Your company completes 50 years since it went public. I am happy to
address you on this occasion. We take this opportunity to remember our
founder Late Shri Amrut Mody who sowed the seeds for this tree to
Your company recorded a turnover of over Rs. 1,000 Crores in this year,
reflecting overall growth of 25.15%.
With the changing circumstances particularly in the domestic market
because of the Drug Price Control Order (DPCO) 2013 it is worth noting
that the government has brought 348 medicines under the National List
of Essential Medicines (NLEM) under price control which is based on
market prices and not cost plus. It is heartening to see that finally
the method of price fixation has been changed based on market forces.
A few products of your company would attract the provision of the new
price control and we would be taking effective steps to reduce the
impact of the same. We have restructured our domestic business and
while we would continue focusing on the growth of our chronic therapies
we shall also endeavor to increase our share in the acute therapies so
that our product basket becomes more balanced and complete.
The initiatives taken last year on portfolio prioritization and sales
force alignment are strategically yielding positive results and we hope
to see this trend continue in the future.
I would like to share with you that for a strong international
formulation business it is important to have a back-up of our own APIs.
This effort of backward integration in most of our formulations is
ongoing and we are engaged in the exercise of expanding and augmenting
our API facilities to meet the demand in the market. We have signed an
agreement with Mylan Laboratories Limited for sale of our SEZ facility
at Indore for a consideration of Rs. 160.50 Crores. The formalities are
being processed and we would be able to complete the transaction
shortly. The proceeds of the same will be utilized for the expansion
of our existing facilities in Goa as well as exploring opportunities of
acquiring API facilities for our needs.
Our UK subsidiary Niche Generics Limited recorded a growth in revenues
and has also reported a net profit. We are confident that finally we
have turned the corner. Our US subsidiary is holding good promise and
revenues in USA and North America market grew quite substantially. We
are continuously adding to our list of filings so that we have a large
basket to offer to our US customers.
We have successfully shifted our Chemical and Formulation Development
(PTD) Research Centres from Jogeshwari to the new research facility
called Centre of Excellence [CoE] in Goa.
All our R&D activities such as API chemical synthesis, Formulation
Dosage Form development and Analytical Research are housed under one
roof. This would enable us to co- ordinate our R&D activities more
Our stake holders such as customers, business associates and
shareholders have reposed their faith in us. I am grateful to them for
their continued support and confidence in the management.
I would also like to record my sincere appreciation for the commitment
of our employees for their contribution.
I remain confident that our well balanced strategy and determined
implementation in the challenging macro environment will yield
consistent high value for all our stake holders.
Dr. Prakash A Mody
Chairman & Managing Director