It is currently
ranked 39th in Indian formulations market concentrate in specialty formulations.
Position improved from # 45 in 2013 to #39 this year. Company strategy is to
manufacture value added products in niche therapy spaces addressing unmet
patient needs. It Improved its NPM from
8% in 2010 to 19% in 2014, ROCE from 14% in 2010 to 47% in 2010. Currently company is 5th, 13th and 24th in
the ophthalmological, dermatological and cardiological segments respectively in
India
Company generates
more than 80% from branded generics. Company
invests around 6% of sales into R&D and currently has 350 employed in
R&D. 119 products launched in the last 9 years. Company vision seems to be clear when they
say they want to be best not biggest and would like to be innovative
(profitable) instead of being fastest. Strategy
is to concentrate on unmet patient needs and not play the volume market.
Company gets
around 67% of its revenues from Asia and Africa and the rest form India. Export
revenue grew by 32% and domestic by 27%. For domestic
market, Company now has around 2500 MRs selling around 160 products. Growth has
been good in all the segments. Compared
to last year, company maintained its rank at 5 for ophthalmology and improved
from 15th to 13th in Dermatology and from 28th to 24 in Cardiology. For Asia and
Africa, company has around 450 MRs and around 200 products. Company follows
direct marketing strategy employing its own force instead of dealing with
local/regional players.
In regulated markets
they have 2 approved ANDAs out of which 1 was launched. 21 ANDAs are under
approval process. Company has setup front end sales and marketing team in US.
Company expects that in next 3 yrs there will be 10 to 12 products in this big
market.
Revenue increase
realized through new product launch, growth in volumes and currency
realization. Economies of scale has
kicked in which resulted in lower material cost. Employee cost increased but
the revenue productivity per employee also increased by 9%. EBIDTA and NPM both
increased due to niche product additions. Company has foreign currency loans at
lower interest cost which provides natural hedge to the currency fluctuations.
For the year on
consolidated basis company sales was at 1222cr and profit after tax was at
233cr. Operating cash flow was at 212 cr. Of this around 134cr was spent on capital
expenditure for expansion which should contribute to future growth.
Overall it has
been an impressive performance and the company is expected to do well at least
for the next 3 to 5 years.
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