ganga pharmaceuticals ltd share price Management discussions

This report covers the operations and financial performance of the Company for the year ended 31st March, 2023 and forms part of the Annual Report.

Post Covid, the year witnessed a highly dynamic situation of our Country. India must be consistent in regaining its position as a leading emerging market investment destination. This can only be possible if consistency and clarity is in our policies. Basically, India is experiencing a difficult economic situation on the growth, asset quality, inflation and fiscal deficit fronts. Growth estimation graph shows bottomward trends but recovery is predicated upon clarity of policy matters and decision making by the Government. Both of the factors are out of the control of private enterprises. The past year has been a challenging year for our Industry with lots of ups and downs.

In spite of the above, Company has been able to maintain its steady performance during the year under review. Your Companys performance for the year 2022-23 has to be viewed in the context of aforesaid economic and market environment.

INDUSTRY STRUCTURE AND DEVELOPMENT

Consumers across the globe are reaffirming their trust in nature. In India too, this trend is gaining pace with a growing number of consumers embracing products made from natural ingredients. This is leading to resurgence in Ayurveda and preference for products derived from this traditional system of health and wellness.

Ayurveda is generally understood as ‘Science of life translating ‘Ayuh (r) as life and ‘Veda as science. It is an ancient system of life dating back almost 5,000 years and is also the oldest surviving medical system in the world. Ganga is associated with Ayurveda since its inception. The Company has been focusing on its Ayurvedic heritage to cater to the ever-changing needs of its consumers and introduce products leveraging its over-a-century old experience in this area.

As the custodian of Ayurveda and Science-based Ayurveda expert, Ganga has been investing behind validating the benefits of Ayurveda and Ayurvedic ingredients and products through a series of scientific interventions. Modern day science has been infused into this traditional knowledge to generate evidence and support for the claims made on our products. Ayurveda is the core philosophy on which our product portfolio is built.

The Indian Economy is on a steady growth trajectory despite of slowdown in globe and Indias Consumer Price Inflation eased to a lower-than expected from a year ago, helped by a fall in food prices.

However, flat corporate performance, fiscal pressure from implementing the seventh pay commission recommendations and a potential increase in oil prices in the coming year would be risk factors for the Economy.

The government has renewed focus on farmers with an aim to raise their incomes significantly in the next 5 years, coupled with plans to improve connectivity from farm to market, fast tracking irrigation projects, enhancing allocation towards agriculture, crop insurance scheme and increase in MSP for crops. These steps will help millions of farmers recover from the rough patch they have been going through and go a long way in boosting confidence and fuelling consumption in rural India.

To win in this new reality, Ganga has put in place a host of initiatives that aim not just to capture the Ayurvedic trend, expand the Companys presence across geographies but also create a whole new portfolio of products that cater to the evolving needs of its consumers.

Till a few years back, fitness, in general, was not a high priority for most people in India. But times are changing. Today, there is a growing consciousness about health-related issues among people, giving a boost to preventive health checkups. There is also a steady increase in the number of people adopting healthier practices in their daily lifestyle. India is blessed with a healing habitat, drawing medicinal values and cures through the age-old science that is known as Ayurveda. It is a unique blend of science, logical reasoning and understanding that delivers Natures way of curing many an ailment – not just age-old ones but even the modern, lifestyle diseases.

Targeting this new trend and generation, Ganga has been rolling out a number of products to address their health-related queries and a healthyLifestyle.

Ganga has developed into full spectrum Ayurveda Company, encompass sing academies, herbal products, clinics and research. Over the last 34 years and constantly endeavored to deliver authentic Ayurveda to the India through its chain of distribution network.

Business Review:

The business review has been dealt in the Directors Report forming part of this Annual Report.

Future Outlook

Under the "Make in India" initiative for Ayurveda and wellness industry, a scheme has been envisaged for the development of AYUSH clusters, for creating a Common Facility Centre for standardization, quality assurance and control, productivity, marketing, infrastructure and capacity- building through a cluster-based approach.

The National Rural Health Mission has a declared policy of promoting ‘Pluralistic Healthcare by involving, alongside the allopathic system, the AYUSH systems, including local health traditions in its operational mission. 100% FDI is being permitted in the Ayush Sectors.

The Company strategy for long-term profitability is to scale up its core business of authentic Ayurveda with increased focus on customers at is faction. The Company has large distribution channels across India and has made human clinical trials for some of its new formulations. The following are some of the key business strategies of GPL;

• Develop products and technology platform for the unmet medical need that add meaningful value

• Provide customer centric services to build deep and long-lasting customer relationship

• Concentrate on the domestic market to tap the potential demand for Ayurveda preparations across India

• Investment in new product distribution networks

Strengths:

We believe that following are our competitive strengths

• Strong R & D Capability and network fully integrated manufacturing facility to manufacture both classical and proprietary

• Ayurveda formulations in the most hygienic and strict adherence to prescribed norms

• Competent and experienced team of experts for the standardization of treatments

• Well established distribution centers

• Developing a range of Herbal additives

Challenges:

• Major challenges for Ayurveda industry are regulatory concerns, consumer perceptions and competition. The regulatory agencies all over the world are focusing on the Quality, efficacy, safety and standardization of herbal medicines.

Internal Control System:

Ganga has in place a well-defined organizational structure and adequate internal controls for efficient operations. The team has in place internal policies, and is cognizant of applicable laws and regulations particularly those related to protection of resources and assets, and the accurate reporting of financial transactions.

The Company continually upgrades these systems. The audit findings are reviewed by the audit committee. Cautionary Statement

The statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectations may be treated as ‘forward looking statements within the meaning of applicable laws andregulations.

The success in realizing these goals depends on various factors, both internal and external Therefore; the investors are requested to make their ownindependent judgments by taking into account all relevant factors before taking any investment decision.