supriya pharmaceuticals ltd Management discussions

SUPRIYA PHARMACEUTICALS LIMITED ANNUAL REPORT 2002-2003 MANAGEMENT DISCUSSION AND ANALYSIS Overview 1. Supriya Pharmaceuticals Limited (Supriya) values its contribution to b its customers and medical profession. The company has therefore planned its strategic growth, keeping in view the expectations of its customers and medical profession. Supriya has state of the art manufacturing facilities, which are regularly upgraded from time to time with changes in technologies and general practice. Semi Synthetic Penicillins (SSPs) contribute a major part of companys business. Supriya takes care to remain a quality conscious and cost efficient producer. Industry Developments Pharma industry in India is witnessing a metamorphosis phase. The industry is gearing up for WTO requirements and changes in the patent regimes. It will be easier for well-organized players to take a share of the market. The unorganized players are likely to face difficult times ahead. Those who are committed to stringent quality norms, adapting changes within the industry including technological advancement, changing regulatory environment, etc. stand better chances to grow. Risks & Concerns Supriya has identified those threats that face the industry, and has already initiated step face for delisting its business. Developing new production processes & designs, strengthening existing infrastructure to increase productivity and reduce operational costs are part of this endeavor to overcome risks, gain advantage in the changing market place. Fresh investments in upgrading facilities have been considered. Quality And Cost Management Supriya is a cost effective quality producer. The company has aims to achieve further cost reduction with improvement in its existing infrastructure. Quality control and quality assurance systems are being further strengthened. The company has a wealth of trained team to enforce the systems. The awareness levels in quality control and production departments are high and are regularly upgraded through suitable methods of personnel training. Financial Management & Internal Controls The company has a disciplined approach to cost and follows prudential norms in every sphere of its activities The profit making is put at the center of decision making. The costs are budgeted, reviewed and and monitored at regular intervals. Human Resources A knowledge company is built on the strength of its people. The management of the company has been continuously adding skilled and experiences professionals from time to time. Your company recognises the need for formal human resource planning and strategy, and has initiated stops to create systems mid procedures the will further enhance the work environment. The company values the resources and will endeavor to make them better. Outlook Supriya will face challenges both anticipated and unanticipated. We are poised to meet the challenges. The employees and customers remain happy, the balance sheet has improved. The company has proved its ability to deliver the best quality products constantly and regularly and has resources including technologies to excel. The company has a strong foundation for growth. The set of changes being carried out will transform the future of the company into a better and larger player in the pharma industry, and create wealth of its shareholders. The shareholders can look forward to a better future.