Tarsons Products Limited has informed the Exchange about Investor Presentation
An ISO 9001 & ISO 13485 Certified Company
Date: 28th May, 2023
To, BSE Limited (“BSE”), Corporate Relationship Department, 2nd Floor, New Trading Ring, P.J. Towers, Dalal Street, Mumbai – 400 001 BSE Scrip code: 543399 ISIN: INE144Z01023
To, National Stock Exchange of India Limited (“NSE”) “Exchange Plaza”, 5th Floor, Plot No. C/1, G Block, Bandra-Kurla Complex, Bandra (East), Mumbai – 400 051 NSE Symbol: TARSONS ISIN: INE144Z01023
Sub: Investor Presentation for the quarter and financial year ended 31st March, 2023
Dear Sir/Madam,
Pursuant to Regulation 30(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed herewith the Investor Presentation for the quarter and financial year ended 31st March, 2023.
The Presentation will also be uploaded on the Company’s website at www.tarsons.com.
We request you to kindly take the same on your records.
Thanking You,
Yours faithfully, For Tarsons Products Limited (Formerly Tarsons Products Private Limited)
Santosh Kumar Agarwal Company Secretary and Chief Financial Officer ICSI Membership No. 44836
Encl: As above
Tarsons Products Limited, 902, Martin Burn Business Park, BP-3, Sector –V, Salt Lake, Kolkata – 700091 Tel: +91 33 3522 0300, Web: www.tarsons.com Mail: info@tarsons.com, CIN: L51109WB1983PLC036510
SANTOSH KUMAR AGARWALDigitally signed by SANTOSH KUMAR AGARWAL Date: 2023.05.28 18:58:22 +05'30' TARSONS PRODUCTS LIMITED Investor Presentation – May 2023
Leading player in the domestic plastic labware market and presence over 40 countries across the Globe
Safe Harbor
This presentation and the accompanying slides (the “Presentation”), which have been prepared by Tarsons Products Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.
This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.
Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections.
All Maps used in the presentation are not to scale. All data, information, and maps are provided "as is" without warranty or any representation of accuracy, timeliness or completeness
2
Q4 FY23 Financial Highlights
Q4 & FY23 Key Highlights
➢ Revenues for Q4 & FY23 were down by 3% & 6% respectively, dip in revenues were on majorly on account of;
• Temporary Slowdown in the life science industry,. However, we are seeing early signs of revival and are optimistic on the long-term industry
growth in domestic as well as international markets. Our revenues were up by 34% sequentially
•
Loss in revenues related to covid pandemic as compared to FY22, however our conventional business revenues has replaced this loss & is expected to pick up
➢ EBITDA margins for the Q4FY23 stood at 47.8% against 43.5% in Q3FY23, For Q4FY23 margins improved Q-o-Q due to:
• Higher absorption of fixed cost on account of increase in revenues
➢ EBITDA margins for FY23 stood at 45.8% as against 50.8% in FY22, For FY23 margins decline due to:
•
Lower absorption of fixed cost on account of decline in revenues in the first 9 months
• Higher spends on the sales promotion, marketing & travelling expenses in FY23 compared to FY22 to fuel the future growth in Domestic &
Export markets
➢ Update on our upcoming Capex (New manufacturing capacities at Panchla, West Bengal)
• Capex planned is as per schedule and we do not see any major deviation from our timelines
• Manufacturing at the new facilities will begin in phases starting from Q2FY24 & full commencement of the plant is expected by Q4FY24
• We remain optimistic on the industry growth prospects, with the addition of new product categories & capacity expansion, we envisage to
reach greater heights
4
Key Financial Highlights
Revenue (in Rs. Crs)
EBIDTA (in Rs. Crs)
Profit After Tax (in Rs. Crs)
300.8
283.2
84.9
+34%
82.1
61.3
152.7
129.8
44.3
+47%
39.3
26.7
100.7
80.7
29.5
+42%
22.8
16.1
Q4FY22
Q3FY23
Q4FY23
FY22
FY23
Q4FY22
Q3FY23
Q4FY23
FY22
FY23
Q4FY22
Q3FY23
Q4FY23
FY22
FY23
GP Margin (%)
-230 Bps
77.7%
77.5%
75.2%
79.1%
77.0%
52.2%
EBIDTA Margin (%)
PAT Margin (%)
+430 Bps
47.8%
50.8%
45.8%
43.5%
34.7%
+150 Bps
26.3%
27.8%
33.5%
28.5%
Q4FY22
Q3FY23
Q4FY23
FY22
FY23
Q4FY22
Q3FY23
Q4FY23
FY22
FY23
Q4FY22
Q3FY23
Q4FY23
FY22
FY23
5
Q4 & FY23 Key Operational Highlights
(in Rs. Crs)
85
60
25
t r o p x E : c i t s e m o D – t l i
p S e u n e v e R
+34%
61
41
41%
82
58
21
19%
25
301
202
99
Q4FY22
Q3FY23
Q4FY23
FY22
283
191
92
FY23
29%
Q4FY22
30%
Q4FY23
71%
70%
33%
33%
FY22
67%
FY23
67%
Domestic
Exports
➢ Our revenues from domestic market for Q4FY23 stood at Rs. 58 crs as compared to Rs. 41 crs in Q3FY23, a growth of 41%
➢ Our revenues from export market for Q4FY23 stood at Rs. 25 crs as compared to Rs. 21 crs in Q3FY23, a growth of 19%
➢ Despite the overall decline in the life science industry, Tarsons has been successful in capturing higher market. Looking ahead, we are confident about the
growth prospects of our business.
➢ Off the total exports revenue; branded products contributed 60% & 40% was contributed by ODM sales in Q4FY23. For FY23, 37% was contributed by
branded products & 63% by ODM sales
➢ Spilt across Domestic : Export revenues stood at 70:30 for Q4FY23 & 67:33 for FY23
6
Q4 & FY23 Profit & Loss Statement
Profit and Loss (in Rs. Crs)
Revenue from Operations
Cost of Goods Solds
Gross Profit
Gross Profit Margin
Employee Cost
Other Expenses
EBITDA
EBITDA Margin
Depreciation
Other Income
EBIT
Finance Cost
Profit before Tax
Tax
Profit After Tax
Q4FY23
Q4FY22
82.1
20.3
61.7
84.9
19.0
66.0
75.2%
77.7%
8.6
13.9
39.3
8.6
13.0
44.3
47.8%
52.2%
8.3
2.2
33.2
2.1
31.1
8.3
22.8
7.2
2.6
39.7
0.5
39.2
9.8
29.5
YoY
-3.4%
-6.4%
-11.5%
-16.4%
-20.7%
-22.5%
Profit After Tax Margin
EPS
27.8%
4.29
34.7%
5.69
QoQ
33.8%
29.9%
47.2%
45.3%
44.0%
41.6%
Q3FY23
61.3
13.8
47.5
77.5%
8.4
12.4
26.7
43.5%
7.2
3.4
22.8
1.2
21.6
5.5
16.1
26.3%
3.03
FY23
283.2
65.1
218.2
77.0%
34.1
54.4
129.8
45.8%
28.5
11.9
113.2
4.5
108.7
28.0
80.7
28.5%
15.17
FY22
300.8
62.9
237.9
79.1%
31.4
53.8
152.7
50.8%
22.0
8.5
139.2
4.2
135.0
34.3
100.7
33.5%
19.46
YoY
-5.8%
-8.3%
-15.0%
-18.7%
-19.5%
-19.8%
7
Balance Sheet
Assets (in Rs. Crs)
Non - Current Assets
Property Plant & Equipment's
CWIP
Other Intangible assets
Right of use asset
Financial Assets
(i) Other Financial Assets
Current Tax Assets (Net)
Other Non Current Assets
Current Assets
Inventories
Financial Assets
(i) Trade receivables
(ii) Cash and cash equivalents
(iii) Bank balances other than (ii)
Other Financial Assets
Other Current Assets
Total Assets
Mar-23
Mar-22
Equity & Liabilities (in Rs. Crs)
Mar-23
Mar-22
473.7
217.7
119.0
0.5
6.6
4.1
2.2
123.6
252.0
114.4
65.8
59.1
0.9
0.1
11.8
725.7
299.7
181.4
32.2
0.7
6.7
5.9
2.5
70.3
244.5
82.4
65.2
77.4
8.4
0.1
11.1
544.2
Total Equity
Share Capital
Other Equity
Non-Current Liabilities
Financial Liabilities
(i) Borrowings
(ii) Lease Liabilities
(iii) Other Financial Liabilities
Other Non Current Liabilities
Deferred Tax Liabilities
Current Liabilities
Financial Liabilities
(i) Borrowings
(ii) Trade Payables
(iii) Lease Liabilities
(iv) Other Financial Liabilities
Other Current Liabilities
Current tax liabilities (net)
Provisions
Total Equity & Liabilities
569.3
10.6
558.7
93.5
80.7
0.0
0.0
7.3
5.4
489.9
10.6
479.2
19.5
9.3
0.0
0.1
5.6
4.4
62.9
34.9
30.0
9.6
0.0
15.5
3.9
1.9
2.0
12.3
13.0
0.0
3.5
4.7
0.0
1.5
725.7
544.2
8
Cash Flow Statement
Particulars (in Rs. Crs)
Net Profit Before Tax
Adjustments for: Non -Cash Items / Other Investment or Financial Items
Operating profit before working capital changes
Changes in working capital
Cash generated from Operations
Direct taxes paid (net of refund)
Net Cash from Operating Activities
Net Cash from Investing Activities
Net Cash from Financing Activities
Net Increase/Decrease in Cash and Cash equivalents
Add: Cash & Cash equivalents at the beginning of the period
Exchange difference on translation of foreign currency
Cash & Cash equivalents at the end of the period
Mar-23
Mar-22
108.7
135.0
27.5
23.7
136.2
158.7
-36.3
99.9
-24.3
75.6
-41.8
116.8
-33.4
83.5
-178.5
-137.9
84.6
-18.4
77.4
0.0
59.1
129.6
75.1
2.3
0.0
77.4
Robust Cashflow from operations despite being in the capex mode
9
Management Commentary
Rohan Sehgal Whole Time Director
Commenting on the performance of the company Mr. Rohan Sehgal, Whole Time Director for Tarsons, said:
“Our revenues for Q4FY23 stood at Rs. 82 crs with EBIDTA margins of ~48%. We have been seeing early signs of revival in the life science industry and there are encouraging indicators that the macroeconomic conditions are gradually normalizing which got reflected by our export revenue demonstrating growth of 19%, and domestic revenue increasing over 41% sequentially in Q4FY23, suggesting a favorable trend in both our international and domestic markets.
Our full year revenues were down by 6% Y-o-Y, majorly due to elevated COVID-related revenues in FY22, however we were able to replace this with our conventional business which has shown robust growth in FY23.
Going forward, with addition of newer product categories from our upcoming facility, addition of new customer & wallet share expansion from our existing customers, we are confident of outperforming the industry growth both in the domestic & international markets.
Our primary growth objective revolves around establishing ourselves as a leading supplier of high-quality labware products in the international market, adhering to global standards, focusing on expanding our new facilities and diligently working to establish a robust and esteemed brand, "TARSONS" within the life science community.
Considering the revival in the industry and with the upcoming capacity expansion, we maintain a positive outlook on the next phase of growth for our company.”
10
Historical Consolidated Financial Highlights
REVENUE (in Rs. Crs)
EBITDA (in Rs. Crs)
+17%
301
283
229
176
+23%
153
130
103
69
PAT (in Rs. Crs)
+26%
101
81
69
41
FY20
FY21
FY22
FY23
FY20
FY21
FY22
FY23
FY20
FY21
FY22
FY23
GP Margin
470 bps
72.3%
73.1%
79.1%
77.0%
EBITDA Margin
640 bps
PAT Margin
550 bps
45.2%
50.8%
45.8%
39.4%
30.1%
33.5%
28.5%
23.0%
FY20
FY21
FY22
FY23
FY20
FY21
FY22
FY23
FY20
FY21
FY22
FY23
11
Historical Consolidated Profit & Loss Statement
Profit and Loss (in Rs. Crs)
Revenue from Operations
Cost of Goods Solds
Gross Profit
Gross Profit Margin
Employee Cost
Other Expenses
EBITDA
EBITDA Margin
Depreciation
Other Income
EBIT
Finance Cost
Profit before Tax
Tax
Profit After Tax
Profit After Tax Margin
FY23
283.2
65.1
218.2
77.0%
34.1
54.4
129.8
45.8%
28.5
11.9
113.2
4.5
108.7
28.0
80.7
28.5%
FY22
300.8
62.9
237.9
79.1%
31.4
53.8
152.7
50.8%
22.0
8.5
139.2
4.2
135.0
34.3
100.7
33.5%
FY21
228.9
61.5
167.4
73.1%
24.4
39.5
103.4
45.2%
13.7
5.4
95.2
2.7
92.4
23.6
68.9
FY20
175.9
48.7
127.2
72.3%
20.1
37.9
69.3
39.4%
14.2
4.2
59.2
6.1
53.1
12.6
40.5
30.1%
23.0%
CAGR (FY20-FY23)
17.2%
19.7%
470 Bps
23.3%
640 Bps
24.1%
27.0%
25.8%
550 Bps
12
Historical Consolidated Balance Sheet
Assets (in Rs. Crs)
Non - Current Assets
Property Plant & Equipment's
CWIP
Other Intangible assets
Right of use asset
Intangible Assets under development
Financial Assets
(i) Other Financial Assets
Current Tax Assets (Net)
Other Non Current Assets
Current Assets
Inventories
Financial Assets
(i) Trade receivables
(ii) Cash and cash equivalents
(iii) Bank balances other than (ii)
Other Financial Assets
Other Current Assets
Total Assets
0.5
6.6
0.0
4.1
2.2
123.6
252.0
114.4
65.8
59.1
0.9
0.1
0.7
6.7
0.0
5.9
2.5
0.0
6.8
0.6
3.1
2.4
0.0
4.4
0.0
2.2
1.8
70.3
35.1
13.5
244.5
112.8
119.8
82.4
46.7
48.7
65.2
77.4
8.4
0.1
47.0
2.3
0.8
0.0
38.2
25.3
0.9
0.0
6.7
11.8
11.1
15.9
Mar-23 Mar-22 Mar-21 Mar-20
Equity & Liabilities (in Rs. Crs)
Mar-23 Mar-22 Mar-21 Mar-20
473.7
217.7
119.0
299.7
181.4
32.2
183.1
113.7
21.5
128.9
87.6
19.3
Total Equity
Share Capital
Other Equity
Non-Current Liabilities
Financial Liabilities
(i) Borrowings
(ii) Lease Liabilities
(iii) Other Financial Liabilities
Other Non Current Liabilities
Deferred Tax Liabilities
Current Liabilities
Financial Liabilities
(i) Borrowings
(ii) Trade Payables
(III) Lease Liabilities
(iv) Other Financial Liabilities
Other Current Liabilities
Current tax liabilities (net)
Provisions
569.3
10.6
558.7
93.5
80.7
0.0
0.0
7.3
5.4
489.9
10.6
479.2
19.5
244.3
197.6
0.2
244.1
9.8
0.2
197.4
10.7
9.3
0.0
0.1
5.6
4.4
3.3
0.0
0.1
3.2
3.3
5.9
0.0
0.1
1.5
3.2
62.9
34.9
41.8
40.4
30.0
9.6
0.0
15.5
3.9
1.9
2.0
12.3
13.0
0.0
3.5
4.7
0.0
1.5
30.2
30.0
6.0
0.0
2.7
1.4
0.0
1.5
5.9
0.0
1.9
1.5
0.0
1.1
725.7
544.2
296.0
248.7
Total Equity & Liabilities
725.7
544.2
296.0
248.7
13
Historical Consolidated Cash Flow Statement
Particulars (in Rs. Crs)
Net Profit Before Tax
Adjustments for: Non -Cash Items / Other Investment or Financial Items
Operating profit before working capital changes
Changes in working capital
Cash generated from Operations
Direct taxes paid (net of refund)
Net Cash from Operating Activities
Net Cash from Investing Activities
Net Cash from Financing Activities
Net Increase/Decrease in Cash and Cash equivalents
Add: Cash & Cash equivalents at the beginning of the period
Exchange difference on translation of foreign currency
Cash & Cash equivalents at the end of the period
FY23
108.7
27.5
136.2
-36.3
99.9
-24.3
75.6
FY22
135.0
23.7
158.7
-41.8
116.8
-33.4
83.5
-178.5
-137.9
84.6
-18.4
77.4
0.0
59.1
129.6
75.1
2.3
0.0
77.4
FY21
92.4
15.8
108.2
-16.0
92.2
-24.1
68.2
-63.9
-27.2
-23.0
25.3
0.0
2.3
FY20
53.1
20.0
73.1
6.4
79.5
-15.3
64.2
-25.4
-13.8
25.0
0.5
-0.2
25.3
14
Key Consolidated Historical Ratios
Return on Equity
28.2%
20.5%
20.6%
14.2%
Return on Capital Employed^
Debt to Equity
43.0%
29.5%
34.0%
25.9%
0.2
0.1
0.2
0.0
FY20
FY21
FY22
FY23
FY20
FY21
FY22
FY23
FY20
FY21
FY22
FY23
Current Ratio
7.0
Working Capital* (in Rs. Crs)
Working Capital Days*
171
135
178
136
114
104
3.0
2.7
4.0
81
88
FY20
FY21
FY22
FY23
FY20
FY21
FY22
FY23
FY20
FY21
FY22
FY23
^ ROCE calculated excl. CWIP & Capital advances *For WC; Debtors & Inventory calculated on Sales & Creditors on COGS
15
About Tarsons
Tarsons – at a Glance
One of the leading Indian labware company engaged in the designing, development, manufacturing and marketing of consumables, reusables and others (including benchtop equipment & instruments)
Products used in laboratories across research organizations, academia institutes, pharmaceutical companies, CROs, diagnostic companies and hospitals
39+ years of experience in the life sciences industry delivering trusted high-quality products.
Robust market share in the highly fragmented Indian labware market*
Diversified product portfolio with 1,700+ SKUs across 300 product segment
5 vertically integrated manufacturing facilities in West Bengal
Pan-India distribution network with long-standing relationships with the distributors
One of the few players in India to have a global reach# in the labware market with 45+ authorized distributors & partners supplying products to over 40 countries
*Approximately 9-12% as per Frost & Sullivan Industry Report 2021 #As per Frost & Sullivan Industry Report 2021
17
Our Journey
Incorporation of TPL with manufacturing of reusable plastic products
Expanded product line by initiating manufacturing of Centrifuge Tubes
Became an ISO 9001 certified manufacturing entity
Obtained ISO 13485:2016/NS- EN certificate for manufacturing facility
Acquired 5 acres of land in Panchla & 6 acres of land in Amta to develop another facility for capacity expansion, introduction of new product lines, backward integration & fulfillment center
Got listed on Stock Exchanges
1983
1984
1987
2002
2009
2012
2018
2019
2021- 2022
Commenced production of Pipette Tips, thereby creating a high-quality import substitute
Pioneered the first fully robotic clean room plant for manufacturing molecular biology consumables
Setup manufacturing facility expanding into production of fully automatic centrifuge tubes, and cryogenic vials in Dhulagarh
Set up line for PCR products in Jalan Industrial Complex at Jangalpur
Leading Indian Labware Supplier
Trusted Brand for high quality products in the plastic labware market with 39+ years vintage in the industry
Expertise in production of a wide range of labware products & amongst the top 3 players with a robust market share*
Ability to offer differentiated, user friendly, reliable quality & cost-effective products has enabled strong brand recognition & customer loyalty
Individual product brands like Maxipense, Spinwin, Cryochill are well- recognized by the scientific community
Pioneered the first fully automated plant for manufacturing molecular biology consumables
In-house engineering team driving innovation & ensuring exceptional liquid handling performance across the liquid handling products
Source*: As per Frost & Sullivan Industry Report 2021
19
Our Competitive Edge
Geographical Presence Wide geographic reach through a strong sales & distribution network
03
04
State of Art Facilities Well-equipped and advanced automation driven manufacturing facilities
02
Diversified Customers Long-standing relationships with a diverse set of key end-customers
01
Brand & Quality Leading Indian supplier to the life sciences sector with strong brand recognition and high- quality diversified products across varied customer segments.
Experienced Management Team Experienced promoter supported by a highly competent management team and backed by board of directors comprising of industry veterans
Financial Stability Financial track record with efficient capital allocation & streamlined operations ensuring consistent high profitability
05
06
20
Catering to diversified End User Industry…
Academic Institutes & Research Organization
National Centre for Biological Sciences
Indian Institute of Chemical Technology
Rain Forest Research Institute
KIIT University
Pharmaceutical Industry
Dr. Reddy's Laboratories Limited
Enzene Biosciences Limited
Contract Research Organization
Syngene International Limited
Veeda Clinical Research Limited
TCG Lifesciences Private Limited
Diagnostics Industry
Dr Lal Pathlabs Limited
Metropolis Healthcare Limited
Molbio Diagnostics Private Limited
Agappe Diagnostics Limited
Mylab Lifesolutions Private Limited
Toei Kaisha
Exports Market
Avantor, Inc
FC-BIOS SDN BHD
iCell INC
Toei Kaisha Limited
1
2
3
4
5
6
Measures to strengthen customer relations
Regular Feedback from Customers on quality, delivery & cost
Maintaining leading industry & Regulatory Compliance Standards
Product Customization as per the customer’s specific needs
Adherence to Quality standards & Safety Protocols in place
Wide Range of Products
50-member Sales Team with deeply entrenched relationships
21
Our State-of-the-art Manufacturing Facilities…
Land Area (in sq. mts.)
Ownership
Mfg Revenue Contribution (FY23)
530
1,022
515
15,142
4,047
21,550
24,280
Leased
Leased
Leased
Owned
Leased
Owned
Owned
5.04%
7.18%
3.38%
62.12%
22.27%
-
-
Units
Burroshibtolla I
Burroshibtolla II
Kasba
Jangalpur
Dhulagarh
Panchla
Amta
Upcoming Facility
Key Highlights of the High Precision Manufacturing Process
✓ Vertically integrated manufacturing capabilities with design
& development being carried out in-house
✓ Automated manufacturing with use of robotics & other technologies developed in collaboration with overseas partners
✓ Production process free from human touch & thus helps to achieve the desired levels of purity required for use in life sciences products
✓ Manufactured in clean aseptic environment;
manufacturing process is carried out in fully-validated & 3rd-party certified ISO 8 clean rooms
✓ Quality Certifications: ISO & CE certifications
✓ In Amta, West Bengal, the Company is expanding in some
key products and developing a new fulfillment center with in-house sterilization capability
✓ Company is expanding into new product categories and capacity expansion at upcoming production facility in Panchla, West Bengal
22
…with widespread Domestic Sales & Distribution network…
Comprehensive Pan-India Distribution Network
Long-standing relationships with Distributors
North: 17% of FY23 Domestic Sales 41 Distributors
East: 16% of FY23 Domestic Sales 39 Distributors
West: 25% of FY23 Domestic Sales 20 Distributors
South: 43% of FY23 Domestic Sales 38 Distributors
Data as on FY23
All Maps used in the presentation are not to scale. All data, information, and maps are provided "as is" without warranty or any representation of accuracy, timeliness or completeness
23
…with huge underlying Export Market Potential…
Huge Export Opportunity Market
One of the very few players to have a Global Reach
Demand for plasticware expected to grow at 10% CAGR for developing markets like APAC & MEA, developed markets like Americas & Europe also expected to grow healthy
✓ As of 31st March 2023, the company sold its products to 40+ countries via 45+
distributors
✓ Export operations are a blend of branded and ODM sales
✓ Under the ODM model, the product is independently designed & developed by the
company as per the requirements given & then sold to the respective brand owners
Factors such as supplier reliability, cultivating new relationships, deepening existing relationships and meeting demands in timely manner will enhance the export market share
Rapid increase in demand for plasticware is providing platform for Indian players to expand share of export revenues while continuing import substitution at home
Export Revenue (INR mn)
Export Revenue Break-up (%)
924
FY19
FY23
480
35%
37%
65%
63%
Established Indian players can further expand export market share on back 0 of high-quality & reliable products with 4 enhanced R&D and independent design & customization capabilities
Domestic companies in India can take advantage of their competitive pricing 0 in order to capture larger share of global market 3
FY19
FY23
Branded
ODM
Key Overseas Clients (ODM Sales)
Toei Kaisha
24
…offering Wide Range of High-Quality Products…
Our products are made from high-quality medical grade DMF registered resins which are selected to minimize additives & reduce potential leachables
Consumables
56% of FY23 Revenues
• Portfolio of products under this category
include: • Centrifuge ware • Cryogenic ware (tubes & accessories) • PCR consumables (tubes, plates, and
strips) • Petri dish • Pipettes
Reusables
39% of FY23 Revenues
• Portfolio of products under this category
include: • Bottles & Carboys • Beakers • Measuring cylinders • Racks • Others (jars, desiccators etc.) • High quality standards maintained to
ensure the products are leakage proof through specially designed lip-sealing geometry
Others
5% of FY23 Revenues
• Products under this category includes benchtop instrumentation such as:
• Vortex shakers • Centrifuges • Pipettors
• These products enable molecular works of
cell collection, extraction, simple spin-down and f-tube separation
Offering a Wide Range of Products enabling its end-customers to source most of their product needs from a Single Source
25
…diversified product portfolio of Plastic Labware
Pipette Tips
Centrifuge Tubes
Petri Dishes
Sterile Media Bottles
Cryo Vials
Storage Vials
Serological Pipette
in Mostly used for research work transferring small volume of liquids with high precision
for
Perfect versatile for applications, these are storage, used spinning & separation of colloidal solution
down
• Mostly used in culture of & microbes sensitivity assays
• Used once & discarded which optimizes time consumed in washing and sterilizing
Suited to preparation & containment of buffers, cultures or prolonged storage of pH sensitive liquids such as culture media
Used for storage of biological materials at temperatures as low (vapour as phase liquid nitrogen) to 121°C
-196°C of
Bottles
Carboys
Beakers
Cylinders
Designed for use with samples from -80°C to 121°C. Used for storage PCR reagents, enzymes & other diagnostics, biochemical reagents or samples
of
pipettes Disposable culture, for tissue and microbiological various research applications. Certified DNase, RNase, and Pyrogen free
Benchtop Instruments
• Used
for
containment, protection and transportation of various kinds of reagents Leakproof, strong and durable
•
Used for media formulation and mixing, aseptic protocols, stirring and storage of intermediates
• Used for mixing; graduations are approximate and not intended for accurate liquid measurement Economical enough to discard after one use, or strong enough to reuse
•
Used to measure the volume of a chemicals, and solutions liquids, during daily lab work
• Wide
instrumentation
variety products which include vortex
benchtop shakers, centrifuges, pipettors Enable molecular works of cell collection, extraction, simple spin-down and f-tube separation
like
•
26
) s e l a S 3 2 Y F f o % 6 5 (
s e l b a m u s n o C
l
) s e a S 3 2 Y F f o % 4 4 (
s r e h t O & s e b a s u e R
l
Glimpse of our product portfolio & processes
Video link – Click here
Video link – Click here
Video link – Click here
Video link – Click here
Video link – Click here
For more information & videos please visit www.tarsons.com/video-new
27
Key Business Strategies
Key Business Strategies
• Focus on branding & promotion to enhance visibility in the labware industry to increase
brand awareness & loyalty
Enhance existing & expand product portfolio
• Manufacture New Products in the cell culture & robotic handled consumables and expand
into the import dominated markets of these products Leverage the advantage of “Make in India” and grow our domestic sales vis-à-vis exports
•
Enhance manufacturing capacities to leverage growth
• Expand manufacturing capacities in popular product categories like liquid handling, centrifuge
ware, & cryo ware through additional machines, moulds and ancillary infrastructure
• Acquired 5 acres of land to develop a new manufacturing facility in Panchla, West Bengal to
expand & enter into the new product segment comprising of cell culture
• Also, acquired 6 acres of land at Amta to develop fulfilment center, radiation facility and
manufacture few products
• Plans to export to ~120 countries in the next 5-10 years through the extensive experience and
proven track record of catering to overseas customers
• Two-pronged approach:
Increasing presence in overseas markets
• Branded sales targeting emerging markets such as Asia Pacific, Middle East and South America • ODM sales to supply products to developed markets such as USA and Europe
Maintain operational efficiency & profitability
•
Implemented strategic cost-saving and efficiency improvement processes such as advanced automation solutions to improve productivity which resulted in a ~26% PAT CAGR from FY20 to FY23
• Continue to invest in automation in order to avoid human error & consequently improve
throughput
28
Experienced Board of Director & Managerial Team
Sanjive Sehgal Chairman & Managing Director
• Chairman & Managing Director of Tarsons Product
Limited
• Has over 31 years of experience in the company
Rohan Sehgal Whole Time Director
• Whole-time Director of the company • Has over 8 years of experience working in the
company
Santosh Agarwal Chief Financial Officer & Company Secretary
• Qualified as a Chartered Accountant & Company
Secretary
• Has over 21 years of experience
Gaurav Podar Non-Executive Nominee Director
• Currently, Director with ADV Partners •
Investment professional with 11+ years of experience
Girish Vanvari Independent Director
•
Founder of Transaction Square – a Tax, Regulatory & Business Advisory Firm
• Qualified as a Chartered Accountant
Sucharita Basu Independent Director
• Co-founder AQUILAW • 21+ years of experience in commercial & corporate
agreements, capital markets & real estate
Viresh Oberai Independent Director
• 22+ years experience with Tata Steel • Conferred with “Udyog Rattan” award from Indian Economics
Society
29
Contribution towards Environmental, Social & Governance
Clean room conditions eliminates all chances of contamination
Productivity optimisation with use of high automation
Use of Medical Grade Plastics. Products are designed to withstand critical use
NO Hazardous materials consumed
NO litigations faced for pollution or degradation of environment over the past five years
NO impact of Climate change
Employee Welfare: Multi- pronged approach towards employee development.
Company has NOT witnessed any employee unrest / strikes or lockouts since inception
The Board has an optimum combination of Executive and Non- Executive directors
Company has Clean Track Record of Liability payments to various stakeholders
Some of the CSR activities has been directed towards TATA Cancer Hospital & Narayana Hrudayala
Regular Review & Updation of policies for change requirements.
Whistleblower policy implemented
30
Industry Update
Plastic Labware Market
Indian plastic labware market is expected to grow at 16% CAGR from 2020-2025
Split of Global Market Size of Plastic Labware (2020)
Global Laboratory Equipment Market Size (INR Bn)
Indian Laboratory Equipment Market Size (INR Bn)
1,131
589
1,437
969
34
26
24
12
FY20
FY25
FY20
FY25
Labware
Only Plasticware
▪ Expected increase in investments by various pharmaceutical majors to advance research
into various chronic diseases treatment
▪ COVID-19 pandemic has led to an increase in long term demand for laboratory
investigations, vaccine development activities and clinical trials
▪ Key growth drivers of the Indian market include:
Urbanization & growing middle class coupled with sedentary lifestyles are resulting in increasing incidence of chronic diseases which in turn drive healthcare research & demand for labware products
−
−
−
Certrifuge ware
14%
▪ Centrifuge & Liquid Handling market dominate the Laboratory equipment market
Liquid handling
26%
41%
PCR & Cell/ Tissue Culture
▪ The automated liquid handling market is anticipated to witness a significant market growth during the forecast period
6%
Bottles & Carboys
6% Cryoware
▪ PCR product segment has seen a strong growth lately due to high demand on account of the pandemic
Diagnostic Labs
Others 4%
24%
IVF Clinics
3%
11%
Academia/ Research
31%
▪ The Academia/Research and
Pharmaceutical segments contribute to majority of the end use making up ~60%
▪ With strong increase in outsourcing by
pharma companies, CROs are expected to grow strongly
▪ Diagnostic labs are expected to grow
at a robust pace on account of increasing awareness and need of testing
Highly underpenetrated healthcare sector provides significant room for growth
CROs
27%
Growth in pharmaceutical R&D outsourcing to India will serve as a huge catalyst for the labware space
Pharmaceutical
Source: As per Frost & Sullivan Industry Report 2021
32
Rapid Shift from Glassware to Plasticware in India
Indian Laboratory Equipment Market (Breakup of Glassware and Plasticware segments)
Market Size
INR 10.8 bn
INR 7.5 bn
INR 11.3 bn INR 12.2 bn
INR 8.4 bn
INR 25.8 bn
18.3
59.0%
41.0%
2015
23.5
48.0%
52.0%
2020
34.2
25.0%
75.0%
2025
Glassware Products
Plasticware Products
Key reasons for the shift:
▪ Increased Applicability: Superior ability to handle radioactive isotopes, hazardous & carcinogenic chemicals or substances ▪ Enhanced Safety: Inherent characteristics of plasticware including thermo-stability & safety of laboratory personnel in case of
accidents
▪ Less Contamination: Samples stored in glass containers are prone to contamination due to leaching of inorganic ions into
aqueous solutions or exposure to light in case of light-sensitive materials; thus, making plasticware a preferred choice vis-à-vis glassware
▪ Ease of Handling : Plastic Labware is significantly lighter in weight and much easier to handle over long hours than glassware ▪ Durability: Plastic equipment is unbreakable & has a longer shelf life as well allowing for better use & flexibility to scientists &
researchers
▪ Cost Effective: Plastic Labware is more cost effective than glassware
India Plasticware Laboratory Consumables Market by Product Type (INR mn)
India Plasticware Laboratory Reusables Market by Product Type (INRmn)
India Plasticware Laboratory PCR/Cell Culture Market by Product Type (INR mn)
71
3,279 332 1,253 1,622
2015
120
4,945
548 1,883
2,395
2020
10,050
247
1,167
3,698
4,938
2025F
1,132
49
1,083
2015
1,833 95 1,738
2020
3,161
133
3,028
2025F
Centrifuge Ware
Liquid Handling
Cryoware
Others
Bottles, Beakers, Flasks & Carboys
Others
3,105
257
2,848
2015
5,473 398 5,075
2020 PCR, Cell Culture
Others
12,544
825
11,719
2025F
▪ Centrifuge ware is largest segment within consumables with 48% market share ▪ Increased investments in life sciences sector including omics research, advanced healthcare, microbiology, drug development, and clinical diagnostics are key factors supporting higher usage of laboratory products
▪ India being a vaccine manufacturing hub is also a driving point for use of laboratory ware especially consumables for quality testing and approvals
▪ India being price sensitive country prefers plastic reusables as they have long shelf life in addition to being unbreakable and inexpensive as compared to glass
▪ Increase in automation in biotech & diagnostic labs will boost demand for
plasticware reusables where storage and machine handling requires products with better flexibility and dexterity
▪ Cell / Tissue Culture is high end, large & growing market in India with huge
potential for growth
▪ Increase in R&D in field of cell engineering is also expected to propel growth
of cell culture supplies market
▪ Stringent license and accreditation procedures involved with maintaining
cell cultures allow only specific companies to operate in the market
Source: As per Frost & Sullivan Industry Report 2021
33
Key Takeaways
Leading Indian manufacturer of labware with an established brand & focus on high-quality products
Presence in an industry with double- digit growth potential and multiple growth drivers
Long-standing relationships with 04 distributors catering to a diverse set of end-customers pan-India
Financial profile with ~45% EBITDA margins & high ROCE coupled with double-digit growth rates
Highly automated state-of-the-art manufacturing facilities churning out quality products
Well-placed to grow domestic & export business through launch of new products & capacity expansion
34
Thank You
Tarsons Products Limited
CIN: L51109WB1983PLC036510 Mr. Santosh Agarwal – Chief Financial Officer santosh@tarsons.in
Strategic Growth Advisors Private Limited
CIN: U74140MH2010PTC204285 Mr. Sagar Shroff/ Mr. Pratik Shah sagar.shroff@sgapl.net / p.s.shah@sgapl.net +91 98205 19303 / +91 98700 30585