SUSTAINABILITY REPORT 2013-15

People Overview Self Managed Teams Mechanisation Safety Overview The Parivartan     Journey Progress on     Roadmap Incident Statistics Robust Governance Standardised     Processes Enhanced Awareness Capability Building Safety Infrastructure Safety Audits Quality Overview Top-down    Accountability Quality by Design Quality Culture     Transformation Quality Assurance Quality     Best Practices All Time Audit     Readiness Availability Overview Strategic Sourcing Risk Management Product    Rationalisation Success stories Environment Overview Roadmap Energy Management Emissions Water Waste Case Study KPIs Community Overview Focus Areas Education Livelihoods Healthcare Infrastructure     Initiatives Creating Change     Makers Productivity Overview Productivity Streams Case Study PACE Update Initiatives Engineering Excellence Overview Digitisation Automation Mechanisation Lean Manufacturing Capital Equipment Strategy Predictive Maintenance Continuous Improvement Overview Continuous     Improvement     at Work Best Practices Annexures GRI Index Acronyms Assurance Statement   Summary Report     ECONOMIC PERFORMANCE FINANCIALS Highlights    |    Economic Value Generated    |    Economic Value Distributed    |    Reinforcing Revenues    |    Local Leverage Every day, each one of us lives the words of Dr. K. Anji Reddy, “We are in the business of treating diseases and saving lives”. Economic stability and growth are enablers of organisational good health and ensure continuity of this mission. We therefore, intensely pursue growth, but with a sharp sustainability focus. Validating this approach are our investments in quality, safety, sustainable sourcing, environment excellence, capacity expansion, capability building and community empowerment. Highlights Global Generics - The High Point FY14 Witnessing a striking 27.4% growth, the revenue of FY14 stood at ₹105.16 billion and was driven largely by North America and the Emerging Markets.   FY15 At ₹120.56 billion, the rise in revenue was a healthy 14.6%. The highlight was a 13% growth in the Emerging Markets despite sharp depreciation of the Russian Rouble. PSAI Business - The Trough FY14 Revenue declined by 21.9% to ₹23.97 billion due to lower demand from several major customers, coupled with fewer launches compared to the previous year.   FY15 The deficit of FY14 was reversed as the revenue increased by 6.2% to reach ₹25.46 billion; significant margin improvement was also achieved due to a more profitable product mix. R&D - The Enabler Solutions of today are an outcome of yesterday's Research & Development (R&D) efforts. R&D is an essential element for growth in this competitive environment and a key enabler to further our purpose of accelerating access to affordable and innovative medicines. In the reporting period, we invested generously in expanding our research & development capabilities to reinforce the foundation for growth and good health. FY14 During FY14, Dr. Reddy's R&D investment amounted to ₹12.40 billion, an increase of 62% over the previous year and amounting to 9.4% of sales.   FY15 In FY15, this investment further grew by 41% to ₹17.45 billion and amounted to 11.8% of sales. Partnerships - Winning Together Our alliance with GSK continues to expand our reach. Together with Merck Serono, we aim to co-develop, manufacture and commercialise a biosimilar portfolio. Our acquisition of OctoPlus in 2013 reflects insight as well as an ability to leverage our strengths exponentially.