40 Atul Ltd | Annual Report 2022-23 Atul Ltd | Annual Report 2022-23 Atul Ltd Atul House G I Patel Marg Ahmedabad 380 014, Gujarat India Atul Ltd | Annual Report 2022-23 Reconnect | Reimagine | Regrow Corporate Overview Statutory Reports Financial Statements The products falling under these product groups are used by customers belonging to the Pharmaceutical industry for various therapeutic categories such as antidepressant, antidiabetic, anti-infective, antifungal, antiretroviral and cardiovascular. The product groups comprise 90 products. Acyclovir, Dapsone, Desvenlafaxine, Fluconazole, Valacyclovir and Venlafaxine are some of the active pharmaceutical ingredients (APIs) while carbamoyl, carbonates, chloride derivatives and chloroformates are some of the key intermediates. During 2022-23, sales increased by 10% from ` 510 cr to ` 559 cr. Sales in India increased by 3% from ` 307 cr to ` 315 cr. Sales outside India increased by 20% from ` 203 cr to ` 244 cr and formed 44% of the total sales. Degrowth on account of volume was 5%. Sales was partially impacted due to fire in one of the plants. The plant is fully insured, and the claim is gradually being realised. The Company completed one project at the Atul site. Sales of Atul Bioscience Ltd (ABL), a 100% subsidiary company, increased by 25% from ` 126 cr to ` 158 cr. However, due to price pressure and new product regulatory Pharmaceuticals and Aromatics – I Product groups: active pharmaceutical ingredients and its intermediates, others filings, there was a contraction of operating margins. During 2022-23, one of the sites of ABL completed regulatory inspections from the United States Food and Drug Administration and Health Canada without any critical | major observations. The size of the world Pharmaceutical industry is estimated at US$ 1.5 tn during 2022 and is estimated to reach US$ 1.7 tn by 2025, of which the conventional pharmaceutical segment is estimated to be US$ 1.1 tn. The size of the world API industry is estimated to be US$ 195 bn during 2022 and is estimated to reach US$ 25 bn by 2026. Biologics are estimated to have contributed about 52% of sales of the top 100 products during 2022, while oncology will remain the largest therapy area with sales growing at about 12.7% CAGR. The Company along with ABL will participate in this growth by – i) increasing manufacturing efficiencies, ii) debottlenecking and adding capacities, iii) introducing new products and iv) forming long-term strategic alliances with other companies. The price and demand of some products have seen inconsistency and are likely to vary widely over the short-term. Fluctuations in foreign exchange may impact sales. grow at a CAGR of 6% from 2023 to 2030, driven majorly by the rising consumption of food across the globe due to the increasing population. The Company will participate in this growth by - i) improving internal efficiencies and working capital management, ii) promoting retail sales, iii) expanding the product portfolio and securing more registrations, and iv) evaluating investment opportunities in vertical integration. Floods or famines may adversely affect the demand. Fluctuations in foreign exchange may impact sales realisations. Given that some of these chemicals can be hazardous, it is essential to take due care in their manufacture and use. Registration costs are high in certain countries. Also, geopolitical developments leading to supply chain disruptions and high cost of some of the main raw materials can impact the profitability of the business.
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