I am delighted to inform you that your company, in line with our
objectives, has yet again recorded very consistent and vibrant
performance during the financial year 2006-07. During the year 2006-07,
your company achieved sales turnover of Rs. 46518.14 Lacs registering
62.61% increase over the previous year (Rs. 28606.85 lacs). Income
before interest and depreciation increased to Rs. 9139.65 lacs
registering 89.59% increase over the previous year (Rs. 4820.81 lacs).
The net profit increased to Rs. 4835.82 lacs registering 89.27%
increase over the previous year (Rs 2555.01 lacs). Your Directors
expect a consistent growth in companys performance in the years to
The most remarkable feature of the performance of your company has been
the quality of our performance particularly in exports. During the
previous year, distribution of sales was 67% domestic and 33% exports.
This year exports have upsurged to 45% with domestic at 55%. We expect
this trend to further accelerate more towards exports with an estimated
60:40 split between exports & domestic in the next financial year.
As a part of one of the fastest growing economies of the world i.e.
India, our aspirations and aim is to be in sync & contribute that very
little but significant part to Indias increasing global presence
besides catering to one of most robust domestic consuming market of the
One of the most significant aspect of this year has been marked
improvement in performance of your company through ongoing expansion of
the global business which includes presence in both the regulated
markets like US, Europe & the most happening BRIC (Brazil, Russia,
India & China) markets besides 35 other geographies of the world.
This rapid growth of your company is greatly attributed to a tremendous
amount of cohesion between the management team as well as dedication
and exemplary hard work put in by a highly skilled team of
officers/executives, work force and other stakeholders of the company.
In the lifesciences segment, where India is a very significant player
globally, it is extremely essential and important to be a highly
integrated player to not only survive in highly competitive environment
but also to continue to register a sustainable growth as your company
has done over the last few years. In this respect, your company is
optimally integrated backwardly through the active pharmaceuticals
ingredients segment particularly Cephalosoprins which is the biggect
segment of antibiotics/anti bacterials part of pharmaceuticals the
In terms of forward integration our plant at Baddi in Himachal Pradesh,
India for Finished Dossage Forms (PDF) has already gone on stream. This
is a state of the art PDF facility which is comprehensively compliant
with the highly stringent requirements of regulatory bodies like US
PDA, EDQM , MHRA, MCC, TGA etc to name a few. It has global capacities
for both Orals & Steriles forms and it is to the credit of a highly
motivated team in your company
which has put together an excellent global sized facility in place in
record time. This facility strategically positions your company in the
CRAMS (Compact Research & Manufacturing Services) segment of
Lifesciences in which India has registered the highest segmental growth
in Lifesciences industry.
Additionally as part of the horizontal expansion, your company has also
set up Empty Hard Gelatin Capsules (EHGC) Facility in Baddi which also
is one of the most modern and technologically advanced facility. This
unit will be the only EHGC unit in Baddi catering captively to
practically all major Indian pharma units which are located in and
around Baddi, Paonta Saahib, Uttaranchal & other tax exempted zones.
The unit has been already operationalised. We expect to expand this
unit also to global scale with an eye on the highly lucrative exports
As a part of our highly successful innovative diversification strategy,
your company has emerged as one of the leading global players in
phytochemicals & herbal products for Menthol Crystals, Flakes and
various derivatives. Within a very short time in this financial year
and in the next financial year you will appreciate extremely good and
robust contributions from this very important and critical sector,
which in a way is also related to pharmaceuticals. Your company is
enhancing the capacities of phyto-chemicals to global levels which will
contribute significantly to both the top and bottomline of the company
in the comingyears.
I take this opportunity to record my gratitude and appreciate
tremendous work put in by one & all of your company right from the
worker to the top management for their dedication and highly value
added contributions which has collectively led to this robust
performance of your company. I am confident that all the stake- holders
of the company will continue to register even better performance in the
forthcoming eventful year 2007-08 when we can come back to you with
even better performance than this financial year.
I also take this opportunity to thank all other strategic stake-
holders like the financial institutions, investors, our bankers and
others without whose help and continued support we would not be able to
do what we have done. I am absolutely reassured and confident that we
will not only continue to get this support from them but even exceed
your expectations so as to enable the company to continue to perform