Vetcare, a division of Tetragon Chemie Pvt. Ltd. is investing Rs 3.5 crore for plant and laboratory automation in a bid to grab a share of the global contract research opportunities. The company is also scouting for potential acquisitions of global or Indian animal healthcare businesses, primarily to strengthen its services in the area of technology solutions and research expertise.
The Bangalore-based company is identifying new molecules to add to its range of products like bulk drugs and formulations in the pre-mixes and liquids category for poultry, dairy, pet, and aquaculture sector. "With contract research for veterinary drugs opening up a window of opportunities, Vetcare is poised to make the most of it with its modern facilities and scientific team strength,'' Bharat Tandon, managing director, Vetcare told Pharmabiz.
Vetcare whose Department of Scientific and Industrial Research (DSIR)-certified lab in Bangalore is being upgraded at a cost of Rs. 25 to 40 lakh annually is India's only dedicated vet drug major. In 1999, it inked a joint venture pact with Provimi, Netherlands, a European market major with 100 plants in 30 countries employing 8,000 people, where 600 were scientists. In late 2003, it acquired Agvet, a division of Unichem Laboratories at Rs. 12.5 crore to strengthen its presence in the dairy sector. The acquisitions have led to novel drugs and an increase in market cap.
A prevailing trend in the animal healthcare sector, valued at Rs. 1,000 crore, is that the drug major, GSK has exited from the veterinary business to make way for other multinationals to enter India. In such a scenario, Vetcare, with its business model, is looking aggressively at both internal and external growth. Acquisition would enable the company to give it an innovative positioning for value-delivery in the animal health business, stated Tandon.
The Rs. 122-crore company, growing at 17 per cent, is ISO 9001:2000 & GMP (WHO) certified with six units (five in Bangalore and one in Noida, New Delhi) including an Export Oriented Unit. Its international operations cover SAARC countries, Asian Pacific region, Sub-Sahara, Zambia, Kenya, Brazil, Argentina and Peru. Vetcare offers many of these hot and humid regions farm solutions like feed formulations to overcome heat stress in pregnant and normal livestock. It also has a bio-security solutions to protect poultry, cattle, pets and aquatic animals from diseases.
The challenges in the global animal health market are the stringent adherence to feed laws, product registration, specific packaging technologies and documentation.