Animal Health India: Top 20 Indian Animal Health Cos 2019 - 2020

Top 20 AH Companies: 2019 – 2020 (FY: April 2019 – March 2020)

Unique characteristics of Indian AH Industry

Local animal health industry witnessed a massive disruption in February and March 2020 on account of extensive and compulsory lockdown of entire India in the wake of rising numbers of Corona Virus cases. Some of the companies responded in ways smarter than the others as CRM practices took precedence in the new “virtual world”.

Quick recap of key characteristics that distinctively define local AH Players compared to global peers. Sample this:

1. Feed Supplements and Nutritionals: Feed supplements and Nutritionals constitute a larger portion of the portfolio and revenues for almost all the companies including MNCs operating in India. Industry leading brand across animal species is a Multi-Vitamin / Multi-Mineral formula. No regulatory approval requirements and extreme flexibility and agility afforded by these products are the key reasons for this trend

2. Low or No R&D Spends: Overwhelming number of companies have less than 3% of revenues as spends on R&D – as portfolios being largely nutritionals and generic generics. R&D investments are largely in PLM and formulation developments rather than any NCE spends

3. Poultry & Aqua – new growth engines: Traditionally Livestock / Dairy segment was the key driver and critical for market leadership, however, with growing importance of nutritionals in portfolio, Poultry and Aquaculture segments are the new growth engines. Swine segment is showing signs of a slow but steady attempt to transition from backyard and from swill feeding to commercial feeds.

4. Think Global: Act Local – Growing number of AH MNCs operating in India could be interesting case studies and sources of ideas and quality manpower for parent organizations. Number of MNCs have truly and completely localized portfolios and commercial practices adapted to meet hyper competition from local players. Agility and adaptability are the New Competitive Advantages in this market

5. B2B from B2C: With increasing share of Nutritionals and Feed Supplements, local AH Industry is undergoing a structural shift from Prescription led market to “Direct to Customer” market. A large number of companies have responded by realigning sales teams and practices to call upon direct customers / end users instead of veterinarians for prescriptions. This has also led to shorter distribution chains and shift of bargaining power to customers from distributors and retailers earlier

Top 20 AH Companies: 2018 - 2019


For these rankings and company profiles, AnimalHealthIndia scoured company filings, consulted industry colleagues, perused annual reports, investor presentations, earnings transcripts and analyst reports as well as our own archives.

There may still be an outside chance of +/- variation to the extent of around 5% from our reported numbers for a few companies on this list on account of lag in filing reports by these companies with local regulatory authorities. We will be more than willing to correct numbers in this list if and when brought to our attention by concerned.

We converted 2019-20 results to U.S. dollars using an average exchange rate for the whole year. Average conversion rate used is 1 USD = INR 70.

These numbers are for FY 2019 -20 (April 2019 to March 2020) for all Indian companies and CY 2019 (Calendar Year 2019) for all Multinational Companies on this list.


Top 5 AH companies in CY 2019 (FY 2019-20) maintained their respective positions despite the disruptions caused by COVID-19 because - the gap with Tier 2 companies (Rank 6 and downwards) is huge and is unlikely to be bridged without any significant M&A

Despite the lockdown related disruptions - Most of the Tier 1 & Tier 2 companies managed to limit the drop in revenues to around 5 to 8%. Diverse portfolio and presence across domestic as well as exports markets came to the rescue. Loss in sales in local market was effectively compensated by exports markets

Some amount of churn in the rankings in Tier 2 companies based on degree of response to the Covid related disruptions

Tale of 2 deals – the year witnessed spirited bidding for Alivira Animal Health / Sequent Scientific, which came on the block – however, the interest was limited only to PE firms with all Animal Health companies choosing to stay out of fray. Surprise divestment candidate remained Zydus Animal Health, the 2nd largest AH company in India – with parent Cadila HealthCare announcing in the last week of March 2020 - a proposal to hive off Zydus AH into a stand alone entity for divestment in FY 2021-22. Objective of Cadila Healthcare is to increase focus on high stakes Human Pharma and Consumer Care business. At the time of going to press with this report – investment bankers have been sounded out and again initial interest from Health Care focused PE firms only

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