JHS Svendgaard ltd

About the Company:

JHS Svendgaard Laboratories Limited (head-quartered in New Delhi, India) offers a one-stop shop for oral care products (toothbrushes, toothpastes, mouthwash, whitening gels, and denture products) for national and global FMCG brands.

The Company was started as a small-scale enterprise called Sunehari Svendgaard Laboratories Limited in August 1997 and was incorporated as JHS Svendgaard Laboratories Limited in October 2004.

The Company is managed by an experienced and energetic team headed by Mr. Nikhil Nanda (Managing Director).

The Company started with the manufacture of toothbrushes and gradually widened its product offering to the comprehensive range of oral care products.

Apart from contract manufacturing partnerships with domestic oral care brands, the Company manufactures proprietary brands as well.

The Company currently possesses two ISO-certified state-of-the-art manufacturing facilities at Kala Amb (Himachal Pradesh) with a ready land bank and tax benefits for immediate capacity/category expansion.

JHS, is currently working with four principal brands – two of them are multi-level marketing brands of global repute while the other two are prominent ayurveda (Patanjali) and herbal based domestic FMCG companies.

Recently company has taken a decision to invest in proprietary labels in the country’s oral care segment and they have increased the number of labels from five a couple of years ago to almost 20 at the close of 2016-17.

The Company’ prominent labels comprised Tripleguard, Deep Clean, Active Clean, Twinguard, Smiley Junior and Max Clean.

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Positives for the Company:

• JHS works with four large FMCG customers whose products enjoy a distinctive brand recall, reflected in growing revenues and market share.
• Company became debt-free for the first time across a full year starting 2016-17.
• The Company expects to launch more oral care brands, grow its proprietary brand basket to account for 2% market share which should contribute at least 50% of revenues from its own labels
• The Company virtually concluded its capacity re-alignment, raising its toothpaste manufacturing capacity from 90 million tubes to 175 million tubes, aligned with manufacturing cum packaging capacity of 28,000 TPA.
• Even as the oral care market grows at 8 to 10% during the current financial year, the Company expects to grow revenues 20-30% following an increase in manufacturing capacity and the increasing appetite coming out of its large and successful branded customers.
• The Company’s manufacturing location in Kala Amb, Himachal Pradesh continues to enjoy tax incentives.

Update: We had recommended the Stock at Rs.41 and currently it is trading at Rs.76.(A Massive Return to all our Subscribers), We have delivered as Promised.

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