Avience Biomedicals Limited

1. Overview

Avience Biomedicals Limited ("ABL"), incorporated on December 23, 2019 in Delhi, is a medical consumables company engaged in the manufacture and distribution of In-Vitro Diagnostic (IVD) products and medical devices. The Company commenced operations during the COVID-19 pandemic with a focused product range of essential diagnostic kits — Viral Transport Media (VTM), Covid, HIV, HBsAg, Malaria, and Dengue — and has since expanded into a broader portfolio spanning rapid test kits, biochemistry reagents, culture media, biochemistry analysers, electrolyte analysers, and immunoassay equipment, marketed under the in-house "Avienbio" brand.

The Company operates a manufacturing facility at G-1, Sector-11, Noida, Uttar Pradesh (3,700 sq. ft. leased), supplemented by an allocation of 2,100 sq. metres of industrial land at Plot No. 70, Sector 28, Medical Device Park, YEIDA, Gautam Buddha Nagar — where a new manufacturing unit is being set up with planned capex of approximately ₹30.18 crore funded substantially through IPO proceeds. ABL holds ISO 9001:2016, ISO 13485, ZED MSME Gold, and GMP certifications and complies with CDSCO regulatory norms.

The Company's competitive positioning rests on a diversified IVD product portfolio, an authorised channel partnership with Mindray Medical India Private Limited for trading hematology and biochemistry analysers, regulatory compliance credentials, and an entrenched North India distribution footprint (Delhi + UP contribute ~67% of FY25 standalone revenue).

2. Business Model and Revenue Streams

ABL operates a hybrid manufacturing-cum-distribution business model, with revenue derived from three distinct streams: in-house manufactured IVD consumables, trading of partner-branded equipment (predominantly Mindray), and post-sales services (AMC/CMC).

Revenue Mix by Activity (₹ Cr)

Key observation: Trading remains the dominant revenue contributor but is showing a steady decline in share — from 83.81% in FY23 to 72.31% in FY25 — as manufacturing expands. Manufacturing revenue grew ~4.5x over FY23–FY25, signalling deliberate strategic migration toward higher-margin in-house production.

Revenue Mix by Customer Segment

Channel transition: B2B dependence has fallen sharply (70% → 40% over three years) while B2C share has nearly doubled — improving margin profile and reducing intermediary risk. Exports scaled from nil in FY23 to 18.15% of revenue in FY25, demonstrating successful overseas market entry.

Geographic Concentration (FY25)

The revenue base remains heavily skewed toward North India:

1. Delhi: 27.14% (₹7.84 crore)
2. Uttar Pradesh: 39.89% (₹11.52 crore)
3. Haryana: 9.44% (₹2.73 crore)
4. Export: 18.15% (₹5.33 crore)

Delhi + UP + Haryana together account for ~76.5% of domestic revenue, indicating significant geographic concentration risk which the new YEIDA facility and planned export expansion aim to address.

Pricing & Contract Model

• B2B/B2G: Volume-linked discounts; tenders, rate contracts, and direct procurement for government clients
• B2C: Direct sales pricing to hospitals/labs
• Services (AMC/CMC): Recurring annual contracts (1–3 year extensions), preventive (AMC) vs. comprehensive (CMC) tiers

3. Products and Service Portfolio

ABL's portfolio is split into (i) in-house manufactured Avienbio-branded products and (ii) traded Mindray-branded equipment & reagents, supported by a growing AMC/CMC services layer.

A. In-House Manufactured — "Avienbio" Brand

B. Traded — Mindray Channel Partnership

ABL is an authorised channel partner of Mindray Medical India Private Limited for the trading of premium IVD equipment:

Installed Capacity & Capacity Utilisation

Capacity utilisation has trended sharply upward across all product families in FY25, with Reagents touching ~93% — a clear signal that the existing 3,700 sq. ft. Noida facility is approaching saturation. The Company has already expanded the Rapid Test Kit installed capacity to 45,00,000 tests in the stub period (Jan 31, 2026), where utilisation is tracking at 84.12%. This capacity ceiling is the principal commercial rationale for the new YEIDA manufacturing unit funded by the IPO.

Domestic vs. Import Purchases (Standalone, FY25)

• Domestic purchases: ₹16.92 crore (96.90%) — predominantly Mindray supplies
• Import purchases: ₹0.54 crore (3.10%) — specialty antigens and antibodies (FAPON-sourced raw materials)

4. Key Business Strengths

• Diversified IVD product portfolio: Spans rapid diagnostics, biochemistry, hematology, immunoassay, microbiology, and oxygen therapy — limiting single-category dependence.
• Dual-engine revenue model: Manufacturing (Avienbio) + Trading (Mindray channel partnership) enables the Company to monetise infrastructure capex while maintaining capital-light scale through partner brands.
• Regulatory compliance credentials: ISO 9001:2016, ISO 13485, ZED MSME Gold, GMP, and CDSCO approvals are essential entry barriers in B2G and institutional sales; ABL holds the full stack.
• Improving manufacturing mix: Manufacturing share of revenue expanded from 16.19% (FY23) to 27.32% (FY25) with corresponding margin expansion — EBITDA margin improved from 13.05% (FY23) to 25.22% (FY25) on a standalone basis.
• Rapid export ramp-up: Exports grew from nil in FY23 to 18.15% of revenue in FY25, validating the international marketing team's foreign-market positioning.
• Capacity headroom secured: Allotted land at YEIDA Medical Device Park offers strategic co-location with healthcare facilities and infrastructure tailored to medical device manufacturers.

5. Future Growth Strategy

• Capacity expansion via YEIDA facility: New manufacturing unit at Plot No. 70, Sector 28, YEIDA Medical Device Park — total project cost ₹30.18 crore (₹15.95 crore funded from IPO). Land acquisition ₹1.91 crore, building & civil ₹11.96 crore, plant & machinery ₹16.32 crore — targeting WHO and US FDA approvals on the new plant.
• Product portfolio deepening: Continued expansion in Bio-chemistry, Haematology, Immunology, and Microbiology product lines, with R&D investments and partner-led innovation.
• Working capital augmentation: ₹8.25 crore of IPO proceeds earmarked to fund working capital — supporting receivables financing and inventory build-up as B2C/Export revenue mix grows.
• Export market penetration: Active international marketing team participating in foreign exhibitions; goal of replacing single-geography India revenue with multi-geography distribution.
• Channel partnership extension: Leverage Mindray relationship to deepen trading book and expand AMC/CMC services revenue (negligible in FY24 → growing in FY25 → expected scale-up as installed base ages).
• Regulatory upgradation: WHO and US FDA certifications targeted at the new facility — would unlock institutional and developed-market sales.
• B2C share expansion: Continue migrating revenue mix from intermediaries (B2B) toward direct hospital/lab customers — improving realisations and reducing channel concentration.