Blue Jet Healthcare IPO

Large Manufacturer: Blue Jet Healthcare is a large manufacturer of contrast media intermediates in India, with over 20 years experience in this segment. They supply critical ingredients to three of the largest contrast media manufacturers in the world, including GE Healthcare AS, Guerbet Group, and Bracco Imaging.

Niche Segment : Blue Jet Healthcare strategically focuses on complex chemistry categories in both the contrast media intermediate and high-intensity sweetener categories with high barriers to entry.

Long-standing Relationships: They have strong relationships with customers. They enter into annual and multi-year supply contracts providing strong predictability of order book revenue, and cashflow. More than 70% of our total sales is backed by annual or multi year contracts.

R&D Capability: They have a strong in-house govt recognised R&D centre. Over the past 50 years, they have developed over 100 products, with over 40 products commercialized.

Manufacturing Facilities: They have 3 manufacturing facilities in Maharashtra. These facilities have received accreditation from various regulatory agencies. In particular, one facility has been subject to US-FDA inspections in the FY 2018, and it received the USFDA establishment inspection report.

Geographic Concentration: They are dependent on Europe and the United States, which are regulated markets, for a significant portion of our revenue from operations. Any change in regulation can impact business.

Raw Material Sourcing: They depend on a limited number of raw material suppliers and three largest suppliers are located in China, Norway and India. Any delay or interruption in the supply or transportation of raw materials or cost increase can impact operations.

Foreign Exchange Risk: A significant portion of their total revenue from operations is denominated in currencies other than Indian Rupees, which exposes the business to forex fluctuation risk.

Government Regulations: Pharma industry is subject to extensive government regulations and if they fail to obtain or renew the required statutory licenses, permits and approvals, the business and cash flows may be adversely affected.