MPS Pharmaa Ltd Management Discussions

Management Discussion and Analysis Report

Industry Structure and Development and Market Size

The Indian pharmaceutical industry is experiencing robust growth, with projections indicating a significant expansion in the coming years. The industry is expected to reach $65 billion by 2024, double to $130 billion by 2030, and further increase to $450 billion by 2047, according to reports. This growth is fueled by strong domestic manufacturing, increasing exports, and a thriving biotechnology sector.

India is the largest provider of generic drugs globally and is known for its affordable vaccines and generic medications. The Indian Pharmaceutical industry is currently ranked third in pharmaceutical production by volume after evolving over time into a thriving industry growing at a CAGR of 9.43% since the past nine years. Generic drugs, over-the-counter medications, bulk drugs, vaccines, contract research & manufacturing, biosimilars, and biologics are some of the major segments of the Indian pharma industry. India has highest number of pharmaceutical manufacturing facilities that comply with the US Food and Drug Administration (USFDA) and has 500 API producers that make for around 8% of the worldwide API market.

Indian pharmaceutical sector supplies over 50% of global demand for various vaccines, 40% of generic demand in the US and 25% of all medicine in the UK. The domestic pharmaceutical industry includes a network of 3,000 drug companies and ~10,500 manufacturing units. India enjoys an important position in the global pharmaceuticals sector. The country also has a large pool of scientists and engineers with a potential to steer the industry ahead to greater heights.

Presently, over 80% of the antiretroviral drugs used globally to combat AIDS (Acquired Immune Deficiency Syndrome) are supplied by Indian pharmaceutical firms. India is rightfully known as the "pharmacy of the world" due to the low cost and high quality of its medicines.

Indian pharmaceutical industry is known for its generic medicines and low-cost vaccines globally. Transformed over the years as a vibrant sector, presently Indian Pharma ranks third in pharmaceutical production by volume. The Pharmaceutical industry in India is the third largest in the world in terms of volume and 14th largest in terms of value. The Pharma sector currently contributes to around 1.72% of the countrys GDP.

Market Size

Market size of India pharmaceuticals industry is expected to reach US$ 65 billion by 2024, ~US$ 130 billion by 2030 and US$ 450 billion market by 2047. According to Government data, the Indian pharmaceutical industry is worth approximately Rs. 4,70,085 crore (US$ 55 billion) with over US$ 25 billion of the value coming from exports. About 20% of the global exports in generic drugs are met by India.

Indian hospital market valued at US$ 98.98 billion in FY23 and projected to grow by 8% CAGR and reached to US$ 193.59 billion by FY32.

India is among the top 12 destinations for biotechnology worldwide and 3rd largest destination for biotechnology in Asia Pacific. The country holds 3-5% of the global biotechnology industry pie. In 2022, Indias bioeconomy was valued at US$ 137 billion and aims to achieve US$ 300 billion mark by 2030.

The pharmaceutical sector targets Rs. 11,08,380 crore (US$ 130 billion) by 2030, while biotechnology aims for Rs. 25,57,800 crore (US$ 300 billion) by the same year.

The biosimilars market in India is estimated to grow at a compounded annual growth rate (CAGR) of 22% to become US$ 12 billion by 2025. This would represent almost 20% of the total pharmaceutical market in India.

India is the 3rd largest producer of API accounting for an 8% share of the Global API Industry. About 500+ different APIs are manufactured in India, and it contributes 57% of APIs to prequalified list of the WHO.

The current market size of the medical devices sector in India is estimated to be US$ 11 billion and its share in the global medical device market is estimated to be 1.5%. The government has set ambitious target to boost the medical devices industry in India, aiming to elevate it from its current US$ 11 billion valuation to US$ 50 billion by 2030.

Indian pharma companies have a substantial share in the prescription market in the US and EU. The largest number of FDA-approved plants outside the US is in India.

Global Market:

• The global pharmaceutical market is estimated to be around USD 1.6 trillion.

• The market is expected to continue growing, with projections reaching USD 2.82 trillion by 2033.

• North America currently holds the largest share of the market.

• Emerging markets like Brazil, China, and India are experiencing rapid growth.

Indian Market:

• Indias pharmaceutical market is valued at USD 50 billion.

• It is the worlds third largest by volume and fourteenth largest by value.

• India accounts for 20% of global exports of generic drugs.

• The Indian market is expected to reach USD 120-130 billion by 2030 and potentially USD 450 billion by 2047.

• India is a major producer of vaccines, with 60% of global production.

• Indian pharmaceutical companies export to over 200 countries, including highly regulated markets.

• The Indian pharmaceutical industry is composed of various segments including generic drugs, OTC medicines, bulk drugs, vaccines, and biosimilars.

EXPORTS

Pharmaceutical is one of the top ten attractive sectors for foreign investment in India. The pharmaceutical exports from India reach more than 200 nations around the world, including highly regulated markets of the USA, West Europe, Japan, and Australia. India supplied around 45 tonnes and 400 million tablets of hydroxychloroquine to around 114 countries globally.

Indias drugs and pharmaceuticals exports stood at Rs. 2,59,658 crore (US$ 30.38 billion) in FY25 and Rs. 2,43,119 crore (US$ 27.82 billion) in FY24.

Indias medical technology industry is poised to reach exports of up to US$ 20 billion (Rs. 1,69,000) by FY30, according to the CII.

Exports of drugs and pharmaceuticals recorded a strong y-o-y growth of 9.7% during April-March FY24. Indias drugs and pharmaceuticals exports stood at US$ 27.82 billion in FY24 (April-March).

Exports of Drugs & Pharmaceuticals were estimated to be at US$ 2.13 billion in January 2024, accounting for 5.8% of the total exports in the month.Indias pharmaceutical exports are also projected to increase, reaching $31 billion in 2024-25.

India is the 12th largest exporter of medical goods in the world. Indian drugs are exported to more than 200 countries in the world, with US being the key market. Generic drugs account for 20% of the global export in terms of volume, making the country the largest provider of generic medicines globally.

The Board of Directors in its meeting held on 02-09-2025 has considered and approved the proposal to diversify into the business of manufacturing of Ayurvedic, Unani, and Homeopathic medicines, drugs, and Nutraceuticals aligning with market trends and consumer demand for natural healthcare solutions and appointed renowned Ayurvedacharya Mr. Kamal Joshi as Senior Consultant (Ayurveda and Alternate Therapy). Mr. Joshi has more than Two decades of rich experience in the field of production, sales, and marketing of Ayurvedic pharmaceuticals and traditional systems of medicines in Nepal and India.

It is envisaged that Mr. Joshis vast experience and expertise will significantly contribute to the Companys diversification and growth in the manufacturing and trading of Ayurvedic drugs and pharmaceuticals, herbal, Unani, nutraceuticals as well as Allopathic drugs.

The outlook for manufacturing Ayurvedic, Unani, Homeopathic medicines, and Nutraceuticals is highly positive, driven by increasing consumer demand for natural and holistic health solutions, government support, and growing global recognition of these traditional systems. The Ayush sector is experiencing significant market expansion, with strong growth projected due to a focus on quality, scientific validation, innovation, and increased export opportunities.

The Ayurveda market industry is expected to grow from USD 9.2 billion in 2023 to USD 26.16 billion by 2032, indicating a compound annual growth rate (CAGR) of 15.10% during the forecast period (2024-2032). Consumer demand for Ayurvedic medicines is driven by market drivers such as increasing awareness of the benefits, increasing awareness of the drawbacks of homeopathy, and increasing access and income. In addition, Ayurvedic product manufacturers can expand their market due to the growing awareness of natural ingredients in health and personal care products in developed countries, including the United States, Canada, Australia, Singapore, and Japan.

The size of the global Ayurveda market is USD 8.85 billion in 2023 and will grow to USD 32.83 billion by 2032, a compound annual growth rate of 15.68%. The market will grow from an estimated worth of USD 9.2 billion in 2023 to USD 26.16 billion by 2032, a compound annual growth rate of 15.10%. The growing awareness and recognition of Ayurvedic remedies as holistic solutions for healthcare issues are likely to accelerate their acceptance on the global level. Also, the increasing trend on the global level toward natural and holistic solutions for healthcare issues has boosted the recognition level of Ayurveda. Product offerings within this market also range from herbal extracts to consulting services for personalized wellness, addressing varying requirements related to health and wellness. Technology has emerged as a key factor in this expansion through ways and means whereby digital platforms offer virtual consultations, AI-powered recommendations, or online access to Ayurvedic products. One also comes across market innovations in the enduring visibility of herbal extracts, progress over Ayurvedic pharmaceuticals, and natural skincare and beauty products within Ayurvedic cosmetics. Ayurvedic nutraceuticals, occupying the gray area between nutrition and medicine, are similarly gaining traction. The Ayurvedic approach of wholism extends very well to todays concerns, especially considering the growing incidence of non-communicable diseases around the world. The acceptance rates are also very high in this regard, which adds further to the impact. The application of artificial intelligence enhances the market potential of Ayurveda through proper trend predictions, personalized wellness plans, and excellent user experience.

Business chambers use artificial intelligence in predictive analytics and also for product efficiency evaluation. These further spawn more novel solutions to related health issues. In short, Ayurveda is expected to continue growing on a promising curve backed by increasing interest worldwide, integration with more advanced technology, and evidence-based practices that generate a harmonizing atmosphere for the collaboration of traditional practitioners and modern science

INVESTMENTS AND RECENT DEVELOPMENTS

The Indian Pharmaceuticals industry plays a prominent role in the global pharmaceuticals industry. India ranks third worldwide for production by volume and 14th by value.

In this regard the sector has seen a lot of investments and developments in the recent past.

• Indian pharmaceutical companies are projected to achieve a revenue growth of 9-11% in FY25. This growth is expected to be fuelled by robust performances in key markets, including the United States, Europe, and emerging regions.

• Indias healthcare sector is projected to reach US$ 320 billion (Rs. 27,28,320 crore) by 2028, according to the latest report by Great Place to Work.

• The pharmaceutical sector targets Rs. 11,08,380 crore (US$ 130 billion) by 2030, while biotechnology aims for Rs. 25,57,800 crore (US$ 300 billion) by the same year.

• The Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) has reached a noteworthy milestone, achieving sales of Rs. 1,000 crore (US$ 119 million) in October 2024.

• Sanofi announced its plans to invest US$ 435 million over the next six years to expand its global capability center (GCC) in Hyderabad, India by increasing the headcount and further developing the facility.

• In the Indian pharmaceutical industry, there were 24 M&A deals announced in Q1 2024, worth a total value of US$ 456.3 million.

• As of 30th June 2024, the Department for Promotion of Industry and Internal Trade (DPIIT) has recognized a total of 1,40,803 entities as startups, of which 2,127 are from the pharmaceutical sector.

• MedGenome has acquired a stake in GenX Diagnostics, a diagnostic lab chain in Odisha. This strategic move combines MedGenomes advanced science and technological capabilities with GenXs diagnostics leadership in the East, empowering clinicians in Odisha.

• In March 2024, Union Minister for Chemicals & Fertilizers and Health & Family Welfare Dr. Mansukh Mandaviya inaugurated 27 greenfield bulk drug park projects and 13 greenfield manufacturing plants for medical devices.

GOVERNMENT INITIATIVES

The Indian government promotes its pharmaceutical industry through key schemes like the Production Linked Incentive (PLI) Scheme for various pharmaceutical products and critical raw materials (KSMs/DIs/APIs), the Scheme for Promotion of Research and Innovation in Pharma MedTech Sector (PRIP), and the Scheme for Strengthening of Pharmaceuticals Industry (SPI) to upgrade labs and fund R&D. Other initiatives include developing Bulk Drug Parks to reduce costs, setting up National Institutes of Pharmaceutical Education and Research (NIPERs), and promoting exports and R&D through various schemes.

Key Government Initiatives

Some of the initiatives taken by the Government to promote the pharmaceutical sector in India are as follows:

• Production Linked Incentive (PLI) Schemes:

The government offers financial incentives to boost domestic manufacturing, reduce import dependence, and increase exports.

• PLI for Pharmaceuticals: Supports the manufacturing of high-value products like biopharmaceuticals, patented drugs, and complex generics.

• PLI for KSMs/DIs/APIs: Aims to reduce reliance on imported raw materials by promoting domestic production of Key Starting Materials, Drug Intermediates, and Active Pharmaceutical Ingredients.

• PLI for Medical Devices: Encourages domestic manufacturing of medical devices such as MRI machines and heart implants.

Scheme for Strengthening of Pharmaceuticals Industry (SPI):

Provides financial assistance to upgrade pharmaceutical labs and conduct R&D, enhancing Indias global competitiveness.

Scheme for Promotion of Research and Innovation in Pharma MedTech Sector (PRIP):

Supports research and innovation by establishing Centers of Excellence at NIPERs and funding private sector research.

Promotion of Bulk Drug Parks:

Aims to establish major pharma manufacturing hubs in states like Gujarat, Himachal Pradesh, and Andhra Pradesh, improving efficiency and reducing production costs.

National Institutes of Pharmaceutical Education and Research (NIPERs):

The government plans to establish new NIPERs and set up various R&D centers to address the gap in pharmaceutical education and training.

National Medical Device Policy, 2023:

Aims to promote orderly growth in the medical device sector, focusing on access, affordability, quality, and innovation.

Pharmaceutical Promotion Development Scheme (PPDS):

Provides financial support for seminars, conferences, and exhibitions to promote exports and investments in the pharmaceutical sector.

Tax Benefits:

The government offers tax breaks for research and development, allowing for weighted tax deductions on R&D expenditure to ease the financial burden on companies.

Factors Influencing Growth of The Industry

The Indian pharmaceutical industry ranks 14th in the world by value of pharmaceutical products. With a well-established domestic manufacturing base and low-cost skilled manpower, India is emerging as a global hubforpharma products and the industry continues to be on a growth trajectory. Moreover, India is significantly ahead in providing chemistry services such as analogue preparation, analytical chemistry, and structural drug design, thereby offering ample scope in contract research and other emerging segments in the pharmaceutical industry. Some of the major factors that would drive growth in the industry are as follows

• Rising Domestic Demand:

Chronic therapies, like those for cardiac, gastrointestinal, and diabetic conditions, are experiencing high growth, fueled by lifestyle changes and an aging population.

• Cost-Effective Generics:

Indias strength in producing affordable generic drugs continues to be a major factor in its global competitiveness.

• Focus on Research and Development:

Companies are investing in R&D, including AI and machine learning, to develop new drugs and improve healthcare access.

• Government Support:

The government is actively working to harmonize regulatory standards, improve compliance, and encourage FDI in the pharmaceutical sector.

• Exports:

Indias pharmaceutical exports are also projected to increase, reaching $31 billion in 2024-25.

Areas of Growth:

• Chronic Therapies:

Cardiac, gastrointestinal, and anti-diabetic therapies are seeing significant growth.

• Over-the-Counter (OTC) Medications:

The OTC market is also expected to grow, driven by self-medication trends and the aging population.

• Biologics and Formulations:

Exports of formulations and biologics are a major component of the industrys growth.

• Digital Integration:

Digital technologies are being increasingly integrated to improve healthcare access and efficiency.

SWOT Analysis of the Industry

Indias pharmaceutical industry, a critical player in the global healthcare market, is poised for tremendous growth in the coming decades. With the market size projected to soar from US$ 50 billion to US$ 450 billion by 2047, the sectors expansion is underpinned by several factors, including strong government support, a burgeoning biotechnology sector, and an increase in healthcare demand. However, alongside these promising prospects, the industry also faces notable challenges and opportunities that will shape its future trajectory. Understanding the strengths, weaknesses, opportunities, and threats (SWOT) of Indias pharmaceutical industry provides valuable insights into its dynamic landscape.

Strengths of the Indian Pharma Sector:

1. Strong government support:- The pharmaceutical sector in India continues to develop with Government initiatives and the involvement of the private sector. The Ministry of Health and Family Welfare has undertaken several steps to ensure drug quality is available in India.

2. Lower production cost- One of the greatest strengths that made India a pioneer in the pharmaceutical industry is its inexpensive labor and supply and low cost of drug output.

3. Widespread usage of IT- Healthcare organizations have started using customized high-end hardware and software for billing, patient scheduling and medical recording. This makes the process faster and more consumer friendly and enables record keeping to be more precise and accurate.

4. Strong interpersonal relationship- In the face of rapidly spiraling prices, hospitals face intense pressure to offer expanded access to high-quality services. Consequently, cost management has been one of the significant challenges for the pharmaceutical industry. Network partnerships that provide ample opportunity to develop partnerships between patients and providers are considered an essential strength of the Indian pharmaceutical industry to maintain SCM and reduce costs.

5. Well developed facilities for growth-The country has well developed chemistry, R & D and manufacturing infrastructure with a proven track record in advanced chemistry capabilities, design of high tech manufacturing facilities and regulatory compliance.

6. Well equipped for drug discovery-India is considered a desirable destination for offshoring of data management functions for clinical trials and also due to its rich biodiversity and strength in Chemistry which are essential for drug discovery.

Weaknesses of the Indian Pharma Sector:

1. Procurement risk- Over the past few years, concerns with the quality of material have drifted, giving rise to batch failures, slowdowns in manufacturing and a shortage of available resources all over the industry.

2. Complex and unequipped distribution network- Interruptions in distribution and inventory scarcities highly affect the supply chain management. The critical factor behind this matter is the highly decentralized distribution system, inadequate warehouses and various drug transport requisites, including the cold storage facilities and the augmentation system.

3. Long lead time-One of the most critical shortcomings of the Indian pharmaceutical SCM is the long lead time. This includes time for new product development, competency acquisition, procurement, manufacturing, delivery, regulative process and cash-to-cash cycle time.

4. Quality issue-Illegally manufactured, diverted, counterfeited, or adulterated products have quicker exposure across the black market to the delivery network. People often buy loose tablets instead of complete strips. As a result, neither barcode solution nor hologram and other methods like this fit here.

The Indian Ministry of Health assessed that 5% of Indias medicines are counterfeit, whereas 0.3% are spurious. In the US$5 billion Indian pharma market, 20% are false medicines.

5. Lack of expert workforce- Indias healthcare industry provides for a growing population, and the business is expected to expand above previously estimated levels of 10-12%. But, recent studies show a massive shortage of qualified healthcare executives and supervisors employed with clinics, pharmaceutical firms, health insurers, third-party management and other healthcare providers.

6. Lack of training facilities- The majority of the pharmaceutical organization did not provide enough training and knowledgesharing programs for their employees. Studies showed that storekeepers did not undergo instruction in stock management.

Opportunities of the Indian Pharma Sector:

1. Increased prevalence of lifestyle-related illnesses- Along with communicable and infectious disorders, there is likely to be a more significant cardiovascular disorder, oncology and diabetes. Due to this rapid population increase, the emergence of both communicable and non-communicable disorders and economic advancement, the demand for pharmaceutical drugs has expanded several folds.

2. The emergence of new technologies in HSCM- The healthcare industry is a knowledge-intensive market. The technology has quickly improved the standards for doing business internationally with the potential to deliver prompt, precise and credible details. The recent advancement of IT has created enormous opportunities to improve SCMs effectiveness and reliability, which includes a cloud-based micro health center.

3. Purchase in alliance- Community partnerships effectively lower healthcare expenses as they minimize the drugs price, particularly medical supplies and pharmaceutical products

4. Wide range of adaptive policies for sustainable inventory management

5. The PSC comprises many supply chain parties, such as principal manufacturing plants etc. and reducing the complexity between these interrelated factors can be of huge advantage by several new policies. One of them is periodically-affine policies, which allow decision-makers to efficiently monitor and regulate large-scale newsvendor networks in the face of volatile demand without needing delivery forecasting.

6. Rise in disposable income- In India, the disposable income is projected to increase for households to INR 200,000 per year, from 14% in 2009-2010 to 26% in 2014-2015. Increased earnings will push 73 million households into the middle class over the next ten years, making healthcare more affordable.

Threats of the Indian Pharma Sector:

1. Varying regulatory requirements across domestic and export markets- Procurement and transferring drug management involved addressing current regulatory frameworks. In India, various laws regulate the flow and sale of medicine around the region, creating complexities for SCM.

2. Increased competition- Over the past five to ten years, several markets have seen steady growth, including China, Germany, Brazil, Italy, etc in the Pharmaceutical industry. Currently, several products with identical characteristics, bioequivalence and price ranges are commercialized by several multinational companies

3. Poor supplier service-In terms of Active Pharmaceutical Ingredients, Indian pharmaceutical companies extensively depend on China. Around 70% of the total raw material is imported from China. Therefore, it creates considerable uncertainty and vulnerability to disruption in the SCM.

4. Uncertainty in demand- The heterogeneity of customers leads to substantial volatility in drug demand. Pharmaceutical settings are typically highly diversified in the real world, with numerous products and decision-making phases. It becomes more crucial for the vendors due to these uncertainties in demand.

Road Ahead

The pharmaceutical industry in India is a significant part of the nations foreign trade and offers lucrative potential for investors. Millions of people around the world receive affordable and inexpensive generic medications from India, which also runs a sizable number of plants that adhere to Good Manufacturing Practices (GMP) standards set by the World Health Organization (WHO) and the United States Food and Drug Administration (USFDA). Among nations that produce pharmaceuticals, India has long held the top spot. Medicine spending in India is projected to grow 9-12% over the next five years, leading India to become one of the top 10 countries in terms of medicine spending. Going forward, better growth in domestic sales would also depend on the ability of companies to align their product portfolio towards chronic therapies for diseases such as such as cardiovascular, anti-diabetes, anti-depressants and anti-cancers, which are on the rise. The Indian Government has taken many steps to reduce costs and bring down healthcare expenses. The National Health Protection Scheme, which aims to offer universal healthcare, the ageing population, the rise in chronic diseases, and other government programmes, including the opening of pharmacies that offer inexpensive generic medications, should all contribute to boost the Indian pharmaceutical industry. Speedy introduction of generic drugs into the market has remained in focus and is expected to benefit the Indian pharmaceutical companies. In addition, the thrust on rural health programmes, lifesaving drugs and preventive vaccines also augurs well for the pharmaceutical companies.

The Indian pharmaceutical industry is poised for strong growth between 2025 and 2026, with projections indicating a 9-11% revenue increase for Indian companies, driven by both domestic and international markets according to a market analysis by Mint. This growth will be fueled by several factors, including an expanding domestic market, increased focus on R&D and manufacturing, and supportive government policies says IBEF.

Key Trends and Factors Driving Growth:

• Strong Domestic Demand:

The Indian pharmaceutical market is expected to reach ^2.38 lakh crore (approximately $29 billion USD) in 2025, with a robust growth rate of 8.2%. This growth is driven by factors like an aging population, increasing prevalence of chronic diseases, and government initiatives promoting healthcare access says D.S.T.S. Mandals College Of Pharmacy, Solapur.

• Expansion in Chronic Therapies:

Indian companies are expected to align their product portfolios towards therapies for chronic diseases such as cardiovascular, diabetes, and cancer, which are on the rise according to a market analysis by D.S.T.S. Mandals College Of Pharmacy, Solapur.

• Government Support:

The Indian government is actively supporting the industry through various schemes like the "Strengthening of Pharmaceutical Industry (SPI)" scheme and the Production Linked Incentive (PLI) scheme. These initiatives aim to boost domestic manufacturing, enhance quality and sustainability, and encourage investments says LinkedIn.

• Focus on R&D and Innovation:

The industry is seeing increased investments in research and development, particularly in areas like biotechnology and biosimilars.

• Strengthening API Production:

Efforts to reduce import dependence on APIs (Active Pharmaceutical Ingredients) are gaining momentum, with government incentives aimed at boosting domestic production.

• Global Market Opportunities:

Indian pharmaceutical companies are well-positioned to capitalize on opportunities in major markets like the United States and Europe, as well as emerging countries.

The Board of Directors in its meeting held on 02-09-2025 has considered and approved the proposal to diversify into the business of manufacturing of Ayurvedic, Unani, and Homeopathic medicines, drugs, and Nutraceuticals aligning with market trends and consumer demand for natural healthcare solutions and appointed renowned Ayurvedacharya Mr. Kamal Joshi as Senior Consultant (Ayurveda and Alternate Therapy). Mr. Joshi has more than Two decades of rich experience in the field of production, sales, and marketing of Ayurvedic pharmaceuticals and traditional systems of medicines in Nepal and India.

It is envisaged that Mr. Joshis vast experience and expertise will significantly contribute to the Companys diversification and growth in the manufacturing and trading of Ayurvedic drugs and pharmaceuticals, herbal, Unani, nutraceuticals as well as Allopathic drugs.

The outlook for manufacturing Ayurvedic, Unani, Homeopathic medicines, and Nutraceuticals is highly positive, driven by increasing consumer demand for natural and holistic health solutions, government support, and growing global recognition of these traditional systems. The Ayush sector is experiencing significant market expansion, with strong growth projected due to a focus on quality, scientific validation, innovation, and increased export opportunities.

The Ayurveda market industry is expected to grow from USD 9.2 billion in 2023 to USD 26.16 billion by 2032, indicating a compound annual growth rate (CAGR) of 15.10% during the forecast period (2024-2032). Consumer demand for Ayurvedic medicines is driven by market drivers such as increasing awareness of the benefits, increasing awareness of the drawbacks of homeopathy, and increasing access and income. In addition, Ayurvedic product manufacturers can expand their market due to the growing awareness of natural ingredients in health and personal care products in developed countries, including the United States, Canada, Australia, Singapore, and Japan.

Outlook

The Indian pharmaceutical industry is poised for strong growth in 2025-26, driven by increasing demand, government initiatives, and a focus on innovation, with projected revenue growth of around 7.8% in the April 2025 fiscal year. Key factors supporting this outlook include a large base of USFDA-approved plants, a robust generics market, growing biotechnology sector, and increasing investment in contract research and development (CRDMO) and manufacturing. However, the industry must address challenges such as high healthcare costs, complex regulations, and the need to strengthen its R&D and innovation capabilities to maintain its global leadership.

Indian Pharma industry could grow to USD 120-130 billion by 2030. Accelerated growth in India driven by increased accessibility and affordability. Potential breakthroughs in next generation innovative products. Strong growth in the US market by driving higher ANDA share in molecules going off patent, and potential ease in price erosion. Increased growth in large underpenetrated markets such as Japan and China 7-8% & 11-12%.Accelerate the goal of universal health care across India and the world by providing access to high-quality affordable drugs. Keeping in line with the Government of Indias vision of providing universal healthcare for India, the industry can support this goal by providing access to quality medicines at affordable prices. In India, as more and more patients come under treatment, this could help reduce the disease burden substantially. The aspiration could be to make the DALY (Disability Adjusted Life Years) in India and other emerging markets comparable to the developed economies such as the US and UK by 2030 (currently Indias DALY is 72 percent higher than Chinas14). Emerge as an innovation leader to build a globally recognized position for India.

We believe the industry can aspire to build a strong innovation pipeline (with three to five new molecular entities launched or in late clinical trial phases and 10-12 incremental innovation launches per year by 2030) and enhance Indian pharmas significance beyond generics, to biologics, new drug development and incremental innovations. The Indian pharmaceutical industry can aspire to become the worlds largest supplier of drugs by volume. This can be achieved by establishing a leadership position in the US generics space, focusing on building one to two home markets outside India, and developing a strong presence in all large markets such as Japan and China. Contribute significantly to the growth of the Indian economy: The Indian pharmaceutical industry can contribute substantially to the growth of the Indian economy. The industry can aspire to push the net foreign exchange earnings to around USD 30 billion to 40 billion annually by 2030 from current levels of USD 11 billion15. The industry can also create one to two million16 additional jobs for the country in the same period, boosting consumption in the local economy. Achieving these four goals will mean Indian pharmaceutical industry can improve its global market share to 7.0% by 2030 from current market share of 3.6% by value. It will also mean Indian pharmaceutical market will break into top 5 markets in the world from its current ranking of 11th market by value.

The Indian pharmaceuticals market is the 3rd largest in terms of volume and 13th largest in terms of value, as per a report by Equity Master. India is the largest provider of generic medicines globally with the Indian generics accounting for 20 percent of global exports in terms of volume. Of late, consolidation has become an important characteristic of the Indian pharmaceutical market as the industry is highly fragmented.

India enjoys an important position in the global pharmaceuticals sector. The country also has a large pool of scientists and engineers who have the potential to steer the industry ahead to an even higher level. Presently over 80 percent of the antiretroviral medicines used globally to combat AIDS (Acquired Immuno Deficiency Syndrome) are supplied by Indian pharmaceutical firms.

Indias biotechnology industry comprising bio-pharmaceuticals, bio-services, bio-agriculture, bio-industry, and bioinformatics is expected to grow at an average growth rate of around 30 percent a year and reach US$ 100 billion by 2025.

The Indian pharmaceutical market size is expected to grow to US$ 100 billion by 2025, driven by increasing consumer spending, rapid urbanization, and raising healthcare insurance among others.

Going forward, better growth in domestic sales would also depend on the ability of companies to align their product portfolio towards chronic therapies for diseases such as cardiovascular, anti-diabetes, anti-depressants and anti-cancers that are on the rise.

The Indian government has taken many steps to reduce costs and bring down healthcare expenses. Speedy introduction of generic medicines into the market has remained in focus and is expected to benefit the Indian pharmaceutical companies. In addition, the thrust on rural health programs, lifesaving medicines, and preventive vaccines also augurs well for the pharmaceutical companies.

The outlook for manufacturing Ayurvedic, Unani, Homeopathic medicines, and Nutraceuticals is highly positive, driven by increasing consumer demand for natural and holistic health solutions, government support, and growing global recognition of these traditional systems. The Ayush sector is experiencing significant market expansion, with strong growth projected due to a focus on quality, scientific validation, innovation, and increased export opportunities.

Overall growth outlook for the Indian drugs and pharmaceutical industry appears positive.

Segment Wise Performance

The Company is into single reportable segment only.

Internal Control System

The Company has laid down internal financial controls to be followed by the Company and such policies and procedures adopted by the Company for ensuring the orderly and efficient conduct of its business, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information.

The Company has also laid down an adequate system for legal compliances. It has created appropriate structures with proper delegations of duties and responsibilities of employees at each level on enterprise basis which ensures the proper adherence and compliance of such systems.

Both the Internal Financial Control and Enterprise Legal Compliance System are subject to review by the Management in respect of their adequacy and operative effectiveness which in turn are also reviewed by the Internal Auditors, Statutory Auditors and Audit Committee. Finally, the Board of Directors of the Company also review and take note of them.

Human Resources

Human resource is considered as key to the future growth strategy of the Company and looks upon to focus its efforts to further align human resource policies and processes to meet its business needs. The Company aims to develop the potential of every individual associated with the Company as a part of its business goal. Respecting the experienced and mentoring the young talent has been the bedrock for the Companys growth.

Human resources are the principal drivers of change. They push the levers that take futuristic businesses to the next level of excellence and achievement.

Cautionary Statement

Investors are cautioned that this discussion contains statements that involve risks and uncertainties. Words like anticipate, believe, estimate intend, will, expect and other similar expressions are intended to identify "Forward Looking Statements". The company assumes no responsibility to amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events. Actual results could differ materially from those expressed or implied. Important factors that could make the difference to the Companys operations include cyclical demand and pricing in the Companys principal markets, changes in Government Regulations, tax regimes, economic developments within India and other incidental factors.

	For and on Behalf of the Boardof Directors of
	MPS Pharmaa Limited
	(Formerly Advik Laboratories Limited)
	Sd/-
	(Peeyush Kumar Aggarwal)
Date : 02nd September, 2025	Chairman
Place: New Delhi	DIN :00090423