Annual Report 10-11 - Elder Pharmaceuticals Ltd.

urban. The rural market comprisesapproximately 67% of the population(6,00,000 villages). According to the IMSHealth estimates, peri-urban marketsaccounted for USD 3.4 billion in termsof value and constituted to 38% of totalindustry sales whereas rural marketswere valued at USD 2 billion in termsof value and accounted for close to17% of total industry sales, in 2010.As per the PricewaterhouseCoopersestimates for the next decade, therural markets are poised to grow ata CAGR of a conservative 15% to anovertly aggressive 20%. Thus, reachingan expected valuation of between USD8 billion and USD 12 billion, this will besubject to implementation of growthdrivers referred to earlier in thisdiscussion.The opportunityAround 742 million people reside ingap exists between the number ofpeople residing in villages that requiretreatment, and quality treatment andmedicines reaching these villages.Accessibility to proper medication inrural areas is very poor, with less than20% of the population having access.This gap represents a huge opportunityfor pharmaceutical companies toexpand, and we believe that thesemarkets will be the future volumedrivers of the industry.HUMAN RESOURCEWe lay particular emphasis onattracting and retaining the best talentin the industry. We have implementedvarious human resource programmesat every level in the organisation, whichhas helped in developing and retainingour talent pool. We believe it isimperative that we have a well trainedand experienced pool of resources inorder to execute our global strategyand manage the substantial businessand capacity growth that is expected.We intend to continue attractingthe appropriate level of talent on aglobal basis through the right mix ofrecruitment and retention strategiesand become an employer of choiceand pride. The Company’s employeestrength is 3,609.INTERNAL CONTROL SYSTEMSThe Company has an adequate internalcontrol system to safeguard all assetsTimely reviews ensure that alltransactions are correctly authorisedand reported. Wherever deemednecessary, internal control systems arealso reassessed and corrective actionsare taken.CAUTIONARY STATEMENTSStatements in the ManagementDiscussion and Analysis describingthe Company’s objectives, projections,estimates and expectations may be‘forward looking statements’ within themeaning of applicable securities lawsand regulations. Actual results coulddiffer materially from those expressedor implied. Important factors that couldinclude economic developmentswithin the country, demand and supplyconditions in the industry, changesinput prices, changes in Governmentregulations, tax laws and other factorssuch as litigation and industrialrelations.28