Dear Shareholders,
I am penning my thoughts with pride as your Company has surpassed all
the expectations and has made foray in the areas which were so far un-charted for the
Company.
The diagnostic equipments division has shown substantial improvements
in this financial year. The revenue of this division has increased exponentially gone up
from Rs. 2551.57 lacs to Rs. 3,040.57 lacs which clearly exhibits robustness of this
Division. The Profits Before Tax (PBT) have also gone up from Rs. 28.16 lacs to Rs. 46.66
lacs which is quite impressive.
However, the fact that trading activities have its own limitations and
likely to get stagnated after some years cannot be denied. Moreover, profits are always
meager in trading activities vis-?-vis manufacturing activities. Over the last few years,
we were on the lookout for acquisition of a formulation unit to make a foray in
manufacturing activities which will boost our revenue as well as the profitability.
In this year, we have entered into a Share Purchase Agreement (SPA)
with one of the promoters of M/s. Derren Healthcare Private Limited (DHPL) whereby we had
agreed to acquire his 70% shareholding in DHPL. DHPL is Company based in Ahmedabad with
state-of-the-art manufacturing Injectables unit which holds WHO-GMP certificate and is in
the process of applying for approvals of EU as well as US FDA. The total outlay expected
for this acquisition is Rs. 1,443.58 lacs and in order to finance the same, we have come
out with Rights Issue for Rs. 4,845.05 lacs.
I take this opportunity to thank all the loyal shareholders of your
Company who have subscribed to the Rights Issue wholeheartedly and made Rights Issue
hugely successful. We have made the entire payment of our obligations under the SPA well
in advance of 1-year period stipulated. The total acquisition is to be completed by 19th
September 2024, the company, will gain ‘controlling Interest only after complete
execution of respective SPA and SSA. The production of injectables is going on in full
swing in DHPL and is likely to achieve 90% capacity shortly which will boost our Revenue
and consequently, profitability.
We have also established our subsidiary in Dubai, UAE in which your
Company hold 52% shareholding. This subsidiary will help us tap Middle East market for
formulations manufactured in DHPL. We have obtained license from FSSAI to enable us to
import food products through our subsidiary in Dubai.
Besides all these developments, I am very proud to inform you that your
Company has formed a wholly-owned subsidiary namely, M/s. Clinigenome India Private
Limited which will engage in establishing clinical laboratories in various major cities to
capture ever-expanding and lucrative diagnostic segment. Our country has substantial
population of elderly people who are in the need of diagnosing their diseases which has
not been sufficiently catered to by the existing network of clinical laboratories and we
intend to tap the same. To begin with, we will establish laboratories in Mumbai, Kolkata,
Delhi, Hyderabad and Chennai. Once established, this business will improve our bottom-line
exponentially.
With all these positive developments, I am sure that this year would be
considered as watershed year for your Company.
As always, I would like to thank you for continuing to repose your
faith in our organization and standing by us. With continued innovation and foray in
different areas and emphasis on quality control etc., the future augurs well for your
Company. Our success so far has been driven by our most important asset our team! I would
like to take this opportunity to thank each and every member of the GENPHARMA family. I
would also like to thank our Clients, Banks, and other Stakeholders without whose
patronage we could not have been where we are.