Hester Biosciences forays into pet care industryHESTERBIO - 2367 Change: 10.15 (0.43 %)
News: Hester Biosciences is set to expand into the rapidly growing pet care sector this April. Hester’s initial pet care portfolio will include products ranging from dermatology, grooming, anti-infective and specialty products. Hester plans to eventually expand by way of pet biologicals and diagnostics. The complete portfolio will target both veterinarians and pet parents.
Views: India has the fastest-growing pet care market worldwide, with it growing by 14% in 2022 and estimated market size of ~Rs.700 crore. This foray somewhat aligns with Hester’s existing operations with comprehensive knowledge of animal biology, R&D capabilities, and experience in animal healthcare. However, the pet care market in India will pose challenges for Hester in terms of competition and marketing activity. The management guidance for Rs.8 - 12 crore revenues in the first year and growth of 30-50% in subsequent years is subject to execution capabilities. We expect Hester’s revenues to grow at a CAGR of 17.2% over FY21-24E.