BUSINESS OVERVIEW 

Amanta Healthcare is a pharmaceutical company engaged in the development, manufacturing, and marketing of a diverse range of sterile liquid products, primarily parenteral formulations. These products are packaged using advanced Aseptic Blow-Fill-Seal (ABFS) and Injection Stretch Blow Moulding (ISBM) technologies, ensuring the highest levels of sterility and product safety. The company manufactures both Large Volume Parenterals (LVPs) and Small Volume Parenterals (SVPs) across six therapeutic segments, along with a specialized range of medical devices.

The product portfolio includes fluid therapy (IV fluids), formulations, diluents, ophthalmic solutions, respiratory care products, and irrigation solutions within therapeutic categories, as well as medical device offerings such as irrigation solutions, first-aid formulations, and eye lubricants. A wide selection of closure systems—including nipple head, twist-off, leur-lock, and screw types—is offered, with container fill-volumes ranging from 2 ml to 1000 ml.

Products are marketed through three distinct business units: national sales, international sales, and product partnering with Indian and global pharmaceutical companies. The company has built a diverse generics portfolio of over 45 products, which are sold under its own brands in India through a strong distribution network of over 320 distributors and stockists. Internationally, products are exported to multiple geographies including Africa, Latin America, the UK, and other regions. By Fiscal 2025, branded products were exported to 21 countries, with registrations currently secured in 19 countries and compliance maintained with a broad spectrum of regulatory regimes.

The international sales division caters to both advanced and emerging markets, with a portfolio of 47 products registered across 120 international jurisdictions. The product partnering segment focuses on commercial large-scale manufacturing of generic products, including loan license manufacturing agreements for pharmaceutical partners. Strong relationships have been established across the Indian pharmaceutical industry, supported by collaborations with several key companies.

Formulation and development capabilities are a cornerstone of operations, enabling the creation of new formulations and the enhancement of existing ones for both in-house brands and partnering clients. A dedicated Formulation & Development (F&D) center and quality control laboratory are located at the manufacturing facility in Hariyala, District Kheda, Gujarat.

The manufacturing infrastructure comprises four LVP production lines—two using conventional single-port ABFS technology and two producing SteriPort products via ISBM technology—as well as three SVP lines, including two ABFS-based lines and one conventional three-piece container filling line. The facility is certified for Good Manufacturing Practices (GMP) by the Food & Drugs Control Administration, Gujarat, in alignment with the World Health Organization (WHO) guidelines, and also holds GMP accreditations from regulators in Cambodia, Sudan, Philippines, and Zimbabwe. Additionally, a DNV certification has been obtained for medical device exports.

The company’s cGMP-compliant capabilities allow manufacturing of a broad spectrum of sterile liquid products across therapeutic categories such as quinolones, antibiotics, antifungals, diuretics, anti-anaerobics, ophthalmic formulations, and respiratory care solutions.

As of March 31, 2025, the company employed a total of 1,718 personnel, including 506 full-time employees and 1,166 personnel on a contractual-basis, 20 personnel in security, 6 trainees and 20 apprentice across the business. The Banker to the company is Axis Bank Limited.

INDUSTRY ANALYSIS

Overview of Healthcare Spending

Global healthcare expenditure witnessed a significant surge in 2021, reaching 10.3% of global GDP (~$9.8 trillion). This rise was driven by the pandemic-led prioritization of public health, advancements in medical facilities, progress in medicine, and rising disposable incomes. Developed economies such as the US (17.4%), Germany (12.9%), and UK (12.4%) reported high current healthcare expenditure (CHE) as a percentage of GDP.

In contrast, India’s CHE stood at just 3.3% of GDP in 2021, trailing not only developed economies but also several developing nations like Brazil, Nepal, Singapore, Sri Lanka, Malaysia, and Thailand. However, India did witness an improvement post-Covid, with healthcare expenditure rising by nearly 3 percentage points, reflecting a stronger focus on healthcare. Globally, most countries also recorded an uptick in CHE-to-GDP ratios during this period, with the US, UK, and Canada seeing increases of 2.2, 2.1, and 2.0 percentage points, respectively. While ratios moderated in 2021, they still remained higher than the pre-Covid (2017–2019) averages.

Pharmaceutical expenditure forms a key component of healthcare spending. In India, pharmaceutical expenditure accounted for ~21% of healthcare spending in 2020. This trend of higher pharmaceutical spending relative to total healthcare expenditure is more common in emerging economies compared to developed markets. For instance, in 2021, Egypt (29.5%) and Mexico (22.1%) recorded higher shares, while India’s 21% was well above countries like the US, UK, and Germany. The rising cost of novel drugs, many of which offer treatments for conditions previously considered incurable, continues to exert pressure on healthcare budgets.

Personal healthcare expenditure in India also reflects this trend. It grew from ₹1,813 billion in FY12 to ₹4,354 billion in FY23, supported by government schemes, state-level health spending, rising income levels, and a higher incidence of diseases. In constant prices, healthcare expenditure recorded an ~6% CAGR between FY12 and FY23. Notably, health expenditure as a percentage of total PFCE (Private Final Consumption Expenditure) rose to 4.7% in FY21 due to the pandemic and has remained relatively steady since then.

Indian Domestic Formulation Market

The Indian domestic formulation industry is broadly divided into chronic and acute therapies. By FY24, chronic therapies accounted for 53% of the market, while acute therapies represented the remaining 47%.

Within the chronic segment, anti-diabetic (~9%) and cardiovascular (~13%) therapies dominate, together contributing nearly one-fourth of the overall market. The growing prevalence of lifestyle-related diseases such as diabetes and cardiovascular disorders, driven by sedentary habits and poor dietary practices, has accelerated demand in these segments. Chronic portfolios have expanded rapidly in recent years, with anti-diabetic drugs emerging as one of the fastest-growing categories. Chronic therapies also provide higher margins for pharmaceutical companies due to long treatment durations and sustained prescription demand, often involving multi-drug regimens.

The acute segment, on the other hand, is led by anti-infectives, gastro-intestinal medicines, and pain and analgesics. While important, growth in acute therapies is expected to trail that of chronic therapies. Between FY24 and FY29, chronic therapies are projected to grow at a CAGR of 8.5–9.5%, compared to 7.0–8.0% for acute therapies.

Growth Drivers for the Industry

India’s changing demographic profile plays a critical role in shaping healthcare demand. Life expectancy is improving, and the share of the elderly population is on the rise. From 8% in 2011, the population aged 60 years or more is projected to reach 11% by 2026 and 13% by 2031. According to the UNFPA Report on Status of Elderly (2023), chronic ailments such as arthritis, hypertension, diabetes, asthma, and heart diseases are widespread, with over 30% of elderly women and 28% of men suffering from at least one chronic condition, and nearly a quarter dealing with multiple morbidities.

India’s population, expected to reach ~1.4 billion by 2026, highlights the massive scale of healthcare service requirements. The rise in non-communicable diseases has further shifted the country’s disease profile. Data from the World Health Organization shows an increase in disability-adjusted life years lost due to cancer, cardiovascular ailments, diabetes, and mental disorders between 2009 and 2019, even as life years lost to communicable diseases like diarrhoea, tuberculosis, and respiratory infections declined.

The chronic therapies segment is therefore positioned for sustained expansion, supported by urbanization, better healthcare awareness, improved diagnostic infrastructure, and higher disease detection rates. Acute therapies, while growing at a slower pace, will continue to be supported by demand in gastro-intestinal and nutraceuticals.

Overview and Outlook of Indian Pharmaceutical Formulation Exports

The Indian pharmaceutical formulation exports market has been undergoing steady expansion, with new product launches, complex generics, and specialty drugs expected to drive growth over the medium term. After flat growth in FY22 due to a high base, formulation exports rose by ~4.5% in FY23. Despite persistent pricing pressure in the US, India’s largest export destination, strong demand from European markets helped cushion the impact.

In FY24, India exported USD 12.3 billion worth of formulations to regulated markets, with the US alone contributing ~66%. India’s share in global exports remains lower in value terms since it primarily focuses on trade generics and branded generics, though the country has successfully captured opportunities created by patent expiries in the US. Europe also remains a major destination, accounting for ~24% of total regulated market exports.

To semi-regulated markets, India exported USD 10.1 billion worth of formulations in FY24, with Africa holding the largest share, followed by Asia, Russia, and Latin America. Growth in these geographies is largely volume-driven, supported by rising accessibility to healthcare and entry into newer markets. India’s share in exports to semi-regulated regions has consistently improved. Looking ahead, complex and specialty drugs and approvals for limited-competition molecules are expected to accelerate revenues. While pricing pressure in generics persists, it is expected to ease in the near-to-medium term. The USFDA’s regulatory oversight remains a key monitorable, but overall, formulation exports are projected to register 6–8% growth in FY25, supported by recovery in the US, Africa, and Latin America.

Indian Injectables Market

Injectables represent the second-largest dosage form in India’s domestic formulation market, with a share of ~13% as of FY24. Their importance has grown in recent years due to the invention of newer drug delivery systems and the development of complex injectables. Indian pharma companies are increasingly investing in innovative molecules within this segment.

The Indian injectables market expanded from ₹192 billion in FY19 to ₹272 billion in FY24, registering a 7.2% CAGR. It is now expected to grow at 7.5–8.5% CAGR between FY24–FY29, reaching ₹375–400 billion by FY29.

IV Fluids Industry

IV fluids have become a crucial part of hospital treatments, spanning routine hydration and electrolyte balance to emergency care and advanced therapies like nutrient delivery and medication administration. With greater awareness and access to healthcare, demand for IV fluids in hospitals and clinics has grown substantially.

The Indian IV fluids market was valued at ₹45–47 billion in FY24, up from ₹29 billion in FY19, supported by factors such as rising population, increasing chronic disease prevalence, and growing hospital-based treatments. Over FY24–FY29, the segment is expected to grow at a CAGR of 9–11%, reaching ₹70–80 billion.

Parenteral Products in India

Parenteral products, which include sterile solutions administered via injection, infusion, or implantation, are a vital segment of the injectables market. These are classified into large-volume parenterals (LVPs), typically above 100 ml and used for infusions like electrolytes and nutrient solutions, and small-volume parenterals (SVPs), under 100 ml, which include products like ophthalmics, respiratory care formulations, water for injections, and emulsion-based therapies.

The importance of SVPs is rising in India, given their application in therapeutic as well as non-therapeutic categories such as eye irrigation and over-the-counter ophthalmic solutions. Parenterals are especially critical where oral administration is unsuitable, ensuring rapid drug absorption and faster therapeutic action.

Healthcare Delivery Market in India

The Indian healthcare delivery industry has been expanding rapidly, reaching a value of ~₹6.3 trillion in FY24. Growth has been fueled by a return to regular treatments, increased surgeries, inpatient care, and a rise in average revenue per occupied bed (ARPOB). The sector is projected to touch ₹9.4–9.8 trillion by FY28.

Medical Tourism in India

Medical value travel (MVT), commonly known as medical tourism, has positioned India as a preferred global healthcare destination, owing to affordable critical care and surgeries, along with access to world-class hospitals and specialized doctors. Neighboring countries like Bangladesh, Nepal, and Bhutan contribute significantly to India’s medical tourism inflows, with Eastern India serving as a hub for patients from these regions.

According to the Ministry of Tourism, medical tourists accounted for just 2.2% (0.11 million) of foreign arrivals in 2009, rising to 6.4% (0.62 million) in 2019. Although numbers declined sharply in 2020 due to pandemic-related restrictions, arrivals rebounded to 0.63 million in 2023, highlighting strong recovery in this segment.

BUSINESS STRENGTHS

1. Well-Established Pharmaceutical Manufacturer with a Diversified Portfolio
Incorporated in 1994, Amanta Healthcare has evolved into a leading manufacturer of pharmaceutical formulations with a diverse product portfolio across six therapeutic segments: fluid therapy, formulations, diluents, ophthalmic, respiratory care, and irrigation solutions. The company offers multiple closure systems such as nipple head, twist-off, leur-lock, and screw types, along with container fill-volumes ranging from 2 ml to 1000 ml. As of the date of the Red Herring Prospectus, the company had 47 products registered across 120 international jurisdictions, ensuring consistency and sustainability in business operations.

2. Robust Manufacturing Capabilities
Amanta Healthcare operates a state-of-the-art manufacturing facility spread across 66,852 sq. meters in Hariyala, District Kheda, Gujarat. The facility houses two manufacturing blocks, utility blocks, centralized QA/QC, and administrative offices. With four LVP manufacturing lines (two conventional single-port containers with ABFS technology and two SteriPort lines with ISBM technology) and three SVP lines (two ABFS and one conventional three-piece filling line), the company has the capacity to manufacture sterile liquid formulations with fill volumes ranging from 2 ml to 1000 ml at a single location.

The facility follows RO/RO configuration for water systems and holds prestigious accreditations, including ISO 9001:2015, ISO 13485:2016, ISO 14001:2015, ISO 45001:2018, and WHO-GMP certifications. This infrastructure enables the company to expand product ranges, adapt product mix as per market demand, and scale from laboratory research to full commercial production.

3. Strong Domestic and International Distribution Network
The company maintains a robust sales, marketing, and distribution network in India, comprising over 320 distributors/stockists supported by a dedicated sales team of 96 professionals. Products are primarily distributed through these networks to hospitals, nursing homes, and healthcare facilities.

Advanced digital integration supports the distribution system, including Pharma Cloud software for sales and distribution transactions, demand planning, and forecasting, along with sales force automation tools that enhance productivity, workflow efficiency, and risk control.

4. Experienced Leadership and Skilled Workforce
Amanta Healthcare is spearheaded by Promoter, Chairman, and Managing Director Bhavesh Patel, who has over 30 years of industry experience in pharmaceutical manufacturing and marketing. The senior management team comprises professionals with graduate and post-graduate qualifications in accounts, science, and pharmacy, bringing extensive knowledge of the industry.

The company is further supported by a technically qualified workforce of over 506 employees as of March 31, 2025, including highly skilled scientists and professionals. This strong human capital provides a significant competitive edge in innovation, product differentiation, and global expansion.

BUSINESS STRATEGIES

1. Expansion of Manufacturing Capacities
Amanta Healthcare currently operates four LVP manufacturing lines—two conventional single-port container lines with ABFS technology and two SteriPort product lines with ISBM technology. Additionally, three SVP manufacturing lines are in operation, consisting of two ABFS lines and one conventional three-piece container filling line.
The company manufactures LVPs and SVPs across six therapeutic segments, categorized into three product groups:

1. Large Volume Parenteral (Single Port, Nipple Head)

2. SteriPort (Two Ports)

3. Small Volume Parenteral (SVP)

The margin profile ranges from 20% to over 60% depending on the product category. With increasing demand and current supply shortages in LVP and SVP segments, the company intends to expand manufacturing capacity to strengthen its product portfolio and capture additional market share.

2. National Sales Business
The National Sales division consists of branded and generic products.

• Branded products are marketed under the ‘SteriPort’ brand in India.

• Generic products are developed, manufactured, and distributed domestically as well as internationally.

The branded generics portfolio was launched to capitalize on India’s unmet demand for affordable and quality medicines, offering multiple dosage forms such as injectables, ophthalmic solutions, and irrigation products.

3. Expansion of National Sales Network
Amanta Healthcare aims to strengthen the national distribution network through the SteriPort brand, supported by a network of 320 distributors and stockists across India. The strategy includes:

• Expanding geographic reach by adding new distributors and retailers.

• Deploying sales and marketing teams to enhance distributor, stockist, and retailer engagement.

• Introducing target-based incentive schemes to increase distributor sales.

• Attracting new retailers through continuous engagement and brand visibility.

4. Expanding Customer Relationships & Wallet Share
The company focuses on deepening engagement with existing customers while developing new relationships by:

• Increasing formulation offerings for existing clients through in-house R&D and large-scale manufacturing.

• Expanding the product portfolio into new products and complex dosage forms.

• Leveraging long-standing customer relationships and timely delivery to establish itself as a preferred supplier.

• Driving business growth through formulation and development expertise, which enabled the commercialized product portfolio to expand from 41 products in FY 2023 to 47 products in FY 2025.

5. Strengthening Sales & Marketing Capabilities
The company operates with a sales and marketing team of 96 personnel (as of March 31, 2025), based in Ahmedabad, Gujarat. Additionally, a dedicated team of five personnel supports international sales.
The strategy emphasizes:

• Building customer trust through a strong reputation and reliable brand presence.

• Using formulation and development strengths to attract new customers and introduce innovative products.

• Expanding across all Strategic Business Units (SBUs) to maximize customer outreach.

BUSINESS RISK FACTORS & CONCERNS

1. Single Manufacturing Facility Concentration
Amanta Healthcare’s entire manufacturing operations are concentrated at a single facility located in village Hariyala, district Kheda, Gujarat. Any delay in production or shutdown due to factors such as shortage of electrical power or water resources, political instability, industrial accidents, machinery breakdowns, severe weather, natural disasters, or infectious disease outbreaks may significantly affect business continuity, financial condition, and operational results. Since all products are manufactured at this single location, exposure to regional disruptions and economic shifts is heightened. Although no financial impact from such disruptions has been recorded during Fiscal 2023, Fiscal 2024, and Fiscal 2025, any large-scale civil or political unrest, policy changes, or workforce disputes such as strikes or trade union activity could materially impact operations and financial performance.

2. Dependence on Limited Raw Material Suppliers
The company relies on limited suppliers for essential raw materials such as Low Density Polyethylene (LDPE) and Polypropylene (PP) granules. Price volatility of these materials, closely linked to fluctuations in crude oil prices, may have a direct impact on costs and profitability. Loss of suppliers or major changes in raw material pricing could adversely affect financial performance.

3. Significant Exposure to Imports
A substantial portion of plastic granules, a key packing material, is imported. This reliance exposes the business to risks such as import duties, regulatory restrictions, foreign currency fluctuations, and global commodity price movements. While the company is not dependent on any single manufacturer, any restriction on imports, sharp price increases, or concerns about quality may result in difficulties in securing alternative suppliers, additional testing expenses, or liability-related costs. Although no significant raw material cost escalation has been recorded in the past three fiscals, the possibility remains a key operational risk.

Summary :
Amanta Healthcare’s business risks primarily stem from operational concentration at a single manufacturing facility and dependence on limited suppliers and imported raw materials. Regional disruptions, global crude oil price volatility, foreign exchange fluctuations, and regulatory restrictions could materially impact production, costs, and overall financial performance.