A. Overview of the Indian Economy:
The global pharmaceutical market was valued at US$1.4Trillion in 2021 and is expected
to reach ~US$1.8 trillion by 2026, growing at a CAGR of 36%. This includes the spending on
COVID19 vaccines, which is projected to reach a cumulative value of US$251 Billion during
this period. Excluding the spending on COVID19 vaccines, the industry is expected to
record ~5% CAGR between2021 and 2026.
India is one of the biggest suppliers of lowcost vaccines in the world. India accounts
for 60 % of global vaccine production, contributing upto 70 % of the WHO demand for
Diphtheria, Tetanus and Pertussis (DPT) and Bacillus CalmetteGuerin (BCG) vaccines, and
90% of the WHO demand for the measles vaccine. The nation is the largest provider of
generic medicines globally, occupying a 20% share in global supply by volume, and is the
leading vaccine manufacturer globally. India also has the highest number of USFDA
compliant Pharma plants outside of USA and is home to more than 3,000 pharma companies
with a strong network of over 10,500 manufacturing facilities as well as a highly skilled
resource pool.
The pharmaceutical industry, one of the most profitable industries in the world, is
under significant pressure to bring in costeffective and innovative drugs. The discipline
of precision medicine and genomic medicine has gained significant interest from
researchers and healthcare providers globally. Already, it is making an impact in the
fields of oncology, pharmacology, rare and undiagnosed diseases, and infectious disease,
and its popularity is expected to grow significantly in coming years. Sensing the huge
opportunity in the field of precision medicine and genomic medicine, several big pharma
companies have been making huge investments to expand their precision and genomic medicine
portfolios and pipelines. The number of personalized drugs is expected to double or even
triple in the upcoming years.
B. Outlook:
All our businesses are positioned for growth, and we expect highsingledigit to
lowdoubledigit consolidated topline growth for FY23. Rampup in our global specialty
business is expected to continue Although, Governments commitment toward structural
reforms and social welfare measures will help in economic recovery. Further, resolution
for Atmanirbhar Bharat along with collective effort of all stakeholders will contribute to
rebuilding a strong economy. The Company will continue to focus on meeting the needs of
its longterm strategic partners through investment in new capabilities and the continuous
improvement of the services provided within these collaborations.
C. Industry structure and development:
The pharmaceutical industry in India is currently valued at $50 Bn. India is a major
exporter of Pharmaceuticals, with over 200+ countries served by Indian pharma exports.
India supplies over 50% of Africas requirement for generics, ~40% of generic demand in
the US and ~25% of all medicine in the UK. India also accounts for ~60% of global vaccine
demand, and is a leading supplier of DPT, BCG and Measles vaccines. 70% of WHOs vaccines
(as per the essential Immunization schedule) are sourced from India.
India enjoys an important position in the global pharmaceuticals sector. The country
also has a large pool of scientists and engineers with the potential to steer the industry
ahead to greater heights. Presently, over 80% of the antiretroviral drugs used globally to
combat AIDS (Acquired Immune Deficiency Syndrome) are supplied by Indian pharmaceutical
firms.
Company is committed to create an open and transparent organization that is focused on
people and their capability, and fostering an environment that enables them to deliver
superior performance. Company continued to focus on expanding its product offerings to
consumers by way of new product launches and expansion of existing products, thereby
continuing to address the growing and everchanging needs of its consumers.
D. Opportunities and Threats:
Opportunities:
Network area: The Company has diverse product portfolio, wide network area of sales,
marketing and distribution, wide range of fill volumes etc.
Management: The Company has experienced management team and well qualified senior
executives.
Technological Developments: The Company has adopted superior and advanced technology
for manufacturing Pharmaceutical, Nutraceutical, Ayurvedic and Herbal Products.
Market: Companys manufacturing and institutional sales stabilize revenue stream and
helps in targeting new domestic and export markets. Hence, the Company has a wide range of
network area for trading its products online or offline.
Threats:
High Competition Era: The Pharmaceutical Industry has entered into the orbit of the
high competition. The market fights are set to intensify with unstoppable capacity build
up. The Competition from both unorganized and other organized players, leading to
difficulties in improving market share.
Manpower: The one of the common problem emerged for finding talent with competence or
even skilled man power for Pharmaceutical Industries irrespective of the Companys Brand
or Size.
Under cutting of price: Due to high competition in market, the competitors are doing
price cutting of Services to compete or keep their existence in markets which is ultimate
big problems for the industries.
New Entrance: More and more new organized players are entering into market which will
increase competition in organized sector also.
E. Segmentwise or Productwise performance:
The Company is primarily engaged in single segment i.e.. Trading of Pharmaceutical
commodities. The Turnover of the Company for the Financial Year 202223 is mentioned in the
Board Report
F. Future Outlook:
The Companys outlook for the year 202324 is to add more products in the product range
as per requirement in both Indian and Global market Due to unexpected effects of Covid19
Pandemic, the Company will focus on research and development higher productivity, etc.
G. Internal control systems and their adequacy:
Being a pharma company and ISO Certified the process parameters are fully documented
and are in place. The role and responsibilities of various people are fully defined in all
the functional level. There is continuous flow of information at all level and effective
internal audit and internal checks are done at regular interval to ensure their adequacy
and efficiency.
Additionally, the following measures are taken to ensure proper control:
Budgets are prepared for all the operational levels.
Any material variance from budget has to be approved by the Commercial director.
Any major policy change is approved by the managing director.
Any deficiency in not achieving target is reviewed at management meetings.
H. Discussion on financial performance with respect to operational performance:
The financial performance of the Company for the Financial Year 202223 is described in
the Directors Report of the Company.
I. Material developments in Human Resources / Industrial Relations front including
number of people employed:
The cordial employer employee relationship also continued during the year under the
review. The Company has continued to give special attention to human resources.
]. Caution Statement:
Statements made in the Management Discussion and Analysis describing the various parts
may be "forward looking statement" within the meaning of applicable securities
laws and regulations. The actual results may differ from those expectations depending upon
the economic conditions, changes in Govt. Regulations and amendments in tax laws and other
internal and external factors.
Registered Office: |
|
By the Order of the Board of |
S.F. Shop 3/2/B Samruddhi Residency, Raspan Arcade Cross Road Nr.
Satyam, |
|
Earum Pharmaceuticals Limited |
Complex Nikol Ahmedabad 382 350 |
Sd/ |
Sd/ |
|
Sanjaykumar Nai |
Viajy Kumar Patel |
Place: Ahmedabad |
Director |
Managing Director |
Date: 14th August, 2023 |
DIN:10083298 |
DIN:08073622 |
+91-9892691696
