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The global pharmaceutical industry is expected to grow to about US $1.9 trillion by 2027 with a CAGR of 3-6% . The growth is expected to be driven by increased spending on pharma in Asia-pacific, India, Latin America and middle east, which are expected to exceed global volume growth. The growth in developed countries is expected be lower compared to pharmerging markets. US market is expected to grow by 2.5% to 5.5% helped by increased spending on existing as well as new new medicines.

The Indian Pharmaceutical Market size reached USD 48.4 Billion in 2022. It is expected to reach USD 102.7 Billion by 2028 exhibiting a growth rate of (CAGR) of 13.1% during 2023-2028. The Government of India is extensively investing in research and development (R&D) activities that support rapid drug discovery for improving health outcomes.

Furthermore, inflating income levels and improving medical infrastructure is propelling the sales of pharmaceuticals. Some of the other factors stimulating the growth of the market in the country are lower manufacturing costs, a highly skilled workforce, technological advancements, and enhanced marketing and distribution system.

On the other hand, adoption of cost control policies along with tightening of rules by governments in key markets are expected to impact the growth prospect of the global pharmaceuticals industry.

Company Overview:

(A) Active Pharmaceutical Ingredients (API) Business:

The worldwide API market is likely to exceed US$ 285 Billion by 2028 - a 6.9% CAGR for the forecast period from 2023 to 2028.

The API division of Wanbury, in FY 2023 registered de-growth of -2.5% with revenue at INR 437 Crore. The de-growth was primarily on account of steep increase in product price due to material cost inflation, low off take from customer in order to liquidate inventories & slow-down in Europe & US during first half of the financial year. From Q3 onwards, the scenario started to improve and the business registered sustained recovery from the dip in first half.

The prices of key raw material started to soften from Q3 onwards, which has helped in improvement in margin. Easing of supply chain disruption & container availability post covid has resulted into stabilised material supplies. Sertraline continues to do well with strong order book position. New long- term business has been developed with key accounts, which will further propel the business growth.

The company is focusing on development of new products like Ketamine, Rivaroxaban, Montelukast, Sitagliptin and few others to reduce dependency on Metformin and Sertraline.

Some of the key initiatives for the API business being executed are as follows:

• Long term contracts with material suppliers to ensure availability of raw materials.

• Yield and process improvement to reduce cost & make the organisation more competitive.

• Exploring opportunities of expanding its existing and new products into newer markets.

• Expanding the product portfolio in order to de-risk the dependency on key molecules. A robust product selection process and effective program management is being implemented to increase the filings of new DMFs and diversify the product basket.

(B) Domestic Formulations Business:

Domestic formulation business registered Annual Sales of Rs.63 Crore a 5% growth over previous year. The business is regaining its hold in the cold & cough segment, additionally the company is also working on improving the sales for other key Brands into different therapeutic areas.

During the year, management have initiated various measures to turnaround the business as below:

• Strengthening of talent pool.

• Automation of reporting mechanism to improve productivity.

• Customer engagement & brand promotion.

• Peoples training & productivity improvement along with detailed plan on talent retention and development.

• New brand launches

All of above is expected to yield a sustainable growth in sales for the division in near term.

(C) Human Resource (HR) Initiatives at Wanbury:

The Wanbury family consists of over 1120 members spread across various geographic locations and functions. We as an HR showed a strategic and coherent approach in managing the talent and put an endeavour in employing people and developing their capabilities, utilizing and maintaining their services. We define a set of key people who support the overall business strategy and keep them engaged and motivated. HR policies and practices are benchmarked continuously with the best in the industry.

(D) Threats, Risk and Concern:

As any other business, your Company is subject to various risks and threats. The key risks/ threats are as follows: Competition:

Your Company operates in a highly competitive environment with pricing being one of the key determining factors of success. In the API business, your Company has been able to overcome this risk by influencing the prices as it is one of the largest manufacturer of Motorman in the world with over 10% market share. Sertraline is seeing high demand and growth especially in international markets. As a long term strategy we are also working on development of new products to reduce dependencies on existing products.

In the Formulations Business, the Company has mitigated this risk to a very large extent by diversifying its product portfolio and launching new value added products.


Manufacturing of pharmaceutical products is highly regulated and controlled by regulatory and government authorities across the world. Failure to fully comply with such regulations, could lead to stringent actions from the authorities/ government. Regulators across the world, including the USFDA, have become stricter with the pharmaceutical industry. Regulatory requirements and consequences for non-compliance are also getting more severe.

The company has laid down policies that ensure strict compliance to all regulatory requirements. Same is been reviewed periodically to ensure that controls put in place are operating effectively.

Going Concern

The Company has initiated various measures, including restructuring of debts/business and infusion of funds etc. Consequently, in the opinion of the management, operations of the Company will continue without interruption in spite of negative net worth. Hence, financial statements are prepared on a "going concern" basis.

Foreign Exchange Fluctuations:

As the share of exports to total sales made by your Company is considerable, same is partly hedge through natural hedging via raw material imports. Company also hedge it open exposure via forward cover to some extent. Further management exercise close monitoring of currency fluctuations.

(F) Financial Review:

In accordance with the SEBI (Listing Obligations and Disclosure Requirements 2018) (Amendment) Regulations, 2018, the Company is required to give details of significant changes (change of 25% or more as compared to the immediately previous financial year) in key financial ratios.

The detailed financial & operational performance is provided on page no. 65.

(G) Cautionary Statement:

Statements in the "Management Discussion and Analysis" describing the Companys objectives, estimates, expectations or projections may be "forward looking statements" within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations; include Government regulations, patent laws, tax regimes, economic developments within India and countries in which the Company conducts business, litigation and other allied factors.

For and on behalf of the Board of Directors

Mumbai, 7 July, 2023

K. Chandran Vice Chairman DIN:00005868

Pallavi Shedge Director DIN: 08356412