Corporate Feature

Published: Jun 15, 2022
Updated: Jun 15, 2022

Robust show: Promoters raise stake to 75% - Parnax Lab Ltd

Parnax Lab Ltd, a pharmaceutical company belonging to the Mumbai-headquartered Naxpar group, has put up an excellent show for fiscal 2022, with a 100% growth in the topline and a 130% spurt in EBIDTA. Realising that the company has a bright future, the promoters have increased their stake in the company by allotting 42 lakh shares to themselves @ Rs 43.50 a share and raising a Rs 18.30 crore fund by issuing preferential shares for working capital. The funds will be utilised for repaying existing loans and spending for general corporate purposes. As a result, the promoters’ holding has shot up from 63% to 75%, the maximum limit allowed.

The company has a distribution network in Central Asian countries like Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan, as well as in Kenya, Mauritius and many Latin American countries. The company can boast of a customer base which includes companies like Himalaya, L’Oreal, Sun Pharma, GSK, Glenmark, Alkem, Dabur, Cipla, Wockhardt, Ranbaxy, FDC, Indocco, Wallace and Kopran.

At present, the sale of goods accounts for 75% of revenues and sales of services for the balance 25%

The promoter Naxpar group also provides companies with the service of developing a drug through contract research as well as manufacturing services or manufacturing collaborations. Having developed substantial expertise in the manufacturing and research space, with 3 accredited facilities, the Naxpar group is well-placed to provide this assistance. This vertical is also giving a good performance.

PRODUCTS GALORE

Parnax Lab, founded in 1985, is engaged in the manufacturing, trading, and exporting of pharmaceutical formulations, cosmetics, herbal/ayurvedic formulations and nutraceuticals (FSSAI) products. The Naxpar group is a front-runner in innovation and is reputed for its integrity. The group’s manufacturing facilities extend to a number of sectors, namely pharmaceuticals, cosmetics, herbal (ayurvedic) medicine and nutraceuticals. Initially, it began as a single establishment. Indicative of its resounding success and growing client base, the company now has stateof-the-art accredited manufacturing facilities with high-speed packing lines in Silvassa (D&NH) and Baddi (Himachal Pradesh).

The Naxpar group has both the knowledge base and the skill set to work together with the formulation department to use a detailed briefing from the customer’s end to find an end-to-end solution. Once a drug/product has been identified, Naxpar provides companies with the service of stabilizing the formulation, right from pilot scale to commercial production. Naxpar has a number of niche products and it is keen on exploring distribution opportunities across the globe.

LARGE OUTPUT

Apart from the manufacturing base in Nigeria, the company has two plants located in Silvassa and Baddi. Currently 800 employees involved in producing: (i) liquid orals ranging from 30 kl to 60 kl per day in batch sizes from 500 litres to 10,000 litres; (ii) ointments, creams, gels, lotions and shampoos ranging from 10 to 20 tonnes per day in batch sizes from 500 kg to 6,000 kg; (iii) ear drops at 500 litres; (iv) powder ranging from 1 to 2 tonnes per day in batch sizes of 400 Kg and tablets/capsules with the facility to manufacture and pack coated/uncoated and effervescent tablets.

AMBITIOUS PLANS

Future prospects for the company are highly promising. The company has chalked out a capex programme involving an amount of Rs 18 crore for fiscal 2023.

Again, the company is looking to introduce its own FMCG brand and is also planning to venture into markets such as South East Asia and CIS. According to an analyst, this may turn out to be jackpot investment for shareholders.

BSE Code: 506128
CMP: Rs 95