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JHS Svendgaard's Greenfield Vision Secures Funding To Aid Strategic Expansion JHS Svendgaard Laboratories Limited, the oral-care products manufacturer has secured INR 30 Crore (USD 3.66 million) in funding to support its expansion initiatives

By Entrepreneur Staff

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Nikhil Nanda, Managing Director of JHS Svendgaard Laboratories

JHS Svendgaard Laboratories Limited, the oral-care products manufacturer has secured INR 30 Crore (USD 3.66 million) in funding to support its expansion initiatives.

The funding round was led by the promoters of Dabur Group; Nikhil Nanda, Managing Director of JHS Svendgaard Laboratories, and Coeus Global Opportunities Fund, which will facilitate the company's expansion plans.

Top promoters of the Dabur group Dr Anand Chand Burman, Minnie Burman, and Mohit Burman who own Puran Associates, Finmart, Milky Investment, and VIC Enterprises have shown confidence in JHS's strategy through this investment.

JHS revealed that it will utilize the funds to set up a greenfield project in the Indian state of Jammu and Kashmir under the 'J&K Industrial Policy' to gain access to fiscal benefits for up to 10 years. The project cost is estimated at INR 120 crore and will aid in expanding the company's product portfolio to include Oral Care, Soap, and even aerated beverages.

JHS believes this move will help generate additional revenue of up to INR 500 crore. The company said that it is also focusing its efforts on entering the hotel/restaurant/catering (HORECA), institutional, and export markets through white labeling and market penetration.

Commenting on the announcement, Nikhil Nanda, Managing Director of JHS Svendgaard Laboratories, said, "This investment marks a significant milestone for our company. The confidence shown by key investors underscores our strategic vision and potential. The funds raised will enable us to expand our product portfolio and enhance our market presence, driving significant profitability and growth in the coming years."

JHS's strong FY 2024-25 order book includes orders from market leaders such as Dabur, HUL, and Patanjali. Further details on the Jammu greenfield project show that it will be financed through 50 per cent equity and internal accruals, with the remainder covered by debt. The company plans to begin construction in September 2024 and estimates its operational start by January 2026.

With expansions planned for its 20-acre Kala-Amb facility in Himachal Pradesh and new initiatives in J&K, JHS aims to enhance EBITDA margins to double digits, leveraging fiscal advantages to go up to 20% profitability specifically in J&K.

Entrepreneur Staff

Entrepreneur Staff

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