JHS Svendgaard Laboratories Limited Raises INR 30 Crore (USD 3.66 Million) to Drive Strategic Expansion
JHS Svendgaard Laboratories Limited has successfully secured INR 30 Crore (approximately USD 3.66 million) in funding, marking a significant milestone in its ongoing growth and expansion efforts.
Prominent Investors Support Strategic Vision
The funding round was led by key promoters of the Dabur Group, with additional contributions from Nikhil Nanda, Managing Director of JHS Svendgaard Laboratories, and the Coeus Global Opportunities Fund. Notable investors, including M/s Puran Associates, M/s Milky Investment, M/s M. B. Finmart, and M/s VIC Enterprises—owned by Dr. Anand Chand Burman, Mrs. Minnie Burman, and Mr. Mohit Burman—have shown their strong support for JHS’s strategic vision by participating in this investment.
Greenfield Project in Jammu and Kashmir
The capital will be used to establish a greenfield project in Jammu and Kashmir under the J&K Industrial Policy, which offers fiscal incentives for up to 10 years. This project, with an estimated cost of ₹120 Crore, will expand JHS’s product offerings to include Oral Care, Soap, and Juices/Aerated Beverages, with an expected additional business of ₹500 Crore.
Expansion into Horeca, Institutional, and Export Markets
JHS is also focused on expanding into the Horeca (Hotels, Restaurants, and Cafés), institutional, and export markets through white labeling and increased market penetration.
Commenting on the development, Nikhil Nanda, Managing Director of JHS Svendgaard Laboratories, said, “This investment marks a significant milestone for our company. The confidence shown by key investors underscores our strategic vision and potential. The funds raised will enable us to expand our product portfolio and strengthen our market presence, driving substantial profitability and growth in the coming years.”
Strong Order Book and Financing Strategy
JHS boasts a robust order book for FY 2024-25, with orders from industry leaders such as Dabur, HUL, and Patanjali. The greenfield project in Jammu will be financed through a combination of 50% equity and internal accruals, with the remainder funded by debt. Construction is set to begin in September 2024, with a target completion date within 15-18 months and operations expected to commence by January 2026.
Company Background and Future Outlook
Founded in 2004 and listed on the BSE and NSE, JHS is a leading manufacturer of oral hygiene products. The company operates a state-of-the-art manufacturing facility spanning 20 acres in Kala-Amb, Himachal Pradesh, certified by ISO 9001, GMP, FDA, and SMETA. With planned expansions in Himachal Pradesh and new initiatives in Jammu, JHS aims to enhance EBITDA margins to double digits, leveraging fiscal benefits in J&K to achieve up to 20% profitability.