Cupid Ltd, the leading manufacturer of contraceptives with marketing network spread across 26 countries, became the first company in the world to have been pre-qualified by WHO and UNFPA for supplying both male and female condoms. The company also listed its shares on the NSE recently.
Speaking to BTVi, Cupid Chairman and Managing Director Omprakash Garg says the company is expecting 20 per cent growth in FY17 with much of the demand for condoms is coming from Africa, Caribbean and CIS nations. company's order book is completely full till March 2017 and actually one quarter beyond till June 2017, says Garg.
The company is looking at the capex requirement and expansion but nothing has been finalised as yet, he says.
Our expectation is approximately 20 per cent growth in FY17.
A UN report forecast demand for condoms to grow at about 9 per cent per annum in the foreseeable future. In which segments do you expect high growth?
Most of it is coming from Sub-Saharan Africa. In addition, we have high growth coming from the Caribbean and also from CIS countries.
A couple of months ago, you secured a three-year contract from United Nations Population (UNFPA) and that provided a major boost to your financials.
How is the order execution pipeline right now? What kind of orders are you expecting in the coming months of FY17?
In general, our order book is completely full till March 2017 and actually one quarter beyond till June 2017.
Cupid is one of the few companies which manufactures female condoms. Is that a space where you enjoy higher margins? What's the outlook?
The margins are much higher in case of female condoms and the market size is improving as well for the prevention of sexually-transmitted infections including HIV and also for prevention of unintended pregnancy.
What's your capex plan to enhance production capacity?
We are now working near-full capacity both for male and female condoms.
But we are looking at the capex requirement and expansion. But nothing has been finalised for this financial year as yet.