Advanced Enzyme Ltd. SWOT Analysis

Advanced Enzyme Ltd.

Vision- Our vision at Advanced Enzymes is to become a leading, respected & preferred, enzyme based solutions provider in the global market.

Mission- It is our mission to see that every human being is able to utilize the power of enzymes, for general well-being, for health and for improving the quality of life. It is also our mission to see that every possible industry is able to take the advantage of enzymes, to create & produce innovative products, improve the quality of the end products, reduce energy costs, optimise the use of raw materials & resources, reduce pollution & overall carbon footprint of the process

S.W.O.T. Analysis

Strength:

• Global Competitiveness.
• Integration Across the Value Chain.
• Strong Research & Technology Focus.
• 100+ Scientists, Microbiologists, Engineers, Food Technologists, Biotechnologists
• 68+ Enzymes & Probiotics.
• 05 R&D Locations in India & Germany.
• 02 GRAS Dossiers filed with FDA. No Question Letter received for one dossier, another one is under evaluation and 20+ Patents Granted.
• 12 Food Dossier filed with EFSA, out of which positive opinion is received for 3 Dossiers & 9 are under evaluation.
• Company drive revenues by expanding distribution network and registrations in key target geographies like North America, Europe and Latin America.
• Company also continues to explore new avenues, both organically and inorganically, to establish a significant presence in key target segments.

Weakness:

• Some of the competitors of the Company have greater financial, marketing and other resources, which enables them to pursue more vigorous marketing and expansion activities. Intense competition may have a material adverse impact on the Company’s operations.
• While depreciation of the Rupee against the U.S. Dollar and other foreign currencies increases the Rupee value of such revenues, an appreciation of the Rupee, particularly with respect to the U.S. Dollar, decreases the Rupee value of our revenues.

Opportunity:

• The Company may benefit from increase in healthcare spending in the U.S. and India. U.S. has the highest health spend in the world and drastically it moving towards the usage of human healthcare enzymes and Probiotics.
• The rising demand of dairy, meat and poultry farms across the globe will drive the demand of animal healthcare enzymes in the market. The said market was sized at $1.3bn in 2018 which is expected to reach at $2.3bn by 2026. The OECD-FAO in their Agricultural Outlook to 2026 produced a series of projections for livestock products.
• Medical situations like COVID-19, Ebola, etc. which are arising in the world is forcing people towards consuming immunity booster enzymes and probiotics.
• In 2018 U.S spent on healthcare recorded at 14.3% of GDP and it is projected to grow at an average annual rate of 5.4% for 2019-28 and to reach $6.2 trillion by 2028 which is 1.1% faster than GDP per year. Price growth for medical goods and services is projected to accelerate, averaging 2.4% per year for 2019–28.

Threat:

• The Company has to incur significant cost to conform to the regulations and any non-conformance may result in fines and other penalties, which may be derogatory to the Company’s image.
• Our one of the main product “Serratiopeptidase” which is manufactured by the subsidiary JC Biotech. Competition from few new entrants in the market with homogeneous product and consequent pricing pressures may adversely affect sales of our product.
• The Company is exposed to risks pertaining to various applicable statutes, laws and regulations.
• Company’s top 10 customers concentrate around 35% of total revenue of the Company on consolidated basis, which creates concentration risk.