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Unichem Laboratories Ltd.

BSE: 506690 | NSE: UNICHEMLAB |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE351A01035 | SECTOR: Pharmaceuticals

BSE Live

Aug 04, 12:21
310.00 -0.50 (-0.16%)
Volume
AVERAGE VOLUME
5-Day
9,077
10-Day
6,645
30-Day
6,668
33,643
  • Prev. Close

    310.50

  • Open Price

    307.20

  • Bid Price (Qty.)

    310.00 (743)

  • Offer Price (Qty.)

    310.25 (161)

NSE Live

Aug 04, 12:21
309.85 -0.45 (-0.15%)
Volume
AVERAGE VOLUME
5-Day
85,228
10-Day
66,724
30-Day
57,772
57,588
  • Prev. Close

    310.30

  • Open Price

    310.00

  • Bid Price (Qty.)

    309.85 (20)

  • Offer Price (Qty.)

    309.95 (542)

Annual Report

For Year :
2019 2017 2016 2015 2014 2013 2011 2010 2009

Chairman's Speech

Indian Pharmaceutical Industry is undergoing rapid transformation in terms of customers needs, regulatory standards and growth drivers. Among these changes, one of the most important has been the increasing pressure from customers, governments and society to deliver greater value. Ill summarize our performance in last financial year and talk about the four imperatives that are driving the actions we are taking to address the challenges we face: . Making API business profitable . Growing domestic business higher than the market growth . Turning around of subsidiary companies . Improving operational efficiencies I am optimistic about Unichems future because I believe we will create value in the medium to long term by leveraging products that are innovative and science-driven, making the right capital allocation decisions, continuing to promote a culture of confidence and trust, and earning respect from society. The financial results of last financial year is somewhat mixed in terms of turnover and net profit. The Company earned PBIDTA of Rs. 161.50 Crores as against Rs. 179.45 Crores earned in the previous financial year. Though the turnover grew by 10.8%, at Rs. 757.81 Crores, the Company earned lower profits due to higher spending on Sales & Marketing expenses, commissioning of new plants at Baddi and Sikkim and adverse product mix. Despite lower profits, the Board has recommended final dividend of 140% and taken together with interim dividend of 60%, the total dividend for the year works out to Rs. 4/- per equity share of Rs. 2/- [200%]. Indias Domestic Pharma Market offers immense potential, which is currently, valued at approximately Rs. 48,239 crores, reflecting strong growth of 15.3% for the twelve months ending March, 2011 (IMS MAT March, 2011). As per the latest report of Pricewaterhouse Coopers (PwC) - Indias Pharma Inc: Capitalising on Indias growth potential, estimates that over the next 10 years, the domestic market will grow to US$ 49 billion @ CAGR of 15%, with the potential to reach US$ 74 billion @ CAGR of 20%, if aggressive growth drivers kick in. One of the drivers behind this potential growth expectation is that Indias pharmaceutical industry has a favorable macro environment to grow in. The Indian economy has rebounded from the global economic downturn, with real gross domestic product (GDP) growth reaching 10.4% in 2010 (IMF World Economic Outlook April, 2011). Over 76% of our turnover is contributed by the Domestic formulation market where Unichem enjoys an enviable reputation built over six decades. Therefore, our focus is to consolidate our presence by expanding our product basket covering more therapeutic segments, by deeper market penetration and expanding our reach to larger number of customers. The growth potential for Unichem is enormous considering the opportunity that exists in unrepresented therapeutic segments. As communicated to you last year, the Company continued its transformation initiatives to restore momentum to its core business of domestic formulations. These included portfolio prioritization and sales force alignment to improve the coverage of the existing portfolio, and strengthening a second tier of power brands. A new division Unifem (Gynecology) was launched and we will be hiring around 150 field personnel during this year to support this division. We had launched 22 new products during last Financial Year and our efforts are on to launch more in the current Financial Year to expand our product portfolio covering various therapies. I am happy to inform that in cardiac market, Unichem jumped to 4th position this year from 6th position last year, thus adding the highest incremental value as per IMS. Unichem is the undisputed leader in ARB segment of cardiac market. We have been investing continuously in upgrading and expanding our manufacturing and research facilities at multiple locations. Our Sikkim plant, which was commissioned during the year, is now fully operational. Betalactum plant at Baddi, which underwent modernization is now functional and has been recertified by MHRA. Cephalosporin plant at Baddi is also fully ready for commercial exploitation. It is our endeavor to have this plant certified by USFDA. We have recently acquired additional land adjacent to our existing Goa Factory and planning a major expansion to enhance tablet / capsulation capacity from present 900 million to 2400 million units. The construction activities at SEZ, Pithampur is expected to get over by the end of this financial year and immediately thereafter, we will trigger for USFDA certifications. We have made significant investments in manufacturing and research facilities over the last few years catering to both domestic and international market which makes Unichem the ideal partner for collaborative business. Contractual supplies will become one of the growth areas for the Company to sweat manufacturing assets more in the coming years. With regard to our global operations, Niche Generics, our UK Subsidiary, had a difficult year and continued to make losses. There are strategies in place to turn around the operations during the current financial year. In US market we launched 5 products and the same have been received well. During last financial year, we clocked total revenues of US$ 5.3 million. With more product filings and approvals in the pipeline, the foundation for substantial ramp up in sales has been laid. Our current focus on the API business is to make reasonable profits. With US business slated for a take off, the API business support to the international business is expected to deliver desired results. In addition, new initiatives to expand customer base in new geographies should drive growth in the coming years. Our customers, business associates and shareholders have reposed their faith in us. I am grateful to them for their continued confidence in the management. I would also like to record my sincere appreciation for the commitment of our employees for their contribution. I fully recognize the complexity of the challenges we face over the next several years and are prepared to address them by focusing on four imperatives that will allow us to distinguish ourselves from others, and we will continue to create superior value for all our stakeholders. Warm Regards Dr. Prakash A. Mody Chairman & Managing Director