FDC Ltd Management Discussions

<dhhead>Management Discussion of Analysis</dhhead>

Social

Where Excellence Meets Compassion

At FDC, our approach to social responsibility begins with our people and extends to the communities we touch. Whether it’s through creating a safe, inclusive workplace or supporting health, education and empowerment beyond our walls, we aim to drive positive and lasting change.

Capability Building Across Functions

We deployed a comprehensive suite of learning and development initiatives tailored to the unique needs of our manufacturing teams, corporate employees and field workforce. These programmes combined technical training, regulatory awareness, leadership development and digital skills to build capability at every level. By aligning learning priorities with our business strategy and evolving market dynamics, we enabled our people to adapt, grow and deliver consistent performance across functions.

Operational up-skilling

We prioritised technical upskilling and safety culture across our plant teams, supported by focused training modules that improved process consistency and audit readiness.

Leadership Development

We continued to invest in shaping future-ready leaders across all levels of the organisation. Our flagship leadership development initiative ‘Aspire’, provided mid-level managers with a structured pathway to strengthen skills in team leadership, effective communication and strategic decision-making. To enhance leadership alignment and experiential learning, we also introduced ‘V-Win - Aquasail Leadership Program’, an innovative initiative for senior leaders that facilitated experiential learning through the event on the Arabian Sea. We advanced digital preparedness across corporate teams by conducting targeted capability-building interventions. These included digital skills training on tools such as MS Excel, HRMS and MS Teams, aimed at improving functional efficiency across departments.

Diversity and Inclusion

We undertook intentional efforts to embed inclusion across the employee lifecycle- from recruitment and onboarding to leadership development. We introduced a bias-free recruitment training for all interviewers to ensure fair and equal evaluation. In addition, we conducted sensitisation workshops aimed at promoting inclusive leadership and team behaviour across levels.

One of the crucial milestones of the year included our achievement of 30% gender diversity within our R&D and corporate functions. This is a result of focused hiring from Tier-2/3 cities and a wider talent pool encompassing candidates from non-pharma backgrounds.

Safety and Well-being

We continued to maintain a strong safety culture by consistently reinforcing protocols across our plants and offices. We further introduced refresher training modules to bolster compliance. Our Lost Time Injury Frequency Rate (LTIFR) for FY2024-25 stood at 0.87, positioning us among the best in the industry. All plant personnel underwent mandatory safety training and quarterly mock drills were conducted to sharpen emergency response.

On the wellness front, we organised annual health check-ups for R&D and manufacturing personnel and extended comprehensive hospitalisation and accident insurance, along with buffer coverage for medical emergencies. We also introduced ‘Life and Breath’, a structured employee wellness programme delivered in collaboration with Pratibimb Charitable Trust, across all levels of the organisation.

To further strengthen our commitment to a respectful and inclusive workplace, we conducted an organisation-wide POSH (Prevention of Sexual Harassment) survey. This initiative aimed to assess awareness, comfort levels and opportunities to improve sensitisation and ensure a safe, equitable environment for all employees. all

Employee Engagement

We focused on deepening cultural connect and promoting a sense of belonging across our workforce through various engagement initiatives. Our annual M2M Day celebration served as a platform to recognise contributions, promote camaraderie and celebrate milestones.

We encouraged internal job movements, strengthened our employee referral programme, and created informal feedback loops between leadership and teams to ensure every voice was heard. These efforts collectively contributed to enhanced collaboration, improved productivity and a more robust internal talent pipeline.

We celebrated key festivals and national events such as Gudi Padwa, Ganesh Utsav, Diwali, Republic Day, Women’s Day and Holi across locations to strengthen cultural inclusivity. Our annual cricket tournament, long service award ceremony and recreational celebrations further enriched employee experience and promoted team spirit.

Environment, Social and Governance (ESG) Committee

Our ESG Committee plays a pivotal role in shaping our sustainability agenda and embedding ESG considerations into our long-term strategy. It provides a focused platform to evaluate priorities, review progress and identify opportunities for continuous improvement.

Beyond compliance, the Committee provides strategic guidance on issues such as climate change, environmental impact, employee safety, social responsibility and operational risks. It also engages with stakeholders to align sustainability initiatives with evolving expectations and global best practices.

By working closely with other Board Committees, the ESG Committee ensures that key ESG risks are effectively monitored and addressed, while progress on sustainability objectives is regularly reviewed at the Board level. These actions reinforce our dedication to sustainable growth, responsible practices and long-term value creation.

Our Policies

We have established a robust governance framework supported by comprehensive policies and a Code of Conduct. These policies promote transparency, ethical behaviour and adherence to applicable laws and regulations. They reflect our core values and serve as guiding principles for both employees and Directors in all aspects of decision-making and business conduct.

Ethics and Compliance

We are committed to upholding the highest standards of ethics and integrity. Compliance with legal and regulatory requirements remains a top priority and integrity continues to be central to all stakeholder relationships. By embedding these values into our operations, we aim to build trust and ensure sustainable growth.

Risk Management

We adopt a structured and forward-looking approach to risk management. We have instituted a robust risk management framework designed to identify, assess and mitigate risks across our operations. These encompass strategic, operational, financial and compliance risks, along with emerging concerns, such as cybersecurity, supply chain vulnerabilities and ESG-related challenges. We ensure that all critical risks are mapped to actionable mitigation plans and are integrated within our broader business continuity framework, helping us stay prepared, resilient and forward-looking in a dynamic business landscape.

Governance

Global Standards, Ethical Foundations

At FDC, we regard governance as the bedrock of sustained performance, ethical conduct and stakeholder trust. Our governance architecture is built on the foundation of transparency, integrity, accountability and stringent regulatory oversight and compliance. Under the guidance of an experienced and diverse Board, we continue to uphold sound decision-making and risk management practices to deliver long-term value.

Board Structure

Board Committees

To facilitate effective oversight and informed decision-making, FDC has constituted specialised committees of the Board. Comprising seasoned and independent members, these committees are instrumental in guiding our strategy, maintaining oversight on critical functions and upholding the Company’s commitment to strong and ethical governance.

Audit Committee	Maintains oversight on the integrity of financial reporting, reviews the effectiveness of internal control systems, monitors statutory and internal audits and ensures the independence and performance of auditors.
Nomination and Remuneration Committee	Oversees Board appointments, performance evaluation and leadership compensation.
Stakeholders Relationship Committee	Monitors investor relations and oversees the resolution of shareholder grievances, including issues related to transfers, dematerialisation, dividends and communication.
Risk Management Committee	Identifies and monitors key business and ESG-related risks, including continuity planning.
Corporate Social Responsibility Committee	Frames and monitors the CSR policy, recommends project spends and evaluates the impact of CSR initiatives in line with Schedule VII of the Companies Act, 2013.