The year 2021-22 was a mixed bag. The first half of the year witnessed second wave of Covid-19, mass vaccination drives, easing of restrictions and opening of economies to reverse economic losses. It was further underpinned by quantitative easing methods adopted by the Governments, follow-up support packages, and initiatives towards the revival of economies to bounce back to pre-Covid levels. On the other hand, the second half was marred by the third and fourth waves of the Covid-19 variants which had a domino impact on the outputs of nations. It was further highlighted by the Russia- Ukraine conflict, which began in the end of February 2022, which brought in supply chain disruptions, soaring energy prices and even rising inflationary trends across the globe. Fuel and food prices increased significantly, disproportionately affecting the vulnerable populace across low-income countries.
The last two years have been difficult for the Indian economy too, on account of the Covid-19 pandemic. Repeated waves of infection, supply-chain disruptions and, more recently, inflation have created particularly challenging times for policy-making. Faced with these challenges, the Government of Indias immediate response was a bouquet of safety-nets to cushion the impact on vulnerable sections of society and the business sector.
INDUSTRY STRUCTURE & DEVELOPMENTS:
The Pharmaceutical Drug Industry plays a pivotal role in strengthening the healthcare sector of the nation and acted as a pillar supporting the world during Covid-19 Pandemic. Over a period of time, Pharma industry has considerably contributed to GDP, employment generation, foreign exchange reserves of the nation. The Indian Pharmaceutical industry plays a prominent role in the global pharmaceutical industry.
Global Pharmaceutical Industry
The global pharmaceutical market was valued at US $ 1.4 trillion in 2021, and is expected to grow at a CAGR of 3-6% in the next five years, reaching a market size of US$ 1.8 trillion by 2026. Spending on COVID-19 vaccinations is also included in this projection, and the overall vaccine spending is expected to reach US$ 251 billion by 2026. In developed markets, adoption of innovative therapies and specialty medicines will drive medicine pharmaceutical growth, while loss of exclusivity and competition from generics and biosimilars, may slow growth. From 2017 to 2021, the pharmaceutical markets in the developed world expanded at a CAGR of ~4.3%, reaching US$ 1049.2 billion, and are expected to grow at 2-5% CAGR to reach US$ 1,230-1,260 billion by 2026.
Indian pharmaceutical Industry
Indian pharmaceuticals industry is a major global player, being the worlds third-largest producer by volume, and the fourteenth-largest producer by value. The country is the worlds largest provider of generic medicines, accounting for 20% of worldwide supply by volume, and also, the worlds leading vaccine manufacturer. Outside the United States, India boasts the biggest number of US-FDA approved pharma plants, with over 3,000 pharma businesses, and a robust network of over 10,500 manufacturing facilities, as well as a highly skilled workforce. The pharmaceutical industry in India offers 60,000 generic brands across 60 therapeutic categories. Major segments include generic drugs, OTC medicines, API/ bulk drugs, vaccines, contract research and manufacturing, biosimilars and biologics. With 60% of the worlds vaccines and 20% of generic medicines coming from India, Indian pharmaceutical businesses have established a global imprint, owing to their price competitiveness and high quality. Under the automatic route for greenfield pharmaceuticals, 100% foreign direct investment (FDI) is allowed in the pharmaceutical sector. Brownfield pharmaceuticals are allowed 100% FDI in the pharmaceutical sector, with 74% approved under the automatic method, and the rest through government permission. The cost of manufacturing in the Indian pharmaceutical business is around 33% lower than in western markets, and the sector has been granted incentives totalling 219,400 million (around US$ 3 billion). India is a large exporter of pharmaceuticals, having pharma exports to over 200 nations. India supplies approximately half of Africas generics need, 40% of generic demand in the United States, and 25% of all pharmaceuticals in the United Kingdom. India is also a major provider of DPT, BCG, and measles vaccinations, accounting for 60% of global demand. India supplies 70% of WHO vaccinations (as per the WHOs essential immunisation schedule).
Global Bulk Drugs market
Three segments - Branded Prescription drugs, Over-the- Counter (OTC) drugs and Generic Prescription drugs account for a majority of global bulk drug consumption. The total global bulk drug consumption is expected to reach USD 215 billion by 2023 at a CAGR 6.5% during the forecast period out of which 80% is used for Branded Prescription drugs, 10% for OTC drugs and 10% for Generic Prescription drugs.
Indian Bulk Drug Market
India is expected to be the 3rd largest global market for Bulk Drugs with a 7.5% increase in market share. There are 1150 bulk drug units producing about 350 important Bulk Drugs. The market analyst forecast the API markets in India to grow at a CAGR of 11% over the period of 2021-2025.
about remedium lifecare limited:
Remedium Lifecare Limited is engaged in the business of trading in Advanced Pharmaceutical Intermediates, Active Pharmaceutical Ingredients (APIs) and other pharma products used viz. Iso propyl Alcohol (IPA) ,Cyclohexane, DI Iso Propyl Amine (DIPA), Ethyl Acetate, Hydrazine Hydrate, Iso propyl Alcohol (IPA), Methylene Di Chloride, Potassium Carbonate Powder, Sodium Bi-Carbonate, Potassium Hydroxide Flakes, Sodium Chloride (Common Salt), Sodium Carbonate (SODA ASH), Amino isophthalic Acid, Tellurium(IV) Oxide, Grignard Reagent, Iodine, Selenium Metal Powder, Trimethyl Sulfoxonium Iodide (TMSI).
We, at Remedium believe, "Quality is an ongoing process of building and sustaining relationships". Our strong commitment of providing quality products is boasted by in-depth industry knowledge, well- qualified team of professionals, as well as hi-tech and advanced infrastructure. Resultantly, creating mutually beneficial associations for all the parties involved. Adhering to high quality standards is not an accident but our habit. Passionate to be the best, we take pride in what we do and strive to deliver products with 0% defects. We at Remedium, offer one of the broadest portfolios of Advanced Pharma Intermediates and Active Pharmaceutical Ingredients (APIs) - the ingredients responsible for the therapeutic effects of different medicines.
We believes in "Work hard in silence, let the quality of your work make the noise". We are abided by the norms of extending uncompromised quality products. We at Remedium are trying our best to raise the standards of the industry. Do more, feel better, live longer. Together we can make life better. Todays medicines finance tomorrows miracles. Breakthrough medicines for everyday living.We shall strive to operate globally and provide our selfless services to the humankind. Thorough Investment in R & D, devotion of our resources to enlighten the pharma sector in India shall be our forefront in the coming years.
FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE
During the financial year 2021-22, the Company achieved a turnover of Rs. 50479.19 Lakhs as compared to Rs. 9003.4 lakhs during the previous year. Thus the income from operations of the Company has been increased by 460.66% as compared to last years revenue from operations
During the year 2021-22, the net profit of the company has been increased from Rs. 48.05 lakhs to Rs. 107.78 lakhs higher by 124.30% as compared to previous year.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:
The Company has strong and adequate internal control system suitable to its size and nature of business. We constantly upgrade our systems for incremental improvements.
The Audit Committee of the Board regularly reviews the Internal Control System. The system ensures protection of assets and proper recording of transactions.
Internal audit is carried out by an Internal Auditor appointed by the Company on a quarterly basis. The internal auditors reports are regularly received by the Audit Committee. It is a regular practice to review the issues raised by Internal Auditors and statutory auditors by the Audit Committee.
RISKS AND CONCERNS
The impeding threats arising out of geopolitical tensions, stock market volatility, growing concerns about a rise in the commodity and energy prices, the inflationary impact, potential interest rate hikes to reduce liquidity within the system, the Covid-19 pandemic risk are continuing to hold back the economic recovery. While these factors are likely to pose threats going forward, lets look at some more threats that could hamper the Companys progress.
Due to the COVID-19 outbreak, there could be a significant risk to Remedium in procuring materials from China and other markets, including the domestic market. The ongoing COVID-19 pandemic has created severe disruption on the entire supply chain process in terms of material planning, sourcing, production, inventory management and logistics & distribution.
CAUTIONARY Statement :
Statement in the Management Discussion and Analysis may be "forward looking statements" and are based on the 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.