Wanbury ( Turn Around Company ) High Potential Multibagger

India is now among the top five pharmaceutical emerging markets. The Indian pharma industry has been growing at a compounded annual growth rate (CAGR) of more than 15 per cent over the last five years and has significant growth opportunities. The domestic pharmaceutical market is expected to register a strong double-digit growth.

The cumulative drugs and pharmaceuticals sector has attracted foreign direct investments (FDI) worth US$  13 Bn during April 2000 to February 201 and to reach US$ 90 Billion, according to the latest data published by Department of Industrial Policy and Promotion (DIPP)
The Indian pharmaceutical industry accounts for over 8% of global pharmaceutical production. The industry has over 60,000 generic brands across 60 therapeutic categories and manufactures more than 400 different active pharmaceutical ingredients (APIs). The manufacturing cost of the Indian Pharma companies is up to 65% lower than that of US firms and almost half of that of European manufacturers, due to which India has been emerging as the Drugs manufacturing hub of the world. The industry registered exports of US$ 13 billion at a growth rate of 30%, as per Dr P V Appaji, Director-General, Pharmaceutical Exports Council of India (Pharmexcil). The Ministry of Commerce has targeted Indian pharma sector exports at US$ 25 billion by 2014 at an annual growth rate of 25%.




Wanbury was incorporated in 1990 as a private limited company under the name of Pearl Distributors Private Limited. The name of the company was changed to 'Pearl Organics Private Limited on January 17, 1991 and the company was converted into a public limited company on August 6, 1991. Wanbury Limited, one of India’s fastest growing pharmaceutical companies amongst the ‘Top 50 Companies’ in India (as per ORG-IMS), has a strong presence in API global market and domestic branded Formulation. Wanbury’s major thrust area lies in Active Pharmaceutical Ingredient (API) sale in over 70 countries and Pan-India Formulation presence.

In 2007,Pharmaceutical Products India Ltd was amalgamated with the company pursuant to the BIFR order.In the same year, Doctor's Organics and Chemicals Ltd also came into the fold of Wanbury as this also merged with Wanbury.The company has entered into a strategic association with Bravo Healthcare Ltd and also incorporated Ningxia Wanbury Fine Chemicals Co Ltd to source raw materials from China.The company has opened its office in Zurich,Switzerland for its CRAMS business and incorporated Wanbury Global FZE in Middle East for carrying out its trading activities in the year 2008.



The Company was doing extremely well and was making esteem by assuming control focused on resources and turning them around, until it committed a disaster error of purchasing a Spanish organization Cantabria, which demonstrated an exorbitant resource purchased at a wrong time. The advantage was purchased totally in 2007, equitable before the 2008 emergency and shockingly, what was required to be the most prized resource, ended up being its close demise warrant. Wanbury's timing went terribly wrong, as after 2008 emergency the Spanish economy could never recoup and went into profound budgetary emergency and melancholy and on an awfully wrong direction of unemployment chart (at present around 27% on the off chance that I am not off-base).

Wanbury operates in a highly competitive environment with pricing being one of the key determining factors of success. In the API business, Wanbury  has been able to overcome this risk by influencing the prices as it is the largest manufacturer of Metformin in the world with over 30% market share. Another product Tramadol has also been in high demand especially in American markets. In the Formulations Business the Company has mitigated this risk to a very large extent by diversifying its product portfolio and launching new value-added products. The continuous rise in crude oil and other commodities prices impact the prices of raw material and intermediates and in turn increase the cost of APIs. Wanbury has a dedicated Research and Development team that continuously innovates and remains competitive by developing / acquiring ability to sort out simple and effective solutions to practical problems. The Company has a team of highly competitive scientists supported by excellent instrumentation



The last couple of years have been truly memorable: with new operations administration coming set up and on once more of CDR bundle getting sanction, the turnaround expert began turning around itself. Since the new presidents (API and Formulations) assumed control over, the organization has strikingly begun restoring itself. The loses began contracting and gradually it got to be EBITA positive and now positive even at the Net level. The organization has two US FDA endorsed plants and different plants for unregulated markets. The organization's details and API business both are turning upward and indicating great development in last couple of years.

 Wanbury is as of now creating positive money stream. Wanbury has demonstrated net benefits, inspite of adjusting their whole obligation's advantage and foremost and is likewise paying charges. This is huge in light of the fact that organization had ban for reimbursements till oct 12, and now since they are creating benefits inspite of adjusting their whole obligation (which is exceptionally critical at around 310cr), it implies the recuperation is for genuine and maintainable and they have demonstrated EBITA benefits un-hindered for last 6 quarters and this quarter benefits even at net level. The formula for achievement looks right this time around. The organization has incredible piece buster brands, has estimating force, expanding promoter holding, effectively began producing benefits while adjusting its whole obligation, has two US FDA affirmed plants, furthermore began creating positive money streams.

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