Atul Ltd 2020-21

42 Atul Ltd | Annual Report 2020-21 The products falling under these product groups are usedbycustomersbelonging to the Pharmaceutical industry for various therapeutic categories such as antidepressant, antidiabetic, anti-infective, antifungal, antiretroviral and cardiovascular. The product groups comprise 76 products. Dapsone, fluconazole and metoprolol salts are some of the active pharmaceutical ingredients (API) and carbonates, chloroformates and amino acid derivatives are some of the key intermediates. During 2020-21, sales increased by 8% from ` 462 cr to ` 498 cr. Sales in India increased by 6% from ` 283 cr to ` 300 cr. Sales outside India increased by 11% from ` 179 cr to ` 198 cr and formed 40% of the total. Growth on account of volume was 14%. Sales of Atul Bioscience Ltd (ABL), a 100% subsidiary company, increased from ` 105 cr to ` 142 cr. The Company completed one major project at the acquired facility in Ambernath, while two projects are under implementation at the Atul site. The size of the world Pharmaceutical industry is estimated at US$ 1.75 tn, of PHARMACEUTICALS AND AROMATICS – I Product groups: API intermediates, Active Pharmaceutical Ingredients, Others 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 areawith 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. There are 20 major companies that dominate the world marketplace. The main user industry, namely, Pharmaceutical, is doing well and meeting the expectations of mankind. The Company along with the ABL will participate in this growth by - i) increasing manufacturing efficiencies, ii) debottlenecking and adding capacities, iii) introducing newproducts and iv) forming long-term strategic alliances with other companies. The price and demand of products have seen consistency during the year, but is likely to vary widely over the short-term. Fluctuations in foreign exchange may impact sales. Agribusiness is estimated at around US$ 5 tn. 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. One of the significant dimensions of Agribusiness is biologicals. World biological market is estimated to reach at US$ 11 bn by 2025 from US$ 7.2 bn in 2019. This necessitates increased use of crop protection chemicals. 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.