I welcome you all to the 22nd Annual General Meeting of the Company.
At Bafna our business objectives have always been aligned with the evolving needs ofcustomers. When we are progressing on many fronts consolidation of our competencies iscritical to sustain momentum and growth. Multiple corporate initiatives helped us elevatethe scale and scope of business.
The overall sale during the consolidation phase was Rs. 66.10 Crores as compared toRs.85.31 Crores in the previous year. Howeverthe re-focus in strategy resulted in declinein EBIDTA margins which is negative at 6.28 % as compared to a positive of 4.75% in theprevious year. Your company is shifting its majority of focus on exports because of theproduct approvals obtained which was filed during the previous years and approval incountries where registrations are very tough.
The company has filed dossiers in various countries and approvals for these productsare expected in the ensuing year. Consequently the company is hopeful of growing exportsand launching products across geographies.
The Indian domestic market segment continues to face significant challengesparticularly with respect to the realization cycle and while we will maintain our presencein the domestic market the operations will be scaled down.
I would like to share with you a synopsis of the revised strategy:
a. Focus on increasing revenue from contract manufacturing in Regulated markets.
b. Focus on FR8tD for launching new products.
c. Expand presence in the UK and other European countries.
d. Increase number of niche products in SAARC countries in order to increase marketshare.
e. Further increase revenue in existing markets by introducing new products. Africa andCIS countries would be our immediate target markets.
In this context I would like to inform you that during FY17 your company gotregistrations for 38 products: (i) 16 in Sri Lanka (ii) 2 in Nepal (iii) 10 inNigeria (iv) 1 in Tajikistan (v) 1 in Peru (vi) 4 in Ukraine (viii) 1 in Ethiopia and (ix)3 in Ghana. As on date we have over 188 Product registrations and 108 Productapplications for approval across the globe.
The Company is witnessing a better acceptance of its products across multiple countriesin its target markets and the increased order book is a reflection of the same.
Your Company is putting in significant efforts and resources in upgrading ourmanufacturing facilities to ensure that its products meet the ever growing and evolvingglobal standards. The renewal with MHRA is one of the outcomes of these efforts.
At the close I would like to thank the entire team of Bafna for their continuedefforts dedication and commitment. We are fortunate to have long term focusedshareholders and would like to express our gratitude for their trust and confidence in us.Warm Regards
Bafna Mahaveer Chand
Chairman 8i Managing Director