LETTER FROM MANAGING DIRECTOR
Warm greetings from me & Sharon Family.
It's a feeling of great pleasure to present you your company's 25 Annual Reportmonitoring the continuing Growth of SHARON for more than 15 years in row.
Financial year 2014 will be one more year to be noted as a momentous year in thehistory of SHARON. We have been exploring all the opportunities for effective deploymentof capitaland other resources to defining and executing growth strategies and drivinginnovation across various facets of our business area
Emerging as a strong assertive & sustainable global enterprise your company hasalways focused on five factors:-
1. EXPANSION; Achieving high levels of Capital Efficiency
As Managing Director of your company I feel proud to announce that your company hasinvested Rs.85 Crores for doubling the capacity of the formulation plant located atSelaqui in Uttarakhand. Anticipating good margins from formulation business based on thepast year's results and to cater to the increasing export and domestic demand. Themanagement of your company has also deployed Rs. 30 Crores in Bulk Drugs &Intermediates.
2. RESEARCH & DEVELOPMENT;
Innovations leading sustained Growth
A pharma firm's value proposition is strongly tied to its R&D capabilities whichserve as the engine for innovation and growth. At Sharon R&D is a strong valuecreator managed with vision and built into your company's DNA. Starting from routeselection in-depth analysis is undertaken swiftly throughout the process-chain to ensureQuality Cost-competitiveness Highprocess-efficiencies Safety Environmental-impact andDurability & robustness of the process. Another necessary & synergistic area offocus of your company has been in Toxicology studies this is the bulwark of safety forpharma products.
3. QUALITY MANAGEMENT;
At Sharon great stress is put on all 4 attributes of Quality - management viz.quality planning qualitycontrol quality assurance and quality improvement. The focus ofQuality management is not only on product and service quality but also the means toachieve it.
4. OPERATIONAL EXCELLENCE; through Asset Productivity Capital Effectiveness& Operations Risk Management.
Sharon invests in adequate employee strength & compensation coupled with intensivetraining.
Empowered & effective trained employees are Sharon's main assets.
Asset Productivity : We strive to optimize facilities infrastructuremanufacturing capacities by ensuring reliability of equipment process control manpowertraining and energy-optimization.
-Eg. : we have shifted from Furnace Oil to cleaner & cheaper LPG with large costsavings.
Capital Effectiveness : Efficient and swift planning of business facilitiesprojects value-improving practices has led to overall quantum increase in effectivenessof the Capital employed.
Operations & Risk Management : Management of technical & facility safetysystems occupational health environmental foot-prints effective customer-relationshipmanagement and product-stewardship in the market have mitigated the risks in most areaspermitting the company to operate effectively in a competitive market.
5. MARKET AWARENESS :
The success of any expansion in any business organization in the terms of productionor growth in market geographically is purely dependent on the agile decision making andmarket awareness of upper management. Our market & cost prediction models that formfoundation of all our expansion plans have proven correct till now and your company'sprojects have repeatedly achieved early break-even.
Further this was only possible due to early benefits that a company can enjoy only ifthey are have a high level of awareness of the market dynamics in the related Industry.
Combined these factors make a big impact on the survival and growth of any businessorganization.
The slow recovery of the global economy after a long period of recession and thelooming fear of slipping into recession again shows that there seems still some timebefore self sustaining and significant growth patterns emerges in the industry. Howeverthe Indian Pharma Industry is managing to grow well not only in the Indian context butalso in keeping global requirements apart from a few regulatory set-backs some companieshave faced from the west. In this regard your company's management has endeavoured tocreate a sustainable framework in which to thrive in the future with wider large marketsand new products. There seems no doubt that in the coming years your company will beimmensely benefitted as a result of the Expansion projects soon to reach their optimalcapacities.
I would like to express my sincere gratitude to my fellow colleagues on the board myemployees for their sincerity and hard work and thank to entire Sharon team theStakeholders Banks Creditors and all Associates for all the help and guidance tobringing your Company in successful growth and assure our Stakeholders to deliver themaximum value to their stake in future through continued relentless efforts of the Sharonteam.
| ||On Behalf of the Board |
| ||Sd/- |
|Place: Mumbai ||Savita Satish Gowda (Ms.) |
|Date: 21.11.2014 ||(Chairperson & Managing Director) |