JHS eyes European customers

JHS Svendgaard Laboratories , the dental and oral healthcare products manufacturing major, is looking at a collaboration with companies in Italy or Switzerland to access European consumers.

At present, JHS Svendgaard's main export markets are USA and West Asia, with a minor exports to Africa and Europe.

The company exported goods worth Rs 16.8 crore last year.

Post collaboration, the company would be able to use JHS Svendgaard's facilities to manufacture some of their products in India to reduce costs.

While JHS would benefit from the European company's better technological base as well as make use of the company's established distribution chain, said Nikhil Nanda, managing director, JHS Svendgaard Laboratories Limited.

"The Swiss company that we are talking to has a revenue stream of $250 million per annum while the Italian company is about $100 million per annum," said Nanda.

JHS Svengaard is also looking at a minimum 50 per cent growth year on year (YOY) and a 100 per cent growth in last quarter on QOQ basis.

"We are looking at a turnover of close to Rs 45 crore end of this fiscal," informed Nanda.

The company would also be shipping from January an additional 25 per cent in volume terms its export shipments to world's top retailers.

JHS Svengaard is also increasing capacity of its existing export oriented unit (EOU) at Noida, at an estimated Rs 51 crore.

Post-expansion, annual installed capacities of toothbrushes is expected to increase from the present 40 million units to 116 million units, toothpaste from the present 450 tonnes to 2,700 tonnes, denture cleaning tablets from the present 5 million units to 180 million units, and other oral care products from the present 60,000 litres to 5,00,000 litres.

The company posted net profit of Rs 4 crore on sales of Rs 36 crore last year.

Speaking about the slowdown in the USA, Nanda said it would have a positive impact on JHS Svengaard as even the established retailers would try to move their sourcing base to India and other low cost destinations.