Kopran Ltd Management Discussions

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Developing economies such as India, China and Brazil are emerging as major players in the pharmaceutical industry as a result of expanding healthcare demands and urbanisation. Government initiatives, including Indias PLI Scheme, are reducing import dependency and enhancing local production. These emerging markets offer significant growth opportunities for pharmaceutical firms.

Strong policy backing is reinforcing Indias pharmaceutical growth. Ayushman Bharat is expanding access to affordable healthcare. The Product Linked Incentive (PLI) scheme incentivises manufacturing of key pharmaceutical ingredients, reduces dependency on imports and enhances

The PLI scheme has boosted Indias pharmaceutical sector, making it the third-largest pharmaceutical producer globally by volume. Exports now constitute 50% of output and local manufacturing of key bulk drugs like Penicillin G has cut import dependence. The initiative has facilitated technology transfer in advanced medical devices to promote domestic production.

PRIP encourages collaboration between industry and academia and enables the development of new molecules, biologics, biosimilars and complex generics. It aims to boost R&D activities and stimulates innovation-led growth, enhancing Indias leadership in pharmaceutical innovation.

This programme is aimed at establishing specialised parks with advanced infrastructure to facilitate manufacturing of pharmaceuticals and medical devices. Such facilities reduce manufacturing cost, enhance quality and generate scale efficiencies.

local production capacity. These policies make India a globally competitive and innovation-driven pharmaceutical hub.

Integration of technologies such as artificial intelligence (AI), machine learning and digital therapeutics is revolutionising drug discovery and patient care. These tools enhance R&D efficiency, optimise clinical trials and reduce manufacturing costs.

The global rise in chronic conditions such as diabetes, cardiovascular diseases and cancer necessitates the development and production of effective medications. This trend significantly boosts the demand for APIs and diagnostic tools essential for disease treatment.

This renewed plan offers funds to upgrade pharmaceutical plant facilities to WHO-GMP standards. It ensures compliance to global standards, enhances export potential and upholds safety standards.

The PMBJP continued to expand access to affordable quality generic medicines through an increasing network of Janaushadhi Kendras across India. This initiative supports the pharmaceutical sectors role in making public healthcare affordable and accessible.

The scheme promotes local manufacturing through tax breaks, simplified regulations and prioritisation of domestic products in public procurement.

Indias pharmaceutical sector is poised for substantial growth fuelled by its global dominance in providing affordable, high-quality generics to nearly 200 nations. A robust domestic infrastructure, comprising thousands of production facilities and a large, skilled workforce, supports this strength. Programmes such as the PLI scheme drives advanced manufacturing and innovation. Increasing R&D investments in biosimilars and complex generics, along with collaborations with global pharmaceutical leaders and investments in technology, are positioning India for a future of advanced and resilient healthcare solutions.

Kopran Limited is an Indian pharmaceutical company with a fully integrated presence across the pharmaceutical value chain. It operates through manufacturing and marketing of pharmaceutical formulations and Active Pharmaceutical Ingredients (APIs). The Companys manufacturing facilities adhere to stringent global quality standards and hold accreditations from major global regulatory bodies. It exports to over 100+ countries, serving both regulated and non-regulated markets.

The formulations division specialises on oral solid dosage forms, while the API division, operated through its wholly owned subsidiary Kopran Research Laboratories Ltd., is a recognised player in key products such as Atenolol and Sterile Carbapenems.

Kopran Limiteds formulations division focuses on developing and manufacturing over 100 oral solid dosages and dry powder formulations, exclusively for export markets. Its portfolio includes both Penicillin-based (e.g., Amoxycillin, Ampicillin) and Non-Penicillin-based products such as macrolides, cardiovascular drugs, anti-diabetics and Central Nervous System (CNS) stimulants. Manufacturing takes place at its globally accredited facility in Khopoli, Maharashtra.

The formulations segment is expected to sustain its growth trajectory by leveraging its strong regulatory track record and expanding its presence in both regulated and emerging markets. The Companys focus on automating packing lines, optimising operational costs and introducing new products tailored to international standards, positions it well to meet the evolving needs of global customers.

The API division develops, manufactures and markets a wide range of APIs and advanced intermediates. It leads in Atenolol and is a key player in sterile carbapenems. The portfolio spans cephalosporins, macrolides, anti-hypertensives and neuromodulators. Operating from its advanced facility in MIDC Mahad, Maharashtra, Kopran has commercialised 26 APIs, catering to both domestic and global regulated and non-regulated markets. The Company has been successfully inspected by Health Canada and US FDA. The Company has been filing Drug Master Files with various international agencies further reflecting the Companys commitment to providing quality products.

API segment is positioned for strong growth, driven by investments in R&D for niche APIs, capacity expansion reduced reliance on Chinese imports, commissioning of the new Panoli API and strengthening of R&D facility and maintaining regulatory compliance. These strategic initiatives will reinforce the global competitiveness, especially in regulated markets.

The company is tapping into Indias expanding diagnostic sector, driven by rising healthcare awareness and demand. This strategic entry positions it for long-term revenue growth and market share gains.

Diversifying into high-potential segments like immunology, urinalysis, and blood banking broadens the diagnostic portfolio. This enhances product relevance and opens new evenue streams. r

In-house production of diagnostic kits can significantly reduce costs and improve gross margins. It also offers better control over quality and supply chain resilience.

Rising participation in government and institutional tenders is boosting order visibility and business stability. These contracts ensure steady volumes and strengthen the companys public sector footprint.

Maintaining strict compliance with diverse international regulatory standards can be challenging and resource-intensive.

Many pharmaceutical companies face a high dependence on imports, especially from countries like China, for key raw materials and intermediates. This exposes operations to supply chain disruptions, price volatility, and geopolitical risks.

Balancing profitability with continuous investments in R&D, capacity expansion, and technology upgrades is complex. Increasing input costs and intense price competition in domestic and export markets can compress margins

* Other expenses do not include Foreign Exchange Gain (Net) of 229.30. **EBITDA does not include other income

*EBITDA does not include other income

Kopran has a robust Risk Management Policy that identifies and assesses probable risks to minimise its impact on the Companys operations and profitability.

He Company is committed to maintaining the highest international quality standards across its manufacturing operations. The Companys facilities strictly adhere to guidelines established by global regulatory authorities. It has implemented a comprehensive quality and safety management system that promotes safe manufacturing practices while ensuring the delivery of superior products. All manufacturing units operate in accordance with Good Manufacturing Practices (GMP), underscoring its focus on quality, excellence and value. The Companys manufacturing hubs have received approvals and recognitions from several regulatory bodies, including the MHRA (UK), TFDA (Tanzania) and MCC (South Africa), among others.

The Companys internal control system is specifically created to fit its size and nature, encouraging a culture of innovation and continuous improvement. The Audit Committee of the Board frequently assesses the systems efficacy in recording transactions, managing assets and reporting. A chartered accounting company conducts independent quarterly internal audits to ensure financial reporting accuracy and compliance with regulatory standards. The Audit Committee thoroughly evaluates the reports submitted by the Internal Auditors. Any issues reported by the Internal and Statutory Auditors are carefully addressed and immediately remedied, indicating the Companys strong commitment reflecting high levels of internal control and corporate governance.

The forward-looking statements in this report adhere to the relevant securities laws and regulations. The actual results and the companys planned results could differ significantly due to several circumstances. Key factors that may have an impact on the Companys performance include domestic and international economic conditions, as well as changes in government policies, tax laws and other regulations.