Atul Ltd 2013-14

Atul Ltd | Annual Report 2013-14 Products APIs, API Intermediates, Others Pharmaceuticals and Intermediates Business mainly comprises API intermediates and a few APIs. The products are used by customers belonging to Pharmaceutical industry, under five broad therapeutic categories, namely, anti-depressant, anti- diabetic, anti-infective, anti-retroviral and cardiovascular. The Business comprises about 38 products. During 2013-14, sales decreased by 3% from ` 314 cr to ` 306 cr. Sales in India increased by 1% from ` 171 cr to ` 172 cr. Sales outside of India decreased by 6% ` 143 cr to ` 134 cr and formed 44% of the total. Degrowth on account of volume was 7%. Sales from new products were ` 7 cr. The Company completed 8 projects and undertook 3 projects for implementation. Atul Bioscience Ltd, a 100% subsidiary company, focussed on production of advanced API intermediates, sales of which increased by 30% from ` 27 cr to ` 35 cr, primarily because of volume; and it completed capacity expansion in both of its plants. World market for pharmaceuticals is estimated at US$ 820 bn (comprising US$ 700 bn prescription drugs and US$ 120 bn generic drugs) and is growing at about 5%. Indian pharmaceuticals market is estimated at US$ 22 bn (including sales out of India) and is growing at about 10%. There are Pharmaceuticals about 20 major companies which dominate the world marketplace in prescription drugs space with share of about 65% and about 8 companies in generic drugs space with share of about 70%. The main user industry, namely, Pharmaceutical, is growing well because of increasing awareness about diseases and health. The Company along with Atul Bioscience will participate in this growth by i) widening its market reach, ii) increasing its manufacturing efficiencies, iii) generating and adding capacities and iv) introducing new products. It will also form long-term alliances with other companies. Prices of many products come down significantly in a short time. Fluctuations in foreign exchange may impact sales realisations.