IPO Analysis : Nureca Limited IPO

IPO Analysis : Nureca Limited IPO

Nureca Limited is a healthcare and wellness products distributor which got incorporated in 2016. The company aims to offer the best quality, durable, and innovative tools to customers to monitor chronic diseases to improve their lifestyle.

The firm has a well-diversified product portfolio including Chronic Device Products, Orthopedic products, Mother and Child products, Nutrition Supplements, and Lifestyle products to meet the Indian healthcare market requirements. It is the first digital company to sell such products through its website and other online partners i.e. e-commerce players, retailers, and distributors.

Let's discuss the products portfolio of Nureca in a bit detail:

Chronic Device Products – including products such as blood pressure monitors, pulse oximeters, thermometers, nebulizers, self-monitoring glucose devices, humidifiers, and steamers.

Orthopedic Products – including rehabilitation products such as wheelchairs, walkers, lumbar and tailbone supports, and physiotherapy electric massagers.

Mother and Child Products – which includes products such as breast pumps, bottle sterilizers, bottle warmers, car seats, and baby carrycots.

Nutrition Supplements – including products such as fish oil, multivitamins, probiotics, biotin, apple cider, and vinegar.

Lifestyle Products – including products such as smart scales, aroma diffusers, and fitness trackers.

A few products sold by the Company:

    Dr. Trust Wheelchair.

    Dr. Trust Walker.

    Dr. Trust Walker with wheels.

    Dr. Physio Full Body Massager.

    Dr. Trust Fish oil.

    Dr. Trust Multivitamins.

    Dr. Trust Balance Scale.

    Dr. Trust Fitness Tracker Smart band.

Company’s Distribution Network:

Nureca is a digital first company where in company sells the products through online channels partners such as e-commerce players, distributors and retailer.Further, company also sell its products through company’s own website drtrust.in

Currently, 95% of revenues for the Company comes through digital channels (e-Commerce).

Tie up with Croma:

To expand the business footprint, Nureca, in October 2019, joined hands with Croma, India’s first omni-channel electronics retailer from the Tata Group, to emerge as the very first company to sell healthcare and wellness products through Croma stores.

As part of this tie-up, Nureca will sell products from its Dr Trust and Dr Physio brands at 30 Croma stores across the country.

Competition in the Business:

Nureca competes with local and global companies operating in India. The market is extremely fragmented with over fifty players, most of them Indian, with mostly generic products, showcasing no significant competitive advantage in terms of innovation or differentiation.

There are numerous other players in the market, like Dr Morepen, Health Sense, Agaro, Lifelong, Omron, Philips, Johnson and Johnson, Roche, Bayer

Positives for the Company:

Growth in Home Health Segment. : The Home Health Market in India and neighbouring countries is pegged at Rs.20,757.0 crore in 2019 and is expected to grow to Rs.38,920.7 crore by 2025 at a CAGR 11.0%. The growth is driven by rising awareness of Health and wellness, increasing spending power, growing burden of chronic diseases, and the need for Healthcare stakeholders to reduce healthcare costs.

Marketing & Distribution of Products: Company markets and sells the products across India through company’s own website i.e. Dr trust.in and third party e-commerce platforms, distributors and retailers and manage the sales and marketing activities through our Corporate Office. Company believes that this distribution network ensures that the products are easily available in almost any part of India. In addition to leveraging and engaging the distribution network for marketing initiatives, company also undertake direct promotional initiatives like advertising the products through digital marketing.

Reputed Brand with Constant Innovation: Company’s brands i.e Dr. Trust, Dr. Physio and Trumom have built a reputation of introducing innovative products that appeal to Indian customers. Company combines the technical expertise with an understanding of the Indian home healthcare market developed through market feedback and extensive interaction with the vendors. Through these efforts, company seeks to be the first to introduce innovative products in the market with unique functionalities that create new demand.

    

For example, Nureca has launched BP monitors which can be connected to a mobile phone through bluetooth or our own application i.e. Dr. Trust BP Connect App for remote monitoring of the patient.

Other Important Dates and Facts: 

Verdict: Seeing the company structure and future prospects, I think one should apply in this IPO. Since company's main focus is on e Commerce and digital marketing, hence their will not be any question on sustainability of the company. 

Seeing high action in secondary market, one can expect listing gains also. 

Sources: Various publications

Disclaimer: The information provided herein is based on publicly available information and other sources believed to be reliable, but involve uncertainties that could cause actual events to differ materially from those expressed or implied in such statements. The document is given for general and information purpose and is neither an investment advice nor an offer to sell nor a solicitation. While due care has been exercised while preparing this document, we do not warrant the completeness or accuracy of the information. We will not accept any liability arising from the use of this material. The recipient of this material should rely on their investigations and take their own professional advice.

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