It is my pleasure to present before you the 57th Annual Report of your Company.
I hope that you and your family are safe and healthy. COVID-19 pandemic has triggeredall corporates to reflect on their operational strategies and work practices. Putting thesafety of our employees on utmost priority policy changes related to work from homewherever possible and digital support were rolled out immediately to help employees shiftto this new work paradigm. Unichem's robust digital capabilities enabled to smoothlyswitch over to this new normal. Pharma being an essential service manufacturing locationsresumed work without much disruptions while being fully compliant with COVID-19guidelines.
Pharma is one among the few industries that may not witness many disruptions on thedemand side arising from the pandemic however supply chain challenges are there to staywhich need immediate redressal. India is being looked upon as an alternate global supplierto de-risk the supply chain which is currently more dependent on a particular region. Asthe industry moves towards a paradigm where disruption is the new normal it is thedifferentiated thinking around drug delivery systems molecules and compliance benchmarksthat will drive growth making it essential that innovation is fostered at every levelacross the value chain.
The enormity of these economic challenges however present a unique opportunity forResearch and Development (R&D). Your Company's strategy of investing in R&D thatfocuses on Active Pharmaceuticals Ingredients (APIs) Process Research AnalyticsFormulation Development and Clinical Research has seen ramping up of regulatory filingsin Abbreviated New Drug Applications (ANDAs) Drug Master Files (DMFs) and Dossiers in theregulated markets. The commitment of future investment and dedication to research willensure that Unichem will continue to offer a broad portfolio across various therapeuticareas.
During the year under review your Company received 5 ANDA approvals from the USFDA andfiled 6 ANDAs (including First-to-File and one Para 4) 3 USDMFs and 1 CEP (Certificationof Suitability of European Pharmacopoeia). We expect an increase in the number ofapprovals in times to come.
The intrinsic philosophy of striving towards excellence saw your Company's facilitiessuccessfully clearing multiple inspections by regulatory bodies from across the globe.These included successful completion of USFDA inspections of the Formulation and APIfacilities at Goa Ghaziabad Roha Kolhapur and Pithampur. I am confident that our drivefor quality 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.
We remain focused on improving quality across all aspects of our operations withinitiatives for continuous improvement reducing manual interventions through automatedsystems to constantly upgrade the culture of quality. The year also saw continuedimplementation of your Company's capital expenditure program across all manufacturingunits funded through internal accruals with significant emphasis on modernization andexpansion of capacities. With Health for All' going to be the mantra post thepandemic your Company's investment in capital expenditure is well geared to participatein this opportunity.
Amidst continued challenges on several fronts including pricing pressures mainly inthe US which is your Company's key generic market 2019-2020 was another year of focusedexecution and operational responsiveness. Sales including operating income (Gross) on aconsolidated basis stood at Rs 121062.12 Lakhs as compared to Rs 118004.68 Lakhs inthe previous year. Standalone Sales / Income from Operations (Gross) was Rs 90488.53Lakhs as compared to Rs 96773.89 Lakhs in the previous year.
As a continuous effort towards rewarding shareholders it gives me immense pleasure toinform you that the Board of Directors of the Company has recommended a dividend of Rs 4/-per share (200%). The dividend shall be paid if approved by Members at the ensuing 57thAnnual General Meeting.
As a responsible corporate citizen your Company is committed to ensuring itscontribution to the welfare of the communities where it operates with a key focus onaddressing the societal and environmental concerns while co-creating value with localinstitutions and people. Your Company continued to focus on social initiatives in sectorssuch as education health and sanitation infrastructure protection of the environmentand women empowerment in the local areas where it operates.
I place on record my sincere appreciation to our business associates customers bankssuppliers shareholders and our employees for their continued support and trust reposed inus. I also take this opportunity to extend my gratitude to our esteemed Board members fortheir invaluable guidance and support in steering your Company in this journey towardsbeing a global pharma player.
At Unichem we remain committed to create and deliver value in a sustainable way for abetter tomorrow.
|Dr. Prakash A. Mody |
|Chairman & Managing Director |
|June 192020 |