Brawn Biotech Ltd Management Discussions

PHARMACEUTICAL SECTOR OVERVIEW

The Indian pharmaceutical industry is a global leader, ranking 3rd by volume and 14th by value. Valued around USD 55 billion in 2025, the sector is projected to reach USD 130 billion by 2030, growing at a CAGR of 11-13%. It is known as the "Pharmacy of the World" for its cost-effective manufacturing, skilled workforce, and strong generics and vaccine exports, supplying over 50% of global vaccine demand. Growth is driven by rising domestic demand, chronic disease prevalence, and expanding healthcare access, supported by government initiatives like the Production-Linked Incentive scheme and Ayushman Bharat. The industry is rapidly adopting advanced technologies for drug discovery and operational efficiency. Focus areas include biosimilars, specialty drugs, and contract manufacturing services, positioning India as a preferred global pharma hub. With these strengths, the Indian pharma sector is poised for sustained innovation, growth, and global leadership.

INDIAN PHARMACEUTICAL MARKET

In 2025, the Indian pharmaceutical sector continued to demonstrate robust growth and resilience, reinforcing its status as a global leader in the supply of affordable, high-quality medicines. The industry benefited from strong domestic demand, growing export opportunities, and supportive government initiatives, including continued thrust under the Production Linked Incentive (PLI) scheme and regulatory reforms aimed at enhancing ease of doing business.

The sector also witnessed accelerated integration of digital technologies, automation, and advancements in biotechnology, driving innovation across drug discovery, development, and manufacturing. Increased investments in R&D, a growing focus on specialty and complex generics, and rising global demand for Indias cost-effective healthcare solutions further strengthened its position in the global pharmaceutical value chain.

As a company operating at the heart of this evolving landscape, we remain focused on building capabilities, ensuring compliance, and embracing innovation to meet emerging patient needs. Our strategic initiatives remain aligned with national healthcare goals and global market trends, positioning us to contribute meaningfully to improved health outcomes and sustainable growth.

We thank our stakeholders for their continued trust and support and look forward to advancing our vision of being a responsible and future-ready player in the Indian pharmaceutical industry.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT industrial relations remained cordial. The Company focused on employee engagement, talent development, and retention through structured HR initiatives. A positive work environment, supported by efficient systems and people-centric policies, enabled enhanced productivity, alignment with organizational goals, and sustained growth across all levels of the workforce.

COMPANY PERFORMANCE

During FY 2024 25, the Company faced challenging market conditions and rising input costs, resulting in a marginal increase in losses compared to the previous year. Despite these headwinds, the Company continued to focus on operational efficiency, risk mitigation, and long-term sustainability through strategic planning and prudent financial management.

INTERNAL CONTROL SYSTEMS & ADEQUACY

Your Company has in place adequate internal control systems commensurate with size and nature of its operations. Internal control processes, which consist of adopting appropriate management systems and implementing them, are followed. The Company has a qualified Audit Committee, independent Statutory Auditors and Internal Auditors who submit reports periodically, which are reviewed and acted upon.

PROSPECTS

The Indian economy is one of the fastest developing economies in the world. On back of increasing sales of generic medicines, continued growth in chronic therapies and a greater penetration in rural markets, the domestic pharmaceutical market is expected to grow Indias economic growth is expected to accelerate, backed by improved investor confidence and better policy reforms. The Company is positive of increasing its market share through long-term growth opportunities in its existing products, acquisition of new customers.

OPPORTUNITIES AND THREATS:

OPPORTUNITIES:

With rising global demand for affordable healthcare, Indias pharma sector remains well-positioned for growth. Our focus on R&D, biotechnology, and complex generics allows us to capitalize on evolving market needs, forge strategic partnerships, and tap into emerging opportunities across domestic and international markets for sustainable, long-term value creation.

THREATS:

The pharmaceutical industry continues to face multiple challenges, including evolving global regulatory frameworks, pricing pressures, and increased scrutiny on quality and compliance. Rapid digital transformation has also heightened the importance of data security and cybersecurity. Additionally, the growing emphasis on environmental sustainability requires continuous adaptation of operations to meet stricter ESG norms. Currency fluctuations and geopolitical uncertainties further impact international business dynamics. Recognizing these emerging threats, the Company remains committed to strengthening its compliance systems, embracing sustainable practices, and enhancing digital resilience to ensure long-term stability, operational efficiency, and continued relevance in a highly competitive global market.