BUSINESS OVERVIEW
Shukra Pharmaceuticals Limited is a public limited company with a global perspective.
Manufacturing, exporting and marketing in both domestic and international markets. Buyers
in Australia, Uganda, Kenya, United Kingdom, Sri Lanka, Mauratius and the Republic of
Yemen depend upon Shukra Pharmaceuticals Ltd. for quality qualification.
In the vast Indian pharmaceutical market comprising of over 20,000 manufacturing units,
Shukra has earned itself a formidable reputation. Expertise in research and development,
formulation manufacturing, latest quality movements and in-depth insight into the Indian
and International pharmaceutical markets, Shukra has made unrivaled progress.
Shukra Pharmaceuticals has assisted in the development and manufacture of a wide
variety of drugs and dosage forms and potency variations for many prestigious
pharmaceutical companies from around the world.
Shukra relies on quality, efficiency, expertise in research and development and
in-depth insight into the Indian & International pharmaceutical markets.
INDUSTRY STRUCTURE AND DEVELOPMENT
The Indian pharmaceutical industrys success has been built on the foundations of its
distinctive capabilities in key areas of the value chain, such as manufacturing, product
development and process innovation. Recently, the industry has been facing headwinds both
domestically, and in key global markets (like the US) which has subdued its growth to the
existing Compound Annual Growth Rate (CAGR) of seven to eight percent. Nonetheless, many
opportunities still exist across new geographies and product classes for Indian
pharmaceutical players to chart an accelerated growth path.
OPPORTUNITIES:
Supporting state-sponsored health coverage programs and a focus on chronic healthcare
could enable universal drug access The Ayushman Bharat Yojana (a centrally sponsored
National Health Protection programme) is estimated to benefit 10 crore vulnerable families
(about 50 crore beneficiaries or about 40 percent of Indias population). It will provide
poorer households with affordable access to healthcare facilities, while also improving
health insurance penetration. This is an opportunity for the industry to help Indias
underserved masses with affordable drugs. Additionally, with the disease burden in India
now transitioning towards chronic diseases, there is an increased demand for specialised
drugs which are currently more expensive than acute drugs. The industry is well placed to
address this need through affordable, high quality drugs for chronic diseases. Pursuing
opportunities in newer product classes such as bio-similars, gene therapy and specialty
drugs until now, the Indian pharmaceutical industrys success has largely been due to
production of generics drugs. While the industry was one of the first to initiate
biosimilar development and launch in the Indian market (e.g., the first bio-similar to
Rituximab, Reditux, was launched by Indias Dr. Reddys in 2007), successes in the
developments at scale of next-generation product classes such as gene therapy and
specialty drugs have been limited. The enabling environment on supporting development,
i.e. Department of biotechnology and regulatory could have played a more facilitating role
but are possibly constrained. Spurring innovation in these product classes can usher-in
the next leg of growth for Indian pharma industry. For example, the biosimilars market
could exceed USD 60 billion by 2030. If Indian Pharma industry is able to capture even 10
percent of this market, it could grow by 13 percent. Pharmaceutical companies however,
will have to take a long-term view, about 8 to 10 years, to capture these opportunities,
since investments in these technologies have high gestation periods. It may also need
conducive investment environment in the domestic market to be able to do so.
As the industry aspires to become the worlds largest supplier by volume, the next wave
of growth could come from increasing exports to large and traditionally underpenetrated
markets such as Japan, China, Africa, Indonesia and Latin Americas. For example, the
Japanese pharma market was worth over USD 85 billion in 2018, with Indian pharmaceutical
companies having a share of less than one percent. Penetration in these markets may
require a new business model (e.g.,partnerships with local manufacturers, distributors,
etc.) to adapt to local market requirements. Government interventions and trade-relations
support will help in enabling market access for Indian pharmaceutical companies in these
markets
CHALLENGES:
India is yet to achieve universal healthcare access to healthcare in India is
inadequate in comparison to the size of the population. About 29 skilled health workers
are available for every 10,000 people in India compared to about 41 in China, and about
111 in the United States. While India meets WHOs critical threshold of about 23 skilled
professionals for every 10,000 people, it would need to add 1.5 million healthcare
professionals (as compared to China), a 42 percent increase to meet the needs of
population. This is extremely critical for a healthy India and a thriving healthcare
ecosystem. The inability to pay for healthcare bills is another challenge that Indians
face. Indian governments expenditure on healthcare is low (about 1 percent of GDP)
compared to 2.5 to 3 percent of GDP of other developing economies such as China, Malaysia
and Thailand. With less than a third of Indians having health insurance, the rest of the
population pays medical bills from their own pockets. As a result, they must make tough
trade-offs between their healthcare needs, and other necessities. Such challenges need
innovative digital interventions to mitigate accessibility shortcomings at optimal costs.
Lack of a stable pricing and policy environment favorable for long-term investment
decisions Frequent and unexpected changes to the domestic pricing policy have created an
uncertain environment for investments and innovation. The government and stakeholders
would need to constructively engage to develop a framework that ensures availability and
accessibility of affordable drugs for citizens, while ensuring a workable pricing
structure for pharmaceutical companies.
The financial year 2021-22 marked resurgence in growth post the financial crisis.
Higher investment spending, especially in the emerging markets, is pushing growth in the
global economy. As a result, several countries are gradually returning to normal
macroeconomic policies. However, the economic health in parts of Europe and the fiscal
trends in some other countries is cause for concern and continue to impact the world
economy.
The forecast for the Indian economy is positive with growth expected to touch 7.4 per
cent in the current fiscal year. Yet, constant inflation in the country is taking its toll
and rising global commodity prices is only compounding the problem.
By 2021, India is likely to be among the top three pharmaceutical markets by
incremental growth and 6th largest market globally in absolute size.
A growing trend was that more Indian pharmaceutical companies focused on semi-urban and
rural markets for incremental growth opportunities. During the year, the industry also
witnessed Indian Pharma companies selling out to the multinationals.
STRENGTH:
> Shukra Pharmaceuticals Limited is managed by promoters who are competent
technocrats & have practical exposure.
> Company is WHO-GMP certified since 1998 and strictly comply with it.
> Shukra Pharmaceuticals Limited intend to mark its presence in countries like
Uganda, Kenya, Sri Lanka, U.K, U.S.A, Canada, Dubai, Denmark, Australia, Thailand,
Singapore, Mozambique, Mali, Republic of Guinea and aims to go in more number of countries
to expand its business.
> We also serve the export merchants based abroad, for example our U.K based buyers
who cater to countries like Senegal, Ghana. Denmark based buyers cater to NGOs tendering.
Australians serve all Pacific Islands like Papua New Guinea, Solomon, Kiribati, Tonga
& Thailand. Whereas Singaporeans cater to Ukraine, Poland & Sudan.
> Highly qualified, experienced & dedicate team of professionals with
proficiency in latest technology and technical advances.
OVERALL REVIEW OF COMPANY Product Portfolio
We are providing variety of products to the clientele. Currently the product portfolio
includes followings:
Antibiotics (Penicillin), Anti Biotics (Cephalosporin), Anti Biotics, Macrolides,
Quinolones, Anti Bacterial, Anti Fungal, Anti Malarial, Anti Viral, Anti Protozoal, Anti
Anthelmintic, Sedative and Tranquilliser, Anti Depressant, Anti Manic, Anti Emetic, Anti
Ulcer, Beta Blockers, Diuretics, Analgesic, Analgesic (NASID), Muscle Relaxants, Anti
Tuberculosis, Vitamin Products, Anti Allergics, Corticosteroids, Hyper and Hypoglycemic,
Others Customers satisfaction by delivering quality products has been the corner stone of
our Company. The Company, therefore, believes in manufacturing of all critical and
precision components in-house.
Manufacturing Activities
The formulation facilities are spread over 10 Acres of sprawling green campus. The
companys manufacturing plant is situated in the district Gandhinagar, Rakanpur.
Company has highly experienced, highly qualified, highly dedicated professionals
continuously updated with the latest technical and technological advances, manufacturing
innovations and product standards in the field.
A singular reason why Shukra Pharmaceuticals continues to be the choice of people who
value production efficiency, Safety, high output, economy and quality.
For Shukra Pharmaceuticals contract manufacturing is a strategic partnership, from
development to scheduled delivery. The Manufacturing practices are directed to ensure
better utilization of capacities, investments in the latest.
OPPORTUNITIES, THREAT, RISKS AND CONCERNS
The Indian pharmaceutical industry is growing consistently and is expected to do so
also in future. Quality of products will improve, as is evident from the recent
publication of the new Indian Pharmacopeias and the activities of the Drugs Controller of
India against "irrational combinations" and "counterfeits". We wish
that these initiatives, which will lead to a safer healthcare environment for patients,
will be followed up in a transparent and rational way.
Over the past decade, pharmaceutical companies have entered a difficult period where
shareholders, the market and regulators have created significant pressures for change
within the industry. The core issues for most of drug companies are declining productivity
of in-house R & D, patent expiration of number of block buster drugs, increasing legal
and regulatory concern, and pricing issue. As a result larger pharmaceutical companies are
shifting to new business model with greater outsourcing of discovery services, clinical
research and manufacturing.
Today Indian pharmaceutical Industry can look forward to the years to come, with great
expectations. There are opportunities in expanding the range of generic products as more
molecule come off patent, outsourcing, and above all, in focusing into drug discovery as
more profits come from traditional plays. At the same time, the Indian Pharma Industry
would have to contend with several challenges particularly the
> Effects of new product patent
> Drug price control
> Regulatory reforms
> Infrastructure development
> Quality management and
> Conformance to global standards.
FUTURE OUTLOOK:
Being satisfied with the infrastructure of the company Mr. Dakshesh Shah, Director is
gearing up to obtain ISO 9000 Certificate in view of the liberalization of economic policy
of the country. This will provide an ample and unique opportunity for the further growth
of the company.
Visualising a meteoric all round growth of Pharmaceutical Industry in India and abroad
Shukra has set up a sophisticated injectable plant being fully committed by continuous
improvement with its sound R&D base.
Further to attain financial strength through ever growing profitability to attain
excellence while achieving "Supreme customer satisfaction" to attain the global
recognition for the corporation and to focus on customers need and fulfill their
expectations.
SEGMENT WISE PERFORMANCE
The Company is operating only in two sector i.e. pharmaceutical and Laboratory. But
during the year the laboratory segment has not yet commenced its operation during the year
under review and therefore the segment reporting and performance standard is not
applicable to the Company.
FINANCIAL PERFORMANCE
The Company is passing through the restructuring process and trying to come out of all
difficulties by improving its turnover.
The Company has diversified its business activities and at the verge of achieving
better financial performance. The Company has successfully implemented various operational
excellence programs designed with the help of external consultants so as to optimize on
cost and delivery commitments. The Companys cash flow position as at the yearend
continues to remain strong. Increased liquidity has strengthened the Companys confidence
for launching new growth initiatives for the existing and emerging businesses of
construction.
Details of significant changes (i.e. change of 25% or it. more as compared to the
immediately previous financial year) in key financial ratios, along with detailed
explanations thereof, including:
| Sr. No. Financial Ratio |
Year ended |
| Particulars |
31.03.2022 |
31.03.2021 |
| 1. Debtors Turnover |
2.39 |
1.27 |
| 2. Inventory Turnover |
3.67 |
3.04 |
| 3. Interest Coverage Ratio |
|
--- |
| 4. Current Ratio |
1.27 |
2.28 |
| 5. Debt Equity Ratio |
0.21 |
0.63 |
| 6. Operating Profit Margin (%) |
- |
- |
| 7. Net Profit Margin (%) |
3.66 |
1.68 |
• Debtors Turnover ratio increased due to good collection of receivable.
• Inventory Turnover ratio decreased due to as on date Closing stock Inventory is
more than the average increase in sales compared to the previous year.
• Debt Equity Ratio increased mainly due to increase in Debt fund compared to
Shareholders Fund.
• Operating Profit Margin (%) decreased due to decrease in Operating Profit and
increase the Total Revenue of the Company in Current Financial year as compared to
previous financial year.
• Net Profit Margin (%) decreased due to decrease in Net Profit and increase the
Total Revenue of the Company in Current financial year as compared to previous financial
year.
INTERNAL CONTROL
The Internal Control systems including the policies, procedures and guidelines of the
Company are adequate and commensurate to the extent and nature of its operations. The
controls are reviewed for effectiveness by the internal auditors and the audit committee
too. Any deviations are brought to the notice of the Audit Committee periodically and
corrective steps are recommended and implemented.
|
For On Behalf of Shukra Pharmaceuticals Limited |
|
| Date : 01.09.2022 |
|
|
| Place : Ahmedabad |
Sd/- |
Sd/- |
|
Dakshesh Shah |
Payal Mehta |
|
Director |
Director |
|
(DIN:00561666) |
(DIN: 02145421) |
+91-9892691696
