I am glad to share my thoughts regarding this fiscal period which saw your company complete 35 years of commitment to quality manufacturing of APIs. As we discussed in last year's report external challenges continue to affect the industry and during the last quarter we have seen the unprecedented changes caused as a result of the COVID 19 pandemic. Even so I can state with confidence that the management team have been better prepared to face the challenges posed to us than at any time in the past.
My confidence is rooted on the basis of the actions that we have taken to strengthen critical processes. We have taken on board our learning over the last few years and ensured that they were incorporated into our performance for the fiscal year FY20. This has been reflected in our performance which been among the best in our history.
The performance has been primarily driven by the growth in our CMS business whose impact is seen both in the number of projects and more importantly in the revenue. This has been possible as a result of the efforts that management team has put in over the years and the ability of our R&D team to be able to meet customers' requirements. Even the GDS business has seen good growth of strategic products which will be essential to the medium and long-term future of the organization.
During the year we were able to successfully complete two US FDA audits at our facilities again a testament to our commitment to quality. The team has actively worked towards de-risking our Supply Chain and we have reduced our dependence on a single geography as well as single sources for key Raw Materials. There is a robust cross-functional effort to optimize costs and focus on technology to improve margins so that we are not only competitive but are in a leadership position for our products.
The R&D team has been a crucial partner in the growth of the CMS business managing the spike in number of projects while also making significant contribution in terms of Process Improvement & Development (PID) work for the GDS business. A pilot plant has been commissioned at Unit III which enables our team to further accelerate the process of development of new products. The management team has in a short span of time added to our capabilities by qualifying a CMO facility which will allow us to supply sterile APIs.
Our team is actively working to further our penetration among CMS customers especially in the North American and Japanese markets. We are diversifying our base of customers even as our reputation as a Quality-focussed Customer-centric API service provider keeps burgeoning. Growth is additionally being driven as a result of our capability to expand at Unit III. Unit III will be a key contributor as we anticipate regulatory approvals which will enable us to manufacture APIs for the Regulated markets.
On the people front we are actively building a learning organization which is responsive to customers' dynamically changing priorities. The management team at Neuland is continuously evaluating our processes and capabilities internally while being vigilant about changes in the external environment so that we are an agile and sustainable organization which can capitalize on the opportunities which present themselves while building strategic capabilities for the long-term.
In the light of all that we have done the capability of our team and the trust posed in us by our customers I believe Neuland is on a strong platform to become a leading API player not just by reputation but also financial performance.
At this time I would like to especially mention the efforts of all our employees in helping us deal with the situation arising out of the COVID19 pandemic. I have seen exceptional commitment through the organization to ensure that we rise and meet the needs of society and our customers at this time through the essential APIs that we produce. The leadership team along with great support from the governing authorities has ensured that we were able to keep going at this critical time. Even as the Company is continuing to serve customers at this time I want to reiterate we are taking every step to ensure our top priority is the health and safety of our employees.
Finally on behalf of the board of Directors I would like to thank you for your continued trust confidence and support.
|With Best Regards|
|Dr. Davuluri Rama Mohan Rao|
|Chairman & Managing|