chrys Capital has exited Mankind Pharma. How involved are the new stakeholders?

Capital International has bought 11.5% stake for around $200 million from Chrys Capital, which had invested $25 million in Mankind Pharma. They will come on board by August.

What is your inorganic growth strategy?

That’s an option we will consider only if the valuation makes sense to us. And we do not believe in spending too much money, say, Rs 300 crore on an asset that will  bring us additional revenue of Rs 100 crore. If there is a reasonably priced target we can go for it, otherwise we generally create another division and spend, for example, Rs 100 crore to build the new subsidiary over three years. We are not in the rat race, and this a better strategy for us as we can create our own portfolio.

What’s your capex plan for FY16?

This year, we are setting up some plants and plan to spend around Rs 300 crore.

Would you consider divesting stake if the valuation is good?

No, we don’t need money.

You are targeting an annual revenue of over Rs 5,000 crore in two years. You have the size and the balance sheet strength to scale up the business. Would you consider listing on stock exchanges?

We’ve not yet thought about it because we don’t need the money. We’ll continue to grow as a private enterprise at least for the next five years.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition