Hester Bio

2019-20

AR Notes

Part 2

Before you move ahead, get some background here: https://twitter.com/SmartSyncServ/status/1292710653879361536

1/

Strategy for Sustainable Growth

•Customer-centric approach
•Win-win Partnerships
•Operational improvement
•Nurturing innovations
•Grow-Diversify-Integrate

2/

Financial Statements of Subsidiaries

•Significant investment in Hester Africa
•Whereas operations in Hester Africa & Hester Kenya has yet to commence
•The current financials hide the potential revenues from these subsidiaries
•Execution will be the key

3/

Shareholding Details

•Promoters hold more than 50% of the company
•No MF holdings
•Mr. Kuntal Shah holds close to 3%

4/

Notes from MDA

Global Veterinary healthcare industry

•Diagnosis, treatment and prevention of animal diseases
•Services, Medical Equipment & Animal Medicine
•Grew at a CAGR of 10%(2015-2019) to USD154 Bn.
•Expected to reach USD 234 Bn by 2023.

5/

Growth Drivers

•Increasing penetration of Pet Insurance
•Increased Pet Ownership by Gen X & Gen Y adults
•Increased Pet Spending
•Increasing risk of Emerging Zoonosis
•Rise in Meat Consumption & Related Regulations
•Product innovation leading to tech advancement

6/

Major Challenges

•Inappropriate use of medicines
•Rising Threat of Antibiotic resistance
•Reduction in Free Trade
•Use of Counterfeit medicines
•Shortage of Veterinarians
•Increasing cost of Animal testing & Veterinary Services

7/

Indian AH Industry

•Focus of govt as major industries such as dairy in India are animal-dependent.
•Paradigm Shift: New tech used for prevention & cure of farm & companion animals
•From Therapeutics to Preventive
•From productivity enhancement to overall healthcare

8/

Indian AH Industry

•Highest zoonotic disease burden among the developing countries

•27% of the livestock in India showed signs of being infected with bacterial food-borne diseases

•Rising prevalence of diseases leading to innovation in managing animal health

9/

Tailwinds-Indian AH Industry

•Rising prevalence of zoonotic diseases
•Tech advancements- prospects of innovative soln
•Increasing demand for poultry and milk products
•Rising pet ownership
•Increase in the no of Govt strategies to promote healthcare policies

10/

Govt Initiatives

•National Animal Disease Control Programme (NACDP)
•National Artificial Insemination Programme (NAIP)
•National Programme for Dairy Development (NPDD)

11/

Performance Overview

•Company Overview
•Products & Services
•Financial Overviews

12/

Outlook

•Diversify Product Mix
•Strengthen the marketing team
•Boosting International Revenue
•Govt Initiatives to drive growth
•Unique Distribution Network

13/

Risks

•Economic Slowdown
•Competition
•Delay in Govt Programs
•Product Development
•Forex
•Regulatory

14/

Consolidated FS

•Balance Sheet
•Profit & Loss A/c
•Cash Flow Statement

“Biotech, nanotech & AI will soon enable humans to reshape living beings in radical new ways, which will redefine the very meaning of life. When we come to design this brave new world, we should take into account the welfare of all sentient beings, & not just of Homo sapiens.”

16/

Yuval Noah Harari, in the above quote, was very concerned about the fate of Animals.

Hester Bio, at the moment, seems to be sharing the same concern.

End