Insights from the Plant Visit and Management Interaction

In this edition of LEARNING OF THE WEEK, we’ll discuss some interesting insights that we gained from the plant visit and management interaction of Veerhealth Care Ltd.
The beauty and wellness industry is undergoing a dynamic transformation as we head into 2025, characterized by a growing emphasis on natural ingredients, personalization, and sustainability. Consumers are increasingly prioritizing health and wellness, leading to a surge in demand for products that enhance beauty and promote emotional well-being. This shift is reflected in trends such as “Well Beauty,” where brands are creating products designed to boost mood and reduce stress, aligning with the holistic approach many consumers are now seeking.
Today we are going to talk about a company that specializes in the business of trading, manufacturing, and marketing research-based Ayurvedic medicines and cosmetic products.
Before we delve into the fascinating insights let’s take a moment to explore the business of VeerHealth Care Ltd came into being.
Birth of Veerhealth Care – Business Transformation
Veer Health Care’s journey began on July 10, 1992, under the name “Niyati Leasing Limited,” when it was focused on investment and finance. In 2013, the Company reinvented itself and made a pivot into the pharmaceutical sector, leaving behind its financial roots and embracing a new identity as VeerHealth Care Ltd.
Services Provided by the Company
Veerhealth Care operates as a trusted partner for businesses in the personal care industry. Its services include:
1. Contract Manufacturing – This is when a brand works with VeerHealth Care to create products that meet the brand’s specific requirements. Brands can decide on everything from the product’s ingredients to its packaging, giving them significant control over quality and innovation.
2. White Labeling – In this approach, VeerHealth Care makes generic products that retailers can sell under their own brand names. The focus here is mainly on changing the branding and packaging rather than altering the product itself. As a result, brands have less control over product design and customization options.
3. Product Development – This term refers to the entire process of creating a new product, where VeerHealth Care supports brands, starting from the initial idea all the way through design, testing, and production. Brands have full control over how the product is developed, allowing them to customize it according to their needs.
4. Custom Formulations – This service involves VeerHealth Care creating unique product formulations specifically for a brand. It allows brands to choose specific ingredients and make adjustments, providing the highest level of customization among these options. Brands have considerable control over how their products are formulated to meet their standards.



With clients like Apollo Pharmacy, DavaIndia, Babuline Pharmacy, and Asther Pharmacy in India, VeerHealth has become synonymous with quality and reliability. Whether it’s toothpaste or gripe water (yes, they make that too—for kids with gas problems!), they’ve got it covered. That’s not it, the company has also created its own D2C brand, AYUVEER.
AYUVEER – Veerhealth Care’s Home Grown Brand
Under its own brand AYUVEER, VeerHealth Care offers a range of cosmetic products spanning body care, hair care, skin care, and oral care segments. These products are available on popular e-commerce platforms like Amazon, Flipkart, and Nykaa. In addition to this, they’ve also started taking AYUVEER to offline stores in Gujarat and Mumbai. By FY27, they expect AYUVEER to start contributing 25-30% in revenue—a testament to their confidence in their brand’s potential.

Building Global Footprint
VeerHealth Care isn’t just making waves in India. The company has successfully tapped into international markets like the USA, UK, Morocco, Uganda, Somalia, and the Middle East. With FDA approval from the USA for its body care products (a golden ticket to the vast yet competitive American market), VeerHealth could be poised for significant growth abroad.
The company is currently in talks with a major Russian player in the personal care segment for contract manufacturing services—a move that could further solidify its global presence.
Expanding Horizon
VeerHealth recently acquired land adjacent to its current plant at an estimated cost of Rs 9 crores. This expansion brings its total area to ~60,000 sq ft., which will be utilized for backward integration as the company plans to start producing bottles and tubes in-house. This strategic move is expected to save them 5-10% in margins while also allowing them to supply these materials to other companies also. Additionally, VeerHealth has also listed itself on the Government e-Marketplace (GeM), an e-platform for government ministries to procure goods and services easily.
Foray into Healthcare Equipment
VeerHealth is also venturing into healthcare equipment. They plan to supply ventilators, infusion pumps, syringe pumps, and more to domestic markets (via intermediaries who supply directly to government hospitals). While they lack direct licenses for hospital supply chains themselves, this new venture represents an exciting diversification strategy requiring an investment of ~Rs. 1 crore. To gain insights into this new field, VeerHealth has begun participating in online trade shows—a smart move for a company entering unfamiliar waters.
The Road Ahead: Ambitions & Optimism
VeerHealth Care has set its sights high with plans to achieve Rs. 100 crores in revenue within 2-3 years—a goal fueled by growth from AYUVEER as well as its international clients in the USA and Russia. The management is optimistic about changes in U.S.-China relations potentially opening doors for Indian companies like theirs. With FDA approval already secured (a step ahead of many competitors), VeerHealth is well-positioned to capitalize on any opportunities that arise. To support these ambitious plans, the company intends to raise Rs. 25 crores via a rights issue—funds that will be used for a new plant and additional machinery to boost production capacity.
Closing Thoughts – Competitive Intensity to Increase
In this competitive landscape, VeerHealthCare faces several notable competitors. Established brands like Himalaya Wellness and Patanjali Ayurved dominate the Ayurvedic segment, while companies like Mamaearth and Biotique are making significant strides in the natural personal care market. Additionally, global players such as L’Oréal and Unilever are increasingly incorporating Ayurvedic principles into their product lines, intensifying competition. These competitive forces could pose a significant threat to VeerHealth Care’s aspirations.
Now, what will happen, only time will tell, untill then.
Happy Investing!!!
Disclaimer: These insights are based on our observations and interpretations, which might not be complete or accurate. Bastion Research and its associates do not have any stake in GMM Pfaudler Ltd. This newsletter is for educational purposes only and is not intended to provide any kind of investment advice. Please conduct your own research and consult your financial advisor before making any investment decisions based on the information shared in this newsletter.
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