2009-10 was a transformational year for your Company. We moved
decisively to strengthen and expand our core businesses. We made
excellent progress generating solid financial results, advancing our
product development pipeline and strengthening our market presence.
For the year ended March 31, 2010, your Companys revenues increased
marginally to Rs 2150 mn, a growth of 17% over the previous year.
However there has been a robust increase in our bottomline. From a
loss of Rs 174 mn in the previous fiscal we have reported a profit of
Rs 74 mn. The principal reason for this turnaround has been our ability
to operate at more than 100% capacity. Its our goal at Hiran to
position the Company for accelerated growth in revenues and earnings.
The global generic industry is expected to grow at a faster pace at
CAGR of 9% over FY 08-13 as compared to the overall pharmaceutical
market which is slated to grow at a CAGR of 2-3% over FY 08-13.
Currently valued at USD 87 bn, the global generic market is expected to
touch USD 135 bn by 2013. Factors triggering this growth include drugs
worth USD 235 bn going off patent over FY 10-15, tripling of elderly
population (60+ population -700 mn in 2005 would reach 1900 mn by
2050), spiraling health care expenses across the globe and favourable
This was the broad overview about the industry that your Company
operates in and now let me give you macro picture about the operations
of your Company.
The biggest highlight for the year under review is establishing a new
entity ActGen Pharma Pvt. Ltd. in collaboration with Procycon
Lifescienes Pvt. Ltd. With this newly formed entity our combined
manufacturing capacity stands at nearly 2000 MT p.a. Involving a capex
of Rs 300 mn and a 49% stake this newly formed entity your Company is
equipped to cater to the increasing demand for its products and mark
its foray into the high margin regulated markets after receiving the US
FDA approval. Further, your Company is not only looking to expand but
is also taking steps to maxmise operational efficiencies due to which
our capacities were operational at more than 100% in the year under
RESEARCH AND DEVELOPMENT
Research and development is a powerful engine which serves as a tool to
enrich your Companys product pipeline, enter the developed markets and
to fortify its position as a fast-growing pharmaceutical company. Hiran
views its R&D capabilities as a vital component of the business
strategy which will provide it with a sustainable, long-term
Quality being the supreme objective, your Company continuously keeps
abreast of the latest information and technological developments both
in India and abroad. Your Company has evolved a quality policy, and
this has helped us grow manifolds in this business since our inception.
Further, we also ensure our manufacturing capacities incorporate best
practices and adhere to stringent regulatory compliances and quality
REAL ESTATE INVESTMENT
To garner attractive returns your Company had made an investment in the
fast growing real estate sector in the year 2006-07. Your Company has
acquired land in Coimbatore and has plans to develop an integrated
township which would be developed in 3 phases.
A BRIGHT FUTURE AHEAD
Clearly, we believe that we are entering an exciting new phase of
development. We will continue to make the necessary investments in R&D
to pursue our long term strategy of expanding our product portfolio and
strengthening our market presence. We also plan to raise Rs 500 mn
through a GDR issue in the next fiscal which would be employed for
capital expenditure, meeting long term working capital requirements and
setting up offices overseas.
Our strong financial foundation, a very promising pipeline of products
and unique technology platforms will be the key factor driving growth.
ON A PARTING NOTE
We have an excellent team of employees committed to achieving the
Companys goals in the coming years. I look forward to reporting on our
progress towards those goals in months and years ahead.
Chairman and Managing Director