"Alembic is attractively placed to deliver robust and sustainable growth due toits proactive investments in research and business."
After five decades of focusing on the domestic market Alembic Pharmaceuticals Limitedexpressed its intent to market products in regulated markets across the globe in 2007.
As it happens with most companies intending to make this leap the first few years werespent in building capabilities.
Over the past three years Alembic put this intent into action via a number of decisiveinitiatives across people products plants and processes. Alembic is building newcapabilities and investing in R&D projects with better risk-return profiles. Our USmarketing engine is expected to improve our consumer engagement capabilities and creategreater value.
Alembic has selected to go the extra mile even in its domestic business.
The Company has realigned processes enhanced productivity strengthened fiscaldiscipline and reduced its excessive dependence on the acute drugs segment by forayinginto the faster-growing niche lifestyle drugs segment. The result of these initiatives isthat Alembic's large domestic business has outpaced the overall market growth.
I am pleased to state that these initiatives translated into a robust performanceduring 2015-16 marked by record revenues and profits being earned.
Since the shareholders would be keen to know what lies in store I will provide anoverview across four key areas.
Research: Alembic employs 500 research professionals across its Vadodara andHyderabad facilities. In 2015-16 Alembic invested H346 crore - 11% of the annual revenues- in research which is among the ten largest made by an Indian pharmaceutical company. Ibelieve that this investment will broaden our pipeline fortify customer relationships andconsolidate our US presence.
Manufacturing: There are a number of opportunities for Alembic to address in theinternational markets. Alembic's objective is to grow in verticals where it does notcurrently have a presence (dermatology injectables and oncology). This will require largeinvestments from the Company over the next five years and once complete will translateinto significant growth. Alembic is favourably placed on account of its low gearingmaking it possible for it to mobilise external funds at low costs and strengthensustainability.
Branded Formulation: Alembic will continue to grow its domestic branded businessthrough its 17 divisions. We are well poised to capitalise on the sweeping transformationstaking place across the country - higher disposable incomes increasing healthcareawareness and a growing willingness to spend on quality medical interventions.
International Formulation: Fiscal 2015-16 was a pivotal year for the InternationalFormulation business marked by the opening of the US marketing office.
This will enable Alembic to reach out to customers directly and spread the Alembicbrand in the US. We received licences from the US regulatory authorities of the stateswhere we intend to establish our presence. We recruited a experienced team of marketingand sales professionals to roll out our US operations.
Alembic is attempting to plug unmet demand-supply gaps trying to capitalise availableopportunities.
This combination of initiatives across research manufacturing domestic andinternational spaces has placed Alembic attractively to deliver robust and sustainablegrowth in the years ahead.
Chairman & CEO