Hester Biosciences Ltd
NSE:HESTERBIO
| US |
|
Fubotv Inc
NYSE:FUBO
|
Media
|
| US |
|
Bank of America Corp
NYSE:BAC
|
Banking
|
| US |
|
Palantir Technologies Inc
NYSE:PLTR
|
Technology
|
| US |
C
|
C3.ai Inc
NYSE:AI
|
Technology
|
| US |
|
Uber Technologies Inc
NYSE:UBER
|
Road & Rail
|
| CN |
|
NIO Inc
NYSE:NIO
|
Automobiles
|
| US |
|
Fluor Corp
NYSE:FLR
|
Construction
|
| US |
|
Jacobs Engineering Group Inc
NYSE:J
|
Professional Services
|
| US |
|
TopBuild Corp
NYSE:BLD
|
Consumer products
|
| US |
|
Abbott Laboratories
NYSE:ABT
|
Health Care
|
| US |
|
Chevron Corp
NYSE:CVX
|
Energy
|
| US |
|
Occidental Petroleum Corp
NYSE:OXY
|
Energy
|
| US |
|
Matrix Service Co
NASDAQ:MTRX
|
Construction
|
| US |
|
Automatic Data Processing Inc
NASDAQ:ADP
|
Technology
|
| US |
|
Qualcomm Inc
NASDAQ:QCOM
|
Semiconductors
|
| US |
|
Ambarella Inc
NASDAQ:AMBA
|
Semiconductors
|
If you don’t study any companies, you have the same success buying stocks as you do in a poker game if you bet without looking at your cards.
Utilize notes to systematically review your investment decisions. By reflecting on past outcomes, you can discern effective strategies and identify those that underperformed. This continuous feedback loop enables you to adapt and refine your approach, optimizing for future success.
Each note serves as a learning point, offering insights into your decision-making processes. Over time, you'll accumulate a personalized database of knowledge, enhancing your ability to make informed decisions quickly and effectively.
With a comprehensive record of your investment history at your fingertips, you can compare current opportunities against past experiences. This not only bolsters your confidence but also ensures that each decision is grounded in a well-documented rationale.
Do you really want to delete this note?
This action cannot be undone.
| 52 Week Range |
1 305.3
3 212.7
|
| Price Target |
|
We'll email you a reminder when the closing price reaches INR.
Choose the stock you wish to monitor with a price alert.
|
|
Fubotv Inc
NYSE:FUBO
|
US |
|
|
Bank of America Corp
NYSE:BAC
|
US |
|
|
Palantir Technologies Inc
NYSE:PLTR
|
US |
|
C
|
C3.ai Inc
NYSE:AI
|
US |
|
|
Uber Technologies Inc
NYSE:UBER
|
US |
|
|
NIO Inc
NYSE:NIO
|
CN |
|
|
Fluor Corp
NYSE:FLR
|
US |
|
|
Jacobs Engineering Group Inc
NYSE:J
|
US |
|
|
TopBuild Corp
NYSE:BLD
|
US |
|
|
Abbott Laboratories
NYSE:ABT
|
US |
|
|
Chevron Corp
NYSE:CVX
|
US |
|
|
Occidental Petroleum Corp
NYSE:OXY
|
US |
|
|
Matrix Service Co
NASDAQ:MTRX
|
US |
|
|
Automatic Data Processing Inc
NASDAQ:ADP
|
US |
|
|
Qualcomm Inc
NASDAQ:QCOM
|
US |
|
|
Ambarella Inc
NASDAQ:AMBA
|
US |
This alert will be permanently deleted.
Hester Biosciences Ltd
You don't have any saved screeners yet
Ladies and gentlemen, good day, and welcome to the Hester Biosciences Q4 FY '23 Financial Results Conference Call, hosted by ICICI Securities. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Mr. Rohan John from ICICI Securities. Thank you, and over to you, sir.
Thank you, Doran. Good afternoon, everyone, and welcome to the Hester Biosciences Limited Fourth Quarter and Full Year FY '23 Earnings Conference Call.
So today, we have the senior management with us, Mr. Rajiv Gandhi, CEO and Managing Director; Ms. Priya Gandhi, Executive Director; and Mr. Nikhil Jhanwar, CFO, on this call.
I thank the management for giving ICICI Securities the opportunity to host this call. Over to you, sir.
Good afternoon, everybody. This is Rajiv Gandhi, and as always, nice to connect with all of you. Today, the presentation will be given by Priya Gandhi, Executive Director, and my daughter. And after that, in the Q&A, she, Nikhil and myself, we will be there to answer all the questions. Over to Priya.
Good afternoon, everyone, and thank you for joining the call today. This is Priya Gandhi, Executive Director, Hester BioSciences. Usually, my father, Mr. Rajiv Gandhi takes the call with you all. And while he's present on the call today, I will be taking the briefing that happens before the Q&A, and he shall join in and be there to answer your questions.
With the numbers and information in front of you, which got released today, I shall get on to the subjective part of the performance of Q4 FY '23. Our revenues for the quarter went up by 21% on a stand-alone basis and 19% on a consolidated basis.
EBITDA grew by 11% on a stand-alone basis and 13% on a consolidated basis.
Coming on to the divisional performances of poultry and animal health, our objective to reduce the dependency on 1 division has yielded results, partly due to the continued depressional conditioning of the poultry industry as well as our efforts to grow the sales in the animal health division.
From 80% dependency on the poultry division in the year FY '21, '22, the contribution of poultry division has come down to 60%. This, in a way, now has helped us as equal distribution of sales among the division gives us a cushion to overcome any down cycles in any of the divisions.
The animal healthcare division saw an upward trend from Q4 with the LSD outbreak in the cattle. As mentioned earlier, Hester India does not produce LSD. However, the government of India allows the usage of the Goat Pox vaccine, which we produce to prevent the LSD in cattle.
We supply this vaccine across the country through trade/tender. Meanwhile, we have also acquired a technology for the LSD vaccine from the Indian Veterinary Research Institute, Government of India. The vaccine will be ready by FY '24.
Our health products also complemented the LSD vaccines to ensure better health in cattle. The poultry healthcare division has been impacted with a degrowth of 8% in Q4. The poultry industry continues to be under stress. The egg prices, meat prices, et cetera, are lower than the production cost, and this makes it very difficult for the farmers to invest into resources to rear their in the way it should be done.
With this, even with the demand that continues to remain, the payment cycle has been adversely affected. However, the poultry vaccine sales is showing a recovery trend as the degrowth has come down from 27% in Q1 to 16% in Q4.
Speaking of the newly launched Petcare division. The Petcare division has been functional since the last 3 quarters. We've launched around 10 products in 15 territories. I have mentioned in the last call, keeping the seasonal demand in mind, we will be launching deworming solutions in Q4, the launch of which was in line with the planning.
In the coming quarter, we intend to launch a couple of more specialized products in new sales territory. A point to mention here is that worldwide sales of pet divisions of animal health companies is higher than their poultry and animal health division. And with this, we are very hopeful towards the growth of our Pet division.
With regards to the profitability of the quarter, there is a growth of 11% in the EBITDA coming from the increase in sales. However, the growth in the health products contribution and the work done towards the expansion of the animal and pet division, our gross margin has reduced by 1%. Having said that, I would also like to point out that the gross margin percent of the health product has improved more than 4% on a quarter-on-quarter basis.
Now talking about the way forward, the Government of India has commenced the immunization program against the PPR disease. Hester had won the tender for this. The total value of the order is INR 40 crores out of which INR 38 crores is to be executed in the coming year in a phased manner.
Based on the advisory issued by the Ministry of Fisheries, Animal Husbandry & Dairying, the yearly immunization against LSD will also have to be carried in order to avoid any severe outbreak.
With this, we shall be supplying the Goat Pox vaccine for this program. We shall also be carrying awareness programs of this to promote the immunization and also support the overall cattle health by supplementing the vaccination using some of our health products.
We have a marketing campaign for LSD, which also mentions Bhool na jana, tika lagana. The above 2 programs will also further boost our vaccine sales in the animal health care division. We want to continue working on increasing the health product segment, and this we shall be looking at introducing value-added products in emerging markets and also focus on the individual productivity of the field.
Now coming on to the capacity expansion initiatives. The Bulk Antigen, which is a drug substance production capacity has been completed and the commissioning of Fill-finish, which is a drug product, capacity will be done in Q1 FY '24, doubling our overall vaccine manufacturing capacity.
On the COVID-19 vaccine plant, with the help of Department of Biotechnology and BIRAC, under the mission COVID Suraksha program and in collaboration with Gujarat Biotechnology Research Center, we have constructed a BSL-3 laboratory to produce the drug substance that is the Bulk antigen for Covaxin, for Bharat Biotech, to supply the Bulk Antigen to them for their production of the Covaxin vaccine. We have received the regulatory approval in this quarter Q4.
As mentioned in the last call, while getting into this project and making such a huge investment, the thought behind it was to serve the nation and come and use to cater to the growing demand to immunize people against COVID-19. However, now with the demand almost going away and thank god for that, we are in process of working out on other vaccines that could be produced here, which will require to be produced in a biosafety level 3.
On to the subsidiary. Hester Nepal did a turnover of INR 12 crores. This year, we have introduced a few poultry vaccines due to the increased local demand in the poultry segment. We have also expanded our local distribution channel within Nepal.
The PPR expose saw a dip due to the lack of tender orders from FAO compared to last year. However, the FAO tenders will start coming in this year. Hester Africa has also got licenses to produce the PPR, CBPP vaccine -- CBPP and LSD for ruminants and ND and IBD vaccines for poultry, and we have begun the sales within Tanzania.
And we have now started the registration processes in other African countries through our joint venture called Thrishool Exim. We continue to penetrate further into the local Tanzanian market.
With this, I would now hand over the call to Mr. Gandhi for his concluding remarks and to -- for the Q&A.
I hope you all got synopsis on the functioning of the company, and we are now ready to take questions from all of you.
We will now begin the question-and-answer session. [Operator Instructions] Ladies and gentlemen, we will wait for a moment while the question queue assembles. [Operator Instructions]
The first question is from the line of Shikhar Mundra from Vivog Commercial Limited.
So I want to understand why has there been a degrowth in the poultry health care segment? And what's the outlook for the segment?
The poultry segment, the poultry industry in India is still continuing to go through a tough phase and therefore, a dip or a recessionary condition in the poultry industry, which is mainly due to high input costs and low revenue for the output that is for the eggs and for the meat. This has been ongoing.
The downturn in our sales has been arrested and it has again picked up in the last quarter, but this continues to be a characteristic or a temporary situation of the poultry industry in India.
Okay. And so what was the overall market for the -- what was the overall market degrowth for the industry during the year?
For the Poultry?
Yes.
I do not have those statistics with me at the moment, but people have taken less replacement flocks, less chicken to grow in their poultry farms, et cetera. But I am not right now sitting with those figures. I'm sorry.
[Operator Instructions] The next question is from the line of Nirav Seksaria from Living Root Capital. Nirav the line for you has been unmuted, you may proceed with your question.
Ladies and gentlemen, the current participant in the queue seems to have dropped from the queue. [Operator Instructions] The next question is from the line of Ankit Gupta from Bamboo Capital.
Can you talk about African subsidiary? How is that expected to ramp up going forward?
Your voice is muffing. Can you again repeat, please?
Is it better now?
Little. But yes, tell me.
So can you talk about African subsidiary in Tanzania, when is that expected to ramp up and how do you see the overall cope over Africa, especially in the region where we operate?
Okay. Having got licenses for a few products, I think, either 5 or 6 we have already got the license. And now we are gearing -- and we are trying to start our marketing in Tanzania itself first, and we have started the registration process in the -- mainly in the nearby countries in the Eastern African area as well as few countries in Western Africa.
We hope that once the registration happens, which takes a few months, and after that, we are very confident that we should be able to have good sales. In fact, some of the vaccines, we are the only people who produce those type of vaccines. And we see a very good scope, very good potential.
At this point, we are at the stage where registration and all these administrative issues are going on. But probably, say, in 6 to 10 months' time, we should go ahead and by the time we get the registrations in a few other countries. But at the same time, we will start selling in Tanzania itself because there, we have already got the registration.
Apart from that, we have also invested in a trading company by the name of Thrishool, where Hester has 5-0, 50% equity. Through that, also, we are pushing our local sales in Tanzania.
To answer your question in a quantifiable manner, sales in Tanzania will start fast and in around 6 to 8, 9 months, the sales will start to other countries. The scope and the potential is tremendous. It's just a matter of time, the registration process, et cetera, to -- for us to overcome that.
So at -- with our current capacity in Tanzania, how much sales can we generate at optimum capacity utilization?
Around USD 25 million.
Okay. Okay. That's actually pretty high given our current scale. If you are able to achieve that, tat will be commendable.
Yes. But any vaccine plant anywhere in the world, you cannot construct smaller capacity plants and then grow modularly as and when you get business. The capacity is derived from the freeze drying capacity that you have, the incubation capacity that you have, et cetera. So whether in India, in Nepal, in Tanzania, our capacity have been big right from the beginning, and it is a normal issue. It is not one of kind situation in biologicals.
Sure. And then, sir like when do you expect to reach the $25 million kind of revenue that we can generate from our existing capacity in Tanzania? In how many years we can ramp up?
I think it should take approximately 4 years to 5 years for us to reach that turnover.
Okay. Okay. And the margins will also be in line with our Indian operation affairs?
Yes. In fact, they'll be better over there in terms the realization prices are more in Africa, but let's go at the worst-case scenario in line with the Indian profitability.
Sure. Sure. And sir, if we go through your balance sheet, you have a CWIP of around INR 145 crores. So one will be the COVID vaccine facility, which will be there, COVID vaccine facility. Apart from that, anything else which is there in our CWIP?
Yes, yes. One is the BSL-3 laboratory for manufacturing the Bulk Antigen for COVID, but now with COVID going, we are trying to repurpose that facility and look -- okay, just a minute. Sorry, our CFO will answer this because I just misunderstood probably.
So in the CWIP, apart from the COVID facility, we have the Fill-finish facility, which is under construction, which we have given in the press release that is getting completed in the coming quarter.
So that is expected to double our vaccine capacity in India?
Yes. In this quarter 1 that goes on stream when it is commissioned, yes, and it should happen in less than around 60 days time.
Sure, sure. And sir, for next year also, how do you see growth in poultry and animal health care divisions in domestic markets?
I think one should keep in mind that we are in the agriculture sector, animal husbandry comes in agriculture sector. The opportunity in India to grow in the agriculture sector is high. And within the agriculture sector, the easiest way to double the income of farmers especially those who have small chicken or cows in their home, to improve the productivity of those production animals. That way, their income will go up much more faster than while improving the production capacity of their agriculture land.
So the scope is tremendous in terms of health products, biologicals, and it is something which is going to grow in leaps and bounds. Also, the Government of India has put a very big focus on animal husbandry. They are getting into immunization, eradication programs for animal diseases. As you are aware, government of India -- not only India, the world has taken up eradication of PPR in sheep and goats. So the awareness campaigns are going up. So the potential as for us seems to be very big.
[Operator Instructions] The next question is from the line of Nirav Seksaria from Living Root Capital.
Hello, am I audible?
Yes, you are.
Yes. Sir, I just wanted to know, in the opening remarks, you've mentioned that poultry health care dependency has reduced. So at what process could we as well normalize going forward?
Your voice is coming in waves. But as I understand, you are looking at the -- your question is what would be the ultimate contribution for the poultry health care division. Is that right?
Yes, going forward, what percent could we assume it to be?
See, from 100%, we had gone down to 75%, 70%. And today, it is 6-0, 60%. And we would want to grow both the poultry as well as the animal health on a one-to-one basis or maybe plus/minus 5% or 10%, 60-40%, 40-60%. This is what our desire is.
But also to mention that the animal health care division today in India has a much bigger scope because immunization programs are coming up and the number of vaccines required by the government of India are increasing as well as I was just answering the question of the earlier person that the agriculture sector for it to grow in leaps and bounds, the income of a backyard farmer has to grow in order to get a good percentage of the growth in that industry.
So I think overall, all put together, I would not be able to give an exact figure on a ratio type, but we will try to run both the horses and continue to run both the horses, notwithstanding the third horse which we have is the Petcare business, which is also a sunrise industry in India at this point of time. My answers have been very subjective, but I'm not able to give precise figures.
Okay sir. And sir, could you also talk about the potential of Petcare business in India?
The Pet business of all companies in animal health is the biggest division rather than poultry and large animals. So this is all that I can say. With increasing incomes of households in the country with the definition of family changing, the pet -- and having pets, it goes up that is what history shows looking into the western countries, et cetera. And this trend is also coming up in India.
At the moment, the number of pets related to the population are definitely less, but this is going up in a very -- at a galloping rate. I think it is growing at around 20% on a year-on-year basis, higher than the poultry or the animal health care.
The next question is from the line of Keshav Garg from Counter Cyclical PMS.
Sir, last quarter, you indicated that INR 43 crore revenue that we did in animal health is sustainable, but in this quarter, it has halved to INR 21 crore level, which is half on a quarter-on-quarter basis. So is this a one-off and sir going forward, sir, on a quarterly basis, so what kind of number should we expect INR 21 crore or nearer to INR 43 crores per quarter.
Just a minute. You are talking about quarter-to-quarter or you're talking about Q3, Q4? Are you talking about corresponding Q4, Q4?
No, I'm talking about quarter-on-quarter, Q3 -- Q4 versus Q3.
Q4 versus Q3 Okay. So in -- see, what happens in immunization programs, sometimes, it all depends upon when the orders are placed by the government, okay? Now if the order comes and if that has to be given at a particular time, then that quarter sales goes up, then the next quarter is a bit low. So we have to make sure that over a period of time, we have to balance out this business. And then we have to take it further because -- just a minute, let me look at some figures if I have in my hands.
Yes. You see, even if you look at our press note, there is an unexecuted order of PPR vaccine, which is about to come. The PPR immunization program got a little bit delayed because the government was focusing on the lumpy skin disease. Now if these situations come up suddenly in between, it definitely impacts us as a seller of these vaccines, but I mean -- but that's the way it is.
Basically, sir, back to foreseeing what you said, us again regaining the mid-30s operating margin that we were doing earlier? And what has to happen for that to happen?
Yes, a good question. We ourselves are striving towards that, point number one, okay? How do we do it? We get -- now with animal health with the health products, margins are relatively lower than the vaccine. So what we are trying to do is, at the end, even if the gross margins are less, but at the EBITDA level, if we are able to increase with more cycles of the health products, et cetera, because the time to turn around a health product cycle is less than what it is for vaccine.
So vaccines are more profitable at a gross level, while in terms of turnover, if we can do more cycles, it will improve the EBITDA level, which will again improve the bottom line.
So -- and even if you go to see quarter-to-quarter basis, Q2, it was INR 9 crores, and in this Q4, it is around INR 10 crores. So -- yes, it's just a margin at 10.9%. So from 10% to 11%, so 10%.
We are working on it, and we are very conscious of this, be rest assured, we will restore our margins in -- probably not in an extreme short time in a few quarters, but overall, a year's time or so, we will get back to those margins. It is a mandate. It is sacrosanct for us to ensure that our margins are again restored to that level and the tough part is that the earlier margins were based only on vaccine sales, and now we are going to strive for these margins with vaccines as well as health products.
But nonetheless, having tasted blood, I mean that's the same thing. Having tasted good margins, we are not going to leave it at that.
Sure, sir. And sir, also, lastly, in our segment revenue in the consolidated figure, sir, there is one other segment, which is INR 8.8 crores revenue and INR 3.4 crores PBT. So sir what exactly is this?
Yes. So the other income is some pharmaceutical products, which we have exported to Africa. So that did not qualify to come in these 2 divisions. Therefore, we showed it separately.
Sure sir. And sir, lastly sir, in your segment, we think that our numbers are bottomed out in this fourth quarter and going forward, how things could pick up or more pain is left?
I would say that, I mean, optimistically looking, we are seeing that things will go up because there are these immunization programs, et cetera, all these things. But I don't think so there is anything like bottoming out or anything of that. Even in this quarter, we have shown improvements over the previous quarters, et cetera. So I think we are -- we hope to grow at a higher rate in this year than what we grew last year for sure as well as improving the bottom line.
[Operator Instructions] The next question comes from the line of Shikhar Mundra from Vivog Commercial Limited.
For the CapEx coming in, what is the capacity in terms of billion doses of vaccine?
From 4.8 billion, we will go into multiplied by 2 approximately 9 billion doses.
Okay. So the revenue potential is roughly like around INR 250 crores. Is that right?
You can say that at the same time, we must consider. See, in any biological plant to estimate the exact production capacity is not possible. If we produce more vaccines of the large animal where we sell products in 100 dose size, as against in poultry, we have 2,000 dose size products. So the same freeze dryer, the same number of vial, one vial will contain 100 doses of a typical goat pox vaccine or a PPR vaccine. But if you are freeze drying a poultry vaccine, it will have 2,000 doses.
So this is an approximate figure. It could swing 20% plus or minus. It could even go beyond that. It could even go above.
Got it. Got it. And will the focus will be more towards the animal side? Or it will be a mix between animal and poultry?
Same, the focus is going to be on all 3 animal health care, poultry health care and Petcare. I would want to make it clear there is no dilution of energies or focus amongst any of the divisions. It is just that if there are market forces like what are there today in the poultry industry, if that pulls us down, we can make it up with the animal health care or Petcare or if anything with the animal, we can make it up with poultry. The focus continues. We had until now been known as a poultry vaccine company, and we are very proud even about that fact. So the focus on poultry does not even diminish by 0.1%.
Okay. All right, all right. Got it. And with respect to Nepal, like what is the revenue potential for the Nepal subsidiary?
At full capacity, we can do approximately INR 50 crores.
All right. All right. And what's the out -- like how fast do you think we can ramp up over there and like?
We are at 20. First, let us reach 40 and then we will ramp it up. It will require 6 months with marginal investment to take the capacity to double.
No, I meant with respect to the sales because right now, we are doing INR 12 crore sales from Nepal so?
Okay. For sales, we are a lot dependent on the PPR tenders of FAO. FAO has committed they are going to increase it because the world has taken up to eradicate PPR. We are waiting for tenders to come up. In fact, we already have orders in hand of around INR 15 crores, et cetera. In Nepal already of various tenders. So it's -- everything is in process. But yes, we are dependent on tender business.
At the same time, we have started looking at the domestic market and we have already got a small share in the domestic market, and we will make sure that we also now generate revenues from the domestic market.
And how big do you think is the domestic market of Nepal?
For poultry vaccines, it could be around INR 20 crores, INR 30 crores. For other species, I have not -- I do not have the data with me.
All right. And one more thing regarding the animal health care segment in India, how big is the segment?
I think it is some INR 5,000 crores to INR 8,000 crores or something. I don't even -- I don't have the figures right now.
I just wanted to get an idea.
No, no, it's very big. We are just like a small drop in the ocean at this point of time. The potential is very high.
[Operator Instructions] The next question is from the line of Keshav Garg, Counter Cyclical PMS.
Trying to understand that, sir. Has our debt peaked out or it will be [Technical Difficulty]
Has our debt peaked out or will we borrow more? I think that is his question.
Okay. So right now, I think we are at our highest borrowings, which we have taken, but which will be going down only. We don't have any plans for taking any additional loans or debt at this point of time.
Sure sir. And sir, also the grant of INR 24 crores last year and INR 6 crores the year before, going forward also, some more [Technical Difficulty]?
We wish grants keep on coming every year on the lighter side, but these grants are related to specific projects. We had the COVID project, and we were working on some other projects internationally. And so it's something, which will be project-related, assignment related. So we will take it forward in that manner.
Sir, also, what is the average cost of our debt?
Sorry, average cost of?
Debt. Sir what is the interest rate we are paying?
Interest?
Average all borrowings together come and works out to be around 8%.
8%.
Okay, sir. And how much more CapEx is required for [Technical Difficulty]?
How much -- your voice was not clear?
For an existing project?
Can you repeat your question?
Sir, what I'm trying to understand is that how much further CapEx is required for all our ongoing projects to get completed?
So currently, there are no additional CapEx is required for the ongoing projects. There are some INR 12 crores -- INR 10 crores to INR 12 crores is payable for the capital creditors for the existing retention money we'll have, that's it.
And if we embark on any additional capital, which is unlikely, then of course, that's a different situation. But we are covered fully for the current expansions.
Sure sir. And [Technical Difficulty] sir what kind of peak revenue will we be able to generate on an overall basis if we consolidate all our [Technical Difficulty]?
Sorry to interrupt sir, but the line for you is very bad.
Yes. I mean, we are not able to hear anything properly.
Sir, I'm trying to understand once all our ongoing projects [Technical Difficulty]. Sir, I'll come back in the queue.
Yes, I tell you, I'll -- let me answer about what is the total revenue possible? So INR 50 crores in Nepal, USD 25 million to USD 30 million in Africa. So that with how many -- so that is how many rupees, INR 200 crores over there. And over here, we can do an additional INR 200 crores, more than what we are doing right now, INR 400 crores, INR 500 crores, INR 600 crores, INR 700 crores -- INR 650 crores -- INR 600 crores.
And all the capital is already invested for this potential.
And sir, in how many years you expect to reach INR 600 crores revenue?
We are trying our best to do it as early as possible. I think it should take approximately 3 years' time for us to reach that.
The next question is from the line of Yogesh Tiwari from Arihant Capital Markets.
Am I audible?
Very much.
Sir, my first question is on poultry division. So in the poultry division in Q3, our revenue was about INR 32 crore, which has increased to about INR 36 crores. So what changed in Q4? I mean what is driving the recovery in poultry?
No, it is the industry which is there and some disease incidences, et cetera. And probably now the poultry industry has reached such an abysmal low level that the only thing that can happen to it is improvement from here on.
And another thing is that earlier, we were selling more vaccines. Now we also have a focus on health products. So our range has also gone up. With the same marketing team, we have more products to reach up to the end client, the poultry farmer, the poultry Institute, the poultry egg or the meat producer. So it's a combination of all these things.
And sir, out of the 8% decline -- what would be the bifurcation between vaccine and health care in poultry out of this 8% decline?
8% on a quarter-on-quarter basis. So I think the vaccine degrew by 15% and the other increase -- and the health products increased by 6-0, 60%.
Please keep in mind that the poultry base is high. We are the second largest in poultry in India. While health products, we are at a very low level. So the multiplying factor in itself is very small. So that also do keep in mind.
Sure, sir. And finally, on the poultry division, because of the challenges in the division, are you seeing any consolidation happening wherein some players have exited the market or maybe they organized it, any consolidation or any structural changes?
No, I don't see any structural change at this point of time. The number of integrators remain the same, the poultry producers remain the same. We do not see any structural change.
In fact, structural changes are actually now to be seen in the cattle rearing industry for milk because there, there is some consolidation that is happening, awareness that is happening, scientific tools that are being used, et cetera.
Ladies and gentlemen, that was the last question for today. I now hand the conference over to the management for closing comments. Over to you, sir.
Thank you all. Just as already well summarized by Priya and you would have read in the press note, sales have been good, profits have come down a little bit, but there is a lot of potential all across in Hester India, Hester Nepal and Hester Africa notwithstanding the health product business, which is growing as well as the pet business.
Please continue to have your faith and confidence in us and trust me, we are here to make sure that we become one of the best animal companies in the world. Thank you.
Thank you on behalf of ICICI Securities [Technical Difficulty] this conference call. Thank you for joining us, and you may now disconnect your lines.