My dear shareowners,
One of the great challenges of business is adapting to change. Our
approach at Wockhardt has been to welcome change and see it as an
opportunity for growth. Last year I spoke about our new journey for
growth and the determination to succeed.
That journey has involved looking with fresh eyes at our business and
the way we do things. It is about new ways of thinking.
We are making a pradigm shift - replacing the old and embracing the
new. Innovation is the heartbeat of Wockhardt. It goes beyond
innovative product development and includes the development of
innovative new business models. This is how we meet the changing needs
and expectations of the customers we serve. This change in mindset has
already borne fruit as our fnancial performance shows.
During the year we achieved several important fnancial and operational
milestones. Our total consolidated sales exceeded Rs.37.5 billion (US1
million) Operating profts (EBIDTA) reached Rs.9.1 billion (US4
million), which is, 24.2 per cent of sales. And this, I say with great
pride, is a true refection of the diligence, hard work and dedication
put in by more than 6,000 Wockhardt associates globally to achieve
these milestones.
New Wockhardt – a business transformed
We are building a new Wockhardt. Our achievements in the past year are
a measure of the way in which we have transformed the business. Our
organisation is evolving as a value-based business to keep pace with
the new competitive and economic realities of the world. It is a world
in which consumers demand affordable, environmentally friendly products
and services.
The late management guru C K Prahalad, a former strategic advisor to
Wockhardt, was a visonary man who wrote, ''Learning to do more with less
for more people, should be the innovator''s dream''.
At Wockhardt we believe that thought can be more than a dream. We are
making it a reality. Our strategic vision during the past year has been
''more and more with less and less''. To meet the demands of the future,
Wockhardt is fnding new ways to deliver more with the resources at our
disposal. To achieve this we have focused on new ways of thinking,
fnding new ways to approach our business, innovating and radically
restructuring our cost base. We are seeking opportunities that create
long-term value. And these changes are not just one offs. They are part
of an on-going and sustainable transformation of the business. We have
global reach, a
world-class research and development capabilities and a great team of
managers who have proven themselves as value creators.
New world – strategic regional focus
Wockhardt has come a long way in the past decade since we began our
international expansion. Our business is well balanced across three
regions – India, Europe and the US. We are poised to capture new
opportunities in the two key geographies of the US and India. In the
past year the contribution of the US business to our overall sales has
leapt from 20 per cent to 29 per cent. Much is made of India''s growth
and the opportunity to deliver affordable products to new segments
where needs have been previously unmet. We are innovating to meet that
new demand.
Global structural changes
Fundamental changes have shaken the world economy in the past few
years. Old orders have been turned upside down. Macro economic factors
are leading to structural changes in the global healthcare industry.
One result is that customers, including healthcare providers in more
developed parts of the world, are also demanding greater value for
money.
Pipeline of potential
New ways of thinking will prepare us for the next phase of our journey
of growth. We are setting new and challenging targets for ourselves.
During the past year we received 15 ANDA/MAA approvals in the US and
Europe. We have 41 new products in the pipeline. Wockhardt''s business
is robust and the coming decade will offer even greater potential than
the last.
Committed to communities
While we are ambitious, we do understand that the role of business is
not merely to make proft. We have a duty to integrate ourselves into
society and the communities and make this world a better place to live
in. Through Wockhardt Hospitals and Wockhardt Foundation, we were able
to touch nearly 800,000 lives through our various CSR medical
programmes. In our inaugural CSR Thought Leadership Conclave, we had
the rare honour of two Nobel Peace Laureates, His Holiness, The Dalai
Lama and Prof. Muhammad Yunus shared their thoughts on the joy of
giving and social business enterprise. Their insights are inspiring the
new Wockhardt.
New thinking will lead us to new horizons.
Dr. Habil Khorakiwala
Chairman
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