Ganga Pharmaceuticals Ltd Management Discussions

This Management Discussion and Analysis (MD&A) report outlines Ganga Pharmaceutical Limiteds (GPL) strategic positioning within a rapidly expanding Indian Ayurvedic market, driven by strong post-pandemic wellness demand, digital adoption, and supportive government policy.

Economic Overview:

The economy is showing signs of recovery. Despite high inflation and ongoing geological tension, now it seems that inflation has reached or nearing to its peak. Emerging Market and Developing Economies (EMDEs) are on average stronger than for Advanced Economies. EMDEs.

Indian Economy:

The Indian economy has shown resilience to external shocks and surpassed the United Kingdom to become the fifth-largest economy in the world. Despite strong global headwinds, India remains the fastest-growing major economy. Further, due to increasing disposable income levels, there is a surge in household consumption in both urban and rural regions, boosting the demand across sectors. The economic growth will be supported by a conducive domestic policy environment, robust domestic consumption, abating of inflation, thrust on domestic manufacturing and infrastructure development, improvement in capacity utilisation, and revival in credit growth among others. Supportive policies such as the production-linked incentives (PLI) schemes.

Indian Ayurvedic and Wellness Industry:

Ayurveda is ancient healing practices and a big part of the Indian healthcare and wellness industry. Now Ayurveda is being adopted by cultures globally for its preventive healthcare properties and treatment of many chronic lifestyle diseases. Multiple factors are driving the Ayurveda market. After the pandemic, a tremendous growth in Ayurvedic-based solutions has been observed. The increasing popularity of Ayurvedic products as a safe and healthy alternative to synthetic chemicals and pharmaceutical. Now Ayurvedic products are easily available through online and offline distribution channels which propelling the market growth in India. The Indian Ayurveda and wellness industries are closely associated and has tremendous growth potential. The government is undertaking many initiatives to support the Ayurveda industry. The government endeavours to integrate the AYUSH system viz. Ayurveda, Yoga and Naturopathy, Unani, Siddha, Sowa-Rigpa and Homeopathy into the National Health ecosystem and modern medical practice to provide holistic, safe and effective healthcare. The Ministry of Ayush has a mandate to develop Ayush systems and promote the countrys indigenous alternative medicines. The growing popularity of Ayurvedic and alternative medicines and their adoption in mainstream healthcare is expected to propel the growth of the Ayurvedic products market in the coming years.

Opportunities and Threats

Opportunities

Opportunities- Government initiatives: The government has undertaken several initiatives to promote wellness, Ayurveda, yoga and other systems in India as well as in the international markets aimed at making India a hub of medical tourism.- Medical and Wellness Tourism: Medical and wellness tourism are key growth drivers for Ayurveda in India. India has emerged as an attractive destination for yoga and wellness with its focus on traditional therapies.- Ayurveda as alternative medicine: Ayurveda has become increasingly popular in India and around the world, and has experienced significant demand post COVID.- Insurance coverage: The Insurance Regulatory and Development Authority of India (IRDAI) has made it mandatory for health insurance providers to offer Ayush treatment as part of their coverage and the expenses incurred on treatment under AYUSH o Increasing use of digital platforms for marketing and distribution.- Digital Scale: Leveraging e-commerce platforms and digital marketing to expand distribution networks

Threats

Threats- Perception of trust deficit in Ayurveda due to a lack of awareness and the diminished evidence-based quality of treatments.- Shortage of trained and qualified Ayurvedic practitioners in India.- Lack of vibrant ecosystem for evidence-based research in Ayurveda.- Largely unregulated, and hence has concerns quality and authenticity of Ayurvedic treatments.- The mainstream narrative that Ayurvedic remedies are slow to heal acute or chronic conditions.

Company overview and its operational performance

Company overview and its operational performance Over the years, the Company has established itself over various states. The Company currently has a presence in the state Maharashtra, Karnataka, West Bengal and Orissa. It is now foraying the states of India. In a recent, the Companys products are available on various major e-portal. Over a period, the Company has developed a reasonable R&D facility and fully integrated manufacturing facility to manufacture ayurvedic formulations in the most hygienic condition and with strict adherence to prescribed norms.

During the year under review, the operational metrics reflected muted growth across. The successful integration of products across prominent digital e-portals has improved market penetration beyond traditional strongholds. Efficiencies derived from our centralized manufacturing unit helped balance supply chain inflation and raw material price pressures. Detailed breakdowns of operational expenditure, margins, and bottom-line parameters are included separately in the Boards Report forming part of this Annual Report.

Key Strengths:

The Company strategy for long-term profitability is to scale up its core business of authentic Ayurveda with increased focus on customers at its faction. The Company has large distribution channels across India for its products. The following are some of the key business strategies of GPL o 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

Risk & Concerns:

For Ayurveda industry major risks are regulatory concern, consumer perceptions and competition. The regulatory agencies all over the world are focusing on the Quality, efficacy, safety and standardization of herbal medicines. The Company has an efficient Risk Management framework in place for the timely identification, assessment and mitigation of key business.

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.

Human Resources and Industrial Relations:

Human resources are most valuable and integral part for growth of any business and the Company considers its professional capital as its primary asset for long-term value creation. In FY 2025-26, Ganga focused on skill development programs, technical training, and clinical compliance workshops to keep its production and R&D teams aligned with modern manufacturing standards. Employee relations remained harmonious and productive throughout the fiscal year. The total count of permanent employees stands stable, reflecting low attrition rates and high institutional alignment

Outlook:

The ayurveda industries are expected to have a health growth in the coming years primarily due rising demand for natural and herbal products, the governments support and increase in Going forward, Ayurvedic will play a key role in preventing and removing the root cause of chronic health issues. The Company is well-positioned to capitalise on the huge opportunity in the market. It is consistently investing in manufacturing facilities and marketing activities to strengthen brand awareness. The Company is believing that its brand, quality products, and domain expertise will help in long term to continue to grow and capture new markets.

Company is structurally well-positioned to capitalize on the Indian Ayurvedic markets secular growth curve. Having built a solid presence across Maharashtra, Karnataka, West Bengal, and Orissa, the Company is actively expanding its geographic footprint into untapped states while deepening its e-commerce reach.

Going forward, the Company will focus on investing in its core manufacturing capabilities, scaling targeted brand awareness campaigns, and developing value-added formulations for unmet medical needs. Backed by strong brand equity, standardized facilities, and domain expertise, the management remains highly confident in its ability to drive sustainable value for shareholders over the long term.

Cautionary Statement:

Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, or expectations may constitute "forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied due to macroeconomic conditions, government policies, regulatory changes, and other unforeseen market forces.

Srijna Sharma

Whole-Time Director

DIN: 00078169