Corporate Overview Statutory Reports Financial Statements 25 Pharmaceuticals and Aromatics – I Product groups: active pharmaceutical ingredients and its intermediates, others 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 about 90 products. Acyclovir, Dapsone, Desvenlafaxine, Fluconazole, Valacyclovir and Venlafaxine are some of the Active Pharmaceutical Ingredients (APIs) while carbonates and chloroformates are some of the key product groups of intermediates. During 2023-24, sales decreased by 1% from ` 559 cr to ` 556 cr. Sales in India increased by 5% from ` 315 cr to ` 332 cr. Sales outside India decreased by 8% from ` 244 cr to ` 224 cr and formed 40% of the total sales. Growth on account of volume was about 13% mainly due to i) debottlenecking done in the plants and ii) availability of the reconstructed PHIN-II plant for few months, which was not available in 2022-23 due to the fire accident that occurred in the plant in April 2022. The PHIN-II plant is fully insured and the claims are gradually being realised. Sales of Atul Bioscience Ltd (ABL), a 100% subsidiary company, decreased by 16% from ` 158 cr to ` 131 cr, mainly due to a conscious decision to reduce certain non-strategic areas of the business. The world Pharmaceutical industry, valued at US$ 1.6 trillion in 2023, is poised to reach US$ 1.7 trillion by 2025, with the conventional pharmaceutical segment estimated at US$ 1.1 trillion. The API industry, valued at US$ 235 bn in 2023, is projected to hit US$ 357 bn by 2032. Biologics accounted for about 52% of sales of the top 100 products in 2022, with oncology leading the way with sales growing at a CAGR of approximately 12.7%. The presence of the Company in this sector is crucial, particularly as the domestic pharmaceutical market is on track to reach US$ 65 bn by 2024 and expand further to US$ 120-130 bn by 2030. The Company, along with ABL, will participate in this growth by – i) focusing on getting regulatory clearances for its API facilities, ii) increasing manufacturing efficiencies, iii)debottleneckingandaddingcapacities and iv) introducing new products. 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. Key trends such as supply chain disruptions, rising inflation and evolving ESG expectations will significantly influence market growth.
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