Dear shareholders,
I am delighted to piece this narrative as Ind-Swift reported one of its
best performances in recent history. Undeterred by global uncertainties and elevated
inflation, your Company registered a high double-digit topline growth. We reported the
highest EBITDA in our history and a multi-fold growth at the bottom line. Our product,
marketing, pricing and operational strategies synchronised wel to script this momentous
achievement. I am thrilled with the team's exemplary efforts in uplifting the Company a
few notches higher.
The year's high point was that we were honoured with the "Asia's
Best Company of the Year 2022 Award by Berkshire Media LLC, USA. It endorsed the relevance
of our business strategies and their execution.
Coming off an exceptional year, we aim to carry the momentum ahead to
sustain our value-creation commitment to our stakeholders.
The evolving landscape
Globally, the pharmaceutical sector will continue to grow with
region-specific aberrations. While the US markets are not as attractive as before owing to
heightened competition, the RoW markets have emerged promising.
Globally, volume is projected to grow 1.6% in days of therapy through
2027, driven by Asia-Pacific, India, Latin America, Africa/Middle East, and China, all of
which are expected to exceed global volume growth.
Having delivered vaccines to the world during the pandemic, India has
further strengthened its position as the world's pharmacy. In the future, India's
prominence in the global pharmaceutical space is only expected to amplify as the world is
looking to India as an essential research hub supporting global innovation aspirations.
Hence, going forward, the key to success will depend on regulatory
simplification, increased industry-academia collaboration, and a strengthening innovation
mindset. This will pave the way for the industry to transition from 'Volume to Value'
leadership in the coming years.
Unfortunately, India's march to global dominance in the pharmaceutical
sector is thwarted by its significant dependence on API imports. The Government has and
continues to play a defining role in shoring the nation's Atmanirbharta in the API space.
As one of India's leading API manufacturers, I believe Ind Swift has a
vital role in shoring India's pharmaceutical strength. Moreover, as we export our products
to more than 70 nations worldwide, we can also make an appreciable contribution to the
healthcare system of these geographies.
Our outline for the medium term
Over the recent past, Ind-Swift has made significant strides in its
transformation journey. We will focus on medium- term growth, the ultimate measure to
generate value. To achieve this, we will invest in strengthening our competitive
advantages; be disciplined in capital allocation and stay diligent in our pursuit of
efficiencies.
API business: We will expand capacities for existing molecules which
should make our products more competitive in the global landscape. We will enhance and
widen our product basket by expanding our presence in several therapeutic areas, including
anti-cancer
"We will remain focused on medium-term growth, the ultimate
measure to generate value. To achieve this, we will strengthen our competitive advantages,
be disciplined in capital allocation and stay diligent in our pursuit of
efficiencies."
Molecules. In addition, we will widen our presence across geographies
even as we work towards growing our wallet share with existing customers.
We will work deliberately towards bringing in cost efficiencies by
improving our processes and optimising our utility consumption. Further, we will be
relentless in reducing our environmental footprint by optimising the consumption of
natural resources, reducing our carbon footprint and increasing our solvent and catalyst
recycling capabilities.
CRAMs vertical: Over the years, we have made appreciable progress in
our CRAMs vertical. This is critical as it showcases the growing trust of international
pharmaceutical customers on the Company's innovation expertise, operational efficiency and
delivery commitment. Some of our CRAMs collaborations with overseas customers (for API and
intermediates projects) have reached to commercial stage and we expect to commence
commercial desptaches shortly. To expand our horizon in the CRAMs space, we have
undertaken various material science (Non-pharma) stream projects ranging from initial
process development to commercialisation. These new projects should start generating
returns for the Company in the next 12-18 months.
Forward integration: We are moving up the pharmaceutical value chain -
from APIs to Formulation. As a decisive step in this direction, we entered into two joint
ventures in FY23 to launch finished dosages. This strategic initiative is shaping up quite
well and should start delivering returns in the near term.
These efforts will make a positive impact on shoring the Company's
bottom line.
I am very confident that as our business drivers take deeper root
within, the quality of our business will evolve, translating into even better financial
outcomes and stakeholder value.
In closing, I express my sincere gratitude to my fellow Directors for
their commitment to the Company's progress. My deep appreciation to our shareholders for
their continued confidence and support. My thanks to our suppliers and lenders, who
continue to be our partners in growth. Lastly, our management team and staff for their
valuable and ongoing dedication in contributing to Ind-Swift's growth.
Warm regards,
N. R. Munjal
Chairman & Managing Director