Dear Shareholders
Greetings from Orchid Pharma and wishing the best for all of you.
I am delighted to share with you, my message, through this annual
report, highlighting Orchid's performance during the last FY and sharing plans for the
future.
The year under review has been about change, resilience, about
resetting priorities and the drive towards the achievement of our dreams. This is true not
just for Orchid Pharma; this is also the story for most of humankind since the Coronavirus
pandemic manifested itself in 2020.
I am pleased to share that your company has done well in a volatile
global environment in the year gone by. Your company has registered a growth of 21% in
revenue and 56 % in EBIDTA during the FY 22-23 over the previous year. Every passing
quarter our performance improved driven by our focus on sustainable growth. I am glad to
inform that this is the first year since the implementation of the Resolution Plan when
your company has registered a Profit. These results have helped the company to come out of
indebtedness, and this will provide stability to the company.
We feel that our efforts to turnaround have yielded positive results,
and the growth demonstrated by the company are a result of increasing the capacity
utilization, optimization of the manufacturing operations, and increased focus on Sales
and Marketing. While we continue to make efforts in cost optimization, we have increased
focus towards increasing capacities by further debottlenecking the manufacturing
capabilities, and, by investing in the incremental machinery and utilities. These
initiatives will result in increasing our production capacity significantly with minimal
investment.
In addition to this, your company has worked out extensive investment
plans in the following areas:-
1. Implementation of the Project to Manufacture 7ACA, the key input Raw
Material for our products, this product is proposed to be manufactured in the Union
Territory of Jammu and Kashmir, where the company has identified cost advantages for this
investment. The company has already been awarded PLI benefits for setting up this project.
The company has completed a tied up for the technology of this product with a leading
Biotech company.
2. Developing and Filing of the new DMFs and ANDAs in the Regulated
Markets for the products going off Patent and also making efforts to file an ANDA at NCE-1
stage.
3. Invest at the Alathur facility in the new Manufacturing Blocks to
manufacture some of the existing products at a very large scale to improve the cost
leadership of the company in these products.
To implement the above projects, your company has been able to raise
money successfully through QIP and we would like to thank the Investors, who have reposed
confidence on us. This Capital combined with our proposed Investment plans has the
potential to take Orchid on a path of exponential growth.
We believe that the company has gone through a transformation in the
last three years, with rejuvenated energy among the whole team. The existing team with the
newly infused talent is working hand in hand to develop innovative processes and
implementing latest technologies. There is an increased effort to upgrade the facilities
with focus of regulatory compliance. The spirit of teamwork and co-operation is high,
which is resulting in fast and efficient execution in all areas.
All the above achievements would not have been possible without the
commitment and dedication of my colleagues and fellow employees at Orchid. I would like to
express my gratitude to each one of them, who have contributed to building the Orchid
culture of hard work, honesty, and sincerity.
I would like to thank our Board of Directors for their guidance,
motivation and support. I am also grateful to them for engaging in meaningful discussions
during the Board Meetings.
We are grateful to the Central and State Governments and the Central
DCGI and State FDAs for their support to the Company's business plans. Your Board places
on record their appreciation of the support provided by the customers, suppliers, services
providers, medical fraternity and business partners.
We are thankful to the shareholders for their support and
encouragement. The Directors and the Management acknowledge the co-operation extended by
the Shareholders in approving all the resolutions presented during the year. We wish a
very happy and prosperous times ahead for all of you.
Manish Dhanuka
Managing Director