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Bliss GVS Pharma Ltd Management Discussions

Jul 12, 2024|03:32:30 PM

Bliss GVS Pharma Ltd Share Price Management Discussions


Global economy

In FY23, the resurgence of COVID in China and the geopolitical conflicts continued to affect the global economy. Russias invasion of Ukraine causing supply chain disruptions worldwide, exacted a heavy toll on the economy. This resulted in an upward pressure in commodity prices increasing an already elevated inflation in advanced as well as emerging countries. These major headwinds contributed to the world facing a broad-based inflation and sharper-than-anticipated economic slowdown. The rising costs of living, inflated food and energy prices, tightening liquidity conditions and the lingering effects of the pandemic are all adversely impacting the global economic growth.

Supply chain constraints and market volatility have dented consumer sentiment, affected global economic prospects and lowered capital outflows. Several nations are dealing with persistent demand-supply imbalances and decadal-high inflation rates. According to World Bank, Global headline CPI inflation stood at 7.6% in CY 2022. To tame inflation and achieve price stability, central banks around the world have responded with synchronised rate hikes and tightened monetary policy.


Inflation rate of FY2023

Growth of the advanced economies will decline from 2.5% in CY 2022 to 0.5% in CY 2023, as forecasted by the World Bank in its Global Economic Prospects for January 2023, indicating a potential worldwide recession. The per-capita income of emerging and developing countries is anticipated to rise by an average of 2.8% during the next two years.


Despite support from a persistent rebound in the services sector, it is projected that both global trade and growth would decline sharply. From a rate of 4% in 2022, global trade growth is predicted to decrease to 1.6% in 2023, in part because of a decline in worldwide demand. Although there are more global supply chain restrictions than there were before the pandemic, these have been easing since mid-2022, as seen by lower transit costs and a return to normal inventory levels.

According to recent IMF forecasts, global growth will drop down further from an expected 3.4% in CY 2022 to 2.9% in CY 2023. CPI inflation is expected to stay high at 5.2% in CY 2023 before falling to a projected 3.2% in CY 2024. The challenges posed by the cost-of-living crisis are expected to ease out in the future on the back of a supportive fiscal policy. It is also anticipated that the monetary policy will maintain its current trajectory to restore price stability. Structural improvements can make the fight against inflation easier by bolstering productivity and removing supply chain constraints.

Indian economy

The Indian economy demonstrated resilient growth despite the geopolitical and high inflation-induced global economic headwinds. India ranked as the fifth-largest economy in the world in terms of US dollars and as one of the countries with the fastest economic growth in FY 2023.

The Indian economy is estimated to have recorded a growth of 7% in FY23, according to the first advance projections provided by the National Statistical Office (NSO) on January 6, 2023.


Indias growth in FY 2023

Despite the RBI hiking the repo rate to 6.5% and placing medium- to short-term liquidity pressure on the Indian economy, the backdrop of strong credit growth, stable financial markets and the governments ongoing emphasis on infrastructure and capital spending are favourable for pitching in substantial investments.


It is anticipated that a drop in international demand will adversely impact exports. Real GDP growth for 2023 to 2024 is projected to be 6.4%. Taking into account all of these factors and keeping the risks in check, Q1 growth will be 7.8%, Q2 growth will be 6.2%, Q3 growth will be 6.0% and Q4 growth will be 6.0%. The risks are evenly distributed, with the CPI inflation prediction for FY2023–2024 at 5.3%, the first quarter at 5%, the second at 5.4%, the third at 5.6% and the fourth quarter at 5.6%.1

Although the outlook for the global economy appears grim, the fact that the Government of India and RBI have been able to safeguard the Indian economy from an impending global recession is reflective of Indias strong economic fundamentals. India shows signs of recovery, and pent-up credit demand over the last two years offers hope for new growth opportunities in the domestic market.

Industry overview

Global pharmaceutical industry

Following a considerable recovery in 2021 as markets recovered from the pandemic, the global consumption of medicines topped out in 2022. The total sales volume is anticipated to increase at a CAGR of 1.6% in days of therapy, with Asia-Pacific, India, Latin America, Africa and the Middle East and China predicted to outpace the global volume growth by 2027. Through 2027, developed nations in Western Europe, North America, Japan and Eastern Europe are anticipated to witness growth at a slower pace of 0.1% to 0.4%, in part because of their existing higher per capita use. Disruptions caused by the ongoing conflict in Ukraine are also impeding Eastern Europes volume growth.

Global market growth is anticipated to return to pre-pandemic levels by 2024. From 2020 to 2027, it is likely that global spending on medications will total USD 497 billion more than it did prior to the pandemic. This is because of increased investment on COVID-19 vaccines and novel treatments as well as other therapeutic sectors.

Spending and growth by regions

The global pharmaceutical market is anticipated to expand at a 3-6% CAGR, with a total market value of roughly USD 1.9 trillion by 2027. Spending and volume growth will follow differing trajectories by area. With larger established markets expanding more slowly, markets in Eastern Europe, Asia and Latin America are growing in both volume and spending.

On a net price basis, the U.S. market is anticipated to expand between -1% and 2% CAGR over the following five years, down from 4% CAGR over the previous five years. Spending in Europe is anticipated to rise by USD 59 billion, with a focus on generics and biosimilars by 2027.

The pandemic has a wide range of consequences for the Asia-Pacific region, but stable growth is expected in the years ahead, beginning in 2021.

In the next five years, Japans spending on medicines is expected to increase by -1% to 2%, as strong brand growth is countered by a change in the yearly price reduction and continuous shifts to generics. 2

Trends and innovations 3

The world is undergoing a rapid technological transformation and it is crucial for every industry to incorporate the most recent improvements through systematic research and development. Adopting cutting-edge technology enhances the efficacy and profitability of the overall business in terms of its operations, cost-effectiveness, data collection and security.

The industry is exposed to many advanced research and development procedures. They are mentioned below:

Artificial intelligence- The process of sourcing and developing new drugs requires the identification of patients, particularly when performing clinical trials. Artificial intelligence streamlines the procedure for determining eligibility requirements and patient inclusion. It also makes group identification quicker and less expensive.

Big data and analytics- To analyse the massive amount of data created during the drug discovery and development process, the pharmaceutical industry needs high-performance technology.

Flexible production- Due to shifting market dynamics, the pharmaceutical sector is investigating novel manufacturing techniques, such as small batches for precision medicine. Single-use bioreactors are also becoming more popular since they amplify output and lower downtime. Apart from having low energy requirements, continuous manufacturing reduces waste and generates high productivity.

Precision medicine- Treating each patient as a unique individual is essential for ensuring proper treatment. Drug exposure models determine the ideal dosage for a specific medication based on variables including age, sex, comorbidities and other clinical criteria.

Blockchain technology- Blockchain technology is also being incorporated to combat the use of fake medications and poor-quality pharmaceuticals, which enter the pharmaceutical supply chain and cause thousands of deaths each year.

Addictive manufacturing- The development of advanced 3D printers that can produce tissues or cells is the subject of extensive research. Drug discovery, organ engineering and regenerative medicine all benefit greatly from 3D printing of human tissues. This makes it possible to create precise medication as well as medical formulations that are based on physiology or age.

Extended reality- Pharmaceutical research and manufacturing extensively use virtual reality and augmented reality.

Real-world data- Due to the emphasis on research, the pharmaceutical sector must ensure that the data it uses is trustworthy and relevant. The pharma sector is changing rapidly owing to the availability of real-world data made available by the Internet of Things (IoT), sensors and wearables.

Digital therapeutics- Software- and evidence-based therapy interventions are delivered through digital therapeutics to prevent, manage or treat behavioural, mental and physical health concerns.

Curative therapies- There is a paradigm shift happening in the field of medicine, from managing ailments to healing them entirely. By mandating the need for prolonged treatments, curative therapies like cell and gene therapies are altering the way in which chronic diseases or difficult-to-treat ailments are handled.

Indias pharmaceutical industry

Indias pharmaceutical sector is prominent in the global pharmaceutical market. India is the third-largest producer of pharmaceutical goods across the world by volume and the fourteenth-largest producer by value.

Indias pharma sector manufactures the largest number of vaccines in the world, with a market share of 60% and is the largest provider of generic drugs globally, accounting for 20% of the total supply by volume. The domestic pharmaceutical market in India is projected to reach USD 65 billion in 2024 and USD 130 billion by 2030.

Pharma exports have performed well, maintaining positive growth despite the slowdown in global trade and the decline in demand for COVID-related medicines. Exports of drugs and pharmaceuticals increased by 22% between April and October 2022 compared to the same pre-pandemic period in FY 2020. In September 2022, cumulative FDI in the pharmaceutical industry exceeded USD 20 billion. In addition, FDI inflows have surged four-fold over the course of five years, reaching USD 699 million, owing to attractive regulations and the sectors promising future outlook.

Government initiatives

• The Government has taken a number of actions to upgrade the pharmaceutical sectors infrastructure. The Strengthening the Pharmaceutical Industry (SPI) initiative, a five-year project with a USD 500 million budget (from FY2022 to FY2026), was unveiled on March 11, 2022. It first aims to strengthen the already-existing infrastructure facilities before providing financial support to pharma clusters to create shared facilities.

• By offering interest subsidies or capital subsidies on their capital loans, MSMEs production facilities are modified and upgraded to comply with local, national and global regulatory standards.

• The Government also encourages awareness and understanding of the pharmaceutical and medical device industries by conducting studies, developing databases and convening experts from the business world and academia, as well as policymakers, to share their expertise. 4

Trends and innovations 5

According to the EY FICCI analysis, Indias pharmaceutical market is expected to be worth USD 130 billion by the end of 2030. The pharmaceutical industry in India has a better chance of expanding in 2023 due to a strong focus on high-quality production, affordable medicines and prompt application of innovation and technology. However, higher adaptability and resilience are needed to mitigate certain concerns, such as low R&D spending, a lack of skilled personnel, intellectual property (IP) restrictions and rights and potential export contraction.

Proactive quality management system- To manage pharmaceutical supply chains more efficiently, the pharmaceutical industry has to implement better track and trace systems.

Digital technologies- Pharmaceutical industries are gradually investing in ramping up their manufacturing capabilities to match regulatory requirements and meet international standards as the countrys footprint expands.

Emerging market penetration- Emerging markets are becoming a prominent source of growth and income for the pharmaceutical industry. In order to remain competitive, pharmaceutical companies will concentrate more on developing their worldwide competencies while implementing local market-specific strategies.

African pharmaceutical industry

The growth drivers of the African pharmaceutical market are the continents rapid urbanisation, enhanced healthcare capacity and favourable business climate. The market is expected to be worth between USD 56 billion and USD 70 billion by 2030, according to estimates. As Western markets approach a recession, it is advantageous for global corporations and pharmaceutical firms seeking new growth opportunities. Patients will also have access to medications that were previously inaccessible in the continent.

Growth opportunities

Global malaria overview

Plasmodium parasites, which individuals contract through the bites of infected female Anopheles mosquitoes, are the primary sources of the acute fever known as malaria. The two most dangerous parasite species, P. falciparum and P. vivax, are among the five, that cause malaria in humans. The most common and fatal malaria parasite on the continent of Africa is P. falciparum. The most common malaria parasite outside of sub-Saharan Africa is P. vivax.

Almost half of the worlds population was susceptible to malaria in 2021. Infants, young children, pregnant women, persons with HIV/ AIDS and people with low immunity who travel to places where malaria transmission rates are high, such as migrant workers, mobile populations and travellers, are at a higher risk of acquiring malaria and developing severe symptoms.6

Globally, 247 million malaria cases were reported in CY 2021 among 84 malaria-endemic countries, marking an increase of 2 million cases compared to CY 2020. Over the last five years, the WHO African Region has reported the maximum number of cases. During the pandemic, crucial malaria services were disrupted, resulting in 63,000 deaths between 2019 and 2021. Thus, the mortality rate rose to around 15.1 deaths per 100,000 at-risk individuals in 2020 before dipping slightly to 14.8 in 2021.

In 2021, there were nine malaria-endemic nations in the WHO SouthEast Asia Region, which together accounted for 5.4 million cases or 2% of all malaria cases worldwide. About 79% of all malaria cases in 2021 were in India.


Increasing aged population

With the global rise in life expectancy, there is an escalation in the requirement for medications and therapies pertaining to age-related health ailments. Conditions such as arthritis, heart disease, diabetes, Alzheimers, and various forms of cancer are increasingly prevalent among the elderly population, leading to an amplified necessity for remedies targeting these specific ailments.

Personalised Medicine

The progressions in genomics and personalised medicine have facilitated the customisation of treatments to suit the individual patients distinct genetic composition. This paradigm shift is especially noteworthy in the realm of cancer treatment, where tailored approaches have gained prominence. Consequently, this development presents pharmaceutical companies with a notable prospect to create and market highly specialised treatments that often come at a higher cost.

Advancement in Technology

The enormous potential of AI, Machine Learning, and Big Data in enhancing the processes of drug discovery and development is widely recognised. These technologies offer the capability to conduct more efficient data analysis, predictive modelling, and patient monitoring, thereby resulting in cost savings and increased efficiencies within the pharmaceutical industry. Furthermore, the integration of the Internet of Things (IoT) has the potential to contribute to medication adherence and real-time monitoring of patients, further augmenting these advancements.


As the landscape of healthcare delivery undergoes transformation, telemedicine is assuming a larger role in the provision of patient care. Consequently, this shift opens up novel avenues for pharmaceutical companies, particularly in areas such as direct-to-patient marketing, medication adherence programs, and collaborations with telehealth providers. These emerging opportunities enable pharmaceutical companies to enhance their engagement with patients and capitalise on the potential benefits offered by telemedicine platforms.

Increasing Health Awareness

As the availability of information expands, individuals are progressively developing a heightened awareness of their health. This growing trend has the potential to elevate the demand for preventive medications and health supplements, thereby creating an additional opportunity for the pharmaceutical industry.


Regulatory Changes

Pharmaceutical companies are confronted with intricate regulatory frameworks that vary across different countries. These regulations undergo rapid changes, and a failure to adapt can result in severe repercussions. Regulatory authorities consistently revise guidelines to enhance drug safety, efficacy, and quality control, necessitating pharmaceutical companies to maintain constant vigilance and compliance.

Innovation and R&D

Research and development (R&D) hold paramount importance in the pharmaceutical sector; however, they are frequently accompanied by substantial expenses and time constraints. Additionally, the success rate of new drugs remains dismally low. Pharmaceutical companies are persistently engaged in a competitive race to develop ground-breaking drugs and therapies, including personalised medicine and advanced biologics. Nevertheless, the increasing innovation gap, denoting the expanding disparity between research investments and the approval of new substances, presents a significant challenge in this field.

Pricing and Accessibility

Pharmaceutical sector faces substantial pressure in relation to drug pricing, originating from governments, insurance entities, and consumers who seek cost-effective and affordable treatment options. The companies often encounter criticism for their high pricing structures, and they must navigate the delicate balance between addressing these concerns and fulfilling their imperative to invest in research and development (R&D) endeavors. Furthermore, ensuring equitable access to essential medications in low- and middle-income countries remains an enduring challenge that necessitates concerted efforts.

Ethical and Sustainability Concerns

The demand for transparency in clinical trials, ethical sourcing, and sustainable business practices is on the rise among consumers and stakeholders. Pharmaceutical companies are facing mounting expectations to adhere to Environmental, Social, and Governance (ESG) criteria, encompassing a range of responsible and sustainable business practices. Compliance with these criteria has become an integral aspect of meeting the evolving demands and expectations of various stakeholders in the industry.

Company overview

Bliss GVS Pharma Ltd. (BGPL), founded in 1984 with the objective of ensuring healthcare access worldwide, is one of the pharmaceutical industries fastest-growing businesses. The Company has a robust portfolio of more than 250 products and is a global leader in the dosage forms for suppositories and pessaries. It has a strong foothold in Sub-Saharan Africa and intends to grow there as well as in Europe, North America, Southeast Asia and Latin America. The business operates five cutting-edge production facilities that adhere to WHO-GMP, EU-GMP, ISO 14001 and OHSAS 45001 standards


Bliss GVS Ltd. started its journey


Product Portfolio


Global presence

The Company has grown substantially in terms of its production, marketing and R&D capacities throughout the years, reaching more than 64 nations. In Sub-Saharan Africa, the Company is a market leader in antimalarial, antifungal, dermatological and anti-inflammatory drugs.

Human resource management

The Company treasures its people as its most valuable asset and endeavours to create a productive and competitive work environment for them. It conducts a number of skill-development and engagement programmes to inspire its personnel. The Companys goal is to identify people with the right skill sets and provide them with the best training available so that they become experts in their respective fields.

With a comprehensive EHS policy in place, Bliss GVS Pharma Limited is committed to creating a safe working environment for all its people. To safeguard the workers health, industrial hygiene protocols are also followed.

During FY 2023, 179 people have been recruited making a total employee strength of 763. Female employees make up 19% of the total employee strength.

Research and development

The Company makes regular R&D investments to strengthen its capacity for innovation and to meet both present and future customer needs. Along with providing technical assistance to the manufacturing facilities, R&D also prioritises the development of distinct products and operational excellence. The R&D team members leverage their knowledge and expertise to significantly contribute to the Companys ability to innovate and its sustained global growth.

The Government of Indias Department of Scientific and Industrial Research (DSIR) has given the R&D Centre in Mumbai permission to adhere to good laboratory practices. A particle size analyser, gas chromatography, high-performance liquid chromatography, dissolution tester, stability chambers and lab-scale manufacturing equipment for various oral solid dosage forms, suppositories and pessaries are just a few of the cutting-edge technologies available at the R&D facility.

Particle size analyser Gas chromatography
Liquid chromatography Dissolution tester
Stability chamber Lab scale manufacturing equipments

Risk management

The Company has established procedures to inform the Board about the risk assessment and minimisation procedures in accordance with the provisions of the Companies Act, 2013 and good corporate governance. The Board shall be in charge of developing, implementing and overseeing the Companys risk management plans. The objective is to develop a proactive strategy for reporting, assessing and addressing business-related risks while ensuring stable and sustainable corporate growth. The Companys Audit Committee has frequently assessed the numerous risks connected to its operations. This review includes the identification, assessment, and mitigation of risks.

Financial statement

Standalone Consolidated ( H in Lakhs)
Particulars FY2023 FY2022 YOY% Particulars FY2023 FY2022 YOY%
Revenue 59,833.95 63,635.67 (5.97%) Revenue 75,158.75 74,745.41 0.55%
EBITDA 9,015.52 10,919.90 (17.44)% EBITDA 11,732.25 11,834.08 (0.86)%
PAT 8,547.86 9,266.40 (7.75)% PAT 7,673.48 2,312.65 231.80%

Details of key ratios and significant changes (i.e., changes of 25% or more as compared to the immediately previous fiscal year) in key financial ratios, along with detailed explanations, are given below:


For the year ended March 31, 2023

For the year ended March 31, 2022

% Variance

Reason for Variance for more than 25%

Current Ratio 4.76 4.10 16% -
Debt-Equity Ratio 0.08 0.10 -20% -

Interest Coverage Ratio




Decrease on account of decrease in profitabiity

Debt Service Coverage Ratio




Improvement in ratio due to profits impacting equity and reduction in debt

Return on Equity Ratio 0.10 0.12 -10% -
Inventory Turnover Ratio 11.26 10.08 12% -
Trade Receivables turnover Ratio 1.47 1.68 -11% -
Trade Payable turnover Ratio 3.73 4.61 -19% -
Net Working Capital turnover Ratio 1.21 1.40 -14% -
Operating Profit % 53% 54% -2% -
Net Profit % 13% 14% -5% -

Internal control systems and their adequacy

To ensure accurate recording of financial and operational information and compliance with various internal controls, statutory compliances and other regulatory compliances, the Company has a strong internal financial control system in place that is proportionate to the size, scale and complexity of its operations.

No significant or important observation regarding the effectiveness or appropriateness of such controls was made by the Companys internal auditors throughout the assessment period. The finance department closely monitors and assesses the effectiveness and sufficiency of the Companys internal control system, as well as its compliance with operational systems, accounting procedures and internal regulations at all of the Companys locations.

The effectiveness of the internal financial control system in the Company has been assessed and monitored by M/s. Kalyaniwalla & Mistry LLP, Chartered Accountants and Statutory Auditors of the Company. It complies with the Companys operating system, accounting practices and standards at all of its sites.

Corrective measures are performed in the relevant areas and controls are improved following the results of the Internal Audit functions report. The Audit Committee of the Board is given a presentation outlining any major audit observations, recommendations and recommended corrective action. In order to correctly manage the books of account and publish financial statements, the Company complies with all applicable Indian Accounting Standards.


Bliss GVS Pharma Limited is certain that its robust R&D and manufacturing infrastructure will allow it to witness sustained growth in the future. Commercialisation of Vevoor plant will enhance the operational efficiency. In the years ahead, the organisation intends to increase its market share in economies other than Africa. The Companys position in the market is further solidified by its relentless focus on innovation and strong R&D skills. Also, it consistently invests in upgrading its manufacturing and R&D capabilities to seize potential opportunities. In order to stay ahead of the curve, the Company is gearing up to work with several domestic and international market players.

Cautionary statement

There may be forward-looking statements in the MDA section about potential future developments. These statements involve known and unknown risks and uncertainties that might materially affect final results. In addition to the aforementioned macro-environmental changes, a worldwide pandemic could present unanticipated, unprecedented, unknown, and continuously changing risk(s), among others, to the Company and the setting in which it operates. The reports facts and figures were derived from the outcomes of these assumptions, which were based on available internal and external data.

The estimations on which these assumptions are based are therefore susceptible to change because the underlying variables are dynamic. Any forward-looking statement published here only speaks as of the date it was made and only reflects the Companys current intentions, beliefs or assumptions. The Company disclaims any need to update or modify any forward-looking statements, whether as a result of new data, unexpected developments or other factors.

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