VeerHealth Care Limited announces expansion, acquires land

Veerhealth Care Limited, a leading manufacturer of oral care & personal care products, has announced its initial expansion plans, which include acquiring an additional 27,451 sq. ft. of land adjacent to its current manufacturing facility in Vapi, Gujarat. This acquisition will enable the establishment of new manufacturing lines compliant with CGMP norms as required by the US FDA, addressing the increasing demand from the USA, East & North African market.

Following the expansion, the total plot area will be 58,623 sq. ft., combining the existing 31,172 sq. ft. with the newly acquired 27,451 sq. ft. The total constructed area will increase to 90,000 sq. ft., with 60,000 sq. ft. from the current facility and 30,000 sq. ft. from the new construction.

The company anticipates substantial demand and positive feedback from the USA, East & North African markets following the initial supply of oral care products. To meet this anticipated demand, Veerhealth Care Limited will introduce high-capacity manufacturing and filling lines in the new facility.

Additionally, the new facility will be equipped with plastic blow molding and injection molding machines, allowing for backward integration by producing packaging & complementing materials internally. This strategic move aims to provide a comprehensive solution to client requirements and is projected to help Veerhealth Care Limited achieve a revenue target of ₹100 crore over the next 2 to 3 years, with a 10% PAT margin. Veerhealth Care Limited is also dedicated to manufacturing pure vegetarian, Ayurvedic herbal products, ensuring natural and holistic health benefits. All manufacturing stages of the company's products will be completed within its own facilities.

Veerhealth Care Limited specializes in manufacturing of pure vegetarian toothpaste.

Commenting on the expansion, Managing Director of Veerhealth Care Limited said, "We are excited to share that VeerHealth Care Limited is expanding our operations with the acquisition of an additional 27,451 sq. ft. of land adjacent to our current facility in Vapi, Gujarat. This expansion will increase our total plot area to 58,623 sq. ft. and our constructed area to 90,000 sq. ft., significantly enhancing our manufacturing capacity and efficiency.

Our new facility will feature CGMP-compliant manufacturing lines as required by the US FDA to meet the growing demand from the USA, East and North African markets. We are also installing highcapacity manufacturing and filling lines to support this demand. We will also be incorporating plastic blow molding and injection molding machines to enable backward integration and internal production of packaging materials. Previously, our company depended on outsourcing for packaging; however, with this new in-house production capability, our dependency on external suppliers will decrease. This shift is expected to boost our profitability significantly.

We are aiming to achieve a revenue target of ₹100 crore over the next 2-3 years, with a 10% PAT margin. Our commitment to producing pure vegetarian, Ayurvedic herbal products remains steadfast as we continue to strengthen our position in the healthcare sector."

Shares of Veerhealth Care Limited was last trading in BSE at Rs. 23.00 as compared to the previous close of Rs. 22.96. The total number of shares traded during the day was 77663 in over 275 trades.

The stock hit an intraday high of Rs. 24.89 and intraday low of 22.80. The net turnover during the day was Rs. 1819603.00.

Source : Equity Bulls

Keywords

VeerhealthCare INE882C01035 Expansion LandAcquisition