Mumbai, Jun 19 (PTI) Advanced Enzyme Technologies Ltd today said it is eying inorganic growth through acquisitions and targeting Rs 1,000-crore turnover in the next five years.
The research-driven company is looking for acquisitions in Europe and North America.
“We are global leaders in enzymes manufacturing and looking at an inorganic growth through acquisitions in R&D space in Europe, North America or Mexico.
“We have strong presence in the US and India and now plan to increase footprints in Europe and Asian markets,” Advanced Enzyme Managing Director C L Rathi told PTI here.
“Being a research-driven company, we have invested significant resources in the R&D of various enzymes, proprietary enzyme products and customised enzyme solutions since inception. Going forward, we are looking at expanding in overseas markets through acquisition of a R&D company,” he said.
The company has repaid the debt of around Rs 120 crore in the last two years and it is generating cash, which will be used to fund the acquisition plans, he said.
The recent buyout of Hyderabad-based JC Biotech will help the company in boosting market share in the enzymes space and enable it to enter the biopharmaceutical molecules segment. The acquisition will also contribute around Rs 120 crore in the topline this year, Rathi said.
The company is also setting up a marketing subsidiary and marketing office in Malaysia, the managing director said.
Rathi said the company’s US operation contributes 50 per cent of its revenues.
“We see steady growth in our nutraceutical and animal feed segments, which are high margin business. We expect 15-20 per cent CAGR growth and hope to achieve Rs 1,000 crore turnover in the next five-year period from Rs 330 crore in FY17.”
The company offers its products and solutions to a global clientele of more than 700 customers spanning across 50 countries. It manufactures enzymes using all four existing natural origins – plant, fungal, bacterial and animal sources.
Enzymes are used in a wide variety of industries like human health care and nutrition, animal nutrition, baking, fruit & vegetable processing, brewing & malting, grain processing, protein modification, dairy processing, speciality applications, textile processing and others.
This is published unedited from the PTI feed.