Shasun Drugs: Strengthening presence

ANALYSTS' CORNER

Quantum Securities report states that Shasun Chemicals & Drugs, a company engaged in the business of manufacturing APIs, has a strong presence in the bulk space in the anti-inflammatory and anti-ulcerative therapeutic groups. Shasun is also rapidly expanding its presence in the contract research & manufacturing and custom synthesis space.

Shasun derives approximately 86 per cent of its revenues from three key products. Ibuprofen is the single largest contributor to the company's turnover and accounts for 50 per cent of revenues (Rs 160 crore).

With a capacity of 4500 tpa, the company is estimated to command a global market share of 25 per cent in the bulk space. Ranitidine accounted for 17 per cent of the company's turnover (Rs 55 crore) in FY05.

Shasun sells the penultimate stage of bulk Ranitidine to GSK Pharma and various other generic companies in Europe, Canada and USA. In FY05, the company was able to achieve a capacity utilization of 95 per cent. Shasun reported a 100 per cent sales growth in Nizatidine in FY05.

Wheels India: Wide product range

Quantum Securities report states that Wheels India, with its elaborate product portfolio, has garnered a 65 per cent market share in the domestic space.

The company's product range can be classified under wheels for heavy vehicles, light vehicles, agricultural applications, off-road construction equipment and air suspension systems.

The company is promoted by the TVS Group and has a production capacity of 71 lakh wheels per annum. Sales to commercial vehicles account for a major chunk of turnover.

Its competitors in the domestic market include Steels Strips and Wheels and Kalyani Lemmerz.

The company's exports grew by a sharp 56 per cent in FY05 to Rs 107 crore and accounted for 14 per cent of its turnover during the year. The growth was led by a robust demand for earth-mover wheels and tubeless truck wheels in the overseas market.

The company's clients in the export market include major players such as Caterpillar and Hyundai Heavy Industries. The management expects the export market to keep up the pace of growth. To service the growing market, the company set up a new EOU near Chennai.

Apollo Hospitals: Toning up network

Quantum Securities report shows that Apollo Hospitals Enterprise, one of the largest integrated healthcare companies operating in the private sector, has focused on disciplines such as cardiology, oncology, cardiac care medicine and emergency and trauma care.

It operates through 19 hospitals, including one in Sri Lanka and employs over 2600 doctors, 3600 nurses and 1300 paramedics.

The company plans to expand its hospital network. Planned expansion includes setting up seven First Med secondary care hospitals in areas having a population of 10 lakh and above.

The management believes that these hospitals will help enhance brand recognition and awareness of the secondary care healthcare services provided by the company. It would entail a capex of Rs 105 crore.

The company is involved in the business of operating hospitals and retail pharmacies, providing consultancy and clinical and diagnostic services.