Message from the Chairman
I am pleased to present you with the 56th Annual Report of your Company.
The financial year 2018-19 was the first complete year of the “New” Unichem with the world as its market. Your Company is today set to reap the rewards of over six decades of consistent commitment to the basic values of integrity, quality and reliability in its thrust to develop a global market.
In conducting our business, we are guided by the famous quote widely attributed to Aristotle - “We are what we repeatedly do. Excellence, then, is not an act, but a habit.”
It is this approach of constantly striving for excellence that has led to your Company being known for “Quality” and “Reliability” the world over. Unichem today is known globally for its excellence in drug manufacturing, both in the areas of APIs (Active Pharmaceutical Ingredients) and Formulations. The dedication to excellence will ensure the long-term success of your Company in the global pharma market.
This intrinsic philosophy saw your Company’s facilities successfully clearing multiple inspections by regulatory bodies from across the globe during the year under review. These included successful completion of USFDA (US Food and Drug Administration) inspections of the Formulation and API facilities at Ghaziabad, Roha and Pithampur. Your Company also received an Establishment Inspection Report (EIR) for its Jogeshwari office (Mumbai) for post marketing adverse drug experience inspection. I am confident that our drive for quality, reliability and excellence will ensure that we continue to not just meet but surpass the stringent cGMP (Current Good Manufacturing Practice) standards required for doing business in the regulated markets.
Post divestment of the Domestic Formulation Business, your Company has continued to focus its energies in the global regulated markets, which is evident from the robust performance it has delivered in the USA formulation business with a significant improvement over the past years.
Standalone Sales / Income from Operations (Gross) increased to Rs,96,773.89 lakhs from Rs,66,646.97 lakhs in the previous year, registering a growth of 45.20%. Consolidated Sales/Income from Operations (Gross) stood at Rs,1,18,004.68 lakhs as compared to Rs,81,498.48 lakhs (continuing operations) in the previous year, registering an increase of 44.80%.
During the year under review; your Company received ANDA (Abbreviated New Drug Application) approvals from the USFDA for Montelukast Chewable Tablets, Tadalafil Tablets, Pramipexole Dihydrochloride Tablets, Allopurinol Tablets and Valsartan Tablets. Your Company also filed 14 ANDAs and 1 PAS (Prior Approval Supplement) for new formulations. The ANDA submissions include 1 Para IV filing. Your Company also submitted 12 USDMFs (US Drug Master Files), 1 CEP (Certification of Suitability of European Pharmacopoeia) and 2 Brazil dossiers.
The above is a fitting testament to your Company’s strategy of investing in R&D, with efforts led by our R&D Centre of Excellence in Goa that focuses on API Process Research, API Process Research Analytics, Formulation Development, Formulation Development Analytics, Clinical Research and Intellectual Property Management.
The year also saw implementation of your Company’s capital expenditure program across all manufacturing units, which continued to be funded through internal accruals with significant emphasis on modernization and expansion of capacity. This would bolster our efforts to increase business in the global regulated markets we serve.
To meet the demands of incremental growth, your Company has made strategic investments in two Hyderabad based companies, namely Optimus Drugs Private Limited and Optrix Laboratories Private Limited, engaged in the business of researching, developing, manufacturing, marketing and distribution of API and intermediates. The key objective of this investment is to gain access to their USFDA approved manufacturing facilities for API and intermediates. This will provide the Company with additional capacity to meet its immediate requirements and to fulfil its export orders.
Considering the continued good performance, it gives me great pleasure to inform you that the Board of Directors of your Company have recommended a dividend of Rs,4/- per share (200%). The dividend shall be paid if approved by the Shareholders at the 56th Annual General Meeting.
I take this opportunity to extend my gratitude to all our stakeholders and our esteemed Board members for their guidance and support. I am also thankful to our customers, business associates, banks and financial institutions who continue to encourage us by reposing their faith and trust in us. Of course, all of this would not be possible without our employees who share our values and are earnestly contributing to Unichem’s transformation into a global pharma player.
I remain optimistic about the future and look forward to your support on this continued transformational journey of the “New” Unichem.
Dr. Prakash A. Mody
Chairman & Managing Director
May 24, 2019