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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.