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Alembic Ltd.

BSE: 506235 Sector: Health care
NSE: ALEMBICLTD ISIN Code: INE426A01027
BSE LIVE 15:40 | 09 Dec 36.25 -0.20
(-0.55%)
OPEN

36.25

HIGH

36.55

LOW

36.05

NSE LIVE 15:57 | 09 Dec 36.20 -0.20
(-0.55%)
OPEN

36.50

HIGH

36.70

LOW

36.10

OPEN 36.25
PREVIOUS CLOSE 36.45
VOLUME 25963
52-Week high 52.25
52-Week low 32.00
P/E 35.19
Mkt Cap.(Rs cr) 968.06
Buy Price 36.30
Buy Qty 108.00
Sell Price 0.00
Sell Qty 0.00
OPEN 36.25
CLOSE 36.45
VOLUME 25963
52-Week high 52.25
52-Week low 32.00
P/E 35.19
Mkt Cap.(Rs cr) 968.06
Buy Price 36.30
Buy Qty 108.00
Sell Price 0.00
Sell Qty 0.00

Alembic Ltd. (ALEMBICLTD) - Chairman Speech

Company chairman speech

ALEMBIC LIMITED ANNUAL REPORT 2008-2009 CHAIRMAN'S REPORT Dear Shareholders, The financial storm that swept across one side of our world impacted businesses across the globe. The pharmaceutical sector, though a relative out-performer in comparison to the overall economy, saw buoyant forecasts of global pharma sales being moderated. Growth of the Indian pharma market too was a shade rationalised. It was also a checkered year for Alembic. While some of the strategies adopted and paths charted in previous years started yielding handsome results, others needed course correction. An impressive 44% growth in our International Business was dampened by a 7.3% de-growth in our domestic formulations business. We recorded a total of Rs. 1,133.7 Crores in revenues, a 10.4% growth over previous year's revenue of Rs. 1,027 Crores. A result we are not too delighted about, but are aware that it is a short term consequence for the long term benefit that will accrue from the restructuring exercise undertaken in our domestic formulations business. Also responsible for this poor performance were uncharacteristic forex losses due to the unprecedented international currency imbalances which manifested in the aftermath of the global financial crisis. Forex losses were a bane of many an Indian company and Alembic too was saddled with its fair share. A strong proponent of transparency and good corporate governance, Alembic decided to adhere to fair value accounting and report on a mark-to-market basis even though the National Advisory Committee on Accounting Standard (NACAS), postponed the implementation of Accounting Standard 11 (AS 11) to 2011 allowing organisations to report as per historic costs. We have fully provided for mark-to-market exchange losses on long term foreign currency loans and on forward sale of US Dollars. We have also made provisions for diminution in investment to the tune of Rs. 7.52 Crores with respect to a US company namely Xechem Corporation. The forex losses and the initial negative impact of restructuring are both extraneous events and we at Alembic have implemented corrective action on both fronts to keep them such. In the coming fiscal 2009-2010 the benefits of the restructuring will begin to kick in. We are on course to capitalise on the significant opportunity that exists for our newly focused product portfolio in the domestic formulations market, drive more costs out of the business and secure sustained profitability. New products provide additional momentum to growth and during this fiscal Alembic launched 34 new products across various therapeutic segments. Acute therapy products market contributes over 75% to the Indian pharma market by revenue. However there has been a perceptible increase in revenues from the chronic ailments segment and it is growing at almost double the rate of the acute segment. Amongst the largest therapeutic segments, anti-diabetic and CV drugs have demonstrated the most aggressive growth. The 24 lifestyle therapeutic brands which we included last year in the cardiovascular, diabetological and gynaecological segments have handsomely enhanced their contributions to the total sales. Diabetology, cardiology and gynaecology chalked up a 64%, 43% and 48% growth in percentage contribution to this revenue stream, respectively. Chronic therapy will continue to be a key growth segment for Alembic's domestic formulations business in the coming years. Our International Business posted significant gains in every market in which we participate. Powered by our collaborative approach, sales in regulated markets escalated 71%. Partnerships with international generics players provided us deeper access to markets and helped sharpen our competitive position in regulated markets. As regulated markets look to increase generics usage in their healthcare system as a means to counter massive healthcare budget deficits, Alembic is advantageously poised to grow its footprint in these markets. R&D is where we seed and nurture new growth platforms and this year too we continued to invest in it. Alembic is fast evolving towards a business model that is focused on deep- rooting our domestic presence and simultaneously leveraging high-value mature regulated markets along with high growth emerging markets. Our record of delivering consistent results to our shareholders for over a century speaks of our ability to adapt, execute and optimise the many opportunities that our business mix provides. Alembic today is a well balanced, tightly managed, globally competitive organisation and will continue to profitably serve all stakeholders including patients, healthcare professionals, employees, business associates and shareholders. Yours Sincerely, Chirayu R. Amin Vadodara: 8th May, 2009.

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