India's leading home-grown enzymes company, Advanced Enzymes Technologies (AETL) has clocked revenues of
180 crore during fiscal 2011-2012 as against previous year's revenue of
154 crore. Almost 60 percent of the company's business today comes from its sales to the pharma and nutritional sectors.
One of the significant developments for the company during the year was setting up of its facility in Indore to ramp up its production capabilities. C L Rathi, managing director, AETL, says “This plant will triple our capacity levels and fermentation capacity from will increase from 160 cubic meter to 400 cubic meter. The commendable part of this project is that, the entire process of setting up of this plant was done in-house by our own employees and we did not look at hiring external consultants.”
Earlier, a major chunk of AETL's business used to come from the domestic markets now that has changed. AETL is now focused on business from the international markets. This is because awareness towards the enzyme technology is more rampant in the international markets,” adds Rathi. The company is now looking at earning 70-80 percent of its total revenues from the international markets while the remaining 20-30 percent would be from the domestic markets.
For a considerable period of time, AETL concentrated its efforts on the US markets and it is now strengthening its presence in the European markets. “We are looking mainly at Western Europe which is Germany, Netherlands, Belgium, France and UK. We will look at the option of setting up 100 percent owned subsidiaries in Europe.” The company has already signed papers recently for setting up of an European subsidiary.
The company is looking at expanding into China too but Rathi believes that it would take some time as China is averse to importing enzymes. It is looking at setting up a subsidiaries in Malaysia and Africa as well.
The company is also embarking on the strategy of expanding its R&D base. AETL is currently developing a state-of-the-art research center in Mumbai. It has built a portfolio of over 50 enzymes so far. This portfolio consists of a wide range of carbohydrases, proteases and lipases.
Rathi is confident of registering 30-35 percent sales growth in the next few years and hopes to cross
1,000 crores in revenue by 2020.
||Key strategy initiatives
- Setting up of its facility in Indore. The plant will triple its capacity from 160 cubic meter to 400 cubic meter.
- Expanding its R&D base. AETL is currently developing a state-of-the-art research center in Mumbai.
- Sales of pharma and nutritional products account for 60 percent of its business.
- Maximum business came from exports with US market being the top contributor.
- Registers 16.9 percent growth.
- International business to contribute 70 percent of business.
- AETL concentrated its focus on the US markets but now it is also looking at tapping the European markets mainly West Europe.
- Target growth of 30-35 percent in the coming years is achievable.
- In the next 5-8 years, the company is looking at hitting the revenue figure of 1,000 crore.