It is my pleasure to present before you the 59th Annual Report of yourCompany. I hope that you all are keeping safe and healthy!
Let me begin by expressing my deepest gratitude to the medicalfraternity for their extraordinary fortitude in serving society and in ramping uphealthcare infrastructure along with intensive vaccination program during last year acrossthe country to make our lives safer and more convenient.
The recent period has been relentless with the global pandemicmilitary conflict supply chain shortages and businesses had to cope with thisunprecedented sequence of events with speed and agility. While the world was recoveringpost pandemic inflation and supply chain disruption had offset the buoyancy in therecovery of consumption across the globe. The world economy is progressively losingmomentum caused due to rising global energy and food prices deterioration in geopoliticalenvironment and monetary policy normalisation to combat inflation.
The industry is expected to show some level of recessionary impact inthe near to mid-term as concerns over inflation and recession grow across the US andEurope the largest markets for the pharma industry. As per the World Bank estimatebetween 2021 and 2024 global growth is projected to slow by 2.7 percentage points.
Despite near-term uncertainties the Indian economy holds immensepromise. Indian pharma stands on four of its biggest strengths namely affordabilityaccessibility agility and quality. It can grow not only in size and reach but also interms of capability and innovation.
Keeping this in mind we have invested over the years in building ourcapacities and capabilities and have strengthened our processes for having superiorquality and compliance which has resulted in consistent accreditation approvals from theworld regulatory authorities. Our manufacturing plants have been accredited by highlyrespected international regulatory authorities such as the US FDA UK MHRA SAHPRA (SouthAfrica) WHO GMP TGA (Australia) PMDA (Japan) KFDA (Korea) Russia and ANVISA (Brazil).We have capitalised on our manufacturing excellence to ensure sustained deliveries to ourcustomers despite the challenges of APIs availability.
The technology transformation will be the next normal for all of us. Weaim to enhance quality and compliance augment productivity through enhanced operationalexcellence and data integrity. We have made significant efforts by investing in digitaltransformation to ensure a safe and productive working environment. We introduced alearning module system at all our locations to digitize our standard operating processesfor upgrading the workforce in a more contemporary mode that is suited for the future.During the year we seamlessly completed virtual audits/inspections of our plants forvarious overseas regulatory authorities a testimony of our robust IT system.
We continue to invest in R&D for our markets and have the necessaryregulatory approvals in place. Unichem has developed several pharma products that addressthe needs of relevant and growing therapeutic areas like gastroenterology cardiologydiabetology psychiatry neurology anti-bacterial anti-infectives and pain management.The Centre of Excellence at Goa fuelled by a team of scientists and PhDs enables us toleverage our investments in manufacturing capabilities by increased filings with variousregulators which in turn will enable us to deliver robust growth in the coming years.
Unichem concluded its major capex-cycle spread over the last 3 years atall its manufacturing facilities i.e. for formulations APIs and at its R&D centre.This will ensure that we are ready to unfold the market opportunities while maintainingthe highest quality standards. Most importantly this capex was funded entirely from theinternal accruals. With most of these facilities commencing operations we expect aneasing of pressure on our operating free cash flow in the coming years. With this newlybuilt capacity and capabilities we are hopeful that we will continue to deliver value andstrengthen our foundation for growth.
It was a year of challenges but also a year of significantachievements. The first nine months of the year saw our revenues decline but the fourthquarter saw a complete turnaround and I am happy to share that we closed the year on avery strong note. Consolidated Revenue from Operations increased to ` 1269.83 crs duringthe financial year 2021-22 from ` 1235.14 crs in the previous year registering a growthof 2.8%. US which is a major market for your Company achieved sales of ` 734.29 crs duringthe fiscal year 2021-22 as against ` 687.54 crs in the previous year registering a growthof 6.8%. Revenue from the international formulation business contributed to 80.6% of NetRevenue from Operations.
As a continuous effort toward rewarding Shareholders it gives meimmense pleasure to inform you that the Board of Directors of the Company has recommendeda Dividend of ` 4/- (200%) per share. The dividend shall be paid if approved byShareholders at the ensuing 59th Annual General Meeting.
Our long-term commitment to society and communities was furtheraugmented through our CSR programmes implemented during the year even though there was nomandatory requirement for CSR spending. Our key focus this year was on addressing healthand educational concerns while co-creating value with local institutions and people.
Although the future is full of uncertainty and challenges the outlookis one of the cautious optimism. Recovery might get delayed' but notderailed'. However Companies will have to remain on guard concerning thegeopolitical situation and the pandemic-related uncertainties. Several multibillion-dollardrugs going off patent over the next few years and increasing use of pharmaceuticalgenerics in developed markets to reduce healthcare cost will provide attractive growthopportunities to generics manufacturers and thus Indian pharmaceutical industry is poisedfor an accelerate growth in the coming years.
We have built new capacities and capabilities including R&DManufacturing and Quality and expanded our product portfolio to deliver long-termsustainable growth in our generics business. We are hopeful that we will continue todeliver value and strengthen our foundation for growth. With formulations constituting thecore of the Company's business Unichem is backward integrated to API manufacturingwhich will add value to the customer in terms of quality and sustainability going forward.The outlook for the Company remains bright going by the number of products/filings filedor lined up in coming years.
As the pandemic has subsided the exceptional growth of the past inacute therapies may not be repeated however emerging lifestyle diseases would boostdemand for chronic drugs. On the back of investments made so far we expect to driverevenue growth in our businesses and even as we plan the next phase of healthcare we areacutely conscious to ensure growth is environmentally sustainable socially impactful andin keeping with the governance standards. While the environment will bring many furtherchallenges our unwavering purpose of caring to enhance health through quality productswill give us the confidence to build a stronger better Unichem for the future.
I place on record my sincere appreciation to our customers businessassociates banks suppliers shareholders and employees for their continued support andtrust reposed in us. I also take this opportunity to extend my gratitude to our esteemedBoard members for their invaluable guidance and support in steering your Company on thisjourney toward being a global pharma player.