Vikram Kelkar, Managing Director, Hexagon Nutrition Limited

21 Apr 2022 , 01:05 PM

In an interaction with Mamta Maity, indiainfoline.com, Mr. Vikram Kelkar, MD, Hexagon Nutrition Limited said “we have two dedicated in-house R&D facilities in Nasik and Chennai, as well as a staff of 11 highly skilled and experienced employees that assist us in developing bespoke solutions for our customers.”

Take us through your IPO?

The total IPO size is expected to be in the range of Rs500 to 600 crore and amounts up to Rs100 crore will be raised through a new share issue. The promoters will sell the remaining shares, as well as Investor Somerset Indus’ whole investment. The proceeds from the Fresh Issue will be utilised to repay certain debts, debottleneck the company’s Nasik Plant facility, provide operating capital, and invest in a subsidiary for capex.

How do you derive your revenues? What is the break-up?

We derive our revenue through three segments, as per the classification given below:

Segment (Amt in Million)	YTD Sep FY 21	YTD Mar FY 21	YTD Mar FY 20	YTD Mar FY 19
B2C	336.61	433.86	489.90	428.48
B2B2C	816.10	1459.70	1430.84	1482.75
ESG	76.08	182.86	87.20	375.72

Our revenue comes mostly from our production plants in Nasik, Chennai, and Tuticorin, which produce products under the #Pentasure, #Obesigo, and #Pediagold brands. Hexagon Nutrition serves to the B2C segment with this product category.

The company also generates revenue by supplying Bulk Premix to various FMCG companies throughout the world; this product offering is referred to as B2B2C. Under the ESG Area of our product portfolio, we also cater to the Malnutrition segment with our RUTF, RUSF, MNP, and Sprinkles range of goods.

What new products do you plan this fiscal? And under which segment?

Our R&D division is constantly trying to improve the existing product line so that we can provide the most value to the end user. The team is working diligently on the creation of new goods in response to changing market dynamics and consumer demand. We have two dedicated in-house R&D facilities in Nasik and Chennai, as well as a staff of 11 highly skilled and experienced employees that assist us in developing bespoke solutions for our customers.

Since November 2018, our R&D lab in Chennai has been DSIR certified. Our ability to create customised solutions aids in client retention. A bespoke product takes anything from 6 months to 2 years to develop. Because of our long-standing connections with our customers, we have been able to participate in the product development cycle of new goods from the beginning, which demonstrates our customers’ trust in us and is a key factor in customer retention.

How do you counter look-alike products in the market?

Our strength is Research & Innovation, as well as a dedicated team of professionals that are continually striving for quality excellence across all of our product lines.

Do you have any pending claims from your premix formulation? If yes, then how many?

We don’t have any pending claims for our premix formulations.

How do you maintain your quality accreditations and certifications, if not renew then how it impacts your business?

We are a quality-driven company that has received accreditation for “production of dry and liquid micronutrient premixes,” demonstrating that we meet the requirements of Good Manufacturing Practice certification. Our brand and reputation could be harmed if we are unable to renew the FSSC and ISO accreditations or other certifications, thus we renew all of our quality accreditations and certifications on or before their expiration dates to avoid such humiliating situations.

Your business depends heavily on channel partners and retailers? What percentage of commission do they charge?

Yes, channel partners and retailers make up a large component of our B to C business. We have a strong regional network in Latin America, Southeast Asia, Africa, and the Middle East, with 25 regional distributors. Our capacity to extend and grow our product reach is heavily reliant on the reach and effectiveness of our distribution network.

Our Company targeted reaching out to roughly 11,000 healthcare professionals across India using our over 100 member sales force to endorse our brands during the six months ended September 30, 2021, allowing us to access not only tier I, but also tier II and tier III towns. We want to concentrate on extending and strengthening our current network of merchants and channel partners, we have a tight partner selection policy.

How has Covid-19 changed your perception towards business? What measures did Hexagon take against lockdown?

In general, pandemics have drawn increased attention to health and overall well-being around the world. It has raised consumer understanding about nutrition management and resulted in substantial changes in consumer preferences. This has had a good impact on our Nutraceutical business division. We have always put our people first as an employee-centric firm, and we have taken all required precautions to ensure everyone’s safety. We provided housing and food for all of our employees who, despite the tough circumstances, worked around the clock for us.

Your profits are growing for the last three fiscals? What projections have you made for the coming fiscal?

We are obligated by SEBI LODR Rules because we filled out the DRHP. As a result, we are unable to make any future projections at this time. In DRHP, historical data is readily available.