HIRAN ORGOCHEM LIMITED
ANNUAL REPORT 2009-2010
2009-10 was a transformational year for your Company. We moved decisively
to strengthen and expand our core businesses. We made excellent progress
generating solid financial results, advancing our product development
pipeline and strengthening our market presence.
For the year ended March 31, 2010, your Company's revenues increased
marginally to Rs 2150 mn, a growth of 17% over the previous year. However
there has been a robust increase in our bottomline. From a loss of Rs 174
mn in the previous fiscal we have reported a profit of Rs 74 mn. The
principal reason for this turnaround has been our ability to operate at
more than 100% capacity. It's our goal at Hiran to position the Company for
accelerated growth in revenues and earnings.
The global generic industry is expected to grow at a faster pace at CAGR of
9% over FY 08-13 as compared to the overall pharmaceutical market which is
slated to grow at a CAGR of 2-3% over FY 08-13. Currently valued at USD 87
bn, the global generic market is expected to touch USD 135 bn by 2013.
Factors triggering this growth include drugs worth USD 235 bn going off
patent over FY 10-15, tripling of elderly population (60+ population -700
mn in 2005 would reach 1900 mn by 2050), spiraling health care expenses
across the globe and favourable government policies.
This was the broad overview about the industry that your Company operates
in and now let me give you macro picture about the operations of your
The biggest highlight for the year under review is establishing a new
entity Act Gen Pharma Pvt. Ltd. in collaboration with Procycon Lifescienes
Pvt. Ltd. With this newly formed entity our combined manufacturing capacity
stands at nearly 2000 MT p.a. Involving a capex of Rs 300 mn and a 49%
stake this newly formed entity your Company is equipped to cater to the
increasing demand for its products and mark its foray into the high margin
regulated markets after receiving the US FDA approval. Further, your
Company is not only looking to expand but is also taking steps to maxmise
operational efficiencies due to which our capacities were operational at
more than 100% in the year under review.
RESEARCH AND DEVELOPMENT:
Research and development is a powerful engine which serves as a tool to
enrich your Company's product pipeline, enter the developed markets and to
fortify its position as a fast-growing pharmaceutical company. Hiran views
its R&D capabilities as a vital component of the business strategy which
will provide it with a sustainable, long-term competitive advantage.
Quality being the supreme objective, your Company continuously keeps
abreast of the latest information and technological developments both in
India and abroad. Your Company has evolved a quality policy, and this has
helped us grow manifolds in this business since our inception. Further, we
also ensure our manufacturing capacities incorporate best practices and
adhere to stringent regulatory compliances and quality norms.
REAL ESTATE INVESTMENT:
To garner attractive returns your Company had made an investment in the
fast growing real estate sector in the year 2006-07. Your Company has
acquired land in Coimbatore and has plans to develop an integrated township
which would be developed in 3 phases.
A BRIGHT FUTURE AHEAD:
Clearly, we believe that we are entering an exciting new phase of
development. We will continue to make the necessary investments in R&D to
pursue our long term strategy of expanding our product portfolio and
strengthening our market presence. We also plan to raise Rs 500 mn through
a GDR issue in the next fiscal which would be employed for capital
expenditure, meeting long term working capital requirements and setting up
Our strong financial foundation, a very promising pipeline of products and
unique technology platforms will be the key factor driving growth.
ON A PARTING NOTE:
We have an excellent team of employee's committed to achieving the
Company's goals in the coming years. I look forward to reporting on our
progress towards those goals in months and years ahead.
Chairman and Managing Director