Mahendra Patel, Managing Director, Lincoln Pharmaceuticals Ltd, talks about expected growth, international market performance, Vitamin C, new launches & M&A opportunities among others during a candid chat with Swati Khandelwal, Zee Business. Edited Excerpts:

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Q: Lincoln Pharma has witnessed good growth in 2020. What kind of incremental top-line and bottom-line growth you are expecting in 2021 and are going to the key growth drivers for the country?

A: If we have a look at 2020-21 and compare it with the last year then the growth of 15-20% is visible. One more quarter is left, yet there is a growth of around 20% when compared to last year. The EPS (Earnings per share) and profit also stand at the same level. Going by our current target, it seems that the EPS will stand around 30-32 per share.

Q: From where do you expect the growth will come? Also, update us your expectations on international markets performance?

A: As far as growth is concerned, we have maintained the domestic growth despite such a bad time and domestic growth stood around 10-15%. So, domestic is performing well despite 4-5 months were bad. The international market is good and is improving gradually. We have taken an EU certificate in Europe after that we are putting a Sachet line. Sachet line products are available in powdered form, like anti-cold, antacid and energy power among others. So, we are going to sell different products in different segments, particularly these products, in Europe and regulated countries. Hopefully, this business will be started in the next one or two months. It is an additional product line and also an area for Lincoln.

Q: Vitamin C saw good growth especially during the pandemic. So, let us know the kind of production you are seeing in it? Also, tell us about the existing demand of the product and going forward what kind of growth you foresee for it?

A: If we have a look on-demand, then Vitamin C will have an overall market size of around Rs 200 crore in India, putting all companies together. Out of that, we have a market share of around Rs 10-12 crore from it. Going forward, it is going to be good because of the condition that has been created due to the pandemic. So, the demand for Vitamin C will continue to be the same and people will have to take it compulsorily. Vitamin C is a good product and for export also Vitamin is good. We are doing a good job in terms of export as in the countries where it was not required or we didn’t have an export there earlier but now we are exporting several containers of Vitamin C there. So, it is a good product and is moving well.

Q: How many new launches are planned in 2021?

A: We have launched a product in pain management recently in the domestic market. We have also launched 2-3 products in Gynae segment and Paediatrics segment. So, we keep adding products in the gap that occurs in our domestic portfolio. And in international, as I just told that we have got the EU certificate, after this, we are working in Canada, Thailand, Germany, Ukraine and such countries, i.e. our registration has started and the business will start in some time. As you know that we are about to bring Sachet line products, such as anti-cold and antacid, in the powder form and such products will lead to new business growth and we will also cover new areas with it. In totality, everything is going good at present.

Q: Do you have any M&A opportunities and is there any area where you would like to enter?

A: Talks related to acquisition is going on and we also have one or two proposals but would not like to speak about it until something is not finalized on the front. Very short, we will give some good news for that also.

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