Vice Chairman’s
Letter

Well positioned to capitalize on
opportunities

"Notwithstanding the challenges of the times, we continue to think from our heart and act with our head – to care for our people, our patients, our communities and all other stakeholders and partners."

Kamal Sharma

Dear Shareholders,
It is my privilege to write to you and present our first ever Integrated Report in FY 2020-21.

The COVID-19 pandemic has had a serious and unprecedented impact across the economies and society in general. Throughout this challenging period, we reacted very quickly to prioritize health and safety of our people and continued to provide a reliable supply of medicines to the patients across our markets.

I am enormously proud of how resilient and adaptive our people and business have been in the face of this global pandemic. We proved the solidity of our strategy, the agility of our teams around the world and the constancy of our commitment towards patients. These have helped us quickly adapt to new ways of being stronger together and gain greater momentum in our key therapy areas while improving margins.

Our performance in the year FY 2020-21 continues to stand robust, both financially and in terms of meeting and exceeding our stakeholders’ expectations. The business cemented its strength with our persistent effort to enhance profitability by improving upon the overall quality of the business.

With 15 new launches and disciplined business development in the US, we continue building on our Women’s Health business in North America and ramp up in Albuterol and an increase in market share for Levothyroxine. We are also glad that following the NDMA concern, we are close to 50% share for gGlumetza. India business continues to be the second largest, contributing 35% to the topline. The five key therapies including Cardiology, Anti-diabetes, Respiratory, Anti-infective and Gastrointestinal contributes 76% of total sales.

Kamal Sharma

We have been working towards building our reputation on quality, which is embedded in our philosophy, people, and processes. While FY21 was a year when no USFDA inspection happened at any of our India manufacturing sites, we continue working towards further improving our quality and compliance practices.

During the year, we continued to launch new products and grow our pipeline. We have made significant progress with our complex generics’ platforms across Inhalation, Biosimilars, Injectables and Women’s Health products.

We have taken several initiatives on cost optimization to contribute towards our margins in FY22. These include optimizing procurement, renegotiating contracts, rationalization of salesforce in America, among others.

While we have performed well this year, we have started FY21-22 on an optimistic note. Our disciplined approach to leverage management ensures we maintain a strong balance sheet that gives us the financial flexibility to support future growth. With our commitment to deliver positive outcomes, exercising disciplined cost management and maintaining strong cash flow, I am very excited about the opportunities ahead for our business.

I would like to thank all our stakeholders, including employees, customers, partners, bankers and shareholders, who collectively enable us to create value by helping us to focus on our strategic priorities and leveraging our strengths. Thank you once again for your trust, confidence, and support.

Best regards,

Kamal Sharma Vice Chairman