The Financial Year 2015-16 was an exceptional year for Granules India as we tookseveral strides to enable us to grow in newer avenues while strengthening our core. Inthe past three decades we had built a strong foundation and now we are steadilyprogressing towards achieving greater scales of success based on our core competencies.
Growth continues to be our driving force as we march ahead with our values and guidingprinciples. We are pleased with our numbers where we registered a gentle 11% toplinegrowth over the previous year. Our consolidated revenues stood at RS. 14312 million inFY16 against RS. 12937 million in FY15. We have once again demonstrated excellence inour operational efficiencies by exhibiting an EBIDTA growth by 34% to H 2844 million asagainst H 2130 million in the previous year. Our PAT grew by 30% to RS. 1185 millionagainst H909 million in FY15. Vertical integration in the entire value chain has enabledus to improve on a continuous basis on various parameters. Our shift in product mix alsocomplements our endeavor to continue to expand on our margin profiles. Our EBIDTA marginimproved by 3.4% and PAT margin improved by 1.3% compared to previous financial year. Interms of geographic concentration regulated markets of the U.S. Canada and Europe puttogether contributed 60% of the sales in the financial year 2016. Our core five moleculesput together have contributed around 87% of the sales. Going ahead we will continue toreinforce our energy on making ourselves more robust by enhancing our capacitiesimproving our efficiencies adding new products moving up the value chain and mostimportantly offering better services to our customers.
The business model of Granules is evolving to be future ready. Today the business isbucketed into three areas. First and foremost is our integrated Core Businessmodel which has created a leadership position for the Company with regards to the salesof several off-patent volume-based drugs. We have a strong presence in first line ofdefense products such as Paracetamol Ibuprofen and Metformin. To supplement theCore Business on a long term basis we have also ventured into manufacturing and marketingof private label OTC products to the retail chains in the US market. Secondly we areramping up our New Business in line with our strategic intent of enhancing theproduct portfolio. We have acquired Auctus Pharma which has given us access to themulti-product manufacturing facility in Vizag. We have set up a dedicated API R&Dcenter in Hyderabad to focus on the development of complex products with limitedcompetitors. We also bought the Virginia facility in the US to focus on formulationR&D. Third we entered into the CRAMS Business with an equal jointventure with Ajinomoto OmniChem - our partner with nearly 40 years of experience inCRAMS. We began the commercial production from September 2015.
With this in hindsight let me now share some of the key business highlights during thelast financial year. To de-bottleneck capacity constraint at API level we have increasedthe Paracetamol capacity at our Bonthapally plant by 3000 metric tons per annum. We havealso started working towards enhancing our Metformin and Guaifenesin API capacity by 7000tons per annum and 2000 tons per annum to further solidify our global position in thesemolecules. On the PFI front we added 4000 tons capacity last year and with this newaddition our total capacity is now 18400 tons per annum. Presently we have sufficientcapacity in FDs.
In the month of September 2015 the US FDA had approved Ibuprofen ANDA filed by us for400 mg 600 mg and 800 mg tablets. This has further strengthened our Core Business andenabled us to increase our product offerings to our customers in the United States. Wehave started sales of this product and expect the sales to ramp up steadily in future.
We are reinforcing our R&D backbone through prudent investments with an objectiveto ensure sustainable pipeline of value accretive future opportunities. Our research anddevelopment initiatives are strongly determined by market demand and driven bytechnological progress. Our R&D team comprising 150 people continuously focuses onsupporting the growth strategy of the organization by introducing new generic productswith high value and complexity striving for constant process improvement and attainingmanufacturing cost competence for existing as well as new molecules.
The renovation of our Virginia facility is complete and R&D work has already begun.Presently this facility is focusing on formulation development. We expect to begin thefiling of ANDAs from this facility from the financial year 2016-17.
In conclusion I would like to reiterate that our team has always played a crucial rolein our success over the years. We possess a talented workforce our partners in progressand empowering them while creating space for amicable work culture nurtures their truepotential. We continue to strengthen our talent base and encourage them to thinkinnovative and embrace challenges to grow both laterally and vertically. Our leadershipteam has been an important catalyst in this journey and has helped us align the goals ofour employees with those of the organization.
Looking into the future we expect to overcome the short-term challenges and deliverlong-term sustainable growth. I would like to thank all the stakeholders for theircontinued support to the Company and for helping us perform year after year. I also thankevery member of the Granules family and believe that an exciting and successful futurelies ahead of us.
Krishna Prasad Chigurupati
Chairman & Managing Director