Sanofi India Ltd

NSE:SANOFI

Earnings Call Analysis

Sanofi's Q3 Showcases Steady Strategic Progress

Sanofi India's domestic sales remained flat this quarter, but excluding certain impacts, a 4% growth was noted. No significant increase in the sales force is planned, currently counting 1,500 representatives, including 1,000 dedicated to diabetes. The operating profit margins stand at 30%, with consumer healthcare outperforming by 8-10%. Despite price reductions due to National List of Essential Medicines (NLEM) policy affecting sales, Sanofi anticipates volume growth for its brands like Lantus. Looking ahead, Sanofi is gearing up for product launches between 2023-2025, which, while having long innovation lead times, are expected to significantly enhance growth profiles.

Steady Domestic Business with Underlying Growth Potential

In the latest quarter, Sanofi India reported that its domestic business remained flat. However, it's important to note that this figure does not reflect the full picture. After accounting for specific impacts, such as those from Soframycin and Lantus, it's estimated that the domestic sales would have exhibited a growth of around 4%. This adjusted figure provides a more nuanced understanding of the underlying performance of the domestic portfolio.

Progressing Towards a Demerger by Mid-2024

The journey towards demerging the company is on course and is expected to be completed by mid-2024. This move is seen as a strategic realignment and is likely to have significant implications for the company's operations and market focus.

Optimized Sales Force with No Significant Expansion Plans

Despite various dynamics in the market, Sanofi India is not planning any substantial expansion of its sales force. The current workforce, particularly in the diabetes segment with a 1000-strong sales team, is deemed to be robust for covering market needs. This suggests that the company is focused more on enhancing productivity and effectiveness rather than increasing quantity.

Blended Margins and Consumer Healthcare's Advantage

Sanofi India is currently operating with blended margins in the 30% range. A highlight is the consumer healthcare margins, which outperform the average by approximately 8% to 10%. This differential suggests a potential for stronger profitability in the consumer healthcare segment compared to the broader pharmaceutical operations of the company.

Addressing the Impact of National List of Essential Medicines (NLEM) on Sales

The implementation of the NLEM has led to a price reduction of Lantus, the company's leading brand, which impacts sales figures. However, it is anticipated that in time, the lower prices will drive significant volume growth, which will ultimately benefit the company. Additionally, Sanofi India is positioning itself for growth through new product launches planned between the second half of 2023 and early 2025. These launches, along with a focus on innovation, are expected to progressively contribute to the company's growth trajectory.

Potential Higher Growth Excluding NLEM Impact

While the NLEM has undoubtedly impacted the growth figures, internal estimates suggest that excluding the effects of NLEM, the company could have seen growth rates closer to 5.5%. This counterfactual analysis helps investors understand the intrinsic growth potential that may be overshadowed by the NLEM's price adjustments.

Restructured Business Units to Enhance Market Reach

In a strategic move, Sanofi India restructured from eight business units down to three at the beginning of the year. This change was designed to expand the company's reach to more doctors while maintaining the same representative base. This realignment shows a commitment to being more resource-efficient while expanding market presence.

Preparation for Consumer Healthcare Business Separation

Sanofi India's consumer healthcare business has operated independently within the broader company structure since the start of the year. This separation of operations serves as groundwork for the eventual division of the two entities into separate companies. Furthermore, the company's 'India for India' strategy includes plans to double down on the success of established brands like Allegra and deepen consumer engagement. There is also an intention to influence the shaping and regulation of the consumer healthcare market in India to unlock new growth opportunities.

Earnings Call Transcript 2023-Q3

[Operator]

Over to the management.

[Radhika Shah, executive]

Good afternoon, everyone, and a warm welcome to the investor call of Sanofi India Limited. My name is Radhika Shah, and I'm the Company Secretary for Sanofi India Limited. I have with me Mr. Rodolfo Hrosz, Managing Director; Mr. Vaibhav Karandikar, Whole Time Director and CFO; and Mr. Rachid Ayari, Head of Finance.

[Rodolfo Hrosz, executive]

All right. Good afternoon, everyone. I'm very pleased to introduce Mr. Rachid Ayari, currently the Head of Finance. All of you must have read the announcement made post the Board meeting on 8th of November that Rachid has been appointed Chief Financial Officer and Whole Time Director of Sanofi India Limited, with effect from November 1 -- from December 1, 2023. Vaibhav, at that point, will assume a global role with Sanofi Group, and will accordingly cease to be the CFO and Whole Time Director with effect from the close of the business hour on the 30th of November 2023, from which point, Vaibhav will also take a nonexecutive director role with the Board of Sanofi India Limited.

[Vaibhav Karandikar, executive]

Good afternoon, everyone.

[Rachid Ayari, executive]

Yes. Thank you, Rodolfo, for the introduction. First of all, happy Diwali for all the participants, and congratulations for Vaibhav. So it's a pleasure to be a part of Sanofi India, and looking forward working with all the participants.

[Radhika Shah, executive]

Thank you. Before we begin this investor call, two important announcements. First, please note that the proceedings of this meeting are being recorded. Second, please note our standard disclaimer that certain statements in this call may be forward-looking. The actual results may be affected by many factors that may be different from what is being envisaged in terms of future performance and outlook that is being discussed today.

Moving on to the agenda of this call. Today, we have -- we are going to talk about the performance of the company for the quarter and 9 months ended 30th September 2023 and also look at some of our product launches. The management will take questions from the investors and participants on the call, and the Q&A session will end sharp at 3:00 p.m. All investors and participants are requested to keep their questions brief and please avoid repetition.

I now hand over the call to Rodolfo and Vaibhav to take us through the presentation.

[Rodolfo Hrosz, executive]

All right. Thank...

[Audio Gap]

continue to work on...

[Audio Gap]

More to come in the future on that one. For the fourth pillar, go-to-market and operating efficiencies. We have also taken important steps forward. From the beginning of the year, as you know, we have reorganized from 8 to 3 business units, more customer-centric and more -- catering more efficiently to HCPs that use our products and prescribe our products on a regular basis. There are also 4 digital marketing pilots running the company at the moment that we believe can have a potential positive impact in the future as we invest with those pilots.

In the second bullet, when you talk about the trade organization, we have deployed a complete full-fledged trade organization in India, which did not exist before that has the responsibility and the objective of engaging our partners in the -- including distributors, retail chains, hospitals and institutions in a more structured way with better services provided from Sanofi to that. That organization is ramping up, and we expect that organization to have a positive impact in the months to come.

Third bullet on that fourth column refers to resource allocation decisions and operating efficiencies, where progress has been very significant. In the year-to-date, we have made an improvement in the -- in our OpEx base that is close to 10% of the total OpEx base. So we have become more efficient in our expenses to the tune of 10% of our base of expenses, representing something like INR 50 crores of improvement in efficiencies. That is very important and has a very important impact in the profitability of the company as well. Now coming back to the point on innovation on the next slide, please, you will see the projects that we are referring to. Can we go to the next slide?

[Radhika Shah, executive]

Vishali, can we go to the next slide, please? Thank you.

[Rodolfo Hrosz, executive]

Thank you. So these are the launches that have already happened or about to happen or plan for the near future. Frisium has been launched -- Frisium suspension has been launched in October '23; Sanoxaban and Carmada in December '23, it's planned for December '23; Soliqua, Insutage and Cetapin S are planned for 2024, beginning of 2024; Allegra-M and Allegra-D planned for 2025 and beyond. So important projects that have a very high impact in their respective categories and coming through with our commitment to innovate and to rejuvenate our portfolio and energize our portfolio. So with that, I think I hand it over to you, Vaibhav, to talk a little bit about the financial results.

[Vaibhav Karandikar, executive]

Thank you, Rodolfo. Next slide, please. So Rodolfo, in his opening remarks, talked about the fact that the NLEM impact, which was felt by the company where there was a significant reduction in Lantus, that part has been largely mitigated and we see a sales growth of 2% compared to the previous year in Q3. The domestic sales are largely flat, and that impact has been mitigated. One of the growth pillars, which Rodolfo also talked about, was operating efficiencies. And while we focus on the layers and span in the sales and marketing side of the operating expenses, there was also a focus on structure cost as well as G&A. And largely the operating efficiency, which Rodolfo alluded to, have kicked in. And that's one of the reasons why the profit before tax has increased by 15% versus last year, although the sales have been largely flat. But this shows that the focus on the growth pillar of operating efficiency is working and is yielding results.

Another part, which I also wanted to highlight is the commitment that we had made that in case of a price drop in Lantus in NLEM, we would relook at the purchase price of Lantus from which we are procuring from the group. And that was secured, and we said that we would maintain the profit margins of this product on a percentage basis. And therefore, that part is also achieved, which is also yielding -- despite the NLEM impact, which is fully effect on quarter 3, you can see that the profitability parameters are very, very healthy. The same applies to year-to-date as well. The sales are growing by 3%. Profit after tax is up by 15%, and the operating profit growth is at 16%. So all in all, a very healthy quarter in terms of performance.

Next slide, please. I think one more point which I want to highlight is it's not the performance -- the good performance is not isolated to quarter 3. If you look at all the 3 quarters of 2023, there is consistency in terms of the results. We are growing the operating profits versus the previous year, not in terms of absolute value only, but also in terms of percentage to sales. The operating profit as a percentage to sales has grown up by almost 4%, 5% quarter-on-quarter versus the previous year.

So you see a clear increase in terms of our profitability parameters, and it's reflected quarter-on-quarter. So there is a consistency and the India for India strategy that Rodolfo talked about is delivering results not only in an isolated quarter like we saw, but it's delivering results across all the quarters of 2023. So that's the key message in terms of the quarterly results. Back to you, Rodolfo.

[Rodolfo Hrosz, executive]

All right. So let's go to the next slide, please. So basically, I wanted to give you a bit of an update, a quick update on the demerger process. So in the rest of the world as well as in India, we have discussed implementing the global stand-alone organization for the consumer healthcare business is the best platform to unleash its growth potential. In India, we're following a time line and a process that we can see in the next slide, please.

With those milestones already achieved and some of them are ahead of us, right? So back in May 10, 2023, we achieved Board approval for that separation. End of August, we had a filing with stock exchange and SEBI. Early October, filing with NCLT. November 10, 2023, court order to convening the shareholder and creditors meeting was issued. December 18 is the date in which the meeting of the shareholders and creditors for voting the resolution is scheduled. NCLT approval and subsequent listing expected by mid-2024. So that's the timeline that we -- it's largely in line with the time line that we had anticipated and discussed with all of you last quarter. We continue to be on track with that time line and expect to be able to execute by mid-2024 as it was the case from the beginning of the demerger. So I think with that, we come to the conclusion of the slides of the presentation.

[Radhika Shah, executive]

Thank you. That's it from a presentation standpoint. Thank you, Rodolfo and Vaibhav for the presentation. We will now proceed to the Q&A session. In this session, we will respond to the queries within the boundaries of our internal policies and SEBI regulations. As required by law and our policies, we will restrict our responses to clarify on matters which are already available in the public domain through our annual reports, our quarterly financial statements and other disclosures made to stock exchanges.

There are many granular aspects of our business or financials, such as product-wise or state-wise or even therapy-wise sales or margins or profitability, which we consider confidential. And hence, we will not be able to comment on these topics. Also, we do not provide any earnings guidance. And hence, we will not be able to respond on queries pertaining to future business, future product launches, margins, profitability or CapEx. You will please raise your queries accordingly.

[Operator Instructions] Handing it over to Vishali.

[Operator]

With this, I would like to invite our first speaker, Mr. Abdulkader Puranwala from ICICI Securities.

[Abdulkader Puranwala, analyst]

Yes, yes. So my first question was basically pertaining to the top line growth, so as it was mentioned earlier that the domestic business was flat this quarter. Just wanted to understand that how the domestic portfolio growth would look like if we exclude the Lantus impact? Yes. So that is my first question.

[Vaibhav Karandikar, executive]

So the sales -- the domestic sales, the retail business, excluding the Soframycin impact and Lantus impact would have grown by around 4%.

[Radhika Shah, executive]

Abdul, did that answer your question?

[Abdulkader Puranwala, analyst]

Yes, that did. So I have a follow-on as well. So from a sales force perspective, I mean, what is the current strength right now considering that Lantus can be a mass product now? So are we looking to add further field force here or for any particular brand, if you'd like to highlight?

[Rodolfo Hrosz, executive]

So currently, we don't have a plan to make significant changes in the or expansion in the strength of the sales force. We believe we today have a very strong sales force for all the categories in which we are operating. And particularly for diabetes, we have 2 strong teams operating in the market and covering all the market properly. So there is no expectation of significant increase. Some changes and some adjustments might happen as a function of certain launches that come, but not significant.

[Abdulkader Puranwala, analyst]

Sure. And sir, what would be the absolute count now in terms of your sales force?

[Rodolfo Hrosz, executive]

1,000.

[Radhika Shah, executive]

For diabetes.

[Rodolfo Hrosz, executive]

For diabetes, 1,000.

[Abdulkader Puranwala, analyst]

Okay. And overall, that number would be?

[Rodolfo Hrosz, executive]

Overall, total number is 1,500.

[Operator]

Our next speaker is Mr. Girish Bakhru from OrbiMed.

I think there is some technical issue. So we will move to the next speaker, which is Ms. [ Palak Shah ].

[Unknown Analyst]

Just one on the consumer business. I know you're not splitting off the segmental revenue and as well as the margin. But just as a qualitative, how far are margins on the consumer business versus the core business that we report today? And secondly, given that a part of our business is actually coming from -- imported from the parent company and we have a fixed margins, how far are those margins from the current reported margins for Sanofi?

[Vaibhav Karandikar, executive]

So like I mentioned during the last call, if you look at the overall margins today, the operating profit margins of Sanofi, the blended margins currently are in the 30% range. So the consumer healthcare margins are almost around 8% to 10% more than the blended margins. And like you rightly alluded to the pharma business, there's an imported component, and therefore, the overall margins are lower in the pharmaceutical business.

[Unknown Analyst]

Got it. But -- and this after the Lantus price reduction, these margins have remained static and most of the impact of the price reduction has been taken up by Sanofi?

[Vaibhav Karandikar, executive]

That's correct.

[Operator]

With this, we will move to next speaker, Mr. Neeraj from Axis Securities.

We are facing some technical issue with Mr. Neeraj. We are moving to next speaker, Mr. Anil Chaurasia from SMIFS Limited.

[Anil Chaurasia, analyst]

Sorry, no question from myself.

[Operator]

We will move to Mr. -- our next speaker, Mr. [ Yagnesh Desai from Fifth Investment Management Limited ].

[Unknown Analyst]

Yes, I don't have any questions. My question has been answered.

[Operator]

We will move to next speaker, Mr. Vinay Bafna from Bajaj AMC.

[Vinay Bafna, analyst]

No. I don't have any questions either.

[Operator]

We have our next speaker, Mr. [ Mayank ] from Axis AMC. Unfortunately, Mr. [ Mayank ] has dropped.

Our next speaker is Mr. Rahul from IIFL Securities Ltd.

[Rahul Jeewani, analyst]

So sir, you have taken very good efforts in terms of optimizing your cost base, which is driving the profit growth this year. But if we see our top line growth is still very muted, even on Lantus and an extra divested portfolio basis, our growth in third quarter was only 4%. So any efforts which we are taking into our growth profile versus IPM?

[Rodolfo Hrosz, executive]

Yes. Very good question. Thank you for the question. You need to take a couple of points into consideration. One is although the NLEM impact is offset by an adjustment in the margin between the Sanofi Group and Sanofi India Limited, it does have an impact in our sales, right? So there is a reduction on the price of our biggest brand that has an impact in that equation. We believe that over time, and we are seeing indication of that, that reduction in price of Lantus will lead to a significant increase in volume. That will then be -- end up being positive for Sanofi India Limited altogether, right? But it takes some time for that to happen. So that's factor number one.

Factor number two, you will have seen the slide with the multiple launches that we have lined up between the second half of 2023 and the beginning of 2025. So in fact, some of these products we're already bringing to market and about to introduce, some are planned for the beginning of next year. But those who have a significant impact in our growth profile and growth trajectory, but it will take some time, right?

Innovation in pharmaceuticals has a long lead time. So from the time we set out to strengthen the innovation pipeline, only now we're able to bring the products to market effectively. And then this product goes through their ramping up curve and a separation curve, and then beginning to impact significantly our growth profile as well.

[Vaibhav Karandikar, executive]

And maybe just, Rodolfo, to add to what you just mentioned. I think while we share the sales growth, excluding Lantus, I think Lantus was not the only product impacted by NLEM. For us, there were other products impacted by NLEM like Amaryl, Cardace, Clexane. So while the impact is not as significant as Lantus, the fact is that the results are after considering the impact, including these products as well. So just to set the context, it's not only Lantus which impacted the numbers, there are other sets of products as well.

[Rodolfo Hrosz, executive]

Did we answer the question?

[Operator]

Mr. Rahul has dropped -- has muted himself. Sir, request you to unmute yourself and let us know if we have answered your question.

[Rahul Jeewani, analyst]

Yes. So then can you also please follow to what would have been our growth excluding the NLEM impact for all products instead of just Lantus?

[Vaibhav Karandikar, executive]

I think it should be in the range of [ under ] 1.5%. So maybe 5.5% growth would have been there.

[Rahul Jeewani, analyst]

And so -- and we had launched with Toujeo a couple of years back, maybe 1.5 years back. So does the launch of Toujeo is also impacting the growth which we are seeing on Lantus? Or you think that hasn't had any impact as far as Lantus' growth is concerned?

[Rodolfo Hrosz, executive]

Toujeo has been launched 3 years back, right? So the impact from Toujeo or Lantus may have happened, but we don't think that today it is a factor. Toujeo, in fact, is growing very fast. It's a strong brand, growing very fast. We believe it will continue to do so. It's a very, very high-quality medicine that serves to important medical needs, and our HCPs continue to promote and use the brand and adopt the brand more and more. But we don't see the impact of Lantus on -- on Lantus from Toujeo at this point.

[Rahul Jeewani, analyst]

Sure, sir. And just one last question from my end before I rejoin the queue. So any plans of launching insulin aspart in India?

[Rodolfo Hrosz, executive]

No. No, the answer is no.

[Operator]

Our next speaker is Mr. Himanshu Upadhyay from o3 Capital.

[Himanshu Upadhyay, analyst]

And so my question is on the media call, the strategy, what we stated. So we stated that one important metric for us is to reach more patients, okay? And what -- on the general medicine part, what have we done to increase our breadth and depth in last 1 year? And how have these parameters changed in last -- when? So even if you don't give the absolute figure, but can you give a percentage increase in some of these parameters? And can you give also an idea of our business is prescription led, okay?

So in last 1 year, how many doctors or prescription have we started getting from 2 to 3 entire towns and cities versus 2 years back or 3 years back, so that we can understand the progress, what we have seen in terms of depth, okay? And what we also see is one very interesting part was that we are starting to get more products on insulin side of your launches, okay, 3 products, which is quite heartening to see. But to be thinking of taking these drugs to even interior of the market or these will be focused on top-tier cities only? So these are some of the things on more qualitative aspects, if you can give some idea on.

[Rodolfo Hrosz, executive]

Right. Well, thank you for the question. So I think that -- a couple of questions, a few questions inside of your question. So let's try to tackle the different parts. So yes, we have made a -- we have expanded the reach through the reorganization that we've done in the beginning of the year from the 8 business units to 3 business units. We have driven an expansion of reach to more doctors with the same base of reps that we have in the market, right? So that is one component. And then I'm actually going to get an update from the team in terms of how many exactly [ where we're most likely to increase today ], if we can get this increase, which is the question that we got here.

But more importantly, more important than the increase we already have been able to obtain in terms of coverage in the year-to-date. We are, like I mentioned before, we're studying the potential of partnerships with other pharma companies in India to extend the reach of some of our more established brands in the portfolio. So this is a study that is ongoing. And then the results, if we get to result to conclusions that are positive, that indicated it is possible to extend reach through partnerships, this would be something that you'll be hearing from us in the coming months, in the coming quarters.

We're currently looking at it and exploring it as it is part of the India for India strategy, it's part of our key elements of the India for India plan, it is expansion of reach through partnerships. We're currently in the process of the study and analyzing whether there are possibilities to effectively extend the reach of our brands. Our brands that are well established, they have a lot of equity and the potential for that -- the equity of those brands to be explored in more cities with a more capital distribution is there, and we agree with you. We're exploring that different ways to get there. So the increase in the reach that we have made so far in 30,000 doctors is what I get from the team, the latest number is an increase of 30,000 doctors from the...

[Radhika Shah, executive]

Sorry, Vishali, any issue? Or we can continue on the call?

[Operator]

We can continue.

[Rodolfo Hrosz, executive]

All right. So I hope you heard -- you got the point there.

[Himanshu Upadhyay, analyst]

Yes, I got it. And it is Tier 2, Tier 3 towns are also contributing to the growth, means that...

[Rodolfo Hrosz, executive]

I think we're going to be able to go to expand more in Tier 2, Tier 3, if we establish, if we define and establish partnerships for increase of reach. Through our own base, we think we -- the improvement we have made is mostly Tier 1.

[Himanshu Upadhyay, analyst]

And second question is on the consumer healthcare separation of entity, which is going to happen. What is the progress that is happening on that company? Also, if you can give some insights on that. And is the separate marketing and finance and all those things have been already done? And what are the gaps they are thinking? What is the strategy? So just to get an idea because, let's say, in next 6 to 9 months, it will be a separate company and having some idea will be helpful for us.

[Rodolfo Hrosz, executive]

Yes. So no, that is a good question. We've run that business already separately inside of Sanofi India Limited. So today, consumer healthcare is a business unit inside of Sanofi India Limited with dedicated resources, which will make it easier for the separation when the separation is finally approved and executed, right? But as of today and from the beginning of the year, the consumer healthcare business has operated quite independently within the Sanofi India Limited as a step of preparation for the future effective separation of the 2 companies. So it's already running with those independent seats, if you're asking about that.

Now the second part of your question, I think, was about gaps that we would be looking for. I think that we mentioned a number of gaps in our India for India plan, right? Doubling down on the like -- on the success of Allegra, deepening the consumer understanding. And I think those are actually the key 2 main areas that we believe we will be able to accelerate in the BD, along with improving the policy for consumer healthcare in India. We believe we can shape the -- help to shape and contribute to shaping the market, shaping the regulation on consumer healthcare in India, which will allow to unlock growth opportunities for Sanofi and for the market in general.

In India, consumer healthcare is still sub-developed in terms of regulation, underdeveloped in terms of regulation. Most of these products that today are in consumer healthcare, so does OTC in most -- in many countries around the world. In India, there are still prescription, there is a space for us to make that externalization in India and then accelerate the business.

[Operator]

We'll move to next speaker, Mr. Yasser Lakdawala from M3 Investments.

[Yasser Lakdawala, analyst]

Yes, I just had a sort of question on how are we looking at Toujeo and Lantus as a strategy because one sort of franchise is now undergone price control. You could probably push it a lot more deeper. But at the same time, we, as a company, globally also try to maintain margins. We want to maintain high margins. So it makes sense for us to sort of push Toujeo as a franchise, right? So how do we sort of handle this sort of quandary? Do we go deeper in the Tier 2, Tier 3 markets with Lantus, look at Tier 1 markets as more of where payers are able to sort of buy or purchase Toujeo? So what is our broad level strategy with regards to our insulin portfolio?

And just building on top of that is as an entity, some of our global peers like Novo Nordisk and Eli have sort of taken this sort of field of the research and development and launches to sort of a whole new paradigm with the launches of GLP-1, GIP-1s -- GIP. Now we don't really have that development pipeline coming through. So what is Sanofi as from the parents' standpoint and from an India standpoint, how do we build this business going forward? Because eventually, we will be putting in a lot of marketing effort behind Toujeo and Lantus, but say, at 5-, 10-year -- from a 5-, 10-year time frame, the industry paradigm might shift, right? The treatment paradigm might shift. So if you could help us understand that, that would be great.

[Rodolfo Hrosz, executive]

Absolutely. So thank you for the question. Let me help you to understand a little more the dynamics of the insulin market, right? So first of all, when we talk about Lantus and Toujeo, these are products that are developed and catered to different patient profiles. So it isn't about Tier 1 versus Tier 2, in which city or which market do we push one or another or do we promote one or another, they are promoted simultaneously in all geographies to different patient groups based on the differences between the products themselves, right? So that's a clarification point number one. So there is a road and an opportunity for and a space for Lantus that is very large. And there is an opportunity for Toujeo also very large in the Indian market. And we market them both simultaneously for this different group, groups of patients. So that's an important discussion that I think helps you to understand and model a little bit the dynamics of the insulin business.

The second part of your question is about the innovation pipeline, right, and about what's coming in terms of reenergizing this portfolio. As you have seen and as I have mentioned earlier even in this call, we're about to bring to market Soliqua, a very innovative product, a very distinct product from Sanofi that will make an inroad into the premixed segment. So that's an opportunity of expansion of our business as we don't currently play in that premixed segment. We'll be able to do so with the introduction of Soliqua, which is up and coming.

Soliqua is a very significant step-up in terms of solution for health care patients, health care professionals and patients compared to the existing products that play in that category today. Moreover, you will have heard and you alluded to the global pipeline of Sanofi on diabetes. You will have heard and as we have mentioned already in previous calls, the group has acquired recently a company called Provention Bio, which has developed a breakthrough best-in-class, first-in-class treatment for diabetes type 1. As you may know, as of today, there is no treatment for this disease, for diabetes type 1.

And TZIELD, the product that is -- that belongs to this organization that Sanofi just acquired, is the first treatment for diabetes type 1, and it delays the onset of diabetes type 1 and has already been approved by the FDA and is already being commercialized in the U.S. So that you can see then the pipeline for diabetes for Sanofi India is quite robust, right? So around the corner, we have the introduction of a major product, Soliqua; and down the road, there is a potential for us to bring to India also TZIELD and then complete breakthrough in a best-in-class -- with a best-in-class, first-in-class solution for diabetes type 1 as well. So actually, the pipeline for diabetes is quite promising for our business, and we're very enthusiastic about it.

[Yasser Lakdawala, analyst]

That was really helpful. I think a broader level of question is we've sort of gone through a lot of portfolio restructuring, either probably driven by the parent and done in India as well. We've distributed a lot of the cash to shareholders via dividends. But ongoing, I think this business is probably going to be generating about $75 million to $100 million or almost INR 500-odd crores of cash flows. You don't really -- you're not putting up any massive manufacturing sort of capacity in the country. So is there any thought process from the management to probably go out now that you'll have a consumer healthcare business that is separate, probably be a bit more aggressive and be tactical and sort of buying out certain brands? Or will Sanofi be more sort of driven from their internal pipeline and internal sort of brands? If you could help us understand the sort of inorganic strategy if you do have one for India, that would be very helpful.

[Rodolfo Hrosz, executive]

Sure. No. Yes, we're constantly looking for opportunities, organic and inorganic. That's the big advantage of a large multinational company like Sanofi, we benefit from the global pipeline of innovation that comes from the company. But we are constantly looking and scrutinizing the market for different opportunities. In fact, when we discussed the demerger of CHC, we even touched on the fact that it is part of the plan to carefully look for opportunities for inorganic growth for the CHC business. That applies also for the other categories where we play in India. And it's an ongoing process of constantly looking for opportunities. If the right opportunity appears, we'll be ready to make moves.

[Operator]

Our next speaker is Mr. Hrishikesh Patole from B&K Securities.

[Hrishikesh Patole, analyst]

Nothing from my side.

[Operator]

We move to next speaker, Mr. Umang Shah from Edelweiss.

[Umang Shah, analyst]

No. So most of my questions have been answered.

[Operator]

Our next speaker is Mr. [ Bhavan Sao from Nippon AIS ].

[Unknown Analyst]

My queries have been answered. No further from my side.

[Operator]

Our next speaker is Mr. [ Saheer ]. Unfortunately, Mr. [ Saheer ] has been dropped out. We'll move to next speaker is Mr. [ Dupay ].

[Unknown Analyst]

I don't have any questions.

[Operator]

Our next speaker is Mr. [ Dhruv Duggal from Silver Mount Capital ].

[Unknown Analyst]

There are no questions from my end at this time.

[Operator]

Our next speaker is Mr. Dhiraj Sachdev from Roha Assets.

[Dhiraj Sachdev, analyst]

My questions have been answered.

[Radhika Shah, executive]

Thanks, Vishali. I think we've answered most of the questions. I think we can now move on towards closing this call. We thank all the participants for attending this investor call. It was a great interaction. Please feel free to write into the management for any further questions.

[Rodolfo Hrosz, executive]

Well, thank you, everyone, for joining this call. Thanks for the great interactive session. We had made our efforts to give you clarity on your questions. Stay safe. Take care. Thanks once again for joining. Happy Diwali and Happy New Year.

[Radhika Shah, executive]

Thanks, Vishali. Thank you, everyone.

[Vaibhav Karandikar, executive]

Thank you all.

[Operator]

We now conclude this session. You may now disconnect your lines. Thank you all for joining.