Page 34 - FBL AR 2019-20

Fermenta Biotech Limited
Annual Report 2019-20

S TR ATEGIC O u TL OOK
Our performance ambition:

Profitable and sustainable

business growth

6 ways in which
Fermenta intends to enhance shareholder value

Global alliances and Backward Capacity
acquisitions integration expansion

Fermenta established a subsidiary Fermenta implemented backward Fermenta entered into a 99-year lease
in Germany to enter into a contract integration into the manufacture of to acquire about 40,000 sq mtrs of land
manufacturing relationship with a cholesterol in the FY 2019-20. The from the GIDC Authority in Ankleshwar
European manufacturer specialising Company uses cholesterol as a Key (Sayakha). The Company intends to
in Vitamin D3 technology. Fermenta is Starting Material to manufacture its commence manufacturing in the
also open for acquisition opportunities primary product Vitamin D. foreseeable future.
in the nutraceutical API space. It Impact: The investment will result in Impact: The new facility will focus on
has conceived global alliances with increased self-reliance and mitigation capacity expansion of existing products
strategic business partners to create a of supply side risks. and nutraceuticals
robust and sustainable future.
Impact: Asset light product
outsourcing arrangement

Disruptive Leveraging post- Customer-driven
innovations amalgamation assets product and service
to finance growth
The Company’s R&D pipeline is set to The Company intends to build a
widen its product mix by leveraging The market value of real estate owned product portfolio around consumer
on existing strengths in the VMS by the Company is estimated at over demand and provide high-quality
and related segments. The division H500 crores, representing a large ingredients with delivery excellence
is addressing the growing global portion of the Company’s market to a valued clientele, emerging as not
consumption of Vitamin D3 in human valuation. just a supplier but a strategic long-term
and animal feed applications. Impact: The asset value will be partner.
Impact: The Company expects to monetised and proceeds utilised for Impact: The Company aims to increase
diversify its presence in the food the core business its offerings and leverage long-standing
segment and address the growing relationships with customers
dietary and nutritional supplements
market

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