Prudence in Every Decision. Consistency in Every Action.
I write to you at a time when our external environment is recovering from aonce-in-a-century event in the form of COVID-19. Even as uncertainty persists in the wakeof a second wave we can say with reasonable confidence that as a nation we are betterprepared. Constant change has been accepted as the new normal with businessesgovernments and societies shifting gears to quickly adapt. The concept of value is alsochanging with Environmental Social and Governance (ESG) parameters emerging as tenets ofbusiness viability. In this backdrop I would like to introduce you to Torrent
Pharma's first-ever Integrated Annual Report that articulates how we perceive and aimto create value. This Report reflects how we have approached stakeholder value creationover the years and includes a detailed review of our financial and non-financialperformance together with the strategic way forward.
Globally economic revival is taking place in two tangents the developedcountries bouncing back faster and the developing economies continuing to battle groundrealities. In India a multitude of measures from the government helped balance lives andlivelihoods and the vaccination roll-out serves as a ray of hope. The projections byglobal agencies such as the IMF and the national estimates indicate high single-digit todouble-digit growth for India in 2021-22 after the shocks of 2020-21. In a context miredwith the pandemic the role of healthcare and pharmaceuticals have become even morepronounced. The social value these sectors bring has been validated like never before andthe strengthening of the healthcare ecosystem has become a core priority even reflectingin national budget allocations.
A model of growth and resilience
Starting in the domestic Indian market in the early 1970s and foraying into exports in1980s Torrent Pharma has come a long way today with presence in more than 40 countriesand emerging as one of India's pharma majors. Our business spans Branded Generic (BGx) andGeneric (Gx) markets with the former having predominant presence. Strong chronic andsub-chronic portfolio and specialty driven approach in BGx markets along with a robustand diversified portfolio as well as moving towards complex product pipelines in Gxmarkets serve as the bedrock of our business competitiveness and sustainability. Ourapproach of Not Just Healthcare... Lifecare' is underpinned by the highest levelsof product and research excellence and is guided by the motto of 'one product one globeone quality'.
Our resilience is underlined by our ability to adapt evolve and mitigate risks withpatient centricity at the core. These aspects combine with our focused stakeholderrelationships and holds us in good stead. To maintain our connect with the medicalcommunity we engage our specialised field force thus setting in motion a virtuous cycleand creating strong moat. From a strategic point of view we continue to focus on ourstronghold markets with a BGx concentration. Market share gains by aiming to grow fasterthan the market therapy consolidation therapy expansion and sustained investment in newproducts continue to be our measures of progress in these markets. Our market expansionstrategy seeks to extend our presence in geographies contiguous with our existing marketsand with a similar policy environment. Although organic growth is inherent to our natureof doing business we believe inorganic growth will continue to be an integral part of ouroverall growth story. Complementing our growth plans our people approach deployment ofcontemporary technology and operational excellence act as strategic priorities that propelus forward.
Performing across key financial indicators
While pandemic-induced uncertainties and related economic slowdown impacted the growthof global pharmaceutical markets during the year I'm pleased to report that we continuedto perform with resilience anchored on our chronic-based business model patientcentricity and business continuity processes. The underlying growth in our core markets ofIndia Brazil and Germany has been strong and continue to outperform the market. Thegrowth in the US was impacted due to lack of new approvals pending re-inspection offacilities by USFDA. Overall we achieved a revenue of Rs 8005 crores in 2020-21 whilewitnessing significant improvement across operating and net earnings (11% and 22% Y-o-Yrespectively). Earnings growth was complemented by pandemic-led cost savings productivityimprovements and operating leverage. The year gone by has also made us explore means tocreate more efficient ways of working that could potentially lead to longer term costsavings. We continue to allocate incremental cash _ows to de-leverage our balance sheetwith a net debt to EBITDA of 1.6x by the end of 2020-21 versus 2.2x in the previous year.We also continued to enhance our shareholder value during the year. For 2020-21 the Boardhas recommended a total dividend of Rs 35 per equity share for shareholders' approval.
With India to battle the pandemic
As a responsible corporate citizen we are standing with the nation in its fightagainst COVID-19 through specific interventions Torrent committed Rs 100 crores to fightthe pandemic at a Group level. This contribution was made to the PM-CARES Fund and forvarious initiatives such as providing essential medicines to various governmenthospitals contributions to state relief funds and NGOs provision of PPEs to healthcareworkers apart from the Group's ground-level initiatives. As India faced a dearth ofmedical-grade oxygen Torrent Group stepped up and augmented its oxygen production andsupply capacity to meet the daily oxygen requirements of 10000 patients. It is setting up50 medical oxygen production plants for 50 government hospitals spanning seven states andhave deployed two cryogenic tankers of 18 metric tonnes each for transportation of liquidmedical oxygen. We are also providing free oxygen using an oxygen generation plant andbottling facility in Ahmedabad. We have partnered with Eli Lilly and Company tomanufacture and commercialise Baricitinib' (an emergency use approved drug given incombination with Remdesivir for COVID-19) in India under a royalty-free non-exclusivevoluntary licensing agreement. This along with other such partnerships planned throughthe year further strengthens our commitment and effort to help the nation fight thepandemic.
Sustainability with a core focus on ESG
At Torrent Pharma business responsibility is not a new concept. Changing nomenclaturesnotwithstanding we have always focused on building the nation protecting theenvironment contributing to society and conducting business with integrity. We firmlybelieve in achieving long-term business success together with everyone. As a manufacturingentity we have a sizeable environmental footprint which we manage scientifically. Ourcore environmental focus areas include climate change and energy management emissionswaste and water management. Through dedicated interventions we have been able to achievesignificant savings in our carbon footprint. With state-of-the-art systems we alsomanaged our waste effectively with over 55% of the waste produced being recycled. Werecycle ~87% of water consumed and have erected rainwater harvesting structures tode-stress the water table in our areas of operations.
On the social front we have been dedicated to creating lasting value since inceptionand social well-being continues to be a top priority on our radar. We impacted 71000lives through our CSR programmes with our _agship REACH initiative benefiting severalvillages. Focused on child healthcare the REACH initiative continues to positively impactpeople's lives across our intervention areas actively fighting malnutrition and pediatricillnesses. We also extend our CSR programmes to infrastructure and public spacedevelopment and through contributions to hospitals and institutions. From a people standpoint we assert that the well-being of our . employees takes maximum priority. Weorganise regular safety trainings and conduct audits to ensure a safe workplace for all.From an inclusion lens we view diversity as an enabler of growth and foster a zerodiscrimination policy. We are powered by the spirit of a 13500+ workforce of whom ~21%is below 30 years of age. We also inculcate a meritocratic culture and constantly rewardand recognise our people for their contributions. Our business conduct and corporatebehaviour continue to garner trust of the stakeholders and is led by a strong Board.
We look at the future with a very optimistic stance recognising healthcare as auniversal human need and as a space where we can serve our purpose. As we grow and expandour singular focus will be on bettering patient lives through strong R&D and highestproduct quality. We will further strengthen our stakeholder relationships and continuouslycreate win-win propositions for the benefit of all. Our values legacy and responsibilitywill continue to guide us and together we will strive to enable life care for everyone. Iwould like to take this opportunity to place on record my immense gratitude to ouremployees who rise to the occasion every time and help us deliver consistently. I alsothank every stakeholder who has vested their confidence in us. I solicit your continuedcooperation and trust as we chart our way forward.