It has been an eventful year for the entire world. COVID-19 impacted every singleperson on the planet. However I must say that everyone around the world stood united inthis fight against this deadly virus and we have managed to control the virus and itsspread. Pandemic always poses different types of challenges. And now as we emerge out ofthis pandemic we can also see a different side of the universe being unfolded.
In this background I am pleased with the legacy we are creating at JB with a stronggrowth orientation approach built on the values of integrity trust and reliability.During the year we retained our position as the fastest growing company within the top 30pharma companies in India. Our big brands are growing bigger. Five of our brands featurewithin the top 300 in the industry and quite a few of these are household names. Thesetoo have stood out in their respective molecule segments.
We have the required determination and discipline to succeed in a post-pandemic era.Team-mates across the organization have gone above and beyond to secure a strong futurefor the company and I wish to compliment all of them. Underlining our achievements andaspirations we have assumed a new identity of JB Pharma to our customers vendors andpartners. We wish to be future-ready and poised for growth and this will happen throughinvestment in advancing our portfolio in leadership as well as novel segments smartmarketing strategies in select export markets and driving home better productivities.
The domestic business has shown significant momentum where the emphasis has been onthe following aspects:
New Go-To-Market Model: We launched a new Go-To-Market model which hashelped us increase productivity and bring greater focus to the domestic business.
Increased Focus on the Chronic Segment:
During the year we entered the fast growing chronic segment like heart failurediabetes and nephrology. Our acquisition of the 'Azmarda' brand from Novartis will alsobe instrumental in driving a higher share of the chronic business.
New Product Launches: During the year we launched over 15 new products.Correspondingly the share of new offerings to domestic sales has increased from 1.4% inFY21 to 4% in FY22 and we are eager to push this metric even further.
Acquisition-led Growth via Strong Franchises:
While we are driving our organic strategies the business is open to value-creatingopportunities. The two acquisitions underline the prudent utilization of our capital andour free cash flows. Sporlac marks our foray into the highly attractive probioticssegment. The acquisition of the brand Azmarda from Novartis marks our entry into one ofthe fastest growing segments within cardiology i.e. heart failure.
Our well-scripted progress in the international business continues: Beyond India wecount South Africa and Russia as home markets. Ours is the fastest growing company inSouth Africa where we are ranked #15 in the market. In Russia given the geo-politicalinstability that the region has seen we have been cautious in the management of theoperations although the demand has stayed on trend.
Further our products are available across 40 countries referred to as the ROW region.We operate through a distributor-led model and we see demand picking up for the regionpost the pandemic. In the US the focus shall be on low volume but high value offeringswith a niche peer profile and where we are backed up with our in-house APIs. The US willcontinue to remain a cost-plus business model which ensures our returns are good from thebusiness.
The CMO business especially Lozenges represents an area of excellence for us with atop 5 global position in the production of medical and herbal lozenges. Backed by keyregulatory citations and approvals in markets such as the UK Canada EU Australia SouthAfrica Russia/CIS and other markets our offerings form part of the global portfolios ofleading multinational pharma/consumer health companies. We endeavor to achieve closercooperation with our key customers and given a comfortable availability of capacities weare seeking to scale up progressively. The future portfolio will cater to immunity-focusedproducts beyond the norm of cough cold and flu. Given our thrust on ROCE and goodoperating margins we are keen to grow this business further.
FY22 is been a continuation of our journey to consolidate our foundation and preparefor sustained growth. On the one hand we have taken measures to drive up therapy-wise andbrand-focused expansion especially within the domestic arena and on the other we arecreating differentiation through sizeable opportunities within Lozenges. This journey willget augmented with opportune investments in growth creating acquisitions. On theoperational aspect we will continue the journey towards higher productivity and bettercost management while enhancing our offering profile amongst key customers. All of this isand shall be possible on the back of a robust organization backbone and healthy governanceplatform that we are investing in.
Very recently we have unveiled our new identity which is a representation of ouraspirations. Our new identity has a simple solid look that reflects the way we think andconduct ourselves. It is a symbol of our belief in continuing to be GOOD PEOPLE FORGOOD HEALTH. Thereby with a defined growth agenda team spirit and dedication tocreating sustainable advantages through key products we are approaching the new year withnew vigor and purpose.
I thank you for your support and we will continue to create value for all ourshareholders.
|Yours sincerely |
|Nikhil Chopra |