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Amrutanjan Health Care Chairman's Speech > Engineering - Heavy > Chairman's Speech from Amrutanjan Health Care - BSE: 590006, NSE: AMRUTANJAN

Amrutanjan Health Care

BSE: 590006|NSE: AMRUTANJAN|ISIN: INE098F01031|SECTOR: Pharmaceuticals
Jun 22, 16:00
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Mar 14
Chairman's Speech (Amrutanjan Health Care) Year : Mar '15
 Dear Shareholders,
 The year 2014-15 saw a robust increase in top line growth of 18% that
 aided in the bottom line growth of 19%. Both our OTC and Beverage
 businesses saw value and volume increases that aided in the overall
 performance of the company. The theme for the year was  continuation
 of the trend from previous yeah and some of the key enabling factors
 * Body segment growing to 8% of total share of revenue from 4% the
 previous year.
 * Growth in sales of overall business in regions beyond South
 * Growth in Modern trade business
 * Growth in exports
 * Execution of segmentation strategy by market and product basis town
 * Positive impact of input materials on Gross Margin
 * Gross margin expansion from 58.50% to 62.49% for the OTC business
 * Positive impact on cash flows due to channel stock reduction of 20%
 * Beverage business completely operating on advance payments aiding to
 cash flow improvements
 * Successful expansion of Beverage business to Eastern region
 * Roll on format contribution increasing from 10% of sales to 14%
 The examples given above are to give our stakeholders and readers of
 this report a insight into our focused approach to all segments of the
 business: from growth to efficiency improvements that ultimately result
 in shareholder value creation.
 The pain category is one of the most fiercely contested segments in the
 OTC space today with the entry of large generic pharmaceutical players
 (domestic and foreign) recognizing the opportunities in the space as
 more consumers self medicate.
 This has resulted in enormous amounts of monies being invested in the
 brand to build top of mind saliency with the consumer (as product
 differentiation is minimal).
 Your company while being efficient at a aggregate Share of voice level
 and with a ad to sales ratio at 11% also has used innovation to create
 product differentiation via formats and formulation development. This
 has clearly resulted in successes with the Body and Head roll on
 launches as well as gaining share of shelf and mind in the new
 geographies of India as well as overseas. Our exports revenue has stood
 at an all time high last year having doubled from Rs. 150 lacs to Rs.
 358 lacs.
 Our product and distribution segmentation strategy based on formats and
 town class helped us bring focus to the core OTC business that resulted
 in the Pain segment growing at 14% in 2014-15. This was also
 complimented by an aggressive and vibrant media campaign highlighting
 the effectiveness of the Amrutanjan range of products. For the year
 2014-15, Amrutanjan brand is one of the top advertisers in the
 rubefacient category and we wish to continue this investment going
 forward. Our overall brand equity has recorded the highest value in the
 last three years(source: Nielsen).
 Our beverage business rebounded this year with value and volume sales
 growth of 41% and 35% respectively We now distribute and market Fruitnik
 in Tamil Nadu, Telangana, Andhra Pradesh, Karnataka, Orissa and West
 Bengal. The Advanced Pain Management Center which offers non-surgical
 pain relief on a out patient basis treated around 5500 patients from its
 two centers in Chennai since 2011-12 , averaging around 100 patients a
 month. This is a novel concept in India and as more consumers learn
 about the idea of non- surgical pain relief the business should grow in
 the future. We recognize the need to grow at faster than industry
 growths as size is essential in today''s FMCG industry.
 In it''s 122nd year of existence, Amrutanjan Health Care Ltd, is an
 organization that is young at heart but also firmly engaged to the
 values that have been imparted by the founder and demanded by it''s
 stakeholders. We wish to continue growing as a organization guided by
 these values of honesty, integrity and respect to the world at large(
 stake holders, society and environment).
 S.  Sambhu Prasad
Source : Dion Global Solutions Limited
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