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Shilpa Medicare Ltd.

BSE: 530549 Sector: Health care
NSE: SHILPAMED ISIN Code: INE790G01031
BSE 00:00 | 26 Nov 560.65 -15.70
(-2.72%)
OPEN

570.85

HIGH

593.60

LOW

552.65

NSE 00:00 | 26 Nov 560.75 -14.85
(-2.58%)
OPEN

564.00

HIGH

592.80

LOW

552.00

OPEN 570.85
PREVIOUS CLOSE 576.35
VOLUME 26765
52-Week high 670.95
52-Week low 317.05
P/E 45.95
Mkt Cap.(Rs cr) 4,866
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 570.85
CLOSE 576.35
VOLUME 26765
52-Week high 670.95
52-Week low 317.05
P/E 45.95
Mkt Cap.(Rs cr) 4,866
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Shilpa Medicare Ltd. (SHILPAMED) - Chairman Speech

Company chairman speech

Dear Shareholders

Welcome to our FY21 Annual Report. We are amidst a global economic recovery after adevastating FY21 due to the COVID 19. As on 28 August 2021 the total cases across theglobe is around 600000 many times lower than what it was an year ago. The situation inIndia from one of the worst affected in the world a year ago is expected to be nearingan endemic stage. The ongoing vaccination driver will further increase our population'simmunity.

The year 2020 saw a 3.3% fall in economic growth from a high of U$D 87.55 trillion in2019. The world economic outlook forecasts global growth at 6% for 2021 in its outlookpublished in April 2021. The additional fiscal support and vaccine aided recovery are thekey factors for increasing the growth forecast of 4.4% made previously in October 2020.While the forecast is optimistic it is surrounded by high uncertainty. There are severalvariables such as impact of recession impacted population rate of infection number ofdeaths fiscal policies extent of vaccination population demographics unemploymentlevels and so on. Along with the global economy India too experienced a significantcontraction in GDP during 2020-21 due to the pandemic. Supply chain disruptions andincrease in key food prices led to an elevated headline inflation which was moderated inDecember 2020 with easing of food prices. Credit and monetary conditions wereexpansionary and financial markets eased amid the backdrop of ample liquidity. Thingsimproved until India was hit hard by the second wave of the pandemic in March 2021.However the economy is rebounding after the country has been able to check even the secondwave. All the key constituents in healthcare value chain including pharma companies workedwith an additional responsibility while combating the pandemic.

Indian Pharma Sector

A recent WEF study says that India has the potential to contribute $500 billion inannual economic impact to the global economy by 2030 by becoming the world's manufacturinghub. I am heartened to say that with respect to pharma sector India is already a worldpharma hub. India supplied around 45 tons and 400 million tablets of hydroxychloroquine toaround 114 countries globally amidst pandemic. Further India is among the 26 countriesmanufacturing the Covid Vaccine which confirms our scientific community's research anddevelopment capabilities. The Indian pharmaceutical industry is the third-largest in theworld by volume and 14th largest in terms of value i.e going forward the Indian pharmacompanies have lot to gain by further unlocking and increasing the value.

According to Pharmexcil India's pharmaceutical exports grew 18.7% to $24.44 billion inthe financial year ended March 31 spurred by strong demand for the country's genericdrugs. The industry posted its best export performance in value terms despite the globalpharma market shrinking by 1-2% in 2020. This was due to a surge in demand formade-in-India generics owing to their quality and affordability.

Our global positioning with respect to external demands and capabilities are detailedin the ensuring pages and in the Management Discussions and Analysis.

Key Events During the Year

Apart from expanding in our key therapeutic areas of oncology and non-oncology ourstrategic pursuits to diversify our product range in oral dissolving films biologicstransdermal dosage forms have touched significant milestones during the year. Ourformulation division introduced novel products i.e for women's hygiene and green tea filmfor the general public for increasing immunity. Stepping into FY22 we have successfullyaddressed a long-awaited need to have a oral thin film for the paediatric segment with thelaunch of Molshil – a paracetamol ODF first time in the world. Shilpa Biologicals PvtLtd (SBPL) our wholly owned subsidiary of Shilpa Medicare Ltd. has entered in a 3-yeardefinitive agreement with Dr.Reddy's Laboratories for the production-supply of Sputnik Vvaccine from its integrated Biologics R&D cum manufacturing center at DharwadKarnataka. I congratulate our team for tirelessly working towards our goals. Despitechallenging last 2 quarters both API & Formulation businesses witnessed robust growthduring the year. Q4 performance across businesses impacted due to capacity enhancement inAPI both oncology & non-oncology which is strategic in nature for enabling ourlong-term performance. License income reduced due to USFDA Import Alert. Three productshave been exempted from the Import Alert - Azacitidine for Injection CyclophosphamideCapsules and

Erlotinib Tablets. The Company is committed to address the concerns raised by the USFDAand is working with the USFDA to resolve these issues at the earliest.

FY22 and Beyond

Stepping into FY22 the results of Q1 is encouraging with a year of year Q1 revenuegrowth of 5%. The Board of Directors of the Company has decided to make API business as aseparate entity for each division to be a unique business model and to get the desiredstrategic impetus.

From Deference Research & Development Organisation (DRDO) we have received anapproval for manufacture and sales of 2-Deoxy-D-Glucose (2DG) – the second company inIndia to received this approval.

Governance and Social Responsibility

The Board of Directors of the Company through various committees along with the seniormanagement of the Company continue to closely monitor and implement all governanceinitiatives to comply with the regulatory norms as well as to ensure value is created forour shareholders employees customers and society. Corporate Social Responsibility isakin to our business model. Towards our corporate responsibility initiatives we spentRs.339 lakhs during this year. Key social interventions during the year include WaterConservation Rural Education Promotion Environmental Protection Medical or Healthcamps Sports Promotion Swach Bharath COVID 19 and Rural Development related activities.

Concluding Remarks

As you will find in the narratives of this report we continue to expand our peopleresearch technology manufacturing and product capability for strengthening our missionto provide affordable healthcare to the world. I take this opportunity to thank regulatoryauthorities shareholders partners customers suppliers for their continued support.

Stay safe stay healthy.

Regards

Omprakash Inani

Chairman

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