aurobindo pharma ltd share price Management discussions

I Outlook

The global economys baseline scenario indicates a slight decrease in output growth from 3.4% in 2022 to 2.8% in 2023, followed by a rise to 3% in 2024. Although these estimates are lower than expected due to adverse shocks in early 2022, there are still signs of positive growth.

According to the IMF, advanced economies are expected to experience a decrease in growth by half, slowing down to 1.3% in 2023 before increasing to 1.4% in 2024. Almost 90% of these economies are projected to experience a decline in growth in 2023. Conversely, emerging markets and developing economies are predicted to experience more robust growth than advanced economies, with a projected growth rate of 3.9% in 2023 and 4.2% in 2024. However, these estimates may vary across regions. Low-income developing countries are expected to grow by an average of 5.1% over 2023-24, indicating an optimistic outlook.

Figure 1.13. Growth Outlook: Feeble and Uneven

(Percent; dashed lines are from January 2022 WEO

Source: IMF staff calculations.

Note: The figure shows the projected evolution of real GDP growth for the indicated economy groups. WEO = World Economic Outlook

However, the IMF cautions that the growth in per capita income of low-income developing countries may be lower than that of middle-income economies, which could impede progress towards achieving equal living standards among all countries.


As per the World Banks latest India Development Report, India remains one of the fastest growing major economies in the world, despite challenging global environment. As per the National Statistical Office (NSO), the countrys real GDP growth during FY23 is estimated at 7.2%, as compared to 9.1% in FY22.

The recent economic growth in India can be attributed to the resurgence of private consumption, which has replaced export stimulus as the primary driver of growth. With near-universal vaccination coverage, consumer sentiment has improved, resulting in a surge in spending on contact-based services such as restaurants, hotels, shopping malls, and cinemas. Production activity and capacity utilisation growth have been observed across various sectors.

Moreover, the Indian governments significant increase in capital expenditure has played a crucial role in driving the economy forward. In the first eight months of FY23, the capital expenditure of the central government increased by 63.4%. The strengthening of corporate balance sheets and increased credit financing has further contributed to a sustained increase in private Capex, positively impacting the economy.


Indias economy has received a boost from various factors, such as the presence of a young and tech-savvy population and a strong emphasis on innovation. Despite facing headwinds from global geopolitical events, the economy is anticipated to grow 6.3% for the current fiscal year FY24, as per the World Bank. The government has taken steps to improve healthcare access, with initiatives like the Ayushman Bharat programme, which aims to provide free healthcare insurance coverage to more than 500 million people, and the National Health Stack, which aims to create a unified digital healthcare system across India. These measures are expected to fuel the economys growth and contribute to better health outcomes for the population.

Industry insight


The pharmaceutical industry has exhibited remarkable agility in responding to the COVID-19 pandemic by developing highly effective vaccines and treatments at unprecedented speed. However, despite a temporary slowdown in global medicine use in 2022, the industry is expected to return to pre-pandemic growth rates by 2024.

The industrys future growth is subject to various factors, such as viral variants, vaccine distribution, and economic and geopolitical uncertainties. Over the next five years, the US market is expected to grow at -1 to 2% CAGR on a net price basis due to the Inflation Reduction Acts conservative outlook, while Europe is expected to focus on generics and biosimilars, leading to increased pressure on the pricing of novel medicines. The Asia-Pacific region is predicted to experience steady growth following the pandemic, but Chinas growth will likely slow down due to pricing pressures.

Meanwhile, the pharmerging* markets spending have I experienced significant growth, reaching US$370.8 billion in 2022 and growing at a CAGR of 72% between 2018 and 2022. Expanding healthcare access in most countries and increased spending on new medicines will propel growth in these markets. However, the off-patent branded medicines and low pricing of generic medicines may impact growth.

According to IQVIA, the pharmerging markets are expected to grow 5-8% in spending through 2027. On the other hand, lower-income countries are expected to experience a CAGR of 4.5-75% in spending growth, with projected spending of US$29-33 billion by 2027, up from US$23.2 billion in 2022, the same report said.

Global pharmaceutical market growth

2022 2018-2022 CAGR 2027 2017-2023 CAGR
Developed markets 1,088 5.7% 1,370-1,400 2.5-5.5%
Pharmerging markets 371 7.2% 487-518 5-8%
Lower income countries 23 6.0% 29-33 4.5-7.5%
Global 1,482 6.1% 1,900-1,930 3-6%

COVID-19 pandemic response

The COVID-19 pandemic has brought to light the crucial role of the pharmaceutical industry in addressing global health crises. The industry has responded rapidly to the pandemic by creating highly effective vaccines and therapeutics. However, future growth may be impacted by factors such as viral variants, vaccine distribution, and economic and geopolitical uncertainties.

Shift in global spending

While the United States remains the worlds largest pharmaceutical market, pharmerging markets like China, India, and Brazil are expected to experience the highest growth in spending. Developed markets are expected to grow at a slower rate due to pricing pressures and patent expiries, while emerging markets are anticipated to grow strongly due to the adoption of novel medicines and increased volume.

Focus on precision medicine

Precision medicine, which involves tailoring medical treatment to an individuals specific genetic makeup and medical history, is gaining momentum. IQVIA predicts that precision medicine will be a major area of growth in the pharmaceutical industry, with an increasing number of personalised therapies being developed and approved.


Biosimilars have garnered substantial attention in the global pharmaceutical arena owing to their growing importance in the treatment of various diseases. According to Mordor Intelligence, the worldwide biosimilars market is estimated to be worth US$30 billion in 2023, which is expected to reach US$70 billion by 2028, with a CAGR of 18.3% over 2023-2028. The increased demand for biosimilars can be attributed to several factors such as escalating healthcare expenses, the expiration of patents for biologic drugs, and growing pressure to curb healthcare expenditure. This market is expected to be propelled by a growing number of biosimilar product launches in major developed and emerging markets, alongside greater adoption of biosimilars by healthcare professionals and patients alike.


In the upcoming years, the generic drug market is anticipated to witness significant expansion. According to IQVIA Global Use of Medicines Report 2023, the global market for generic drugs (including non-original brands and unbranded generics) was valued at US$395 billion in 2022 and is predicted to grow at a CAGR of 5.5%, reaching approximately US$515 billion by 2027 The growth of this market can be attributed to various factors, including the expiration of patents of numerous branded drugs, surging demand for cost- effective medications, and increasing prevalence of chronic illnesses. Additionally, the market is expected to be propelled by the escalating number of mergers and acquisitions, partnerships, and collaborations among pharmaceutical companies, as well as the rising focus on research and development activities.

Speciality medicines

Specialty medicines are gaining popularity in higher-income countries, especially for chronic, complex, and rare diseases, and are expected to represent 43% of global spending by 2027, with developed markets accounting for more than half of the spending. However, pharmerging countries have not been able to keep up due to high costs, resulting in specialty medicine to account for 16% of the spending in 2022, a figure that is projected to remain the same till 2027 Although specialty medicines treat only a small proportion of patients, the increased spending on them is expected to lead to cost savings for traditional therapies, which will benefit a larger patient population.

Continued innovation

Innovation remains a key driver of growth in the pharmaceutical industry. Despite the impact of COVID-19, innovation of novel medicines will remain a major factor fuelling the growth of the medicine industry, offset by the loss of exclusivity and the lower costs of generics and biosimilars.

Digital health

The integration of digital technology in healthcare is another significant trend in the pharmaceutical industry. The report suggests that digital health solutions, such as telemedicine and digital therapeutics, are becoming more prevalent and are expected to play an increasingly important role in healthcare delivery. As per Research and Markets , the global digital health market is projected to grow from US$227.5 billion in 2022 to US$872.2 billion by 2025, with a CAGR of 16.1%. Telemedicine saw significant growth during the pandemic, with the global telemedicine market expected to reach US$285.7 billion by 2027, up from US$87.2 billion in 2022, as per Markets and Markets.

Focus on sustainability and social responsibility

The pharmaceutical industry is increasingly being held accountable for its environmental impact and social responsibility. In 2020, the global sustainable investing market reached US$1.7 trillion, with environmental, social, and governance (ESG) factors becoming a key consideration for investors. In response, pharmaceutical companies are implementing sustainability strategies and initiatives, such as reducing carbon emissions and investing in social programmes.


Increasing demand for healthcare services: With an ageing population and rising chronic diseases, the demand for healthcare services is increasing globally. This has led to an increase in demand for medicines, particularly in emerging markets. The global pharmaceutical market is expected to grow by 3-6% annually from 2023 to 2027. This growth is primarily attributed to increasing healthcare spending, expanding access to healthcare services, and rising demand for innovative medicines in emerging markets.

Innovation and new product development: The development of innovative medicines is driving growth in the pharmaceutical industry. Advances in biotechnology and genomics are enabling the development of new therapies for previously untreatable diseases. As per IQVIAs 2023 report, R&D funding from the large pharmaceutical sector remained high, with a record US$138 billion invested in R&D by the 15 largest pharmaceutical companies in 2022.

Expanding access to healthcare: Efforts to expand access to healthcare, particularly in emerging markets, are driving demand for medicines. This includes government initiatives to provide universal health coverage and the expansion of private health insurance. The development of biosimilars and generics provides patients with more affordable and accessible treatment options, leading to the expansion of the global pharmaceutical market. IQVIA estimates incremental savings from biosimilars are expected to be a cumulative US$383 billion globally from 2023 to 2027.

Increasing use of digital technology: The use of digital technology in healthcare is increasing, with the development of digital therapeutics and the use of artificial intelligence (AI) in drug discovery and development.

Evolving healthcare systems and policies: Changes in healthcare systems and policies are affecting the pharmaceutical industry. These changes include a shift towards value-based healthcare and the introduction of policies to regulate drug pricing and reimbursement, which are expected to impact pharmaceutical company profits.

Growing investment in healthcare: Increasing investment in healthcare, particularly in emerging markets, is driving growth in the pharmaceutical industry. This includes investment in healthcare infrastructure, research and development, and partnerships between pharmaceutical companies and healthcare providers. As per IQVIAs 2023 report, global spending on biotech drugs is expected to reach US$666 billion by 2027, about 35% of global medicine spending.

Key global markets

Developed markets

Developed markets continue to be a key driver of the global pharmaceutical industry. In these markets, spending growth remains steady, with new products offsetting patent expires.

The United States, the largest developed market, is expected to grow at a much slower pace of 0.5% CAGR on a net price basis over 2023-27, compared to 4% CAGR in the last five years. Spending in Europe is expected to increase by US$59 billion through 2022-2027, with a focus on generics and biosimilars and escalating pressures on the value and negotiated prices of novel medicines.


The future of pharmaceutical spending in the United States is a story of contrasts, with both growth and moderation on the horizon. According to the IQVIA report of 2023, spending on medicines is still projected to increase by a substantial US$134 billion over 2022-2027 to US$763 billion, primarily driven by using existing branded products. New brand launches and price increases will fuel this surge. However, the report cautions that this growth will be tempered by several factors, such as increased competition from generics and biosimilars, as well as the growing prevalence of value-based contracting and other cost containment measures, including the provisions of Inflation Reduction Act (IRA).

The COVID-19 pandemic has also played a significant role in shaping the pharmaceutical landscape. The market is expected to see the launch of about 250 new active substances over the next five years, which could result in over US$110 billion in new brand spending over the period. However, the losses of exclusivity, especially in small molecule and biologics areas, could lead to a drop in spending by US$141 billion over the next five years.

US pharmaceutical spending and growth (us$ billion)

2018-2022 CAGR 2022 2023-2027 CAGR 2027
4% 629 -1 to 2% 763


As per IQVIAs 2023 report, Pharmaceutical spending in top 5 European markets (EU5 - France, Germany, Italy, Spain, and UK) is projected to grow moderately, with a CAGR of 5.2% over 2022-2027 The growth is anticipated to be fuelled by new brand launches, particularly in oncology and rare diseases, as well as increased adoption of biosimilars and generics. Despite this, the report highlights that growth is expected to be moderated by loss of exclusivity, pricing pressures, and other cost containment measures.

EU5 pharmaceutical spending and growth (us$ billion)

2017-2022 CAGR 2022 2022-2027 CAGR 2027
6.2% 204 5.2% 263

Pharmerging markets

The pharmerging markets are expected to witness a growth rate of 5-8% between 2023-2027, primarily due to the high demand for generic and branded generic drugs. These markets have demonstrated resilience despite the COVID-19 pandemic, with less impact on demand and disruptions. The pharmerging markets have a higher inclination towards generics and nonoriginal branded products, which are generally priced lower than originator products.

The growth is attributed to the rising middle class and the shift towards universal healthcare coverage in these economies.

The healthcare infrastructure investment and increased demand for innovative therapies will also contribute to growth. Brazil and Mexico lead the growth in Latin America, with an expected growth rate of 9-12% and 7.5-10.5%, respectively. Colombia is viewed as a stabilising force in the region, while Russia is projected to grow at a CAGR of 6-9% by 2027 in Eastern Europe.

Pharmerging markets - Pharmaceutical spending and growth

Region 2022 2018-2022 CAGR 2027 2023-2027 CAGR
Pharmerging Markets 370.8 7.2% 487-518 5-8%


The Indian pharmaceutical industry has become a thriving sector, producing a range of medications and vaccines at affordable prices. Known for its expertise in generic drugs, biosimilars, and biologics, the industry has grown at a CAGR of 9.43% over the past nine years, making it the third-largest pharmaceutical producer by volume. The market is comprised of segments such as contract research and manufacturing, bulk drugs, and over-the-counter medications. The Pharma sector currently contributes to around 1.72% of the countrys GDP.

India has a significant presence in the global API market, with 500 Indian API producers accounting for around 8% of the market. India is also a major player in the global exports of generic drugs, meeting around 20% of the demand. The country has the largest number of pharmaceutical manufacturing facilities that comply with USFDA standards outside the US.

The Indian pharmaceutical market is predicted to reach US$65 billion by 2024 and US$130 billion by 2030, with Indian pharma companies having a significant share in the US and EU prescription market. The government is committed to improving healthcare, with an estimated expenditure of over 2% of the countrys GDP on healthcare in FY22. The government is also aiming to increase the penetration of health insurance, which is likely to boost the industrys growth further.


The production-linked incentive (PLI) scheme, a part of the Governments Atmanirbhar Bharat program, is a significant step towards boosting Indias manufacturing sector and achieving self-reliance. In 2021, Government approved ?15,000 crore PLI scheme for the pharma sector. Recently, a similar scheme has been extended to promote the production of medical devices and to strengthen the medical devices industry into a competitive, self-reliant, resilient, and innovative industry that caters to the healthcare needs of not only Ilndia but also the world. The vision is to turn India into a global leader in the manufacturing and innovation of medical devices by achieving a 10-12% share in the expanding global market over the next 25 years. It is expected to help the Medical Devices Sector grow from the present US$11 billion to U$50 billion by 2030.

Growth drivers

Cost efficiency

Indias pharmaceutical industry has gained global recognition for its cost-effective and high-quality medicines. It has become a major player in the global pharmaceutical market and is referred to as the Pharmacy of the World." One of the greatest success stories in mine is access to affordable HIV treatment from India.


The Ministry of Chemicals and Fertilizers launched the Strengthening of Pharmaceutical Industry (SPI)" scheme with a total financial outlay of 7500 crore (US$61 million) to improve the productivity, quality, and sustainability of existing pharma clusters and MSMEs across the country.

The Government has set a target to increase the number of Pradhan Mantri Bhartiya Janaushadhi Kendras (PMBJKs) to 10,500 by the end of March 2025. PMBJKs offer affordable medicines to people across the country. The product basket of PMBJKs comprises 1,451 drugs and 240 surgical instruments.

Increasing investment

Indias pharmaceutical industry is attracting significant foreign direct investment (FDI). Up to 100% FDI has been allowed through automatic routes for Greenfield pharmaceutical projects. For Brownfield pharmaceutical projects, FDI is allowed up to 74% through automatic route and beyond that through government approval. (Source: IBEF)

About Aurobindo Pharma

Aurobindo Pharma Limited is a leading global pharmaceutical company based in Hyderabad, India, specialising in manufacturing both generic formulations and active pharmaceutical ingredients (API), with a strong focus on developing complex and difficult-to-manufacture pharmaceutical products for the global markets.

The Company has 25 manufacturing and packaging facilities for its API and formulation business, and has the required approval from global regulatory authorities, such as USFDA, EDQM, UK MHRA, Japan PMDA, WHO, Health Canada, etc. Its robust product portfolio covers major therapeutic areas, such as anti-retroviral, CVS, CNS, gastroenterological, anti-allergies, antibiotics, and anti-diabetics, and is marketed in over 150 countries. It employs over 23,000+ employees, with a dedicated R&D team of over 1500+ scientists and analysts working in nine research facilities spread across the globe. The companys R&D focus is on developing niche oral, sterile, specialty injectable products, biosimilars, and peptide-based products, involving clinical and end-point studies.

APLs vision is to develop complicated molecules, differentiated offerings, broad spectrum products, and newer technologies to improve health outcomes globally.

In todays rapidly changing economic landscape, APL is focused on strengthening its core capabilities while adjusting its strategic priorities. It continues to create value by expanding our manufacturing capabilities and entering new, high- potential markets. Through innovation and the development of new products, we are determined to further enhance our global standing.



Amount (7 Cr) FY23 FY22 % y-o-y growth FY23% of total sales
Formulations USA 11,654 11,122 4.8% 46.9%
Europe 6,426 6,480 -0.8% 25.9%
Growth Markets 1,973 1,504 31.2% 7.9%
ARV 954 833 14.6% 3.8%
Total formulations 21,007 19,939 5.4% 84.5%
Active pharmaceutical ingredients (API) Betalactam 2,448 2,083 17.6% 9.8%
Non Betalactam 1,400 1,433 -2.3% 5.6%
Total API 3,848 3,516 9.5% 15.5%
Revenue from operations 24,855 23,455 6.0%

*Except ARV, other reported segments within formulation are further classified based on geographies of the customers


• Recorded revenues at 7248,554 million, EBITDA at 737,582 million, with EBITDA margin at 15.1%

• Filed 49 ANDAs with USFDA, of which 10 are injectables.

• Received final approval for 59 ANDAs from USFDA of which 16 are injectables.

• Launched 34 products in USA, including 17 injectable products.

• Filed two biosimilars with MHRA and one biosimilar with Health Canada.

• Continued to advance Phase 3 clinical trials of two oncology and one ophthalmic biosimilar products, including completion of the treatment phase of the biosimilar to Herceptin.

• 15 Valent Pneumococcal Conjugate Vaccine, developed by Tergene Biotech (joint venture - 80% owned by APL) completed successful 3+0 trial in 1,130 pediatric subjects. The vaccine received recommendation from Subjects Expert Committee, that operates under the aegis of CDSCO, for grant of permission to Tergene to manufacture and market the vaccine with three dose schedule in pediatric age group of 6, 10 and 14 weeks.

• Made significant progress in setting up Pen-G facility at Kakinada, Andhra Pradesh. The project was awarded to the company under the PLI scheme of the government of India.

• Completed construction of the China plant and exhibit batches for eighteen products were taken for regulatory filings. Also received four more import drug approvals in China in FY23, in addition to two received in FY22.

• Completed the integration of the acquired domestic formulation business of Veritaz Healthcare.


Formulations business posted a revenue of 7210,074 million in FY23, thereby contributing to 84.5% of the total revenues. From a geographical standpoint, the US and Europe accounted for 73% of total revenue. During the year, the Company manufactured approximately 41 billion units of various dosage forms, such as tablets, capsules, injectables, etc., in its 15 state-of-the-art manufacturing and packaging facilities, which are located in India, Portugal, Brazil and Puerto Rico.

Formulations business revenue trend

(in ? million)

FY19 FY20 FY21 FY22 FY23
161,570 200,119 216,860 199,393 210,074

? 6.8% 5-year CAGR

US formulations

The US formulation business revenue grew by 5% y-o-y to 7116,544 million in FY23. The Company held its top position in terms of prescription volume share in the US as per IQVIA March Quarter 2023 data. It has presence across generic orals, injectables, OTC and branded oncology segments. During the year, the company launched 34 products within the US formulations segment, including 17 injectable products.

US Formulations business revenue trend

(in ? million)

FY19 FY20 FY21 FY22 FY23
90,307 114,835 123,245 111,221 116,544

Revenue mix of the US formulations segment

US formulation segment % share in US formulation sales (FY23)
Orals 68%
Generic Injectables 17%
Branded injectables 8%
OTC 7%


Oral segment sales within the US Formulations business grew by 2% y-o-y to 779,439 million in FY23. The growth was due to new product launches and positive forex impact, offset by price erosion in some product categories. As of 31 March 2023, the company has 410 Oral product ANDAs with final approval, while 132 ANDAs are awaiting approval.

Generic injectables

Generic injectables sales within the US formulations business grew by 4% y-o-y to 720,351 million in FY23. The growth was due to new product launches, higher volume and positive forex impact, offset by price erosion in some products. As of 31 March 2023, the company has 126 injectable product ANDAs with final approval while 44 ANDAs are awaiting approval.

Branded oncology injectables

The US branded oncology business consisting of seven brands marketed by Acrotech Biopharma, witnessed 11% y-o-y growth in revenue to 78,766 million in FY23. The company entered into a licensing deal with Evive to commercialise Ryzneuta™ (Efbemalenograstim alfa) in the US. The product is currently under late-stage review by the US FDA for Chemotherapy- Induced Neutropenia. It also initiated two phase-III studies for the topical product MM36, licensed from Otsuka, for the treatment of atopic dermatitis.

Over-the-counter drugs (OTC)

OTC sales within the US Formulations business grew by 29% y-o-y to 77,989 million in FY23. The growth was driven by new launches, higher volume, and positive forex.

Europe formulations

APL has a presence in ten countries in Europe/UK with full-fledged Pharmacy, Hospital, and Tender sales infrastructure. It ranks amongst the top 10 Generic companies in 8 countries, including four of Top-5 EU countries. France and Netherlands are the top two markets for the company in Europe. In FY23, Europe formulation segment revenue declined by around 1% y-o-y to 764,256 million. The decline was due to negative forex impact, offset partially by higher volumes. Despite a relatively muted market in Europe, the companys sales in the local currency grew at 5.8% CAGR over the last five years.

As part of efforts to improve profitability of the Europe business, now around 57% of volume sold in Europe is sourced from the companys manufacturing plants in India.

EU formulations revenue trend

(in ? million)

FY19 FY20 FY21 FY22 FY23
49,602 59,218 60,608 64,803 64,256 _

Growth markets formulations

Growth market sales in FY23 grew by 31% y-o-y to 719,729 million. The segment contributed to 79% of the total revenue of the company during the year. Within the segment, the key markets in FY23 were Canada, Domestic market (India), Mexico, South Africa, and Brazil. Domestic formulation sales stood at 72,268 million during the year.

Growth markets formulations revenue trend

(in ^ million)

FY19 FY20 FY21 FY22 FY23
11,937 13,551 14,379 15,039 19,729

ARV formulations

ARV formulation segment sales grew by 15% y-o-y to 79,544 million in FY23. This was led by higher volumes and positive forex impact, offset partially by lower pricing. During the year, the company won bids to supply in both the Global fund and PEPFAR allocation. In the Global fund, APL has been selected as strategic supply partner for three years duration from January 2023 to December 2025. In PEPFAR, it has been selected under both Lot-1 and Lot-2 allocation.

ARV formulations revenue trend

(in ? million)

FY19 FY20 FY21 FY22 FY23
9,725 12,515 18,628 8,330 9,544


The API segment of the company, which is a key pillar for the companys vertically integrated business model, witnessed 9.5% y-o-y growth in revenue during FY23 to 738,478 million, thereby accounting for 15.5% of the total revenue. APL has a presence in both Beta Lactum and non-Beta Lactum APIs, with the former contributing to 64% of the total API sales. The company aims to be a competitive supplier of APIs meeting stringent quality requirements. It employs strict cost control and efficiency measures in R&D, supply chain and manufacturing operations.

Last year the company embarked on its project to set up a Penicillin-G manufacturing facility of 15,000 tonnes per annum capacity as part of the PLI scheme of the government of India. The project installation progressed as per plan during the year and is expected to complete in FY24.

API revenue trend

(in ? million)

FY19 FY20 FY21 FY22 FY23
34,030 30,834 30,859 35,156 38,478


Key ratios

Particulars As on March 31,2023 As on March 31,2022
Debtors turnover 5.9 6.2
Inventory turnover 3.1 2.8
Interest coverage ratio 20.0 73.6
Current ratio 1.9 2.2
Debt equity ratio -0.05 -0.1
Operating profit margin (EBITDA Margin %) 15.1% 18.7%
Net profit margin (%) 7.8% 11.3%
Return on net worth (%) 7.5% 11.4%


APLs manufacturing footprint includes 25 commercialised manufacturing units for formulations and APIs, spread across India (22), Portugal (1), Brazil (1) and Puerto Rico (1). Several leading regulatory agencies such as US FDA, UK MHRA, EU, Japan PMDA, WHO, and Health Canada have approved the facilities. The integrated nature of business enables seamless production schedules, with on-time availability of raw materials and finished products, ensuring timely response to market opportunities. During the year, six units received EIRs from US FDA, including two EIRs for pre-approval GMP audits.

The company also has seven manufacturing facilities under the commissioning stage, including three in the US and one in China. With these units getting commercialised, APL will have operational manufacturing capabilities in complex generic products, including injectables, inhalers, topical and transdermal products, biosimilars, and vaccines.


• Vertically integrated manufacturing

• Presence in multiple therapeutic areas

• Global footprint

• Strong R&D capability

• Skilled workforce

• Capability of delivering high-quality, low-cost generics

• Dominant API player

• Strong distribution network

• Competitors with similar offerings and business structures

• High mobility of workforce within the industry

• Pricing pressures for generics, price erosions for new launches and older molecules Regulatory challenges in existing/ new markets

• Rise in demand for lifestyle products and geriatric care

• Global response to pandemic/s

• Capacity expansion and building diverse capabilities.

• Successful execution in new business areas like biologics, vaccines, dermatology, transdermal patches, and respiratory medicines

• Expansion into new growth markets including domestic formulation business

• Achieving a global scale of operations

• Control over raw material sourcing

• Intense competition from established players and new entrants

• Increasing focus on value-based healthcare and drug pricing regulations

• Disruptions in supply chain and raw material sourcing due to geopolitical and economic factors

• Evolving customer preferences and changing market dynamics.


APL attributes its success and continued growth to its dedicated, skilled, and proficient workforce, who serve as its representatives to the outside world. Therefore, the employees are the organisations most valuable assets and significant stakeholders. APL provides a secure and safe working environment that promotes equal opportunity and flexibility and enables its staff through various training and development initiatives in all business areas. The company fosters human potential and ensures that its people-centric workplace remains viable amid evolving market conditions, thanks to efficient leadership and continual knowledge enhancement.

The Company focuses on unlocking human potential across the organisation by:

• Leveraging technology, processes, and performance measurements to build capabilities

• Conducting leadership initiatives and programmes in partnership with top business schools and organisations to develop its workforce

• Promoting a collaborative environment by integrating its global workforce through projects and other tools

• Encouraging a dynamic and positive work culture by recognising people for their productivity, innovation, and excellence

• Prioritising the growth and well-being of its people

• Realigning its strategies to adapt to the changing work environment and continue to prioritise its people


APL firmly embraces the significance of sustainability and its crucial role in shaping a better future. Our dedication to environmental stewardship is evident in our adoption of sustainable practices across all operations. We have achieved significant milestones in various areas, such as sustainable packaging and energy generation. By embracing sustainable packaging techniques, we have successfully reduced waste and promoted responsible resource management. Moreover, our investment in solar power has resulted in the consumption of 43,000 MWh of solar energy, contributing to cleaner energy sources and a decreased environmental impact. To address . water pollution and antimicrobial resistance, we have proactively implemented wastewater treatment measures at our manufacturing facilities, thereby highlighting our commitment to responsible resource management and a healthier environment.

Some of our notable accomplishments that underscore our commitments are:

• 17% reduction in carbon foot print from baseline year FY20

• 29% reuse of treated wastewater out of total wastewater generated

• about 12% utilisation of renewable energy (power - power)

• 100% reuse/ recycle of non-hazardous waste

As we expand our manufacturing scale and strengthen our market presence, we understand that sustainable growth necessitates a focus on nurturing and empowering our talented workforce. We recognise the importance of providing opportunities for employee development and cultivating a culture of inclusivity and diversity. This approach ensures a skilled, engaged team that drives innovation and operational excellence. Our commitment to talent development not only strengthens our organisation but also enhances the well-being of our employees and the communities in which we operate. By combining sustainable manufacturing practices with a focus on talent, we are confident in expanding our market presence while upholding our commitment to sustainability and long-term success.


We firmly believe in creating a healthier ecosystem and driving positive change through a holistic approach encompassing robust governance, transparency, and efficient information flow. To ensure the integration of sustainability into our operations, we have implemented a three-tier sustainability governance model emphasising accountability and continual improvement.

Through our Corporate Social Responsibility (CSR) initiatives, we actively target marginalised groups, enhance patient health, and tackle pressing social challenges. Our focus areas include diversity and inclusion, water conservation, responsible supply chain practices, carbon emissions reduction, and social accountability. By adhering to these principles, we strive to foster community well-being and contribute to building a sustainable future. In FY23, we spent 7763 million on CSR activities.

Our CSR initiatives encompass a wide range of areas, including education, healthcare, sanitation, rural water systems, nutrition, sustainable agriculture, womens empowerment, rural development, and environmental sustainability. These efforts have positively impacted the lives of 7.38 lakh individuals.

Risk Management


Enterprise Risk Management (ERM) frameworks objective is to address all major risks in a proactive manner to ensure business continuity and sustain organisational objectives. This is ensured by deploying an effective Risk Management Framework which helps in proactively identifying, prioritising and mitigating risks. The Companys ERM practices are based on (COSO ERM Framework 2017), developed by the Treadway Commission. ERM framework is designed to minimise an adverse impact of the risks and it enables the company to leverage market opportunities effectively and enhances its competitive advantage over medium and long term and enhances stakeholders value.


Risk Management Committee of the company consists of the following members viz. Mr. Raghunathan, Mr. Sarath Chandra Reddy and Mr. Girish Paman Vanvari who is the chairman of the committee. The Board had re-constituted Risk Management Committee w.e.f. 1st April, 2023 which consists of Mr. Santanu Mukherjee, Mrs. Savita Mahajan as new members and Mr. Girish Paman Vanvari continued as the chairman of the committee.

The company has established a separate department to monitor the enterprise risk and for its management. The committee had formulated a risk management policy for dealing with different kinds of risk which the company faces in its actual operations. The risk management procedure is reviewed by the Audit Committee and Board of Directors on a regular basis along with quarterly financial results of the Company.

Risk Management framework highlights following risk categories of the company.

Strategic risks: These risks are pertaining to markets, products, resources, business growth & revenue model, investment etc. which can impact business objectives. Ownership of these risks would be with the top management.

Operational risk: These risks are pertaining to business operations like production capacity, quality assurance, customer demand, availability of materials, human safety etc. which can impact on business. Ownership of these risks would be with Operations team.

Project risk: These risks are pertaining to projects like delay in commissioning, budget issues etc. can impact business and lead to financial losses. Ownership of these risks would be with functional heads.

Compliance risks: There risks are pertaining to regulatory and statutory compliances can impact the companys reputation and can hamper business operations. Ownership of these risks would be with the respective functional heads.

Financial risks: These risks are pertaining to effective and efficient utilisation of the financial resources like currency fluctuations, credit risks, liquidity risks, etc. These can impact financial performance of the company like revenue, profitability, and liquidity etc. Ownership of these risks would be with the CFO.

Information Technology (IT) risks: There risks are pertaining to IT like technology obsolescence, Cyber-attacks or breach of security, data loss etc. can impact on business operations. Ownership of these risks would be with the CIO.


The Company has aligned risk management process with every part of the critical business processes to ensure that the processes are designed and operated effectively towards the achievement of business objectives. Risks are addressed across all key business functions in a holistic manner.


Aurobindo, being a generic drug company like other pharmaceutical companies having a business presence in the domestic and international markets including USA, Europe and other markets covering over 150+ countries and having 25 manufacturing and packaging facilities worldwide, is also exposed to some significant risks of Global Recession, which could have an adverse impact on operations and revenues namely Supply Chain, Logistics, Production, Demand and Supply, Customer delivery, Sales volumes and Cash flow as discussed above.


There is a significant risk to Aurobindo in procuring raw-material from China and other markets, including the domestic market. The Company continues to have a high dependence on the China market for import of Key Starting Materials (KSMs), Intermediates and Active Pharmaceutical Ingredients.

Aurobindos high dependency on the China market for import of raw material may lead to risk of import disruptions, short supplies, and production bottlenecks. Out of the total raw- material requirement (APIs plus Excipients) of Aurobindo India, about 55% of the material is procured from China and 7% is procured from other countries and the remaining 38% is procured from the domestic market. Price of raw materials and service cost also increased significantly during the year due to various other reasons like high fluctuation in oil prices and forex.

Mitigation strategy

The Company has already taken initiatives to mitigate the risk arising out of procuring materials from a single sourcing. Company is working to procure material from domestic sources, and it has already started qualifying Indian sources. The Government of India also has come forward with policies to encourage and support the domestic manufacturers to start manufacturing some of the raw materials domestically. It has come out with Production Linked Incentive schemes (PLI) for some of the Key Starting Materials (KSM) and raw materials.

SCM team managed the supply disruptions effectively by maintaining adequate stock and developing effective rolling plans considering production requirement. In case of price increase, company is striving to pass on the cost to the extent possible.


Economic and political instability arising from changes in foreign policies & political leadership in countries where Aurobindo has significant presence such as USA, Europe, and emerging markets (EM) could adversely affect the Companys operations in those markets. The regulatory landscape of the global pharmaceutical industry is complex and dynamic, which could be significantly influenced by the external macro environment such as the political, economic, social, and technological factors (PEST). Also, the recent inflation issue had lead to world wide market in to recession threat specially USA.

Aurobindo has business operations predominately in USA, Europe, and Growth Markets. The existing Growth Markets include South Africa, Brazil, Canada, and Africa. The Company has presence in the Anti-retroviral segment where it sells ARVs to over 125 countries by participating in global tenders floated by international organizations such as Global Fund, USAID/ PEPFAR and country-specific Ministry of Health (MOH). The Company has 25 manufacturing facilities across the globe (22 in India, 1 each in Brazil, Puerto Rico and Portugal) and 9 R&D facilities.

USA is the largest market for the company with around 45-50% of the revenue generated in FY23. Europe is the second largest market after USA accounting for approx. 20-25% of revenues in FY23 and remaining revenue from other markets.

Mitigation strategy

The business structure of the Company is such that it views every major business as a separate entity and is given utmost attention. Aurobindo is one of the largest vertically integrated pharmaceutical companies with 60% of API manufactured inhouse; the Companys strength lies in developing quality Active Pharmaceutical Ingredients (APIs) and Finished Dosage Forms (FDFs). These products are manufactured across facilities that have been inspected by various regulatory authorities such as the USFDA, UK MHRA, Japan PMDA, WHO, Health Canada, Europe EMA, Australia TGA, MCC South Africa, and ANVISA Brazil. These factors enable the Company to be cost efficient and compete in its addressable markets.

In some countries like Africa, the Middle East and Russian countries, PEST influence is high, which might lead to business risk to the Company. Government authorities are encouraging local manufacturers, restricting imports, and levying conditions to buy medicines only through government tenders. As part of its de-risking strategy, the Company is aggressively participating in Government tenders and appointing approved distributors.

Over the years, Aurobindo has been expanding its business presence through business and R&D acquisitions in the USA, Europe and China markets and focusing on other untapped and potential markets like Japan, Brazil, Africa, Canada, the Middle East, Poland, Czech Republic, the Netherlands, Spain, and Belgium. The Company continues to enhance its presence and focus on difficult to develop, niche oral, sterile, specialty injectable products, biosimilars, semi synthetic and peptide- based drugs.


Companys major revenue comes from US and Europe. The US generic market is one of the most dynamic markets in the world due to competition among generic drug makers. Risk of tough competition from other pharmaceutical companies in the generic drugs sector could impair the companys competitive advantages and lead to erosion of market share and revenues. Therefore, understanding the competition becomes imperative for the Company, especially during the drug development process.

Some of the Companys products face competition from other pharmaceutical companies products by way of introduction of new products which might lead to some loss of market share and derail the Companys competitive advantage to an extent. Competition in products in the generic drugs industry could lead to price erosion in the Companys products. The Company is facing high competition both from Indian manufacturers and global players having similar products which could impact retaining existing market share and increase of market share in the future.

Mitigation strategy

The Company has a qualified and talented R&D team which continues to identify, develop new, innovative processes and specialised products that allows the Company to capitalise on competitive market opportunities. To overcome the competition from other pharmaceutical companies, Aurobindo leverages its R&D capabilities and continues to adopt and implement the following innovative and systematic approaches:

• Analysing and understanding all potential markets and competitors in key therapeutic areas.

• Targeting the right customers in terms of pricing, sales volumes, and payment history.

• Market potential forecasting and gathering competitors pricing and product tracking.

• Expanding product portfolios through business acquisitions in key markets.

• Ensuring timely delivery and quality products to customers

• Producing products at competitive costs by developing new processes, upgrading existing processes.

• Timely launch of new products by talented R&D teams to build and increase market share.

• Enhancing manufacturing facilities with new products to ensure sufficient levels of production.


Aurobindo having major presence in global markets is subjected to price controls or some regulations on pricing. New pricing regulations can influence pricing pressures on products which can have an impact of the Companys revenues and profitability. The stringent measures to reduce drug prices for customers could have an adverse impact on Aurobindos businesses and profits. The price controls limit the financial benefits of growth in the life sciences market and the introduction of new products.

There is a risk of drug pricing pressures in global markets especially in the US market on account of government regulations to reduce drug prices for the benefit of the customers. This could have an adverse impact on the companys business and profit margins. The consolidation and integration of the drug wholesalers, retail drug chains, and other purchasing organisations may continue to adversely affect pharmaceutical manufacturers and such consolidations have resulted in increasing the product pricing pressures. Drug pricing is influenced by global trends in terms of availability and cost of imported raw material. Domestic pricing is influenced by global trends in both availability and price of imported active ingredients. The Company continues to face challenges within the industry successfully be it price cuts or increased price controls. The Companys net sales realisations could get affected due to discounts offered to customers for benchmarking and competing with the pricing of its competitors.

Mitigation strategy

The Company as part of its mitigation strategy continues to adopt appropriate negotiation tactics to market products to customers. It focuses on stable supplies and a diversified product portfolio. The Company is handling pricing pressures by launching value added products, Day-1 launches and focusing on other markets where there are less pricing pressures.

Being backward-integrated enables the Company to manufacture high quality and cost-effective products by redefining the production process and leveraging its R&D capabilities. The SCM team is continuously striving to strategically negotiate for the raw materials to minimise their price impact and ensure timely services to key customers in all key markets. The Company can deal with price pressures by increasing volumes, improving efficiencies, optimising costs, and strengthening the supply chain.


US market is the dominant market globally for the Company with around 45-50% of the revenue coming from the US. This poses a concentration and dependence risk on a single geography for the Company if it fails to maintain efficient operations in that market which could adversely affect the Companys business, operations, and financial condition. Europe is another major market for the Company where it is exposed to market risk if it is unable to maintain a sufficient portfolio of products and manage their development and bring the products to market promptly, which could ultimately affect the business and growth strategy.

Mitigation strategy

There are significant investments made in R&D by the Company over the years to build a portfolio of value-added and complex products such as biologics, dermatology, respiratory, peptides, and vaccines. A well-diversified product portfolio has enabled the Company to maintain steady growth in the US and Europe markets. The Company during the year has invested significant amount in the biosimilar clinical trials and the multiple vaccines development (Bacterial and Viral) is progressing well.

To mitigate the risk of customer concentration, the Company is continuously making focussed efforts to enhance its customer base through an effective marketing strategy. The Company continues to focus on customer service by improving OTIF (On time in Full).

To minimise the risk of country concentration, the Company continues to spread its business into Europe, Japan, and other emerging markets. Aurobindo also continues to widen geographical spread by entering large potential markets in Latin America and emerging markets. Also, the company continues to sustain its ANDA filings and get necessary approvals so that its product portfolio is wide enough to mitigate the concentration risk.


The pharmaceutical industry is constantly being challenged by critical compliance risks i.e., to comply with rigorous regulatory & legal requirements and compliance is evolving from an isolated departmental initiative to an enterprise level risk management challenge. This could render Aurobindos technology and products non-competitive or restrict the Companys ability to introduce new products thereby adversely impacting business. Non-compliance in any geography due to changing regulations can have a considerable impact on Aurobindos operations and its reputation.

Mitigation strategy

Aurobindo is committed to supplying the highest quality medicines to customers for promoting healthier lives. Hence, the Company strives to conform to regulatory and compliance standards to meet stringent requirements of regulators to ensure that our medicines provide best health care for the consumers. Robust quality systems & control measures are in place to ensure that the quality is ensured by process design.

Company has leveraged industry expertise by engaging an US-based consulting firm to establish, train and constantly monitor Quality Culture Excellence. An organization-wide training has been kickstarted and is currently ongoing at all levels. A powerful multi-dimensional monitoring tool to measure Quality Culture Maturity has been developed and shall be used to quantify and improve, where required, the progress of implementation of the Quality Culture Excellence initiative.

The Company has a robust Statutory compliance system/ solution" (Vision 360 Tool) for ensuring compliance with all applicable laws and updated on periodically. Quarterly compliance declarations generated electronically from the system are submitted to the compliance officer.

There is continuous monitoring by the QC/QA team to deliver the highest quality. The Company has a talent pool of over 1,600 scientists and analysts, who have proficiency and experience in handling complex chemistry and filing of applications with the regulatory authorities.


Aurobindo requires certain statutory and regulatory permits and approvals to operate the business, including environmental clearances. Any failure to obtain, renew or maintain the required permits or approvals may result in the interruption of operations and may have a material adverse effect on the Companys operations.

Government authorities have been focusing on environmental issues and making environmental laws stringent for the industry to follow. As the regulations are becoming tougher, it is a challenge for the Company to ensure adherence.

Mitigation strategy

The company is extremely sensitive about these challenges, and proactively strives to adhere to notifications and circulars issued by the Government. Over the years, EHS excellence has been promoted as an essential element of ensuring human health and safety and is embedded in our corporate policies.

Necessary EHS related statutory permits are in place for Aurobindos manufacturing facilities and applications for renewal of approvals are being submitted on time. Company is committed to provide a safe and healthy working environment to all its employees and contract workers. A hazard and operability study (HAZOP) is performed before a chemical process is taken up in the manufacturing area. Automation & Interlock systems to reduce Human intervention in critical operation, Potential health hazards assessment by process studies & workplace monitoring by implementation of Industrial Hygiene program, and regular Training is provided to operating personnel on precautions to be taken, and suitable personal protective equipment is provided.

The Company is investing significantly to upgrade and expand wastewater treatment projects in some facilities for an improved and additional treatment of wastewater. The solid and liquid hazardous wastes are being disposed to Treatment, Storage and Disposal (TSD) facilities or cement units for processing as alternate fuel that mitigate the risk of PiE or AMR effectively.

Aurobindo has leaped forward and adopted Sustainability / Environment Social Governance (ESG) framework with a commitment to build a healthier ecosystem. Aurobindo had released its first sustainability report in FY21 and Second sustainability report in FY22 which demonstrates our commitment to build a sustainable and inclusive organisation that creates long term value for stakeholders.

Carrying forward our commitment to limit our impact on climate change, Aurobindo Pharma has initiated a decarbonisation journey which is aligned with Science Based Targets Initiative (SBTi). As an outcome of various initiatives, our energy and Green House Gasses (GHG) emission intensity per unit of revenue has consistently declined over the years.

The energy efficiency projects include upgradation of the technology to minimise consumption, Energy optimisation initiatives in existing equipment operations and savings achieved through change in equipment operation. In addition to the energy efficiency initiatives, we strive to replace non-renewable energy in our operations. In FY23, we have generated more than 43,000 MWh electricity from our solar power plant situated near Pydibhimavaram, Vizag.

To address global warming concerns, we have taken up massive plantation drives in and around our manufacturing facilities to increase the green belt and offset emissions caused by our operations. Also, various energy saving measures have been implemented at each operating facility and these initiatives helped us save approximately 2,316,079 GJ of energy including direct and indirect energy consumption savings and resulted in avoiding greenhouse gas emissions of about 235,312 tCO2e. We also use biomass in some of our facilities which further helps us in reducing energy consumption from non-renewable fuels. In FY23, we generated 131,177 GJ of energy from biomass in our operations, which amounts to approximately 2% of our total energy consumption.


Aurobindos success depends on the Companys ability to obtain patents, protect trade secrets and other proprietary information, and operate without infringing on the intellectual property rights of other Pharma companies. Aurobindos inability to obtain timely ANDA approval, thus missing out on early launch opportunities and litigation outcomes could affect product launch dates affecting revenue.

Mitigation strategy

Aurobindo has a dedicated team of IP professionals whose primary task is to ensure that the products are manufactured using essentially non-infringing composition and processes to the best possible extent and in compliance with IP related requirements by reviewing and monitoring IPR issues continuously.

The IPR team evaluates and provides stage-wise IP clearances during product/process developmental activities. The IPR team also provides frequent updates and alerts on all relevant IP matters (such as patent, trademark, etc.) to R&D scientists for the products and suggests suitable measures to deal with IP-related issues. The IP team is also involved in product selection activity to ensure that right products are selected for development and no potential opportunity is missed out to the best possible extent.

As on 31 March 2023, the Company had filed 812 patent applications, of which 178 patents had been granted and 102 patent applications are pending for prosecution with various authorities globally. Company ensures that the employees, vendors, and suppliers associated directly or indirectly sign appropriate confidentiality agreements prior to disclosure of any such confidential information.


Since the Company operates internationally, majority of the export transactions and borrowings are carried out in multiple currencies and a portion of import transactions are carried out in more than one currency, business is exposed to foreign currency risk, interest rate risk, liquidity risk and credit risk which may adversely impact the fair value of its financial instruments.

The Companys foreign currency exchange exposure majorly arises from its exports, imports, and borrowings. Any weakening of the functional currency may adversely impact the Companys cost of imports and cost of borrowings; however, the export revenue may be favourably impacted and vice versa. The Company is exposed to Interest rate risk majorly arising from interest rate movements from borrowings with variable interest rates and interest rate exposure mainly related to debt obligations. Liquidity risk refers to the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities. Credit risk refers to the risk that a counterparty or customer will default on contractual obligations resulting in a loss to the Company. Credit risk encompasses both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks.

Mitigation strategy

The Companys primary focus is on foreseeing the unpredictability of financial markets and minimizing any adverse impact on its financial performance. The Management ensures an appropriate risk governance framework for the Company through appropriate policies and procedures and that risks are identified, measured, and managed in accordance with the Companys policies and risk objectives.

The Company evaluates exchange rate exposure arising from foreign currency transactions and carefully monitors the open exposure from the parity statement regularly since the foreign currency receivables and foreign currency obligations arising from imports & borrowings will provide a natural hedge to the Company. Company uses foreign exchange forward instruments primarily to hedge foreign exchange exposure. Further, as per policy, the Company does not enter into any complex forex derivatives, which are speculative in nature.

The Company monitors liquidity risk using cash flow forecasting models. The Companys objective is to provide financial resources to meet its obligations when they are due in a timely, cost effective and reliable manner without incurring unacceptable losses or risking damage to the Companys reputation. The Company has obtained fund and non-fund based working capital lines from various banks. Furthermore, the Company has access to undrawn lines of committed and uncommitted borrowing facilities and other debt instruments. Credit risk is controlled by analysing credit limits and creditworthiness of counter parties on a continuous basis with appropriate approval mechanisms for sanction of credit limits.


Aurobindos success depends largely upon an effective HR strategy that includes recruitment, learning & development, succession planning and retention of competent personnel.

The HR strategy is aligned to business plan and growth of the Company. It is a challenge for Aurobindo to maintain good industrial & employee relations. Labour unrest could impact the Companys operations. The industry is human capital intensive with a high rate of attrition, and this could have an impact on the Companys operations.

Mitigation strategy

The Company has a committed Human Resources team to acquire, retain and develop talent considering the competition for qualified and experienced people. Aurobindo follows a robust process for identifying talented and candidates who have proven track record. The entire process of Talent identification is named as Auro Utkarsh in Aurobindo. The Line Managers take a proactive role in engaging with the prospective candidate while being transparent about the role and its scope, thus developing a close rapport with the candidate, which in turn creates a mentor - mentee association once the resource joins in the Company.


Under this umbrella all out technical trainings are conducted for our employees to learn important aspects like personal hygiene requirements for manufacturing environments to regulatory requirements and how to operate the variety of highly technical machinery in bulk manufacturing and packaging facilities. In addition, they also learn how to operate machinery, the whys behind each phase of the manufacturing process, and how to determine good products from bad ones.

1. Leadership Development Program (Auro Astra): A

leadership development program is critical for Aurobindo, as it is an organization that values the growth and development of its employees. The program includes training, coaching, and mentorship on leadership theories, communication skills, decision-making strategies, and other essential competencies.

2. Middle Management Development Program (MDP):

Middle Managers are crucial for an organization because they act as a bridge between business strategy and execution. Middle management development is an essential aspect of leadership development in any organization.

3. Supervisory Development Program (SDP): A Supervisory Development Program is a structured training and development initiative designed to equip current and aspiring supervisors with the knowledge, skills, and tools they need to effectively lead and manage teams.


Aurobindo believes Succession planning is the process of identifying and developing employees who have the potential to fill key leadership positions within an organization.

• To ensures business continuity: By identifying and developing potential successors in advance like retirement, resignation, death etc.

• To build a talent pipeline that is capable of taking on increasingly complex roles and responsibilities.


To build a culture of appreciation in the organization and to bring out the best in what our employees do daily, we have designed a unique way of rewarding & recognizing our workforce. Every Quarter in each manufacturing unit, there is a score card based cross functional team reward & recognition practice. We have identified 8 categories of these rewards

i.e. Best Safety Practices, Best Document Practices, Best Investigation, Good Manufacturing Practices, Best Process, Best Project, Best KRA Achievement and Best Facility


After COVID disruptions, business continuity demands working remotely, which requires additional focus and hardening of the IT infra security and Cyber Security. The Company faces cyber security challenges in terms of data confidentiality, integrity, and availability as more collaboration technologies (Web conferencing, Video Conferencing, File sharing and collaboration, mobile computing, cloud computing etc.) for internal and external virtual meetings are adopted. Any vulnerability in information security and regulatory compliance management may have an impact on business continuity and may lead to legal consequences and penalties.

Mitigation strategy

Aurobindo is improving its process efficiency, better control, faster decision making and better assurance on compliance by embracing digitalisation across the processes. Company‘s IT infrastructure, data availability, data storage and processing and cyber security aspects are continuously scaled-up and upgraded to support the growing business need and to enable the Company to stay competitive in the market. Aurobindo continues to ensure compliance with applicable provisions of European Union General Data Protection Regulation (EU GDPR). To ensure GDPR compliances the Company has established policies & procedures which include training employees and investing in adequate technologies to safeguard personal data collected from EU data subjects. The Company has a tie-up with the Enterprise DPO (Data Protection Officer), who closely works with country specific DPO, IT, HR, Legal etc. for ensuring compliance.

The Company has taken steps to harden its IT infra security with systematic backup procedure, storage, Firewall rules, Network segmentation and system access including role-based and remote access through VPN and change management controls. For all critical IT applications and services, the Company has built highly stringent and secured infrastructure. For business continuity, the Company continues to maintain a disaster recovery site, which hosts backup ERP applications.

IT team conducts a periodic review of cyber security posture and penetration tests to ensure effectiveness. In addition, the following control measures are taken to mitigate cyber security risk.

Z-Scaler ZIAs Zero Trust Solution which is the most widely used security service edge (SSE) platform in the world is being installed. The most widely used ZTNA platform in the world is ZPA, uses the principles of least privilege to provide users secure, direct connectivity to private apps that are running on-prem or in the public cloud while preventing unauthorized access and lateral movement.

• Periodic meeting with senior leadership on the emerging risks / cyber threats and our postures for the same.

• Continuous training and awareness for users throughout the year to make them aware of new cyber vulnerabilities and educate them about the right response.

• Hardening of IT infra security by implementing technology solutions related to remote access, internal and external threat protection.

• Regularly reviewing access levels and tracking them appropriately.

• Monitoring logs related to IT infrastructure i.e., Firewall, VPN firewall, Mail gateway, AD server, Proxy server, AV Server, Email Server, ERP Server and taking appropriate action on incidences, if any.

• Engaging with the business and OEMS for the upgrade of Infrastructure and application services in a timely manner to minimise the risk of any potential vulnerability and cyber risks.