Natco Pharma is expecting to garner about Rs 150 crore to ₹200 crore in revenue from the recently developed agrichemicals vertical.

“As per our expectation, the agribusiness should do about ₹150to ₹200 crore business in the next 12 months. Over a period of time, I believe that this business can grow to about ₹400 to ₹500 crore, with mostly branded India business driving it, and eventually the exports will also pick up,’‘ Rajeev Nannapaneni, Director and Chief Executive Officer, Natco Pharma, said. 

Positive outlook

According to Nannapaneni, the agro division of Hyderabad-based Natco was doing “very well.” The company had a little less than ₹10 crore in revenue in that division. “I think in the January to March quarter, and in the upcoming kharif season, we’ll do extremely well,” he added. 

This will be significant because five years ago, Natco’s revenue used to come from only a few products, including Tamiflu, Glatiramer, and Doxorubicin. The company is now broadening its reach in terms of products as well as markets to offset the decline in sales of some of these products. 

It has been focussing on the diversification of the product portfolio since a few years back almost 40-50 per cent of the revenue coming from the big one-time products. To overcome this, Natco built subsidiaries in Brazil and Canada to augment revenues from the Rest of the World (RoW) markets. 

“So essentially, if you look at that business, we have built back the same business that we had about five years ago with a more steady state of revenue, and on top of that, we have Revlimid. So I think it’s a very dramatic transformation,” Nannapaneni said in the earnings call.

Natco recorded consolidated total revenue of ₹513 crore for the third quarter ended December 31, 2022, as against ₹591 crore for the same period last year. On a consolidated basis, net profit for the period was ₹62.3 crore as against ₹80.4 crore for the same period last year.

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