ANG Lifesciences India Ltd Management Discussions

GLOBAL PHARMACEUTICAL INDUSTRY

According to the IMFs April 2025 report, escalating trade tensions and record-high policy uncertainty are expected to weigh heavily on global economic activity. Global growth is now projected to slow to 2.8% in 2025 and 3% in 2026·well below both the January 2025 forecast of 3.3% and the 2000-19 average of 3.7%. Advanced economies are expected to grow at just 1.4%, with the U.S. at 1.8% and the Euro area at 0.8%. Emerging markets and developing economies are projected at 3.7% in 2025, with sharp downgrades for China and other countries hit hardest by trade measures. Intensifying downside risks, including prolonged trade wars and heightened uncertainty, could further dampen near- and long-term prospects.

Meanwhile, the pharmaceutical sector continues to play a vital role in patient care and economic growth. Valued at over USD 1.6 trillion, it is expected to expand at a CAGR of around 6%. Following WHOs declaration of the end of the COVID-19 public health emergency in May 2023, focus has shifted back to combating other communicable and non-communicable diseases. However, pharmaceutical manufacturers face mounting challenges·from cost pressures and evolving therapies to tighter regulations and rapid digitization.

INDIAN PHARMACEUTICAL INDUSTRY

India, often called the “Pharmacy of the World”, is the third-largest supplier of pharmaceuticals by volume, contributing 20% of global supply. With the highest number of US-FDA-compliant plants outside the U.S., over 3,000 companies, and 10,500 manufacturing units, India boasts world-class capabilities and a highly skilled workforce. The domestic market is also expanding rapidly, with rising demand for vitamins, minerals, and supplements (VMS). According to IMARC, the Indian pharmaceutical market is projected to reach USD 163.1 billion by 2032, growing at a CAGR of 12.3%, driven by rising healthcare needs, government initiatives, and greater health awareness.

On the economic front, India remains a standout performer. The IMFs April 2025 report projects growth of 6.2% in 2025 and 6.3% in 2026, cementing its position as the fastest-growing major economy. This resilience, despite global trade tensions and uncertainties, underscores Indias strong fundamentals and its growing role as a key driver of global economic growth. With continued reforms in infrastructure, healthcare, innovation, and financial inclusion, India is well-positioned to sustain momentum and further strengthen its influence in the global economy.

OVERVIEW OF THE COMPANY

With a strong commitment to serving humanity and a clear objective of delivering top-quality, cost-effective pharmaceutical products, ANG Group has established itself as a trusted name in both domestic institutional supplies and international markets. Over the years, the Group has consistently maintained a prominent position and played a pivotal role within the Indian pharmaceutical industry, recognized for its reliability, innovation, and excellence.

ANG Group is a WHO-GMP-certified consortium of pharmaceutical companies, with all its state-of-the-art units located in the industrial township of Baddi, Himachal Pradesh, India. These facilities are equipped with ultra-modern manufacturing technologies that fully comply with global WHO-GMP standards, enabling the Group to operate seamlessly on the global pharmaceutical roadmap.

The Group specializes in the manufacturing and marketing of a comprehensive portfolio of high-quality finished formulations, with a strong focus on Non-Beta Lactam, Beta Lactam, Cephalosporin, and Carbapenem segments. Its diversified product range covers multiple dosage forms, including dry powder injections, tablets, hard gelatin capsules, liquid syrups, liquid injections (ampoules/vials), and pre-filled syringes (PFS). This extensive capability allows ANG Group to cater to varied healthcare needs with precision, efficiency, and quality assurance.

Through continuous innovation, adherence to stringent regulatory standards, and an unwavering focus on affordability and accessibility, ANG Group continues to strengthen its presence across domestic and global markets·underscoring its mission to contribute meaningfully to patient care and the advancement of healthcare worldwide.

OPPORTUNITIES, RISKS, CONCERNS & THREATS

ANG Lifesciences India Limited operates in a dynamic pharmaceutical landscape that offers both significant opportunities and notable challenges. Opportunities lie in leveraging artificial intelligence for faster drug development, entering untapped and emerging markets, forming global alliances, and expanding into advanced therapies such as gene-based and mRNA tre atments. Growing emphasis on sustainability also paves the way for adopting eco-friendly manufacturing practices.

At the same time, the industry faces risks from stringent regulations, patent expirations of top-selling drugs, high R&D costs, cybersecurity threats, and fragile global supply chains. Concerns include mounting pricing pressures, safeguarding patient data, availability of skilled manpower, and environmental responsibilities. In addition, threats such as geopolitical conflicts, new disease outbreaks, legal challenges, and competition from technology-driven healthcare entrants remain important considerations.

While the Company currently operates in a relatively stable business environment and does not perceive risks that could materially impact its operational or financial performance, it remains vigilant to regulatory and policy-related developments. These include drug pricing changes, taxation policies, product approval processes, and environmental norms. The Company actively monitors such changes and ensures timely compliance to minimize potential disruptions.

Looking ahead, ANG Lifesciences is confident of strengthening its market position through strategic expansion, increased manufacturing capacities, and capability enhancement across the organization. It is also exploring opportunities across the value chain, including collaborations and alliances with global business associates, aimed at boosting its selective product portfolio.

The Company remains deeply committed to its customers, focusing on quality and satisfaction. Recognizing the importance of skilled manpower in a rapidly evolving industry, ANG Lifesciences emphasizes continuous trai ni ng , d evel op me nt , a n d m otivati on of its workforce . By nurturing professionalism and enhancing employee skills, the Company is equipping its teams to meet future challenges and drive longterm sustainable growth.

FINANCIAL PERFORMANCE

During the year under review, on standalone basis, revenue of the company was Rs. 9,235.41 Lakhs as compared to Rs. 13,220.40 Lakhs in the corresponding previous year. For the coming year, although the overall economy and business scenario is grim across all sectors, but we foresee the outlook of your company as quite positive and improving.

The details of changes in key financial ratios are explained in the table below:-

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

The Companys defined organizational structure, documented policy guidelines and adequate internal controls ensure efficiency of operations, compliance with internal policies, applicable laws and regulations, protection of resources and assets and accurate reporting of financial transactions. The Company continuously upgrades these systems in line with best available practices.

The control systems are reviewed by the management regularly. The same are also reviewed by the Statutory Auditors and Internal Auditors from time to time. The Company has also adopted various policies and procedures to safeguard the interest of the Company. These policies and procedures are reviewed from time to time. There has also been proper reporting mechanism implemented in the organization for reporting any deviation from the policies and procedures. Compliance audit is also conducted from time to time by external agencies on various areas of operations.

INVESTOR RELATIONS AND ENGAGEMENT:

Investor Relations (IR) is playing an increasingly important role in todays volatile world in enabling companies to manage investor expectations. The objectives of Companys investor relations activities are to boost confidence and develop a long-term relationship of trust with stakeholders including Shareholders, Investors & Analysts, through true and fair disclosure of information. To pursue these objectives at all times, our Company continuously discloses necessary information.

HUMAN RESOURCES VIS-A-VIS INDUSTRIAL RELATIONS

Human resources continue to be one of the most critical assets of ANG Lifesciences India Limited. The Company recognizes the importance of human value and ensures that employees are provided with both moral and financial encouragement to stay motivated and deliver their best. During FY 2024-25, human resources received significant attention in line with the Companys growth trajectory and evolving business needs. Attracting the right talent remains a key focus, while special emphasis is placed on training, employee welfare, and workplace safety to strengthen overall human capabilities.

As part of its people strategy, the Company undertook several initiatives in talent acquisition, retention, capability development, and employee well-being. Structured training programs were conducted across departments to enhance technical expertise and leadership skills. Employee engagement, productivity improvement, and recognition of outstanding performance continued to be integral to the Companys HR practices.

As of March 31, 2025, the Company had 412 employees (on roll). A strong retention rate underscores the Companys commitment to providing a supportive and g rowth-oriented work environment. Industrial relations during the year remained harmonious and collaborative, facilitated by regular dialogue between management and employee representatives. The Company also ensured 100% compliance with all statutory labor, health, and safety requirements across its operations.

CAUTIONARY STATEMENT

The statements in the “Management Discussion and Analysis Report” section describe an optimistic approach of the management regarding the Companys visions strategies objectives projections estimates expectations and predictions. These may be “forward looking statements” within the meaning of legal framework. However, the annual performance can differ significantly from those expressed or implied depending upon the market conditions economic and climatic conditions Government policies and other incidental factors.