Atul Ltd 2011-12

Atul Ltd | Annual Report 2011-12 Pharmaceuticals Products APIs, API intermediates, Others Pharmaceuticals 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, cardiovascular, anti-depressant, anti- diabetic, anti-infective and anti-retroviral. The Business comprises 28 products, relatively new to the portfolio (of products) of the Company. It is not currently engaged in formulations of APIs. During the year, sales increased by 34% to ` 246 cr. Sales in India increased by 40% to ` 125 cr. Export sales increased by 27% to ` 121 cr and formed 49% of the total. Growth on account of volume was 13%. Atul Bioscience, a 100% subsidiary company, focussed on production of advanced API intermediates and now has two multi-purpose plants manufacturing a range of products, sales of which increased from ` 4 cr to ` 11 cr, almost wholly because of volume. World market for pharmaceuticals is estimated at US$ 730 bn (comprising US$ 680 bn prescription drugs and US$ 50 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 8%. There are around 20 major companies which dominate the world marketplace in prescription drugs space with share of about 67% and around 8 companies in generic drugs space with share of about 70%. The main user industry, namely, Healthcare, is growing well because of the increasing awareness about diseases and health. The Company along with Atul Bioscience will participate in this growth by i) debottlenecking | adding capacities, ii) introducing new products, iii) significantly improving efficiencies and iv) widening its market reach. 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 will impact sales realisations.