ozone pharmaceuticals ltd Management discussions

OZONE PHARMACEUTICALS LIMITED ANNUAL REPORT 2006-2007 MANAGEMENT DISCUSSION AND ANALYSIS i) Operating Environment and Outlook: The Indian Pharmaceutical market is the 15th largest individual market by sales and 4th by volume of product. The Indian Pharmaceutical Industry has cost competitiveness, strong manufacturing base, rich biodiversity and strong marketing and distribution network. It has recorded a growth above 18%. Nowadays, the Indian Pharmaceutical sector is projecting upward trend towards capturing the International market. Indian Pharmaceutical sector has significant export potential. Although it is unlikely to see significant growth before 2011, extensive company activities are expected as the leading Indian Pharmaceuticals companies strive towards international competitiveness. The following five years will see further merger and acquisition activity, including key overseas acquisitions. With the stringent Government regulations and increasing consumer awareness of quality Pharmaceuticals products, there exists tough competition to provide better quality products at most affordable prices. Further, there exists low expenditure on medical and healthcare in the country. ii) Internal Control Systems and their Adequacy: (a) Internal Audit and Inspection: A comprehensive system of Internal Audit is in place in Company to monitor internal control systems. The scope and coverage of the audit is reviewed from time to time to make it more focussed and effective. (b) Compliance: The Company has been ensuring timely submission of reports, data and information to various regulatory bodies as required from time to time. NEW PRODUCTS & FUTURE OUTLOOK: During the year under report, new products namely Axbex Drops, Cynocal - M Inj., Muvup Tab., Ozotron, Ozocal, in Pharma Division, Ozomet in Ozone Specialities & Ozotec in Generics Division were successfully launched. Total increase in revenue is Rs. 918.63 lacs during the financial years 2006-07 out of which Rs. 210.83 lacs (approximately 22.95%) has been contributed by introduction of new products. Both Generic Division & Ozone Specialities division which were launched in last year will bring some newer molecules and capture a sizeable market share of the pharmaceutical industry in the coming years. HUMAN RESOURCES: During the year, recruitments at various levels were undertaken by your company which brought changes and refinements in the operational policies and strategies. Your Company is also striving ahead to develop existing human resources and to induce greater satisfaction among them. The management is continuously directing its efforts towards imparting professional training to executives and staff at various levels with a view to upgrade their skills and managerial qualities so that they function effectively in a competitive and rapidly changing environment. The management further nominated their executives and staff for various seminars and training programs conducted in-house as well as by outside professional bodies. Your company focused its efforts towards the evaluation of human resources and identifying their strengths and training needs. Industrial relations in the organization continued to be cordial during the year.