Atul Ltd 2015-16

Atul Ltd | Annual Report 2015-16 Pharmaceuticals Product groups: API intermediates, Active Pharmaceutical Ingredients, Others 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 50 products. Carbonates, chloroformates, isocyanates and organic ureas are some of the key classes of products. During 2015-16, sales decreased by 1% from ` 334 cr to ` 330 cr. Sales in India decreased by 9% from ` 186 cr to ` 170 cr. Sales outside India increased by 8% from ` 148 cr to ` 160 cr and formed 48% of the total. Degrowth on account of volume was 1%. The Company successfully completed its second USFDA inspection for one of its products; it is in the process of expanding its API plant. Atul Bioscience Ltd (ABL), a 100% subsidiary company, focussed on production of advanced API intermediates, increased its sales by 17% from ` 47 cr to ` 55 cr, primarily because of volume; it undertook 1 project for implementation. The size of world Pharmaceutical industry is estimated at US$ 1.75 tn, of which the conventional pharmaceutical segment is US$ 1.2 tn and is growing at about 8%. Of this, the size of world API industry is estimated at US$ 150 bn and is growing at about 7%. 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 manufacturing efficiencies, iii) generating and adding capacities and iv) introducing new products. It will also form long-term strategic alliances with other companies. The prices of some products may come down in a short time. Fluctuations in foreign exchange may impact sales realisations. Performance and Other Chemicals Segment Particulars 2015-16 2014-15 % Change Sales ( ` cr) 1,659 1,834 (10)% Share in total sales (%) 69% 73% (4)% Performance and Other Chemicals Segment consists 4 Sub-segments, namely, Aromatics, Bulk Chemicals and Intermediates, Colors and Polymers.