GLOBAL ECONOMY
The global economy is emerging from the tumultuous past few years with a resurgence of economic stability and growth. The overall global growth projection stands at a steady 2.6% for both - CY 2024 & CY 2025, with developing economies poised to flourish at an average of 4% over the same period. This resilience is particularly evident in the United States and key emerging markets, which are driving the recovery, bolstered by ongoing fiscal support in China. The growth story is especially compelling in the developing world, with their GDP growth expected accelerate to 5% in CY 2024, up from 3.8% in CY 2023. The South Asian region, while experiencing a slight slowdown from its recent high growth rates, remains a bright spot, with projected GDP growth of 6.2% in CY 2024.
A significant driver of this economic resurgence is the cooling of global inflation pressures. The stringent monetary policies implemented by central banksacross the world have been effective, with headline inflation expected to decline from 6.8% in CY 2023 to 5.9% in CY 2024 and further to 4.5% by CY 2025. As inflation eases and supply chains diversify, the global economy is poised to unlock new opportunities.
While the global outlook remains cautiously optimistic, the path ahead is not without its challenges like geopolitical tensions, trade fragmentation, and the lingering effects of climate-related disasters. However, the demonstrated resilience of nations and the adaptability of multinational corporations suggest that these obstacles can be overcome.
Source: Global Economic Prospects, Economic Times, World Economic Outlook
INDIAN ECONOMY
As per Reserve Bank of India (RBI), India is on the verge of a significant structural shift in economic growth, with inflation expected to stay within the RBIs target range of 4% (+/- 2%) for FY 2023-24 due to effective monetary policies and supply-side measures. India witnessed a robust growth and is estimated to have grown at 8.2% in FY 2023-24 as per the Ministry of Statistics and Program Implementation, Government of India, with an average of 8.3% over the past three years from FY 2021 -22 to FY 2023-24. This growth encompasses manufacturing, services, and exports, diversifying the countrys economic strength and resilience. Robust export performance, projected at ? 64,72,851 crores for FY 2023-24 as per Ministry of Commerce & Industry, and reduced imports are leading to a healthier trade balance and a declining fiscal deficit, with the government committed to fiscal consolidation.
Government initiatives focus on rejuvenating the financial sector, improving business conditions and enhancing infrastructure to boost connectivity, manufacturing competitiveness, healthcare, and pharmaceutical R&D. In the Union Budget for FY 2024-25, the Government has allocated ? 90,958.63 crores to the health sector for FY 2024-25, a substantial increase from ? 6,400 crores allocated in the Union Budget of FY 2019-20, highlighting the importance placed on the sectors growth and development. Moreover, schemes like the Promotion of Research and Innovation in Pharma MedTech (PRIP) Sector are focused on encouraging the industry to invest in R&D in priority areas and foster a culture of quality research. These ongoing reforms aim to create a favorable business environment, improve quality of life, and strengthen governance.
India aims to become a USD 5 Tn economy in three years and USD 7 Tn by 2030, driven by domestic demand, private consumption, investments, and reforms. Favorable monsoons will support agriculture, but challenges like geopolitical tensions and supply chain disruptions persist. To sustain growth, India must enhance export competitiveness, ensure stable inflation, stimulate private investment, strengthen manufacturing, improve wages, and manage debt effectively.
Source: Economic Times, Business Standard, Times of India, Hindustan Times, Live Mint
GLOBAL PHARMACEUTICAL MARKET
The global pharmaceutical industry is a vital component of the healthcare sector, projected to reach a market size of approximately USD 1,454 Bn by CY 2029, with a CAGR of 4.71 %from CY 2024 to CY 2029. This growth is driven by several factors, including an aging population, rising prevalence of chronic diseases, and significant advancements in biotechnology and personalized medicine. The pharmaceuticals market has been growing steadily in recent years, primarily fueled by innovative drugs and an increasing demand for drugs and treatments worldwide.
This dynamic market landscape underscores the critical importance of sustained research and development (R&D) efforts, which form the core of pharmaceutical innovation and the long-term growth of the industry. In CY 2021, global R&D spending reached approximately USD 200 Bn, underscoring the industrys commitment to innovation. The focus on R&D is particularly strong in oncology, where the demand for novel therapies is increasing due to rising cancer rates. The industrys commitment to innovation has been reinforced by the integration of advanced technologies such as artificial intelligence and machine learning, which enhance drug discovery and streamline clinical trials. As companies navigate challenges such as regulatory scrutiny and competition from generics, maintaining robust R&D investment will be crucial for sustaining growth and addressing the evolving health care needs of the global population.
INDIAN PHARMACEUTICAL MARKET
Indian pharmaceutical industry holds a significant global position, ranking 3rd by production volume and 14th by value. With a strong domestic sector, the country supports approximately 3,000 drug companies and around 10,500 manufacturing units located in India. The sector contributed about 1.72% to the nations GDP as of March 2024. The market size of Indias pharmaceutical industry is expected to grow to USD 55 Bn by CY 2024, around USD 130 Bn by CY 2030, and approximately USD 450 Bn by CY 2047.
Indian Pharmaceutical Market
P - Projection
India is recognized as the largest provider of generic medicines globally, accounting for 20% of the global supply by volume. Additionally, it is the largest vaccine producer, contributing over 50% of global vaccine production and meeting up to 70% of WHOs demand for DPT, BCG and Measles vaccines. India has the highest number of US-FDA-compliant pharma plants outside the US. The industry exports to over 200 countries, with major markets being the US, UK, Europe and Africa.
Indias drug and pharmaceutical exports totalled USD 22.51 Bn from April 2023 to January 2024, accounting for roughly 20% of global generic drug exports. In CY 2023, the Indian medical devices sector was valued at USD 11 Bn, holding a 1.5% share of the global market. The government has set an ambitious target to boost the medical devices industry in India to USD 50 Bn by CY 2030.
Source: Pharmaceuticals, March 2024, IBEF
R&D Spending in the Indian Pharmaceutical Industry
The biotechnology and pharmaceutical sectors in India have shown remarkable resilience and innovation, particularly in response to the pandemic. The industry has made significant advancements in vaccinetechnology,treatmentmethods,and R&D processes. Modern technologies are increasingly being used to enhance pharmaceutical manufacturing, scientific procedures, and the discovery of new treatment approaches.
To foster innovation, the Indian Government has launched several initiatives, including the establishment of centers of excellence for pharmaceutical R&D. These centers aim to encourage private sector investment in priority areas. Additionally, the Government plans to set up 157 nursing colleges alongside government medical colleges to enhance healthcare education and workforce. The Government has also initiated the Production Linked Incentive (PLI) Scheme, which aims to boost domestic manufacturing of critical starting materials and active pharmaceutical ingredients (APIs). This scheme has already resulted in a significant increase in foreign direct investment (FDI) inflows and a reduction in imports of raw materials. Advancements in Technology
Modern technologies such as Artificial Intelligence (Al), Machine Learning (ML), and Big Data analytics are increasingly being utilized to enhance drug discovery, development, and manufacturing processes. These technologies are improving efficiency, reducing costs, and accelerating the time-to-market for new drugs.
The pandemic has also accelerated the digitization of the pharmaceutical industry, leading to innovations in clinical trials and patient-centric drug development approaches. This shift towards decentralized clinical trials and digital methods has allowed for more efficient and effective research processes.
Educational and Research Collaborations
The number of medical colleges in India has increased significantly, from 412 in FY 2015-15 to 757 as of February 2024. This expansion is critical for training a skilled workforce to support the growing pharmaceutical and biotechnology sectors. Furthermore, selected Indian Council of Medical Research (ICMR) labs are being upgraded to facilitate research collaborations between public and private medical college faculty and private sector R&D teams, enhancing the overall research landscape in the country.
Source: Pharmaceuticals, March 2024, IBEF; Healthcare, March 2024, IBEF
INDIAN BIOTECHNOLOGY MARKET
India is one of the top 12 biotechnology destinations globally and ranks third in the Asia-Pacific region. The country represents 3-5% of theglobalbiotechnologysectorasofMarch2024. Indiasbioeconomy has surged from USD 8 Bn in FY 2013-14 to USD 100 Bn in FY 2022- 23, and it is expected to reach USD 130 Bn by FY 2024-25 and USD 300 Bn by FY 2029-30. With 555 FDA-approved plants outside the US, India leads the world in this regard. The country also accounts for 44% of globally abbreviated new drug applications (ANDAs) and has more than 1,400 manufacturing plants that comply with WHO standards. As of CY 2020, biopharmaceuticals accounted for 52% of Indiasbioeconomy,followedbybio-agricultureatl 6%,bio-servicesat 1 5%, and bio-industrial at 7%. The industrys impressive performance is further highlighted by its workforce of 1 Mn individuals, over 5,000 biotech companies, and the annual graduation of more than 15,500 biotech professionals during FY 2022-23.
Indian Biotechnology Industry
INDIAN CHEMICALS MARKET
The Indian chemicals industry is a pivotal contributor to the nations economic growth, with its market size projected to expand from over USD 254.30 Bn in FY 2022-23 to USD 383 Bn by FY 2029-30, reflecting a CAGR of 8.1 %. This significant growth is driven by increasing domestic consumption and the rising demand from key end-use industries such as packaging, automotive, and construction. As of July 2024, India was ranked as the sixth-largest producer of chemicals globally and the third-largest in Asia, contributing around 7% to the countrys GDP. As companies around the world seek to de-risk their operations by diversifying away from China, India has emerged as a viable and attractive alternative. This shift presents the Indian chemical sector with an unprecedented opportunity for exponential growth, positioning it as a critical player on the global stage.
Government initiatives have played a crucial role in shaping the industrys future. The introduction of Production-Linked Incentive (PLI) schemes, particularly those focused on promoting Bulk Drug Parks, underscores the Governments commitment to fostering a thriving chemicals sector. These initiatives are designed not only to boost domestic production but also to reduce dependency on imports, enhancing Indias self-reliance in essential chemical products. Moreover, the establishment of Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIRs) has been a game- changer, attracting substantial investments and creating employment opportunities on a large scale. These regions are strategically designed to integrate the entire value chain, from production to distribution, thereby maximizing efficiency and reducing costs.
The steady inflow of Foreign Direct Investment (FDI) into the sector reflects investor confidence in its long-term potential. As the industry continues to attract substantial investments, it is poised for further expansion, driving innovation and enhancing Indias position in the global chemical supply chain.
Indian Chemicals Market (USD Bn)
Source: Chemical Industry India, IBEF
INDIAN AGROCHEMICALS MARKET
In India, agriculture is the main source of livelihood for about 55% of the population and contributed 18.3%to thenations GDPfor FY2022- 23. The Indian agricultural sector is projected to expand between USD 30-35 Bn by FY 2024-25, according to Bain & Co. Agricultural exports are expected to match the previous years level of USD 53 Bn in FY 2023-24. The Government aims to establish India as a global leader in ‘Shree Anna (millets), with the Institute of Millet Research in Hyderabad designated as a Center of Excellence for advancing best practices, research, and technologies on an international scale.
Indias Horticulture Production
* From April to December 2023
Source: Agriculture and Allied Industries, March 2024, IBEF
On a global scale, India ranks as the fourth-largest producer of agrochemicals, following the United States, Japan, and China. It is also the fourth-largest net exporter of agrochemicals and the thirteenth-largest exporter of pesticides and disinfectants. From April 2023 to December 2023, agrochemical exports from India totalled USD 3.12 Bn, while imports were USD 1.11 Bn. This export growth is driven by factors such as low-cost production, a skilled workforce, seasonal domestic demand, overcapacity, competitive pricing, and a strong presence in generic pesticide manufacturing. The agrochemical market in India, currently valued at USD 5.5 Bn, is expanding at a CAGR of 8.3% and is expected to account for nearly 40% of the countrys total chemical exports by CY 2040. The market is also anticipated to clock in an 8.5% CAGR, reaching USD 7.4 Bn between CY 2021 and CY 2026.
Source: Agriculture and Allied Industries, March 2024, IBEF; Chemicals, March 2024, IBEF
GLOBAL LABORATORY EQUIPMENT MARKET
The global laboratory equipment market, with a market size of USD 15.72 Bn in CY 2023, is forecasted to grow to USD 39.64 Bn by CY 2032, buoyed by a robust CAGR of 10.83%. This growth is primarily propelled by expanding volumes of life science research and clinical testing, which require increased adoption of disposable lab products and essential equipment. Enhanced safety standards and advanced medical research facilities are significant factors contributing to this upward trajectory. Government initiatives supporting research infrastructure and regulatory frameworks are further catalyzing market expansion. Additionally, escalating research activities in
pharmaceuticals, biotechnology, and agrochemicals, bolstered by advancements in automation, artificial intelligence, and sustainability initiatives, are driving further market growth. The healthcare sector, which heavily relies on precise diagnostics and therapeutic advancements amid rising incidences of chronic diseases, holds a substantial market share.
While North America leads with robust healthcare infrastructure and substantial research investments, the Asia-Pacific region is rapidly adopting advanced technologies and increasing healthcare expenditures. Despite the positive outlook, the market faces challenges such as high costs for advanced equipment hindering smaller labs, and a shift to simpler diagnostics is likely to reduce demand. However, ongoing technological innovations are expected to mitigate these challenges, ensuring sustained market expansion in the foreseeable future.
Lab Equipment Market Size CY 2022-32
Source: Precedence Research
Technological advancements like automated systems and cloud- based LIMS are poised to drive the laboratory equipment market. Organizations across sectors are increasingly allocating resources for innovation and discovery. This trend is fueling the need for cutting-edge tools that support complex scientific research and experimentation. This heightened demand not only supports market growth but also facilitates continuous advancements in various fields, including healthcare, pharmaceuticals, biotechnology, and academic research, promising significant growth in laboratory operations.
Source: Grandview Research
INDIAN LABORATORY EQUIPMENT MARKET
Indias laboratory equipment market, encompassing products such as incubators, centrifuges, spectrometers, microscopes, sonicators, and autoclaves, is projected to achieve a robust CAGR of 11.1 % from CY 2022 to CY 2027. This growth is fueled by critical factors including enhanced diagnostic accuracy, reduced downtime, adherence to strict quality standards, and cost efficiency imperatives. The market is further buoyed by healthcare demands, advancements in technology, a growing pharmaceutical industry, and supportive governmental policies fostering innovation and infrastructure development.
Additionally, the growth is bolstered by initiatives such as the Production-Linked Incentive (PLI) Scheme, which aims to boost local manufacturing capabilities for pharmaceutical ingredients and stimulate demand for advanced laboratory equipment across the nations supply chain. These efforts help build a conducive environment for market growth by attracting investments and fostering innovation in the sector. Moreover, the emphasis on
personalized medicine is driving the need for specialized laboratory solutions tailored to specific patient needs. Indias robust pool of science and engineering graduates further enhances the market by providing a skilled workforce for research and innovation in laboratory technologies.
Looking forward, the Indian laboratory equipment market is positioned for continued growth, with projections to achieve a market size of ? 1,84,181 crores by CY 2027. This advancement is likely to be driven by ongoing technological innovations such as Artificial Intelligence (Al), Internet of Things (loT), and automation. These technologies are reshaping laboratory operations, optimizing workflows, and improving overall productivity across the laboratory ecosystem. Indiascommitmentto innovation, coupled with favorable government policies and a skilled workforce, positions the country as a key player in global laboratory equipment manufacturing and pharmaceutical research.
Source: Market Research Future, Pharmabiz
GLOBAL LABORATORY CONSUMABLES MARKET
The global laboratory consumables market is experiencing robust growth, projected to expand from approximately USD 191.2 Bn in 2022 to over USD 301.2 Bn by 2031, with a CAGR of 5.1 %. This market covers a diverse range of essential products, including laboratory glassware, plasticware, reagents, pipettes, tubes, plates, filters, and other disposable items necessary for conducting experiments and analyses in fields such as biotechnology, pharmaceuticals, and clinical diagnostics. Key drivers of this growth include increased investment in research and development, particularly in the pharmaceutical and biotechnology sectors, as well as the expansion of healthcare infrastructure in emerging economies. The COVID-19 pandemic has further accelerated demand for specific consumables, highlighting their critical role in diagnostics and research. Additionally, the trend of outsourcing laboratory services to contract research organizations (CROs) is increasing the need for various consumables, as these organizations support extensive testing and analysis.
Regionally, North America is expected to maintain its dominance in the market, driven by its advanced healthcare system and a high volume of clinical laboratories. Meanwhile, the Asia-Pacific region is emerging as a significant growth area, fueled by rising healthcare investments and increasing disposable incomes in countries like China and India. Overall, the laboratory consumables market is set for continued expansion, driven by ongoing advancements in technology, increasing research activities, and a growing emphasis on improving healthcare outcomes.
Sources: Gil Global Information, Transparency Market Research
INDIAN LABORATORY CONSUMABLES MARKET
While the Indian market forms a relatively small portion of the global market, it is a fast-growing market and is poised to mirror the global growth driven by rising investments in research and development, particularly in the pharmaceutical and biotechnology sectors, as well as advancements in technology and an expanding healthcare infrastructure. Key segments of the market include plasticware, glassware, and reagents, with plastic consumables gaining popularity due to their cost-effectiveness and practicality. However, the increasing use of plasticware poses significant disposal challenges, contributing to environmental concerns. This has led to a renewed focus on reusable glassware products in laboratories, which offer a more sustainable alternative despite their higher initial costs. As India aims to capture 5% of the global market by CY 2025, the overall landscape is dynamic, marked by advancements in healthcare and research, alongside challenges related to budget limitations and the need for quality standards.
Furthermore, the Indian laboratory consumables market is set to undergo significant changes with the introduction of new quality standards for lab glassware, effective from Is* July, 2024, as mandated by the Bureau of Indian Standards (BIS). This initiative aims to enhance the safety, reliability, and performance of laboratory glassware, addressing existing quality concerns and fostering a competitive environment for manufacturers. While compliance may lead to higher production costs initially, it is expected to boost consumer confidence and the demand for compliant products, ultimately improving the integrity of laboratory operations. Additionally, this may create opportunities for growth in testing and certification services, as well as in the development of innovative lab consumables that meet the new standards.
Source: Frost & Sullivan, Mint
GLOBAL PHARMACEUTICAL PRIMARY PACKAGING MARKET
The pharmaceutical glass vials and ampoules market is expected to expand from USD 14.82 Bn in CY 2024 to USD 20.73 Bn by CY 2029, at a CAGR of 6.94%. This growth is primarily driven by the rising demand for safe and reliable packaging solutions for injectable drugs and biologies. As the pharmaceutical landscape shifts toward more complex therapies, including monoclonal antibodies and gene therapies, the need for specialized packaging that ensures drug integrity and stability has become paramount.
Glass vials are preferred for their excellent container-closure integrity, chemical resistance, and ability to maintain sterility. However, challenges such as breakage and delamination have prompted manufacturers to innovate with new materials and coatings. Additionally, the market for glass ampoules is expanding, valued at approximately USD 2.5 Bn in CY 2022, with a projected CAGR of around 7%. The increasing prevalence of chronic diseases and the demand for sensitive medications are further driving this trend. Moreover, the focus on sustainable packaging solutions is enhancing the appeal of glass, given its recyclability and lower environmental impact compared to plastics. Overall, the market is set for robust growth, driven by advancements in packaging technology and a commitment to quality and safety. Source: Mordar Intelligence, Fairfield Market Research
INDIAN PHARMACEUTICAL PRIMARY PACKAGING MARKET
The Indian pharmaceutical glass vials and ampoules market is experiencing exponential growth. As a leading global provider of pharmaceutical products, India is well-positioned to capitalize on the rising demand for injectable medications and the growing emphasis on sustainable packaging solutions.
The surge in vaccine production, particularly in response to the COVID-19 pandemic, has further amplified the demand for glass vials and ampoules. India has emerged as one of the leading providers of these essential components, capitalizing on its robust pharmaceutical industry and extensive manufacturing capabilities. Overall, the Indian market is well-positioned for growth, driven by innovation, regulatory support, and a focus on sustainability in pharmaceutical packaging. Furthermore, the increasing prevalence of chronic diseases and the rise in health care spending have further propelled the demand for glass vials and ampoules, which are essential for storing and delivering injectable medications.
The market is characterized by a growing preference for glass packaging due to its chemical stability, durability, and ability to protect contents from contamination. The increasing trend of contract packaging and innovations in pharmaceutical packaging
are also expected to drive further growth in this sector.
Source: Mordar Intelligence
GLOBAL PROCESS CHEMISTRY EQUIPMENT MARKET
The global process glass equipment market is experiencing significant growth, driven by the expanding pharmaceutical and specialty chemicals industries. This market is characterized by a diverse range of products, including glass-lined reactors, heat exchangers, and custom engineering systems. The increasing demand for high-quality, reliable process glass equipment is fueled by the need for advanced manufacturing processes, particularly in the production of pharmaceuticals and specialty chemicals, where precision and safety are paramount.
Key growth drivers for the global market include the post-pandemic recovery of supply chains, increased capital expenditures in the chemical and pharmaceutical sectors, and a growing emphasis on energy efficiency and sustainability. Innovations in reactor designs, such as jacketed and multipurpose units, are enhancing operational efficiency and enabling manufacturers to meet stringent regulatory standards. Additionally, the market is witnessing notable mergers & acquisitions, which have reshaped competitive dynamics and expanded product offerings. The global process glass equipment market is also benefiting from a shift towards quality and technical expertise over price, as companies seek to differentiate themselves through superior product performance and customer service. As a result, regions like Europe, which holds the largest market share, and the rapidly growing markets in Asia-Pacific, particularly India and China, are expected to drive future growth in this sector.
Source: Frost and Sullivan
INDIAN PROCESS CHEMISTRY EQUIPMENT MARKET
The Indian industrial process glass equipment market, particularly in the reactor segment, is set for robust growth driven by strategic investments and government initiatives. This growth is primarily fueled by the increasing demand from the pharmaceutical and specialty chemicals sectors, which are expanding their production capabilities. Glass-lined reactors, known for their high corrosion resistance and temperature control, are essential in these industries. The ability to scale up production through innovative reactor designs, such as jacketed and multipurpose units, is critical for manufacturers aiming to meet the diverse needs of their clients. Additionally, the Indian market benefits from having the largest number of manufacturing sites approved by the US FDA outside the US, enhancing its reputation for quality and reliability.
Key drivers of growth in the Indian process glass equipment market include increased capital investments by specialty chemical companies, which are focusing on organic growth and strategic mergers and acquisitions. The implementation of the Production Linked Incentive (PLI) scheme is expected to further bolster domestic manufacturing, particularly in agrochemicals. Moreover, the industry is witnessing a rise in research and development expenditures, with a focus on new drug launches and innovative chemical processes. The post-pandemic recovery has strengthened supply chains and increased capital expenditures in the pharmaceutical and chemical sectors, creating a favorable environment for the adoption of advanced reactor technologies. The emphasis on energy efficiency and sustainability is also driving innovations in reactor design, such as improved furnacetechnologies and oxy-fuel combustion systems, which enhance operational efficiency while reducing emissions. This positions the Indian process glass equipment market for long-term success, with substantial opportunities for growth across various end-use industries.
Source: Frost and Sullivan
OPPORTUNITIES AND THREATS
Opportunities
1. Expansion of Multinational Pharmaceutical Operations in India: Indias cost-effective manufacturing base presents a prime opportunity for global pharmaceutical companies. With lower production costs compared to Western countries, multinational firms are increasingly investing in Indian operations. This shift highlights a promising avenue for growth and market expansion.
2. Growth in Generic Pharmaceuticals Due to Patent Expiry:
The expiration of patents for blockbuster drugs during CY 2012- CY 2016, known as the ‘patent cliff, has offered a significant growth opportunity in the generic pharmaceutical sector. As these patents expired, the market for generic drugs is expanding rapidly, driving robust double-digit growth and increasing opportunities for companies in this segment.
3. Increasing Demand for Vaccine Exports: The rising demand for vaccines from global organizations such as UNICEF and WHO offers a valuable opportunity for vaccine producers. As exports to developing regions in Africa, Southeast Asia, and Latin America continue to grow, vaccine manufacturers can capitalize on this expanding market to drive future growth and enhance their global presence.
4. Government Initiatives: Initiatives by the Indian Government to improve health care infrastructure and facilities are creating opportunities for the sector. Investments in health care, pharmaceutical and research institutions are expected to spur demand for sophisticated laboratory consumables, instruments and tools.
5. PLI Scheme: The PLI scheme significantly boosts Indias domestic manufacturing of APIs and medical devices. With a total financial outlay of f 6,940 crores for 41 bulk drugs and ? 3,420 crores for medical devices, investments of ? 3,651 crores and ? 875 crores have already been grounded, respectively, enhancing local production capabilities and reducing import dependence. This initiative encourages significant investments in local production, fostering growth in the laboratory equipment, consumables, pharmaceutical packaging, and process sciences market, and creating opportunities for manufacturers to meet rising domestic and export demand.
Source: Ministry of Chemicals and Fertilizers
6. China+1 Strategy: The China+1 Strategy encourages companies to diversify supply chains beyond China, positioning India as an attractive manufacturing hub. This shift aligns with Indias growing prominence as an API (Active Pharmaceutical Ingredients) hub, where the country is already witnessing significant expansion. As the pharmaceutical infrastructure improves, manufacturers in the value chain of the industry stand to further benefit from the increased demand for their products.
7. Technological Advancements: Rapid advancements in
technology, including automation, robotics, and data analytics in laboratory equipment, present opportunities for manufacturers to innovate and offer more efficient and precise solutions. Technological advancements are driving increased productivity and precision in laboratory operations, leading to a growing demand in the lab consumables and primary pharmaceutical packaging markets. These innovations also bolster the need for advanced lab equipment and process sciences solutions, fueling expansion in these verticals.
8. Rising Research and Development Activities: The rising emphasis on research and development in pharmaceuticals, biotechnology, and environmental sciences is significantly boosting the demand for specialized lab consumables, primary pharmaceutical packaging, and advanced laboratory equipment. This trend also fuels the growth of the process sciences market as industries increasingly seek innovative solutions and adhere to stringent global standards.
Source: Frost and Sullivan Threats
1. Fragmented Market Dynamics: The Indian market is highly fragmented, characterized by a plethora of small local players offering mid- to low-segment products. This fragmentation creates a competitive environment for budget-conscious consumers.
2. Regulatory Challenges: Compliance with stringent regulatory standards and quality requirements is crucial in the laboratory equipment consumables and pharma primary packaging market. Changes in regulations or delays in obtaining certifications can impact product launches and market penetration.
3. Economic Uncertainty: Economic fluctuations and
uncertainties can affect overall pharmaceutical spending, including investments in laboratory instruments and consumables. Economic downturns may lead to budget constraints for pharmaceutical facilities, thereby affecting the demand.
4. HighEntryBarriers:Theglass-lined industrialsegmentdivision faces high entry barriers due to its technical complexity and the dominance of established players with extensive experience. New entrants must contend with significant challenges in overcoming the technical intricacies and competitive advantages held by tenured industry leaders, making it a challenging market to penetrate.
5. Increasing Quality Control Checks by the US FDA: The
increasing scrutiny and quality control checks by the US FDA present an immediate threat to the pharmaceutical industry, particularly impacting generic drug-makers. When the FDA flags non-compliant packaging issues, it results in significant delays as further orders are put on hold until the issues are resolved. This disruption directly affects the demand for packaging products and can have mixed medium- to long-term implications for the industry.
Source: Market Research Future, Pharmabiz, Frost and Sullivan
COMPANY OVERVIEW
Borosil Scientific Limited (‘Borosil, ‘We, or ‘The Company) is renowned for offering an extensive array of scientific and laboratory equipment. Our expansive portfolio, featuring over 4,000 products, includes scientific and laboratory glassware, analytical vials, filter papers, laboratory equipment, process equipment, primary pharmaceutical packaging, and more. We dominate the laboratory glassware market with a commanding 67% share. The laboratory glassware and consumables division reported a turnover of ? 194.91 crores in FY 2023-24, compared to ? 187.47 crores in FY 2022-23 reflecting a growth of 4.0%.
Educational institutions and Government-funded research institutes, which had faced challenges due to the Covid-19 impact, have now returned to normal operations, driving demand. The Governments emphasis on digital processes and the Government online e-marketplace portal has emerged as a growth opportunity where we see rising demand. Additionally, our focus on exporting laboratory glassware and analytical vials has driven significant growth,
establishing a strong presence in North America, Europe, the Middle East, and over 90 countries worldwide. The Company has also established distributorships across Asia, North America, the Middle East, Europe, and Africa, with large OEM accounts driving consistent demand. During FY 2023-24, exports of laboratory glassware and analytical vials reached ? 51.25 crores in FY 2023-24, growing by 2.4% as compared to FY 2022-23.
OurLabquestbrand offers laboratory instrumentsforkey application areas such as Nutrition and Environment, Life Sciences, and liquid handling. The lab instrumentation business under Labquest has gained momentum, growing from ? 25.58 crores in FY 2022-23 to ? 33.89 crores in FY 2023-24, reflecting a 32.5% increase. Our strategy with Labquest has been to expand sales with existing lab glassware customers while also acquiring new ones.
Our expertise in Glass Ampoules and Tubular Glass Vials, made from USP Type 1 glass, positions us as a vital supplier to pharmaceutical companies manufacturing injectable medications. The pharma primary packaging business, focusing on glass vials and ampoules, achieved Net Sales of ? 54.59 crores in FY 2023-24. This business serves packaging needs for injectable formulations, ophthalmic and dental products, and sample carriers for analytical instruments. The growing analytical vials range has led to partnerships with large global organizations, and our production facility has successfully passed stringent customer audits. Once onboarded, this serves as a significant entry barrier to competitors. We are also exploring new opportunities in pre-filled syringes, cartridges, and siliconized vials. In alignment with our strategic goals, we recently implemented a Composite Scheme of Arrangement with Borosil Limited and Borosil Technologies Limited to streamline operations and enhance growth potential. This restructuring consolidates our scientific and industrial businesses, improving operational efficiencies and laying the groundwork for future expansion. The acquisition of Goel Scientific Glass Works Limited (GSGWL) has further strengthened our market position by expanding our offerings to include Process Systems. This division encompasses advanced solutions for chemical synthesis, research and process development, and industrial and chemical processing equipment, providing us with seamless access to new markets and the ability to offer innovative product solutions.
Our diverse product range serves various industries, including Pharmaceuticals/APIs, Research and Development Institutes, Flealthcare, Chemical/Petrochemicals, Food & Beverages, Dairy, Water and Environment, Agriculture, Defense, Cement, and Academia. Our portfolios diverse SKUs meet the precise needs of laboratories, supported by ongoing advancements in manufacturing technologies that have positioned our facilities among the most modern globally. This investment ensures efficient operations and allows us to provide rapid delivery through our robust supply chain across India. The recent launch of our online Dealer Portal underscores our commitment to enhancing communication and operational efficiency with our channel partners. This platform automates customer feedback and service processing while also enabling quick product installations through an intuitive app-based solution.
MANUFACTURING ADVANCEMENTS
We manufacture the majority of our scientific products in-house, with our lab glassware product line sourcing glass tubes that adhere to ISO standards. Our manufacturing facilities, equipped with cutting- edge technology and sophisticated processes, ensure that our output is error-free and meets ISO/ASTM standards. Our advanced in-house Calibration laboratory, along with our NABL-accredited calibration
lab, allows us to provide A class certified products like Burettes, Pipettes, Cylinders, and Volumetric Flasks, saving our customers both time and money. To navigate the uncertainties in global supply chains and reduce import costs, we are actively exploring alternative sources. The ongoing expansion of our glassware manufacturing facilities underscores our commitment to delivering innovative solutions and meeting the evolving demands of the market.
We have made significant improvements to our Class A Volumetric Flasks by incorporating a laser-engraved permanent QR code, which simplifies the process for our customers to download calibration certificates. Additionally, we have established a dedicated and technologically advanced manufacturing facility for microscope slides, with an annual production capacity of 12 lakh slides.
Under our Labquest brand, we indigenously manufacture a wide range of laboratory equipment. We have invested in creating a state- of-the-art Laboratory Instrumentation Excellence Center in Pune, spanning 35,000 square feet. This facility is staffed with skilled professionals in design, electronics, mechanical, and chemical engineering, who are driving innovations in the lab domain. Every product we create is meticulously designed based on insights from lab scientists and users, ensuring high reliability and performance. Our recently launched patented Bottle Top Dispensers are poised to disrupt the market by offering high-quality, cost-effective, made-in- India solutions in a segment traditionally dominated by expensive international brands, providing efficient dispensing for critical laboratory solvents.
The success of our nutrition & environment products stems from substantial investments in research and development. We utilize specialized equipment for proximate analysis to precisely estimate protein content in sectors such as food, feed, agriculture, and pollution, through advanced Nitrogen estimation systems (Kjeldahl). As demand for water testing instruments rises, we are expanding our presence in water analysis through technology partnerships, supported by our state-of-the-art N ABL-certified calibration lab and an analytical application lab. By bringing electronics manufacturing in-house and establishing component testing labs, we ensure quality control, reliability, and product excellence. These substantial investments have also allowed us to expand our product portfolio in the food and nutrition segment, catering to both domestic and international markets, and unlocking significant growth opportunities. These initiatives reflect our commitment to delivering top-notch products that meet customer needs, while continually enhancing our capabilities and introducing innovative solutions that exceed expectations.
Our pharmaceutical primary packaging range is produced at our Nashik facilities. To meet the growing demand in this sector, weve expanded our capacity at the Nashik plant, which is now capable of producing over 350 Mn tubular glass vials and 800 Mn ampoules annually.
With the acquisition of GSGWL we now specialize in a comprehensive range of services, including design, engineering, fabrication, installation, and commissioningfor Pilot Plants/Mini-Plants, process equipment and Standard Distillation Units tailored for research and development purposes. GSGWL is globally recognized as a leader in crafting intricate and large glass articles with volumes of up to 500 liters, driving innovation in these dynamic sectors.
Our team at GSGWL combines industry knowledge with technical expertise to deliver customized solutions that cater to the unique needs of each client. By leveraging our experience and innovative mindset, we aim to drive advancements in research and development processes, setting new benchmarks for efficiency, reliability, and performance in Pilot Plants/Mini Plants and Standard Distillation Units.
EXPANSION PLAN
Growth of Lab Instrumentation Business: Our instrumentation unit, strategically located in Pune, serves as a cornerstone in our growth strategy, focusing on the research, design, development, and introduction of cutting-edge laboratory equipment. Operating as a dedicated entity within the Borosil family, this unit prioritizes innovation and excellence in crafting products under the Labquest brand. These Labquest products are more than mere instruments; they represent intelligence, durability, and practicality, addressing the ever-evolving needs of the rapidly growing nutrition and environment markets. By staying at the forefront of technological advancements and market demands, we establish ourselves as a key player in driving progress in lab instrumentation and scientific research. Expansion of Pharma Packaging Business: This unit is an integral part of the Borosil family and boasts a robust presence in the competitive pharmaceutical packaging sector. With a projected uptick in demand on the horizon, there is a ripe opportunity for Borosil Pharma Primary Packaging to embark on further expansion and diversification within this division. By exploring new product categories such as micro vials, vial inserts, glass droppers, larger OD vials, pre-filled syringes, and cartridges, we can broaden our product portfolio and enhance our market penetration and competitive edge. Proactively responding to industry trends and customer needs, our Pharma Primary Packaging business is well-positioned to solidify its status as a leading provider of pharmaceutical packaging solutions. Growth in Export Markets: Our successful entry into 90 countries highlights our global expansion strategy, showing promising growth across various product lines, including laboratory glassware, pharmaceutical primary packaging, process systems, and analytical vials. With a relentless focus on OEM developments and the exploration of additional product categories or markets in key regions such as Asia, Europe, and beyond, we are poised to capitalize on the increasing global demand for high-quality scientific products. By fostering strategic partnerships, staying attuned to market dynamics, and adapting to diverse cultural and regulatory environments, we continue to pave the way for sustainable growth and market leadership on an international scale.
Embracing Technology and Automation: Building on the foundation of successful initiatives like our online Dealer Portal and Labquest, we are set to unlock the full potential of technology and automation in our operations. By leveraging the expertise gained from these endeavors, we can drive a culture of innovation and efficiency through the integration of advanced technologies. Exploring opportunities to implement loT-enabled devices, artificial intelligence for data analysis, and other cutting-edge solutions, we aim to revolutionize laboratory processes, streamline workflows, and elevate the overall productivity and effectiveness of our operations. Our commitment to technological advancement ensures that we remain a forward- thinking industry leader, ready to embrace the digital transformation shaping the scientific landscape.
Diversification into Filter Paper Products: Our strategic expansion into the filter paper product category marks a new chapter of innovation and growth opportunities. By further enhancing and innovating within this division, we can tap into additional revenue streams and strengthen our position as a provider of comprehensive scientific solutions. Conducting in-depth market research to identify emerging applications and industries where filter paper products are in demand allows us to tailor our offerings to meet specific customer needs effectively. Through continuous product development and a customer-centric approach, we can leverage our expertise in filter paper products to drive market differentiation and unlock new avenues for business expansion.
Strategic Focus on Water Analysis: The escalating demand for instruments dedicated to drinking and effluent water testing presents a significant growth opportunity for us in the field of water analysis. By expanding our presence in this critical sector, we can
address the pressing need for reliable and accurate water analysis solutions. Collaborating with technology partners to develop state- of-the-art water analysis technologies, and leveraging our expertise in scientific instrumentation, we can deliver innovative solutions that meet the evolving requirements of industries and regulatory bodies. With a focus on quality, accuracy, and environmental sustainability, we can position ourselves as a trusted provider of cutting-edge water analysis solutions, contributing to global efforts toward ensuring water safety and quality.
Expansion of Food and Nutrition Portfolio: With significant investments focused on expanding our product offerings in the food and nutrition portfolio, we are actively exploring new avenues for growth and innovation within this division. By continuously assessing market trends, consumer preferences, and industry demands, we can identify emerging opportunities and develop tailored products to meet the evolving needs of the food and nutrition industry. Through strategic product development, market diversification, and a customer-centric approach, we can expand our footprint in the food and nutrition sector, capitalize on growing market trends, and establish ourselves as a key player in providing high-quality scientific solutions. By aligning our product portfolio with the shifting market dynamics and customer preferences, we set the stage for sustainable growth and market leadership in the food and nutrition division.
Focused Expansion In Process System Market: As part of our strategic expansion plan, we are excited to introduce our latest product line, Process Science, aimed at revolutionizing process chemistry automation and enhancing laboratory capabilities. Leveraging our expertise and cutting-edge technology, we are dedicated to providing tailored solutions for a wide range of laboratory process reactors, catering to diverse needs from bench lab reactors to advanced and mini lab reactors.
To further bolster our capabilities and offerings, we have recently acquired GSGWL a renowned industry player with extensive experience in Chemical Process Systems, Reactors, and related accessories. This strategic acquisition brings a wealth of expertise in Chemical Synthesis, Pilot, and Commercial Chemical Manufacturing, positioning us as a comprehensive solution provider in the chemical processing domain. Additionally, GSGWLs proficiency in specialty industrial systems such as wiped film evaporators and rotary evaporators opens up new avenues for growth and innovation, enhancing our portfolio and driving strategic expansion initiatives.
Through the integration of Process Science and the acquisition of GSGWL we are committed to pushing the boundaries of laboratory innovation, delivering state-of-the-art solutions, and enhancing our capabilities to meet the evolving needs of our customers across various sectors. This expansion plan underscores our dedication to excellence, innovation, and industry leadership as we continue to drive growth and advance laboratory technologies to new heights.
BRAND COMMUNICATION
The Company has implemented significant initiatives to engage potential customers through digital marketing. We have launched a new, comprehensive website for Borosil Scientific that consolidates all fourbusiness divisions in one place. Going forward, we will leverage SEO strategies to further enhance website traffic and strengthen our connectivity with customers across digital media. In line with the website, we have also launched Borosil Application on android and IOS which enables our customers and sales team to access product information at their fingertips. Recognizing the importance of Linkedln in the B2B sector, we have established a dedicated page for Borosil Scientific, allowing us to connect with customers and share regular updates about the Company. We have also launched a new YouTube channel for our customers, featuring product videos that provide a clear and quick understanding of product operations. A new logo has been crafted for us to establish its unique identity.
It serves as a powerful emblem, distinctly signaling our role as the scientific arm within the Borosil Group. This new identity of Borosil Scientific allows us to stand out, facilitating clear communication of our ideas and establishing a strong presence in the realm of science.
SUPPLY CHAIN
Our supply chain strength extends beyond mere numbers, reflecting a strategic approach to operational excellence and customer satisfaction. With a strategic footprint encompassing 4 strategically located warehouses throughout India, we have established a robust infrastructure that enables us to streamline logistics and optimize inventory management. This network of warehouses serves as strategic hubs, strategically positioned to cater to varying regional demands and ensure prompt deliveries to our customers nationwide. In addition to our warehouse network, our extensive distributor network of approximately 150 partners across India plays a pivotal role in expanding our market reach and ensuring last-mile connectivity. These distributors serve as valuable touchpoints, bridging the gap between our products and end customers, and providing localized support and service to meet diverse customer needs effectively.
Moreover, our strong presence in international markets through a well-established distributor network underscores our global growth strategy and commitment to serving customers on a global scale. By partnering with reputable distributors worldwide, we can navigate complex international logistics and regulatory landscapes, ensuring a seamless and efficient supply chain that transcends geographical boundaries.
Through this integrated approach, combining physical infrastructure, cutting-edgetechnology,andstrategicpartnerships,wearededicated to delivering our products with unmatched speed, reliability, and precision.
SEGMENT-WISE MARKET OPPORTUNITIES
We have strategically positioned ourselves as a leading provider of high-quality and precision instruments, catering to a wide range of market opportunities across various sectors:
Pharmaceutical Quality Control: In the realm of pharmaceutical quality control, our focus on delivering top-notch Laboratory Glassware and Lab Equipment aligns with the stringent requirements of the pharmaceutical industry. The Companys instruments, known for their durability and reliability, play a pivotal role in ensuring the accuracy and safety of pharmaceutical products. By addressing the needs of pharmaceutical companies engaged in quality assurance and control processes, Borosil contributes to maintaining the high standards essential for pharmaceutical research, development, and production.
Scientific Research and Development: Our offerings are
instrumental in supporting research institutions, laboratories, and scientific organizations in their pursuit of breakthrough discoveries and advancements. The Companys commitment to precision and durability is paramount for conducting experiments and analyses across a spectrum of scientific disciplines, including chemistry and materials science. By providing dependable and high-quality instruments, we empower researchers and scientists to conduct their work with accuracy and reliability.
Academic Institutions: Educational institutions serve as a significant market segment for Borosil, catering to both academic and research needs. Laboratories in schools and universities rely on our laboratory glassware and laboratory equipment for educational purposes and cutting-edge research endeavors. By offering reliable, safe, and enduring equipment for scientific experimentation and instruction, we play a crucial role in fostering learning and innovation within academic settings.
Nutrition and Environment: The applications of our products extend into sectors focused on nutrition and environmental sciences.
Laboratories and research facilities involved in studying nutritional content, food safety, and environmental monitoring rely on precision instruments for accurate analyses. Our emphasis on quality and precision aligns perfectly with the demands of these sectors, where the reliability of equipment is vital for obtaining precise and trustworthy data.
Global Reach: With a global outlook, we are well-equipped to address the needs of a diverse range of industries and institutions worldwide. The demand for high-quality scientific instruments transcends borders, and our global presence enables it to serve customers across different regions and industries on an international scale. By leveraging its reach and expertise, we meet the requirements of customers globally, contributing to advancements in scientific research and industrial processes on a global scale.
Through our comprehensive range of products and commitment to quality and precision, we have emerged as a versatile and reliable partner for various sectors, facilitating advancements and innovations in pharmaceuticals, scientific research, academic institutions, and global industrial settings.
PROFITABILITY
During FY 2023-24, Borosil Scientific earned an EBITDA of ? 55.47 crores (before exceptional and one-time items) translating to an EBITDA margin of 15.9% as against an EBITDA margin of 17.11% during FY 2022-23.
CAPITAL EMPLOYED
As on 31s* March, 2024, Borosil Scientific had operating capital employed (without considering Investments, goodwill and capital work-in-progress) of ? 299.48 crores (as compared to ? 272.91 crores on 31s* March, 2023). Our business maintains an average working capital of 109 days of sales. The fixed assets (including capital work in progress and advances) as of 31s* March, 2024 were ? 101.74 crores.
BUSINESS DIVISION-WISE OUTLOOK
We are strategically poised to maintain and expand our leadership in Indias laboratory glassware division, leveraging our established market presence to capitalize on anticipated growth. As we chart our path forward, our focus on international expansion is paramount, with targeted efforts in key regions such as North America, the Middle East, Europe, Africa, and Southeast Asia. By building a robust international franchise, we aim to penetrate new markets and diversify our revenue streams globally. Within this international landscape, our emphasis on OEM developments is setting the stage for substantial revenue growth, positioning us for success in global trade.
Our growth strategy is further strengthened by the introduction of Labquest for lab instrumentation, our expertise in pharmaceutical packaging, and the strategic acquisition of GSGWLs Process Systems business. These three initiatives represent significant avenues for expansion and innovation within our portfolio, aimed at accelerating the development of cutting-edge solutions. From enhancing the durability of glass components for specialized industries to achieving modularity and automation for operational efficiency, we are driving advancements that redefine industry standards.
Looking ahead, Borosil is on track to experience promising year-on- year growth over the next three years. The post-pandemic resurgence of the laboratory glassware and equipment industries, coupled with increased government spending in sectors such as Education, Health, and R&D, creates a favorable environment for our continued growth. Our role as a primary packaging supplier to pharmaceutical injectable manufacturers positions us to meet the surge in demand expected in the near term, aligning with the evolving needs of the pharmaceutical industry.
Our dedicated unit in Pune plays a crucial role in shaping the Companys growth, focusing on advancing laboratory instrumentation. This specialized entity under Borosils umbrella is dedicated to research, design, development, and innovation in cutting-edge laboratory equipment, particularly under the Labquest brand. Labquest products are more than just instruments; they represent a blend of intelligence, resilience, and functionality, tailored to meet the dynamic demands of the growing nutrition and environment markets. By embracing technological breakthroughs and staying aligned with market trends, Borosil Pune positions itself as a leader in lab instrumentation, driving progress and pioneering advancements in scientific research and innovation.
The acquisition of GSGWL is expected to further fuel our expansion by leveraging their extensive expertise in Chemical Process Systems, Reactors & Accessories, and specialized industrial systems such
as wiped film evaporators and rotary evaporators. This acquisition not only enhances our capabilities but also opens new avenues for growth in niche industrial sectors. As we look to the future, we anticipate increased investments from pharmaceutical companies and government institutions worldwide, driving demand for our lab glassware and instrumentation businesses. By staying at the forefront of industry trends, innovation, and market dynamics, we are well-positioned to capitalize on emerging opportunities and drive sustainable growth in the evolving Scientific and Industrial Products sector.
SEGMENT-WISE PERFORMANCE
Please refer to Note 41 - Segment Reporting of Standalone Financial Statements and Note 41 - Segment Reporting of Consolidated Financial Statements.
DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE
Financial Review
| FY 2023-24 : | FY 2022-23 | |
| Turnover | 35,514.59 | 32,582.32 |
| EBITDA | 5,646.74 | 5,573.97 |
| Profit before Exceptional Items and Tax | 3,998.88 | 4,310.43 |
| Profit for the Year | 3,145.93 | 3,046.96 |
Details of Significant Changes in Key Financial Ratios, along with Detailed Explanations:
| Ratios (Based on Standalone Financials) | FY 2023-24 | FY 2022-23 | Changes(%) | Explanation where changes are more than 25% |
| Return on Net Worth (%) | 6.48% | 6.71% | (3.45)% | - |
| Return on Capital Employed (%) | 10.30% | 11.76% | (12.41)% | - |
| Basic Earnings per Share (EPS) (?) | 3.55 | 3.44 | 3.17% | - |
| Debtors Turnover (No. of Times) | 7.58 | 8.39 | (9.56)% | - |
| Inventory Turnover (No. of Times) | 3.82 | 3.59 | 6.39% | - |
| Interest Coverage Ratio (X) | 29.26 | 44.81 | (34.71)% | Primarily due to increase in borrowings |
| Debt Service Coverage Ratio (X) | 14.97 | 26.88 | (44.33)% | Primarily due to increase in borrowings |
| Current Ratio (X) | 3.25 | 4.24 | (23.38)% | - |
| Debt-Equity Ratio (X) | 0.03 | 0.02 | 4.42% | - |
| Operating Profit Margin (%) | 11.66% | 13.53% | (13.84)% | - |
| Net Profit Margin (%) | 8.86% | 9.35% | (5.28)% | - |
RISK AND CONCERNS
The global economy faces potential slowdowns and tighter fiscal policies, exacerbated by the mismanagement or failures of several players worldwide, which could dampen business confidence and investment. Additionally, uncertainty surrounding global trade dynamics and market volatility has tempered international trade. The Companys key risks can be categorized as follows:
These risks underscore the importance of proactive management and strategic planning to mitigate potential impacts on Borosils operations and market position.
MATERIAL DEVELOPMENTS IN HUMAN RESOURCES, INDUSTRIAL RELATIONS AND NUMBER OF PEOPLE EMPLOYED
Our exponential global growth at Borosil hinges entirely on the indomitable dedication of our team. We emphasize nurturing an environment where every member feels valued and empowered. Key to our success is a shared vision, a people-centric culture built on trust and transparency, homegrown leadership, empowerment at all levels, openness to innovation, and a supportive management fostering employee loyalty.
Partnering with external experts, our HR department is actively shaping a future-ready organizational structure by assessing leadership skills and nurturing key talents. This strategic effort aims to attract, retain, and engage talent, while promoting career growth and readiness for new responsibilities.
Our formalized Learning and Development (L&D) initiatives are tailored to meet specific business needs, ensuring our employees continue to grow through targeted training programs. Impact studies assess the effectiveness of these initiatives, driving enhanced productivity and performance across the organization. Our values— Integrity, Customer Focus, Respect, Continual Improvement, Accountability, and Safety—are central to all our communications and interactions, reinforcing our commitment to these principles.
As of 31st March, 2024, the Company, along with its subsidiary, employed 817 dedicated team members, including 7 trainees and 6 retainers, alongside 1,032 contractual workers. These figures underscore our ongoing commitment to nurturing and supporting our workforce, a vital component of our sustained success.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
Internal control systems hold an integral position in the corporate governance framework of the Company. The Companys corporate governance principles encompass an all-inclusive framework for internal controls and audits, as suited to the business. The Company has established and implemented robust safeguards, internal control mechan isms and risk management processes that are proportionate to the nature of its business, as well as the scale and intricacy of its operations.
The Company adopts a comprehensive approach to delegation of authority throughout its team, thereby establishing robust checks and balances within the system to address any potential loopholes. Suitable internal control policies and standard operating procedures have been put in place to offer reasonable assurance
regarding the same. Adherence to these policies and procedures is seamlessly integrated into the management review process and regular comprehensive evaluations are being undertaken to ensure their ongoing relevance and comprehensiveness. The Company consistently evaluates the efficacy of its internal controls across various functions and locations through comprehensive internal audit exercises that employ a blend of contemporary and conventional audit tools. Thorough audits are conducted all through the year across the domains of all functions by well-established Internal & External Audit Team. The Audit Committee reviews the internal audit programme to ensure comprehensive coverage of the pertinent areas. The Internal Audit team enjoys unrestricted access to all organizational information,
The management, statutory auditors and internal auditors have conducted thorough due diligence on the Companys control environment through rigorous testing. The Audit Committee reviews reports submitted by the management and audit reports submitted by internal auditors and follows up on corrective action, if any.
The Audit Committee also meets the Companys statutory auditors to ascertain, inter alia, their views on the adequacy of internal control systems and keeps the Board of Directors informed of its major observations periodically. Based on its evaluation, the Audit Committee has concluded that, as of 31s* March, 2024, the internal financial controls were adequate and operating effectively.
CAUTIONARY STATEMENT
This Management Discussion and Analysis (MDA) includes forward- looking statements about the Companys goals, projections, financial and operating results estimates, and expectations, as defined by applicable laws and regulations. By their nature, forward- looking statements require the Company to make assumptions and are subject to inherent risks and uncertainties. There is a significant risk that the assumptions, predictions and other forward-looking statements will not prove to be accurate and the actual results may differ due to factors such as successful strategy implementation, business growth, global and Indian economic conditions, political stability, stock market performance, regulatory changes, economic developments, and other factors. The Company does not commit to updating these forward-looking statements, except as required by law. This document does not advise investors to buy the Companys shares and makes no explicit or implicit guarantees regarding the accuracy, completeness, or fairness of the information or opinions presented. Investors should exercise caution and diligence when interpreting these statements.
| Place: Mumbai |
| Date: 21s* May, 2024 |
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