Amrutanjan Health Care Ltd Management Discussions.


Global Economy amid COVID-19 and Business Environment

The financial year commenced with strong expectations of economic growth after the massive COVID-induced disruptions in the previous year. The impact of COVID-19 continued to be felt during the initial part of the financial year.

A report by the International Monetary Fund (IMF) indicated that global growth is expected to weaken from the 2021 levels in 2022. While 2021 witnessed some recovery in global growth, the momentum was subdued due to the outbreak of the Delta and Omicron variants of COVID-19. The pandemic outbreaks affected critical links of global supply chains, causing longer-than-expected supply disruptions that impacted manufacturing. It also compelled countries to re-impose lockdowns and mobility restrictions. These disruptions, coupled with rising energy prices, resulted in higher, broad-based inflation as well as market volatility in several developed and emerging economies around the globe. The situation could potentially worsen due to higher crude oil prices depending on the duration of the Ukraine-Russia conflict. Global developments led to supply chain interruptions throughout the year with longer lead times and higher import costs. Assuming that the pandemic and the Ukraine-Russia conflict abate throughout 2022, supply chain issues are expected to ease in the later part of the year. However, global trade levels will continue to remain moderate in 2022 and 2023.

COVID-19 further accelerated digitization and the use of emerging technologies such as Artificial Intelligence (AI), Big Data, Real-World Evidence (RWE) and Remote Patient Monitoring (RPM). The health care industry had to make quick decisions and investments to digitize its operations to ensure business continuity.

Indian Economy

The macro headwinds of new variants of COVID-19 and inflation impacted India as well. The Government of India has taken several initiatives to improve the economic condition of the country. The emphasis on building infrastructure and promoting ‘Make in India programs along with resilient domestic demand and consumption is likely to help sustain growth in the Indian economy.


Industry and Company Overview

The FMCG or consumer products industry in India has seen a remarkable transformation in the last two years with

COVID-19 acting as an inflection point and giving a fillip to natural health care products. Growing awareness, easier access through online ordering and delivery channels and changing lifestyles have been the key growth drivers for the sector. The Indian FMCG industry was valued at around

5.1 lakh crore in FY22. Given the population of India, it is a volume-led market. However, if the trends for the last four calendar years (from 2018 to 2021) are analysed, the trend witnessed a reversal in 2021 where the growth was primarily price-led. The price-led growth was 2 times the volume growth (in 2020, both price and volume growth were negative due to the pandemic)1. In FY21, the FMCG industry growth was led by the price for three consecutive quarters (Q2 FY21-Q4 FY21)1. In fact, in the last 2 quarters, the volume growth was negative, indicating a decline in consumption. Retail inflation continued to rise from 4.2% in April 2021 to 7.0% in March 2022#. As a result, companies started focusing on smaller SKUs. Amrutanjan Health Care Limited (AHCL) also emphasised on smaller SKUs to meet consumer needs. With this focus, AHCLs smaller SKUs of 4ml and 1ml in the balms portfolio witnessed the highest value growth of 39% and 26% respectively.

The Company invested in expanding its footprint to the lower town class, particularly in rural areas by appointing sub-stockists to improve last mile coverage of outlets. These initiatives have yielded results and the value contribution from rural has increased to 29%* in FY22 from 28%* in FY21.

OTC Business

The OTC Business of AHCL has grown by 20.2% over the previous year, achieving gross sales of 416.73 crore this year. The General Trade (GT) format continues to be the top contributor at 86% of the overall turnover. E-Commerce also gained traction with consumers shifting to contact-free purchases as the fear of COVID-19 hit a peak in the early part of the year. E-Commerce continues its growth story and its contribution has increased from 1.3% in FY21 to 2.1% in FY22.

In domestic sales, the Headache segment continues to be AHCLs top contributor at 69.9%. Also, other categories have increased their contribution from last year, reporting an encouraging trend.

• Womens hygiene increased from 16% to 17% (Sales: FY21 54.34 crore; FY22 69.5 crore)

• Congestion increased from 2.5% to 3.5%

• Body segment increased from 7.3% to 8.2%

Pain Management

The Company re-launched its headache balm portfolio based on consumer insights. It clinically tested the balm portfolio for its performance to provide instant and long-lasting relief. In the pain relief category, below are the claims for AHCLs products:

The performance claims were amplified through an

Integrated Marketing Communication (IMC) plan, which was on packs and other mediums such as TVCs, digital media and Point of Sales.

The new TVC highlights the relevant ailments and how the products offer instant and long-lasting relief.

The Company also promoted its body pain relief portfolio by associating with the champions of the Tokyo 2020 Olympic games. AHCL onboarded weightlifting Silver Medallist

Mirabai Chanu and wrestling Bronze Medallist Bajrang Punia as brand ambassadors to endorse their Advanced body pain management products - Back Pain Roll-On, Joint Muscle Spray and Pain Patch. The TVCs narrate the success stories of these athletes and the role of AHCLs Advanced pain management products in their journey towards excellence.

As part of the partnership, the brand ambassadors featured in a series of campaigns including new TVCs and digital commercials. Both these athletes have also appeared in other communication such as Point of Sales and PR activities.

Electro+ ORS

Global warming is looming as a great threat to mankind. The average temperature of the earths atmosphere is rising and one of its impacts is hotter summers. Due to these conditions, people are witnessing dehydration and its ill effects. As a result, there is an increased demand for rehydration beverages.

Rehydration continued to be the focus category for your Company last year as well. There is an increased awareness amongst consumers about dehydration. Electro+ fulfills requirements of a rehydration drink and it has Electrolytes, Glucose and Vitamin C (Each bottle of 200ml Electro+ has 50% of the Recommended Daily Allowance of Vitamin C) along with Fruit Juice (Apple/Orange). To address the growing consumer demand for rehydration products, your Company undertook various activities to drive consumer awareness, consideration and trials for Electro+.

Marketing Activities

AHCL continued to build the proposition of ‘All Day Rehydration through TVCs, Digital, Point of Sales and On-ground events. Its TVC highlights incidences of dehydration among consumers across different segments and consumption occasions (working, sportsperson, people suffering from ailments, etc.) with an evocative sign-off line ‘Rehydrate,

Feel Alive.


Chemists are the lead channels for this category. AHCL deployed an innovative visibility element to dispense products and these bottle holders enable products to be distinctly visible at the outlets.

AHCL has been associated with sports for a long time and there has been a good association between AHCLs products and sports, particularly the body and rehydration range ofthe products. Electro+ has been strategically associated with PGTI (Professional Golf Tour of India) since 2018 and this association continued in FY22 with Electro+ being the ‘Official Rehydration

The integrated communication program across TVCs, digital media, Point of Sales and on-ground activities have helped the brand to register a strong growth of 136% over the previous financial year (Sales: FY21 12.82 crore; FY22 30.26 crore), driving the revenue contribution of beverages to increase from 5% to 8% of the overall Company revenue.

Womens Hygiene

The level of awareness and education regarding womens menstrual health and hygiene remains low and is still considered a stigma in major parts of the country.

Over 50%^ Indian women still use cloth in place of sanitary napkins during menstruation. Accessibility and affordability of high-quality products are major barriers to better menstrual health.

Comfy Snug Fit sanitary napkin was launched with the purpose to provide hygienic menstruation solutions primarily to cloth users. Comfy, with its superior technology, offers high-quality sanitary napkins at an affordable price point. Presently, Comfy sanitary napkin is sold across the country with almost 56% of sales coming from rural India1.

Marketing Activities

During FY22, AHCL deployed various activities to drive awareness and trials. One of the key activities was the development of a new TVC. The Company onboarded movie celebrity Shraddha Kapoor as the brand ambassador for the Comfy brand due to her popularity and connection with the target audience. The new TV campaign aims to educate cloth users on the benefitsof using a sanitary napkin.

AHCL also undertook a few retail and on-ground activities to build saliency. At the retail store, the Company deployed Floor Stacking Units (FSU) and window displays across all key markets.

^ Source: NFHS 1 Source: Nielsen

FSU and Window Display

Project Disha

Project Disha as the name suggests is ‘Direction conceptualised and executed with the purpose to educate and encourage women to use sanitary napkins.

This initiative was first rolled out in Tamil Nadu markets with a population below 1 lakh. Project Disha was executed with vans travelling to rural markets, sampling Comfy sanitary napkins and explaining their benefits, thereby building awareness and grassroot level demand. After an encouraging response, Phase 2 of this initiative was rolled out in Andhra Pradesh, Telangana, Uttar Pradesh, West Bengal, Jharkhand, Maharashtra and Orissa where cloth usage is relatively high. Through Project Disha, AHCL reached out to 1,450 towns/villages with a population below 1 lakh and sampled Comfy sanitary napkins to 5 lakh consumers in total.

New Launch: Amrutanjan Stop Pain Dental Gel

AHCL entered the oral care segment with Stop Pain Dental Gel to offer instant relief from tooth pain and swollen gums. Amrutanjan Stop Pain Dental Gel combines the power of 5 Ayurvedic ingredients - Lavanga Taila, Tailaparna Taila, Pudinah Satva, Yavani Satva and Darusita Taila. It starts working in 30 seconds2 and the application of a single drop provides effective relief from tooth pain with zero side effects.

Key Benefits:

• Offers quick relief from tooth pain in just 30 seconds

• Safer than a tablet

• Easy to use product with no side effects

New Launch: Comfy Cottony Regular

Depending on the consumers preference for dry and cotton sanitary napkins, AHCL offers 2 variants, dry and regular cottony. The Company has expanded its Comfy product line with the introduction of the cottony variant - Amrutanjan

Comfy Sung Fit Regular Cottony in FY22.

Key Benefits:

• Offers 80% better absorption

• Leaves zero stains

• Provides a soft top sheet that controls rash

Modern Trade

In continuation to last year, the Company registered strong growth in the modern trade channel by delivering

37.17 crore and a growth of 17.7% in FY22. Over the last eight years, the modern trade channel has grown almost six times with an encouraging CAGR of 25.4%.


Expanding the distribution reach has always been a key focus area of the Company. All continued investments in expanding distribution have yielded results last year. AHCLs pain management products are available in almost 12 lakh outlets across the country as of Q4 FY22, which marks the highest ever outlet count in the history of the AHCL.

Comfys distribution is also consistently growing and reached 3.5 lakh outlets during Q4 FY22

AHCL has invested in ‘Project M5K with the key objective to onboard 5,000 distributors, super stockists, and sub stockists. Considering the wide range of product categories encompassing head and body pain management, sanitary napkins and beverages, there is a need to engage with different types of distributors for each category. The Company appointed distributors with expertise across

OTC, pharma and FMCG thereby meeting the infrastructure requirements of the respective categories. In FY22, the Company added around 150 super stockists and 1,200 sub-stockists to reach towns/ villages with fewer populations.

Metro Towns

Metro towns have contributed to a significant proportion of AHCLs sales with 34%* of total offtake (in the case of the overall Rubefacients category, it is 25%*). To further strengthen its presence, the Company launched an exclusive project targeting 15 towns including the top contributing metros. The project objectives are:

1. To increase Per Dealer Offtake (PDO) of high-growth SKUs in the existing outlets - 8ml balms, Faster Relaxation Roll-On, Electro+ and Advanced Back Pain Roll-On

2. To increase direct coverage of outlets

3. To establish new outlets where the above SKUs are not present

To drive these objectives, the Company undertook the following initiatives:

• Invested in TV media

• Utilized digital media for products including Amrutanjan Faster Relaxation Roll-On, Amrutanjan Back Pain Roll- On and Electro+

• Hosted visibility drive across specific

• Enhanced visibility at the store

• Recognized the sales team through awards and incentives


AHCLs products are currently available in leading e-Commerce channels such as Amazon, Flipkart, Sasta Sundar, Big Basket, Netmeds, PharmEasy, Reliance Jio Mart, Medplus, Apollo, D-Mart, Walmart, Fresh-To-Home, Nykaa and Udaan. Sales from the e-Commerce channel have more than doubled in FY22 registering sales of 8.95 crore. Sales in this channel has grown month-on-month, indicating an encouraging offtake for AHCLs products. Also, the channels contribution to the overall business has increased from 1.3% to 2.1%.


The Companys export sales nearly touched 9 crore, which is the highest in the last 9 years despite the challenging conditions due to the COVID-19 pandemic. Africa continues to be the largest contributing region at 75% and it witnessed a growth of 26% in FY22 over the previous year. The contribution from other countries has more than doubled during FY22 to 9% from 4% in the previous year. Both head and body segments have an almost equal share in terms of total revenue contribution to exports (around 45% each). The body segment has increased from 36% to 45% during FY22.

* Source: IQVIA

Supply Chain Management (SCM)

In FY22, the Company witnessed COVID-19-related challenges in the entire FMCG supply chain from input material sourcing to delivery of finished goods at depots for about 6 months.

Amrutanjan Health Care Limited has responded by maintaining sufficient stocks of key raw materials for OTC products and ensuring availability with the suppliers to avoid stock-out situations. By doing so, the Company provided an uninterrupted supply of materials to meet the production needs in the plants. Although the Company witnessed an impact due to certain raw materials, it contained the overall raw material prices for menthol and other essential oil through long-term contracts.

OTC Segment Rs in Lakh
Financial Year FY22 FY21
Net Sales 37,221.24 31,426.35
Material Cost 16,304.10 12,959.71
43.80% 41.24%

Fluctuations in foreign exchange and increase in crude oil prices contributed to a steep increase in input materials such as plastics resins, poly films, etc., thus impacting the cost of packing materials compared to previous years.

Resin /Kg
Q4 FY22 Q4 FY21
PP 123.85 106.73
PE 109.23 97.74

Also, in the beverage division, the increase in polymer prices caused an increase in the price of packing materials. On the logistics front, despite a steep increase in diesel price, the Company contained the overall transportation cost via long-term contracts.

Value in Lakh
Financial Year FY22 ( ) FY21 ( )
OTC Segment
Net Sales 37,221.24 31,426.35
Freight and handling charges 1,468.39 739.32
Freight and handling charges as % of sales 3.95% 2.35%
F&B Division
Net Sales 3,190.46 1,708.32
Freight and handling charges 322.00 221.14
Freight and handling charges as % of sales 10.09% 12.94%


Amrutanjan Health Care Limited has three manufacturing units: Two for its OTC products and one for beverages. With a capacity of 1,600 MT in the OTC manufacturing units, the Company follows best practices as per the Drugs and Cosmetics Act and adheres to high levels of quality in the manufacturing process to ensure efficacious and defect-free products.

To avoid loss of production due to the recent pandemic, the Company ensured continuous supply of key products such that even if one OTC plant is down, consumer demand will be met from the supply of products from the second OTC plant.

The beverage plant can produce ready-to-serve fruit juice and fruit juices with electrolytes. The Company follows the best practices as per the Food Safety and Standards Authority of India (FSSAI). The Company is in the process of upgrading its plant with state-of-the-art machinery, which will be commissioned by September 2022. With this,

Amrutanjan Health Care Limited is doubling its production capacity to meet the upcoming demand.

For the Companys womens hygiene category, the Company sources its Comfy sanitary napkin from its strategic partner through a private label agreement. The plant has the capability to produce high-quality sanitary napkins. AHCLs management provides a safe working environment for all its employees by following all the COVID-19 safety protocols in its manufacturing units. All the plants are

ISO certified and are recently implemented with Systems, Applications & Products in Data Processing (SAP). We also have a safety committee in place and conduct safety audits regularly to ensure adherence to safety standards. Through operation training and quality circle meetings, employees are motivated and geared towards continuous improvement.

Quality, R&D and Safety in Amrutanjan Health Care Limited

In Amrutanjan Health Care Limited, quality is embedded in all its activities based on the principles of Total Quality Management. The purpose of the Companys quality assurance is to safeguard consumers well-being by ensuring that all operations associated with the manufacture of AHCLs range of products meet the regulatory standards and consumers expectations of safety, quality and performance as per design specifications.

Harmonized Quality Management systems are implemented across all operation sites to produce defect-free products and to achieve better productivity. The processes are based on Good Manufacturing Practices as per the Indian Drugs & Cosmetics Act, Quality Management system (ISO 9001 for OTC division), Food Safety Management Systems (ISO 22000 for F&B division) and Six Sigma methodology to ensure the quality and safety of products provided to the consumers. The products are designed for inbuilt quality and safety and all of the Companys processes are central to achieving it.

External service providers (vendor) qualification, audits and continuous monitoring of inputs are the focus areas to achieve the best quality output and consumer satisfaction. Research and Development (R&D) follows the Quality by Design (QbD) approach to formulate new products and to build quality in products. The Companys clinical studies on flagship products have proved to be effective and safe. The design of the containers and packaging process ensures AHCLs uniqueness and is pilfer-proof to avoid counterfeit products. The production and inspection excellence are designed to ensure safe and superior quality products as an output from the Companys manufacturing locations.

Under the COVID-19 circumstances, the Company facilitated a safe and conducive environment for employees and for products manufactured. AHCLs Quality Management System (QMS) Internal Audits are conducted at regular intervals to ensure that systems and processes are always effective and reviewed during

Management review meetings. The Companys Quality and Food safety management systems are annually audited by

TUV certification bodies for continued compliance of the above systems.

Information Technology

Amrutanjan Health Care Limiteds adoption of digital transformation is one of the key levers for the growth and modernization of its core business functions such as sales, finance, manufacturing and supply chain management.

SAP Implementation – AHCL completed the SAP S4 HANA implementation, which was commissioned in April

2022. The Company smoothly transitioned from its legacy Ramco ERP system to the new S4 HANA system with zero impact on business operations. SAP ERP implementation will address various system requirements for Finance & Controlling (FICO), Sales and Distribution (SD), Inventory Warehouse & Material Management (WM & MM), Production Planning & Plant and Maintenance (PP & PM) along with Quality Management & Transportation Management (QM & TM). Key business processes were reviewed and realigned with SAP standard business processes with careful considerations for meeting good business practices and processes (GxP). Ernst & Young partnered with AHCL for

SAP implementation and support. The successful Go-Live of the SAP S4 HANA System on an advanced platform of  Nutanix Hyper Convergent Infrastructure (HCI), supported by a disaster recovery setup promises bold steps toward AHCLs commitment to the Go Digital vision.

‘Amruta is the name of the Enterprise Business Intelligence & Analytics (BI) platform that leverages science and information technology for critical business decisions and planning. The infographic and charts offer a rich interface for managers to analyze the performance and trends to make informed decisions for impact growth and

The foundation of a data warehouse is a step forward profits. toward building a centralized data repository that can aid in deep analysis. The uniqueness of the platform is the single view architecture and approach for all types of data sources related to sales, marketing, manufacturing, procurement, quality, etc. which helps in building the large picture required for driving critical business decisions important for future growth of AHCL.

Sales Force Automation (SFA) Project – The SFA project enabled the sales team to go paperless in 2021. The SFA journey was further refreshed with a more user-friendly SFA application that serves 700+ sales personnel. The PAN India rollout of the SFA application is helping AHCL track salesman attendance/efficiency, all outlet level secondary sales and providing detailed insights to lines sold. The SFA system when connected with the SAP HRMS and Payroll systems will seamlessly track salesman incentives and payout and is planned for completion by FY23. The SFA program along with the integration with ‘Amruta, i.e., the BI platform will also help in further driving the growth plan of the business.

Amrutanjan E-Commerce web store is ready to be launched and is the first step towards Direct-to-Consumer(D2C) commerce business model. It also emphasises AHCLs commitment to building a digital presence and building the brand identity as a truly Indian and global brand. The exclusive AHCLs E-Commerce digital experience, with its product, subscribe feature, will give the freedom to purchase products regularly from wherever they are and get them delivered, eliminating the need for store pick-up. Comfy Mobile App is the new app on the block for Indian women. The mobile application helps to record and track their menstrual cycles along with other health conditions such as pain history and mood swings. It also offers the users the freedom to procure their sanitary napkins directly without going to a store and also buy any other comfy products using their mobiles. It will protect the privacy of the users and promises to deliver ‘The Power to be You to all Indian women.

Human Resource Management Systems (HRMS) are alwayscriticalforbuildinganemployee-friendlyorganization.

Timely accurate and efficient HR function helps in acquiring, retaining and nurturing talent contributing to the growth of AHCL. AHCLs core HRMS is supported by Darwinbox

& PayReview. The core HRMS modules of recruitment, onboarding, leaves, attendance, performance management and compensation management are fully operational. The Company plans to adopt SAP Payroll and HR modules in the future to ensure effective tracking of HR payroll and non-payroll expenses by FY23. The project is aimed toward employee satisfaction and HR reporting and control. The building of AHCLs Disaster Recovery Centre and implementation of the CCTV surveillance system were completed in FY22. The improved IT security and infrastructure is an assurance of AHCLs commitment toward information safety to all its consumers and investors.

Advanced Pain Management Centre (APMC)

APMC Hospital at Chennai in Tamil Nadu is committed to constant research on new and advanced pain management techniques and offers treatment of World-class standards.

So far more than 15,000 patients have been treated here for their chronic pain.

It is a NABH (National Accreditation Board for Hospitals & Healthcare providers) certified hospital under the Pre-Accreditation Entry-Level small healthcare program for non-surgical pain management services.

The hospital follows the NABH guidelines in all its operations to ensure patients safety. The entire procedures and processes followed in APMC are subjected to periodical audit by the in-house quality team.


The pain management segment of the OTC business continues to be a significant contributor to the overall OTC segment. The chart below indicates that head and body categories contribute to a majority of the Companys revenue (78%) and will continue to be the revenue contributor for future growth.

The share of revenues from the west and north zones remains low and will be given more attention by the business going forward. Towards this, specific plans have been put in place by category and brands.

The following are the threats that AHCL foresees:

1. Low penetration of AHCL products in P3 markets and strong competition creates challenges to increase the Companys market penetration

2. Increase in packaging material costs, which impacts the margins

3. Changes in regulatory compliances impacting business plans

Following will be the growth drivers for the Company in the coming year:

1. Build distinctiveness to existing brands by addressing consumer needs

2. Launch new products to cater to evolving consumer needs across existing and new categories through ‘The Amrutanjan Way process

3. Expansion of existing brands to weaker markets

4. Continue to improve distribution reach by setting specific milestones for every year and scale-up distribution with specific targets on the appointment of distributors, super stockists and sub-stockists

5. Build the D2C channel

6. Deploy specific growth plans to drive MT and e-Commerce

7. Continue to invest in brand building using mass media, digital, sampling and merchandising


(Rs in Lakh)
FY22 FY21
Net Sales 37,221.24 31,426.35
Segment Results 8,288.14 7,868.78
Net Sales 3,190.46 1,708.32
Segment Results (7.09) (350.16)
Total Capital Employed 26,512.38 21,556.47


The International Monetary Fund (IMF) projects India to remain the fastest growing major economy in the world for 2022.

The FMCG industry has undergone a remarkable transformation over the past two decades and is estimated to be the fourth largest sector in India at present. Supply and distribution faced major disruptions with multiple waves of the coronavirus pandemic. In India where 80% of sales still occur from local Kirana stores, it becomes vital to make sure that orders from such channels remain steady. FMCG companies are bringing together suppliers, inventory management, and distributor management within one ecosystem with the help of digital capabilities. A simple ordering app allows the sales force nowadays to get contactless orders safely and also offers visibility on the fulfillment of those orders right from order placement, logistics and supply. Increasing internet and smartphone penetration will further assist people in rural areas to easily access online shopping on different e-Commerce websites. The margin of profit the consumers is gradually tempting brands to set up stand-alone online stores and websites as well as create direct digital sales channels on various digital marketplaces.

A majority of FMCG brands have already capitalised on the trend by delivering products to the doorstep of the consumers. Brands with separate websites for customer sales have reported an 88% rise in year-on-year customer demand in FY21. D2C is turning out to be a preferred business model for FMCG companies and will find more relevance in the years to come.

Even though the FMCG sector has a promising outlook for the future, challenges such as high inflation remain a concern. Resilience needs to be the key factor in the manufacturing process, daily operations, retail and logistic channels, consumer insights and communication. It will help FMCG companies to withstand the test of time and create more value for consumers in the long run.

* Source: Times of India 7.5.22


A risk is a potential event or non-event, the occurrence or non-occurrence of which can adversely affect the objectives or strategy of the Company or result in opportunities being missed. Risk is measured in terms of likelihood of occurrence and potential impact if it materialises. Risks can be categorised as financial, operational, strategic, regulatory/statutory, reputational, geo-political and catastrophic/pandemic. C0VID-19 remains a potential risk with any resurgence from a new variant leading to hospitalisation and lockdowns could cause hardship for the population and disruption to the progress of the economic resurgence.

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 AHCLs product range.

The two greatest risks for the economy at this stage stem from inflationary pressures and supply side concerns. The super cycle of commodity prices that began in fiscal was further fuelled due to the war between Russia and Ukraine. It led to a significant spike in oil and commodity prices, thereby further exerting significant upward pressure on inflation. Supply chain challenges and increasing logistics costs due to the war are key areas of concern and will be monitored carefully.

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

Risk Management

Risk management is a structured, consistent, and continuous process across the organization for identifying, assessing, deciding on responses to, and reporting on opportunities and threats that may affect the achievement associated of its objectives.with selling Riskdirectly managementto does not aim at eliminating the risks, as that would simultaneously eliminate all chances of rewards or opportunities. Instead, constant efforts are made to analyse their potential impact, assess the changes to the risk environment and define actions to mitigate their adverse impact.

Amrutanjan Health Care Limited has implemented a risk management framework that ensures timely analysis, and assessment of risks and potential consequences, formulation of specific mitigation strategies and their seamless execution. The framework recognizes that risks are highly interconnected and interdependent. This evolved approach views risks within a coordinated and strategic framework integrated throughout the organization.

The Risk Management Committee, which is chaired by the Chairman & Managing Director and comprises of Chief

Financial Officer and Independent Directors, monitors organization-wide risk management activities and reports bi-annually to the Board of Directors.


The adequacy of internal control systems and the processes are audited quarterly in selected areas by qualified external auditors and are reported to Audit Committee.

The follow-up action on the observations is reported back with a timeline and status.

Statutory compliances are monitored through a fully automated in-house alert system and adherence is certified by the Head of Departments every quarter.

The Company has also established an in-house Internal Audit wing reporting to the Chairman and Managing Director (CMD) for conducting audits, internal checks on processes and providing suggestions for further improvements in the areas audited. The in-house team coordinates with the Internal Auditors to ensure the successful closure of their audit observations. The internal auditors have a free right to access all required information. The Audit Committee at the Board level is functioning independently with complete access to the Internal Auditors & Statutory Auditors.

The Audit Committee continues to monitor the effectiveness 2022 of internal control over the use of new technologies that impact the financial controls and reporting the risk.


The Companys Financial Performance concerning operational performance can be enumerated as below:

(Rs in Lakh)
FY22 FY21
Revenue from Operations 40,584.24 33,284.40
Other Income 1,538.25 1,132.01
Total Income 42,122.49 34,416.41
Total Expenditure 32,636.86 25,808.99
PBIDT 9,485.63 8,607.42
Depreciation 379.52 366.97
PBIT 9,106.11 8,240.45
Interest 48.45 50.00
Profit before tax 9,057.66 8,190.45
Current / Earlier year Income Tax 2,339.00 1,973.00
Deferred Tax (0.23) 98.41
Profit for the period 6,718.89 6,119.04
Other comprehensive Income (net of tax) (63.84) (2.80)
Total comprehensive income for the period 6,655.05 6,116.24
Key Financial Ratios (expresses as %)
PBIDT/ Revenue from Operations 23.37% 25.86%
PBIT/ Revenue from Operations 22.44% 24.76%
PBT/Total Income 21.50% 23.80%
PAT/Total Income 15.95% 17.78%

Key raw material Menthol crystal price was lower when compared to last year. The prices of packing materials were higher when compared to last year which has resulted in a reduction in the gross margin marginally.


Human Capital

Amrutanjan Health Care Limited is always focused on recruiting the best qualified candidates with great potential for the role and with culture fitness. In the post- COVID landscape, AHCL has been witnessing high attrition and it was a challenge to retain the best talent, more so amidst tough market conditions. However, with good HR practices, the Company was able to attract talent by adopting different recruitment strategies. Employees focused on achieving their goals and organizational objectives, enabling the organization to march forward in its growth philosophy. The top management strives to educate and encourage the workforce to introduce newer ideas that would further the success story of Amrutanjan Health Care Limited to continue with more vigour.

The Companys diverse, experienced and talented employees are its core strength in this highly competitive world.

Age Analysis

The following analysis demonstrates that the Company is dominated by employees in the age bracket of 30 – 39 years, who constitute 44% of the total 647 employees. Also, 68 employees above 50 years of age, constitute 11% of the total employees.

Performance Management System

Amrutanjan Health Care Limiteds Performance

Management System (PMS) has been automated with internal software. The transparency in the system enables employees to believe that AHCLs PMS is fair and transparent. It also allows management to identify high performers and low performers and distinguish them for rewards and recognition.

For the salary incrementation process, the Company

• Uses as a 5-point scale for performance evaluation

• Leverages a merit matrix-based rating i.e., arriving at the bandwidth for each grade and segregate quadrants 1, 2, 3 and 4 as Q1, Q2, Q3 and Q4

• Provides performance rating/quartile positioning based on the table below:

Performance Rating
Did not meet expectations 1
Often did not meet expectations 2
Met expectations 3
Often exceeded expectations 4
Far exceeded expectations 5

Variable Pay

AHCL follows a variable pay model that considers organizational, departmental and individual performance with appropriate weightage for each of the components depending on the cadre.

Learning and Development

AHCL identifies the training needs of the workforce by analysing output from PMS and through Training Need Analysis (TNA). With a diverse employee workforce, it is imperative for management to impart training on the Code of Conduct across the organization as a refresher course. The management also conducted mandatory Prevention of

Sexual Harassment (PoSH) awareness programs on both offline and online platforms.

The Company also executed customized learning programs for the sales team across India with external experts to enhance employee capabilities and skills. The training was imparted to all the frontline sales employees to improve their selling skills and working patterns. A separate division for ‘Learning & Development has been created during the year FY22 to provide special emphasis on the training needs of the business.

Occupational Health and Safety

AHCLs manufacturing plants demonstrate high-level safety performance aiming at zero incidents. AHCLs Environment Health and Safety (EHS) is closely monitored by the management team to ensure all precautions are taken for the safety and good health of employees.

Employee Stock Option Plan (ESOP)

AHCL has completed the 1st vesting of Employee Stock Option Plan 2020 (ESOP) to select employees. All the eligible beneficiaries have exercised their first vesting as per the plan in November 2021. The Compensation Committee has approved the eligibility for second and final vesting based on turnover achieved in FY22. Accordingly, the eligible employees will be entitled to exercise their balance options in October 2023. The table below explains the status of

ESOP Scheme 2020 as on 31.3.2022:

Total Options granted Options exercised during 1st Vesting in November 2021 Options lapsed after the 1st Vesting Options due for 2nd & final Vesting Options Lapsed
1,36,472 17,414 1,521 52,956 64,581


To strengthen the leadership team, AHCL also hired employees at senior-level positions during the year.

Also, the management is determined to build a future-fit talent group to elevate it to the next level of growth and sustainability while ensuring Person-Organisation fit.

Various leadership programs are conducted to enhance the quality of leadership within the Company. Development of leadership skills is done through various leadership interventions and coaching.

Employee Engagement

AHCL reach out to its employees with a PULSE survey to record their engagement with the Company and the report identifies areas of development for the HR and department for future improvements. The scores of the PULSE survey from FY16 to FY21 is graphically represented below:

Rewards and Recognition

The Company constantly creates new incentive programs for motivating its sales force to achieve their goals and reward them. Also, AHCL has a vibrant variable pay policy that measures the Companys performance, individual performance and the departments performance for arriving at individual employee eligibility.

The Company would be benefited from the good performance of the individual and vice versa. AHCL values the long service of employees and recognizes them to motivate other employees to stay and build a career within the Company.

On the awards and recognition front, the Companys CMD Shri S. Sambhu Prasad received on behalf of AHCL the ‘Best Corporate Entity award announced by All India Manufacturers Organization (AIMO) from the Honble Chief Minister of Tamil Nadu in a function held in Anna University at Chennai on April 23, 2022.

The Best Corporate Entity award was selected by the Jury of AIMO. Amrutanjan Health Care Limited has been awarded out of all the corporates in Tamil Nadu marking a proud moment for everyone in Amrutanjan family.

Relationship with Unions

Amrutanjan Health Care Limited maintains an excellent relationship with its affiliated unions and Amrutanjan Health Care Limited Employees union. It enjoys a cordial relationship with the union and its representatives on all IR issues so that no conflict arises between the union and the management. Also, AHCL signed a Long-term Settlement (LTS) with affiliated issues between Union and Management.

The Company is poised for growth in the coming years and the HR practices at Amrutanjan Health Care Limited are 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), AHCL has a robust mechanism to address the complaints reported. The Company has constituted a committee composed of internal and external members with extensive experience in the field. In FY22, AHCL had zero sexual harassment cases reported to the committee. During the year, several initiatives were taken to demonstrate the Companys zero-tolerance philosophy towards gender discrimination and sexual harassment.

As of March 31, 2022, your Company had a strength of 647 employees.


In compliance with the SEBI (Listing Obligations and Disclosure Requirements) (Amendment) 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 FY22 FY21
Debtors Turnover ratio 14.52 15.09
Inventory turnover ratio 18.68 16.17
Interest Coverage ratio NA NA
Current ratio 3.55 4.28
Debt-equity ratio NA NA
Operating profit margin (%) 22.44% 24.76%
Net profit margin (in %) 16.56% 18.38%
Return on networth 25.34% 28.39%

Formulae used for calculation of the ratios

Ratio Formula
Debtors Turnover ratio Revenue from operations/ Average of opening and closing trade receivables
Inventory turnover ratio Revenue from operations/ Average of opening and closing inventory
Current ratio Current assets/Current liabilities
Operating profit margin (%) Profit before interest and tax/ revenue from operations
Net profit margin (in %) Profit after tax/revenue from operations
Return on networth Profit after tax/Equity

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 the monsoon which in turn may increase the input costs, major political and economic changes in India and changes in applicable laws.