Bharat Parenterals Ltd Management Discussions.

1. Economic Overview and Indian Pharmaceutical market:

One year into the COVID-19 pandemic, economic recoveries continue to diverge across countries and sectors, reflecting variation in pandemic-induced disruptions and the extent of policy support. According to the Indian Economic Survey 2022, the domestic pharmaceutical market is expected to grow three times in the next decade to US$ 42 billion in 2022 and US$ 65 billion by 2024 and may reach ~US$ 120-130 billion by 2030.

The Indian pharma market (IPM) grew at 4.3% over the April 2021 - March 2022 period, with a turnover of 1,56,797 Crore. The growth was primarily driven by price, which contributed 4.3% to the total, followed by new products at 3.6% and volume at -3.6%. Multinational companies hold about 20% share in the market and have grown at 2.6%.

IPM grew faster in March 2022 due to the base effect of lockdown beginning March 25, 2021. IPM growth declined to 4.3% in 2022 as compared to 10.5% growth last year.

2. Industry Structure and Development:

With more than 500 formulations to choose, a strong formulation development base and coveted WHO-cGMP certificate to its credit, Bharat Parenterals Limited has already made an export presence across the globe. The large scale modern production facility at Haripura, Savli is WHO-cGMP certified and abides by its stringent norms. Its processes are ISO 9001:2000 certified as well over years, Bharat Parenterals Limited has sharpened its production expertise, built modern production lines and consolidated manufacturing processes, which conform to international standards.

3. Opportunities and Threats:

The Indian pharmaceutical environment is evolving rapidly with government involvement which may impact the development of the Indian Pharmaceutical Market. Factors like government mandated price controls, patent scenario, weakening of rupee, stringent quality standards, etc. are some of the major issues that need consideration in the current scenario. Bharat Parenterals Limited will be able to place itself in a strong position by expanding strategically, increasing its manufacturing capacities and enhancing capacities across the organization. With the state of the art and regulatory compliant manufacturing facilities Bharat Parenterals Limited is geared up to encase the business opportunities available.

4. Risk and Concerns:

Dynamic business environment of modern times throws several challenges from time to time. Threats include: • Growing competition both from domestic and global players •Preference of some customers towards MNC suppliers over Indian suppliers • High dependence on imported raw material.

• Volatility in raw and packing material prices and fluctuations in Foreign Exchange • Rising cost of utilities. • Cyclic demand changes in some market sectors. Your company focuses on continual expansion of its products and customer base, while systematically strengthening its quality, innovation and cost competence in order to mitigate the potential impact of some of the above threats.

5. Segment-Wise Performance

a) The Company is only in one line of business- Pharmaceuticals.

b) The Segment Revenue in the Geographical Segment considered for disclosures are as follow:

- Revenue with India includes sales to customers located within India -15324.07 (Rs. In Lakhs)

- Revenue outside India includes sales to customers located outside India – 5839.45 (Rs. In Lakhs)

6. Outlook:

The Company is focusing on its core business of manufacturing and marketing of formulations. Research and development has been put on fast track for cost competitiveness and to comply with the regulatory market. Cost rationalization and management control at all levels are practiced to ensure operational efficiency in the sphere of manufacturing and marketing. Armed with strong resources base and a vision to be a leading manufacturer of formulations, the company is poised to unleash its true potentials to meet the challenges and exploit growth opportunities ahead.

World economic overview:

The year 2021 posed significant challenges for economies across the globe with lockdowns posing a threat of deep recession. However, sizeable, swift and unprecedented fiscal, monetary and regulatory responses by most Governments helped to maintain disposable income for households, protect cash flow for firms, and support credit provision. The global contraction for 2021 is estimated at 3.5%, led by Chinas quick recovery and better than expected GDP out turns in large advanced economies. New large economies have raised hope sofa turn around in 2022 with growth expectations of 5.5%followed by 4.2% in 2022. Across countries, recovery levels may vary significantly depending on access to medical interventions, effectiveness of policy support, exposure to cross-country spill overs, and structure

7. Internal Control System and their adequacy:

The Company has in place adequate internal control mechanism to ensure proper and stringent compliance of all policies, procedures and statutes, applicable to the company, nationally as well internationally. The company undergoes periodical review and a report thereon is provided to the management for taking further actions.

8. Human Resource:

Your company knows and believes that the success in establishment of Bharat Parenterals Limited as an international player with core strengths of R&D and Quality has been achieved due to the hard work and commitment of the human resource. A happy organization is made by happy human resource and thus, the company ensures continuous development, work-life balance and high morale of its employees at all times. Recognizing that people are important part of the organization, a major exercise in development and training of employees is undertaken at all levels of the company. The industrial relations in all the units of the Company during the financial year 2021-22 were peaceful and harmonious. Experienced and motivated employees have been the backbone of the Company. There were 286 peoples employed in the Company as on 31.03.2022. Your Company puts special emphasis on team building and positive work culture. We train employees to understand and absorb the latest technological trends which in turn, prepare them to achieve higher efficiency levels in production, quality besides leading to higher customer satisfaction. There is a systematic identification of training needs. Training and development inputs are provided to all employees – in the areas of skill development and behavioral improvement so that individual development keeps pace with organizational development.

9. Formulation and Developments:

Company always considering Formulation and Development as crucial for sustain growth of the Company. Company always try to introduce newer and newer drugs delivery system for ensuring products available as regard to time and enhancing therapeutic value. To achieve this objective we have experienced and qualified pharmacists whose activity is to maintain and find out newer and newer delivery system as well as re-engineering innovative process. This will held the Company to maintain material consumption ration.

10. Financial performance with respect to operational performance:

A detailed financial overview is given in the Board?s Report of the Company.

11. Cautionary Statement:

Certain statement made in this report, are forward looking statements and actual results may differ from such expectations or projections about the future, as several factors would make significant difference to the Company?s operations such as economic conditions affecting demand and supply, government?s regulations, level of competitions prevailing at the relevant time, etc. The Company assumes no responsibility publicly to amend, modify or revise any such statements on the basis of subsequent developments, information or events.


Date: 29/08/2022 Sd/-
Place: Vadodara Mr. Bharat Desai