I take this opportunity to share with you the 54th Annual Report of your Company.
Your Company continues to be an active contributor and participant in the growth of theIndian Pharma industry over the past many decades. The Company has a sound history ofstable manufacturing and marketing operations with ethical values and has always stood byits mantra of "Quality and Reliability".
The external regulatory environment for doing business in the US market continues topose various challenges; one being the stringent cGMP standards. I am extremely happy toinform you all that during the financial year 2016-2017 your Company's plants atGhaziabad (Formulation) and Goa (Formulation) have undergone successful inspections by theUSFDA. Our plants continue to service the US market with the highest level of complianceto exacting standards and good delivery record.
US formulation business has been the driver for improvement in our Internationalbusiness. Unichem's USA subsidiary continues to report robust growth. Underpinning thisgrowth is the substantial expansion in the Company's Goa Formulation capacity regulatoryfilings and R&D investment.
During the year under review your Company has filed its first First to File (FTF)Abbreviated New Drug Application (ANDA) and has also filed 5 ANDAs taking the total ANDAsto 39. Our focus on R&D remains critical to trigger further ANDA and DMF filings. YourCompany continues to make significant investments in its State-of-the-Art R&D centreand various R&D projects. Going forward the focus remains on expansion of theCompany's product portfolio and increasing market penetration in both domestic andinternational markets.
As you are aware your Company is continuing to invest in plant expansion modernizationand R&D facilities through its judicious Capex programme. Your Company has spent overRs. 140 crores in financial year 2016-2017 which was funded through our internalaccruals. We look forward to continuing our Capex spend in order to modernize and expandour plants.
In the Domestic Formulations business during the financial year 2016-2017 we haveseen consistent improvement in performance; having reported a growth of 14.50% as againstIndian Pharma Market's (IPM) growth of 10.30%.
I am really happy to inform you that we have taken the Unienzyme brand to OTX market asa major market diversification move. This is our first ever venture in the OTX segment. Weremain confident that with this initiative the true value of the brand will be unlockedin the near future. We also hope to introduce more brands in the OTX market in the mediumterm. Growth in the Chronic segment was driven by growth in CNS and CVS therapies. We alsosaw a robust growth in our diabetic franchise. Our Acute business continued its strongmomentum witnessed last year.
Going forward your Company will remain focused on improving its market share in keytherapeutic areas improving productivity and also launch newer brands in the market. YourCompany will continue to invest in growing therapies by way of in-licensing deals and alsoby creating its own brands. The expansion as you can gauge is across the board and a clearjustification of our commitment to take your Company to the next level of growth.
Your Company's Consolidated Sales/Income from Operations (Gross) stood at Rs.153549.61 lacs as compared to Rs. 134828.00 lacs in the previous year reflecting ahealthy growth of ~ 13.90%. Total Comprehensive Income stood at Rs. 10834.36 lacs asagainst Rs. 10765.85 lacs in the previous year. Margins have been somewhat under pressureas we step up our strategic investments to secure a better future.
Your Company has continued its practice of rewarding its Shareholders with Dividend.This year the final dividend proposed is Rs. 3/- (150%) per share of Rs. 2/- each whichshall be paid if approved by Shareholders at the 54th Annual General Meeting.
I am thankful to all our Stakeholders and also our esteemed Board members for theirguidance and support. I am grateful to our Customers Business Associates Banks and theMedical Fraternity who have reposed their faith in us. I would also like to extend myappreciation to our Employees for their unparalleled energy and commitment.
Dr. Prakash A. Mody
Chairman & Managing Director
(DIN No.: 00001285)
May 30 2017