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Venus Remedies Chairman's Speech > Engineering - Heavy > Chairman's Speech from Venus Remedies - BSE: 526953, NSE: VENUSREM

Venus Remedies

BSE: 526953|NSE: VENUSREM|ISIN: INE411B01019|SECTOR: Pharmaceuticals
Nov 20, 16:00
0.1 (0.42%)
Nov 20, 15:49
-1 (-4.26%)
VOLUME 5,691
Mar 14
Chairman's Speech (Venus Remedies) Year : Mar '16

Dear shareholders,

By convention, we are expected to state our numerical growth at the outset. I decided to explain where our optimism is coming from instead.

There is one word for it, India.

A country. A market. A theme.

That we expect will continue to drive our numbers across the foreseeable future.

Betting on India

Why then are we betting bigger on India when we have grown many fold in the last 10 years? Why are we betting bigger on India when the country is already the world''s 3rd largest economy (based on purchasing power parity)?

For important reasons.

Indians are increasing: In the decade ending 2011, India added about 18.14 crore people. The addition of 1.8 crore population every year will end up India being the most populated country in the world. According to the United Nations, India is set to replace China as the most populated country by 2022.

Indians are earning more: The per capita net national income in 201516 grew by 7.3% to Rs 93,231 from Rs 86,879 in 2014-15. This trend is expected to continue as India''s GDP growth is estimated to grow by more than 7% over the medium term.

Low per capita spend: India''s spend on drugs is amongst the lowest compared to top 15 pharma markets. The per capita spend has been around US64 pa (between 2010 and 2014) as per World Bank. As the per capita income continues to grow led by good economic growth, disposable incomes are likely to go up and the per capita spend on drugs is set to increase.

Increasing insurance coverage: In

India, unlike US/EU, the spending of drugs is largely out of pocket, which accounts for around 90% of payments. In the Planning Commission''s draft Twelve Five-Year Plan, the vision laid out for India''s healthcare sector is universal health coverage. This would be achieved primarily through extensive insurance coverage, rising from 10% currently to 90%, partly through government hospitals or government payments.

Higher penetration: Around 2/3rd of India''s population lives in rural areas, but rural markets contribute <20% of Indian Pharmaceutical sales. Moreover, the split of hospitals and doctors between rural and urban is skewed towards urban areas. With government''s intention of universal health coverage, there is an immense opportunity for expansion of the Indian Pharmaceutical market.

Our strategy

Having painstakingly created a basket of 25 niche products, we are focused on monetizing these assets through knowledge-based awareness among medical specialists and opinion makers. This we believe would lead to sustained prescription by medical experts.

In addition, we introduced the Passion Premier League (PPL), wherein 12 teams are created to promote a select set of product with targets to be achieved by the end of the year. This initiative fosters creativity in developing innovative marketing strategies to achieve the set target - nurturing healthy competition in the marketing unit. And we will continue to introduce such other initiatives that provide for individual development and organizational growth.

Message to shareholders

Having set a robust foundation comprising world-class infrastructure, cutting-edge technology, niche products and an energetic team, we are all set to make our second coming more productive and profitability. And enhance shareholder value.

Pawan Chaudhry

Chairman and Managing Director

Source : Dion Global Solutions Limited
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