Post completion of the corporate insolvency resolution process, Chennai-based Orchid Pharma has chalked out a detailed strategic plan to achieve significant growth in the short, medium and long terms. The key growth drivers would include scaling up of the existing products and launch of new products, and penetrating into newer markets in both the active pharmaceutical ingredients (API) and formulations businesses.
Writing in the 2022 annual report, Manish Dhanuka, MD, said it has been two years since the firm started functioning under the flagship of the Dhanuka Group and has been embracing the effective organisational change, resulting in enhanced performance and business growth. The firm has undergone significant transformation and accomplished significant milestones during the last couple of years. He said the firm has crossed the revival phase and evidenced various positive developments. During the year, the firm had implemented significant steps to streamline and simplify functioning and bring in greater efficiencies.
“Every passing quarter, our performance improved driven by our focus on sustainable growth. During the fiscal, the company had witnessed reduction of debts, positive trends in sales and operating profits and maintained efficient plant operations. In the future, the company would also continue to evaluate organic and inorganic growth opportunities,” he said.
On the future outlook, the annual report said the objective of the company is to lower earnings volatility, strive for higher predictable and calibrated growth, improve sales, Ebitda margin, and reduce debt. The target is to stay cash flow-positive and expand earnings year-on-year. Orchid Pharma is striving to reverse the direction of the downward curve by ramping up businesses and achieve sizeable growth. “The greatest challenge the company is facing is to achieve growth and profit margins, in spite of the Covid-19 pandemic situation, which has resulted in a significant reduction in antibiotics demand across the world,” it said.
Orchid Pharma has a strong pipeline of products in cephalosporins to cater to the need of various international markets. The company has a solid global presence with a wide customer base, and its manufacturing facilities have the capabilities to manufacture various APIs by unique techniques/emerging technologies, in which different kinds of chemical reactions are involved, it added.