Ceo's Desk

It gives me great pleasure to inform you that we had a satisfactory financial year in spite of some tough macro economic conditions. In my previous CEO letter at the start of the year, I had talked about Emcure being poised to take a big leap.

You will be happy to know that year on year sales have grown by 25% over the previous year. At the same time, we have consciously monitored our spending, as a result of which, net operating profit has doubled year on year. Given our track record, I am again very optimistic and bullish about the New Year.

We continued to improve our MAT ORG IMS ranking. We are currently at 15th rank. We had several new launches this year that did very well- especially, Infen, Proxym, Explode, Sevcar, Emfolic DHA. Overall, we maintained our leadership in our strong segments such as gynaec, cardio vascular and nephrology and increased our focus on high growth segment such as pain management, wellness, oncology and gastro. We continue to enjoy tremendous credibility and respect with the physician community due to our focus on technology and quality.

Emerging Markets

In the emerging markets, we had a great year with exponential growth in turnover. The sales were driven by a good mix of ARV products as well as technologically differentiated products. With 95 new registrations, we have expanded our reach to 20 new countries. Our strategy is focus on niche and profitable segments with differentiated products like chiral molecules, biosimilars, oncology and nephrology.

Last year I had mentioned that 08-09 would be year of consolidation and execution. I am happy to say that we have delivered on our commitment. Regulated business has grown by 175%. We will see significant growth in volumes in solid orals, injectables and oncology. We take immense pride in the fact that for this market, we have partnered with the top branded and generic companies.

Our Subsidiaries

Zuventus continues to be a brand builder and maintain its share of the highly competitive cephalosporin market. Since antibiotics margins are getting squeezed, the strategy for 09-10 is to focus on the chronic segments.

Emcure USA continues to make breakthroughs with its focus on research and innovation. We got approval for a couple of niche and profitable ANDAs this year.

Gennova has added to our pride significantly by its foray into the malaria vaccine research program in association with Bill Gates and Melinda Foundation. We now have Prof Ganguly on the Board of Gennova and with his able guidance; we hope to introduce several more innovative products this year. Elaxim continues to do very well and was administered successfully to over 4400 patients this year.

As a company, employee welfare and growth continues to be focus. We want to make sure that all our Emcureans have a challenging work environment as well as pride in being associated with a technology driven company. We continued our CSR programs in HIV, anaemia. In addition, we have participated in several health camps and significantly contributed to national calamities like Bihar floods.

Very soon, I will be sharing some good news with regarding a strategic alliance with a top global company for our domestic, emerging and regulated markets business. This alliance will be a great source of pride to all Emcureans, I assure you.

As I mentioned, 2009 is going to be a difficult year for global economy, but we are confident of sailing through these turbulent times and will record growth higher than the average industry growth. We expect to increase our exports significantly and to continue our profitable growth in domestic markets. We are also excited about our new facilities, Oncology and Jammu, coming into operation next year. We will continue our focus on execution. We want to make sure that everyone associated with Emcure---whether it is our employees, physician community, shareholders and other associates---continue to be passionate and excited about our vision---to be a technologically driven company that provides affordable and quality healthcare.