I am delighted to have the opportunity to present the Annual Report of the Company
which encapsulates our progress in what has been a landmark year for us on multiple
fronts. Despite the challenges encountered during the year, we have been able to execute
our strategy with remarkable agility, and this is reflected in the success in many of our
efforts.
If you look at the macro trends in the industry, they continue to provide tailwinds for
our sustained growth as a company. Some salient trends are:
- Reliability of supply and consistent quality being the key criteria for customers'
decisionmaking
- Opportunities are opening up to replace suppliers from regions such as China
- Focus on the technical prowess of a company as a key differentiator, especially in
the CRAMS business
On each of the above counts, Solara is well-positioned to benefit from the
opportunities and accelerate its growth.
Our focus on ensuring world- class quality and reliable supply chain performance has
created further opportunities for us to enter new markets, scale up business with new
customers and increase the share of wallet with existing customers. Our engagement with
large pharmaceutical companies for growing our CRAMS business is starting to gain
traction, which augurs well for our future.
A MILESTONE MERGER
Before I delve into some of our key achievements in FY 2020-21, I would like to write
about a crucial milestone for Solara - the recently announced merger with Aurore Life
Science, Empyrean Lifesciences and Hydra Active Pharma Sciences which makes us the second
largest API/CRAMs player in India.
Aurore is engaged in developing a wide range of generic pharmaceutical products. The
proposed merger will facilitate focused growth and operational efficiency. This Merger
enhances business potential and increases the capability of Solara to offer a wider
portfolio of products with a diversified resource base and help develop deeper client
relationships. Besides, it will add to our R&D capabilities and lead to greater
economies of scale. The move is EPS accretive immediately and fits in with the other
strategic priorities of Solara. Post the necessary shareholder and regulatory approvals,
we will begin executing and realising the synergies from the merger.
THE YEAR THAT WAS
We started FY 2020-21 under extremely tough circumstances, with the first wave of the
COVID-19 pandemic threatening our employees' wellness, our supply chain, and creating
uncertainty in the distribution network and thereby our ability to deliver to our clients.
The Solara team rose to this challenge, and I am immensely proud of the fact that every
employee of the Company went beyond his/her call of duty to ensure that we were able to
function smoothly and fulfil our commitments to our customers and to the larger society.
We ensured that our employees' were safe through various initiatives targeted at their
physical and mental well-being.
Through this difficult period, we executed our business continuity plans and safety
plans to minimise disruptions in our services to our customers. We also supported the
communities in our locations through the supply of ventilators, sanitisers, dry rations,
and other such needs to help pandemic-impacted neighbourhoods. We continue to take
employee safety and wellness as our topmost priority and we are taking all measures to
provide a safe working environment across all our locations. Our employees have seamlessly
transitioned to working in the new normal' and their dedication has made it possible for
Solara to further endear itself to its partners because of the reliability and quality of
its goods and services.
In spite of the impact of the pandemic, we were able to complete the construction and
operationalise our greenfield facility at Vizag.
We commissioned Phase 1 of the Vizag facility in Q2 FY 2021, and commercialised and
scaled up the facility in the second half of the year. With the commissioning of the Vizag
facility, we have significantly strengthened our Ibuprofen business with our ability to
deepen our market presence and customer reach.
OTHER SIGNIFICANT GAINS
The year also saw us enhance our regulatory filing velocity.
We have more than doubled our regulatory filings in the US and EU markets compared to
FY 2019-20. We hope to maintain this momentum in the coming years on the strength of the
changes we have implemented in our R&D function.
Our signature strength in generating cost efficiencies continued unabated during FY
2020-21. In both sourcing and operations, our teams did an exceptional job in reducing
costs and optimising resource use. This has enabled us to record consistent growth in
margins over the year.
In FY 2020-21, we have also infused strength and vigour in the leadership as part of
the planned transition process.
I am delighted to work with a high-calibre leadership team as we embark on an exciting
future together. All in all, despite the unique challenges of FY 2020-21, we have been
able to sustain our growth momentum.
RIGHT TO WIN
I would like to briefly elucidate how we are executing our long-term strategy with a
clear vision to be one of the top global API/CRAMS players.
I had alluded to some macro developments in the opening paragraph. To
disproportionately benefit from the macro tailwinds, we have decided on some key strategic
pivots to drive our growth.
The first pivot is to ensure that we differentiate our upcoming product portfolio so
that we have the Right to win' on a sustainable basis. To this end, we have refreshed our
product selection process, where we have taken special care to balance market/business
metrics with technical/science- based differentiation. This balanced approach will allow
us to invest our R&D resources in products that further differentiate Solara, create
long-term customer stickiness, and enables sustainable, profitable growth.
The second and an equally important pivot is to undertake programmes and initiatives
that will deepen the talent pool and employee engagement. To accomplish this, we have
initiated a host of measures, including those that enhance the Company's image as a
purpose-driven organisation, rejuvenate our HR processes, and structure our approach to
talent acquisition and development.
I fundamentally believe that the right talent working in the right culture and
executing the right strategy will enable us to create greater value for our stakeholders.
I take this opportunity to thank the Board, shareholders and all our stakeholders for
investing their trust and confidence in us.
Thank You.
Bharath R Sesha
Managing Director and CEO