MANAGEMENT DISCUSSION AND ANALYSIS REPORT Industry Structure and Development: The Indian pharma market size is expected to grow to US$ 85 billion by 2020. The growth in Indian domestic market will be on back of increasing consumer spending, rapid urbanization, and raising healthcare insurance and so on. Moreover, the government has been taking several cost effective measures in order to bring down healthcare expenses. Thus, governments are focusing on speedy introduction of generic drugs into the market. This too will benefit Indian pharma companies. In addition, the thrust on rural health programs, life saving drugs and brventive vaccines also augurs well for the pharma companies The Government of India has unveiled 'Pharma Vision 2020' aimed at making India a global leader in end-to-end drug manufacture. It has reduced approval time for new facilities to boost investments. Further, the government has also put in place mechanisms such as the Drug Price Control Order and the National Pharmaceutical Pricing Authority to address the issue of affordability and availability of medicines. The Indian pharmaceuticals market is third largest in terms of volume and thirteen largest in terms of value. India has achieved an eminent global position in pharma sector. The country also has a huge pool of scientists and engineers who have the potential to take the industry to a very high level. The Indian pharmaceutical industry is estimated to grow at 20 per cent compound annual growth rate (CAGR) over the next five years. Gujarat clocked the highest growth rate in pharmaceuticals market at 22.4 per cent during November 2014, surpassing the industry growth rate, which grew by 10.9 per cent, Opportunities and Threats: There is High demand for your company's products. The sector needs to continuously invest in development of global R&D capabilities and its well-established Contract Research and Manufacturing Services (CRAMS) segment. Strong international collaborations and partnership will support India's efforts to deliver more value-added products Outlook: Growing the Business exponentially would require investing in infrastructure, in people and consolidation our strength. Your Company has decided to focus on products and markets of higher profitability only. The change in marketing strategy and exposure in the world market will enable us to become a global force to reckon with. We have started exporting new products to Canada, Nigeria etc and the demand for the products is very healthy. Risk and Concerns: Higher interest rate regimes are bound to stay thereby effecting expansion plans and profitability. Internal Control System 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 continuously 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 brpared for all the operational levels. • Any material variance from budget has to be approved by the Executive director. • Any major policy change is approved by the managing director. • Any deficiency in not achieving target is reviewed at management meetings. Human Resource development / Industrial relations: The company has made a plan to recruit best talents of industry by providing them long term growth plan and various facilities. Proper job evaluation, merit rating and allocating right job to right person is the basis of our HR policy. Harmonious industrial relations continued to brvail throughout the year. |