Scaling up to expand affordable access
We hope that you have been safe and healthy through this singular and unprecedentedchallenge that humanity is faced with today. Although the demand for pharmaceuticals isthe least disrupted relative to other industries the operational challenges remainenormous. Last financial year was indeed the demonstration of our resilient businessmodel.
As we overcame the challenges we continued to achieve growth across all ourgeographies and segments.
In 2020-21 our overall revenue grew by 17% to Rs 5393 Crores.
We saw growth across all our business divisions and in particular the InternationalFormulations business (Ex-USA) and API business demonstrated solid double-digit growth.This performance was possible due to our commitment to delivering quality productsmaintaining the highest levels of compliance promoting manufacturing excellence andimproving our supply chain.
Amid the pandemic and challenges thrown open by it the global pharmaceutical industryresponded with agility. Since March 2020 the industry has been hit with debilitatingrestrictions and impediments in reaching customers and supplying drugs to India and theworld. However the pharmaceutical industry has surpassed expectations in response to thisglobal crisis supplying drugs to over 150 countries besides meeting all domestic demands.
India's pharmaceutical industry has grown at a compounded growth rate of ~11% in thedomestic market and ~16% in exports over the past two decades. While the domestic markethas grown at a similar pace to the gross domestic product (GDP) the overall growth hasbeen driven by the industry's leadership in supplying generic formulations to marketsacross the globe.
According to IQVIA the global medicine market is expected to grow at 3-6% CAGR through2025 reaching about $1.6 trillion in total market size in 2025. This excludes spending onCOVID-19 vaccines where total cumulative spending through 2025 is projected to be $157Billion.
Emerging industry opportunities include innovation and R&D healthcare deliverymanufacturing and supply chain and market access. Efficient capacity building andoptimising productivity will be essential in the next normal.
Delivering on our commitment in 2020-21
Supply chain disruptions reduced mobility and industry-wide dislocation caused by theCOVID-19 pandemic impacted aspects of our operations. Nonetheless we strengthened ourreputation for resilience and reliability by continuing to deliver life-saving therapeuticproducts around the world. At the same time we prioritised the health and safety of ourpeople and implemented additional safety measures at our facilities.
With a legacy as old as 114 years and a mission to help improve healthcare withinnovation commitment and trust we have continuously worked on enhancing quality andvalue of our offerings for our customers and stakeholders. During 2020-21 we continued todevelop innovative complex molecules diversify our portfolio and ensure a continuoussupply of quality products while demonstrating the highest standards of ethicscompliance and governance.
We continued to enhance our manufacturing capabilities during the year and spent about12.4% of our revenue towards R&D activities to take complex generics to the maximumnumber of people worldwide. Our team of over 1200 R&D workforce enable us to developcomplex products across general injectables Oncology injectables and OSDs Ophthalmologyand Dermatology. Some of these experts focus on developing niche specialty products toreinforce our branded product offerings. We saw significant growth along with asubstantial market share gain for Azithral OSD and we stood as a formidable playerglobally as Azithromycin was a key molecule for the treatment of COVID-19.
We are well positioned for the future with our focused strategy and ongoing investmentsin research our complex manufacturing competence and advanced supply chain managementpractices to achieve operational excellence.
We believe in progress that creates and shares value with the society. Regularcommunity interventions ethical business practices and charitable efforts to empowerpeople's lives make us a trusted brand among our stakeholders.
We believe in upgrading and strengthening an enterprisewide culture of good governanceto ensure transparency and fairness in decision-making
We saw growth across all our business divisions and in particular the InternationalFormulations business (Ex-USA) and API business demonstrated solid double-digit growthwithin an ethical framework that promotes the responsible consideration of allstakeholders while also holding decision-makers appropriately accountable.
In these critical and uncertain times we responded quickly and efficiently to meet thechallenges at hand.
We formed a Crisis Management Committee and took COVID-19 precautions and measures toensure the safety of our employees and business continuity under the guidance of thesenior management on tackling challenges resulting from the pandemic.
Despite multiple disruptions resulting from the COVID-19 pandemic and lockdowns ourteams including Supply Chain HR IT Finance Operations Manufacturing did a remarkablejob of ensuring business continuity by optimising overall productivity and efficiencywithout compromising on safety protocols.
I want to thank our esteemed shareholders partners and stakeholders for placing theirtrust and confidence in us. We will together emerge stronger from this global crisis.
Chairman & CEO