Hester Biosciences to expand to pet care shortly
22 March 2022 • Parikshit Singh
The coming financial year, Hester Biosciences is set to expand into the rapidly growing Pet Care sector this April. Hester’s comprehensive knowledge of animal biology, cutting-edge R&D capabilities, and four-decade-long experience in animal healthcare gives them an advantage. This expansion perfectly aligns with their core beliefs and vision to provide better health for human beings through healthy animals.
The product portfolio is going to comprise of dermatology, grooming and specialty products. Hester plans to eventually expand by way of pet biological and diagnostics. The complete portfolio will target both veterinarians and pet parents with offerings that cater to the evolving needs of pets.
In a recent interview with CNBC TV-18, Rajiv Gandhi MD and CEO of Hester Biosciences said that Hester is an animal health company having a range of products for life stock and poultry. The next logical extension for them was to venture into the pet market. The market seems interesting even though it is different from the same segment globally. Globally, 30% of animal health comes from pet business, while in India it is at 12%. Addressable pet market in India is ~Rs. 700 crores indicating there is headroom for the segment to grow.
Talking about the initial investment, Mr. Gandhi mentioned that currently no extra infrastructure investment is needed with the only investment being the new marketing team for the brand.
The management forecasts a turnover of Rs. 8 -12 crores in the first year. The management would prefer a slow start and intents to first launch Anti parasites, dermatology, and grooming and nutrition products among others. In the first 2 years expect a cost almost equal to the turnover. However, the topline is expected to grow at a 30-40% in the coming years.
India has the fastest-growing pet care market worldwide, with its growing by 14% in 2022, making this an exciting and valuable opportunity for the poultry vaccine giant.
Source: Exchange Filing, CNBC TV-18