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Venus Remedies Ltd.

BSE: 526953 Sector: Health care
NSE: VENUSREM ISIN Code: INE411B01019
BSE 00:00 | 20 Feb 25.85 0.40
(1.57%)
OPEN

26.25

HIGH

26.25

LOW

25.20

NSE 00:00 | 20 Feb 25.85 0.50
(1.97%)
OPEN

25.80

HIGH

26.70

LOW

25.10

OPEN 26.25
PREVIOUS CLOSE 25.45
VOLUME 3283
52-Week high 37.35
52-Week low 19.50
P/E
Mkt Cap.(Rs cr) 32
Buy Price 23.70
Buy Qty 100.00
Sell Price 25.85
Sell Qty 701.00
OPEN 26.25
CLOSE 25.45
VOLUME 3283
52-Week high 37.35
52-Week low 19.50
P/E
Mkt Cap.(Rs cr) 32
Buy Price 23.70
Buy Qty 100.00
Sell Price 25.85
Sell Qty 701.00

Venus Remedies Ltd. (VENUSREM) - Chairman Speech

Company chairman speech

Dear friends

With the worst behind us the way forward is only going to get better. We will workvery deliberately to ensure that Venus always remains relevant and current to ourstakeholders and to the changes taking place in our environment.

It is one of those times in the year which I look forward to as it gives me anopportunity to communicate with my fellow shareholders. Moreover it is increasinglypertinent at this juncture of our journey because we are reporting losses. I canunderstand the anxiety you would be experiencing and appreciate that you would be lookingfor reasons and resolutions.

Fiscal 2018-19 was a year when we reported subdued numbers. Our topline declined by6.10% from र356.26 crore in 2017-18 to र306.35 crore in 2018-19. We remainedCash Flow positive with an EBITDA of र41.75 crore in 2018-19.

Allow me to put these numbers in perspective of the ecosystem in which we operated.

Fiscal 2018-19 was one of the most challenging years in our history which tested ourgrit and determination to survive and succeed.

It was the first full year after the announcement of a number of Government policiesincluding the GST which impacted the pharmaceutical sector. Hence there was considerablevolatility and uncertainty in the domestic markets which impacted margins.

It was a period in which two of our largest bankers withdrew working capital support toour business operations from the start of the financial year. At that juncture if feltlike mountaineering a peak without oxygen.

Despite the raging storm we sailed through rough waters – possibly the roughestupto now.

It happened primarily because of our engagement efforts with our other stakeholdersnamely vendors employees and customers. Their rock-solid support during this difficultperiod not only pulled us through it also provided us the confidence of more thandoubling our business without any additional working capital assistance.

This brings to the fore the important discussion of how we are going to turn thingsaround for the better for all stakeholders. We have a three-point agenda for the currentyear which we feel should facilitate the turnaround of our business performance.

One our focus is squarely on building our sales volumes in the domestic and globalmarkets. In the domestic market we have not only increased our customer base we havealso grown our wallet share with existing clients by launching more than 100 products.More importantly sales volumes of our niche products have increased significantlyhighlighting their growing awareness and acceptability by the healthcare fraternity. Goingforward we plan to add more than 15 products in our efforts to diversify our productbasket – these additions should contribute to business growth in the coming years.

In the international market we have made significant headway by enhancing our productdiversity and expanding our footprint. While we endeavour to enhance our returns fromthese efforts we will focus on strengthening our global presence further. We have set atarget of launching more than 80 new products in our existing international footprint. Wewill also extend our footprint across more than 20 new nations taking the total tally tomore than 80 nations. These efforts I am confident will increase our sales volumes andimproving business liquidity.

Two we remain committed to our relationships with our banking partners. Althoughin the past our relationship with our banking partners has been strained due to theturbulent business environment yet we are working more closely with our banking partnersthan ever to resolve pending issues and build a more meaningful relationship goingforward. By the end of FY20 we most definitely intend to bring about a positive change inour engagement with banks with a sustainable plan to repay our obligations.

Three the other priority area is digitisation with an intent of enhancing ourcustomer service levels a few notches higher. In keeping with this goal majority of ourdigitisation initiatives are directed towards improving man-machine productivity accurateplanning and decision-making. These efforts I am confident will improve customersatisfaction levels. Moreover some of our novel digital initiatives which will‘go-live' in the current year will strengthen our competitive advantage in the pharmaindustry.

As an important step toward our digital transformation we have formed digitisationcommittees to look at increasing automation in the manufacturing processes andincorporating machine learning artificial intelligence and data analytics across theorganisation. We have also taken up a significant Business Intelligence project in2018-19. Leveraging this solution a considerable amount of MIS reports productivityrecord generation and preparation work has been automated saving about 500 man-hours permonth. This has allowed us to deploy our intellectual capital in more value-added jobs.

Venus and innovation

From an R&D perspective it was a momentous year. We presented the results in thePhase-3 Clinical Trials for its flagship product Elores at IDWeek 2018 in San Francisco.Our four abstracts were accepted for poster presentations at the event. These posterscovered the e_cacy results from the plea clinical trial as well as supportive in vitroe_cacy data from an AMR Surveillance study. This was important as we are the first Indiancompany to have conducted this study and present the results at the world's largestinfectious diseases event IDWeek 2018. We believe that this will further nourish Indianresearch ecosystem and help in putting Indian innovations on the global researchlandscape."

Further we participated in the U.S. Government's Antimicrobial Resistance (AMR)Challenge which is a yearlong effort to accelerate the _ght against antimicrobialresistance across the globe. We committed to continue our investments in our therapeuticpipeline of oral antibiotics for treatment of drug-resistant infections. Our most advancedcandidates are currently being evaluated in preclinical studies and data from the animalstudies are expected in late 2019. Additionally we committed to antibiotic stewardshipthrough our PLEA (preserving life of existing antibiotics) campaign.

In a nutshell

With the worst behind us the way forward is only going to get better. We will workvery deliberately to ensure that Venus always remains relevant and current to ourstakeholders and to the changes taking place in our environment.

In closing I want to thank the entire Venus team around the world for their uniquepassion and dedication to our clients and our business.

As we move forward into 2020 I would like to express my sincere gratitude to my fellowDirectors for their commitment and professionalism in contouring Venus's long-term path.My deep appreciation to all our loyal and valuable shareholders for their continuedconfidence and support. My thanks to our suppliers and lenders who continue to be ourpartners in growth.

Warm regards

Pawan Chaudhary