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world industry. 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.
This necessitates increased use of pesticides. The Company
DžĿŕŕ ƎîƑƥĿČĿƎîƥĚ ĿŠ ƥĺĿƙ ijƑūDžƥĺ ċNj ȶ Ŀȴ ljūČƭƙĿŠij ūŠ ƎƑūDŽĿēĿŠij
its customers with the best quality products, ii) meeting the
growing world regulatory demands for product stewardship,
ĿĿĿȴ ĚNJƎîŠēĿŠij ƥĺĚ ƎƑūēƭČƥ ƎūƑƥljūŕĿū îŠē ŕĚDŽĚƑîijĿŠij ƥĺĚ
strength of the Company in certain chemistries, iv) promoting
its brand sales and v) improving its manufacturing and
DžūƑŒĿŠij ČîƎĿƥîŕ ĚljǛČĿĚŠČĿĚƙȦ
Floods or famines may adversely affect the demand.
GŕƭČƥƭîƥĿūŠƙ ĿŠ ljūƑĚĿijŠ ĚNJČĺîŠijĚ ŞîNj ĿŞƎîČƥ ƙîŕĚƙ
realisations. Given that some of these chemicals can be
ƥūNJĿČȡ Ŀƥ Ŀƙ ĚƙƙĚŠƥĿîŕ ƥū ƥîŒĚ ēƭĚ ČîƑĚ ĿŠ ƥĺĚĿƑ ŞîŠƭljîČƥƭƑĚ îŠē
use. Registration costs are high in certain countries.
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 72 products. Carbonates, chloroformates,
isocyanates and organic ureas are some of the key classes
of products.
During 2018-19, sales increased by 43% from
`
367 cr to
`
526 cr. Sales in India increased by 34% from
`
218 cr to
`
293 cr. Sales outside India increased by 56% from
`
149 cr
to
`
233 cr and formed 44% of the total. Growth on account
of volume was 24%. The Company completed 1 project and
undertook 1 project for implementation. Atul Bioscience Ltd
(ABL), a 100% subsidiary company, acquired manufacturing
facilities of Polydrug Laboratories Private Limited at MIDC,
Ambernath. Sales of ABL for 2018-19 increased by 37%
from
`
76 cr to
`
104 cr, primarily because of volume; it
completed 2 debottlenecking projects and undertook 2
projects for implementation.
The size of the world Pharmaceutical industry is estimated
at US$ 1.75 tn, of 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 area in 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, with about
US$ 4 bn R&D spend per New Molecular Entities (NME) over
the last 10 years.
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
ŞîŠƭljîČƥƭƑĿŠij ĚljǛČĿĚŠČĿĚƙȡ ĿĿĿȴ ijĚŠĚƑîƥĿŠij îŠē îēēĿŠij
capacities, iv) introducing new products and v) forming
long-term strategic alliances with other companies.
The prices of some products may come down in a short
ƥĿŞĚȦ GŕƭČƥƭîƥĿūŠƙ ĿŠ ljūƑĚĿijŠ ĚNJČĺîŠijĚ ŞîNj ĿŞƎîČƥ ƙîŕĚƙ
realisations.
PHARMACEUTICALS AND AROMATICS – I
Product groups: API intermediates, Active Pharmaceutical Ingredients, Others
57
Management Discussion and Analysis