Pushing boundaries J as we evolve
Our focus remains on developing, delivering, and excelling in the competitive
landscape, and seizing upcoming opportunities. We are well-positioned to continue our
growth trajectory and deliver substantial value to our stakeholders in the years ahead.
Dear Stakeholders,
It gives us immense pleasure to share that Aurobindo Pharma made significant progress
in FY24 on multiple fronts. Our unwavering dedication has empowered us to navigate
demanding market circumstances and emerge even more resilient. Looking back on the past
year, from delivering our highest-ever growth in reported sales and profitability to
advancing our sustainability goals, we have achieved a strong feat in the global
pharmaceutical industry.
This is our second Integrated Report, through which we want to present our holistic
approach to our value creation journey, detailing our financial growth, sustainability
advancements, key operational developments, challenges, and strategic initiatives from the
past year. Looking ahead, our focus remains on developing, delivering, and excelling in
the competitive landscape, and seizing upcoming opportunities. With a focus on continual
improvement and proactive adaptation, we are poised to leverage emerging trends and market
dynamics to our advantage.
In FY24, our operational revenue achieved a remarkable 11% y-o-y growth,
reaching ?29,002 crore. This growth was driven by our strategic expansion into new growth
markets, a consistent focus on launching new products, and a stable pricing environment.
Through a series of efficiency- improvement initiatives and the alleviation of pressures
from input pricing, we achieved substantial margin expansion. Further, our resolute focus
and investments in R&D and capital projects helped us gain a competitive edge and
maintain sustained growth. India's robust fundamentals and supportive policies enabled us
to stay resilient and contribute to economic growth in a continuously evolving
macro-economic environment. Our diversified product portfolio and extensive global market
presence played a pivotal role in delivering a strong performance, showcasing the
robustness of our business model and strategies. As we continue to expand our
manufacturing footprint and bolster backward integration efforts, we are well-positioned
to continue our growth trajectory and deliver substantial value to our stakeholders in the
years ahead.
Strategic vision for sustainable growth
In pursuing sustainable growth, our Company has outlined five strategic priorities.
First and foremost, we aim to fortify our supply chain through backward integration,
particularly by commercialising Pen-G and 6-APA facilities. At the same time, we are
expanding our manufacturing footprint by establishing new facilities, which, cumulatively,
can produce over 50 billion doses annually. We are also focusing on extending our
geographical presence and tapping into promising growth markets. Furthermore, we are
gearing up for the future by venturing into biosimilars, with several products in
late-stage development. Lastly, to maintain a well-diversified product portfolio, we have
830 US ANDAs, ensuring our presence across various therapeutic categories. Through these
strategic initiatives, we are poised to achieve sustainable growth and leadership in the
pharmaceutical industry.
^29,002 cr
Revenue from operations
Progressive change for a better future
At Aurobindo, we are committed to sustainable and responsible business practices in
various aspects of our operations across the value chain. Our ongoing rise in adoption of
eco-friendly packaging techniques, resulted in savings of 340 tonnes of packaging
materials in FY24. In pursuit of decarbonisation, we undertook various targeted
initiatives which helped us reduce our Company's carbon footprint by ~16%. We have
successfully implemented solar power generation ca pa bi lities, leading to the generation
and utilisation of 43,000 MWh of solar energy in FY24. Additionally, our proactive
approach to tackling off-site water contamination and combating antimicrobial resistance
(AMR) through wastewater treatment measures at our API manufacturing and formulation
facilities resulted in about 23% reuse of treated wastewater. Our overarching objective
remains responsible management of resources, furthering our commitment to nurture a
healthier ecosystem.
Nurturing growth and cultivating excellence
We believe that cultivating a robust and diverse workforce is essential for
organisational success and growth. Our commitment to diversity extends to actively
recruiting individuals from various backgrounds and promoting inclusivity in all aspects
of our operations.
In pursuit of excellence, we have established collaborative partnerships with esteemed
institutions such as ICFAI University and other renowned entities to foster the
development of emerging leaders. As part of our unwavering commitment to recognising and
rewarding outstanding performance, we have implemented a comprehensive Performance
Management System (PMS) under our Reward and Recognition initiative. This system
meticulously evaluates employee performance, providing a structured framework for
acknowledging and rewarding individuals based on their accomplishments.
To maintain our competitive edge in talent retention, we regularly conduct benchmark
studies, comparing our compensation and rewards practices with those of other respected
pharmaceutical companies. Our ethos emphasises active employee engagement to cultivate a
culture of value, motivation, and empowerment, fostering collaboration for mutual growth.
Furthermore, we prioritise the creation of a learner-centric environment where both
individual and organisational growth are not only encouraged, but also valued and duly
rewarded. Learning stands as a cornerstone of our organisational ecosystem, fostering
continuous development and driving innovation.
Empowering communities for a better tomorrow
As responsible corporate entity, we have positively impacted the lives of 8.59 lakh
individuals through various CSR initiatives ranging from malnutrition prevention to
education and skill development, healthcare, sanitation, rural development, public safety
and sustainable agriculture. Our CSR initiatives are more than just projects; they are a
commitment to making a meaningful impact in the communities we serve. Through Aurobindo
Pharma Foundation, we constantly refine our approach to ensure that our efforts truly
transform lives. From understanding the unique needs of each community to crafting
innovative solutions in collaboration with local stakeholders, we are dedicated to
maximise the effectiveness of our initiatives.
Forward together
As we embark on another promising year, our commitment to excellence remains firm, and
we are ready to reach even greater heights.
As I conclude, I extend my heartfelt gratitude to our dedicated team, esteemed
shareholders, valued partners, and supportive stakeholders. Your ongoing support
underscores our shared vision, and we are genuinely grateful for the trust you have placed
in us. Together, we will pursue our endeavor of making a positive impact guided by a
common purpose of "Committed to healthier life".
Regards,
K. Nithyananda Reddy
Vice Chairman & Managing Director