We embrace the confluence of innovation, operational excellence and
strategic expansion as the driving force behind our success. We are well-positioned to
harness favourable economic trends and drive sustainable growth in the years ahead.
Building a unique platform
Dear Shareholders,
I am pleased to present your Company's annual report for FY24. As
a trusted pharmaceutical company, we are dedicated to strengthening our global footprint,
expanding our reach to diverse markets and playing a pivotal role in enabling a healthy
future for all.
Developing advanced medicines, fostering strategic partnerships and
investing in innovative technology continue to be our critical priorities. Our commitment
to quality, accessibility and affordability has enabled us to make a meaningful impact on
global health, positively impacting the lives of millions. The year under review has
witnessed a series of significant achievements, marked by robust financial performance,
strategic advancements and a persistent commitment to delivering value for all our
stakeholders.
A resilient global landscape
The global economic landscape presents both opportunities and
challenges. According to the International Monetary Fund (IMF), the world economy is
poised for steady growth, with an estimated 3.2% growth throughout 2024 and 2025. This
optimistic outlook is particularly encouraging for advanced economies, which are expected
to experience a gradual acceleration in growth. This aligns well with our strategic
expansion plans, which focus on establishing a stronger presence in established markets.
Although global inflation is expected to experience a steady decline,
it is important to acknowledge the resilience of emerging markets and developing
economies. This divergence underscores the significance of our strategic emphasis on
diversified market presence, allowing us to adapt and thrive amidst potential economic
variations across different regions.
With resolute confidence, we embrace the confluence of innovation,
operational excellence and strategic expansion as the driving force behind our success. We
are well-positioned to harness favourable economic trends and drive sustainable growth in
the years ahead.
Focused on continued growth
Against a backdrop of cautious optimism in the global economic
landscape, Marksans is poised for growth at a steady pace. We achieved impressive results,
surpassing our revenue and profitability targets with an impressive 18% year-on-year
growth in operating revenue, reaching a record-breaking 2,177 crore. This success can be
attributed to a combination of strategic factors, including increased sales volume across
our product portfolio, successful new product launches, expanded market share in key
regions and a strategic alignment with evolving market demands. Additionally, we witnessed
a 35% year-on-year increase in EBITDA to 459 crore, driven by favourable raw material
prices and successful cost-optimisation initiatives. Throughout the year, we remained
committed to delivering value to shareholders, exceeding our initial revenue target of
2,000 crore. We are confident our investments in infrastructure, product orts to meet
evolving diversification and customer relationships will generate sustainable long-term
value and drive future growth.
Delivering operational excellence and strategic expansion
Marksans' success is rooted in its firm commitment to operational
excellence and strategic expansion. We are successfully capturing the vast potential of
the multi-billion-dollar over-the-counter (OTC) market, achieving a commendable Compound
Annual Growth Rate(CAGR) of 17% over the past seven years. Our dominance in the OTC
segment is largely attributed to our expertise in manufacturing and supplying high-quality
store brands for key retailers, cementing our position as a preferred cost-effective and
erings in key therapeuticoff reliable store brand and to further enhance margin
development.
Despite navigating the challenges posed by the Red Sea crisis, which
has led to increased expenditure, we have proactively addressed supply-chain disruptions
by taking steps to strategise our route and optimise our delivery time. We have bolstered
our operational capacity by welcoming 200 new employees to our plant as part of our
capacity expansion plan. This investment in our infrastructure and workforce has enabled
us to reinforce our position as a market leader, driven by our operational excellence and
ability to thrive in the face of adversity.
The Tevapharm acquisition: A catalyst for future growth
The acquisition of Tevapharm's Goa manufacturing facility is a
significant milestone in our growth journey. This strategically located facility projects
a scalable capacity, poised to double our existing Indian production capabilities. This
futuristic facility is equipped to manufacture a diverse range of products, including
tablets, ointments, liquids and creams. With this acquisition, we have bolstered our
position as a significant global pharmaceutical player, enhancing our production capacity
and strengthening our ability to meet the evolving needs of our customers.
Our strong foundation and future strategy
At Marksans, our customer-centric approach is the driving force behind
our consistent growth. We prioritise the needs of both our existing and new customers,
ensuring that all our pursuits are aligned in their favour. We undertake a market-driven
approach, that strategically tailoring our product portfolio andmarketing market trends
and customer demands. Our diversified product portfolio spanning various therapeutic
segments,enables us to efficiently mitigate risk and capitalise on growth opportunities in
different markets.Our commitment to cost optimisation ensures efficient operations and
strong profitability margins, further solidifying our leading position in the
pharmaceutical industry.
To maintain our competitive edge and achieve long-term success, we are
focused on the following key strategies-
Strengthening the OTC Business:
We aspire to become a major player in the multi-billion-dollar OTC
market. We remain focused on expanding our product like pain management, upper respiratory
and gastrointestinal.
Forward Integration and Acquisitions:
We are committed to forward integration initiatives to further enhance
our profit margins and secure reliable front end distribution capabilities and
infrastructure. Calibrated inorganic growth through targeted acquisitions remains our top
priority. Our strategic focus remains on acquiring established marketing and distribution
companies in growing markets and the EU to bolster our market access and distribution
capabilities. Our strong balance sheet allows us to pursue these strategic acquisitions
and accelerate our growth trajectory.
Continued Product Innovation:
We will continue to invest heavily in R&D to develop a robust
pipeline of innovative products that cater to unmet medical needs and address evolving
market trends. Our perseverance in innovation is anticipated to maintain a competitive
edge and generate sustainable long-term growth. With a strong R&D pipeline of over 76
products, we are well-positioned to drive innovation and growth in the pharmaceutical
industry.
Committed to the community
At Marksans, our commitment to social responsibility extends far beyond
our core business activities. Our robust Corporate Social Responsibility (CSR) policy
outlines our obligation to give back to the communities we serve. This policy is built on
several key pillars including ensuring access to quality healthcare services and
pharmaceutical products for underserved communities, empowering individuals through
education and skill-building initiatives, minimising our environmental footprint,
fostering a positive and inclusive work environment, and establishing open communication
with stakeholders. By adhering to this CSR policy, Marksans Pharma strives to make a
positive and sustainable contribution to society, while ensuring the long-term success of
our business. We believe that strong corporate citizenship goes hand in hand with strong
financial performance, and we are dedicated to upholding the highest ethical standards in
all our endeavours.
A future filled with optimism
Marksans has had a remarkable FY24, achieving numerous significant and
achievements across various segments of our business. Our strong financial performance,
strategic advancements and commitment to adding value to our stakeholders have positioned
us for continued success. We are confident our strong foundation, combined with our
strategic vision and adherence to excellence, will propel us to even greater heights in
the years to come.
We are grateful for your continued support.
Regards,
Mark Saldanha
Chairman