Amrutanjan Health Care Ltd., a leading manufacturer of pain relief balms, plans to strengthen its foothold in overseas markets by expanding presence in southeast Asia and in African countries, besides focussing on the North and West zones of India. Export revenue of the home-grown company, despite challenging macro conditions, breached the ₹4 crore-mark for the second consecutive year.Africa continues to be the largest contributing region at 69.3% of total exports and it witnessed an increase of 13.2% in FY20 over the previous year.Efforts are on to enter the Philippines, Laos and Kenya, S. Shambu Prasad, CMD, said in a note to shareholders.In the domestic market, the pain management segment of OTC category continued to be the core area of focus. The head and body pain management segment contributed 79% of revenue and will continue to be the lead revenue factor for future growth. The company makes pain balms, cough syrup, cold rub, inhalers and sanitary napkins.While the South zone contributes 58% of sales volume, followed by East 26%, the contribution from West (13%) and North (3%) zones are low. Hence, the company has put in place some specific plans to increase the revenue.During FY21, the company will further strengthen the existing markets by introducing new products, expand distribution network, scale up new categories launched in the past three to five years, and focus on maintaining the gross margin.Mr. Prasad that the company’s operations were not hit by the pandemic till March 2020. However, it disrupted the go-to-market and movement of goods to distributor, retailers and end consumers. The impact on sales in March was about ₹33 crore due to COVID-19. Potential sales without impact of COVID-19 would be ₹321.92 crore with a revenue growth of 14.44%.Exuding confident of weathering the storm, he said the company was built on strong fundamentals with real consumer demand. “Moreover, our products are not of discretionary nature, but of essential needs such as pain ointments, sanitary napkins, and rehydration drinks for post-illness recovery,” he said.On the outlook for the Indian FMCG sector, he said that it was expected to witness flat growth in 2020 due to COVID-19 spurred lockdowns. In the first quarter, the sector took the hit. “However, it is expected that the second half of the year 2020 will witness a significant improvement,” he added.
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