I am pleased to present you with the 56th Annual Report of your Company.
The financial year 2018-19 was the first complete year of the "New" Unichemwith the world as its market. Your Company is today set to reap the rewards of over sixdecades of consistent commitment to the basic values of integrity quality and reliabilityin its thrust to develop a global market.
In conducting our business we are guided by the famous quote widely attributed toAristotle - "We are what we repeatedly do. Excellence then is notan act but a habit."
It is this approach of constantly striving for excellence that has led to your Companybeing sknown for "Quality" and "Reliability" the world over. Unichemtoday is known globally for its excellence in drug manufacturing both in the areas ofAPIs (Active Pharmaceutical Ingredients) and Formulations. The dedication to excellencewill ensure the long-term success of your Company in the global pharma market.
This intrinsic philosophy saw your Company's facilities successfully clearing multipleinspections by regulatory bodies from across the globe during the year under review. Theseincluded successful completion of USFDA (US Food and Drug Administration) inspections ofthe Formulation and API facilities at Ghaziabad Roha and Pithampur. Your Company alsoreceived an Establishment Inspection Report (EIR) for its Jogeshwari office (Mumbai) forpost marketing adverse drug experience inspection. I am confident that our drive forquality reliability and excellence will ensure that we continue to not just meet butsurpass the stringent cGMP (Current Good Manufacturing Practice) standards required fordoing business in the regulated markets.
Post divestment of the Domestic Formulation Business your Company has continued tofocus its energies in the global regulated markets which is evident from the robustperformance it has delivered in the USA formulation business with a significantimprovement over the past years.
Standalone Sales / Income from Operations (Gross) increased to Rs. 96773.89 lakhs fromRs. 66646.97 lakhs in the previous year registering a growth of 45.20%. ConsolidatedSales/Income from Operations (Gross) stood at Rs. 118004.68 lakhs as compared to Rs.81498.48 lakhs (continuing operations) in the previous year registering an increase of44.80%.
During the year under review; your Company received ANDA (Abbreviated New DrugApplication) approvals from the USFDA for Montelukast Chewable Tablets Tadalafil TabletsPramipexole Dihydrochloride Tablets Allopurinol Tablets and Valsartan Tablets. YourCompany also filed 14 ANDAs and 1 PAS (Prior Approval Supplement) for new formulations.The ANDA submissions include 1 Para IV filing. Your Company also submitted 12 USDMFs (USDrug Master Files) 1 CEP (Certification of Suitability of European Pharmacopoeia) and 2Brazil dossiers.
The above is a fitting testament to your Company's strategy of investing in R&Dwith efforts led by our R&D Centre of Excellence in Goa that focuses on API ProcessResearch API Process Research Analytics Formulation Development Formulation DevelopmentAnalytics Clinical Research and Intellectual Property Management.
The year also saw implementation of your Company's capital expenditure program acrossall manufacturing units which continued to be funded through internal accruals withsignificant emphasis on modernization and expansion of capacity. This would bolster ourefforts to increase business in the global regulated markets we serve.
To meet the demands of incremental growth your Company has made strategic investmentsin two Hyderabad based companies namely Optimus Drugs Private Limited and OptrixLaboratories Private Limited engaged in the business of researching developingmanufacturing marketing and distribution of API and intermediates. The key objective ofthis investment is to gain access to their USFDA approved manufacturing facilities for APIand intermediates. This will provide the Company with additional capacity to meet itsimmediate requirements and to fulfil its export orders.
Considering the continued good performance it gives me great pleasure to inform youthat the Board of Directors of your Company have recommended a dividend of Rs.4/- pershare (200%). The dividend shall be paid if approved by the Shareholders at the 56thAnnual General Meeting.
I take this opportunity to extend my gratitude to all our stakeholders and our esteemedBoard members for their guidance and support. I am also thankful to our customersbusiness associates banks and financial institutions who continue to encourage us byreposing their faith and trust in us. Of course all of this would not be possible withoutour employees who share our values and are earnestly contributing to Unichem'stransformation into a global pharma player.
I remain optimistic about the future and look forward to your support on this continuedtransformational journey of the "New" Unichem.
Dr. Prakash A. Mody
Chairman & Managing Director
May 24 2019