JHS Svendgaard Lab to enter capital market

Ahmedabad, Sept 22: JHS Svendgaard Laboratories is entering the capital market with a public issue of 67 lakh equity shares of Rs 10 each, including promoters contribution of 5 lakh equity shares of Rs 10 each.

Talking to mediapersons here, Company MD Nikhil Nanda said the issue is through the 100 per cent book building route and the price band is Rs 49 to Rs 58 per equity share and the high end issue size being Rs 39 crore. The net issue will constitute 49.60 per cent of the fully diluted post issue paid capital of the Company.

A dental and oral healthcare products manufacturing company, JHS Svendgaard has three production faclities, two located in New Delhi and a 100 per cent export oriented unit in Noida SEZ.

The Company has decided to go public to raise resources for its new venture at Kala Amb, Sirmour district in Himachal Pradesh to set up an integrated manufacturing facility and also to increase the capacity of the EOU at Noida, Mr Nanda said.

Himachal Pradesh, Mr Nanda said, provides cheap power at Rs 2.50 per unit. For the Kala Amb facility, five acres of land has been acquired and the Company will import anchor free technology enabled machineries from Belgium for the manufacture of state-of-the-art toothbrushes, Mr Nanda said. Automated machinery will also be acquired for the manufacture of toothpaste and other oral care products. The total cost for Kala Amb project plus expansion is estimated at Rs 5177.40 lakhs, he added.

The new as well as expansion of projects are in advanced stages and commercial production is expected in December 2006. Post expansion, the annual installed capacity of toothbrushes will rise from 4 crore units to 11.6 crore; toothpaste from 450 tonnes to 2,700 tonnes; denture cleaning tablets from 50 lakh unit to 18 crore and other oral care products from 60,000 litres to 5 lakh litres, Mr Nanda said.

The Company, started eleven years ago, has 50 per cent revenue from export sales and 50 per cent from domestic sales.

For the year ended March 31, 2006, JHS Svendgaard posted a net profit of Rs 4.03 crore on a turnover of Rs 37 crores.

The JHS Svendgaard issue will open on September 26 and close on October 4.

UNI