BUSINESS OVERVIEW

Medistep Healthcare Limited was incorporated on June 05, 2023, as a public limited company under the Companies Act, 2013. It operates in the pharmaceutical industry, primarily engaged in the manufacturing of intimate products (sanitary pads) and nutraceutical products (energy powder), along with the trading and distribution of a diverse range of pharmaceutical, nutraceutical, surgical, and intimate care & hygiene products.

The company strategically expanded its operations through the acquisition of M/s MG Pharma, a proprietorship owned by promoter Ms. Prajapati Hetalben Girdharilal, via a business transfer agreement dated July 02, 2023. MG Pharma, established on July 05, 2018, was engaged in the trading and distribution of similar healthcare products. Post-acquisition, all assets and liabilities were transferred to Medistep Healthcare as a going concern.

Manufacturing commenced in January 2024, focusing on sanitary pads and energy powder.

The core business activities are:

• Manufacturing of sanitary pads and energy powder

• Trading and distribution of pharmaceuticals, nutraceuticals, surgical, and intimate care products

Medistep Healthcare serves the western region of India, especially Gujarat, acting as a supply chain consolidator between distributors and retail pharmacies, medical practitioners, and other healthcare facilities. Additionally, the company functions as a stockist, maintaining inventory to fulfill B2B orders from pharmacy stores, wholesalers, and medical professionals.

The distribution model focuses on logistics, inventory management, credit, and cost-effective delivery, essential for pharmaceutical manufacturers to reach target markets efficiently. Products comply with requisite safety standards, with ongoing efforts to expand the product line by adding complementary offerings.

As of July 20, 2025, there are total of 9 employees all of which are on payroll basis. The Banker to the company is ICICI Bank Limited.

INDUSTRY ANALYSIS

Indian Healthcare System: A Comprehensive Industry Analysis

India's healthcare sector has emerged as one of the largest and most dynamic industries, both in terms of revenue generation and employment opportunities. Encompassing a wide array of services—including hospitals, clinical trials, medical devices, telemedicine, outsourcing, medical tourism, and health insurance—the industry is witnessing rapid growth driven by expanding coverage, improved services, and increasing public and private expenditure.

The healthcare delivery landscape in India is divided between the public and private sectors. While the government predominantly operates Primary Healthcare Centers (PHCs) in rural areas and limited secondary and tertiary institutions in urban regions, the private sector dominates the space with the majority of secondary, tertiary, and quaternary care centers, concentrated in metros and Tier I/II cities.

India holds a global competitive edge due to its large base of well-trained medical professionals and cost-effective treatment options. Medical procedures in India cost roughly one-tenth of those in the US or Europe, making the country a top destination for medical tourism. Additionally, India's relatively low clinical research costs have made it a preferred hub for global R&D activities.

Market Size and Industry Growth

The Indian pharmaceutical industry is valued at approximately US$ 50 billion, with exports accounting for over US$ 25 billion, making India responsible for 20% of the global generic drug exports. The sector is poised to grow to US$ 65 billion by 2024, US$ 130 billion by 2030, and a projected US$ 450 billion by 2047.

In FY23, India’s hospital market was valued at US$ 98.98 billion and is expected to grow at a CAGR of 8%, reaching US$ 193.59 billion by FY32. The biotechnology sector, already the third-largest in the Asia-Pacific, held a valuation of US$ 137 billion in 2022 and targets US$ 300 billion by 2030.

India also plays a crucial role in Active Pharmaceutical Ingredients (APIs), producing over 500 APIs and contributing 57% to the WHO prequalified list. With an 8% global share, it ranks as the third-largest API producer worldwide.

The medical devices sector, currently worth US$ 11 billion, aims for a US$ 50 billion valuation by 2030. A robust CAGR of 37% from 2020 to 2025 underlines the aggressive expansion in this segment.

Key Investments and Strategic Developments

India has witnessed a wave of investments and strategic collaborations, enhancing its position as a global pharma and med-tech hub. Some noteworthy developments include:

• Sanofi’s US$ 435 million investment to expand its global capability center in Hyderabad.

• 24 M&A deals in Q1 2024 in the pharma industry, valued at US$ 456.3 million.

• Cipla’s CDSCO approval for the antibiotic Plazomicin to treat complicated UTIs.

• Inauguration of 27 greenfield bulk drug parks and 13 new medical device plants by the Union Minister in March 2024.

• Lupin’s launch of the world’s first fixed-dose triple combination drug for COPD.

• Glenmark’s release of Akynzeo I.V. for chemotherapy-induced nausea, and India's first IV formulation for this indication.

Furthermore, under the PLI (Production Linked Incentive) scheme, 26 applicants have been approved to manufacture 138 medical devices, with a financial outlay of US$ 411 million (₹3,420 crore). Foreign direct investment (FDI) flows in the pharma sector have totaled over US$ 22.5 billion from April 2000 to March 2024.

Future Outlook and Government Initiatives

The Indian Government has actively supported the healthcare sector through FDI liberalization, research incentives, and affordability programs. Initiatives like the National Health Protection Scheme, increased Jan Aushadhi Kendras, and the Pharma Vision 2020 aim to promote universal health coverage, boost affordability, and attract global investors.

The PLI scheme with a budget of US$ 1.8 billion, is fostering innovation and strengthening the domestic pharma ecosystem. India has also played a pivotal role during the pandemic by becoming the third-largest vaccine exporter, delivering over 30 crore doses globally.

With a projected 9–12% increase in medicine spending over the next five years, India is poised to become one of the top 10 global pharmaceutical markets.

Rise of Nutraceuticals and Preventive Healthcare

India's nutraceutical market, currently worth US$ 4–5 billion, is expected to grow to US$ 18 billion by 2025, driven by a shift towards preventive healthcare and increased consumption of immunity-boosting supplements. The dietary supplements segment alone, valued at US$ 3.9 billion in 2020, is projected to reach US$ 10.2 billion by 2026, growing at 22% annually.

Post-pandemic consumer behavior has demonstrated sustained demand for vitamins, minerals, and herbal products, indicating the sector’s long-term growth potential.

Sanitary Napkin Market in India

India’s sanitary napkin market reached US$ 758.5 million in 2023 and is projected to hit US$ 1.66 billion by 2032, growing at a CAGR of 8.8%. Increased awareness about menstrual hygiene, government and NGO initiatives, and innovations in eco-friendly and biodegradable pads have driven this expansion.

Maharashtra holds the largest market share, with supermarkets and hypermarkets as the dominant distribution channel. P&G, Johnson & Johnson, Unicharm, Emami, and Mankind are among the leading players in this space.

Conclusion

India's healthcare and pharmaceutical industries are not only key contributors to GDP and employment but also powerhouses of global innovation, affordability, and accessibility. With strong government backing, increasing private investments, cost-effective production, and skilled professionals, the country is on a trajectory to become a global leader in healthcare, pharmaceuticals, biotechnology, and medical devices. The growing emphasis on preventive health, digital health, and R&D further reinforces India’s pivotal role in the global healthcare landscape.

BUSINESS STRENGTHS

1. Experienced Promoters and Management Team
The company is led by experienced promoters and a capable management team with deep industry knowledge. Their strategic vision and hands-on involvement in daily operations have been pivotal in driving business growth and financial performance. A well-coordinated management team ensures effective strategy execution and high levels of client service.

2. Scalable Business Model
The customer-driven, order-based business model is designed for scalability. By optimizing existing resources and achieving cost efficiencies through economies of scale, the company sustains growth through new product development, market expansion, consistent quality, and targeted marketing efforts.

3. Wide Product Range
The product portfolio includes trading of pharmaceutical and healthcare products, along with in-house manufacturing of sanitary pads under the brand DRYSTEP and energy powders under the brand VITASTEP Z.

BUSINESS STRATEGIES

1. Market Analysis and Targeting
Thorough market research is conducted to understand consumer habits, preferences, and demographics. Field representatives gather real-time insights through direct engagement with distributors, stockists, hospitals, and end customers. This data informs target market selection, marketing strategies, product portfolio planning, and strategic decisions to serve niche markets effectively.

2. Product Development and Innovation
Product innovation focuses on new formulas, ingredients, and formats such as capsules, powders, and drinks. New flavors for energy powders and tablet forms of high-demand multivitamins are developed in collaboration with distributors to align with market trends.

3. Quality and Regulatory Compliance
Adherence to stringent quality standards and regulatory requirements is ensured through practices like UV detection and manual inspection of sanitary pads. The company is ISO 9001:2015 certified, affirming its commitment to quality management.

4. Distribution and Sales Channels
A strong network of experienced distributors and stockists facilitates efficient product reach across regions. Products are supplied to retailers and health stores, supported by the promoters’ industry presence and connections.

5. Customer Satisfaction
Customer-oriented operations include active feedback collection by the marketing team. Verbal feedback from existing clients guides product modifications, while continuous follow-ups help maintain high satisfaction levels and minimize complaints.

6. Sustainability and Ethical Practices
Sanitary pads are made using eco-friendly, non-irritating, and degradable materials, including a super absorbent SAP sheet and user-friendly adhesive back sheet. Products like Vitastep Z Powder use energy-boosting ingredients such as sucrose, dextrose, and ascorbic acid, complemented by appealing and functional packaging.

7. Competitive Analysis
Competitor strategies are evaluated based on product quality, pricing, popularity, and packaging. Insights from team members and market representatives guide competitive positioning, supported by a wide distributor network and affordable pricing models.

BUSINESS RISK FACTORS & CONCERNS

1. Competitive Pressure in New Product Segments
Entering the manufacturing segment for sanitary pads, energy powders, and multivitamins introduces exposure to intense competition from established brands with strong market presence, advanced R&D, and extensive distribution networks. Capturing market share in this environment may prove challenging and impact growth potential.

2. Regional Market Concentration Risk
A significant portion of revenue is generated from the Gujarat region. Any adverse developments—such as economic downturns, political unrest, natural disasters, or regulatory changes—specific to this region may negatively affect demand, disrupt operations, and adversely impact financial performance.

3. Dependency on Third-Party Raw Material Suppliers
The business is heavily reliant on domestic third-party suppliers for raw materials, including packaging. There are no long-term contracts in place, and supply disruptions or price volatility—due to market conditions, quality issues, or regulatory factors—could adversely impact manufacturing activities and financial outcomes.

4. Operational Risks at a Single Manufacturing Facility
The company operates only one manufacturing unit located in Bareja, Kheda, Gujarat. Any operational disruption—such as equipment failure, labor issues, regulatory delays, or natural calamities—could affect production continuity. Although no such events have materially impacted operations in the past three years, dependency on a single facility poses a concentrated risk.

Summary :
Medistep Healthcare’s business faces key risks arising from competition in newly ventured product categories, regional dependence on Gujarat, reliance on third-party suppliers for raw materials, and operational risks linked to a single manufacturing facility. Each of these factors has the potential to impact business continuity, growth, and financial stability.