ALKEM LABORATORIES Chairmans Speech

Dear Shareholders,


When we commenced our journey decades ago, our objective was simple: to manufacture and deliver quality medicines at affordable rates that could benefit millions of people across the world. That philosophy has inspired us to undertake multiple initiatives; and continues to guide us, as we create new pathways to progress.


Our efforts have translated into encouraging outcomes. From a modest start as a regional pharmaceutical company, we now feature amongst the top five pharmaceutical companies in India. Apart from having a strong foothold in the domestic market, we have also expanded our presence in over 50 international markets. A large part of this credit goes to our dedicated and motivated workforce that has played a pivotal role in making Alkem what it is today.


During the financial year 2017, we achieved healthy mid-teen growth in consolidated operating revenues, with an improved margin profile. It is deeply satisfying to note that despite changes in the regulatory scenario and other temporary industry hardships, our key brands continued to deliver healthy growth in India’s pharmaceutical space. At the same time, our international business continued to grow during the year with encouraging market share gains in the existing products as well as contribution from new product launches.


We have continued our focus on R&D initiatives to develop a differentiated portfolio. In the coming years, we will continue to invest more in research programmes and strengthen our product offerings with consistent focus on quality standards. We are committed to deliver high quality drugs and adhere to regulatory compliance and hence, have continuously invested in our people, systems and processes.


In all these years, we have been intuitive in our ability to foresee macro trends, and agile in responding to them. This strategy has helped us navigate through the challenges in the global business scenario. Going forward, we will continue to invest ahead of the curve in building the competencies of our people and further sharpening our execution capabilities. While global markets, consumer preferences and healthcare needs will continue to transform, our focus will be on expanding our footprint, foraying into new therapeutic segments, investing in capacities, building alliances, and enhancing operational excellence.


It gives us immense pleasure that along our way to a successful year, we were able to meet the needs, positively impact and protect the rights of our diverse stakeholder fraternity. This includes our employees and local communities where we operate, among many others.


Our consistent strategy and strong execution, supported by the guidance of all our stakeholders, will enable us to improve upon our performance in the coming years.


Warm Regards,


Samprada Singh, Chairman


Emeritus Basudeo N. Singh, Executive Chairman

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