Blue Jet Healthcare was founded in 1968 and specializes in pharmaceutical and healthcare ingredients and intermediates. The company has adopted a contract development and manufacturing organization (CDMO) business model, with a focus on specialized chemistry capabilities in the areas of contrast media intermediates and high-intensity sweeteners. This strategic approach was made possible through early investments in research and development (R&D) and manufacturing infrastructure.
As of June 30, 2023, Blue Jet Healthcare has served over 400 customers in 39 different countries. The company’s operations are primarily divided into three product categories:
Ezoic
Contrast Media Intermediates
High-intensity Sweeteners
Pharma Intermediates and Active Pharmaceutical Ingredients (APIs)
Blue Jet currently operates three manufacturing facilities, located in Shahad, Ambernath, and Mahad in the state of Maharashtra, India. These facilities have respective annual installed capacities of 200.60 KL, 607.30 KL, and 213.00 KL as of June 30, 2023.
Strengths and Opportunities:
Long-Term Customer Relationships: Blue Jet Healthcare has established enduring customer relationships, spanning from four to 24 years, with notable clients such as GE Healthcare, Guerbet, and Bracco. These strong relationships can provide stability and trust.
Contract Flexibility: The company engages in annual and multi-year contracts, ensuring a consistent and predictable stream of revenue and cash flow, which enhances financial visibility and planning.
Diverse Product Portfolio: Blue Jet Healthcare boasts a contrast media intermediate portfolio comprising 15 different products, which can provide diversification and cater to various market needs.
Positive Cash Flow: The company has reported positive free cash flow in multiple financial years, specifically in FY20, FY21, and FY22, indicating its ability to generate cash and manage its finances effectively.
Niche Market Presence: Blue Jet operates in niche categories, notably in contrast media intermediates, which often have high barriers to entry. This specialization can create a competitive advantage.
Expanding Market: The global contrast media formulation market had a substantial turnover of US$6.7 billion as of March 2022, indicating potential for growth and market opportunity.
Risks and Threats:
Revenue Concentration: Blue Jet Healthcare is highly reliant on European markets, with approximately 76% of its revenue coming from this region in FY22. This geographic concentration can pose risks if the European market faces challenges.
Customer Dependency: The top five customers accounted for 75% of the company’s revenue in FY22, making Blue Jet vulnerable to the business decisions and financial stability of a limited number of clients.
Geographic Concentration: All of the company’s infrastructure, manufacturing facilities, and business operations are currently concentrated in one state, Maharashtra, which exposes it to regional risks and potential disruptions.
Working Capital Needs: The manufacturing operations of Blue Jet require substantial working capital, which can strain liquidity and financial resources.
Pricing Pressure: There is a risk of pricing pressure from customers, which can affect profitability as the company competes in its specialized markets.
These are the specific purposes for which a company is raising funds through an initial public offering (IPO). It includes details about how the company intends to utilize the capital it raises. Common objectives of an issue may include expansion, debt reduction, working capital, or other strategic investments.
Utilization of the Offer Proceeds by Selling Shareholders: This section provides information on how the proceeds from the sale of shares by existing shareholders (often promoters or early investors) will be utilized. It clarifies whether the selling shareholders will benefit from the funds raised or if the capital raised will solely go to the company.
Offer Related Expenses: Offer-related expenses encompass the costs associated with the IPO process, including underwriting fees, legal expenses, marketing and advertising costs, listing fees, and other expenses directly related to launching the IPO. This section details how these expenses will be covered and by whom.
Blue Jet Healthcare IPO Allotment & Listing Dates:
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