Building for the long term
Our presence in key markets, coupled with the comprehensive play in animal
health, presents exciting opportunities for our Company. While organic growth remains the
priority, we are alert to seize any opportunities through strategic acquisitions in
formulation and APIs to strengthen and expand our footprint.
Dear Friends,
It is my privilege to write to you and present the annual report for FY24. While the global
environment remains fluid, the economies of many countries have shown some recovery and seen less volatility
as compared to the last year.
Inflation however remains elevated in many parts of the world and continues to be
an area of focus for most of the governments.
In our business, supply chains, which had been significantly disrupted after the COVID-19 pandemic, are
becoming more resilient. Nevertheless, several geopolitical issues continue to be a cause of concern,
requiring companies to be more agile and responsive.
~USD 51 bn
The global animal pharmaceutical
market, valued at ~USD 38 billion in 2023, is projected to grow at a robust CAGR of
around 8%, reaching ~USD 51 billion by 2027.
investments in quality and safety systems have been recognised and certified by
multiple agencies like the USFDA, WHO, EU GMP and others. All our units remain committed
to actively manage our environmental footprint and meet the stated ESG goals. We have
established a comprehensive framework
for managing all stakeholders ensuring the highest standards of compliance and
governance.
Turning our attention to the
sectoral landscape, the global animal pharmaceutical market, valued at ~USD 38 billion
in 2023, is projected to grow at
a robust CAGR of around 8%, reaching ~USD 51 billion by 2027. This upward trajectory is
driven by the increasing trend of pet ownership, heightened awareness among livestock
farmers and a rising demand for protein. Increased pet ownership fuels demand
for veterinary services and pet healthcare products. Additionally, a growing emphasis
on preventive healthcare spurs demand for vaccines, diagnostics, and similar therapeutic
products.
All these factors continue to provide the structural
momentum for the industry we participate in.
Last year our Company had initiated a series of initiatives to improve profitability
and become more competitive for the long term. In the formulations business we have
reshaped the product portfolio, expanded our presence in Phyto solutions and accelerated
new launches. A combination of judicious pricing and product
selection have yielded
positive results especially in Europe, which is our largest market. Our API operations
rolled out a comprehensive programme for improving operational efficiencies and
commercialisation of new products. I am pleased to report significant progress in this
area, which has translated into superior financial performance.
As a result of these transformational initiatives, the EBITDA of our Company has
improved substantially, although revenue growth is muted due to discontinuation of some
businesses as part of the strategic plan. We are
now well-placed to accelerate our growth on the back of strategic investments in
R&D, and a competitive cost base. Additionally, we have strengthened our
go-to-market capabilities through increased on ground presence in key markets like India
and Europe.
Our unique position in Animal Health, our international presence, high standards of
governance and progressive people practices have strengthened our ability to attract
top-tier talent. Our
Our presence in key markets, coupled with the comprehensive play in animal health,
presents exciting opportunities for our Company. While organic growth remains the
priority, we are
alert to seize any opportunities through strategic acquisitions in formulation and APIs
to strengthen and expand
our footprint.
I wish to extend my heartfelt gratitude to all our employees who have demonstrated
enormous resilience and
drive to steer our Company towards greater success. I also acknowledge our
distinguished Board of Directors for their continuous guidance during this crucial phase.
We have received tremendous support from all stakeholders including
financial institutions, government agencies, supplier and other partners. I am grateful
for their contribution. Finally, a special thanks to all our shareholders
for your confidence and encouragement.
Warm regards,
DR. KAMAL K SHARMA
Chairman