I am very happy to share that your Company has delivered yet another year of stellar
performance during FY 2023-24. Riding on our hard work and sustained efforts, your Company
was able to achieve its highest ever operating turnover of '1694 Crores during the year.
Further, it is my privilege to write to you and present the Annual Report for FY
2023-24. I hope this communication finds you in good health and spirits.
MACRO BUSINESS ENVIRONMENT
The world is facing a period of uncertainty, where we have moved on from the pandemic
to the ongoing geopolitical tensions. On the economic front, despite initial recession
fears, the global economy has displayed resilience, avoiding major recessions or
significant spikes in unemployment. Nevertheless, the outlook for global GDP growth
remains subdued reflecting the ongoing challenges and uncertainties. Amidst this global
backdrop, India is emerging as a bright spot, defining its role in the new world order.
The Indian economy has shown resilience and adaptability, even in the face of global
headwinds.
The next leg of growth in pharma necessitates skill advancement, the use of innovation
and technology, and the establishment of a strong supply chain. The Government has taken
several measures to create and nurture an ecosystem that promotes innovation. This is
reflected in the setting up of centres for excellence to promote collaborative research in
the pharmaceutical sector, and in artificial intelligence, including, for the health
sector. The recently introduced Promotion of Research and
Innovation in Pharma MedTech Sector is expected to herald a transformation in the
pharmaceutical sector towards innovation.
FINANCIAL PERFORMANCE
I am very happy to share that your Company has delivered yet another year of stellar
performance during FY 2023-24. Riding on our hard work and sustained efforts, your Company
was able to achieve its highest ever operating turnover of '1694 Crores during the year.
Further;
• Profit after Tax (PAT) at '461 Crores, was up 22% Y-o-Y
• Cash Reserves at '916 Crores, saw an increase of '144 Crores Y-o-Y
• Cash flow from Operations at '318 Crores, witnessed an increase of '47 Crores
Y-o-Y
We have allocated an overall Capex budget of approximately '600-650 Crores for the
investment projects, most of which are nearing completion. The intended Capex aims to
enhance existing production capacities, widen the product range, and achieve backward
integration for a majority of the products. The Capex will be financed solely through
internal accruals, and the Company will remain net cash positive throughout the process.
When you are in a state of uniqueness, you are allowing your soul to express itself.
You allow others to see a little bit of what makes up your soul. And when people see this,
they want more and want to be a part of it. They feel like they can learn from you because
you have something unique that they don't have. This uniqueness can be a source of
attraction that is magnetic to others who are also unique themselves. You may attract
people who have the same purpose as you in life, so they can work together towards
something greater than they could do by themselves. Your Company has always been uniquely
placed in terms of the geographies it operates or the business model is has carved for
itself.
Your Company has shown benchmark growth numbers across all parameters in the last
decade, and we aim to continue the same in the next decade.
As we embark on a journey into the larger markets of Latam, US, and other regulated
markets, we aim to stick to our proven strategy of catering to the Bottom of the Pyramid,
with an end-to- end business model. This next trajectory of growth will be supported by
focused investment into technology in products, facilities and markets. We remain
committed to driving sustainable growth with strong cash flows.
"The greatest danger is not that we aim too high and miss it, but that we aim too
low and reach it."
- Michael Angelo
At Caplin, we charted a different and unique path which no other Pharmaceutical Company
was even looking for. When the chips were down and we were looking at an uncertain future,
we dared to enter one of the most difficult markets of Africa and Latin America and due to
our hard work and perseverance, today Caplin is among leaders and driving the business
backbone from there.
We focused on staying closer to the customers by acquiring, controlling and integrating
distribution network, which made us different from our competitors and provided a definite
path to sustainable and profitable growth.
"As a company we focus on Good Distribution Practices and fondly call it GDP
- A mainstay of our success"
Building on to our strong foundation, this is the right time to directly approach the
US market under our own brand name.
As a company we have always been very focused towards having control over the marketing
end of things, which is what our entire Latin America business has been built around. Our
newly set up, subsidiary in USA, namely Caplin Steriles U.S.A Inc. is making very good
progress at this point. We have already received 25 state licenses out of the all 50
states we applied for as on 31st March, 2024. We feel confident that shortly we will be
able to secure licenses for all the 50 states. We are hopeful that by Q3 of FY 2024-25, we
will start selling our products directly in the U. S. market.
"Henceforth, our game will be that of marathon and not sprint."
As a corporate citizen, Caplin always follows environmental, social and sustainability
best practices for the best of the stakeholders' interest. We are putting our best foot
forward in terms of ensuring environmentally friendly operations in all our units. We are
also focusing on empowering women in the surrounding areas of our facilities by giving
them more and more of fair and profitable employment opportunities. We are investing in
setting up a healthcare facility in a rural village in Thiruvallur district in the
vicinity of the factory as part of our CSR initiatives. This will be the first facility
which will concentrate on breast cancer diagnosis and treatment (through Mammogram),
cardiac arrest, stroke etc. This healthcare facility is expected to cater to the demand
for quality healthcare with little or no cost to the people at the bottom of the pyramid.
We are consistently striving to leave least possible carbon footprint in form of
industrial waste and natural resource usage.
"We are and will always be a contributor and not a polluter."
We have now embarked on the next stage of growth trajectory and the Caplin team is
fully committed to continue to build on the momentum over the coming year. Our success is
made possible by the hard work and dedication of our teams, the trust of our investors,
and the guidance of our stakeholders. We remain committed to quality, safety, compliance
and operational excellence.
I would like to express my sincere gratitude to the Board for its continued guidance
and support. I also convey my heartfelt appreciation for all our business partners,
vendors and other business associates who have firmly stood by your Company. We deeply
value the faith, guidance and support of all our shareholders and will continue to strive
for greater heights and excellence in the years to come.
Warm regards,
C C Paarthipan
Chairman