Executive Chairman’s Message

At Neuland, we are very proud of our quality and regulatory track record. Understanding that quality is core to our business and future success, the necessary investments continue to be made in strengthening our quality processes. This includes investment in digitisation and automation.

Dr. Davuluri Rama Mohan Rao Executive Chairman
Dear Readers,

Looking back on the past year, I am proud of the way we kept our employees safe and well whilst ensuring business continuity. As an API manufacturer and supplier to the global pharmaceutical industry, upholding quality is imperative in our business and has been foundational to Neuland’ s approach. In this regard, I am particularly pleased to share that customer satisfaction for our products remained high, endorsing our unwavering commitment to quality and compliance.

While the financial results were below our expectations for the year, we have to consider the continued impact of pandemic-induced challenges and geo-political challenges towards the end of the financial year. Our performance also needs to be evaluated in the context of our business being impacted by certain business factors beyond our control. In our CMS business, one of our older molecules witnessed a sharp de-growth on reaching the end of the patent in key markets. Lower offtake for certain GDS products due to inventory accumulation at the customer’s end dampened our GDS revenue. While these factors did impact our revenue, it is pertinent to mention that we have not lost any customers in these pandemic-hit years. Rather, our customer base has further strengthened, reiterating our customer satisfaction levels and the credibility and trust we have built in the market.

Over the last three decades, Neuland has come a long way. We started with less than 100 employees and our turnover was then around ₹30 lakhs. Today, we have grown to become a listed entity with over 1,500 employees and a turnover of &8377;951 crores, meeting the chemistry needs of the global pharmaceutical industry. A rapidly evolving business environment is placing high demands on agility and continuous development – for Neuland as an organisation and also for every employee. To drive greater agility in our business, we have identified several strategic priorities to be realised over a three-five year period. As we progress on our strategic priority roadmap, it will help us reach another inflection point in our growth journey.

To successfully implement our business strategy and safeguard the long-term interests of the Company, a strong leadership team with relevant experience and expertise is essential. Our leadership team is currently the best we have ever had in our operational history, and we are committed to building further on this differentiated strength. The emphasis is on identifying and nurturing future leaders from within and driving succession planning. We also continue to focus on driving distributed leadership where individual employees and teams are given authority and responsibility to largely make decisions themselves.

In the healthcare industry, quality is non-negotiable. As the Indian API industry seeks to strengthen global operations, strong adherence to international standards becomes even more pivotal. Quality, I firmly believe, is a mindset. When organisations foster a quality culture, the benefits are several. Lower costs due to minimal product rejections and, together with the right infrastructure, the strength to reach out to markets across the world are just some of the advantages when quality is deeply ingrained within the business. At Neuland, we are very proud of our quality and regulatory track record. Understanding that quality is core to our business and future success, the necessary investments continue to be made in strengthening our quality processes. This includes investment in digitisation and automation.

At Neuland, sustainability ethos guides our strategy with the aim to deliver better value for all our stakeholders. We are closely focused on minimising our environmental footprint, supporting our local communities, and sourcing responsibly from a sustainable and resilient supply chain. The Company has been actively supporting the surrounding villages with infrastructural needs. In the last year, we spent time and resources to help on the healthcare front too. We further demonstrated our commitment to embedding sustainability into our business with the commencement of digitisation of our enterprise risk management processes.

Our people are central to our success, and we remain committed to investing in their health, safety and personal growth. In these exceptional times, we have worked tirelessly to introduce new measures and protocols to help protect our people from COVID-19.

953.2 Crores

Total Revenue

63.5 Crores

Profit after Tax

Looking forward, I firmly believe that Neuland is well-poised to be a stronger player in the API industry, both for generics as well as innovators. The investments that we are making for the future, our credibility within the pharmaceutical industry, our strong product pipeline, and our dedication to our strategic priorities will enable us to unlock growth opportunities and deliver sustainable value.

On behalf of the Board, I would like to thank our customers and shareholders for placing their trust in us and for their constant support. I would also like to take this opportunity to thank our employees for their hard work and commitment. Neuland is committed to working together with all stakeholders, pursuing its objective of making quality pharmaceuticals and delivering meaningful contributions to society.

Warm Regards,

Dr. Davuluri Rama Mohan Rao Executive Chairman