Global Pharmaceutical Sector
Global demand for pharmaceuticals continues to rise due to the increasing prevalence of chronic diseases; however, the industry faces ongoing challenges such as pricing pressures and regulatory constraints. An analysis of key markets reveals the important trends.
The global pharmaceutical market experienced an average growth of approximately 6% due to the increasing prevalence of various chronic conditions, such as cancer, diabetes, and neurological disorders, among others. The growing geriatric population, vulnerable to a variety of age-related ailments, enlarges the cohort of patients requiring a range of treatments and therapies. Additionally, the rising healthcare expenditure in emerging economies is another key driver supporting market growth.
GROWTH FACTORS
The global surge in chronic conditions like cancer and diabetes is expanding the patient pool within healthcare systems. This increased prevalence heightens the need for extensive medical treatments and interventions. Data from the American Cancer Society in 2024 estimates 2.0 million new cancer cases in the U.S. alone. This significant figure underscores the growing burden of chronic diseases on the healthcare infrastructure.
The ageing population is driving a higher incidence of age-related disorders, such as rheumatoid arthritis and cardiovascular diseases. This demographic shift ampli_es the demand for specialised healthcare solutions.
Rising awareness of chronic and infectious diseases and growing per capita healthcare spending are boosting the need for personalised drugs and therapies. Enhanced healthcare facilities in developed and emerging nations further support this trend.
Pharmaceutical companies are intensifying R&D efforts to address the growing demand for treatment across various therapeutic areas. This focus aims to broaden product portfolios and accelerate pipeline development.
CHALLENGES
There is considerable government pressure to lower drug prices for a_ordability, which forces manufacturers to cut costs while maintaining e_cacy. This squeezes profit margins in a competitive market.
Recalls from mislabeling or poor manufacturing erode brand value, sales, and trust. Moreover, recalls shift the focus from R&D to operations, slowing the development of new therapies. This disruption hampers innovation and delays solutions for patients.
MARKET TRENDS
The pharmaceuticals market is undergoing a significant transformation post-COVID-19, driven by increased digitalisation and AI integration in R&D activities, such as clinical trials and drug development. Companies are focused on embedding AI solutions into their operations to enhance efficiency and innovation. The decentralisation of clinical trials and the automation of processes are prompting pharmaceutical firms to boost R&D spending and develop new drugs and therapies.
Digital technologys crucial role in drug development and precision medicine is undeniable, with firms prioritising rapid adoption as a key market trend.
OUTLOOK
The pharmaceuticals market is projected to generate US$1.21 trillion in revenue by 2025, with Oncology Drugs leading at US$208.86 billion. It is expected to grow at a CAGR of 4.77%, reaching US$1.45 trillion by 2029. Pharmaceutical demand is anticipated to grow significantly as companies innovate and launch new therapies.
Regional Insights: A Closer Look at Market Dynamics Across Geographies
THE US MARKET: THE PHARMACEUTICAL MARKET IN THE US CONTINUES TO UPHOLD ITS DOMINANT POSITION.
This regional dominance stems from advancements in clinical trials and pharmaceutical manufacturing in the U.S. and Canada. Innovations in drug development and the regular introduction of effective pharmaceutical products are anticipated to boost market growth. The increasing number of drug approvals fuels market development. In 2024, prescription revenues across pharmacies rose 9% compared to 2023, with GLP-1 agonist drugs accounting for over 80% of the retail revenue increase.
Conversely, the U.S. pharmaceutical sector confronted significant price erosion, particularly in oral solid dosage (OSD). This decline is expected to persist due to rising competition and frequent regulatory approvals. Cost-focused regulations, such as the U.S. Infiation Reduction Act (IRA), are placing pressure on revenues, projected to reduce U.S. pharma revenues by 31% through 2039. Furthermore, due to proposed domestic-focused legislation, 50% of U.S. pharma firms are steering clear of Chinese partnerships.
Outlook: The U.S. pharmaceutical market, valued at US$669.42 billion in 2025, is projected to reach US$883.97 billion by 2030, growing at a CAGR of 5.72%. This surge is to be driven by rising chronic diseases, an ageing population, higher healthcare spending, and efforts to enhance drug affordability and access.
THE EUROPEAN MARKET: EUROPE HOLDS THE SECOND POSITION IN THE GLOBAL MARKET.
This ranking is attributed to the increasing awareness among the patient population regarding available treatment options and diagnostic methodologies for various conditions prevalent in the region. Furthermore, the rise in investments directed towards research and development in creating effective pharmaceuticals significantly supports regional expansion.
In 2025, Europes pharmaceutical market is projected to reach US$204.56 billion, led by Oncology Drugs at US$36.95 billion. Revenue is expected to grow at a 4.63% CAGR, reaching US$245.19 billion by 2029, driven by sales of drugs and vaccines for chronic illnesses.
THE CANADIAN MARKET
In 2024, the market held 3.6% of the global pharmaceutical sector. Small molecules generated the most revenue, while biologics and biosimilars grew fastest. The federal government enacted the Pharmacare Act to provide universal drug coverage. The Patented Medicine Prices Review Board (PMPRB) confirmed jurisdiction through the Federal Court and established new pricing guidelines.
In 2024, the PMPRB announced updated regulations for patented medicine pricing. Canada also introduced a National Strategy for Drugs for Rare Diseases, enhancing access to rare disease treatments. The Canadian pharmaceutical market is projected to achieve a valuation of US$89,046.7 million by 2030, with an anticipated CAGR of 7.1% from 2025 to 2030.
THE AUSTRALIAN MARKET
The market shows rising demand for innovative therapies. Key trends include the growing popularity of e-pharmacies for convenience and the acceptance of biosimilars as cost-effective alternatives to branded biologics. There is a perceptible shift toward personalised medicine, offering treatments tailored to genetic profiles.
An ageing population strains healthcare resources, increasing focus on preventative care and chronic disease management, while consumer preferences shift towards natural products, driving the demand for natural remedies and supplements. The market is expected to reach US$10.63 billion in 2025. The Oncology Drugs segment, the largest, is projected at US$1.97 billion that year. From 2025 to 2029, revenue is estimated to grow at an annual rate of 4.96%, hitting US$12.91 billion by 2029.
LATAM & MENA
Due to limited vaccine access, Latin America, the Middle East & Africa show modest growth. Challenges include counterfeit medicines and intellectual property issues. However, advancements in reimbursement policies and healthcare infrastructure enhance market expansion. Key trends involve increased access to healthcare services, medical tourism, and healthcare investments. The Latin American market is set to hit US$46.30 billion in 2025, with Oncology Drugs leading at US$9.49 billion. Revenue is poised to grow at a 6.61% CAGR, reaching US$56.09 billion by 2028. The Middle East & Africa Pharmaceuticals Market is projected to soar to US$42.42 billion by 2030, boasting a robust CAGR of 6.10%.
Indian Pharma
Indias pharmaceutical industry has gained international recognition as the "Pharmacy of the World ".
India plays a crucial role in supplying vaccines, essential medicines, and medical supplies during and after the COVID-19 pandemic. It has the highest number of USFDA-compliant pharmaceutical manufacturing facilities and ranks third globally by production volume and 14th by value. The sector demonstrates innovative capabilities and is a key global pharmaceutical value chain player.
India has transformed from the pharmacy of the world, mainly focusing on bulk drug manufacturing and affordable generics, to a hub for pharmaceutical innovation and digitisation. This shift attracts major global companies to set up their global capability centres (GCCs) in the country. Notable GCCs include Novo Nordisk and Novartis, operating for over 15 years, along with newer centres like Roche. Major firms increasingly depend on Indias talent for future growth.
GENERICS
India holds a preeminent position globally as the leading supplier of generic medications, contributing 20% to the worldwide volume and meeting 60% of the global vaccine demand. The countrys pharmaceutical industry demonstrates excellence in producing affordable vaccines and generics, maintaining its status as the foremost provider in these categories.
Significant sectors within this industry include generic drugs, over-the-counter medications, bulk drugs, vaccines, contract research and manufacturing, biosimilars, and biologics. India represents 20% of global generic drug exports. It satisfies over 50% of the worlds vaccine requirements, encompassing 40% of the generic demand in the United States and 25% of the total medicine needs in the United Kingdom.
The domestic market comprises approximately 3,000 pharmaceutical companies and 10,500 manufacturing facilities. With a robust workforce of scientists and engineers, India plays a crucial role in the international pharmaceutical landscape and is noted for its cost-e_ective and high-quality medical products.
API SEGMENT
India is recognised as the third-largest producer of Active Pharmaceutical Ingredients (APIs), commanding an 8% share of the global API market. The nation produces more than 500 unique APIs and contributes 57% of the APIs included on the World Health Organizations prequalified list.
OUTLOOK
The Indian pharmaceutical industry is projected to reach US$130 billion by 2030 and US$450 billion by 2047. It has a stable outlook, driven by strong demand in both export and domestic markets, along with robust credit profiles of major firms. Debt levels are manageable even with expansion capital investments, backed by solid internal accruals and cash reserves. Firms plan to maintain R&D investments at 6.5-7% of revenue, focusing on complex molecules and speciality products over generics. Strategic acquisitions by leading companies are expected to boost revenue growth and diversification in targeted regions and therapeutic segments.
Our Business Performance
INDIA BRANDED BUSINESS
In FY25, Alembics India-branded business reported a performance consistent with the market, recording modest single-digit growth.
The Company provides a range of branded formulations for acute and specialty therapies. Some of its brands are among the leading names in their product categories, indicating a strong position in the market. Four flagship brands have surpassed C1 billion in sales as per IPM. Within the domestic branded segment specialty therapies reported a healthy performance, with some therapies outperforming the IPM, aiding revenue growth. The new launches in recent years performed well, reporting good growth compared to the previous year.
Operating in Livestock, Poultry and Companion animal markets, the Animal Health segment grew by 21%. The basket of strong brands continued to drive performance. Leaders in the Hematinic and Antibiotic market, the Company has over 11 brands that generate more than C100 mn in revenue.
It has worked on identifying and nurturing talents within the company and integrating technology with Medical Representatives and Customer Consolidation to support medical professionals. With promising product launches across key segments and technology support for marketing and the field force, the Company expects to drive business growth over the coming years.
INTERNATIONAL BUSINESS
Alembic markets its products to more than 40 nations worldwide and has a significant role in the US market. In recent years, the Company has sharpened its focus on the non-US market to capitalise on emerging opportunities across geographies. Moreover, it helps the company mitigate price erosion in the US market. Alembic enjoys a strong presence in Europe, Canada and Australia; more recently, it has focused on strengthening its presence in the LATAM and MENA regions.
1) US Generics Business
Notwithstanding the considerable price erosion that persisted during FY25, the Company reported 13% increase in revenue. This positive performance was principally attributed to the acceleration of significant product launches and the acquisition of market share in several existing product lines.
While Oral Solid Dosage (OSD) products continue to constitute an integral component of the Companys portfolio, recent launches have introduced niche products that leverage a variety of product platforms, thereby reinforcing the emphasis on growth and diversification. Throughout Fiscal Year 2025, the Company successfully launched 16 new products, of which 9 OSD, 2 Injectable, 2 Ophthalmic, 3 Dermatology. Alembic continued to strengthen its supply chain, enabling it to effectively capitalise on opportunities arising from supply chain disruptions in the U.S.
With a portfolio of 24 approved and 8 Abbreviated New Drug Application (ANDA) (as of March 2025), Alembic possesses one of the most extensive ANDA portfolios among its midcap peers. The limited visibility regarding high-value product launches is mitigated by the extensive nature of the Companys ANDA pipeline, its agile supply chain, and its robust track record of prompt launches. Upcoming launches in the ensuing years will concentrate on complex products, which are anticipated to enhance overall business profitability.
2) The RoW Generics Business
Revenue from the RoW segment grew by 18% over the previous year, driven by high demand across multiple markets, indicating strong market penetration and sustained product performance. Strategic partnerships in key geographies including Europe, Canada, Australia, Brazil and South Africa catalyzed the ex-US business growth.
Several factors have driven the business growth. They are: Increased filings of niche products (addressing a large market) have been pivotal to business growth. Very stable relationships with large and reputed companies in our established markets such as Canada, EU and Australia.
Recent filings comprise products that are relatively difficult to formulate. This product segment generates superior value and profitability for the Company.
Significant progress was demonstrated in Canada and Chile, with modest European advancements. Despite a slight downturn in Australia, the overall outlook remains positive. The Company strengthened its strategic alliances with partners in Australia and Europe by launching new products. Additionally, the team expanded the Companys presence in promising markets such as Chile and the United Arab Emirates. Registering its products in these markets strategically positions Alembic for further growth in Latin America and the Middle East. The Company has effectively balanced current business objectives while methodically preparing for the future by increasing its high-value product filings.
The team prioritised a "first generic to launch" approach to ensure readiness to introduce the first generic alternative as patents expire in various markets. By positioning itself among the earliest generic manufacturers in these countries, Alembic aims to secure an advantageous market share and pricing, directly enhancing its financial performance. This forward-thinking pipeline development strategy ensures that the Company will continue to maximise value for its stakeholders as its products progress toward registration over the next two to three years.
ACTIVE PHARMACEUTICAL INGREDIENTS _API_
Revenue from the API business dropped by 9% compared to the previous year on account of intense competition and price erosion, but volumes were higher as the proportion of internal transfer of API to its formulation unit increased substantially. Price erosion and reduced external sales volumes impacted business profitability.
Alembic is focused on strengthening its fundamentals for the future. While market conditions remain uncertain, the company is committed to staying competitive and seizing every opportunity. Although price fluctuations are beyond its control, Alembic works on cost optimisation to maintain stability and drive progress.
The Company is increasing the capacity of the API division, which includes setting up new manufacturing blocks and modernising existing ones to keep pace with the requirements of its internal and external customers.
FINANCIAL PERFORMANCE
The Company delivered a steady performance, demonstrating consistent operational progress across key metrics. Revenue from Operations at C6,672 crore grew by 7% over the previous year, maintaining the growth trajectory established in FY24. While the pace moderated from the previous years 10% growth, the Company sustained its expansion momentum despite a competitive pharmaceutical landscape.
EBITDA reached C1,053 crore with a respectable 10% growth over FY24. The Companys focus on operational excellence was evident in its margin expansion, with EBITDA margin improving to 16% in FY25 from 15% in FY24, representing a third consecutive year of margin enhancement. The consistent improvement trajectory demonstrates progress in the right direction. This steady improvement reflects disciplined cost management and the gradual shift towards higher-margin speciality products in the portfolio mix.
Profit Before Tax advanced to C696 crore, marking a decent 10% increase from the previous year. The year witnessed a significant challenge in working capital management, with Net Cash Flow from Operations declining substantially to C88 crore in FY25 from C803 crore in FY24. This temporary setback was attributed to strategic inventory build-up for upcoming product launches and extended collection cycles in certain export markets. Management has identified this as a priority area and expects normalisation as market conditions stabilise.
Return metrics showcased the Companys disciplined capital allocation approach. Return on Capital Employed improved consistently to 16% in FY25 from 15% in FY24 (excluding new projects), while Return on Equity remained healthy at 12%. The sustained double-digit returns across both metrics underscore the Companys ability to generate value from its capital utilisation. With new product launches in the pipeline and ongoing operational improvements, the Company remains well-positioned to build on this steady momentum and deliver profitable growth in the coming periods.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
Alembic prioritises establishing robust internal controls to facilitate seamless operations and activities. The organisation upholds well-defined policies and procedures to harmonise all facets of the corporation. This encompasses strategic support functions such as finance, human resources, and regulatory affairs, which collaborate closely with core operations, including research, manufacturing, and the supply chain. The organisation possesses a comprehensive internal audit system with external auditors to ensure compliance with legal regulations and operational standards. Upholding statutory compliance remains a chief objective for Alembics leadership team. To enhance internal controls, the Company has engaged M/s. Sharp & Tannan Associates LLP are the internal auditors. Their responsibilities include evaluating the effectiveness of the internal control systems, proposing enhancements, and alerting the Audit Committee of any substantial issues for consideration and review.
RISK MANAGEMENT
Risk management constitutes a fundamental focus at Alembic. The Risk Management Committee, in conjunction with the Board of Directors, collaborates to assess and validate potential risks across the enterprise. Alembic places a premium on clear and efficient documentation. In pursuit of this objective, the Company has instituted a comprehensive document management system applicable to core and strategic operations. Alembic remains resolute in its dedication to upholding effective internal controls, complying with statutory requirements, and perpetually enhancing operations through robust audit processes, comprehensive risk management, and adherence to international standards.
BUSINESS MODEL
Our Engine for Value Creation
Alembics business model is a solid base for successfully advancing a sustainable strategy. It relies on the teams dedication and steady effort to build pathways for future growth. The model motivates employees and partners to pursue excellence while upholding ethics, transparency, and strong governance practices.
Input |
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MANUFACTURED CAPITAL |
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| Our advanced infrastructure spans across India, enabling a smooth and efficient process from product conception to market delivery, supported by top-notch equipment for manufacturing. | Manufacturing Units Gross Block | 9 C4,117 crore |
FINANCIAL CAPITAL |
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| We enjoy a stable financial foundation, with | Net Debt | C1,112 crore |
| resources ready to fuel value creation through production or operations. Our debt-to-equity ratio 0.21 reflects a healthy balance, and were committed to smart, efficient use of capital to drive progress. | ||
| Capital Employed as on March 31, 2025 | C5,361 crore | |
INTELLECTUAL CAPITAL |
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| Our passion for learning and willingness to explore unique paths fuel the growth of our business model, enabling us to shine amidst competition. This drive inspires us to create innovative products and refine our processes confidently and creatively. | R&D investment in FY25 | C530 crore |
HUMAN CAPITAL |
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| Our direct and contractual employees bring a rich mix of skills, expertise, and enthusiasm to the table. We foster a culture of creative thinking and provide them with effective development tools and training to help them thrive. | Employees on roll as on March 31, 2025 | 16,500+ |
| People-related expenses in FY25 | C1,562 crore | |
SOCIAL AND RELATIONSHIP CAPITAL |
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| Building positive, trust-filled connections with important partners like investors, customers, vendors, society, and government is essential to our success, fostering mutual benefits and strong collaboration. | CSR Spends in FY25 Shareholders as on March 31, 2025 | C11 crore 93,014 |
NATURAL CAPITAL |
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| We rely on and influence natural resources like air, water, energy, land, and biodiversity through our activities. Our ongoing efforts focus on lightening the impact of our operations on the planet, fostering a positive relationship with the Earth. | Fresh Water Consumption in FY25 | 7,69,226 KL |
| Power Consumption in FY25 | 1,76,889 MWH |
Building on Scale and Operational Excellence
Commercial Manufacturing facilities
At Alembic, our continuous investments in state-of-the-art manufacturing facilities are the defining enabler for supporting our endeavour to produce and supply high-quality pharmaceutical products. Our manufacturing excellence and quality management systems are the pillars that prove to be pivotal in meeting customer needs with the best quality products, and they inspire us to serve different market segments and foster customer delight.
INTERLINKAGES WITH OTHER CAPITALS
| MANUFACTURED CAPITAL | ||||
| FINANCIAL CAPITAL | HUMAN CAPITAL | INTELLECTUAL CAPITAL | SOCIAL & RELATIONSHIP CAPITAL | NATURAL CAPITAL |
| Products, when sold, generate financial capital necessary for business sustenance. | Products generate the cash flow to adequately remunerate human capital. | Products create the fund flow to finance product development initiatives. | Quality products foster trust; brand awareness leads to increased demand. | Production creates an impact on the environment. |
At Alembic, our identity as a reputed global player rests on our ability to design and develop exceptional products. Our world-class manufacturing facilities play a crucial role in fulfilling this objective by consistently delivering outstanding products that meet stringent quality standards, enhance productivity and ensure cost-e_ciency across operations, cementing our position as a dominant player in our business space. We operate advanced manufacturing facilities in Gujarat and Sikkim, where we manufacture Oral Solid
Dosages (OSDs), injectables, ophthalmic, dermatology and oncology products and Active Pharmaceutical Ingredients (APIs) that cater to multiple therapeutic segments.
Our Gujarat facility focuses on manufacturing international generics and APIs, catering to global markets. The Sikkim facility specialises in developing branded generics tailored for the domestic market.
| PANELAV, GUJARAT | KARKHADI, GUJARAT | JAROD, GUJARAT | SIKKIM |
| The facility is the cornerstone of Alembics operations having both API and formulation facilities. F1 Formulation plant is a multi- capability facility that manufactures generic formulations for regulated and emerging markets globally. | F3 is the recently commissioned facility for general injectables and ophthalmic formulations. F5 unit produces Dermatology products | F4 is a new greenfield facility for producing oral solid dosages and suspensions. | This facility caters specifically to the domestic market, manufacturing branded formulations. |
| F2 is a dedicated block for oncology products (injectables and OSDs); it is capable of making complex injections using nanoparticle technology. | An API unit (API III) caters to internal needs and external sales of APIs to other formulators. | ||
| This site also houses two dedicated units (API I & II) to produce APIs. |
INITIATIVES DURING FY25
Upon the successful completion of our capital expenditure cycle and the operationalisation of our facilities, we are now concentrating on increasing the utilisation of these facilities and enhancing productivity. Throughout the year, while our F1 and F4 formulation facilities (which manufacture oral solid dosages) operated optimally, our F2 and F3 facilities operated at sub-optimal levels due to pending approvals from regulatory authorities for the products intended for manufacture in these facilities.
We have transferred several high-volume oral solid dosage products from our F1 facility to the F4 facility to augment production capacity and liberate capabilities within the F1 facility (the Companys flagship manufacturing site) to accommodate new product launches. Our focus has also been directed towards increasing batch sizes and the campaign runs to minimise cleaning time.
Furthermore, we have intensified our commitment to predictive and preventive maintenance of our equipment to reduce instances of breakdown. Additionally, our teams have reviewed certain lengthy and complex manufacturing processes to eliminate unnecessary steps and simplify others. Collectively, these initiatives have significantly contributed to improved production and overall productivity.
PRIORITIES FOR FY26
Fill in products in F2 and F3 facilities to increase the capacity utilisation.
Shifting of products from F1 to F4 to balance operations and increase productivity.
Increase the R&D lines for generating exhibit batches, which will go a long way in faster regulatory filings.
Setting up new warehousing capacity that will deploy automated systems for increased storage, faster retrieval and superior documentation.
QUALITY ASSURANCE
A deep commitment to patient well-being is at the heart of our manufacturing capabilities. We believe that every product we create should meet and exceed regulatory standards and positively impact the health and safety of those who depend on them. To achieve this, we continue to fortify our quality assurance standards, which allows us to remain true to our commitment.
AUDITS IN FY25
Our F1 facility manufacturing Oral Solid Dosage products successfully cleared USFDA inspection with zero observations.
Our F4 facility manufacturing Oral Solid
Dosages cleared the USFDA audit without major observations.
Our F2 unit for Oncology products (Injectable and Oral Solid) located at Panelav, Gujarat, completed the USFDA inspection (Remote Regulatory Assessment) without any Form 483 observation. Our API-III facility at Karakhadi, Gujarat, also successfully cleared the USFDA inspection with zero observations.
Our API-II facility at Panelav, Gujarat, cleared the Envisa audit (Brazil).
Our F2 and F3 facilities underwent audits by the European regulatory authorities and cleared them.
These milestones pave the way for growing our product basket for the US and RoW markets over the next 2-3 years.
During the year, we increased the strength of our Quality Assurance team to keep pace with the additional volumes from our API and formulation units. This ensured every product batch leaving our gates was rigorously tested for quality and strictly matched the desired standards.
DIGITALISATION EFFORTS
Our team diligently undertook the digitalisation of the Quality Assurance processes. We established all the modules required for our Laboratory Information Management Systems. This system is slated for integration and implementation within the current fiscal year (FY26).
In compliance with Good Manufacturing Practice (GMP) standards, it is imperative that we maintain records of every undertaken activity, necessitating the consumption and storage of extensive paper documentation. We are actively pursuing the development of a digital record for every activity, reinforcing our commitment to transparency and reducing our carbon footprint. Our digital solution is projected to be operational in FY26.
Additionally, we are modernising our Quality Management System by transitioning from a paper-based format to a digital framework. Although a significant portion of this transition was completed in FY25, our objective is to achieve a fully digitalised system in the current year (FY26).
Our endeavours towards a digital future will facilitate the creation of a consolidated data pool, enhancing analytics capabilities and enabling data-driven decision-making.
EXPANDING THE UMBRELLA
We brought the Derma Division into our Central Quality System. Now, all our operating sites come under the Corporate Quality Assurance Cell. We are creating an upgraded SOPs for all facilities. While significant progress has been made, we will roll out all the SOPs in the current year.
PROACTIVE PREPARATION
In light of the increasingly stringent regulatory guidelines and quality standards, we recognise the necessity of maintaining the alignment of our systems and processes with the evolving requirements set forth by global regulatory agencies, particularly the USFDA. In keeping with this objective, we have established periodic meetings among all heads of quality assurance to deliberate on the regulatory observations and notices received by other pharmaceutical companies and our readiness to respond. This initiative subsequently contributes to the improvement action plan implemented across our manufacturing facilities.
PRIORITIES FOR FY26
Digitalisation
We plan to Go-Live with all our in-progress digital solutions, which should make us more agile.
Combat Attrition
Creating an internal talent pool to combat attrition. Employee engagement through quarterly town-hall meetings.
Provide extensive laboratory training for new joiners before engaging them in work.
Training by Original Equipment Manufacturers (OEM) for a better understanding of equipment/ software.
Identify repetitive errors and focus on bringing solutions to eliminate them.
Optimising People Cost
Focus on hiring fresh M.Sc. graduates.
Training new hires in company systems to ensure cultural alignment.
Developing internal candidates for senior positions to ensure continuity and foster loyalty.
Cross-Departmental Integration
The quality department is adopting KPI targets from operations, marketing, and R&D.
Implementing monthly collaborative meetings with other departments.
Focus on Maximising Returns from Investments
At Alembic, we implement sound financial strategies to maximise shareholder value. Central to our financial strategy is our unwavering commitment to enhancing margins, generating cash flow and deleveraging our financial statements to ensure that we have significant financial muscle to implement our strategic initiatives, which will sustain our growth momentum.
INTERLINKAGES WITH OTHER CAPITALS
| FINANCIAL CAPITAL | ||||
| MANUFACTURED CAPITAL | HUMAN CAPITAL | INTELLECTUAL CAPITAL | SOCIAL & RELATIONSHIP CAPITAL | NATURAL CAPITAL |
| Provides funds for asset creation and technology upgradation. | Creates a culture of loyalty by offering competitive compensation and initiatives. | Invests in furthering innovation initiatives for bringing new products to market. employee engagement | Allocates resources for brand building, marketing campaigns, and the advancement of community development initiatives. | Facilitates investment in solutions for a cleaner future. |
MARGIN MANAGEMENT
At Alembic, we maintain a steadfast commitment to enhancing business profitability. Our focus is directed towards developing complex chemistry, high-value products, and challenging platforms, which will constitute the majority of our forthcoming product launches over the next two to five years. Furthermore, as we strive to optimise the utilisation of our recently commissioned capacities with these products, we anticipate reaping the benefits of economies of scale, thereby contributing to enhanced business profitability.
CASH FLOW MANAGEMENT
We expect our cash flow from operations to increase in the coming years. Our optimism is grounded in two business strategies: 1) enriching our product range with high-value items and 2) expanding our geographic presence. Our efforts in this direction should boost our cash from business operations in the years ahead.
FINANCIAL ALLOCATION STRATEGY
In the recent past, we had allocated surplus funds towards the establishment and commissioning of manufacturing facilities, thereby enabling us to expand our opportunity landscape. Having completed our capital expenditure cycle, we will now utilise our cash surplus to invest in research and development (which aims to create future growth levers) and reduce debt. Both these strategies are anticipated to impact the Companys bottom line positively.
DEBT MANAGEMENT
The debt-to-equity ratio stood at 0.21. With an upward trajectory in cash flow and a minimal commitment to capital expenditure for the forthcoming two years, we remain confident in substantially increasing our debt repayment capacity.
SHAREHOLDER RETURNS
We have consistently manifested our dedication to enhancing shareholder returns in the past five years. We have regularly declared dividends, thereby ensuring value for our shareholders. In the fiscal year 2025, we declared a total dividend of 550%, which equates to C11 per share.
Leveraging Science for Success
In an industry characterised by rapid advancements and evolving patient needs, intellectual capital assumes a pivotal role in our growth strategy. As we broaden our portfolio of speciality and complex products, our capacity to create, manage, and leverage intellectual capital becomes increasingly essential.
INTERLINKAGES WITH OTHER CAPITALS
| INTELLECTUAL CAPITAL | ||||
| MANUFACTURED CAPITAL | FINANCIAL CAPITAL | HUMAN CAPITAL | SOCIAL & RELATIONSHIP CAPITAL | NATURAL CAPITAL |
| Helps in filling up manufacturing capacities, infuses new technology solutions and | Generates value for the organisation leading to superior profitability. | Fosters people learning and development, leading to individual development. | Innovative products widen business opportunities. | Intellectual capital plays an important role in environment management. |
| improves processes. | ||||
RESEARCH AND DEVELOPMENT _ FORMULATIONS
The escalating healthcare expenditures globally have rendered numerous medications inaccessible to millions. Our conviction is that we are obligated to provide patients with access to affordable medications and support their health enhancement through innovative solutions.
At Alembic, R&D is the bedrock of our success. Through our innovation efforts, we address health inequities, provide life-saving products, and improve health outcomes.
We are dedicated to promoting innovation and embracing intricacies to advance our business objectives. The expertise of our Research and Development team in managing an array of advanced technologies and intricate chemical compositions exempli_es their enthusiasm for innovation. The extensive intellectual capital we possess facilitates addressing diverse market requirements and developing a broad spectrum of solutions to augment our presence both domestically and internationally. We have R&D centres in Hyderabad and Vadodara, driving our R&D agenda, developing our growth levers for the coming years, and improving operating efficiencies.
Product Pipeline
Our Bio Equivalence (BE) Centre continues to play a pivotal role in enhancing the speed and accuracy of our dossier filings, while consistently driving cost efficiencies. In preceding years, our product pipeline predominantly concentrated on oral solid dosage (OSD) formulations; however, we have now transitioned towards more complex products and platforms designed to meet critical patient needs. We anticipate that the majority of our pipeline will be commercialised within the next three to five years, with several innovative solutions expected to see the light of day in the subsequent years.
Focused Approach
We remain committed to expanding our product portfolio for the US market. Our efforts in product identification and development are grounded in this commitment. Nonetheless, intensified competition and significant price erosion experienced recently have compelled us to broaden our marketing reach to other global pharmaceutical markets. Given the positive outcomes of this strategy, we have resolved to continue our initiatives to establish a more robust presence in these markets, for which we have established geography-specific R&D and regulatory units. These teams will selectively identify promising, region-specific products for development, filing, and commercialisation. We anticipate that this customised approach will facilitate our progress towards achieving our growth objectives.
Regulatory Filings & Approvals
Our filing momentum continued unabated. In FY25, we filed 8 ANDAs (_lings for the US market). We also received 29 (including 5 TAs) ANDAs, underscoring our commitment to improving the quality of our filing documents.
We focused on strengthening our presence in the Dermatology space during the year. While we have 5 ANDAs currently under appraisal and approval, we extended our ANDA filings to other geographies, focusing on other American markets.
Product Launches
We launched 16 products in the US markets, including high-growth formulations. This widens our product basket for the US market to 163 as of March 31, 2025. We continued to extend our US product basket to other global markets with considerable success.
Product Stability
During the year, we successfully addressed the nitrosamine issue and stabilised the products affected by this concern. One such product is Duloxetine, which holds a significant share in the market. We have obtained dossier approvals after the stabilisation of this product and have submitted an ANDA to the US regulatory authorities. We anticipate receiving their approval soon, unlocking favourable growth opportunities for Alembic.
Capability Bandwidth
In FY25, we used the facility primarily for RoW pivotals, accelerating our global dossier filings. Going forward, this facility will become the key differentiator in our R&D efforts.
Also, we realise that solid dispersion is an essential process in developing and manufacturing oncology products. We invested in a spray drying facility at our F2 facility dedicated to oncology products and scaled one product from our lab to the facility. We plan to manufacture the exhibit batches for the product in the current year.
Priorities For FY26
Our Company prioritises strategic growth and innovation to strengthen our market position in the coming years. We aim to achieve 10 high-value product filings (exceeding $1 billion) in the U.S., supported by full API back integration to capitalise on early launch opportunities. Our oncology market strategy will leverage in-house API synthesis to reduce costs and enhance competitiveness in this high-cost segment. Additionally, we will expand into peptide synthesis, formulation, and injection to diversify our portfolio. The Rest of the World (RoW) market represents a critical growth area, pursued through intelligent dossier filings and robust dissolution data to enable batch formulations, ANDAs, and new dermatology products. Our mission is to lead the industry by being the first to file, register, and launch, securing a competitive edge across all target markets.
RESEARCH AND DEVELOPMENT _ API
Alembic Pharmaceuticals API division is pivotal in driving innovation by developing niche APIs that underpin our diverse formulation portfolio. The API team is committed to creating value for the organisation by submitting Drug Master Files (DMFs) in different territories, focusing on complex APIs, including novel polymorphs, and securing intellectual property advantages for Alembic ahead of competitors. The API units have strategically honed their expertise to produce complex APIs tailored for different dosage forms, with a dedicated peptide API group working on high-value injectable therapies for rapidly growing markets.
In FY25, the team prioritised building a robust product pipeline aligned with our formulation strategy, with a substantial focus on oncology products and APIs for injectable products. Our investment in state-of-the-art LCMS equipment has enhanced the speed and precision of Nitrosamine impurity analysis, strengthening our quality assurance capabilities.
Priorities For FY26
The strategy is strengthening the supply chain to ensure seamless raw material availability, enhance operational efficiency, and support sustained growth in the competitive pharmaceutical market. Prioritising the portfolio and developmental cost optimisation are expected to accelerate innovation in important and high-value products while maintaining financial discipline.
ALEMBIC DIGITAL TRANSFORMATION EFFORTS
Strategic IT Rebranding and Unification Plan for Alembic Pharmaceuticals
Alembic Pharmaceuticals is rebranding and unifying its IT functions to streamline operations and boost efficiency. This strategic roadmap transitions from descriptive to predictive and prescriptive analytics, building a robust digital foundation for sustained growth. The FY25 plan focuses on enabling business and technology, enhancing operational efficiency, ensuring compliance and security, and establishing a strong digital infrastructure.
Business and Technology Enablement
The IT rebranding initiative prioritises process modernisation and integration to enhance business agility and technological capabilities. Process documentation and modernisation ensure consistency and scalability, while automation of process gaps reduces manual interventions. To streamline production, quality management, and regulatory compliance, Alembic is focused on integrating Laboratory Information Management Systems (LIMS), Enterprise Quality Management Systems (EQMS), Enterprise Content Management Systems (ECMS), Computer System Validation (CSV), and Manufacturing Execution
Systems (MES). An enterprise data lake supports data-driven decision-making and advanced analytics, creating a cohesive IT ecosystem that drives innovation.
Operational Efficiency
Operational excellence is central to the IT unification strategy, leveraging advanced systems and governance to optimise performance across Alembic Pharmaceuticals and its group companies. SAP S4/ HANA deployment modernises ERP systems for real-time insights and streamlined operations, extending to real estate for enhanced asset management. Tool rationalisation eliminates redundancies, and robust governance ensures data integrity and process standardisation. Automated group reporting improves accuracy and reduces reporting cycles, enhancing operational agility and scalability.
Compliance and Security
Compliance and security are critical in the pharmaceutical industry. Implementing Single Sign-On strengthens access controls, enhances user experience, and ensures compliance with security standards, safeguarding sensitive data while maintaining regulatory adherence.
Digital Foundation
The strategy builds a resilient digital foundation to future-proof the IT infrastructure. Operation monitoring provides real-time visibility into performance, and Robotic Process Automation automates repetitive tasks to reduce errors. Enhanced data analytics capabilities support predictive and prescriptive insights, while IT modernisation upgrades legacy systems for scalability and reliability, fostering a data-driven and innovative IT ecosystem.
Strategic Roadmap
The IT rebranding follows a phased approach. FY25 focuses on descriptive analytics through process modernisation and system integration, with efforts underway to enable business and technology capabilities. Predictive analytics will leverage data to anticipate trends and mitigate risks, while prescriptive analytics will provide actionable recommendations for strategic decision-making and competitive advantage.
Priorities For FY26
Alembic Pharmaceuticals FY26 IT priorities focus on streamlining operations and enhancing efficiency to support growth in the competitive pharmaceutical landscape. Standardising technologies ensures seamless integration and system reliability, while data-driven decision-making leverages the FY25 enterprise data lake for actionable insights, boosting agility and strategic planning. A Network Operations Centre (NOC) strengthens cybersecurity, compliance, and real-time incident response, safeguarding data and operational integrity. Master Data Management (MDM) centralises and standardises data, improving quality and enabling predictive and prescriptive analytics, aligning with the long-term roadmap for a robust digital foundation.
Creating an Empowered and Energetic Workforce
At Alembic, we understand that achieving our goals hinges on the dedication and skills of our workforce. Talent management is a pivotal part of our Companys strategic framework. Employees benefit from policies designed to cultivate a supportive work environment. In addition to industry-competitive compensation packages, we provide extensive learning and career development opportunities. Embracing diversity and inclusion, we foster a culture where all employees feel valued and empowered.
OUR FOCUS AREAS
Build knowledge capital Develop a Leadership Pipeline Address Attrition People well-being
INTERLINKAGES WITH OTHER CAPITALS
| HUMAN CAPITAL | ||||
| MANUFACTURED CAPITAL | FINANCIAL CAPITAL | INTELLECTUAL CAPITAL | SOCIAL & RELATIONSHIP CAPITAL | NATURAL CAPITAL |
| Empowered employees are the foundation for exceptional products and services. | Our teams dedicated efforts translate into an improved performance. | Employees skills are pivotal to technology absorption and innovation. | People foster relations with dealers and the community. | Team members are instrumental in environment management. |
CELEBRATING OUR RECOGNITION
We are honoured to announce that we have been awarded the esteemed Great Place to Work certification for the third consecutive year. This recognition is a testament to our unwavering commitment to cultivating a dynamic and supportive work environment that promotes excellence, innovation, and a spirit of camaraderie.
This certification epitomises our dedication to our personnel and organisational culture. It signifies the trust, respect and mutual appreciation characterising our team and inspiring prospective talent seeking an exceptional workplace. Collectively, we take pride in celebrating this remarkable accomplishment and remain fervent in our aspirations to achieve even greater milestones.
INDIA BRANDED BUSINESS
This is a marketing-focused business vertical where Medical Representatives, the quintessential field force, showcase our branded products to healthcare professionals. This cohort is supported by an experienced and energetic workforce that seamlessly manages diverse business functions. Our dedicated HR team worked passionately to motivate and grow the teams and equip them with the requisite skills and motivation to achieve business goals.
Learning & Development: We are committed to enhancing our teams knowledge capital through ongoing workforce development. We invest in diverse training initiatives, offering hands-on job training, structured classroom education, and various learning platforms. These programmes are designed to continuously upgrade our employees skills. In FY25, we provided over 330,000 person-hours of training covering 5,500+ team members.
Employee Development: To support employee growth, we identified high-potential employees and created programs to accelerate their development. Assessment centres have been established for field managers to evaluate leadership potential and equip them with the necessary skills for greater responsibilities. These initiatives ensure clear career progression, preparing employees for future leadership roles.
Employee Motivation: We prioritise employee motivation and satisfaction as key to our Employee Value Proposition. Our HR strategies offer competitive policies, well-being, career growth, and engagement for a fulfilling experience. We invest in continuous learning, career development, and a structured recognition framework, ensuring employees feel valued and motivated to grow. Moreover, we emphasise work-life balance through wellness programs, flexible arrangements, and recreational activities.
Employee engagement: Our diverse workforce includes individuals from various generations, necessitating tailored engagement strategies. We rolled out a meticulously crafted Employee Engagement Calendar at the start of each financial year to boost engagement and productivity. We host two monthly activities focused on hobbies, skill development, social responsibility, wellness, and team building. These initiatives create a positive workplace atmosphere, enhance collaboration, and ensure employees feel valued and connected to the organisations vision. Attrition management: We enhance employee engagement and communication through initiatives like ‘Co_ee with HR for open discussions and Cycle Meetings to address concerns and improve alignment. These efforts, career development, and recognition programs create a motivated workforce and boost retention. We aim to create stronger connections between the field and the corporate world. Activities include ‘The Appreciation Week and the ‘Stepathon Challenge. Recognising the importance of work-family balance, we have introduced leave policies, including Paternity and Bereavement Leave, to allow employees time with loved ones without work stress.
Leadership development: HR conducts Development & Assessment Centres to identify high-potential talent. To accelerate their growth, we offer fast-track programs such as Managerial Development Programs, Leadership Masterclasses, and Individual Development Plans. They will also attend New Managers Orientation, receive executive coaching, and gain cross-functional exposure to enhance strategic thinking and decision-making. These initiatives ensure a strong leadership pipeline to support organisational growth.
Priorities for FY26: Leveraging the learnings from the previous year, we have set our priorities for the current year, which should help create a stronger team.
Reducing Attrition & Retention Focus: Implementing engagement programs, career development, and well-being initiatives to retain talent.
Strategic Hiring: Filling vacancies with the right fit through skill-based assessments and structured onboarding.
Customer-Centric Approach: Strengthening service excellence and value-driven interactions with healthcare professionals.
INTERNATIONAL BUSINESS
Based out of Vadodara, the 7,000+ member team comprises the people at the facilities, R&D and the corporate office managing diverse and demanding business functions. Gujarat is a prominent pharmaceutical hub in India, hosting numerous manufacturing facilities, leading to considerable movement of people between companies. Furthermore, this industry requires intellectual capital to thrive and maintain its growth trajectory. Therefore, the HR team must focus on retaining its key personnel. At Alembic, we emphasise nurturing internal talent while recruiting new talent to ensure our team is well-prepared to manage our expanding business operations seamlessly.
Retaining our leaders: We expanded the authority-responsibility quotient of our business heads. This initiative helped solidify their bond with the company.
Leadership pipeline: We identified the successors to our Top Management team and enrolled them in Leadership Development Programs designed by Welingkar and Mahindra University. This learning and development initiative enhanced their skills and leadership capabilities, preparing them for more significant roles. Further, we implemented a comprehensive talent evaluation process, classifying mid-to-senior leaders into distinct talent categories and facilitating the identification of the emerging leadership cohort. Additionally, we designed tailored Leadership Development Programs aimed at expediting their advancement.
Employee Engagement: Combining multiple engagement strategies is the key to sustained employee satisfaction and lower attrition rates. Towards this end, we enhanced people engagement through structured activities, milestone celebrations, and collaboration initiatives. These include
Recognition Programs: Institutionalised value recognition awards, spot recognition, appreciation boards, and kudos cards.
Employee Echo Sessions: Provided an open platform for employees to discuss challenges and share feedback. Team bonding: Intensified cross-functional team-building initiatives to promote a uni_ed work culture.
a) Scientist of the Quarter – conducted every quarter to recognise innovations.
b) Townhall – conducted once in six months to listen to employees voices
Learning & Development: A learning organisation is a growing organisation. With this understanding, we intensified our Learning & Development focus to upskill employees across organisational hierarchies. Our key initiatives during the year were:
a) Internal Faculty Program: We created the Teach & Learn program where experts (in specialised operations) train the internal team, who then pass on the learning to the others within the department.
b) Audit readiness: We trained teams for audit readiness to enable them to manage regulatory and customer audits. This served well as it inculcated a culture of quality and discipline to align with global standards.
c) Higher education opportunities: We partnered with Sigma and RMS Polytechnic institutes to offer higher education opportunities for employees. This initiative enabled aspiring members to pursue postgraduate and advanced degree ambitions while remaining gainfully employed.
Diversity & Inclusion: We focused on increasing female workforce participation. We organised women-focused hiring drives with referral programs to encourage female hiring across functions. We implemented Womens Engagement Programs, including gender sensitisation workshops and facilitated visits to companies with high female representation to learn their culture and behaviours.
We provided supportive infrastructure, such as on-site childcare for children, helping working mothers continue their careers comfortably. We also conducted health initiatives, including breast cancer awareness and screenings. While this was a positive start, we aim to boost female representation to 15% in the coming years while adhering to merit-based hiring standards.
Making a
Meaningful Impact
At Alembic, we recognise that our success and sustainability are inseparably linked to the well-being of the communities we engage with. We place immense value in nurturing positive and productive relationships with community members who directly influence and enrich our business landscape. Our approach is aimed at contributing meaningfully to societal progress.
We are committed to improving society through impactful healthcare, education, livelihood and community development initiatives. From empowering farmers, supporting access to healthcare services, promoting education, and fostering sports excellence, our efforts aim to uplift communities and contribute to a brighter future.
INTERLINKAGES WITH OTHER CAPITALS
| SOCIAL AND RELATIONSHIP CAPITAL | ||||
| MANUFACTURED CAPITAL | FINANCIAL CAPITAL | HUMAN CAPITAL | INTELLECTUAL CAPITAL | NATURAL CAPITAL |
| Helps in operational continuity. | Dealers generate the cash flow which is absolutely essential for business sustenance. | Keeps them engaged and motivated through participation in social interventions. | Provides impetus to understand the challenges of communities and develop solutions. | Makes a significant impact in saving the planet. |
VISION
Our vision is a world that enhances human well-being, upholds social justice, ensures equitable resources and enables sustainable development.
MISSION
We work with marginalised communities to enhance lives. In unison, we catalyse positive change through active intervention in Health, Education, Livelihood, Environment, Water & Sanitation. We build scalable and inclusive models of social development that empower people to create a better future for all.
HEALTH & SANITATION
Our philosophy concerning enhancing health for marginalised communities is fundamentally rooted in the principles of equity, dignity, and inclusion. We firmly assert that health is a human right rather than a privilege, and we are committed to diligently addressing the systemic barriers that prevent specific populations from accessing healthcare.
Our SWASTHYA SETU programme aims to provide primary healthcare services directly to underprivileged communities households while ensuring access to quality tertiary care. The action plan includes deploying Mobile Health Units to frequently visit surrounding villages, collaborating with government health systems, facilitating access to entitlements such as the Ayushman Bharat Card, and raising awareness about critical health issues. Approximately 90% of the target population in our neighbouring villages has been assisted with the issuance of the Ayushman Card.
We conduct screening programmes for breast cancer in the periphery of our operating units to ensure early detection and care for vulnerable women. Currently, all 40 PHCs in Vadodara are being covered through this initiative. Additionally, through our Vikas Arogya
Kendras, we provide primary-level medical care to over 10,000 patients from our neighbouring villages each year.
Through our SUPOSHAN programme, we aim to improve the nutritional status of children, adolescents, and women, reduce the prevalence of anaemia, and lower rates of low birth weight. These programmes encompass 26 villages surrounding our facilities in Jarod, Panelav, and Karkhadi, as well as the City of Vadodara. Our immunisation efforts have reached 90% of the target population. We are also enhancing Antenatal Care and conducting regular awareness programmes on relevant topics. Our project has benefited over 12,500 individuals (children, adolescents, and pregnant and lactating mothers).
We believe that a fit body is the precursor to a healthy mind. In keeping with this philosophy, we have launched the Alembic Sports Project to promote fitness and excellence among school children through various sports coaching. As a result of this intervention, over 5,000 children from rural government schools are participating in various sporting events. Currently, more than 600 children are competing at the Taluka level, over 300 are at the district level, and about 30 children have reached the state level in the last two years of project implementation.
Through our Alembic SEWA (Support Enablement and Welfare Action) project, we aim to assist homeless children and aid in their development. Through our Specialised Adoption Centre, we collaborate with the Gujarat Government to support abandoned children and facilitate their adoption. Furthermore, we assist 24 children in the foster care home for holistic development. Additionally, we support 500 vulnerable children and their families living in slum areas of Vadodara, focusing on education and health. As part of our efforts, we facilitate livelihood generation for their caregivers to enhance the quality of life for these children.
Our Blood Transfusion Centre for Thalassemia provides a free-of-cost service to 52 Thalassemia-affected children from Vadodara and surrounding districts.
QUALITY EDUCATION
We are mindful that education is the cornerstone of societal progress, as it empowers individuals with knowledge, skills, and critical thinking. Moreover, an educated society is better positioned to make informed decisions, ensuring sustainable development and brighter futures.
In keeping with this belief, we undertake various programmes to further education in neighbouring villages.
Our SEWA (Supporting Enablement and Wellbeing Action) programme addresses the needs of children and individuals requiring care and protection (CNCP). The objective is to provide quality support for their holistic development and integration into mainstream society. This action plan focuses on comprehensive assistance, including food, nutrition, health, education, and physical and emotional well-being.
Our VIKAS SCHOOL AND HOSTEL provides a safe, inclusive, and resource-rich learning environment, ensuring every child receives a quality education. We aim to instill values, skills, and attitudes for positive societal participation through trained teachers, child-centric methods, and holistic support like nutrition and residential facilities. So far, 3,000-plus rural children have passed out of this school.
Our SHIKSHA SETU programme, primarily aimed at government school children, focuses on creating a healthy, non-discriminatory learning environment with sufficient resources and facilities.
Our Mobile Science Lab provides an experiential learning programme for over 2,000 rural government schoolchildren, offering them hands-on experience with science experiments to enhance their creativity, critical thinking, and innovation.
Through these efforts, we aim to foster overall development, open alternate career paths, and build goodwill for Alembic.
LIVELIHOOD
We acknowledge that providing livelihoods to marginalised communities empowers them to transcend the cycle of poverty and achieve financial independence. This initiative stimulates local economies and fosters collective growth, benefiting society and paving the way for a more equitable and compassionate world. We are committed to helping individuals live with dignity by offering them access to respectable livelihoods.
Our Farmers Empowerment Project is designed to facilitate sustainable agriculture. It enhances farmers productivity by reducing input costs, introducing efficient production methods, leveraging market dynamics, and adopting climate-resilient practices. Through this initiative, we also strive to improve cattle breed development, which leads to increased productivity and income. Furthermore, we endeavour to promote self-reliance among women and provide sustainable livelihoods. Our action plan includes training rural women, forming Self-Help Groups, securing industrial orders, and overseeing production, quality checks, and delivery. We have also provided women with pink auto rickshaws in Vadodara City and certain rural areas.
SPORTS AND ART & CULTURE
India, a land rich in art and culture, is home to countless talented artists who often lack the recognition and support necessary for them to thrive. We aim to provide a platform that showcases their talent and fosters opportunities through workshops, grants, and initiatives. By identifying emerging artists, hosting exhibitions, providing studio spaces, and offering training from established professionals, we seek to empower artists through residencies, exhibitions, and grants. We support approximately 24 young, budding artists annually with a residential exposure programme to assist them in further establishing themselves in their field.
ENVIRONMENT
To address the need for conservation and efficient management of natural resources such as water, soil, natural vegetation, and energy, we endeavour to ensure a reliable supply of drinking water, sustainable farmland productivity, ecological restoration, and the adoption of renewable energy. Our action plan includes conducting a baseline study on water and natural vegetation and implementing measures for groundwater recharge. Under our water management initiative, we have constructed 17 recharge wells in Padra Taluka. To date, 53 wells and check dams have been built under this initiative, resulting in the recharge of 30 crore litres of groundwater in the region.
Prioritising Sustainability for a Better Tomorrow
At Alembic, we are committed to minimising our environmental footprint while achieving economic success. We diligently work towards extending our environmental stewardship beyond complying with applicable laws and regulations for resource conservation and energy efficiency. We optimise our consumption of natural resources in a sustainable manner. Embedding the tenets of the circular economy helps us optimise resource requirements.
INTERLINKAGES WITH OTHER CAPITALS
| NATURAL CAPITAL | ||||
| MANUFACTURED CAPITAL | FINANCIAL CAPITAL | HUMAN CAPITAL | INTELLECTUAL CAPITAL | SOCIAL & RELATIONSHIP CAPITAL |
| Streamlines business operations to optimise resource consumption and minimise pollution and waste generation. | Respecting nature optimises costs, enhances credibility and improves business profitability. | Creates an ambient working environment for teams. | Drives the mind to ideate on novel environment management solutions. | Environment-friendly products are widely gaining acceptance – driving the distribution channel business. |
CLIMATE CHANGE & ENERGY
Alembic prioritises environmental stewardship by minimising its footprint through sustainable practices and innovative technologies. We aim for net-zero emissions aligned with the 1.5?C pathway by 2050, and our targets are successfully validated by the Science-Based Targets initiative (SBTi). This is the cornerstone of our environmental strategy, guiding our efforts to mitigate climate change and reduce our carbon footprint. This year remains remarkable in our sustainability journey, as we have secured a Carbon Disclosure Project badge for our improved performance, which motivates us to strive to enhance our sustainability journey.
ENERGY MANAGEMENT
Reducing energy consumption and mitigating greenhouse gas (GHG) emissions is essential to our sustainability strategy aimed at achieving the goal of Net Zero. At Alembic, we reafirm our commitment to improving energy efficiency, diversifying our reliance on renewable energy sources, and minimising our carbon footprint. Our primary objective is to replace our carbon-based electrical energy with renewable energy to the greatest possible extent. During FY25, we have added another solar power plant of 12 MW alongside our existing 12 MW power plant. Our total solar power generation capacity through these facilities is now 24 MW. We have entered into new Power Purchase Agreements for Hybrid power to increase the green power ratio in our purchased energy. With all green power substitutions and in-house rooftop solar plants, we aim to reach 80% of the total power consumed from green sources. This will represent a significant leap toward our Net Zero commitment. Additionally, we continually upgrade our systems with new technologies and equipment to achieve maximum energy efficiency. The company conducts regular energy audits by third parties to identify areas for improvement and stay abreast of emerging technologies.
Moving forward, we calculated our Scope 3 emissions (emissions beyond our factory) under the prescribed categories. This crucial step has enabled us to create a blueprint for reducing these emissions in the coming years.
WATER MANAGEMENT
Water conservation is essential as freshwater sources are rapidly depleting due to overuse and mismanagement. Climate change exacerbates this crisis by altering weather patterns and reducing water availability. Therefore, conserving water wisely has become imperative to ensure future generations sustainability and protect ecosystems that rely on it.
At Alembic, we recognise the pressing need for prudent water management and targeted replenishment. In line with this understanding, achieving water neutrality is central to our environmental sustainability strategy as we endeavour to balance water consumption with replenishment efforts.
Water Assessment
We periodically conduct comprehensive water audits across all our manufacturing facilities to identify potential areas for water conservation. These evaluations assist in identifying areas for improvement, enabling us to implement targeted strategies to reduce water consumption within our operations.
Water Management
Institutionalised advanced water management systems that monitor and optimise water usage across facilities.
Implemented water-saving technologies, such as low-flow fixtures, automatic shut-o_ systems, and efficient equipment. Specific projects, including the MVR-API-II Unit and F-3 Unit-RO Plant, highlight our commitment to reducing water consumption and enhancing operational efficiency.
Continuous improvement of manufacturing processes to minimise water consumption and eliminate ine_ciencies.
Water Recycling
Sewage Treatment Plants and E_uent Treatment Plants (ETPs) have been technologically upgraded across all operational facilities to treat wastewater to a degree that makes it suitable for reuse as a substitute for fresh water. Water is fully recycled using ZLD (Zero Liquid Discharge) systems for applications such as boilers, cooling towers, gardening, and other operations. This reduction minimises the Companys reliance on freshwater resources.
Anti-Microbial Resistance
We are acutely aware of the growing challenge of Antimicrobial Resistance and the forthcoming regulations. In response, we have implemented stringent measures to ensure our antibiotic products do not pollute the environment. The Zero Liquid Discharge (ZLD) status of the API units helps achieve Zero PPB of antibiotics in our treated effuent.
We have institutionalised a process to ensure the separate collection and treatment of packing material contaminated with antibiotic products. No mixing of process effuent into stormwater drains.
All vents containing antibiotic powders are diverted to bag filters.
All date-expired medicines are strictly incinerated.
Water Neutrality
The Company has set an ambitious target for water neutrality in its sustainability initiatives. Aware that our manufacturing operations could deplete the water table around the facility, the company aims to replenish the groundwater using various recharge techniques. It has installed rainwater recharge wells in the villages surrounding its operating sites, which are beginning to yield positive results regarding rising water tables and decreased TDS levels. The company has already achieved 85% of its water neutrality goal and is optimistic about reaching its objective of 100% well ahead of the 2027 deadline. Last year, the Company added 17 more recharge wells, bringing the total to 102. All the wells are developed recharge wells situated near the Karkhadi, Panelav, and Jarod facilities.
Our efforts have increased the water table in the Panelav region by 7.5 metres and the Karakhadi region by 4 metres, resulting in a corresponding improvement in TDS levels. The company has also developed artificial water ponds for rainwater collection and reuse within our premises at various locations. Additionally, we continue to invest in infrastructure to support sustainable water use in our communities.
WASTE MANAGEMENT
Waste management is crucial given our manufacturing operations and their significant impact on environmental sustainability, regulatory compliance, and corporate reputation. It is not merely a regulatory necessity but a strategic opportunity to align with sustainability priorities, enhance operational efficiency, and establish lasting trust in a sensitive industry. Cognizant of the criticality of waste management, we have taken important measures to minimise waste creation and ensure proper waste management and its disposal.
1) We started a campaign within its manufacturing operations to separate mixed waste at the source and distinguish recyclable materials such as waste liners, PPE, shoe/head covers, paper, and cardboard from general waste. This initiative has not only encouraged a more environmentally conscious culture among employees but has also decreased the total waste sent for disposal.
2) We prioritise the management of hazardous waste by ensuring its safe disposal through collaborations with certified companies and adherence to stringent regulatory standards.
The process includes proper waste collection, segregation, transportation, storage, and disposal. Every kilogram of waste is identified, recorded, and controlled throughout this process.
3) We gradually enhanced our solvent recovery plant efficiencies, significantly increasing the proportion of recycled solvents and achieving substantial cost savings for the company.
4) We employ the Reduce, Reuse, Recycle, Recover, Rethink strategy for waste management by utilising advanced techniques.
5) With IT graduating into the critical business platform, we have progressively increased our dependence on smart IT solutions across all functions, significantly reducing our paper consumption.
6) We ensure that all plastic waste is managed by a certified plastic waste recycler, ensuring comprehensive traceability and compliance with the requisite standards.
These efforts collectively reduce our environmental footprint while fostering a culture of sustainability.
BIODIVERSITY MANAGEMENT
Green cover is essential in an increasingly urbanised world dominated by concrete structures. Trees function as natural carbon sinks, mitigating the effects of climate change and safeguarding ecosystems. Therefore, there is an urgent need to integrate greenery into urban planning to counterbalance the environmental strain of rapid urbanisation.
At Alembic, we engage in tree planting initiatives to enhance local green coverage and foster biodiversity. We have set an ambitious objective to plant 50,000 trees by 2027 utilising the Miyawaki technique. This approach facilitates the rapid growth of dense, native forests in limited spaces. We have successfully established a sample forest comprising 7,450 trees. We plan to expand this to 50,000 trees over the next three years, thereby significantly mitigating carbon emissions and improving the surrounding environment.
Navigating Business Challenges with Purpose
Risk management is vital for our organisations profitability, competitive positioning, and long-term viability, along with fulfilling commitments to clients and stakeholders. At Alembic, we prioritise proactive management of risks to support our strategic objectives. We created a comprehensive Enterprise Risk Management Framework that emphasises a synchronised approach to risk mitigation and opportunity maximisation, promoting a culture of independent and systematic risk management. Below are some of the key currently visible risks and mitigation measures that would help the Company minimise their impact on its business performance and profitability.
COMPLIANCE RISK
NON-COMPLIANCE WITH THE FAST-EVOLVING AND INCREASINGLY STRINGENT STANDARDS CAN LEAD TO DELAYED PRODUCT APPROVALS, PENALTIES, AND PLANT SHUTDOWNS.
Mitigation Measures
All operating facilities are audited and certified by the USFDA; two facilities received the EIR (Establishment Inspection Report) in FY25.
We have received approvals for 61 products from the USFDA in the last three years. We have institutionalised a system of studying and discussing all non-compliance issues faced by other pharma companies with similar operations to understand the non-compliance and proactively make necessary changes in our business operations. Observations for improvement are received at any site during regulatory audits. Customer and internal audits are assessed for improvement at all sites to make systems and processes robust across Alembics manufacturing operations.
REGULATORY RISK
INCREASINGLY STRINGENT REGULATORY STANDARDS ACROSS THE GLOBAL PHARMA LANDSCAPE COULD ADVERSELY IMPACT BUSINESS OPERATIONS.
Mitigation Measures
We have dedicated teams to monitor the regulatory landscape and understand the implications of the changes and their application to our operations. This allows us to prepare for the changes, ensuring seamless operations.
We have partners in some global geographies to market our products. Our association with these partners helps us remain aware of the regulatory dynamics in key markets of our presence.
The CQA conducts regular and scheduled audits at all sites throughout the year. They assess our systems, processes, and procedures to identify gaps in accordance with the ever-changing CGMP regulations and guidelines. These gaps are diligently addressed, ensuring the quality systems robustness.
COMPETITION RISK
GROWING COMPETITIVE INTENSITY IS LEADING TO PRICE EROSION AND IMPACTING BUSINESS PROFITABILITY.
Mitigation Measures
We are widening our product basket for the US market with more complex drugs on multiple platforms. Getting into complex spaces reduces the competition.
We are widening our geographic footprint with a nation-customised product basket for better penetration.
We plan to intensify our presence in select global markets with complementary marketing approaches.
We continue to strengthen our presence in the domestic market with a sharper focus on lifestyle therapies and the animal health space.
GROWTH RISK
PROFITABLE BUSINESS GROWTH IS AN ABSOLUTE NECESSITY TO GENERATE VALUE FOR STAKEHOLDERS.
Mitigation Measures
We continue to strengthen our R&D development pipeline with complex chemistry products in the areas of oncology, cardiovascular peptides, and injectable platforms, which will position us ahead of our peers. These products, once commercialised, would also help improve our profitability margins.
We are working diligently to improve the capacity utilisation of our newly commissioned facilities, which will generate economies of scale.
We have sharpened our focus on reducing costs by plugging wastages and improving organisational efficiencies.
LITIGATION RISK
WE FACE RISKS FROM INTELLECTUAL PROPERTY CLAIMS AND PRODUCT SAFETY-RELATED LITIGATION, WHICH CAN HARM OUR FINANCES, DAMAGE OUR BRAND REPUTATION, AND ERODE STAKEHOLDER TRUST.
Mitigation Measures
We focus on intellectual property management, build strong quality standards, and conduct thorough screenings. These include patent searches, tracking expiration dates, and evaluating validity and enforceability.
We maintain high-quality standards through defined policies, procedures, thorough testing, and training.
We have created a Corporate Quality Assurance cell, which ensures that all our units adhere to a single quality management and assurance system, ensuring consistency across all locations.
We have implemented secure and integrated digitisation initiatives, including LIMS for paperless labs, digitised GMP for online proof management, and enhanced data integrity protocols. Going a step ahead, we will shift to electronic QMS records, with full integration and electronic audits by FY26.
CYBER SECURITY RISK
INCREASED DIGITAL COMMUNICATION HEIGHTENS THE COMPANYS EXPOSURE TO CYBER THREATS, RISKING VITAL BUSINESS INTELLIGENCE AND FINANCIAL SETBACKS.
Mitigation Measures
We have created multi-factor authentication for external access and role-based access control for all system users.
We apply end-to-end encryption to data transmitted across critical Applications. We conduct regular security audits and vulnerability assessments of Critical digitised systems.
We have installed intrusion detection and endpoint protection tools on devices and networks.
We mandatorily provide cybersecurity training and enforce data-handling policies for all employees.
We continuously invest in upgrading our software packages, firewall, and security tools.
PEOPLE ATTRITION RISK
LOSING SKILLED PEOPLE, ESPECIALLY AT SENIOR POSITIONS, WILL IMPACT BUSINESS OPERATIONS AND STRATEGY EXECUTION.
Mitigation Measures
Unless necessary, we promote internal talent for senior leadership roles, ensuring stability and motivating the team.
We emphasise succession planning to ensure leadership continuity and provide career growth opportunities for employees.
We focus on team engagement through structured activities, milestone celebrations, and recognition programs like spot awards and appreciation boards to maintain a collaborative work environment. We hire science/pharmacy graduates and diploma engineers as entry-level talent, ensuring a steady flow of new talent and supporting internal growth for future leadership roles.
BOARD OF DIRECTORS
Eminent Personalities Who Continue to Reinforce Our Governance Ethic
BOARD OF DIRECTORS
MR. CHIRAYU AMIN
Chairman & CEO
Mr. Chirayu Amin plays a pivotal role in the growth of the organisation. Mr. Amin holds an MBA degree. He is well-adapted to the evolving needs of modern-day businesses. He actively contributes to society through trusteeships in hospitals and schools under charitable trusts.
MR. PRANAV AMIN
Managing Director
Mr. Pranav Amin heads the organisations international business. He is an Economics/Industrial Management graduate from Carnegie Mellon University in Pittsburgh, USA, and an MBA in International Management from Thunderbird, USA. A great people leader. Leads the enterprise through involvement, empowerment and autonomy.
MR. SHAUNAK AMIN
Managing Director
Mr. Shaunak Amin heads the India-branded business vertical, focusing on the domestic market. He graduated from the University of Massachusetts, USA, with Economics as his specialisation. He has extensive experience at renowned multinational companies, including Merril Lynch and the Hong Kong and Shanghai Banking Corporation, and he brings valuable insights to the Company. His expertise in sales and marketing provides the edge for growing the Companys business in India.
MR. RAJ KUMAR BAHETI
Director - Finance & CFO
Mr Raj Kumar Baheti is a Commerce graduate and a fellow member of the Institute of Chartered Accountants of India. He is also a fellow member of the Institute of Company Secretaries of India, possessing extensive and diverse experience in Finance, Accounts, Taxation and Management.
MR. ASHOK BARAT
Independent Director
Mr. Ashok Barat is a Fellow Member of the Institute of Chartered Accountants of India, a Fellow Member of the Institute of Company Secretaries of India, an Associate Member of the Institute of Chartered Accountants of England and Wales, and a CPA in Australia. He is a former President of the Bombay Chamber of Commerce and Industry, Council of EU Chambers of Commerce in India and a Member of the Managing Committee of ASSOCHAM. He is an Independent Director on the boards of Bata India Ltd., Huhtamaki India Ltd., Everest Industries Limited, GE Power India Limited, Aarti Industries Limited and Eveready Industries India Limited.
MR. JAI DIWANJI
Independent Director
Mr. Jai Diwanji is an advocate with over 25 years of experience. He completed his education at the University of Cambridge (U.K.) with a B.A. in law and holds a B.S.M. degree from Tulane University (U.S.A.) He is currently a partner at Desai & Diwanji, a full–service Indian law firm. He is an Independent Director on the boards of several other companies, including Kaira Can Company Limited, Onward Technologies Limited, Batliboi Limited and charitable organisations.
MR. MANISH KEJRIWAL
Independent Director
Mr. Manish Kejriwal received an AB (Bachelor of Arts in Engineering Sciences) from Dartmouth College, where he graduated Magna Cum Laude with a Major in Economics and Engineering Sciences and where he received the Deans Plate. He holds an MBA from Harvard University, graduating with high distinction as a Baker Scholar.
Mr. Manish Kejriwal is the Founder and Managing Partner of Kedaara Capital, a private equity firm specialising in control and minority investment opportunities in India. He brings over 30 years of experience in investing, covering the full private equity lifecycle across various industries and sectors.
Previously worked with marquee global brands such as McKinsey & Company (as a partner), World Bank and Goldman Sachs. Member of the boards of Bajaj Finserv Limited, Bajaj Holdings Investment Limited and multiple Kedaara investee companies. He is profiled as one of the ‘25 hottest young executives in India by Business Today.
MS. GEETA GORADIA
Independent Director
Ms. Geeta Goradia is a commerce graduate with an MA (Honours) in Industrial Economics and Law from M.S. University, Vadodara. Managing Director of Jewel Consumer Care Private Limited and an experienced Independent Director for multiple companies. Recipient of multiple awards, including the IWEC Universal and National Women Entrepreneur awards. The First female President of the Federation of Gujarat Industries and the immediate past Chairperson of FICCI Gujarat.
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