Atul Ltd 2018-19

world industry. If the current trend continues, caloric demand will increase by about 70% and crop demand for human consumption and animal feed will nearly double by 2050. This necessitates increased use of pesticides. The Company ǅĿŕŕ ƎîƑƥĿČĿƎîƥĚ ĿŠ ƥĺĿƙ ijƑūǅƥĺ ċǋ ȶ Ŀȴ ljūČƭƙĿŠij ūŠ ƎƑūǄĿēĿŠij its customers with the best quality products, ii) meeting the growing world regulatory demands for product stewardship, ĿĿĿȴ ĚǊƎîŠēĿŠij ƥĺĚ ƎƑūēƭČƥ ƎūƑƥljūŕĿū îŠē ŕĚǄĚƑîijĿŠij ƥĺĚ strength of the Company in certain chemistries, iv) promoting its brand sales and v) improving its manufacturing and ǅūƑŒĿŠij ČîƎĿƥîŕ ĚljǛČĿĚŠČĿĚƙȦ Floods or famines may adversely affect the demand. GŕƭČƥƭîƥĿūŠƙ ĿŠ ljūƑĚĿijŠ ĚǊČĺîŠijĚ Şîǋ ĿŞƎîČƥ ƙîŕĚƙ realisations. Given that some of these chemicals can be ƥūǊĿČȡ Ŀƥ Ŀƙ ĚƙƙĚŠƥĿîŕ ƥū ƥîŒĚ ēƭĚ ČîƑĚ ĿŠ ƥĺĚĿƑ ŞîŠƭljîČƥƭƑĚ îŠē use. Registration costs are high in certain countries. The products falling under these product groups are used by customers belonging to Pharmaceutical industry for various therapeutic categories, such as anti-depressant, anti-diabetic, anti-infective, anti-retroviral and cardiovascular. The product groups comprise about 72 products. Carbonates, chloroformates, isocyanates and organic ureas are some of the key classes of products. During 2018-19, sales increased by 43% from ` 367 cr to ` 526 cr. Sales in India increased by 34% from ` 218 cr to ` 293 cr. Sales outside India increased by 56% from ` 149 cr to ` 233 cr and formed 44% of the total. Growth on account of volume was 24%. The Company completed one project and undertook one project for implementation. Atul Bioscience Ltd (ABL), a 100% subsidiary company, acquired manufacturing facilities of Polydrug Laboratories Private Limited at MIDC, Ambernath. Sales of ABL for 2018-19 increased by 37% from ` 76 cr to ` 104 cr, primarily because of volume; it completed two debottlenecking projects and undertook two projects for implementation. The size of the world Pharmaceutical industry is estimated at US$ 1.75 tn, of which the conventional pharmaceutical segment is estimated to be US$ 1.3 tn. Of this, the size of the world API industry is estimated to be US$ 160 bn. Biologics is estimated to contribute about 52% of sales of top 100 products by 2022, while Oncology will remain the largest therapy area in sales growing at about 12.7% CAGR. Worldwide Pharmaceutical R&D spend is estimated to grow by 2.4% CAGR to about US$ 181 bn in 2022, with about US$ 4 bn R&D spend per New Molecular Entities (NME) over the last ten years. There are about 20 major companies which dominate the world marketplace. The main user industry, namely, Pharmaceutical, is growing well because of increasing awareness about diseases and health. The Company along with ABL will participate in this growth by i) widening its market reach, ii) increasing its ŞîŠƭljîČƥƭƑĿŠij ĚljǛČĿĚŠČĿĚƙȡ ĿĿĿȴ ijĚŠĚƑîƥĿŠij îŠē îēēĿŠij capacities, iv) introducing new products and v) forming long-term strategic alliances with other companies. The prices of some products may come down in a short ƥĿŞĚȦ GŕƭČƥƭîƥĿūŠƙ ĿŠ ljūƑĚĿijŠ ĚǊČĺîŠijĚ Şîǋ ĿŞƎîČƥ ƙîŕĚƙ realisations. PHARMACEUTICALS AND AROMATICS – I Product groups: API intermediates, Active Pharmaceutical Ingredients, Others 57 Management Discussion and Analysis