I We have with great team work and daunting spirit overcome theheadwinds that held us back in yester years. We will leverage these learnings to draw thecontours of our strategic path forward. While we move ahead with agility we do sodiligently.
Iink this piece with immense satisfaction. More so a sense ofcelebration. This is owing to what we have achieved in FY21. It is an inflection point inthejourney.
FY21 held special significance for Venus. It was the last year of ourVision 2020.
We entered into FY21 with considerable stress. We were way off from ourset goals for 2020.. We had issues with some of our business partners. We were saddledwith debt. And the pandemic hit India which only added to the challenges.
But we overcame it all. And we managed to check off most of what wehave articulated in ourVision statement. We challenged the challenges. We braved the odds.We worked harder and smarter. We did better business. Flaving been pushed to the wall andwith our survival being guestioned. We fought one last time. With our heart and mind.
As a result we monetised our intellectual capital. We widened ourglobal footprint. We increased our market share in key markets. We increased businessliguidity. We repaid all our secured debt. We improved our working capital cycle. Weearned net profit.
This happened primarily owing to unwavering passion and disciplineddetermination of our team who braved the pandemic stayed in makeshift homes workedtirelessly round the clock only to ensure that we remained committed to our customercommitments. I salute these brave hearts. This year is dedicated to them.
At the end we emerged STRONGER - from a business standpoint and from afinancial perspective.
When critigues guestioned our survival we delivered success.
Now starts the more important task-of sustaining this success. For thiswe have drawn a comprehensive 5-year blueprint of what we wish to do. This strategy I amconfident will strengthen the organisational edifice to enable the business to leapfroginto a higher orbit.
1) Product strategy: We realised that a sizeable portion of theproducts launched have become increasingly genericised. While the topline increasedmargins remained sgueezed. Moreover in the international markets we are competing withlarge global players with similar products. Flence we have sharpened our efforts onaltering our product mix with the objective of improving our profitability.
We have shortlisted about 25 products each of which have a sizeablemarket size. On the one hand we have developed a go-to market strategy for each productas every market because all markets are not egually rewarding for all products. On theother hand our R&D is readying the products for launch. We should see some of themsee the light of day in the next 18-24 months. This we believe will help us improvebusiness profitability over the coming years.
2) R&D strategy: Elores has provided important learnings for theorganisation especially for the R&D team which is the building block for everything
we do at Venus. Imbibing this learning we have decided to alter ourR&D strategy. So even as we will continue to focus on the antibiotics therapy wewill cherry-pick prospects that are difficult to develop on to complex chemistry butrelatively easier to market. This will significantly cut-down our mind-to-market cycle.
One would wonder why is Venus continuing to focus on antibiotics.There are two reasons for that. 1) We have been in this space for more than 20 years andit is the largest contributor to both our top and bottom lines.
We understand this space well. 2) Antibiotic resistance remains a hugeconcern and a continuous effort over long term will create tremendous value for companiesthat remain committed to the cause.
In the antibiotics space we are not into the commodity space we areleveraging novel technologies that will enhance the safety and efficacy of existing drugsenhancing their shelf life. This positions us in the value-added segment within thistherapy.
Creating new capabilities:
In the generics space one has to scale the complexity barometer. AtVenus we are also looking to strengthen our product basket with more complex products.For this we are debating on the prospects of biopharmaceutical space. For this we willbe creating capabilities from within our existing infrastructure.
3) New vertical: We are charted our plan to enter the lucrativeconsumer healthcare space.
We plan to introduce disruptive products over the next five yearscovering key segments like pain management gastroenterology hygiene stress managementvitamins and supplements. As a start we will enter the pain management segment which ispoised to grow at a faster clip than the overall Rs 30000 consumer healthcare space.
4) Technology & talent:
Over the last two years our Sankalp has been technology and talent. Wehave done considerable work in both these areas.
We have adopted state-of- the-art technology to expand our productreach to stockists and retailers directly creating a unigue virtual marketplace. Thiswill allow the current brick and mortar pharmacies to compete with the new-age virtualpharmacies and the large pharmacies of the new world.This virtual marketplace would adoptthe supply chain akin to the Amazon model; we have taken all the B2C technologies andapplied them to the B2B model. We are among the first to be doing this kind of marketing.This is typically the advantage of our size; we can take out-of- the-box decisions fasterand implement them with greater speed and agility. We wish to make this increasinglyscalable as we go forward.
On the talent space it is going to be transformative. Venus has nevercompromised on its talent pool and we will not do so even in the coming years. We haveset ourselves an ambitious target - of emerging as a preferred place to work.
On the one hand we will engage with and onboard talent selectively whowill infuse new ideas into the Company. While on the other we will create an ecosystemthat nurtures skill offers opportunity to do take challenging projects and provides aplatform for accelerated growth.
This I am confident will help us to operate with a start-up likeagility with enterprise-like resources.
Overall endeavour: We will be more focused on value- creation. We willnot create 20 drugs and be one among the rest in all. We will rather focus on cherrypicking 5 drugs and being the best in class in all five. We have with great team workand daunting spirit overcome the headwinds that held us back in yester years. We willleverage these learnings to draw the contours of our strategic path forward. While we moveahead with agility we do so diligently.
The journey ahead of us is indeed riveting. We at Venus shallcontinue our focus on technology efficiency
We plan to introduce disruptive products over the next five yearscovering key segments like pain management gastroenterology hygiene stress managementvitamins and supplements. As a start we will enter the pain management segment which ispoised to grow at a faster clip than the overall Rs 30000 consumer healthcare space.improvement sustainable manufacturing and exports. Having said that we will ensure thatour growth does not come at the cost of the environment. For this we have careful drawnthe contours of our Mission 2025 to align with the Sustainable Development Goals (SDGs)set by the United Nations to achieve a better and more sustainable future for all.
I take the occasion to thank the entire team for their unflinchingdedication to our clients and our business. I express my sincere gratitude to my fellowDirectors for their commitment in drawing the path forward for your Company. I also thankour other stakeholders who continue to be our partners in growth. I also place on recordmy deep appreciation to all our loyal and valuable shareholders for their continuedconfidence and support.
Warm regards Pawan Chaudhary