Onyx Biotec Limited
Company
| Website 🔗 |  |
| Business Activity | Manufacture |
| Division | Pharmaceuticals |
| Sub-class | Sterile pharmaceutical products |
| Location | Solan, Himachal Pradesh |
| Establishment Year | 2005 |
Management
| Managing Director | Sanjay Jain |
| Educational Qualifications | |
| Experience | Over 16 years |
| Annual Salary | ₹ 30 Lakhs |
| Total Number of Employees | 175 |
About
Onyx Biotec Limited is a pharmaceutical company specializing in the production of sterile water for injections, dry powder injections, and dry syrups, catering to domestic and international pharmaceutical companies, distributors, and healthcare institutions.
Products and Services:
Sterile Water for Injections:
This product is a crucial component in the preparation and administration of injectable medications, serving as a diluent or solvent for reconstituting powdered drugs or diluting liquid medications before injection. It is used extensively in hospitals, clinics, and pharmaceutical manufacturing facilities to ensure the safe and effective delivery of injectable drugs.
- 5ML (SWFI/RC/PW)
- 10ML (SWFI/RC/PW)
- 15ML (SWFI/RC/PW)
- 20ML (SWFI/RC/PW)
- 25ML (SWFI/RC/PW)
- 28ML (SWFI/RC/PW)
- 30ML (SWFI/RC/PW)
- 40ML (SWFI/RC/PW)
- 44ML (SWFI/RC/PW)
Dry Powder Injections:
These are sterile powders that are reconstituted with sterile water for injections or other suitable diluents before administration. They offer several advantages over liquid injections, including increased stability, longer shelf life, and ease of storage and transportation. Dry powder injections are used for a wide range of medications, including antibiotics, vaccines, and biologics.
- Ceftriaxone Injection
- Ceftriaxone & Sulbactam for Injection
- Ceftriaxone & Tazobactam for Injection
- Cefotaxime for Injection
- Cefotaxime & Sulbactam for Injection
- Cefoperazone & Sulbactam for Injection.
- Cefoperazone & Tazobactam for Injection
- Cefazoline Sodium for Injection
- Cefuroxime Injection
- Cefuroxime & Sulbactam for Injection
- Cefepime Injection
- Cefepime & Sulbactam for Injection
- Cefepime & Tazobactam for Injection.
- Cefpirome Injection
- Cefpirome & Sulbactam
- Ceftazidime for Injection
- Ceftazidime & Tazobactam for Injection
- Ceftizoxime for Injection
- Ceftiofur Sodium for Injection
- Ceftiofur & Tazobactam for Injection
- Ceftazidime Avibactam for Injection
Dry Syrups:
These are dry powder formulations that are reconstituted with purified water to form oral suspensions. They are commonly used for pediatric medications due to their ease of administration and improved palatability compared to traditional liquid formulations. Dry syrups are used for various therapeutic categories, including antibiotics, antihistamines, and analgesics.
- Cefixime Trihydrate 100 mg/ 5 ml
- Cefixime Trihydrate 50 mg/ 5 ml
- Cefpodoxime Proxetil 100 mg/ 5 ml
- Cefpodoxime Proxetil 50 mg/ 5 ml
- Cefuroxime Axetil 125 mg (Each 5 ml)
Clients:
Pharmaceutical manufacturers:
The company acts as a contract manufacturer for other pharmaceutical companies, providing them with manufacturing solutions for their injectable and oral suspension products.
Distributors:
The company supplies its products to distributors, who then distribute them to various healthcare institutions and pharmacies across the country.
Hospitals and clinics:
The company supplies its sterile water for injections and other products directly to hospitals and clinics, catering to their needs for preparing and administering injectable medications.
Manufacturing Process:
Onyx Biotec Limited’s work process involves the following key stages:
- Raw material procurement:
The company sources its raw materials from domestic and international suppliers, ensuring the quality and compliance of all materials used in its manufacturing processes. - Manufacturing:
The company’s manufacturing facilities are equipped with modern equipment and technology to ensure the production of high-quality sterile pharmaceutical products. The manufacturing process is carried out in compliance with WHO-GMP guidelines and other regulatory requirements. - Quality control:
The company has a dedicated quality control team that conducts rigorous testing at various stages of the manufacturing process to ensure the quality and compliance of its products. The company’s in-house laboratory is equipped with advanced testing equipment to perform various quality checks. - Packaging and labelling:
The company’s products are packaged and labelled in accordance with regulatory requirements and customer specifications. The packaging is designed to ensure the stability and integrity of the products during storage and transportation. - Distribution:
The company has a well-established distribution network that ensures the timely and efficient delivery of its products to customers across the country. The company also exports its products to various international markets.
Raw Materials:
Onyx Biotec Limited purchases the following raw materials and services:
- Active Pharmaceutical Ingredients (APIs):
These are the active components of the company’s injectable and oral suspension products. The company sources its APIs from domestic suppliers, ensuring their quality and compliance with regulatory standards. - Packaging Materials:
These include glass vials, rubber stoppers, and aluminium seals used for packaging the sterile water for injections and dry powder injections. The company sources these materials from domestic suppliers, ensuring their quality and compatibility with the products. - Excipients and Additives:
These are inactive ingredients that are added to the dry powder formulations to improve their stability, solubility, and other characteristics. The company sources these materials from domestic suppliers, ensuring their quality and compliance with regulatory standards. - Printing and Packaging Services:
The company outsources its printing and packaging needs to third-party service providers, ensuring the quality and compliance of its product labels and packaging materials. - Utilities:
The company relies on local authorities for essential utilities, such as electricity and water, to support its manufacturing operations. Additionally, the company has backup power generation facilities to ensure uninterrupted production in case of power outages.
Suppliers:
Onyx Biotec Limited sources its raw materials from various suppliers, including:
- LyondellBasell:
A multinational chemical company that supplies LDPE granules, which are used for manufacturing plastic ampoules for sterile water for injections. The company sources these granules domestically from an importer who imports them from LyondellBasell’s production facility in the Netherlands. - Domestic API Suppliers:
The company sources its APIs from various Indian pharmaceutical companies. - Domestic Packaging Suppliers:
The company sources its packaging materials, including glass vials, rubber stoppers, and aluminium seals, from various Indian suppliers.
Manufacturing Units:
Onyx Biotec Limited has two manufacturing facilities located in Himachal Pradesh, India.
Unit I: This facility is located in BirPlassi, District Solan, and is dedicated to the production of sterile water for injections. The facility has a production capacity of 638,889 units per day.
Unit II: This facility is located in Village Teliwala, District Solan, and is dedicated to the production of dry powder injections and dry syrups. The facility has a production capacity of 40,000 units of dry powder injections and 26,667 units of dry syrups per day.
Other Key Aspects:
WHO-GMP:
Both manufacturing facilities of Onyx Biotec Limited are accredited with WHO-GMP certification, ensuring compliance with international quality standards for pharmaceutical manufacturing.
ISO Certifications:
The company holds ISO 9001:2015 and ISO 14001:2015 certifications for its quality management systems and environmental management systems, respectively.
Long-Term Supply Agreements:
The company has 5-year agreements with multiple pharma companies ending in 2028-29 including
1. Medibox Pharma Private Limited
2. Nicholas Healthcare Limited
3. Plenteous Pharmaceuticals Limited
4. Aspire India Lifecare LLP
Manufacturing Process Flowchart
Revenue – Category
Revenue – Region
Audit and Legal
Auditor’s Remarks:
The auditors have issued an unqualified opinion on the company’s financial statements
Non-Compliances and Other Issues:
Delays in Payment of Statutory Dues:
The company has experienced instances of delays in the payment of GST in the past.
Delays in Filing of Statutory Forms:
The company has also faced delays in filing certain statutory forms with the Registrar of Companies (RoC).
Contingent Liabilities:
The company does not have any contingent liabilities as of FY 2024.
Legal Cases:
The company is currently not involved in any material litigation or legal cases.
Cases Filed Against the Company
Cases Filed by the Company
Tax Proceedings against the Company:
SWOT Analysis
Strengths
| Prominent Contract Manufacturer: The company is one of the leading contract manufacturers in the sterile manufacturing sector, with a strong reputation for quality and reliability. |
| Quality Assurance and Control: The company has a strong focus on quality assurance and control, with dedicated teams and an in-house laboratory to ensure the quality and compliance of its products. |
| Strong Client Relationships: The company has built strong and long-term relationships with its clients, as evidenced by repeat orders and a growing customer base. |
| Cost-Effective Production: The company is committed to cost-effective production and timely fulfilment of orders, ensuring customer satisfaction and competitiveness. |
Weaknesses
| Dependence on Key Customers: The company is reliant on a limited number of key customers for a significant portion of its revenue, posing a concentration risk. |
| Dependence on Third-Party Suppliers: The company relies on third-party suppliers for its raw materials, posing supply chain risks. |
Opportunities
| Expansion into New Markets: The company can explore new geographical markets and product segments to expand its business and reduce its dependence on existing markets and customers. |
| Product Development: The company can invest in research and development to improve its existing products and introduce new products to cater to the market’s evolving needs. |
Threats
| Competition: The pharmaceutical industry is highly competitive, and the company faces competition from both domestic and international players. |
| Regulatory Changes: The company is subject to various regulations and policies, and any adverse changes in these regulations could negatively impact its business. |
Porter’s Five Forces1
| Threat of New Entrants | MODERATE |
| The pharmaceutical industry requires significant capital investment and regulatory approvals, posing moderate barriers to entry for new players. |
| Bargaining Power of Suppliers | LOW |
| The company has access to a diverse pool of suppliers for its raw materials and packaging materials, reducing the bargaining power of individual suppliers. |
| Bargaining Power of Buyers | HIGH |
| The company’s buyers are primarily large pharmaceutical companies with significant bargaining power due to their purchasing volumes and market influence. |
| Threat of Substitute Products or Services | LOW |
| The company’s products, such as sterile water for injections, have limited substitutes, posing a low threat from substitute products. |
| Rivalry Among Existing Competitors | HIGH |
| The pharmaceutical industry is highly competitive, with the presence of numerous domestic and international players vying for market share. |
Peer Comparison
The company’s performance on various financial and operational metrics compared to its peers for FY 2024 is as follows:
| Metric | Onyx Biotec Limited | Suven Pharmaceuticals Limited | J B Chemicals & Pharmaceuticals Limited |
| Revenue from Operations (₹Lakhs) | 5,374 | 1,05,135 | 3,48,418 |
| EBITDA Margin | 15.41% | 37.11% | 26.81% |
| PAT Margin | 5.64% | 26.97% | 15.86% |
| ROE | 12.19% | 14.64% | 18.90% |
| ROCE | 10.58% | 19.24% | 25.46% |
Green Box
Strong Focus on Sterile Manufacturing:
The company’s specialization in sterile manufacturing capabilities gives it a competitive advantage in the market.
IPO Funds:
Upgrading Manufacturing Facilities:
The company intends to upgrade its manufacturing facilities to increase production capacity and expand its product portfolio. The company plans to upgrade its Unit I to manufacture large volume parentals for intravenous use and set up a high-speed carton packaging line at Unit II for dry powder injections.
The total estimated cost for upgrading Unit I is ₹607.70 lakhs and the total estimated cost for setting up the high-speed cartooning packaging line at Unit II is ₹124.05 lakhs
Repaying Debt:
The company plans to utilize up to ₹1,200 lakhs from the net proceeds of the issue to repay or prepay certain outstanding loans. This will help reduce the company’s debt burden, lower its interest costs, and improve its financial leverage.
Industry Outlook:
The Indian pharmaceutical industry is expected to grow at a CAGR of 22.4% in the near future.
Amber Box
Capacity Utilization:
The current capacity utilization rate of the company’s manufacturing facilities is as follows:
Unit I: 59.87%
Unit II: 40.90%
Positive Operating Cash Flow:
The company has maintained a positive operating cash flow in the last financial year, indicating its ability to generate cash from its operations.
Red Box
Limited Product Portfolio:
The company’s product portfolio is currently limited to a few key products, making it vulnerable to market fluctuations and competition from players with more diversified offerings.
Customer Concentration:
The company is heavily dependent on a few key customers and the top 10 customers contributed 71% of total revenue.
Images
- The force value of “LOW” is considered good Click Porter’s Five Forces article for more information. ↩︎
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