We expect strong growth in the CDMO/ CMO segment over the medium to long term, driven
by new chemistries and customer engagements. The prospects for API and intermediates, and
Xanthine segments also remain impressive.
Dear Shareholders,
At Aarti Pharmalabs, we are committed to transforming global healthcare with
innovative, high-quality solutions, positively impacting millions of lives worldwide.
Reflecting on FY 2023-24, we made substantial progress in enhancing our operations,
expanding our portfolio and capacities, and integrating new capabilities.
The year under review presented significant challenges, including geopolitical
conflicts in Europe and heightened tensions in the Middle East, supply chain disruptions,
and high energy and commodity prices. Amidst this uncertainty, India stood resilient,
emerging as a beacon of hope and optimism. FY 2023-24 saw India's economy expanding by an
impressive 8.2%, making it one of the fastest-growing economies in the world. The growth
momentum is expected to continue, with significant potential for further expansion.
The global pharmaceutical industry experienced significant shifts in medicine usage and
spending growth in 2023, laying the groundwork for robust expansion. Post-pandemic,
despite reduced spending on vaccinations and COVID-19 therapies, the industry showcased
resilience by embracing novel therapies and increasing overall medicine usage. Medical
science has transitioned from traditional chemistry to a new world of biologics, advanced
diagnostics, and personalised medicines. Demographic shifts, including ageing populations
and evolving disease profiles, are contributing to the rising demand for pharmaceutical
products.
The Indian pharmaceutical market is recognised for its generic medicines and affordable
treatments. The availability of a skilled workforce, talented scientists, and focus on
R&D, enable India to produce and supply low-cost medicines worldwide. Government
initiatives and supply chain shifts due to the China+1 strategy further benefit the Indian
players. As the third-largest API producer by volume, India significantly contributes to
the global market. The API market is poised for robust growth, driven by initiatives like
Atmanirbhar Bharat and PLIs, reducing dependence on China. The biosimilars and biologics
segments are also expanding rapidly due to patent expiries and substantial R&D
investments. The contract research and manufacturing services (CRAMS) market is expected
to grow at a CAGR of 10.8% from 2023 to 2028, offering varied services at competitive
rates.
We are well-positioned to benefit from these opportunities. Our strong focus on
innovative research, advanced manufacturing capabilities, and strategic investments align
perfectly with industry trends.
Our expertise in R&D and scaleup capabilities with advanced process technologies
allow us to handle projects from gram scale to larger commercial supplies. Our
competitiveness is further strengthened by a backward integration strategy, ensuring a
stable supply of key raw materials and reducing dependence on China. Our commitment to
quality, sustainability, and regulatory excellence makes us a preferred partner for global
innovators and leading pharmaceutical companies worldwide.
We expect strong growth in the CDMO/CMO segment over the medium to long term, driven by
new chemistries and customer engagements. The prospects for API, Intermediates, and
Xanthine segments also remain impressive. The ongoing greenfield project i.e. multipurpose
plant at Atali is expected to be commissioned by the end of FY 2024-25 and will augment
our capacity to serve customers. Presently, we have utilised only a small portion of the
available land, leaving ample space for future expansion.
We are setting up a solar power project in Akola, Maharashtra, expected to come on
stream in the second half of FY 2024-25. We are introducing new green boilers that operate
on bio-briquettes instead of conventional sources.
As a responsible corporate, we strive to foster sustainability and drive positive
change in our planet and communities. We are setting up a solar power project in Akola,
Maharashtra, expected to come on stream in the second half of FY 2024-25. We are
introducing new green boilers that operate on bio-briquettes instead of conventional
sources. Our focus on adopting greener technologies reinforces our efforts to reduce waste
generation and environmental footprint.
Our people are our biggest assets, and we intend to create a conducive workplace
through meaningful initiatives that promote employee welfare and development. Our focused
endeavours in healthcare, education, and rural development, are building resilient
communities and paving the way for an inclusive future. As India evolves into a hub for
pharmaceutical research, manufacturing, and innovation, it stands poised to shape the
future of healthcare worldwide. We remain steadfast in our commitment to innovation,
quality, and sustainability, contributing to the industry's ongoing success and delivering
long-term value effectively.
I would like to thank our Board of Directors, customers, employees, partners, and all
other stakeholders for their constant trust and support. With prudent strategy execution,
we remain dedicated to enhancing lives and delivering enduring value for all.
Warm regards,
Rashesh Gogri
Chairman.