was incorporated on June 29, 1983 as a private limited company and went public on April 1, 1996. Dishman Pharmaceutical & Chemicals limited manufactures and markets cost-effective, high quality chemical services and products to the global pharmaceutical and chemical industry. DISHMAN has marketing offices/wholly-owned subsidiaries at strategically important global locations.

It has two wholly-owned subsidiaries in Europe and US called Dishman Europe and Dishman USA, Inc. The company acquired Carbogen Amcis AG (CA), a Swiss research-based company with three production facilities in Switzerland for the manufacture of highpotent, high-value products. It has representative offices in Germany, Italy and Turkey. The client list includes global pharma and agro blue chip majors. The company also received the Greentech Environment Excellence Award 2006 (silver category award in chemical sector) for outstanding achievement towards environment protection and clean environment in the industrial and service industry.

Dishman operates a process oriented Quality Management System based on the international quality standard ISO 9001. As a supplier to the pharmaceutical industry, Dishman is committed to current Good Manufacturing Practices (cGMP) procedures and ensure that its global manufacturing sites adhere fully to our internal GMP policies, local regulations and the international guidelines associated with the U. S. Food and Drug Administration (FDA).

Products & Services—

Dishman is the global outsourcing partner for the pharmaceutical industry offering a portfolio of development, scale-up and manufacturing services. The products and services offered span customers needs from chemical development to commercial manufacture and supply of active pharmaceutical ingredients.

Through synthetic chemistry research, the company has developed manufacturing processes for various intermediates, active pharmaceutical ingredients (APIs), quaternary ammonium compounds QUATS) and specialty chemicals. It is also engaged in pharmaceutical outsourcing which includes contract research and manufacturing (CRAM Segment). Presently, DISHMAN has three manufacturing sites - Dishman Pharmaceuticals and Chemicals (Bavla), Dishman Pharmaceuticals and Chemicals Naroda) and Schitz Dishman Biotech (Bavla).

The company provides high-value, cost-competitive contract services. Process development, process optimization, manufacture for late stage clinical and commercial supply. In CARBOGEN AMCIS it has high quality process research and development. API supply to support clinical trial requirements. In CRAMS, Dishman provides, Large dedicated R&D centre with multiple shift R&D operations. It has multipurpose and dedicated production facilities for APIs, intermediates.

In Specialty Chemicals, Dishman is one of the leading manufacturers of Phase Transfer Catalysts. It provides high quality supply of intermediates, fine chemicals, and products for the pharmaceutical, cosmetic and related industries. It manufactures Vitamin D2, Vitamin D3, Vitamin D analogues, cholesterol and laolin related products for pharmaceutical, cosmetic and related markets. It has portfolio of next generation innovative antiseptic and disinfectant formulations.

Dishman pharmaceuticals offer unparalleled capability in scale-up, development and commercial manufacture of highly potent compounds. These highly potent API services are offered under the CARBOGEN AMCIS business. It provides state-of-the-art containment services. All of the facilities operate to current Good Manufacturing Practice (cGMP) and can produce material for preclinical testing, clinical trials and commercial use.

All of the containment facilities are designed based on a containment concept utilizing the “split-butterfly valve” and barrier isolation technology as well as a strict zone concept with pressure cascades, airlocks and access controls. This allows the safe handling of highly-potent compounds of all categories including cytostatics/cytotoxics. To support the Active Pharmaceutical Ingredient (API) development process through all stages, a variety of high-containment analytical and purification capabilities complement the chemistry service portfolio.

Valuation & conclusion—

Dishman pharmaceuticals and chemicals, net sales expected to grow at a CAGR of 17.4% for next 2 years. At current market price stocks is trading at attractive valuation of 6.1 P/E multiple of its FY2014 estimated earnings. We recommend investors to Strong Buy on “Dishman pharmaceuticals & chemicals limited” for medium to long term investment horizon.