7 months ago
API Holdings CEO Rahul Guha on Profitability and Growth
API Holdings, which owns Pharmeasy, Thyrocare, and Ascent, is working to become profitable by March 2025.
Their new CEO, Rahul Guha, is focusing on integrating the different parts of the company to save costs and improve profits.
They have reduced their debt and are planning to sell some non-strategic assets.
Pharmeasy, their online medicine delivery service, aims to make money by selling higher-margin products and services.
Thyrocare, their diagnostic service, is growing fast and will focus on specialized tests in the future.
The company is not focused on quick delivery but on providing affordable medicines to chronic users.
API Holdings aims to become profitable by March 2025 under CEO Rahul Guha.
The company is integrating its businesses to reduce costs and improve efficiency.
Debt has been refinanced to lower interest rates, with plans to reduce debt to Rs 400-500 crore by March 2027.
Pharmeasy focuses on affordability and cross-selling higher-margin products and services.
Thyrocare is growing at 20% YoY and will expand into specialized diagnostics.
- Who
- Rahul Guha, CEO of API Holdings
- What
- API Holdings' strategy for profitability and growth
- Where
- India
- When
- Current and future plans
- Why
- To turn the company profitable and reduce debt
Key facts
- Company
- API Holdings (Pharmeasy, Thyrocare, Ascent)
- CEO
- Rahul Guha
- Profitability Target
- March 2025
- Debt Refinancing
- Rs 1,700 crore at 12% interest
- Current Debt
- Rs 1,200 crore
- Target Debt
- Rs 400-500 crore by March 2027
- Thyrocare Growth
- 20% YoY
- Thyrocare Franchises
- 10,000 (from 2,700 in 2022)
Quotes
Rahul Guha
MD and CEO of API Holdings
“We refinanced Rs 1,700 crore of debt last August, bringing interest costs down from over 20% to around 12%. We’ve already repaid Rs 500 crore, and currently have about Rs 1,200 crore outstanding at roughly 11%. Our goal is to bring this down to a sustainable Rs 400-500 crore by March 2027. We’re also evaluating non-strategic assets for sale to help deleveraging. Broadly, these include businesses and markets that haven’t been integrated into our one-roof operating model. In some cases, we have warehouses or are running operations in markets that are no longer strategic for us. We may evaluate exiting them.”
financialexpress.com
“Back then, we were essentially four separate companies pursuing independent strategies. My mandate was to capture synergies across the group. For instance, Pharmeasy and other API Holdings’ group companies were buying medicines, but only 20-30% of procurement came from Ascent. We changed that and today, internal sourcing is the first preference. Similarly, in certain cities, each entity had its own warehouse. We consolidated these into single mother warehouses serving all businesses, which helped reduce costs.”
financialexpress.com
