Today's Top Gainer
Note:Top Gainer - Nifty 50 More
Overview of the Healthcare Sector
Economic health of a country is strongly dependent on the health and wellness of its citizens. In order to ensure adequate levels of health and wellness, an effective healthcare ecosystem is a prerequisite.
World Health Organization (WHO) has defined basic building blocks of a healthcare system as "delivery of effective, safe, quality interventions; adequately trained and distributed workforce; a health information system that analyses and disseminates reliable data; safe and efficacious medical technologies that are cost effective and accessible; a financing system that raises adequate funds to ensure coverage to the population from any financial catastrophe; and a good governance system to oversee administration of these building blocks"
The Global Healthcare spending is projected to increase at an annual rate of 5.4% in 2018-2022, a considerable rise from 2.9% in 2013-2017. This increase reflects the expansion of health care coverage in developing markets, the growing care needs of elderly populations, advances in treatments and health technologies, and rising health care labor costs. Per person healthcare spending is expected to continue to vary widely. (Source: Deloitte Report: 2019 Global Healthcare outlook)
With 17% of world population and a GDP growth rate of 7.2%, India is amongst the fastest growing economies of the world. For it to continue on this growth path, access to good quality healthcare services for all its citizens is critical.
The Indian healthcare sector is growing at a brisk pace due to its strengthening coverage, services and increasing expenditure by public as well private players. Indian healthcare delivery system is categorized into two major components - public and private. The Government, i.e. public healthcare system comprises limited secondary and tertiary care institutions in key cities and focuses on providing basic healthcare facilities in the form of primary healthcare centers (PHCs) in rural areas. The private sector provides majority of secondary, tertiary and quaternary care institutions with a major concentration in metros, tier I and tier II cities.
Indias competitive advantage lies in its large pool of well- trained medical professionals. India is also cost competitive compared to its peers in Asia and Western countries. Healthcare Infrastructure
Health infrastructure is an important indicator for understanding the health care policy and welfare mechanism in a country. It signifies the investment priority with regards to the creation of health care facilities. Infrastructure has been described as the basic support for the delivery of public health activities. Medical education infrastructure in the country has shown rapid growth during the last 25 years. The country has 476 medical colleges, 313 Colleges for BDS courses and 249 colleges which conduct MDS courses in FY 18. (Source: National Health Profile 2018)
There has been a total admissions of 52,646 in 476 Medical Colleges & 27060 in BDS and 6233 in MDS during 2017-18. (Source: National Health Profile 2018)
There are 3215 Institutions for General Nurse Midwives with admission capacity of 129,926 and 777 colleges for Pharmacy (Diploma) with an intake capacity of 46,795 as on 31st October, 2017. (Source: National Health Profile 2018)
There are 23,582 government hospitals having 710,761 beds in the country. 19,810 hospitals are in rural area with 279,588 beds and 3,772 hospitals are in urban area with 431,173 beds. 70% of population of India lives in rural area and to cater their need there are 156,231 Sub Centres, 25,650 Primary Health Centres and 5,624 Community Health Centres in India as on 31st March 2017. (Source: National Health Profile 2018)
It is estimated that India will require 2.07 million more doctors by 2030 in order to achieve a doctor-to-population ration of 1:1000
The Governments recent proposal to launch pathology labs at more than 5,000 Jan Aushadhi outlets across India, will be a significant development to make healthcare cheaper for common Indian, besides encouraging domestic manufacturing. Government also proposed to:
Establishing 1.5 lakh health and wellness centres under Ayushman Bharat,
Start setting up 75 new Medical Institutes,
Reforms in Paramedical education sector and increase the doctor- population ratio to 1:1400, looks promising and will have far reaching positive impact on the MedTech industry.
Healthcare Market Size
Healthcare industry in India comprises of hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical tourism, health insurance and medical equipment & pharma. The industry is growing at a tremendous pace owing to its strengthening coverage, services and increasing expenditure by public as well private players.
The hospital industry in India, accounting for 80% of the total healthcare market, is witnessing a huge investor demand from both global as well as domestic investors. The hospital industry is expected to reach $ 132 bn by 2023 from $ 61.8 bn in 2017; growing at a CAGR of 16-17%. (Source: Investindia.gov.in/sector/ healthcare)
The diagnostics industry in India is currently valued at $ 4 bn. The share of organized sector is almost 25% in this segment (15% in labs and 10% in radiology). (Source: Investindia.gov.in /sector/healthcare)
The primary care industry is currently valued at $ 13 bn. The share of organized sector is practically negligible in this case. (Source: Investindia.gov.in / sector/healthcare)
In FY 17, Indian healthcare sector stood as the fourth largest employer as the sector employed more than 3 lacs people.
As per available information, more than 1 lakhs jobs are expected to be created from Ayushman Bharat, the National Health Protection Scheme.
Indian Medical Device Sector -an overview and growth opportunities
The Global Medical Device industry is poised for steady growth, with global annual sales forecast to rise by over 5% a year and reach nearly US$800 billion by 2030. (Source: KPMG report: Medical Devices 2030)
These projections reflect increasing demand for innovative new devices and services, as lifestyle diseases become more prevalent, and economic development unlocks the huge potential in emerging markets - particularly China and India.
Despite these apparently attractive prospects, a shadow hangs over the sector in the form of a relentless downward pressure on pricing. Governments around the world are desperately trying to reduce the cost of healthcare - especially in the most expensive part of the system: hospitals. They want to pay less for medical services and see proof of greater value in terms of better patient outcomes.
The Indian Medical Devices market currently valued approx. at USD 7.5 billion and growing at 12-15 % CAGR vis-a-vis a CAGR of 5% for the Global medical devices industry.
India among top 20 global medical devices market and 4th largest medical devices market in Asia after Japan, China and South Korea.The medical device market continues to be dominated by imported products, which comprise of around 70% of total sales.
Growth Drivers for Indian Medical Device Sector.
India ranks 145th among 195 countries in terms of quality and accessibility of healthcare. There is immense scope for enhancing healthcare services penetration in India, thus presenting ample opportunity for development of the healthcare industry ((Source: Indian Brand Equity Foundation Report)
The governments expenditure on the health sector has grown to 1.4% of GDP in FY18 from 1.2% of GDP in FY14. As per the recent reports the new government is planning to increase public health spending to 2.5% of the countrys GDP by 2025.
The demand for medical devices is predicted to rise so as to meet the demands of a growing population. According to the United Nations, Indias population is set to touch 1.45 billion by 2028, making it the worlds most populous nation. With socio-economic changes such as rapid urbanisation, demographic and lifestyle changes, the society is more prone to lifestyle-related ailments, including diabetes, obesity, stroke and cancer.
Also, out of the total population, the share of ageing population in 2011 was approx. 5.3% and is expected to increase to 6% of the total population by 2021. With an increasingly ageing population, there will be a greater demand for better health care facilities and medical devices.
Also, with a large number of private players making their foray into healthcare, there is a growth in the number of hospitals, diagnostic centers and specialized facilities. Most of these hospitals have their quality and accreditation at par with international standards. Many hospitals have already received the National Accreditation Board for Hospitals & Healthcare Providers (NABH) accreditation in the last decade.
Factors responsible for demandgrowth:
Rising incomes and affordability
Large population base and emerging middle class
Growing elderly population, changing disease patterns
Better awareness of wellness, preventive care and diagnosis
Policy Support by government
NRHM allocations increased substantially for healthcare facilities
National Health Insurance Mission to cover majority of the population
The Indian medical device market offers a great opportunity not only of its size, but also because of encouraging policies and regulations that the Government has introduced to give a fillip to the medical device industry.
Ayushman Bharat (AB-PMJAY): The Game Changer AB-PMJAY, launched in 23rd September 2018, is the future of Indias healthcare ecosystem. The scheme which is aimed to serve the population equal to the total population of the entire European Union, and almost equal to the population of Canada, Mexico and the US taken together.
The largest public funded scheme in the world is undoubtedly a gigantic scheme with a very big vision and we are all hopeful of many positive outcomes.
The major highlights of the scheme are;
> Over 10 Cr Family will be provided health assurance worth five lakh rupees each, every year, targeting more than 50 crore beneficiaries.
> More than 1,300 ailments are covered under it, including heart diseases, kidney and liver disorders and diabetes. Covers secondary and tertiary care hospitalization.
> 2,500 new hospitals expected to come up in next 2/3 years in tier-N and tier-IM cities and would also generate employment opportunities and greater demand to Medical devices.
> Already 13,000 hospitals have become a part of this scheme.
> Will transform around 1,50,000 Sub centers and primary health centers into Health and Wellness Centers (HWC).
The "Ayushman Bharat" is a path-breaking initiative of the Government of India, and is expected to impact positively across all levels of care. It has opened up multiple avenues for growth of Medical Devices Industry.
Increased demand for medical devices
Increased collaboration opportunities with the government specially in the sectors of primary care and diagnostics
Increased collaboration opportunities with private healthcare providers
Boost medical devices manufacturing in India Medical Devices Rules:
Ministry of Health and Family Welfare (MoHEW) implemented Medical Devices Rules in January 2018. These rules aim at easing the business for medical technology sector:
Exact detailed definition of the medical devices
Risk-based classification as the rules have four classes defined, classified from Class A (lowest risk class) to Class D (highest risk class)
Single window clearance system brought in through a single online portal
Timelines defined for each step including application processing, audits etc.
Quality standards for the products have been defined and companies will have to comply to them
Separate provisions for clinical trials of investigational devices defined
No periodic renewal of licenses required
The new Medical Devices Rules signifies a shift and acknowledgement of need to manage medical devise as a distinct industry from pharmaceuticals. Smooth roll-out of Medical Devices Rules was facilitated by government- industry collaboration. It is expected that all Medical Devices will get regulated under new rules which will bring in standardization of products to improve quality & patient safety.
National Medical Device Promotion Council:
Government announced setting up of the National Medical Device Promotion Council under Department for Industry Policy & Promotion (DIPP) in December 2018. The Prime objectives of the National Medical Devices Promotion Council are:
Act as a facilitating, promotional & developmental body for the Indian Medical Devices Industry (MDI).
Render technical assistance to the agencies and departments concerned to simplify the approval processes for Medical Devices Industry promotion and development.
Enable entry of emerging interventions and support certifications for manufacturers to reach levels of global trade norms and lead India to an export driven market in the sector.
Facilitate domestic manufacturers to rise to international level of understanding of regulatory and non- regulatory needs of the industry.
Drive a robust and dynamic Preferential Market Access (PMA) policy by identifying the strengths of the Indian manufacturers and discouraging unfair trade practices in imports
Ensure pro-active monitoring of public procurement notices across India to ensure compliance with PMA guidelines of Department of Industry Policy & Promotion (DIPP) and Department of Pharmaceuticals (DoP).
Make recommendations to government based on industry feedback and global practices on policy and process interventions to strengthen the medical technology sector.
The setting-up of the Council will spur domestic manufacturing in this sector as Indian companies and startups have stated moving towards creating innovative products.
Indian healthcare sector is much diversified and is full of opportunities in every segment which includes providers, payers and medical technology companies. With the increase in the competition, businesses are looking to explore for the latest dynamics and trends which will have positive impact on their business.
India offers huge opportunities for the medical devices industry. The country has also become one of the leading destinations for high-end diagnostic services with tremendous capital investment for advanced diagnostic facilities, thus catering to a greater proportion of population. Besides, Indian medical service consumers have become more conscious towards their healthcare upkeep.
The Indian medical device industry continues its upward march of growth and is strongly supported by Indias robust legal framework. There are certain challenges to do business of medical device in India, but they can be easily overcome with government support. The MedTech industry is redesigning its business model in line with the changing landscape -India-specific projects and Mobile solutions to reach tier 2 and 3 cities. Government and industry collaboration in different areas like Health Technology Assessment, Innovative digital healthcare business models will help governments aim of universal health coverage and further boost the MedTech industry in the country.
Overview of the Company
The Company is engaged in the development, manufacturing and marketing of quality Disposable Medical Devices. We manufacture and supply in India and Internationally, a diverse portfolio of disposable medical devices in the product verticals of Infusion therapy, blood management, gastroenterology, surgery and wound drainage, anesthesia and urology. The Company has a well-diversified and de- risked business model in India and rest of World, comprising a wide range of products, in over 105 countries.
The competitive edge Company has built over the years, in terms of customised products for every market where it operates, continues to provide it the impetus for growth.
The Company has got "Medical Device Company of the year 2018" award from Department of Pharmaceuticals, Government of India during the 4th International Conference on Pharmaceutical & Medical Device sector.
The Company received "Export Excellence Award" by Faridabad Industries Association, Haryana.
The Company also received "dare to dream" award by Zee Business in the category of emerging Company of the year and Clarivate Analytics India Innovation Awards 2018 under the category "Leading with Disruptive Innovation".
The Company received the "Top Exporter Award" (1st Prize) for highest export of Plastic Medical Disposables for Continuous last 6 years from "The Plastics Export Promotion Council (sponsored by Department of Commerce, Government of India)/
Business Operations and Manufacturing Facilities
The Company currently operates five Manufacturing units in India, three of which are located at Faridabad (Haryana), one at Jaipur (Rajasthan) and one at Haridwar (Uttarakhand). Our manufacturing units located at Faridabad, Haryana commenced commercial operations in Fiscal 1997, Fiscal 2004 and Fiscal 2018, and are spread over a total area of 3,720 square meters, 7,920 square meters and 7,875 square meters respectively. Our manufacturing unit located at Haridwar, Uttarakhand commenced commercial operations in Fiscal 2008 and is spread over a total area of 3,825 square meters. Our manufacturing facility in Jaipur, Rajasthan commenced commercial operations in Fiscal 2015 and is spread over a total area of 31,211.74 square meters.
The Company has over 400,000 sq. feet of manufacturing area in use which includes over 100,000 sq. feet of Grade C 10,000 to Grade D 100,000 (ISO Class 7 & 8) Clean Room Area.
The Company also having its manufacturing facilities in China, Egypt (JV) and Italy.
The Company operates in manufacturing facility situated at Laiyang-Qingdao, China, through Poly Medicure (Laiyang) Co. Ltd., our wholly owned subsidiary. This facility commenced commercial operations in fiscal 2010.
The Company also holds 23% equity interest in Ultra for Medical Products, Egypt, which operates a manufacturing facility in Assuit, Egypt for disposable medical devices. This facility commenced commercial operations in fiscal 2004.
The Company has also acquired Plan1health s.r.l., an Italy based Manufacturing Company. By this acquisition the Company will be able to offer a complete assortment of high end Vascular Access Devices and accessories.
Manufacturing Process & Technology
The Company has been continuously upgrading our manufacturing process and technology. We are using most advanced production machines and cutting edge technology to manufacture medical devices under clean room conditions. The use of these advance systems has resulted in consistency in quality.
The Company has invested in Automating the manufacturing processes and production lines to the core by deploying artificial intelligence and robotics. We will also promote their adoption across different manufacturing lines.
In the recent past, these activities have intensified with increased focus on development of new products and processes, which have resulted in waste reduction and higher consistency.
Your Company has multiple products in following categories:-
VASCULAR ACCESS / INFUSION THERAPY
CENTRAL VENOUS ACCESS
BLOOD TRANSFUSION & BLOOD COLLECTION SYSTEMS
SURGERY AND WOUND DRAINAGE
This year Company is introducing new products in VASCULAR ACCESS / INFUSION THERAPY.
Research and Development
The Company operates a research and development center at Faridabad, Haryana, which is approved by DSIR. Our Research and Developments are primary focused on developing new products within existing as well as new critical care product verticals and further improving existing processes and productivity. Today, POLYMED is considered a technologically superior brand, which is a result of its advanced Research and Development facility and team. To combat competition and excel in the segment of Medical Devices, the Companys Research and Development department has worked tirelessly to develop new and innovative products which can meet the demands of end-user.
As a part of development process, R&D interfaces with marketing team to conduct research and to understand the requirements of the customers and create products with new features.
Sales and marketing network
The Company has a country wide sales and distribution network in India which enables us to a wide market base. As of March, 31st 2019, our distribution network included over 25 super distributors, over 10 authorised agents and over 1300 dealers. We have over 250 persons in Sales, Marketing and Product Management Team. Globally we have dedicated Sales Network and Tie-up with key distributors in over 105 countries including in Europe, south-east Asia, the Middle
East, Americas and Africa, distributing through a network of approximately over 200 distributors. Approximately 70% of our total revenues come from exports.
Financial Performance (Consolidated)
The Companys total revenues comprise revenue from operations and other income.
Total revenue increased from 53,605.37 lacs in fiscal 2018 to 62,909.24 lacs in fiscal 2019 i.e. 17.36 % and this is primarily due to growth in our revenue from operations, for reasons described below.
Revenue from Operations
The Companys net revenue from operations increased from 52,167.79 lacs in fiscal 2018 to 61,082.53 lacs in fiscal 2019, which was primarily due to increased sales of our products.
Sale of products increased from 50,861.16 lacs in fiscal 2018 to 59,100.89 lacs in fiscal 2019 primarily on account of increase in sales of our products, including from the continued sale of our medical devices Infusion therapy products and blood management products.
Other operating revenues increased from 1306.63 lacs in fiscal 2018 to 1981.64 lacs in fiscal 2019.
Other income increased from 1,437.58 lacs in fiscal 2018 to 1,826.71 lacs in fiscal 2019 primarily on account of increase in interest income and gains on net foreign exchange fluctuations.
The Companys total expenses increased from 44,054.25 lacs in fiscal 2018 to 53,041.67 lacs in fiscal 2019.
Cost of raw materials including packing materials consumed and purchase of stock-in-trade
Cost of raw materials including packing materials consumed (which includes plastic granules, PVC sheets, boxes, medical paper and film) and purchase of stock-in-trade increased from 16,505.01 lacs in fiscal 2018 to 20,866.39 lacs in fiscal 2019 due to increased production.
Employee Benefit Expenses
Employee benefit expenses increased from 9,912.59 lacs in fiscal 2018 to 11,660.71 lacs in fiscal 2019, primarily due to an increase in the salaries, wages and bonus, and on account of increase in the number of employees from 1,926 as on March 31, 2018 to 1952 as on March 31, 2019.
Research and development expenses
Research and development expenses increased from 1004.78 lacs in fiscal 2018 to 1014.90 lacs in fiscal 2019, primarily on account of increase in employee benefits expenses for research and development. As a percentage of our total revenue, research and development expenses decreased from 1.87% in fiscal 2018 to 1.61 % in fiscal 2019.
Other expenses increased from 12,584.89 lacs in fiscal 2018 to 14,595.39 lacs in fiscal 2019, primarily on account of increase in job work charges, power and fuel expenses and other manufacturing expenses.
Earnings before interest, tax and depreciation
The Companys EBITD increased from 13,596.03 lacs in fiscal 2018 to 14,911.73 lacs in fiscal 2019. This is 23.70 % of total revenue as against 25.36 % in previous year.
Depreciation and amortization expenses
The Companys depreciation expenses increased from 2,924.40 lacs in fiscal 2018 to 3,729.22 lacs in fiscal 2019 due to more capitalization in existing plant as well as new plant.
The Companys finance costs increased from 996.48 lacs in fiscal 2018, to 1175.06 lacs in fiscal 2019, primarily on account of increase in borrowings.
Profit Before Tax
The Companys profit before tax increased from 9,675.15 lacs in fiscal 2018 to 10,007.45 lacs in fiscal 2018.
Tax expenses increased from 2615.76 lacs in fiscal 2018 (which consist of current tax of 2,536.55 lacs and deferred tax of 79.21 lacs) to 3467.55 lacs in fiscal 2019 (which consist of current tax of 3,085.58 lacs, deferred tax of 293.27 lacs and Tax adjustment for earlier years 88.70 lacs) primarily due to an increase in the profit for fiscal 2019.
Share of profit from associates
Share of profit from our associate Ultra for Medical Products Company (ULTRAMED) Egypt, increased from 124.03 lacs in fiscal 2018 to 139.88 lacs in fiscal 2019.
Profit for the Year
For the various reasons discussed above, profit for the year decreased from 7,059.39 lacs in fiscal 2018 to 6,539.90 lacs in fiscal 2019. This is 10.62% of total revenue as against 13.17% in previous year.
Risk management is an integral part of business practices of the Company. The framework of risk management concentrates on formalising a system to deal with the most relevant risks, building on existing management practices, knowledge and structures. The Company has developed and implemented a comprehensive risk management system to ensure that risks to the continued existence of the Company as a going concern and to its growth are identified and remedied on a timely basis. While defining and developing the formalised risk management system, leading standards and practices have been considered.
The risk management system is relevant to business reality, pragmatic and simple and involves the following:- Focused on identifying relevant risks, creating, updating clear definitions to ensure undisputed understanding along with details of the underlying root causes and contributing factors. There are many kinds of risks associated with the Company. Economic risk, Raw material risk, Human resource risk, Supply chain risk, Competition risk, Compliance risk are associated with our Company. Focused on determining risk priority and risk ownership for critical risks, this involves assessment of the various impacts taking into consideration risk appetite and existing mitigation controls. Addressing critical risks to restrict their impact(s) to an acceptable level, this involves a clear definition of actions, responsibilities and milestones as a diverse portfolio offerings helps your Company build a natural risk hedging capability against any undesired economic developments in the country or in a particular region of the market. Long-term relationships with most suppliers enable your Company to have an uninterrupted supply of raw material and inputs, and at competitive rates. Additionally, your Company has also implemented a robust network that closely monitors fluctuations in prices of raw materials and any market changes. It generates requisite data that helps your Company plan the procurement of its raw material effectively, and this is further strengthened by strong vendor management skills. Owing to its high-quality standards, popular products and a diversified portfolio across categories, your Company enjoys strong brand equity among the customers. Your Company, at all times, strictly ensures adherence to all the statutory rules and regulations, with timely corrections made, as and when required. The Company focused on providing to the Board and the Audit Committee periodic information on risk profile evolution and mitigation plans.
Internal Control System & Adequacy
The internal control systems of the Company are commensurate with the nature of its business and size and complexity of its operations. These are routinely tested, certified and upgraded wherever required by the Statutory as well as the Internal Auditors covering all key areas of business. Audit observations and follow up actions and recommendations there on are reported to the higher Management and Audit Committee for their review.
Your company maintains appropriate systems of internal control, including monitoring procedures, to ensure that all assets are safeguarded against loss from unauthorized use or disposition. Your companys policies, guidelines and procedures provide for adequate checks and balances and are meant to ensure that all transactions are authorized, recorded and reported correctly.
The CFO, internal auditors together with external auditor verifies that all assets are protected against loss and that the financial and operational information is accurate and complete in all respects. The Audit Committee reviews audit reports and financial statements for the quarter and year based on internal risk assessment. Audits are conducted on an ongoing basis and significant deviations, if any, are brought to the notice of the audit committee following which corrective action is taken for implementation.
The Company is working with reputed firms specialised in internal audit function. The combined efforts are helping the Company to introduce best practices required to manage its business.
Related party transactions
All Related Party Transactions during the financial year 201819 were on arms length basis and were in compliance with the applicable provisions of the Companies Act, 2013 and the Listing Regulations. All such transactions are placed before the Audit Committee for review/approval. The necessary omnibus approval has been obtained from Audit Committee wherever required. There were no material Related Party Contract / Arrangement / Transactions made, other than disclosed in AOC-2 of Directors Report by the Company during the year that would have required Shareholders approval under provisions of Section 188 of the Companies Act, 2013 or of the Listing Regulations. There were no material related party transactions during the year 2018-19 that have conflict with the interest of the Company as provided under Section 188 of the Companies Act, 2013 and Regulation 23 of the Listing Regulations. All related party transactions have been approved by the Audit Committee and/or by the Board. The policy on Related Party Transactions as approved by the Audit Committee and the Board is available on Companys website i.e. www.polymedicure.com
Details of Related Party Transactions entered into by the Company during the financial year 2018-19 are provided in Note 38 to the Financial Statements.
Environment Health and Safety
The Company is continuously working on innovative technologies to design effective Waste Management Systems. The primary focus of the Company has been clean environment solutions. The Company plans to reduce the water consumption in its manufacturing process year on year and adopt techniques to conserve and recycle water.
The Company is continuously adopting new techniques to reduce the effluent generation in the Process. Environmental requirements are incorporated into the plant design right from the preliminary stage of a process. Air Scrubbers, Dust Filters, Fire Protection Systems and Effluent Treatment Plants are in place & well maintained.
During the year, the Company has conducted various training programmes in all units regarding use and importance of Safety Awareness and behavior related to safety. We regularly conducts training programme on Kaizen and Behavior Based Safety in Organization (Industrial Safety Awareness). Training programme on First Aid, Fire Fighting and Rescue Operations in any type of emergency is conducted for the employees of the Company regularly. Fire Hydrant Systems, all types of Fire Extinguishers, Smoke and Heat Detectors are installed to control the fire hazard in all our units. The Company is making continuous efforts to create safer working conditions for the workers.
Opportunity and Future Prospects
There is one major shift taking place - the sector is witnessing accelerating technological transformation. There are both challenges and opportunities that emerge with the changing scenario. Polymed is present in over 100 countries globally and operates in very close proximity to all its customers. The Company constantly engages with key stakeholders to understand ever changing demands in the Industry and implement new ideas across all products.
Polymed is working on bringing innovative technology to its customers that takes care of their present and future requirements. The need of the hour is innovative solutions for medical devices. The Company works towards its vision of a world in which highest quality of healthcare is made available to all. This requires it to further strengthen its already wide product portfolio. With the acquisition of Plan1 health s.r.l., an Italy based manufacturing Company, gave access to new technology in Oncology and Vascular Access devices and opens up more opportunities with the worldwide customer base. Plan1 Health products adhere to highest quality standards in Europe and are synergetic with Companys product portfolio.
The Company believes that People are the foundation on which the businesses are built and it remains a key focus area. It has continued with its drive to institutionalise and upgrade HR processes.
The Company believes in shared values and goals. All team members collaborate, share knowledge, communicate and support one another. They believe that any result positive or not is an outcome of their collaborative efforts. This collaborative team spirit has resulted in Continuous Improvement and made us stay at the top.
The Companys Human Resources Function is committed to a forward looking approach with its eyes on the future. It starts with attracting the right kind of talent, its seamless integration with the organisational objective and creating an enabling culture that sets nothing less than the continued pursuit of higher standards of performance and goals. With this objective, HR Function creates a roadmap for the growth and development of each and every team member.
By virtue of Companys progressive people-centric HR policies, practices and compelling employee experiences, the Companys has been performing consistently. Individuals with ability to excel and contribute exceptionally and consistently deserves special recognition.
We believe that our people are our competitive edge and we empower them with initiatives to develop these edges on professional or personal advancement. Polymedians believe in new challenges and new opportunities, new horizons every day, to excel, outperform and outshine.
This roadmap encompasses more than just skill training interventions. It covers implementing best in class HR Practices such as functional and general management; competency mapping and development; mentoring by seniors, cross functional knowledge, framework of policies and practices, roles and responsibilities, etc. The idea is that our teams always stay relevant and updated for making all the difference.
It is not only the employees who are important to Company. For us, the extended Polymed Family that includes the family members of our employees is also critical to our success. It stems from the belief that a happy employee at work is the one who is happy back home. And hence, we aim to raise the happiness quotient of the families of our employees as well.
The total Strength of employees of the Company was 1952 as on 31st March, 2019.
The Company maintains insurance policies with reputed independent insurers in relation to our business and operations and our assets such as our buildings, equipment and inventories. Our principal types of insurance coverage include directors and officers insurance, product liability insurance to cover risks arising from injuries or damages caused by our products, standard fire and special perils insurance for our plants and machineries and buildings at our manufacturing facilities to cover risks such as fire and other ancillary perils and marine cargo policy to cover various risks during the transit of goods anywhere in the country or overseas. We also maintain group personal accident insurance and group mediclaim policy for our employees. Our operations are subject to hazards inherent to our industry and other force majeure events. This includes hazards that may cause injury and loss of life, damage and destruction of property, equipment and environmental damage. Not all risks associated with our business and operations may be insurable, on commercially reasonable terms, or at all. Although we believe that the amount of insurance currently maintained by us represents an appropriate level of coverage required to insure our business and operations, and is in accordance with industry standards in India, such insurance may not provide adequate coverage in certain circumstances and is subject to certain deductibles, exclusions and limits on coverage.
The Company is providing quality medical devices in global markets at an affordable price. At Polymed, a highly experienced pool of R&D Engineers are creating value added features in product at much lower costs for the Company, for the global as well as domestic market. Over the years, this continuous initiative has resulted in a steady flow of new products, a well-balanced pipeline of assets, thus strengthening the Companys competitiveness globally. The Company has complete integrated R&D, technology and engineering capabilities that enables it to design and develop new technologies on a sustainable basis. R&D has always been the thrust area which has enabled the company to introduce many new products in a short time. The Company continues to enhance its R&D capabilities and capacities to develop differentiated and high technology products for India and global markets.
The sector at present growing around 12-15% Compound Annual Growth Rate ("CAGR"). A significant percentage of purchasers of medical devices are private medical institutions and hospitals. Due to increased competition in Tier I cities, private enterprises have started to focus on Tier II and Tier III cities, a market which is until now untapped in India. As private enterprises expand in lesser explored markets, the demand for medical devices will expand proportionally.
The Company faces competition from domestic as well as large Multi-national companies. The Company competes with them on technology, quality, price and performance of products time to time. By being present in over 105 countries, the Company has reasonable competitive information which helps it to plan and execute its business in a better way.
Statement in the Management Discussion and Analysis describing the Companys objectives, projections, expectations and estimates regarding future performance may be "forward looking statements" and are based on currently available information. The management believes these to be true to the best of its knowledge at the time of preparation of this report. However, these statements are subject to certain future events and uncertainties, which could cause actual results to differ materially from those, which may be indicated in such statements. Investors, therefore, are requested to make their own independent judgements before taking any investment decisions.
|a) Technology Imported.|
|b) Year of Import.|
|c) Has the technology been fully absorbed.||No Imported Technology|
|d) If not fully absorbed, areas where these has not being taken place, reasons thereof and future plans of action.|
C. Foreign Exchange Earnings and Outgo
Activities relating to export, Initiative taken to increase exports, development of new products and service and export plans:
The Company continues to keep its focus on widening of new geographical area to augment its exports. The Company is regularly participating in major overseas exhibitions, which are very helpful in improving the visibility of various products in International markets and widening its customer base.
Foreign Exchange used and earned
|(a) Foreign Exchange Used||15,543.68||14,555.29|
|(b) Foreign Exchange Earned||38,674.59||34,479.04|