Corporate Report

Published: Apr 30, 2022
Updated: Apr 30, 2022

Prevest Denpro

Exports to accelerate growth

“The demand for our products continues to grow over 30% currently and with our focus on brand promotion, increased sales and distribution network supported with the introduction of new products, it is expected to rise sharply in the coming times. Our expansion and modernization of the existing factory is progressing satisfactorily. Procurement of new high-tech equipment is being processed and other required infrastructural changes are also underway,” informs Atul Modi, Chairman & MD of Prevest Denpro (PDL). He adds,”Our R&D centre will be operational in Q1FY23.”

PDL’s existing manufacturing unit, spread over 27,000 sq ft, is located at Kartholi, Samba in Jammu & Kashmir. The company is on the verge of diversifying into manufacturing of new line of products that will include hygiene products (sanitizers and disinfectants), oral hygiene products (mouth washes and mouth rinses), oral care products (medicated oinments, gels and creams for dental treatment) and bio-materials (bone grafting materials and membranes). According to Mr Modi, this new manufacturing facility, spread over 16,000 sq ft adjacent to its current plant, is expected to be complete in Q1FY23 and should be fully operational by Q2FY23, subject to regulatory approvals.

Expressing his optimism for PDL, Mr. Modi says,”With the implementation of expansion of our existing business and diversification, we will be able to cater to dental professionals with a much larger product portfolio of over 100+ products covering all major segments of dentistry.” Giving an overview of the dental market, Mr Modi says, “As per the WHO data, globally 3.5 billion people are affected by oral diseases, including periodontal disease and oral cancer. Hence, the need for dental treatment is growing. Besides this, there is a growing demand for cosmetic dentistry which is another promising area of business for the dental industry. Therefore, I feel, this industry has a very bright future with steady and sustainable growth.”

HUGE MARKET

The global dental market was valued at $ 19.3 billion in 2020. This is expected to reach a valuation of $ 33.1 billion by 2028, registering a Prevest Denpro Exports to accelerate growth May 15, 2022 Corporate India 17 CAGR of 8.0%. More importantly, the costs of dental treatments have increased in developed countries like the US and Canada, and several patients have started moving for dental treatment to developing countries, including India.

The company is virtually debt-free with a debt ratio of 0.03. Against a small long-term borrowing of Rs 1.38 crore as of Dec 2021, it has a hefty bank balance of Rs 43.72 crore. The equity capital and reserves & surplus stand at Rs 12 crore and Rs 42.62 crore respectively.

EXPORTS BOOM

In FY21, exports had contributed 60.24% of the total revenue of Rs 25.48 crore. The growth in the export business is attributed to its entry into 5 new countries — Saudi Arabia, Colombia, The Netherlands, Malaysia and Senegal. The company is confident of maintaining this growth momentum in the coming years and is expecting to reach the revenue mark of around Rs 60-65 crore in the next two years.

PDL is the only company in India in dental manufacturing to receive an MDSAP certification. Explaining its advantages, Mr Modi says,”This opens the door for us in Canada, Brazil and Australia where we were not been able to export in the absence of this particular certification.”

Revealing the company’s export marketing strategy, Mr Modi explains that “after the receipt of MDSAP certification, we are planning to exhibit our products in important international trade fairs in Brazil, Canada and a few other counties to have a direct contact with potential customers to build our business at an easy and faster rate in these countries. We have already lined up our participation in four international exhibitions in 2023. The US, Canada and Saudi Arabia will contribute more to our next phase of growth in exports. They are very promising and high-priced markets. In fact, we are waiting for USFDA clearance for about 15 new products, which will make our existing product basket all the more stronger.”

Commenting on the company’s good profit margin track record, Mr. Modi says, “Our profit margins have been good, improving and sustainable because we have specialized and value added products, developed in-house during the last 20 years. Hence, we are maintaining this profitability consistently.”

PDL had come out with its SME IPO in September 2021 for 22,65,600 equity shares of Rs 10 each at Rs. 84 (including the premium of Rs 74) and is currently listed on the BSE-SME platform. The promoters hold a 73.60% stake.

While concluding, Mr Modi says that “with our own state-of-the-art research centre and our manufacturing units’ collaboration with various dental institutions, an eminent advisory board and newer innovative high-quality products to be introduced in the near future, our company is well on track to achieve its transformational goal.”