I welcome you all to the 21st Annual General Meeting of the Company.
With immense pleasure I inform you that we have successfully completed the renewalaudit by MHRA during the year. The high production standards and quality processesfollowed & maintained by your Company ensured this renewal. We could not have achievedthis without the support of the Companys employees and the guidance from our
Board of Directors. I thank all of them and look forward to their continued support.
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 year 2015-16 was a year of consolidation post the sale of our branded businessincluding Raricap to M/s. Strides Shasun Ltd. In my last communication to you I hadspoken at length on the Joint Venture with M/s. Strides Heath Care Private Limited asubsidiary of M/s. Strides Shasun Ltd Bangalore which continues to position us as one ofthe significant value creators in the industry.
The overall sale during the consolidation phase was Rs.85.31 Crores as compared toRs.101.4 Crores in the previous year. However the re-focus in strategy resulted indriving better EBIDTA margins which was at 4.75% as compared to a negative of 17.08% inthe previous year.
As a result of transfer of domestic branded business we have managed to substantiallyreduce bank borrowings. We are gradually shifting our focus on global markets for ourformulations. The company has filed dossiers in various countries and approvals for theseproducts are expected in the ensuing year. Consequently the company is hopeful of growingexports and 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 FR&D 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 FY16 your company gotregistrations for 38 products: (i) 16 in Sri Lanka (ii) 2 in Nepal (iii) 10 in Nigeria(iv) 1 in Tajikistan (v) 1 in Peru (vi) 4 in Ukraine (viii) 1 in Ethiopia and (ix) 3 inGhana. As on date we have over 188 Product registrations and 108 Product applications forapproval 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.
Bafna Mahaveer Chand
Chairman & Managing Director