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Board of Director' s
Report
NATIONAL PHARMACEUTICAL INDUSTRIES COMPANY (SAOG)
MUSCAT, SULTANATE OF OMAN
On behalf of the Board of Directors of National Pharmaceutical Industries Company SAOG, I have pleasure in welcoming you all to the Thirteenth Annual General Body Meeting and to present to you the Annual Report for the year ended 31st December 2009 along with the Audited Financial Statements for the year.
The year 2009 was a
significant year for the Company's Sales and Production more than
doubled, and the Company earned a net profit from its operations. The
operations are being stabilized and the Company is now being put on a
profitable trajectory.
1. Sales :
The Company recorded a sale of RO 7.606 Million in 2009 as compared to
RO 3.611 Million in 2008 recording an increase of 110% over the previous
year. This was on account of an increase in production and sales to the
Ministry of Health, Sultanate of Oman, private market in Oman and
through our distributors in the export markets and in the SGH Tender.
The outlook for the year 2010 is positive with the Company having an
order booked position of approximately RO 2.71 Million from various
customers.
1. Production:
All the lines of the Company were in operation in the current year for fulfilling the commitments against the orders received. The Company produced 3.86 Million syrups & suspensions, 305.33 Million tablets and 14.19 Million sachets in its non-beta lactum plant and 1.52 Million dry suspension and 241.74 Million capsules in its beta lactum plant. The production was mainly against orders on hand.
2. Product
Development:
The Company has an established in-house research and development
laboratory and a detailed programme of product development. The Company
is also registering products by acquiring dossiers from reputed
pharmaceutical companies.
As of date the Company has 84 products registered with the Ministry of
Health, Oman and 45 products registered at the Central GCC level with
many more under development & registration. A large number of products
have also been registered in the individual GCC Countries as well as in
Libya, Yemen & Jordan.
The products developed cover almost all the therapeutic segments in the
almost all the oral dosage forms.
The Company is in the process of introducing high value products in the
market. The Company has also conducted bioequivalence studies on many of
its products as required under the regulations.
3. Operations in 2009::
The output and the sales for the year 2009 more than doubled as compared
to the previous year on account of increased orders from various market
segments. The Gross Profit % increased from 10.76% in 2008 to 27.35% in
2009 on account of better capacity utilization. With the other expenses
under control, the operations showed a net profit of RO 0.041 Million
this year as compared to a loss of RO ( 0.821 Million) last year.
4. Future Outlook:
The company�s thrust in the immediate future is to consolidate its position by improving the sales in the private market segment and by introducing high value products. The strategy would be to optimize the utilization of the capacity , improve deliveries against commitments, penetrate into the private markets, expand product profile and introduce highly profitable products and look for joint ventures and partnerships.
5. Internal Controls :
The Directors have reviewed the effectiveness of the Company�s system of internal controls through periodic review of by the effectiveness of internal controls and internal audit reports by the Audit Committee, formed by the Board.
6. Government Support :
The Government of Oman has been supporting the Company in various ways � e.g., tax exemption, staggering the installment of Soft loan, etc. It is expected that the Government support, which is vital to the running of the Company, would continue in the years ahead.
The Board of Directors takes this opportunity to extend their gratitude to all the Ministries and, Government Organizations especially the Ministries of Health, Commerce & Industries and National Economy for their continued support.
Finally on behalf of the Board of Directors and shareholders I would like to extend their gratitude to His Majesty SULTAN QABOOS BIN SAID and his Government for their continued support from the beginning till date to this National Project.
GHAZI OMAR AL ZUBAIDI
CHAIRMAN OF THE BOARD