Hester enters veterinary diagnostic segment, Q3 net profit Rs 2.76 crore

AHMEDABAD: Animal drug maker, Hester Biosciences Ltd forayed into veterinary diagnostic market with its new subsidiary Diavetra Lifesciences Pvt Ltd to carry out production and marketing of veterinary diagnostic kits and instruments for small & large animals.

Talking to ET, Rajiv Gandhi, managing director, Hester Biosciences Ltd said "Within next six months the production for veterinary diagnostic kits would begin". He further said that there is a growing trend of using veterinary diagnostic kit in India and looking at the growth potential the company is also preparing three year forecast report for its veterinary diagnostic business.

The company would address the demand in domestic market and would concurrently begin export, especially targeting the European, Asian and African markets. As per market estimates, globally veterinary diagnostic market is worth $ 2 billion.

Indian veterinary market already has presence of companies like Virbac Animal Health India, Cadila, Concept Pharma, Intas Pharmaceuticals, Pfizer Inc, Novartis AG and Wockhardt Ltd, who are mostly into manufacturing of veterinary drugs or vaccines. However, as per experts, there are fewer players in veterinary diagnostic market in India.

On Tuesday, Ahmedabad-based Hester Biosciences reported a net profit of Rs 2.76 crore for the third quarter (Q3) ended on 31 ^stDecember 2012 compared to Rs 2.63 crore for the previous corresponding period. Explaining the minuscule rise in net profit, Mr Gandhi said "Last year as we acquired Innoves Animal Health Pvt Ltd, it had reflected in last year Q3 results".

Hester's Q3 sales stood at Rs 18.70 crore compared to Rs 11.77 crore for the previous corresponding period.