Borosil Scientific Ltd Management Discussions

GLOBAL ECONOMY

INDIAN ECONOMY

The global economy in 2024-25 stood at a critical juncture, marked by stabilization but facing a downshift in growth amid rising uncertainties and policy shifts. Global real GDP growth is projected to moderate at 2.8% in 2025, down from an estimated 3.3% in 2024. This reflects a convergence of structural and cyclical challenges, persistent policy uncertainty, intensifying trade tensions, escalating protectionism, geopolitical instability, volatile financial markets and increasing climate risks. Structural headwinds such as aging populations and constraints on labor force participation further weigh on long-term potential growth. Inflation continues to ease, though at a slower pace than earlier expected, with global headline inflation forecast at 4.3% in 2025 and 3.6% in 2026, highlighting sticky price pressures despite tighter monetary policies.

Indias economy remained resilient despite global headwinds in FY 2024-25, with real GDP growth estimated at 6.2%. This resilience is driven by robust domestic consumption, steady private investments and sustained government spending. The Union Budget 2025-26 allocated Rs.11.21 lakhs crores towards capital expenditure, reinforcing infrastructure development across sectors such as roads, railways, logistics and green energy. This impressive economic momentum, underpinned by strategic policy measures and targeted investments, has propelled the country past Japan to become the worlds fourth-iargest economy in 2025, according to the IMF data.

GDP Growth Projections

Real GDP Growth Projections

A significant policy development shaping this subdued outlook is the introduction of new tariff measures most notably by the United States (‘US) with US tariff rates heightening uncertainty in global trade. As a result, world trade volume growth has been revised down to just 1.7% for 2025, with any further escalation or prolonged uncertainty likely to compound risks. Regionally, advanced economies are expected to see growth slow from 1.8% in 2024 to 1.4% in 2025, with the US forecast at 1.8% and the Euro Area at just 0.8%, driven by policy frictions and weaker external demand. Emerging markets and developing economies (EMDEs) are projected to grow by 3.7% in 2025, with downward revisions for key economies such as China (4.0%) amid trade-related pressures. India remains a relative bright spot with a projected 6.2% growth, though not immune to global headwinds. Against this backdrop, the global economy in 2025 is poised for a challenging year marked by slower growth, lingering inflation and mounting vulnerabilities where policy clarity and international co-operation will be critical to restoring confidence and sustaining recovery.

(Source. World Economic Outlook by IMF, April 2025)

P Projected

(Source: IMF report on World Economic Outlook, April 2025)

Inflation pressures have eased, with CPI moderating to 4.8% in March 2025, allowing the RBI to adopt a mildly accommodative stance by reducing the repo rate to 6%. This easing was largely attributed to falling food prices, supported by healthy kharif arrivals and positive rabi crop prospects. Core inflation remained broadly contained. On the external front, Indias position remains solid, foreign exchange reserves stood at US$ 617 Bn, while the rupee remained stable against the dollar. Although recent US tariffs impacted exports in selected sectors, India has an opportunity to strengthen its manufacturing competitiveness and benefit from shifting global supply chains.

Consumption demand strengthened further in the second half of the year, complemented by improved business sentiment, as reflected in key confidence indicators. The services sector remains the backbone of Indias economic performance, with services exports reaching a record high of US$ 387.5 Bn in FY 2024-25, registering a strong 13.6% year-on-year (YoY) growth over the previous year. In the manufacturing sector, exports have gained momentum, particularly in high-value segments such as electronics, engineering goods and chemicals. The Micro, Small and Medium Enterprises (MSMEs) remain key players in supply chains, showing healthy expansion across various industries. MSMEs continue to drive innovation and contribute to the diversification of Indias manufacturing base, making them an essential part of the economys broader growth narrative. In line with this, the Union Budget 2025-26 had also introduced a series of measures aimed

ANNEXURE A (CONTD.)

at strengthening the MSMEs by raising investment and turnover limits, enhancing credit access, support for first-time entrepreneurs and sector-specific productivity initiatives.

i n d ias eco n om i c out look re m a i n s pos iti ve, d ri ve n by st ron g do m est i c consumption, digitalization and healthcare advancements. With a youthful, growing population and rising income levels, the country is weii-positioned for sustained long-term growth. The combination of policy support, strong domestic demand and ongoing structural reforms will ensure that India continues on its path as a leading global economy, with the potential to drive significant development and transformation across various sectors.

(Sources: P/B - Highlights of Union Budget 2025-26:

P/B -RBI Issues April 2025 Policy Update:

The Hindu- Indias forex reserves rise to $676.3 billion;

P/B- Service Sectors Contribution to Total GVA Rises from 50 6% in FY14 to 55.3% in FV75

P/B - Budget 2025-26 Fuelling MSME Expansion)

INDUSTRY OVERVIEW Global Pharmaceutical Market

The global pharmaceutical market is witnessing strong growth, with its value estimated at around US$ 1,772.65 Bn in 2025 and expected to reach nearly US$ 2,857.48 Bn by 2033. This expansion is largely driven by the rising burden of chronic diseases such as cardiovascular conditions, diabetes and cancer, which account for over 70% of global deaths, in response, pharmaceutical companies are innovating rapidly, with advancements in genomics, biotechnology and novel drug therapies including biologies, gene therapies and RNA-based treatments transforming the landscape of healthcare. Regulatory bodies like the U.S. FDA are approving an increasing number of new drugs, highlighting the pace of innovation within the sector.

Alongside scientific progress, growing investments in research and development are accelerating drug discovery and development globally. These initiatives, together with strengthened partnerships between pharmaceutical companies and healthcare organizations, are boosting the production, distribution and uptake of essential and novel medicines, thereby creating significant growth opportunities for the pharmaceutical industry worldwide.

Additionally, governments of emerging markets are enhancing healthcare access through large-scale programs like Indias Ayushman Bharat and Chinas Healthy China 2030, which expand insurance coverage and public health services.

Pharmaceutical Market Revenue

Indian Pharmaceutical Market

Indias pharmaceutical industry stands as a global powerhouse, poised to reach US$ 120-130 Bn by 2030, with long-term projections aiming as high as US$ 400-450 Bn by 2047. This growth is underpinned by multiple structural drivers, including the rising incidence of lifestyle-related diseases, an aging population, increasing health awareness and the accelerating consumerization of healthcare. Favorable policy frameworks such as 100% FDI allowance for greenfield investments under the automatic route and up to 74% for brownfield investments have made India an attractive destination for global investors in the healthcare and life sciences sector.

India ranks 3^rd globally in pharmaceutical production by volume and 14^1h by value, with a robust ecosystem comprising around 3,000 drug companies and over 10,000 manufacturing units. Known as the Pharmacy of the World, India accounts for 20% of the global supply of generic medicines and holds leadership across diverse segments, including OTC drugs, APIs, vaccines, biologies, biosimilars and contract research. The country has a significant presence in regulated markets like the U.S. and EU, with more than 650 FDA-approved manufacturing facilities. As of November 2024, India supplies 40% of the U.S. generic drug demand and 25% of all medicines consumed in the UK, reinforcing its critical role in the global pharmaceutical value chain.

Indian Pharmaceutical Market

P Projected

(Source: IBEF - Indian Pharmaceutical Industry)

As the pharmaceutical sector continues to expand, the demand for advancedresearch,qualitycontrolandmanufacturinginfrastructure rises in parallel. This directly fuels the need for high-quality laboratory glassware, scientific equipment and pharmaceutical packaging solutions, core offerings of Borosil Scientific. Each new drug discovery, manufacturing facility or R&D initiative drives greater demand for Borosil Scientifics products, positioning the Company as a key beneficiary of the sectors growth. The Companys strong domestic presence and reputation for quality make it a preferred partner for pharmaceutical companies seeking reliable laboratory solutions.

Government Support

The Union Budget 2025-26 presents a positive outlook for the pharmaceutical and life sciences sector, with a 10% increase in budgetary allocation to about Rs.98,311 crores. Key measures include customs duty exemptions on critical medicines, enhancing access to treatments for rare diseases, cancer and chronic conditions. An additional 37 drugs and 13 Patient Assistance Programs benefit from these exemptions. A Rs.20,000 crores allocation for private- sector R&D and innovation further strengthens the innovation ecosystem.

These Government initiatives not only boost R&D and manufacturing activity but also create a favorable environment for the expansion of laboratory infrastructure. As a leading supplier of laboratory glassware and equipment, Borosil Scientific stands to benefit significantly from increased R&D spending and the establishment of new research facilities. The Companys products are integral to the research and quality assurance processes that underpin the sectors innovation and growth, directly aligning Borosil Scientifics trajectory with national policy priorities such as the Heal in India campaign and the Viksit Bharat vision.

R&D Spending in the Indian Pharmaceutical Industry

R&D in India is experiencing significant growth across various sectors, propelled by strong government support, rising private i n vest me nts a n d f ocu s on i n n ovati on. Th e secto r s h owed i m p ress i ve resilience during the pandemic, advancing vaccine development and novel therapies. To sustain this momentum, India is creating a policy framework that emphasizes intellectual property rights, ease of doing business and public-private collaborations, such as joint research initiatives with ICMR, CSiR and ICAR Laboratories.

The surge in R&D activity directly translates to greater demand for laboratory consumables, precision glassware and scientific instruments. Borosil Scientifics precisely engineered products are essential for supporting research, development and production processes across the pharmaceutical value chain. As R&D investments rise, so too does the consumption of Borosil Scientifics products, cementing the Companys role as a critical enabler of pharmaceutical innovation and improved healthcare outcomes.

Advancements in Technology

Advancements in Al, data and technology are revolutionizing the pharmaceutical industry, enabling faster drug discovery, personalized treatments and improved disease diagnosis. Al tools, including generative Al, are showing high accuracy in diagnosing conditions like cancer and are expected to drive healthcare spending to US$ 188 Bn by 2030. While the potential is vast, widespread adoption will depend on rigorous validation, transparency and public trust.

The adoption of cutting-edge technologies in pharmaceutical R&D amplifies the need for sophisticated laboratory infrastructure. Borosil Scientifics advanced glassware and equipment are crucial for the precise experimentation and data collection that underpin Al-driven research and diagnostics. As technology adoption accelerates, Borosil Scientifics offerings become even more indispensable to industry stakeholders seeking accuracy, reliability and compliance.

Research Activities in Educational Institutes in India

Indias educational institutes, such as NTs, IICTs, CCMB and ICT, are at the forefront of advancing laboratory and research activities. These centers of excellence drive innovation and discovery across diverse fields, supported by expanding facilities and increased focus on cutting-edge research.

In this dynamic environment, Borosil Scientific plays a crucial role by supplying high-quality laboratory glassware and equipment.

The precision and reliability of its products are essential for research experiments, facilitating advancements in scientific study and innovation. As educational and research institutions expand their capabilities, the demand for Borosil Scientifics offerings grows in tandem, supporting the robust development of laboratory infrastructure and enhancing Indias research output and educational excellence.

Indian Biotechnology Market

Indias biotechnology market has witnessed exceptional growth over the past decade, expanding from US$ 10 Bn in 2014 to US$ 165.7 Bn in 2024, a sixteen-fold increase that underscores its strategic importance to the national economy. Contributing 4.25% to the GDP, the sector has maintained a robust CAGR of 17.9% over the last four years. With a target of reaching US$ 300 Bn by 2030, biotechnology is rapidly emerging as a cornerstone of Indias vision for a sustainable, knowledge-driven economy. Innovations in gene editing, bio-printing and bio-manufacturing, combined with integration across food, energy and industrial production, are enabling a circular and sustainable bio-economy that addresses global challenges.

Backed by strong R&D capabilities, supportive policies and a growing pool of skilled professionals, India is positioning itself as a global hub for biotechnology. The focus spans across bio-pharma, bio-agriculture, bio-industrial and bioinformatics, with significant efforts aimed at advancing vaccine development, diagnostics and therapeutics. The Governments push for digital integration, public-private partnerships and rural inclusion further strengthens the sectors role in driving innovation-led and inclusive economic growth in line with lndia@2047 goals.

The rapid growth of Indias biotechnology sector is fueling demand for specialized laboratory solutions and Borosil Scientific is well- positioned to meet these evolving needs. Our portfolio includes microcentrifuge tubes for molecular biology workflows, precision glassware for accurate reagent preparation, high-purity reagent bottles and sample vials to ensure contamination-free storage of sensitive biological materials, as well as specialty glass bioreactors and fermentation vessels for bio-manufacturing scale-up. Additionally, our USP Type I glass vials and ampoules provide safe packaging for biologies, vaccines and gene therapies. Through these advanced products, Borosil Scientific supports biotech companies and research institutes in achieving the highest standards of precision, safety and innovation, advancing Indias position in the global biotechnology market.

Indian Chemical Market

Indian Agrochemicals Market

Indias chemical industry stands as a global powerhouse, ranking sixth-largest chemical producer globally and the third-largest in Asia. It contributes approximately 7% to Indias GDP. Highly diversified, the sector encompasses over 70,000 commercial products and serves as a vital backbone for key end-user industries such as food processing, personal care and home care. Exports remain strong, with organic and inorganic chemical shipments reaching US$ 82.4 Bn during April-December 2024, while rising domestic consumption and increasing global demand are expected to nearly triple overall demand by 2040.

The Indian Government has played a central role in supporting the sectors expansion through targeted policy frameworks, investment incentives and infrastructure upgrades. Initiatives such as the Production Linked Incentive (PLI) scheme for Bulk Drug Parks and enhanced budgetary support to the Ministry of Chemicals and Fertilizers have catalyzed innovation and capacity building. Strategic investment hubs like the Dahej PCPIR in Gujarat and Paradip PCPIR in Odisha have attracted multi billion dollar investments and created thousands of jobs. Foreign Direct Investment (FDi) inflows of US$ 22.8 Bn between April 2000 and September 2024 underscore global confidence in Indias chemical sector. As international companies seek to diversify supply chains beyond China, Indian specialty chemical manufacturers are seizing new export opportunities and strengthening their global presence.

The rapid expansion of Indias chemical industry is fueling a surge in demand for advanced laboratory infrastructure, especially precision glassware, laboratory equipment and process systems. As manufacturers ramp up R&D, quality control and production, the requirement for reliable laboratory solutions grows in tandem. Borosil Scientific addresses these requirements with a portfolio that includes precision volumetric glassware for analytical measurements, robust reaction vessels and condensers for chemical synthesis and filtration assemblies for sample preparation and quality control. Our laboratory instrumentation, such as heating mantles, hot plates and distillation units, supports safe and efficient process development, while our industrial-scale glass reactors and process systems enable controlled, scalable chemical manufacturing. Through this expansive product portfolio, Borosil Scientific empowers chemical companies to achieve stringent standards of safety, accuracy and compliance, reinforcing operational excellence, supporting Indias position as a prominent hub in the chemical industry.

Indias Chemical Industry Valuation

(US$ Bn)

Indias agrochemicals industry is witnessing steady growth, with the market expected to rise from US$ 8.53 Bn in 2025 to US$ 10.38 Bn by 2030, reflecting a CAGR of 4%. This growth is underpinned by rising population pressures, increasing affluence and evolving consumption patterns, which together heighten the need for enhanced agricultural output and nutritional security. At the same time, challenges such as shrinking arable land and significant crop losses, estimated at 15-25% due to pests, weeds and diseases, underscore the critical role of agrochemicals in modern farming. As farmers become more aware of the benefits of effective pest and weed control, the adoption of agrochemical solutions is accelerating, positioning the industry as an essential driver of agricultural productivity and food security in India.

The Government is actively supporting this sector through initiatives promoting balanced and judicious use of crop protection products, coupled with regulatory reforms and digital advisory platforms for farmers. Furthermore, the growing emphasis on sustainable agriculture and integrated pest management is encouraging innovation in bio-based and low-residue agrochemicals. With rising export opportunities and Indias emergence as a global manufacturing hub for crop protection products, the sector is poised for long-term growth. As climate change further stresses agricultural resilience, agrochemicals will continue to play a vital role in safeguarding crop yields, ensuring food availability and sustaining farm incomes across the country.

Borosil Scientifics portfolio, including volumetric flasks, burettes, Soxhlet extraction apparatus, Kjeldahl digestion units, filtration assemblies and analytical sample vials, remain integral to critical processes in the agrochemical industry such as pesticide residue analysis, soil testing and the development of new crop protection solutions. With the sectors ongoing growth and increasing emphasis on innovation and regulatory compliance, Borosils advanced consumables and equipment are well positioned to play a greater role in supporting the evolving needs of agrochemical companies and research laboratories, naturally aligning the companys trajectory with the industrys positive outlook.

Global Laboratory Equipment Industry

The global laboratory equipment market is witnessing consistent growth, with its value reaching an estimated US$ 31.51 Bn in 2024, from US$ 29.16 Bn in 2023. Looking ahead, the market is projected to reach US$ 49.75 Bn by 2030, registering a CAGR of 7.92%. This upward trend is primarily driven by the rapid adoption of automation, digital technologies and smart systems in laboratory workflows. Increasing investments in research and development, particularly in drug discovery, precision medicine and clinical trials, continue to fuel demand across pharmaceutical, biotech, academic and industrial sectors. Moreover, the growing preference for compact, energy-efficient and cost-effective equipment is especially prominent in emerging economies, where favorable regulatory environments and supportive government policies are accelerating market expansion.

As the industry advances, the focus is shifting toward smart, customizable solutions that can adapt to evolving scientific applications and dynamic research needs. There is a rising demand for integrated systems that offer remote operability, real-time data monitoring and Al-enabled analytics. Companies have a significant opportunity to expand their global footprint by strengthening supply chains, investing in local manufacturing and targeting underserved regions with tailored solutions. At the same time, innovation efforts are increasingly centered around enhancing automation, device portability, the use of sustainable materials and scalable, modular designs. Prioritizing user-friendly interfaces, cloud connectivity and robust safety standards will be key to improving operational efficiency, reducing turnaround times and maintaining competitiveness in an evolving global market.

sustained momentum is underpinned by Indias prominent role in global generic drug and vaccine production, growing public health awareness, laboratory modernization and a well-trained scientific and technical workforce.

Several structural and policy-level enablers are propelling this growth. Chief among them is the increasing demand for high- precision diagnostic tools, expansion of academic and commercial research infrastructure and a strong policy push from the Government. Programs such as the Production-Linked Incentive (PLI) Scheme are actively encouraging domestic manufacturing and technological self-reliance in the medical and scientific equipment space. Indias cost competitiveness, in combination with deep medical expertise and accelerated adoption of digital and automated laboratory technologies, reinforces its attractiveness as a growth market for laboratory solutions.

The Indian laboratory equipment market is segmented into five major categories i.e. general laboratory equipment, analytical instruments, clinical laboratory equipment, support equipment and specialty equipment. Together, these trends signal a promising trajectory for Indias laboratory equipment market, with opportunities for both domestic manufacturers and global players to contribute to and benefit from the sectors evolution.

Amidst the rapid growth of Indias laboratory equipment market, Borosil Scientifics Laboratory Instrumentation division, marketed undertheLabQuestbrand, remains closely attuned to the evolving requirements of research, diagnostics and quality assurance across diverse industries featuring bottle top dispensers for precise liquid handling, high-speed centrifuges and vortex mixers for efficient sample preparation and Kjeldahl distillation units for protein and nitrogen analysis. Our portfolio also includes hot plates, heating mantles and water baths essential for controlled laboratory processes. These instruments are widely trusted in pharmaceutical, biotechnology, clinical, environmental and academic settings, supporting applications from chemical analysis and environmental monitoring to food safety and life sciences research. As laboratories increasingly seek reliable, user-friendly and technologically advanced solutions, Borosil Scientifics offerings are well-placed to support and grow alongside the sectors ongoing advancement.

advanced R&D infrastructure.

Inkwood Research- Indian Analytical Laboratory Instrument Market)

P. Projected

(Source: Global News wire- Lab Equipment Market)

Indian Laboratory Equipment Market

Indias laboratory equipment market is experiencing robust expansion in 2025, driven by rising healthcare investments, an expanding pharmaceutical and biotechnology sector and increased research and development activities. The market is projected to grow at a CAGR of 6.7% between 2024 and 2030, reaching approximately US$ 3,348.00 Mn by the end of the forecast period. Alternate projections indicate a CAGR of 6.33% through 2032, with the market potentially reaching US$ 4,142.85 Mn. This

Global Laboratory Consumables Market The global laboratory is estimated to be valued at US$ 15.86 Bn in 2024, according to revised estimates and is projected to grow to approximately US$ 39.58 Bn by 2035, at a CAGR of 8.67%. The sectors growth is underpinned by a surge in pharmaceutical and biotechnology research, particularly in drug discovery and development, along with rising global investments in R&D.

The adoption of laboratory automation and digitization has further accelerated demand for high-quality, reliable consumables that ensure accuracy and reproducibility in experimental workflows. Advances in product design such as sterile, single-use and eco- friendly materials are also contributing to the markets evolution, meeting the demands of high-throughput testing environments and strict regulatory standards. Heightened competition among global and regional manufacturers has led to continual product innovation and improved distribution capabilities. Market players

are increasingly focused on strategic partnerships and expansion into emerging economies to gain competitive advantage. As research intensity rises and automation becomes more integral to laboratory operations, the demand for consumables ranging from pipette tips, tubes and reagents to culture media and filtration products will continue to grow, positioning this segment as a vital enabler of scientific and clinical advancement.

Global Laboratory Consumables Market Growth

(US$ Bn)

Indian Laboratory Consumables Market

The Indian laboratory consumables market is poised for strong growth, projected to reach US$ 613.3 Mn in 2024 and expand at a CAGR of 12.3% from 2025 to 2030, reaching approximately US$ 1,252.8 Mn by 2030. This growth is driven by increased investments in research and diagnostics, the rising demand for precision in clinical workflows and the rapid expansion of Indias biotechnology and pharmaceutical sectors.

Pipettes and tips represent the largest product segment due to their widespread usage across laboratories, while vials and containers are the fastest-growing segment, supported by heightened needs in sample handling and storage. The increasing adoption of lab automation and advanced technologies across academic institutions, CROs and diagnostic labs is also contributing to market expansion. As India deepens its role as a global life sciences hub, laboratory consumables will remain critical to enabling innovation, supporting quality healthcare and accelerating scientific discovery.

Borosil Scientifics extensive range of laboratory consumables, including volumetric flasks, reagent bottles, measuring cylinders, beakers, pipettes, burettes, crystallizing dishes and petri dishes, is crafted to meet the precision and reliability demanded by modern laboratories. Complemented by sample vials, filtration assemblies, filter membranes, soxhlet extractors, sintered glassware, quartz crucibles, desiccators and essential accessories like stoppers and adapters, these consumables have become integral to workflows in pharmaceutical, biotechnology, agricultural, clinical and research laboratories. As these sectors continue to evolve and expand, the consistent quality and versatility of Borosils products naturally position the Company to support and grow alongside Indias advancing scientific community.

R Projected

(Source: Grand View Research - India Laboratory Consumables Market Size & Outlook 2030)

Global Pharmaceutical Primary Packaging Market

The global pharmaceutical primary packaging market is projected to reach US$ 159.29 Bn by 2025. Primary packaging, which includes bottles, blister packs, vials, ampoules and prefillable syringes, accounts for about 77% of the total pharmaceutical packaging market value. These components are essential for preserving drug integrity, ensuring accurate dosing and maintaining product sterility, making them critical across all stages of the pharmaceutical supply chain.

Growth in this segment is fueled by rising global demand for high- quality, tamper-evident and contamination-resistant packaging solutions. Increasing regulatory emphasis on safety and traceability, is accelerating the adoption of innovative packaging technologies. Additionally, the growing use of biologies and injectables is contributing to higher demand for specialized packaging formats such as prefillable syringes and sterile vials.

Pharmaceutical Packaging Market

Indian Pharmaceutical Primary Packaging Market The Indian pharmaceutical primary packaging market is witnessing robust growth, due to rising pharmaceutical production, increased healthcare expenditure and growing emphasis on safe and effective drug delivery systems. In FY 2024-25, the market is projected to generate revenues of approximately US$ 13.76 Bn (Rs.1,37,581 Mn), with forecasts suggesting it could reach US$ 33.75 Bn by 2030. This growth is being accelerated by the widespread adoption of advanced packaging technologies, growing demand for sustainable and patient-friendly materials and the countrys expanding pharmaceutical footprint both domestically and globally.

Key product categories driving this expansion include bottles, vials, ampoules, blister packs and prefillable syringes, with plastics and polymers forming the largest share by material usage. The industrys strong outlook is further supported by evolving regulatory frameworks and the increasing burden of chronic diseases, which are pushing for higher standards in drug safety, compliance and shelf-life integrity.

As Indias process chemistry equipment market continues to expand, the demand for sophisticated laboratory and process systems is steadily rising. Borosil Scientifics advanced offerings, such as mini reactor systems, jacketed glass reactors and automated reaction assemblies, are increasingly being integrated into R&D and process development environments across the chemical, pharmaceutical and biotechnology sectors. This alignment with industry trends not only supports customers in achieving greater efficiency, precision and scalability in their operations, but also positions Borosil Scientific at the forefront of technological advancement in the field. By continually evolving its product portfolio to meet the complex requirements of a modernizing industry, Borosil Scientific is well-placed to grow alongside Indias dynamic process chemistry landscape.

India Primary Pharmaceutical Packaging Market Size

R Projected

(Source: Grand View Research - India Primary Pharmaceutical Packaging Market Size & Outlook. 2030)

Global Process Chemistry Equipment Market For FY 2024-25, the global process chemistry equipment market, typically classified within the broader process equipment sector, is projected to reach approximately US$ 65.33 Bn. This growth is driven by rising demand for advanced, automated and energy-

efficient equipment across the chemical, pharmaceutical and related industries. Key factors fueling the market include increased investment in research and development, the integration of digital technologies for real-time monitoring and predictive maintenance and a heightened focus on sustainability alongside stringent environmental regulations. The Asia-Pacific region is poised to experience the fastest growth, supported by rapid industrialization and favorable government policies promoting sector expansion. (Source: GlobeNewswires - Process Equipment Market Size)

Indian Process Chemistry Equipment Market The Indian process chemistry equipment market, a vital segment within the broader chemical machinery and equipment sector, is projected to reach US$ 279.53 Bn by 2025, underscoring the countrys dynamic industrial growth and expanding chemical and pharmaceutical manufacturing base. This market includes a comprehensive range of specialized equipment such as reactors, centrifuges, filtration systems, heat exchangers, mixers and pumps, which serve a diverse set of industries including chemicals, pharmaceuticals, plastics and food and beverage processing.

The growth of this market is fueled by multiple factors. Rapid industrialization across Indias manufacturing hubs has escalated demand for advanced and efficient process equipment to enhance production capabilities and maintain competitive quality standards. Simultaneously, there is an increasing emphasis on automation and digital integration such as real-time monitoring, predictive maintenance and smart manufacturing systems which improves operational efficiency and reduces downtime.

Furthermore, the Indian market is benefiting from a rising focus on sustainable and energy-efficient equipment, reflecting global trends towards greener industrial processes. This is particularly important as industries seek to reduce their environmental footprint while meeting growing demand. The pharmaceutical sector, in particular, is a major growth driver due to Indias status as a global leader in generic drug production, vaccine manufacturing and biopharmaceutical innovation, all of which require sophisticated process chemistry equipment.

Borosil Scientific enables the Indian Process Chemistry Equipment Market by manufacturing advanced laboratory process systems such as mini reactor systems, jacketed bench systems and automated reaction systems that support chemical synthesis, process development and scale-up activities. These systems enable precise control over reaction parameters like temperature, pressure and dosing, improving safety, reproducibility and efficiency in R&D environments across pharmaceuticals, chemicals and biotechnology sectors. By offering scalable and customizable solutions designed for Indian laboratory needs. The Company is helping reduce dependence on imported equipment while enhancing productivity and innovation in process chemistry.

OPPORTUNITIES AND THREATS Opportunities

• Growing Global Pharma Investments in India

Indias competitive manufacturing ecosystem is attracting increasing interest from multinational pharmaceutical companies. With significantly lower production costs than western markets, global firms are expanding their operations in India, opening up new prospects for business growth and deeper market penetration.

• Momentum in Generic Drugs from Patent Expirations

The market for generics continues to expand rapidly in the wake of major drug patents expiring between 2012 and 2016. This shift, often termed the patent cliff, has created fertile ground for generic manufacturers, fueling sustained doubledigit growth across the segment.

• Surging Demand for Vaccine Exports

With international bodies such as WHO and UNICEF driving demand for affordable vaccines, Indian vaccine manufacturers have a significant opportunity to scale their exports to regions including Africa, Southeast Asia and Latin America, strengthening both their global footprint and future revenue streams.

• Policy Push for Healthcare Infrastructure

Government-led investments in healthcare, pharma and R&D institutions are driving demand for advanced scientific tools and consumables. These initiatives aim to strengthen Indias medical ecosystem, unlocking growth opportunities for companies supplying to this sector.

• Production-Linked Incentive (PLI) Scheme Support

Indias PLI scheme has catalyzed investments in bulk drug and medical device manufacturing, reducing reliance on imports. Backed by substantial financial incentives, this policy is expected to elevate domestic production of pharma packaging, labware and process solutions, providing a boost for Indian manufacturers across these domains.

(Source: Ministry of Chemicals and Fertilizers)

• Shift Towards India in Global Supply Chains

As global companies adopt a China+1 approach to mitigate supply chain risks, India is emerging as a strategic alternative, especially in Active Pharmaceutical Ingredient (API) manufacturing. This trend bodes well for Indian suppliers of lab consumables, packaging and processing equipment supporting the pharma value chain.

• Technology-Driven Innovation in Labs

Cutting-edge advancements in lab automation, robotics and analytics are reshaping laboratory operations. This evolution is driving demand for more efficient, tech-enabled scientific equipment and consumables, offering companies the chance to innovate and differentiate through smarter, more precise product offerings.

• Uptick in R&D Across Industries

Increased focus on research in life sciences, pharmaceuticals, biotech and environmental science is accelerating demand for sophisticated laboratory products and process tools. The industrys push to meet global standards and pursue innovation is creating a favorable climate for growth in high- performance lab and packaging solutions.

(Source: Frost & Sullivan)

Threats

• Highly Fragmented Domestic Market

Indias scientific equipment and consumables space is marked by fragmentation, with numerous local players targeting price-sensitive customers. This fragmented

landscape intensifies price competition, particularly in the mid- and low-range product segments.

• Regulatory Unpredictability

Tight compliance norms and evolving regulatory requirements can hinder time-to-market for new products. Delays in certifications or sudden changes in global or domestic regulations may slow down rollout plans and hamper market reach.

• Macroeconomic Volatility

Economic downturns or policy shifts affecting pharma spending can ripple into related sectors such as laboratory tools and consumables. Budget cuts or deferred capex in pharmaceutical operations may dampen short-term demand for such products.

• Barriers in Industrial Glass-Lined Equipment

Technical challenges and the entrenched position of experienced incumbents pose entry barriers for newer players in the glass-lined segment. The complexity of these systems demands specialized know-how, limiting easy access to this niche market.

• Heightened Oversight by the US FDA

Stricter inspection regimes by the US FDA, particularly concerning packaging compliance, can stall exports when irregularities are found. Such quality control actions not only disrupt order pipelines but also create medium-term uncertainty for packaging suppliers reliant on the generics market.

(Source: Market Research Future, Pharmabiz, Frost & Sullivan)

COMPANY OVERVIEW

Borosil Scientific Limited (referred to as Borosil or the Company) is a trusted name in the scientific and laboratory solutions space, offering a robust and diverse product range spanning over 4,000 items. Our portfolio includes high-precision laboratory and scientific glassware, analytical vials, filter papers, laboratory instrumentation, process systems and primary pharmaceutical packaging solutions. In FY 2024-25, the Laboratory Glassware and Consumables division recorded revenues of Rs.218.8 crores, up from Rs.192.2 crores in FY 2023-24, reflecting a year-on-year growth of 13.8%. Net Sales from the Laboratory Glassware segment stood at Rs.187.25 crores, marking a growth of 14.4% over the previous year.

Heightened focus on scientific innovation, coupled with increased funding for research and academic infrastructure, is driving sustained demand across institutions and laboratories. The increased focus on digital procurement and the use of the Government e-Marketplace (GeM) portal has opened up fresh opportunities for growth. Additionally, the expansion of our export footprint in laboratory glassware and analytical vials has accelerated our momentum across North America, Europe, the Middle East and more than 90 countries globally. Our distributor network now spans key regions in Asia, North America, Europe, Africa and the Middle East, with OEM collaborations consistently fueling demand.

Our instrumentation line under the LabQuest brand addresses key application areas such as Life Sciences, Environmental and Nutritional Sciences and Liquid Handling. In FY 2024-25, LabQuests sales grew from Rs.42.3 crores to Rs.31.9 crores, a 32.3% increase. The strategy behind LabQuest continues to be twofold: deepen penetration with existing glassware customers while also acquiring new clients in complementary segments.

In pharmaceutical packaging, we have built strong capabilities in producing glass ampoules and tubular glass vials using USP Type 1 glass, serving the critical needs of injectable drug packaging. Net Sales for this vertical stood at Rs.68.5 crores. Our offerings cater to injectable formulations, ophthalmic and dental applications and analytical sample handling. This segment has witnessed robust growth, driven by partnerships with large global clients and successful audits of our production facilities, which serve as a strong competitive moat. We are also venturing into adjacent categories including siliconized vials, prefilled syringes and cartridges.

In line with our strategic roadmap, we recently completed a Composite Scheme of Arrangement involving Borosil Limited and Borosil Technologies Limited. This move brings together our scientific and industrial businesses, enhancing synergy and operational agility. The acquisition of Goel Scientific Glass Works has further expanded our capabilities in Process Systems, especially in chemical synthesis, R&D and industrial-scale processing, unlocking new market opportunities and strengthening our solutions portfolio. In FY 2024-25, Process Systems sales grew from Rs.41.5 crores to Rs.48.8 crores, marking a 17.8% increase.

Borosil caters to a wide spectrum of industries, ranging from Pharmaceuticals and APIs, Research & Academia, Healthcare, Chemicals and Petrochemicals, to Food and Beverages, Dairy, Water and Environment, Agriculture, Defence and Cement. Our product catalogue meets exacting scientific needs, backed by investments in state-of-the-art manufacturing technology and supported by a responsive, pan-India supply chain. The launch of our online Dealer Portal has further enhanced supply efficiency and service coordination, enabling faster installations and streamlined customer support through a mobile-first interface.

Great Place to Work

Borosil Scientific has earned certification as a Great Place to Work?, reflecting the strong trust, respect and shared purpose that shape our workplace culture. This recognition reflects the voice of our employees and our consistent efforts to create an inclusive, empowering and values-driven environment, where people feel heard, supported and motivated to achieve collective success.

Manufacturing Advancements

A majority of our scientific products are manufactured in-house using premium glass tubing that complies with ISO specifications. Our advanced production facilities are equipped with precision systems that deliver products meeting global ISO and ASTM standards. Our in-house calibration capabilities, including a NABL- accredited lab, enable us to deliver certified Class A products, such as Burettes, Pipettes, Cylinders and Volumetric Flasks, allowing customers to save time and reduce costs.

We continue to diversify our supply base to counter global sourcing disruptions and reduce import dependence. Ongoing capacity expansion in our glassware plants reflects our commitment to serving emerging demand with quality and speed. Recent innovations include QR-coded Class A Volumetric Flasks, which allow customers to directly access calibration certificates, improving transparency and convenience. We have also received I SI certification across our laboratory product range. A new high-tech facility for manufacturing microscope slides is now operational, with a capacity of 10,000 slides per annum. Meanwhile, under the LabQuest brand, we continue to introduce products based on direct inputs from lab users. Our patented Bottle Top Dispensers, developed as a cost-effective, high-quality alternative to imported offerings, are already reshaping this niche market with precision dispensing solutions.

In the fast-growing water testing domain, we are scaling up through strategic technology tie-ups, supported by NABL-certified calibration and analytical testing labs, including our recently accredited Pune Laboratory. The acquisition of Goel Scientific has also equipped us with capabilities across the entire lifecycle, from design and engineering to fabrication and commissioning, of advanced Pilot Plant and Mini-Plant setups for research and distillation needs.

Expansion Strategy

Lab Instrumentation: Our dedicated instrumentation center in Pune continues to drive product innovation under the LabQuest brand, focusing on designing cutting-edge tools to support the evolving demands of modern laboratories.

Pharmaceutical Packaging: New product lines, including micro vials, droppers, vial inserts, wider OD vials, cartridges and pre-filled syringes, are being introduced to broaden our pharma packaging range and capture untapped segments.

Filter Paper A major investment is underway to upgrade our filter paper production capabilities, opening up a new avenue in scientific consumables with wide applications in research and testing.

Water Analysis: The increasing need for reliable testing of drinking water and industrial effluents presents a strong opportunity in this space. We are building out our water analysis portfolio to respond to this growing market.

Food & Nutrition: Our focus in this space includes adding new product lines based on evolving trends in food safety, nutrition analysis and functional food research, enabling us to serve the changing needs of both industry and academia.

Process Systems: Under the Process Science range, were developing a comprehensive suite of laboratory and pilot-scale reactors tailored for chemical processing, with capabilities ranging from benchtop systems to compact process units for advanced R&D labs.

Brand Communication

We are evolving how we engage with customers by investing in a fully integrated digital presence. A revamped Borosil Scientific website now serves as a single touchpoint for all four business verticals. Enhanced SEO strategies, a dedicated Borosil Scientific

Linkedln page and a new YouTube channel featuring product walkthroughs are all part of our digital outreach strategy. Our new Borosil mobile application provides instant access to product details for customers and sales teams alike. A refreshed brand logo reinforces our distinct identity as the scientific solutions arm of the Borosil Group, positioning us clearly in the minds of our stakeholders.

Supply Chain Strength

Our supply chain is built on a well-defined strategy that emphasizes efficiency, responsiveness and customer satisfaction. With a network of four regionally distributed warehouses across India, we have established a strong logistical backbone that supports seamless inventory movement and optimized delivery timelines. Each warehouse acts as a vital hub, enabling us to manage stock intelligently, respond swiftly to regional demand and maintain product availability closer to key markets. This decentralized infrastructure not only enhances fulfilment speed but also reinforces our ability to serve customers reliably and consistently across the country.

Sector-Wise Market Opportunities

Pharmaceutical Quality Control: Our instruments and labware are essential tools for pharma companies committed to stringent quality standards. With precision, reliability and durability at the core, we help ensure safety and consistency across pharmaceutical development and production workflows.

Scientific R&D: Research bodies and laboratories across chemistry, life sciences and applied sciences rely on our equipment for experiments, measurements and innovation. Our offerings are engineered to deliver accurate results and withstand intensive lab use.

Academic Institutions: We support educational institutions with dependable labware and instruments for teaching and research. By enabling hands-on experimentation, we contribute to nurturing the next generation of scientists and innovators.

Nutrition & Environmental Sciences: Our solutions play a vital role in areas such as food safety testing, nutritional content analysis and environmental monitoring. High-quality, accurate instruments are critical in these fields, where precision can influence public health and policy decisions.

Global Reach: With exports spanning more than 90 countries and a well-established global distributor network, Borosil Scientific serves diverse scientific needs across industries and geographies, reinforcing its position as a dependable global partner in science.

Profitability

During FY 2024-25, Borosil Scientific earned an EBITDA of Rs.66.01 crores (before exceptional and one-time items) translating to an EBITDA margin of 16.8% as against an EBITDA margin of 15.9% during FY 2023-24.

Capital Employed

As on 31³¹ March, 2025, Borosil Scientific had operating capital employed (without considering Investments, goodwill and capital work-in-progress) of Rs.228.46 crores (as compared to Rs.299.48 crores on 31³¹ March, 2024). Our business maintains an average working capital of 123 days of sales. The fixed assets (including capital work in progress and advances) as of 31^s1 March, 2025 were Rs.97.77 crores.

Business Division-Wise Outlook

Our growth strategy is anchored by the launch of new products in LabQuest i.e. lab instrumentation, our expertise in pharmaceutical primary packaging and the Goel Scientifics Process Systems business. These initiatives open significant avenues for innovation and expansion, allowing us to develop cutting-edge solutions, enhance glass component durability and boost efficiency through modularity and automation. As a primary packaging supplier for pharmaceutical injectables, we are well-positioned to meet rising demand, supported by the increased demand in laboratory glassware and equipment sectors, along with increased government investment in Education, Health and R&D.

Our Pune unit plays a crucial role in advancing laboratory instrumentation, emphasizing research, design and innovation under the LabQuest brand. LabQuest products merge intelligence, resilience and functionality, catering to the growing nutrition and environment markets and securing a leading position in lab instrumentation. The acquisition of Goel Scientific enhances our expansion by drawing on expertise in Chemical Process Systems and specialized industrial systems like evaporators, creating new growth opportunities in niche industries. By anticipating increased investments from pharmaceutical firms and global governments and maintaining our primary focus on international expansion in key regions such as North America, the Middle East, Europe, Africa and Southeast Asia, we are well-equipped to capitalize on emerging opportunities for sustainable growth in the Scientific and Industrial Products sector.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE Segment-Wise Performance

Please referto Note 40-Segment Reporting of Standalone Financial Statements and Note 42 - Segment Reporting on Consolidated Financial Statements.

Financial Review

(Rs. in lakhs)

	FY 2024-25	FY 2023-24
Turnover	39,249.01	35,645.97
EBITDA	6,600.79	5,646.74
Profit Before Exceptional items and Tax	4,831.70	3,998.88
Profit For the Year	3,501.66	3,145.93

Details of significant changes in key financial ratios, along with detailed explanations:

Ratios (Based on Standalone Financials)	FY 2024-25	FY 2023-24	Changes (%)	Explanation where changes is more than 25%
Return on Net Worth (%)*	6.71%	6.48%	3.44%
Return on Capital Employed (%)	11.27%	10.30%	9.35%
Basic Earnings per Share (EPS) (Rs.)	3.94	3.55	11.14%
Debtors Turnover (no. of times)	6.75	7.61	(11.37%)
Inventory Turnover (no. of times)	4.45	3.83	16.13%
Interest Coverage Ratio (no. of times)	63.16	29.26	115.87%	Primarily due to decrease in finance cost and increase in EBIT
Debt Service Coverage Ratio (no. of times)	21.10	22.44	(5.97%)
Current Ratio (no. of times)	4.22	3.25	29.84%	Primarily due to decrease in working capital loan and trade payable
Debt Equity Ratio (no. of times)	0.01	0.03	(52.05%)	Primarily due to decrease in borrowings
Operating Profit Margin (%)	12.51%	11.62%	7.69%
Net Profit Margin (%)	8.92%	8.83%	1.09%

* The change in return on Net Worth is primarily due to increase in earnings.

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:

Sr. No.	Risk	Rationale	Impact	Mitigation Measures
Internal Risks
1	Improper Inventory Storage and Handling	Inventory, primarily glass tubes, must be stored under controlled conditions to preserve quality.	Inadequate storage can result in product spoilage or damage, leading to increased costs, lower margins and strained customer relations.	Enforced storage protocols, regular staff training and investments in modern storage infrastructure.
2	High Operational Costs Due to Energy Dependence	Operations depend on uninterrupted supply of electricity, gas and fuel.	Energy shortages or rising costs can disrupt production, reduce efficiency and compress profit margins.	Use of backup diesel generators, dualfuel systems (natural gas and LPG) and active monitoring of energy prices to optimize usage.
3	Regulatory and Integration Complexity	Adhering to evolving regulatory norms and integrating new systems pose operational challenges.	Delays in compliance can lead to increased costs, administrative inefficiencies and reduced market responsiveness.	Proactive compliance management, collaboration with regulatory and software experts and ongoing investments in integration solutions.
4	Product Quality Assurance	Scientific glassware must meet international standards to remain competitive.	Quality lapses may result in recalls, legal exposure, reputational harm and customer attrition.	Rigorous quality control, routine testing, liability insurance, certifications and continual system upgrades.
5	Supply Chain Concentration	Relying on a limited supplier base increases vulnerability to supply disruptions.	Material shortages or quality issues can delay production, raise costs and threaten financial performance.	Supplier diversification, long-term contracts and robust contingency sourcing strategies.
6	Foreign Exchange Volatility	Revenue and imports are significantly exposed to currency fluctuations.	Currency risks may erode profitability and inflate procurement costs.	Implementation of hedging mechanisms, active forex monitoring and maintaining a diversified currency exposure.
7	Economic and Competitive Pressures	Global competition and economic shifts, especially low-cost imports, challenge pricing power.	Price undercutting and reduced demand can affect revenue and brand value.	Dynamic pricing, strong brand positioning, superior quality assurance and enhanced customer service.

External Risks

1	Macro-Economic and Policy Risks	Business performance is influenced by interest rates, GDP trends, geopolitical events and domestic regulations.	Instability or adverse policy changes may impact demand, costs, stock valuation and compliance burden.	Market diversification, policy tracking, financial flexibility, stakeholder engagement and adaptable strategy planning.
2	Evolving Legal Environment	Regulatory frameworks are frequently revised, requiring operational adjustments.	Legal changes can drive up compliance costs and disrupt business continuity.	Regular legal audits, engagement with legal advisors and proactive compliance planning.

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

At Borosil Scientific, ou r sustained growth is anchored in the passion and commitment of our people. We are building a workplace culture where individuals are valued, empowered and aligned with a collective purpose. Our culture is defined by openness, mutual respect, entrepreneurial thinking and leadership that emerges from within.

To strengthen our talent pool and leadership pipeline, the Human Resources team is collaborating with external partners to create an agile, future-ready organization. This includes identifying high- potential talent, enhancing managerial capabilities and supporting career progression through structured development interventions.

Learning and development remain central to our talent strategy. Customized training programs are rolled out to address evolving business needs, supported by periodic impact assessments to track outcomes and align efforts with organizational goals. Our core values—Integrity, Customer Centricity, Respect, Accountability, Continuous improvement and Safety—are embedded across all employee touchpoints and serve as guiding principles in our everyday actions.

As of 31^s1 March, 2025 Borosil Scientific had a workforce comprising 631 permanent employees and workers, which includes 7 retainers and 11 trainees, along with 987 contract workers. These numbers reflect our commitment to building a capable and engaged workforce that underpins our long-term success.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY A strong internal control system is fundamental to Borosil Scientifics governance practices and operational discipline. Our internal control framework is designed to be robust, risk-sensitive and proportional to the scale and complexity of our operations.

Authority is delegated systematically across the organization with well-defined roles, responsibilities and processes that provide necessary checks and balances. We have established detailed internal policies and standard operating procedures that serve as

the foundation for effective monitoring and risk mitigation. These are routinely reviewed for relevance and strengthened based on evolving business needs. The Company employs a rigorous internal audit program, executed by both internal and external audit teams, covering ail business functions and operational units. These audits are conducted periodically using a combination of conventional and modern audit methodologies to evaluate control effectiveness and process integrity. The Audit Committee oversees the audit framework to ensure comprehensive coverage and timely corrective action where required.

The internal audit team has unfettered access to all relevant records and information. The Audit Committee regularly reviews findings from both internal audits and management reports and engages with the auditors to assess the strength of the internal control environment. Based on its assessment, the Audit Committee confirmed that, as of 31³¹ March, 2025, the Companys internal financial controls were adequate and functioning effectively.

CAUTIONARY STATEMENT

This Management Discussion and Analysis contains forward- looking statements that reflect the Companys strategic intent, business outlook and future performance expectations. These statements are based on current assumptions, plans and estimates and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied. Factors such as changes in economic conditions, both domestic and global, regulatory developments, competitive dynamics, successful execution of strategic initiatives and market volatility may influence the Companys future performance. The Company makes no assurances as to the accuracy or completeness of these forward-looking statements and does not undertake any obligation to revise them unless required by law. This document is not intended to serve as investment advice, nor does it represent a recommendation to buy or sell the Companys securities. Readers are advised to exercise their own judgment and consult financial experts when evaluating forward- looking statements or making investment decisions.

	For and on behalf of the Board of Directors
Place: Mumbai Date: 2191 May, 2025	Kewal Kundanlal Handa Chairman DIN:00056826	Vinayak Madhukar Patankar Whole-time Director & CEO DIN:07534225