About Company

• Incorporated in 2004, Akums Drugs and Pharmaceuticals is a contract development and manufacturing organization ("CDMO") offering a comprehensive range of pharmaceutical products and services in India and overseas.
• The company is also engaged in the manufacturing and sale of branded pharmaceutical formulations and active pharmaceutical ingredients ("APIs"). The other services include R&D, filing of regulatory dossiers in the Indian and global markets, and other testing services.
• Akums Drugs and Pharmaceuticals is the largest India-focused CDMO in terms of revenue, production capacity and clients served during the FY2023.
• The company had a market share of 30.2% of the Indian domestic CDMO market by value in FY2024, which increased from 26.7% during the FY 2021.
• The company has procured 5 patents for various dosage forms, formulations and processes as of March 31st, 2024. Additionally, the company holds 1,432 registered trademarks and has 506 pending trademark applications in several classes.
• The company operates 12 manufacturing units (8 in Haridwar, Uttarakhand, 1 in Kotdwar, Uttarakhand, 1 unit in Baddi, Himachal Pradesh and 1 unit in each of Dera Bassi and Lalru, Punjab). Some of the manufacturing units have been accredited by various global regulatory agencies such as the European Good Manufacturing Practice (“EU-GMP”), the World Health Organization Good Manufacturing Practice (“WHO-GMP”) and the United States National Sanitation Foundation (“US NSF”). Further, the company expects its new injectable facility to be operational in FY 2025.
• The company has 4 R&D centers, 3 dedicated to CDMO and formulations businesses and 1 at Barwala, Haridwar, for API business. API R&D center features a small volume, highly potent API manufacturing unit. The R&D focus has led the company to win 45 DCGI approvals in FY24, nearly 2.7 times the number of approvals by 3 of its peers combined for FY24.

• The company’s CDMO business client base comprised of 1,524 Indian and MNC pharmaceutical and wellness companies as on March 31st,2024 as against 1,386 as of March 31, 2022. The diverse client base includes pharmaceutical companies, nutraceutical companies, cosmo-derma companies, wellness companies, e-commerce companies, healthcare providers and central and state government entities. The company manufactured formulations for 26 of the leading 30 pharmaceutical companies in terms of sales in India, in FY2024.

• The company has a longstanding relationship with its clients. The company has benefitted from repeat orders in the past 5 years from 38 of its 50 largest clients in terms of revenue, as of March 31, 2024. The company’s 50 largest clients in terms of revenue have a legacy of 10 plus years, and their revenue contribution has grown from ?1,354.8.5 Cr during FY 2022 to ?1,441.54 Cr during FY2024.

Strengths

Competitive Strength 

• Largest CDMO serving the Indian pharmaceutical industry
• Diverse client base with longstanding CDMO relationships
• Large and rapidly growing R&D capabilities across product portfolio
• Strategic presence across the pharmaceutical value chain
• Experienced and entrepreneurial management team with a proven track record and marquee healthcare focused private equity investor

 Business Strategies 

• Leverage the leadership position to continue to increase the market share and consolidate position in the CDMO market
• Sustaining R&D for product development across therapies and dosage forms
• Grow the domestic formulations business
• Expanding the global presence through strategic initiatives
• Scale the API business

Company Promoters

Company Financials

Akums Drugs and Pharmaceuticals Limited's revenue increased by 13.81% and profit after tax (PAT) dropped by -99.19% between the financial year ending with March 31, 2024 and March 31, 2023.

Objects of the Issue

The Company proposes to utilize the Net Proceeds towards the funding of the following objects:

1. Repayment/ prepayment of indebtedness of the company and its Subsidiaries;
2. Funding incremental working capital requirements of the company;
3. Pursuing inorganic growth initiatives through acquisitions; and
4. General corporate purposes.