Statements in the Management Discussion & Analysis Report which
seek to describe the Companys objectives, projections, estimates, expectations or
predictions may be considered to be "forward-looking statements" and are stated
as required by applicable laws and regulations. Actual results may differ materially from
those expressed or implied. Many factors including global and domestic demand- supply
conditions, prices, raw-materials availability, technological changes, changes in
Government regulations, tax laws and other statutes may affect the actual results, which
could be different from what the Directors envisage in terms of future performance and
outlook. Market data and product analysis contained in this Report have been obtained from
Companys business division and industry publications, but their accuracy and completeness
are not guaranteed and their reliability cannot be assured.
VISION
- Occupy a Leadership position in the Industry.
- Empower our executives to achieve excellence in new territories and
markets.
- To set an example for future Indian entrepreneurs and ambitious
individuals.
MISSION
To continuously thrive for improvement and better utilization of
resources.
INDUSTRY OVERVIEW PHARMA & CHEMICALS Indian Pharmaceutical
Industry: An overview Current Market Trends and Scope
The Indian pharma industry has been growing at a Compounded Annual
Growth rate (CAGR) of more than 15% over the last five years and has significant growth
opportunities. The growth driven factors in the domestic market are high burden of
disease, good economic growth leading to higher disposable incomes, improvements in
healthcare infrastructure and improved healthcare financing, the report of PwC - CII
titled "India Pharma Inc.: Gearing up for the next level of growth".
THE ROAD AHEAD: INDIAN PHARMA
Spending on healthcare is expected to increase in India at 9-12 per
cent CAGR between 2018-22 to US$ 26-30 billion, driven by increasing consumer spending,
rapid urbanization, and raising healthcare insurance among others. Speedy introduction of
generic drugs into the market has remained in focus and is expected to benefit the Indian
pharmaceutical companies.
BUILDING BLOCKS OF ALCHEMIST LIMITEDS PHARMACEUTICAL BUSINESS:
As we said that "A Journey of Thousand Miles begins with a Single
Step", we have certainly taken many steps toward and envision participating and
completing the Clean India theme of Government of India with Healthy India.
Marketing Strategy: A Strategy has been put forward to serve the bottom
of the pyramid...the masses. The Marketing strategy of Alchemist is aimed at striking at
the Mass of society while corporate strategies aim at striking the class, Alchemist has
ventured to address the healthcare problems of the mass of society. All the programs like
"Quit India" are aimed at creating awareness and solutions to the widespread
diseases in society like Anemia, Calcium Deficiency and Weak Immunity .The programs are
mass based and societal in approach. Hence, Alchemist Marketing Strategy is based on
impacting the masses of India.
Geography and Customer Class:Pharmaceutical division of Alchemist
Limited has presence in Metro/Class I/II and Select class III towns across India. We are
continuously striving for healthcare needs at the bottom of pyramid.
People:We consider our people as the most valuable assets of our
business and they continue to define the Alchemist Pharmaceutical division. We have a
strong team of 250 people. Out of this, 180 are deployed in customer facing activities and
rests are engaged in plant and administrative functions.
Product Portfolio:We have carved a niche of innovative products which
virtually stand out in the competition and occupy mind space of medical fraternity. Our
product portfolio is considered to be one of the best in the industry and it includes
therapy areas like Immune enhancer, Nutraceutical, Antibacterial, Gastrointestinal, Pain
reliever, Anti-allergic, Anti-cold, Steroids, Enzymes, Supplements, CNS etc.
We have almost PAN India presence and the current product portfolio of
400 SKUs in Ethical and Generics is the back bone of our business which reaches to the
deepest corners of the country.
Pharma division broad outlook:The Alchemist Pharma wing is known for
its brands and possible outcomes in the most dreaded diseases like Dengue, Chikungunya,
Cancer, AIDS, Hepatitis, Acid Peptic Disorders, and Gastric Ulcers etc. we believe we
exist for society and hence we continue to serve our society through social programmes
like Quit India to ensure Healthy India. The programmes involve the joint efforts of
medical fraternity, Alchemist and Patients to ensure India is free of Anemia, Calcium
Deficiency and Weak Immunity. Alchemist supports 50% free therapy to all poor patients.
The division has been able to create a strong space in the minds of doctors through niche
brands.
The rampant spread of COVID-19 outbreak, across borders and
geographies, has severely impacted almost the whole world and triggered significant
downside risks to the overall global economic outlook and India is no exception. Due to
the lockdown announced by the
Government of India from 25th March, 2020, entire operations of the
Company came to a halt. The lockdowns and restrictions imposed on various activities due
to the pandemic have posed challenges to the businesses of your Company.
The moratorium on debts and interest payments have been a source of
support in otherwise severely impacted liquidity and operating cash flows. The Board
believes that it is difficult to predict any industry wide scenario for the immediate
short term and the Company expects to resume normal operations soon after lifting of
lockdown. Although there are uncertainties due to the pandemic, the Company is taking
several measures to mitigate the adverse impact by optimizing costs and continuously
realigning the cost and operating structures so as to sustain viable level.
Quit Anemia, Quit Calcium Deficiency and Quit Weak Immunity: Alchemist
Pharma Initiative
After Independence, India has traversed many miles of success in
diverse fields but healthcare continues to be a struggling point for Independent India and
is a stigma on one of the fastest growing economies of world. Government measures have
been done but have not been able to reach the masses. The only healthcare camp established
by the Govt. of India was"PULSE POLIO"which took almost 4 decades to make India
a polio free country. As a result of the absence of such measures, India and Indian
Population continues to suffer from iron deficiency, calcium deficiency and weaken
immunity. Moreover, weak immune system leads to Swine flu, Dengue, RTI, Cough and Cold
that are taking its toll on Indian masses. Alchemist as a socially responsible corporate
has decided to work till we make India free of these three cardinal elements afflicting
Indian Society.Alchemist too believes that a journey of a thousand miles begins with a
single step and initiated its most popular programme Quit India movement for ANEMIA,
CALCIUM DEFICIENCY and WEAK IMMUNITY through a nationwide campaign from July which will
continue till we give India freedom from these ailments. This nationwide programme is of
importance as Alchemist has pledged to support 50% therapy free of cost to selectively
poor patients on first purchase and this medicine will directly go to the doctors from
where it will be distributed to patients.
Alchemist is represented through brands Anemi-XT for Iron Deficiency,
Valcal-M for Calcium Deficiency and IGTG FORTE for Weak Immunity. The scope of this
campaign is huge as alone Govt. efforts will not be sufficient to see that India is free
of these diseases. This campaign would endeavour Alchemist to achieve the wider aim in
addition to Clean India campaign of Govt. of India by making Healthy India. So its
objectives are not only Clean India but ensuring a Healthy India. Alchemist effort is a
NATION WIDE MOVEMENT OF IMPORTANCE.
ALCHEMIST FLAGSHIP BRANDS:
IGTG FORTE: Alchemist Pharma Flagship brand, "IGTG FORTE" is
a possible treatment for 108 Diseases including the most dreaded viral diseases including
Dengue, Chikungunya, Hepatitis, AIDS. Today when the world struggles to combat these
diseases, Alchemist is the one which has defined a global strategy to fight them with the
brand IGTG FORTE which is acknowledged as worlds most potent Anti-Viral. Alchemist is
proud to make in India IGTG FORTE, the worlds most potent Anti-Viral.
IGTG FORTE: A new revolution in treatment of Diabetes
Alchemist Pharma brand IGTG FORTE has now been used by doctors for
treatment of Type II Diabetes which is affecting 371 million people globally. Doctors have
acknowledged the brand in treatment of Diabetes and Diabetic foot ulcers. We are proud to
say that with use of IGTG FORTE we have been able to bring a new revolution which has now
made doctors re-think the treatment of Diabetes from a Chronic Reversible disease to a
disease which may be reversed. This change of approach for management of diabetes has
happened for the first time in the world.
IGTG FORTE: INDIAS 1st Wonder Pill
Alchemist Pharma Flagship brand IGTG FORTE has been acknowledged as
Indias 1st Wonder Pill due to its use in Difficult to treat indications. The
molecule "Bovine Colostrum" has been approved by USFDA as an Orphan Drug.
Alchemist brand IGTG FORTE has been used for treatment of difficult to treat diseases like
Dengue Fever as all the recipients of this drug have clinically registered 5 Fold platelet
rise in just 7 days which hence may reduce the chances of platelet infusion which is the
only option in case platelets fall to abnormally low levels. IGTG FORTE is being used to
treat Idiopathic Infertility, not only the treatment with the brand is economical but the
success rates are been compared to presently used IVF therapy. The difference in cost is
few thousands with IGTG FORTE vs Many Lacs with IVF. IGTG Forte is being used as a support
treatment to treat Arthritis, Cancer and even the most deadliest AIDS. In other words IGTG
FORTE is a solution to all Immuno-Compromised conditions and the confidence of doctors
that it has gained through regular use in patients and in clinic results have made them
certify IGTG FORTE as Indias First Wonder Pill. Seeing the scope of the indications and
confidence of Doctors IGTG FORTE is expected to reach a market capitalization of over of
30 Crores in the next 2 years i.e. by 2020.
Gasease:If any organization has to become a house-hold name, it must
have something in portfolio to treat Gas because thats where every third individual in a
family is suffering. Alchemist is proud to have such a product called as Gasease.
Alchemist endeavor is to seeGasease reaches to every Indian house hold as "Gas"
is the most common problem of every Indian. We are looking for multiplication of product
through word of mouth from every Indian to his neighbor, relatives and finally reaching in
every Indian House-Hold.
VALCAL-M:Calcium deficiency is the most common deficiency found in
Indians right from growing children to women, and to pregnant mothers.Alchemist brand
Valcal-M is another unique product which is marketed by and is the best calcium available
out of thousand brands available in India. Milk is been always considered as very
important source of Calcium. So at Alchemist we have extracted the Best Calcium available
i.e. from Milk. This is the calcium that is vegetarian source unlike other supplements.
Also Valcal-M is a milk mineral complex which means Valcal-M is more than just Calcium; it
also additionally provides Copper, Iron, Manganese, Iron, Zinc, and Phosphorus and Vitamin
D3 which is also required by body for overall growth and other health benefits. Alchemist
Valcal-M is also called as "Milk Pill of India". Valcal-M is chosen by all
leading Gynecologists, Orthopedicians and Physicians for replenishing Calcium levels of
India. It is also a part of QUIT INDIA revolution started by Alchemist.
Alchemist Brands Reach In Institutions
Alchemist Pharma has emerged popular with the institutions where
products are registered with the premier institutes of the country like AFMSD, DGAFMS,
Alchemist pharma has product queries from reputed hospitals like Post Graduate Institute
Chandigarh. We are also registered with Municipal Corporations of Delhi, State run govt.
hospitals and also govt. dispensaries for the class of brands we market.
PHARMA DIVISION
Alchemist Pharma division has around 400 SKUs and promoted through a
very strong committed field force. Pharma division enjoys tremendous respect with the
medical fraternity and covering a universe of around 20,000 Doctors and 30,000 retailers
across the country. Alchemists Molecules have been acknowledged with tremendous response
at the market place.
AGRI BUSINESS
Domestic Market
Floriculture in India is being viewed as a high growth Industry. Indian
Floriculture Market is growing at a Compounded Annual Growth Rate (CAGR) of about 25%. A
strong increase in the demand for cut and loose flowers has made floriculture as one of
the important commercial trades in Indian agriculture. According to report, " Indian
Agriculture Market Report & Forecast: (2018-2025) ", the demand for flowers is
increasing robustly in India. While exports remain a key motivator for cultivators, the
domestic demand for flowers is also increasing exponentially, especially in the metros and
larger cities. Modernization and growing western cultural influences has driven consumers
to buy flowers on a number of occasions like valentines day, marriages, anniversaries,
birthdays, friendship day, mothers day, etc. Not only occasions flowers/bouquets keep in
demand throughout the year.
International Market
India is the second largest producer of flowers after China. Commercial
floriculture is becoming important from the export angle. The liberalization of industrial
and trade policies have further paved the way for development of export-oriented
production of cut flowers. It has been found that commercial floriculture has higher
potential per unit area than most of the field crops and is therefore a lucrative
business. The liberalized economy has given an impetus to the Indian entrepreneurs for
establishing export oriented floriculture units under controlled climatic conditions.
STEEL BUSINESS
Size of the Steel Wire Industry in India is 2.6 million tonne
approximately in terms of volume & USD 1.7 billion in terms of value, combining both
organized and unorganized sectors. Approximately, 70% of total production comes from
organized producers and the rest from the unorganized counterpart. Wire Industry is
accountable for approximately 5% of total demand of steel in India. India constitutes
approximately 1% of the global wire exports and approximately 3% of Indian production
caters a portion of the global markets.
Steel wire is used to make barbed wire, razor wire, wire mesh, chain
link fencing for Poultry and other wire fencing for nonresidential and residential
building applications. The value is projected to increase at an annualized rate of 8.2%,
fueling higher demand for wire fencing.
According to a market reports published by Transparency Market
Research, "Fencing Market - Global Industry Analysis, Size, Share, Growth, Trends and
Forecast, 2018-2022," due to the slowdown in world economic growth, the Fencing
industry has suffered a certain impact, but still maintained a relatively optimistic
growth. The metal fencing market is in a commanding position owing to a wide range of
products available under this category. The market is expected to grow at a CAGR of 4.5%
between 2017 and 2025.
The global fencing market is largely driven by factors such as the
rising consumer interest in home improvement and home decor and the need for security and
safety. Expanding residential construction and growing economies across the globe are also
supporting the growth of the fencing market. The increasing demand for residential fences
and the growing acceptance and popularity of synthetic alternatives will serve as an
opportunity for the fencing industry. The global fencing market is affected by the
fluctuating raw material prices and the rising energy cost.
The fencing market is segmented into two major categories based on
product type into agricultural wire fence and commercial wire fence. Based on material
type, the market is divided into four segments, namely metal, wood, plastic &
composite and concrete fencing. The end use segments covered in this report are
residential, agricultural and the industrial sector. The market is further segmented by
geography into North America, Europe, Asia Pacific and Rest of the World regions.
STRENGTHS
1. Direct guidance by top Management in routine operations and
functions.
2. Intervention by top Management in resolving crisis faced by the
Company.
3. Team of professional executives with strong background.
4. On technical and operation side the company is managed by team of
professionals.
5. Cordial industrial relations.
THREATS
1. Various business risk faced by the Pharma division.
2. Time taken by executives to overcome from various new rules and
regulations.
3. Extended credit allowed international and overseas trading causing
fund blockage.
4. Reduction in overall business output and gross turnover.
STRATEGIES
1. Strategies development and deployment aligned to its vision.
2. Substantialinvestment in past creating manufacturing and other
business infrastructure.
3. Developing and maintaining production as per market demand.
4. Achieving process improvement, cost efficiency, optimizing raw
material sourcing and innovate new business ideas.
INTERNAL CONTROL SYSTEMS
ALCHEMIST is continuously working to strengthen internal control
systems commensurate with the size and scale of business. Clearly defined policies and
procedures supplement the Internal Control procedures. A well established and empowered
system of internal audit and control procedures independently review the financial and
operational controls and reports deviations, if any, across all verticals and further
enables rectification, as and when required. The Company is constantly engaged in
practicing the best financial and operational control systems, as per international
practices and standards. The Companys internal audit team carried out extensive audits
throughout the year, across all verticals and reported to the Audit Committee of the Board
of Directors. The Audit Committee continues to address all important issues and
recommendations made by the Internal and Statutory Auditors which are consequently
implemented to strengthen various functional areas.
HEALTH, SAFETY & ENVIRONMENT (HSE) POLICY
ALCHEMIST has recognized health management, occupational safety and
environment protection (HSE) as one of the most important elements in the organizations
sustainable growth and has closely linked it to Alchemists cultural values. The Company
continually strives to create a safe working environment by being responsive, caring and
committed to the various needs governing the security and well-being of employees.
In order to honour the aforesaid commitments, the Company has
implemented systems in its operations that accord with the requirements of health, safety
and environmental standards and strive to:
- Assume its business and ethical responsibilities to exemplify its
endeavour towards good corporate citizenship.
- Continue to inspire innovations in methods & practices and to
ensure highest standards of health, safety and environment.
- Comply with all applicable laws and regulations with regards to HSE
and continually aspire to the highest standards in the same.
- Commit to the continual reduction of waste and implement processes to
ensure the reusability of natural resources.
- Continually invest in the up-gradation of facilities, maintenance of
machinery and welfare of our employees.
- Constantly train and educate employees on contemporary best practices
to ensure the highest levels of safety and sustainability in our operations.
INDUSTRIAL RELATIONS & HUMAN RESOURCE DEVELOPMENT
The Company continues to be committed and focused on its most valuable
resource viz. its employees. The Company believes that employee plays a pivotal role in
driving performance and has effectively empowered them. As a means of equipping employees
with a range of skills including their up-gradation and to enable them to perform their
responsibilities, training and human resource development (HRD) continued to receive
priority during the year. Training and HRD efforts of the Company are aimed at sharpening
business skills and competence needed for better employee performance and provides all
possible opportunities and support to the employees to improve their performance and
productivity. In pursuance of the Companys commitment to retain and develop best
available talents, several programmes are conducted at various levels on a regular basis.
Employee relations continued to be cordial and harmonious at all levels and in all units
of the Company.
CAUTIONARY STATEMENT
Statements in the Management Discussion and Analysis describing the
Companys objectives, expectations, predictions and assumptions may be forward looking
within the meaning of applicable Securities Laws and Regulations. Actual results may
differ materially from those expressed herein. Important factors that could influence the
Companys operations include global and domestic economic conditions affecting demand,
supply, price conditions, change in Governments regulations, tax regimes, the laws and
other factors such as litigation and industrial relations.
For and on behalf of Boards of Directors Alchemist Limited
|
Sd/- |
| Date: 04.09.2020 |
Bikram Bhattacharya |
| Place: New Delhi |
(Whole-Time Director) |
|
DIN-03595530 |
+91-9892691696
