Amrutanjan Health Care Ltd Management Discussions.


FMCG industry is valued at around INR 4.4 lakh crores* growing at 7%. The economy was showing signs of revival in the last quarter of FY 1920 before the nationwide lockdown was declared in March 2020 as a COVID 19 control measure. In fact, the Index of Industrial Production (IIP) growth witnessed an upward trend in the months of January and February 2020* before it went negative in March 2020. Following the pattern, FMCG sector had shown a growth of 7.5%* in January & February, 2020 before dipping to 4%* in March, 2020.

While the recent pandemic has caused large scale disruption in our lifestyles, the consumer usage and purchase behaviour has undergone a vast change in the ‘new normal which is likely to stay for a longer time.

- ‘Consumers became more health and hygiene conscious is the most talked about ‘mantra which has resulted in increased penetration of all hygiene products incuding hand sanitizers.

- Consumers new preference to E-Com and Modern Trade Channels over traditional markets in the changed circumstances remains to be seen for its endurance even after the return of normal life. This is more so considering the fact that India is primarily a “traditional trade” market, which contributes more than 85% of FMCG sales*.

(*Source Nielsen)

The pandemic disruption opens up scope for newer opportunities in the Industry, particularly in personal care and health care segments, which if utilised swiftly would yield good returns in the near future. The impact of COVID 19 is expected to be felt predominantly in the FCMG sector . The businesses that are adopting quickly to the changing demands and showing agility in planning & execution takes the initial advantage.

Company Overview:

Your Company is one of Indias leading companies in OTC market having 127 years of brand existence with lateral diversification in the areas of beverage and womens hygiene segments. Its pain balm variants are manufactured in its own units located at Chennai and Hyderabad whereas the womens hygiene products are manufactured in a GMP certified unit owned by a Strategic European Partner. Amrutanjan has its beverage manufacturing facility located on the outskirts of Chennai.

Pain Management

The OTC business of Amrutanjan has grown by 4.0% during 2019-20 over the previous year with gross sales of Rs. 266.05crores. While the General Trade (GT) format continues to be the top contributor to the overall turnover, due to continued focus on improving MT and Online channels, the contribution from these channels has increased by 1.4% (8.5% to 9.9%).

Head category continues to be the major contributor at 71.4% of the total domestic sales. With our continued focus on Comfy expansion, the contribution of Womens Hygiene has increased from 14% to 15.3%of the total sales.

Amrutanjan has also responded well to the changing market dynamics with the launch of ‘hand sanitizers in the hygiene space.

Your company has been consistently investing in its brand through varied marketing activities. In order to achieve greater heights in OTC business, several marketing interventions were undertaken during the financial year, which include:

• Significant investments in television media across all key states;

• Increased number of digital campaigns;

• Print media advertisements in Odisha, Gujarat, Jharkhand, UP, Rajasthan, Andhra Pradesh, Telangana, Karnataka and Kerala regions;

• Radio campaigns;

• Branding on the back-side panel of public transport vehicles;

• In-store branding to drive Point-of-purchase awareness and offtake;

• Sampling activities during Marathons, Pilgrimage Points, IT Parks to improve trials;


The food and beverage industry accounts for approximately 19% of the FMCG business. Increasing health consciousness among all sections of consumers will lead to greater scope for health and rehydration drinks.

Electro+ ORS Rehydration:

Electro+ contains fruit juice with the goodsnessofVitamin-C, Glucose and Electrolytes that helps to regain lost salts & fluids due to diarrhoea and hot climate conditions. Electro+ has ingredients that enhances immunity in human body which is vital to counter any diseases. One bottle of Electro+ has Recommended Daily Allowance (RDA) of 40mg/day. The Orange variant which was launched last year in addition to existing Apple variant has received good acceptance among the consumers which was evident from its contribution to overall Electro+ increased from 31% in 2018-19 to 45% in FY 2019-20. Considering the benefit coupled with growing health consciousness among the consumers, Electro+ is expected to expand its footprint across India through our well established OTC channels.

Womens Hygiene

Amrutanjans womens hygiene brand Comfy entered this segment in the year 2013 with the objective to provide affordable sanitary napkins to majority of women in India who were resorting to un-hygienic method of menstrual protection like cloth and ashes. The successful launch of Comfy has made menstrual hygiene accessible to many women across the country. With the experience gained after the first launch, a new improved version was later launched with the name - Comfy SnugFit that caters to the needs of the first time and cloth users. Comfy sale has grown manifold and has achieved 2% volume market share with a growth of 35% in MAT March 2020* as against the same period last year in a highly competitive market dominated by premium brands. (‘Source-Nielsen)

Amrutanjan Comfy is manufactured in a GMP certified factory and is designed with the inputs in product features provided by research team to better meet the expectations of Indian women. Any new product launch goes through several consumer validation and lab tests before being introduced into the market to ensure good reception.

The product is accepted as a finest quality sanitary napkin in the market with 80% better absorption than the leading brand (as opined by the in-house R&D), anti-leak system and imported absorption material from North America.

Considering the potential offered by the Category, Amrutanjan has launched two more new variants - Comfy XL and Comfy Ultra during the year. With these new variants, we are able to expand the reach of consumers and will continue to focus on achieving exponential growth year after year in this category. We hope that this would help our women population enjoy better lifestyle and contribute their best to the nation building.

Congestion Management

Cough syrup, lozenges, cold rub and nasal inhaler are the categories catering to Congestion portfolio. Amrutanjan Relief Inhaler is the second most used brand in the nasal inhaler category. Amrutanjan will continue to emphasise on natural solutions based on ayurveda for congestion.

Modern Format Focus

The sales growth momentum has continued in Modern Trade (MT) Channel this year also with the sales of Rs. 25.17 crores, a growth of 18.5%. TheCAGR growth of Modern Trade is 26.7%for the last 6 years.

Amrutanjan has maintained the No. 1 rank in Modern Trade in Head Category with the volume market share of 41.1%* in YEC 19. Amrutanjan products are available in 11,100* MT stores (YEC 19). The product acceptance among MT customers including new categories is encouraging. (‘Source: Nielsen)


Our products are currently available in leading E-commerce channels viz., Amazon, Sasta Sundar, Big Basket, Nedmed, Pharmeasy, Medlife, Reliance Jio Mart, Medplus Ecom,Apollo E-Com, D Mart E-Com. Total sales achieved during the year through E-Com was Rs. 1.58 crores and this channel is showing growth month-on-month indicating good offtake for our products. With the growing thrust, we are aiming for 1.3% contribution from E-Com channel both from existing chains as well as from the new chains under pipeline.


Despite challenging macro conditions, the companys exports breached Rs. 4 Crores mark for the second consecutive year. Africa continues to be our largest contributing region at 69.3% of total exports and it has witnessed an increase of 13.2% in FY 2019-20 over the previous year.

Export arrangements have been made to enter Phillipines and Laos in South East Asia markets and Kenya in Africa.

Supply Chain Management (SCM)

There was more focus to minimise supply chain risk by developing new suppliers and engaging strategic partnerships with existing suppliers, distributors and other third party logistics providers. We continue to strengthen our supply chain by ensuring timely product availability, cost control, empowering the team with accurate sales and operational planning, improving product placement efficiency, prompt product SKUs availability across sales points, etc.

As far as input raw materials are concerned, exhaustive field visits were made to know the real & fair market condition prevailing for menthol. Also efforts were made to identify new potential manufacturers for key raw materials in addition to various special projects undertaken in this direction like backward integration, etc. We came across price escalation especially in raw materials like Gandhapura, Turpentine & Karpoor due to unfavourable supply demand equation. The other materials spend including Menthol was under control which helped to save INR 5 Cr when compared to previous year in OTC division.

Packing Material costs have shown a positive trend due to favourable Crude Price & Forex Index. We were able to control material cost in Beverage Division mainly because of decline in raw material price of Sugar & Mango Pulp.

Also, manufacturing process renovation at F&B factory helped to attain better quality products in addition to providing improved Hygiene work environment.

On the Logistics front, introduction of bigger trucks made in January 2019 by replacing small trucks to achieve freight cost optimisation of

Women Hygiene Products, has reaped full benefit during this financial year. This has resulted in a saving of INR 1.10 Cr. Revamping of our depots by optimising storage space, re-location to handle bigger trucks with ease & conversion of few depots from Conventional mode to 3PL, etc., helped to handle stocks better & achieve the desired savings in freight cost.

Information Technology

The usage of information technology within Amrutanjan is rising year after year with the extension of its application across all key functions & processes. Apart from maintenance of accounting data in ERP, the technology has been made best use of in Sales and Marketing areas also through initiatives like SFA (Sales Force Automation), online consumer tracking and supply chain touch points.

Sales Force Automation was introduced in the states of Karnataka, Tamil Nadu, Andhra Pradesh and Telangana in the year 2018-19 and it was further extended to Kerala, Maharashtra Odisha and West Bengal in the year 2019-20.

The retail orders from around 2.40 lacs outlets are processed through the mobile app by 431 field staff in the above states.

Your company has planned to extend the Sales Force Automation to other states in 2020-21 thus enabling the entire sales team to process retail orders through mobile app.

The project has brought significant advantage to the sales team on ground as well as at the corporate level:

• Enable sales team to manage/ improve their day-to-day operations in terms of number of outlets covered, productivity, number of lines sold, number of lines available in outlets, focus products performance etc.,

• Enabling the tracking of performance of sales team by their managers thereby improving the efficiency.

• Plan marketing interventions at the outlet level and track the performance of specific activities to understand the impact.

• Enabling HR in maintaining the attendance and in planning Incentive / DA.

• Providing birds eye view to the management on Key Sales and HR metrics for future planning.


The pain management segment of OTC category continues to be the core area of focus for Amrutanjans product portfolio. As can be witnessed in the diagram below, the head and body pain management contributes to majority of the companys sales (79%) and will continue to be the lead revenue factor for future growth.

Specific plans are put in place to increase the share of revenues from West and North Zones which remains low contributor to the total revenue.

ZONAL SALES BREAK UP FOR OTC (Non beverages, including Womens hygiene)

Favourable material costs trend including the price of key raw materials like menthol and the upward price revision of our products have contributed to the improved Gross Margin during 2019-20 as compared to the previous year.

The following will continue to be the growth drivers for the company in the coming year:

• Expansion of pain business in Western and Northern Zones

• Further strengthening the existing markets by introducing new products

• Continue improving distribution reach across town class with specific milestones for stockist appointment, chemist/ wholesale reach, etc.,

• Scaling up of new categories launched in the past 3-5 years

• Focus on maintaining the Gross margin ~60%

• Investing in brands and positive consumer experience

• Building on secular trends which are driving the Womens hygiene category


Rs In Lakhs

2019-20 2018-19
Net Sales 24,077.67 23,073.35
Results 3,177.02 3,645.74
Net Sales 1,829.92 2,075,98
Results (156.22) (367.80)
Total Capital Employed 15,942.56 14,573.63


FMCG Industry in India is expected to witness flat growth in 2020 following severe and extended lockdowns, restrictions on manufacturing units, social distancing norms and store closures. The industry which was trying to revive from a difficult 2019, had a significant hit in the first quarter of 2020. However, it is expected that the second half of the year 2020 will witness a significant improvement and bounce back by the industry.

Amrutanjans product portfolio, with “pure, health & essence” in its quality & utility, has responded positively to the pandemic situation and has shown little impact to the new normal.


The areas of concern in short term could be the impact of the situation arising out of the current pandemic and the resultant lockdown that is announced from time to time as a control measure. Any further spreading of the disease and its economic fallout could influence some of our products range.

The unpredictable fluctuation in key raw material prices, risk of new product launch not panning out, supply chain disruptions, major changes in government policies & regulations, are some of the longterm risks associated with our business.


The adequacy of internal control systems and the processes are being audited every quarter in select areas by a qualified external auditors and reported to Audit Committee and the Board. The follow up action on the observations have been reported back with a timeline and status. Statutory compliances are monitored through a fully automated inhouse alert system and adherence is certified by the Heads of Departments every quarter.

The Company has also established an In- house Internal Audit Wing reporting to the Chairman & Managing Director which conducts audit on internal checks and processes and provides suggestions for further improvement in each area audited. The in-house team coordinates with the Internal Auditors to ensure successful closure of their audit observations. The internal auditors have a free right to access all required information.


The Companys Financial Performance with respect to operational performance can be enumerated as below:

Rs In Lakhs

2019-20 2018-19
Net Revenue from Operations 26,147.67 25,322.73
Other Income 832.13 713.09
Total Income 26,979.80 26,035.82
Total Expenditure 23,076.37 22,194.90
PBIDT 3,903.43 3,840.92
Depreciation 435.94 315.97
PBIT 3,467.49 3,524.95
Interest 22.10 8.22
Profit from continuing operations before tax 3,445.39 3,516.73
Current / Earlier year Income Tax 943.00 1,023.00
Deferred Tax (5.94) (6.04)
Profit from continuing operations 2,508.33 2,499.77
Loss from discontinuing operations (net of tax) - (48.34)
Profit for the period 2,508.33 2,451.43
Other comprehensive income (net of tax) (29.37) (56.55)
Total comprehensive income for the period 2,478.96 2,394.88
Key Financial Ratios (expresses as %)
PBIDT/ Net Revenue from Operations 14.93% 15.17%
PBIT/ Net Revenue from Operations 13.26% 13.92%
PBT/Total Income (continuing operations) 12.77% 13.51%
PAT/Total Income (continuing operations) 9.30% 9.60%
PAT/Total Income (continuning & discontinuted operations) 9.30% 9.42%


1. Quality in Amrutanjan is a culture which is in-built in our all activities based on Quality management principles.

2. The purpose of our Quality Assurance is to safeguard not only the consumers well-being but also to deliver product performance. It ensures that all operations associated with the manufacture of our products are of a standard that meets the consumers expectations of safety and efficacy.

3. The processes we have built based on Quality Management system (ISO 9001 for OTC division), Food Safety Management Systems (ISO 22000 for F&B division) and six sigma methodology ensure the quality and safety of our products provided to the consumers. The products are designed to inbuilt Quality and Safety and all our processes are centric to achieve it.

4. External providers (Vendor) Qualification, audits and continuous monitoring of inputs is the focus to achieve best Quality output and consumer satisfaction.

5. The design of the containers and packaging process ensures AHCL uniqueness and pilfer proof to avoid counterfeit products.

6. The production and inspection excellencies are designed to ensure safe and superior quality products as an output from our manufacturing locations.

7. Post COVID 19 lockdown, the manufacturing unit at Alathur has taken all precautionary measures to facilitate safe and conducive environment for workers and materials in the factory. SOP for Work Resumption has been put in place and followed to prevent any spread of the pandemic within the facility. The preparedness was assessed by a third party audit which has given a satisfactory report on the precautions taken.

Advanced Pain Management Centre (APMC)

Amrutanjans Advanced Pain Management Centre (APMC) at Chennai has got the NABH Certification (National Accreditation Board for Hospitals & Healthcare providers) under pre Accreditation entry level small healthcare programme for non surgical pain management services.

The hospital strictly adheres to the NABH guidelines to ensure patients safety and process standards in all its functions. The entire procedures and processes followed in APMC is subjected to periodical audit by inhouse Quality Team.



Amrutanjans strong brand reputation always helps to pick the best qualified and highest potential candidates. The good HR practices followed by the Company further support the process of cultivating and retaining resource people as there is a desperate need for organizations to retain younger talent to stay ahead in highly competitive market environment. The top management strives to educate and involve the work force to introduce newer ideas that would facilitate the success story to continue with more vigour.


The following analysis demonstrates that your company is dominated by young talents even as it has crossed 127 years of brand presence and is eager to attract more youth force in future. The employees in the age group between 19 and 45 constitutes 77% of the total strength of 677 employees of the Company and the balance 23% has crossed the age 46.

The employee Performance Management System (PMS) has been restructured to bring it at par with industry standards. This would make the PMS system a more comprehensive scheme and the employees can be assured of transparency which is bound to reflect positively in their performance. The company has plans to schedule series of trainings and skill development activities to inculcate talents among employees and promote/elevate them to more responsible positions to ensure achieving long term organisational objectives.


Sourcing right talent is the biggest challenge for any company today. It is through continuous efforts that both the current and future requirements of various positions in the company are identified and placed to avoid manpower gaps at any point in time.


The management is determined to build a future-?t talent group within the company to take it to the next level of growth and sustainability. Various leadership programs are represented by key employees to enhance the quality of leadership within the company.


Higher the level of engagement among employees; higher the value of output. Amrutanjan has established a process of measuring the engagement levels among employees through a survey called the "PULSE", the report of which emphasis the areas of development that needs to be concentrated by the HR for better performance in the years to come. The scores of the last 6 years is given in a graphical representation:


The companys Incentive programs strive to motivate the sales force towards achieving their goals and rewarding them suitably for the same. Your company has a vibrant variable pay policy which also takes into consideration the companys performance in addition to the individual performance for arriving at the eligibility. The services rendered by employees for a longer duration are being appreciated and recognized through gifts which would motivate other employees to stay and build a career within the company.


Amrutanjan has maintained excellent relationship with its affiliated Union, Amrutanjan Health Care Limited Employees Union. It enjoys cordial relationship with the Union and the Union representatives taken into con?dence on all IR issues so that no con?ict arises between the union and the management.

The company is poised for growth in the coming years and the Human Resources practices at Amrutanjan is fully in tune with the business requirements of the organization.

As per the requirement of the Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013 (SHWW Act), your company has a robust mechanism in place to address complaints reported under it. Your company has constituted a Committee composed of internal and external members who have extensive experience in the ?eld. In 2019-20, your company has no case of sexual harassment reported to the Committee. During the course of the year, several initiatives were taken to demonstrate the Companys Zero tolerance philosophy towards gender discrimination and sexual harassment. As on March 31,2020, your Company had a strength of 677 employees (including OTC, Beverages and Advanced Pain Management Centre).


In compliance with the SEBI (Listing Obligations and Disclosure Requirements) (Amendement) Regulations, 2018, the Company is required to provide details of significant changes (change of 25% or more as compared to the immediately previous financial year) in key sector-specific financial ratios.

Given below are the key financial ratios identified by the Company including return on net worth:

Particulars 2019-20 2018-19
Debtors T urnover Ratio 8.80 8.32
Inventory T urnover Ratio* 13.66 20.31
Interest Coverage Ratio** 156.90 428.83
Current Ratio 3.22 3.87
Debt Equity Ratio** 0.24 0.19
Operating Profit Margin (%) 13.26% 13.92%
Net Profit Margin (%) 9.59% 9.68%
Return on Net Worth (%) 15.73% 16.82%

* The significant variation in the Inventory Turnover Ratio is on account of inventory piled up at the end of the year due to COVID 19 lockdown.

** Variation due to adoption of IND AS - 116 Leases.

Cautionary Statement

Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectations may be ‘forward looking within the ambit of applicable laws and regulations. Actual results, performance and achievements might differ substantially or materially from those expressed or implied. The Companys performance could also be affected due to the failure of monsoon which in turn may increase the input costs, major political and economic changes in India and changes in tax laws.

For and on behalf of the Board
Place : Chennai S Sambhu Prasad
Date : June 18, 2020 Chairman and Managing Director