It is my privilege to interact with you and present annual report with financialstatements of your Company for the FY 2018-19.
Indian economy slowed down albeit slightly in the FY 2018-19 primarily due todeclining growth of private consumption tepid growth in fixed investment and mutedexports. The government however is cautiously optimistic for FY 19-20.
However India's domestic pharmaceutical market grew by 9.4% to reach Rs 129015 crore(US$ 18.12 billion) in 2018 from Rs 116389 crore (US$ 17.87 billion) in 2017. While onthe export front Indian companies received 304 Abbreviated New Drug Application (ANDA)approvals from the USFDA. The country accounts for around 30% (by volume) and about 10%(value) in the US$ 70-80 billion US generics market.
Beta Drugs Ltd posted strong results for FY 18-19. Its standalone sales grew by 15% toRs 58.05 crores compared with the same period a year ago while consolidated sales stood atRs 66 crore . Beta's standalone net profit increased by 14% to Rs7.7 crores.
During the year under review Beta Drugs Ltd has incorporated a wholly owned subsidiarynamed M/s Adley Formulations Pvt Ltd who has acquired the entire business of AdleyFormulations. Adley Formulations was a proprietorship firm specializing in manufacturingof Oncology medicines both in form of tablets & injectable since 2008. Thisacquisition is helping the company cement its position as India's leading manufacturer ofOncology drugs.
The company recently allotted 6.45 lakhs shares @Rs 91 each to Suryavanshi CommotradeIndia Pvt Ltd. to fund the acquisition of Adley Lab Limited a promoter companyspecialized in Oncology API manufacturing and supplying the same to Beta Drugs Ltd. Thisbackward integration will help improve Beta's profitability across the board.
Future Growth Plans
To increase market share of own branded drugs: Beta is continuing to strengthen andexpand its branded sales team and is planning to launch many new innovative molecules thisfiscal. The company is also expanding its domestic partnerships/tie-ups with corporatehospitals. Recently the company for the first time has entered into an agreement to supplyits drugs to Tata Memorial Hospital.
Increase export sales: By 2019-20 company targets to open at least 10 countriesfrom (Non & Semi regulated & Regulated markets).In September 2018 the companyentered into a 60-40% joint venture with SILUJIN Private Co. Ltd to manufacture Oncologydrugs in Uzbekistan. Beta becomes the first Indian company to manufacture Oncology drugsin the whole of Uzbekistan. As Uzbekistan has a free trade agreement with many CIScountries Beta intends to export Oncology drugs to these countries from Uzbekistan.
On behalf of the Board and management I would like to thank our shareholderscustomers distributors and other stakeholders for their continued support and trust. Anda special thanks to all our employees for their sheer hardwork and commitment which hashelped the company to deliver strong performance. It is an honor to serve you all.
|With Warm Regards |
|Vijay Kumar Batra |
|Chairman cum Managing Director |