Mumbai

Hester Biosciences (HBL), a leading animal health care company, is expanding its footprint in Nepal and Africa to tap the growing vaccine market in the regions.

“We are setting up a JV unit in Nepal to manufacture Nigerian strain PPR and other animal vaccines. The manufacturing of this vaccine is banned in India because of the risks of accidentally introducing Nigerian strain in India. The USD 6.40 million project is delayed due to earthquake in Nepal is now expected to start commercial production in January 2016,” Hester Biosciences CEO and managing Director Rajiv Gandhi told PTI.

PPR, known as sheep and goat plague, is a contagious viral disease affecting small ruminants. Anticipating the global demand of PPR on account of PPR eradication, the company has setup the plant in Nepal, which can generate annual sales of around Rs 55-60 crore operating at full capacity, Gandhi said.

The focus on African and West Asia market will help it to scale up exports from present Rs 5 crore to Rs 100 crore in the next five years period.

The company is also looking at setting up of animal vaccine unit in Africa at an estimated cost of around Rs 80-90 crore, Gandhi said, adding that the decision to set up this unit will be taken in next six months period.

HBL has already invested in a distribution network in Botswana and is also creating depots in Nairobi, Kenya, Tanzania and Ethiopia. HBL has appointed distribution in various countries mainly in Southern part of Africa as well as Eastern Africa to tap the growing opportunity, Gandhi added.

Commenting on domestic market, Gandhi said, the animal health market size is estimated at USD 450 million and is growing at 10 per cent per annum.

The company has a manufacturing facility unit at Mehsana in Gujarat. The company’s product portfolio comprises of over 50 vaccines and over 35 health products, which are distributed through Hester’s pan-India distribution network.

The company is now expanding the capacity by investing Rs 25 crore and investing around Rs 2.5 crore annually in R&D facility.

Hester Biosciences has clocked a turnover of Rs 90 crore in 2014-15. Despite the de-growth this year, the company hopes to register 15 per cent growth in FY 16 of expects to increase turnover to Rs 500 crore by FY18, Gandhi said.

PTI