Sangam Health Care Products Ltd Management Discussions.


The year gone by was a challenging one for the Indian Pharmaceuitcal Industry as it faced couple of challenges during the year impacting its growth. National Pharmaceutical Pricing Authority (NPPA) announced reduction in the prices of more drugs in the beginning of the finalcial year affecting the pricing of such drugs adversely. As a resul of this, portfolio of products under the National List of Essential Medicines (NLEM) de-grew in value terms though it registered volue growth during the year.


The pharmaceutical industry is highly competitive and the challenges are from both the Indian manufacturers who have similar production facilities as well as those abroad. Human resources with similar skill,s talent and experiences in the industry are mobile between competing companies. Price pressures from foreign players are expected to stay. Going forward, there is a risk of inability to maintain current margins on its products. Price sensitivities get tested in a crowded market where price tends to sag while volume business gets done. Competing pharmaceutical companies have several similar bio-equivalent products in the same market manufactured at facilities that have been abbroved by the gighest regulatory authorities. All of them stay focused in the same markets resulting in price elasticity being tested and margins eroding.


The Company is accredited with ISO 9001:2008 certification for Manufacturing and supply of Medical Devices including sterile infusion sets (IV sets) sterile transfusion sets (B.T.Sets) SterlieHypodemic Needles, Sterile Syringes and Urine Bags.


The Company manufactures IV sets, Disposable Syringes and Disposable Needles. The Annual Capacity of IV sets is 40 millions, Disposables Syringes is 264 Millions and Disposable Needles is 135 Millions per Annum. As the Company has completed the de-bottlenecking of the IV sets, Capacity is increased to 40 millions from July 07 onwards.

5. OUTLOOK: Healthcare should be extended to the people at an affordable cost and the industry needs to set its priorities straight by treating healthcare activity as a service activity rather than a business activity.

Our Company has emerged as one of the leaders in the Medical Disposables market and its continuous efforts for a strong presence in the domestic market. There has been growing awareness among the end users about the threats posed while using Low Quality Infusion sets produced and marketed by the Unorganized Sector. There were conscious efforts from the government which helped the cause more. The share of unorganized sector is falling drastically and there was a corresponding spurt in the demand for quality products in addition to the normal increase in demand.

The Company is making all efforts to meet the increase in demand for our products.


There is no visible silver lining in the job market yet. With government extending price controls over the medical devices and proposing generic prescriptions, healthcare industry foresee millions of employees losing jobs in the next two years.


The Company has sound and adequate internal control systems commensurate with its size and nature of business. We constantly upgrade our systems for incremental improvements, because we firmly believe that ‘change is the only permanent thing. The Audit Committee of the Board periodically reviews these systems. These systems ensure protection of assets and proper recording of transactions and timely reporting.


Turnover:The Gross Sales of the Company is Rs._3929.92 lakhs in FY 17-18 and Rs.2373.69 Lakhs in F.Y.2016-17.

Reserves & Surplus: The Reserves and Surplus of the Company has down from a native balance of Rs.4021.01 lakhs in F.Y. 2016-17 to 3041.00 lakhs in FY 2017-18

Secured/unsecured loans: There was Decrease of loans as the present F.Y.2017-18 is Rs.1906.92lakhs as compared to previous F.Y. 2016-17 is Rs.3962.15 lakhs

Tax: the Company has provided for a sum of Rs.7.36 lakhs as current year tax.

Dividend: Board has not recommended any dividend for the financial year 2017-18.

Share Capital: The Company has not allotted any shares during the year under review and the paid up share capital as on march, 31, 2018 is Rs.1486.07 lakhs divided in to 148.60 Lakhs Equity shares of Rs.10/- each.

Net Worth: The net worth of the Company has decreased from a negative figures of Rs.2299.34_ lakhs to a negative figure of 13.73.41 lakhs

Fixed Assets: The Companys Fixed Assets are at the present F.Y 2017-18 is 1992.85 lakhs as compared to previous F.Y.2016-17 is Rs.2,144.11 lakhs

Net Profit: The Companys Net profit after Tax and extraordinary expenses during the FY 2017-18 was Rs.737.37 lakhs compared to Rs.685.66 lakhs loss in FY 2016-17

EPS: Earning per share has been in 5.37 for fy 2017-18 compared with FY 2016-17 is - 4.36

9. HUMAN RESOURCES: Sangam is a professionally managed company with high competent and committed industry professionals forming a tight-knit team of dedicated colleagues. The corporate promises to focus on performing and delivering on patient- safety. The knowledge, expertise and skills of the team form a strong foundation of the Companys progress, and hence considerable strategic emphasis is laid at people development and leadership. The overall target is to enhance business growth by enabling engagement and performance. This is achieved by having the right people supported by leadership of able management working together towards organizational goals.Appreciation for the support and co-operation that the company received from the customers, auditors, consultants and all other associated with the company.

The company always looked upon them as partners in its progress and has happily shared the rewards of growth. It will be the companys endeavor to build and nurture strong links with trade based on mutuality, respect and co-operation.