Poly Medicure Ltd Management Discussions

The global healthcare industry is a vast and rapidly evolving sector, with the market size estimated to surpass $11 trillion in 2024 and projected to grow at a compound CAGR of around 8% over the next decade. This expansion is driven by factors such as an aging population, increasing prevalence of chronic diseases, technological advancements, and rising healthcare expenditure across both developed and emerging markets.

The global medical device industry experienced a compound annual growth rate (CAGR) of 5% from 2019 to 2023, increasing from $446 billion to $545 billion. Looking ahead, the global medical device industry is projected to reach $725-775 billion by 2028, with a CAGR of 5.5-7.5%. This growth will be driven by factors such as an aging population, increasing burden of non-communicable diseases, rising healthcare spending, and growing healthcare spending in developing and middle-income countries. Additional growth drivers include the introduction of new technologies, enhanced healthcare data security, increasing disposable income, and a rising incidence of sedentary lifestyle-related diseases.

Going forward Asia Pacific region is expected to grow reaching 10-15% as the consumption market in this region grows strongly with increase in population, healthcare expenditure and economic output (GDP), while North America is expected to maintain its dominant position.

The Indian healthcare industry is experiencing dynamic growth, with its market size projected to reach approximately $350 billion by 2024, reflecting a CAGR of around 22% over the past few years. This expansion is fuelled by a combination of factors, including a rising middle class, increased health awareness, and significant investments in both infrastructure and technology. The sector is benefiting from advancements and a surge in private healthcare facilities, which complement the governments efforts to improve public health services. Additionally, the growing focus on affordable healthcare and innovations in pharmaceuticals, Medtech and biotechnology are driving further growth, positioning India as a key player in the global healthcare landscape.

Indian medical device sector is estimated at Rs. 900-915 Bn in fiscal 2024

Indian medical devices sector, valued at Rs 900-915 billion in fiscal 2024, comprises more than 14,000 different product types, ranging from wound closure pads to stents. The sector is highly fragmented and is predominantly import driven. Imports account for ~80% of the total market and sales of medical electronics, hospital equipment, surgical instruments, implants and diagnostic reagents. Consumables and disposables are primarily manufactured in India, with imports accounting for ~30-40% of the sales. More than 800 domestic firmsare primarily involved in manufacturing low-technology products. Indian firms are typically small and medium-scale enterprises, manufacturing products such as disposable and medical supplies and competing in low-priced, high-volume segments.

Medical devices industry registered ~12% CAGR between fiscals

2019 and 2024 as public and private healthcare spending rose robustly

The medical devices industry in India grew to Rs 900-915 billion in fiscal 2024 by strong growth in the healthcare industry. The hospital healthcare industry registered 12-14% CAGR during the period, driving growth for the medical devices and equipment industry. The medical devices industry grew because of increased spending on healthcare and expansion of healthcare facilities. Health expenditure increased to

1.9% of the GDP in fiscal 2024 from 1.4% of GDP intelemedicine,digitalhealthrecords, PFCE healthcare spending logged 6% CAGR from fiscals

2024 at constant prices.

Medical consumables and disposables grew as Ayushmaan Bharat helped increase health service penetration in India, aiding to increase the medical procedure and treatments conducted in India. Increase in insurance penetration, medical treatments supported by the PMJAy Ayushmaan Bharat, and usage of technological and medical equipment in public as well private hospitals across rural and urban India also supported the medical devices industry.

Medical devices industry grew at 12-13% in fiscal 2024

The medical devices industry exhibited a flat growth in fiscal2023 as pent up demand due to covid-19 receded and Import of some of the equipment like ventilators reduced. The demand of ventilators and oxygen equipment had grown significantly in fiscal 2021 and

2022 but as covid-19 receded the demand for these equipment have fallen, However, this demand is substituted by x-ray machines, CT scan machines, MRI machines etc. to some extent as surgeries in hospitals return to pre-covid level because of which the industry hasengaged in this industry grown at 12-13% in fiscal 2024 to reach Rs. 900-915 billion.

In the consumables segment too, many of the unorganised players had ventured into production of different consumables. These unorganised players are expected to have been impacted as the demand related to covid-19 receded. In the implants segment the demand remained robust as more surgeries are performed in hospitals across the country. Owing to these factors the total medical devices industry is estimated to have reached Rs. 900-915 billion in fromRs501billion in fiscal 2019 at ~12% CAGR driven fiscal 2024.

Medical devices industry to log 11-12% CAGR over fiscals 2024-

2028

The medical devices industry is expected to log a robust 11-12%

CAGR from fiscals 2024 to 2028 on account of increase in healthcare facilities and demand for healthcare services from the middle-income group. The healthcare delivery market is projected to clock 11-12% growth over the period supporting demand for medical devices and consumables. Rise in per capita income, awareness about health diagnostics, healthcare spend, chronic and non-chronic diseases, and penetration of medical insurance will aid growth of the medical devices industry. With Government of India focus on policy framework and ecosystem support, and the increase in demand of healthcare services in India, Indian medical device industry is expected to grow faster at 11-12% between fiscal 2024 and 2028 than global industry, which is expected to grow at 5.5-6.5% CAGR between Cy 2024 and Cy 2028.

Medical consumables and disposables saw robust rise in demand in the pandemic situation

Medical consumables and disposables segment is valued at 195 billion in fiscal 2024

The segment clocked 13% CAGR from fiscals 2019 to 2024,

With 20-25% share, it is the second largest segment in the medical devices market

Medical consumables saw a flat growth in fiscal 2022 on account of higher base in fiscal growth over fiscal2020 on account of increased demand from pandemic driven sales of PPE kits, masks, gloves and other consumables etc.

In fiscal 2022, as the economy opened up and vaccinations picked up demand for medical consumables like syringes increased and the medical consumables was able to sustain the demand witnessed in the fiscal 2021.

manufacturers who entered In fiscal the market in the pandemic were impacted as covid-19 related demand receded.

In fiscal 2024, growth in the segment was supported by increased focus on preventive healthcare driving the demand for diagnostic tests leading to an increase in the usage of consumables as well as middle class with rising disposable income seeking better healthcare services, driving demand for high-quality medical consumables, Apart from this the segment is expected to be aided by increased usage of consumables and disposables for infection protection and rise in medical procedures and treatments with the penetration of healthcare facilities in India .

Exports contribute to nearly 50-55% of production value

India has an established exports market for production of medical devices, with exports contributing to nearly 50-55% of the production industry size. Exports grew at 14% CAGR, from

Rs 143 billion in fiscal 2019 to Rs 280 billion in fiscal has fairly concentrated exports, with the top countries/regions contributing to ~55%, and exports majorly in the equipment segment.

Growth drivers

Both demand- and supply-side factors are driving growth for the medical device industry in India. While demand-side factors include rising income level and healthcare expenditure, ageing population, increased occurrence of chronic and lifestyle disease, and increased awareness about healthcare diagnostics and prevention, demand for quality healthcare, increase in health insurance; it is the governments focus on ‘Make in India, industry-supportive policies and schemes like production linked incentive(PLI) scheme, potential for import substitution, and shift from geographic concentration of imports from the supply side. Regulation of product pricing and Governments focus on providing cost effective healthcare service in India will lead to higher demand for cost-effective products which will generate demand for locally manufactured products that are distributed at competitive prices. Owing to pricing pressures and supply chain challenges during and post covid-19 pandemic, OEMs are seeking cost-competitive alternatives, which is giving rise to India as an emerging hub for manufacturing of high complexity and medium volume medical devices. This provides opportunity for indigenous medical device manufacturers to upgrade their production facilities and cater to rise in demand for locally manufactured cost effective medical devices.

India is among the fast-growing markets for healthcare and medical devices in the Asia-Pacific. device regulations, setting up of the National Medical Devices Promotion Council, and the governments focus on manufacturing of medical device, there is huge potential for the Indian medical manufacturing industry.

Key government healthcare schemes and programmes under implementation/ announced (Ayushman Bharat, National Health Policy, etc) 2021. Fiscal 2021 saw a huge

Increase in medical insurance penetration - Insurance penetration (premiums as percentage of GDP) in India reached

4% in fiscal 2022 from 2.7% in fiscal 2002. As of fiscal 2023, nearly 550 million people were covered under health insurance as against 288 million in fiscal 2015, increasing

Large senior citizen population of 146 million (60+ years) in

2021 which is expected to reach 171 million by 2026.

Rising urbanisation and adoption of sedentary lifestyles, fuelling chronic diseases.

Change in disease profile: Shift to non-communicable diseases

(lifestyle-related diseases such as heart-related ailments, diabetes, etc).

Investment in nurse training programmes to enhance knowledge of advanced wound care techniques.

Growing number of surgical procedures conducted in India.

Growing medical tourism: Medical tourism has grown at 52%

CAGR from 2020 to 2023, with 65-75% share from neighbouring countries.

Foreign direct investment (FDI) equity inflows in the medical and surgical appliances has increased from 22.0 billion in fiscal 2020 to 39.8 billion in fiscal 2024, at 16% CAGR. 2024. India

Economic growth supporting higher disposable incomes. Rise in per capita income at ~4% in nominal terms from fiscals

2012-24, leading to higher demand for healthcare products and services.

Increased Public Spending in Healthcare - Government of India have set a target for public spending in healthcare which aims to achieve 2.5% of GDP by 2025 from 1.3% in fiscal2018. Also, with rising disposable income there is growing demand for access to quality healthcare.

Increased private investment in Healthcare and Public Private

Partnership (PPP) route for capital expenditure in healthcare supporting penetration of medical facilities.

The Surge of the Indian MedTech Industry: A Bright Future Ahead

The Indian medical technology (MedTech) industry is undergoing a transformative phase, marked by rapid growth and a promising future. This evolution is driven by a confluence of favorable government policies, technological advancements, and increased private investments. As the sector continues to expand, it is poised to become a global leader in healthcare innovation and accessibility.

Government Policies and Initiatives

The Indian government has been instrumental in shaping the MedTech landscape through a series of supportive policies and initiatives. A major development in this area is the Medical Devices Bill, which seeks to establish a comprehensive regulatory framework for medical devices. This bill aims to ensure the safety, efficacy, and quality of medical devices, aligning Indian standards with international norms. By enhancing regulatory clarity and consistency, the bill is expected to attract more global players to the Indian market and foster innovation.

The Pradhan Mantri Atmanirbhar Bharat Abhiyan (PM-AB) further underscores the governments commitment to promoting self-reliance in the MedTech sector. The initiative includes support for research and development, infrastructure development, and technology adoption. Through this scheme, the government aims to enhance domestic capabilities, reduce reliance on imports, and drive the development of cutting-edge medical technologies.

There are key levers that can drive the medtech sector forward on its growth journey.

Technological Advancements

Technology plays a crucial role in the growth of the MedTech industry.

Advances in digital health, artificial intelligence (AI), and robotics are revolutionizing the way healthcare is delivered. AI-powered diagnostic tools, for instance, are improving the accuracy and speed of disease detection, while robotic surgical systems are enhancing precision and outcomes in complex procedures.

Telemedicine has also emerged as a game-changer, especially in expanding access to healthcare services in remote and underserved areas. Through telemedicine platforms, patients can consult with healthcare providers, receive diagnoses, and follow treatment plans without geographical constraints. This shift towards digital health solutions is transforming patient care and making healthcare more accessible.

Wearable health devices and remote monitoring technologies are gaining traction as well. These innovations enable individuals to track their health metrics in real-time, facilitating early detection of potential health issues and promoting preventive healthcare. By empowering individuals with real-time health data, these technologies are contributing to a proactive approach to health management.

Focus on Preventive Health

Preventive health is becoming a central focus within the Indian MedTech sector. With increasing awareness of lifestyle-related diseases and the growing burden of chronic conditions, there is a significant shift from reactive to preventive companies are developing innovative solutions to support this transition, including health tracking apps, personalized wellness programs, and early diagnostic tools.

These technologies are designed to help individuals monitor their health more effectively, identify risk factors early, and take proactive steps to prevent disease. By emphasizing prevention, the MedTech industry is not only improving individual health outcomes but also contributing to the overall efficiency of the healthcare system.

Growing Private Investments

The surge in private investments in healthcare infrastructure, including hospitals and diagnostic centers, is another key factor driving the growth of the MedTech industry. Private sector investments are enhancing the quality and accessibility of healthcare services across India.

Investment in healthcare facilities is not limited to expanding existing infrastructure; it also includes integrating advanced technologies and innovative practices. New hospitals and diagnostic centers are being equipped with state-of-the-art medical devices and technology, elevating the standards of healthcare delivery.

The increasing interest from private investors is also fostering partnerships and collaborations between MedTech companies and healthcare providers. These collaborations are driving the development of new technologies and solutions that address emerging healthcare needs and improve patient outcomes.

Future Outlook

The future of the Indian MedTech industry looks exceptionally bright. With supportive government policies, rapid technological advancements, and growing private investments, the sector is well-positioned for continued growth. The integration of advanced technologies, a focus on preventive health, and a robust regulatory framework will drive innovation and enhance healthcare accessibility. As India strengthens its position as a global MedTech hub, the industry is expected to attract further investments and foster significant advancements. By continuing to build embracing new opportunities, the Indian MedTech sector is set to make a lasting impact on global healthcare and improve the quality of life for millions of people.

The Evolving Value Chain

Traditionally, medical device companies have delivered value primarily through manufacturing and selling their products. But as pressures on the healthcare system mount, there are foundational shifts in the care delivery model, and as a result, the industry value chain is up for a drastic overhaul. In the new normal, companies will need to step out of their conventional manufacturing role. Services and data intelligence will need to be integrated with products to offer holistic solutions, requiring a ‘power play across the value chain – strengthening existing business-to-business (B2B) plays and creating new ones. These power plays will likely include a continuous slew of deal activities –strategic alliances and partnerships.

Medical device companies will ultimately seek to play a larger role in the value chain and get closer to customers, patients and consumers. Done right, this will not only add new revenue streams for them, but also contribute to shorter, cheaper, and fewer hospital visits – and thus lower healthcare costs.

Reinvent, reposition, reconfigure!

The days of simply manufacturing a device, and selling it to healthcare providers via distributors, have long vanished. Value is the new byword for success, prevention the preferred clinical outcome, and intelligence the new competitive advantage.

1. National Medical Device Policy 2023, Drishti IAS, May 2023

2. Indian medical devices industry has potential to reach $50 billion by 2030: Mansukh Mandaviya, Business today, September 2022

3. The Indian Opportunity: Pharmaceuticals & Medical devices, Invest India, April 2023

4. BT Buzz: Make in India flops for medical devices; domestic firms shutting shops to import, Business Today, July 2019

5. Report on Final Boosting of Medical Devices Industry, Department of Pharmaceuticals, August 2023

Role of the government in catalysing R&D and innovation

The union budget of 2023 touched upon nuances of R&D and innovation including upskilling of workforce through multidisciplinary courses and promoting cross-functional research through ICMRs34. NMDP, launched by the government in 2023, provides a vision for addressing shortfalls across the entire medical device value chain with a strong focus on promoting R&D and innovation. Table 1 summarises the key initiatives and respective focus area of each scheme. It is important to collectively view the government policies as opposed to looking at them in isolation since no one policy can address the gaps.

Current policies and initiatives to bolster sector capabilities and promote innovation

Government initiatives for medical device sector

National Policy on Research and Development and Innovation in Pharma-MedTech Sector

The National Policy on Research and Development and Innovation in Pharma-Medtech Sector was launched in September 2023. The policy aims to encourage R&D in pharmaceuticals and medical devices (domestic and international) and creating an ecosystem for innovation across the sector.

The policy also proposes to establish an Indian Council of Pharmaceuticals and Medtech Research and Development which promotes collaboration between industry, academia, and research institutes across departments⁶.

Promotion of Research and Innovation in Pharma-Medtech(PRIP) The Department of Pharmaceuticals (DoP) has launched the PRIP scheme to catalysepharmaceutical and medical device research in the country.

The scheme has two main components:

The firstcomponent focuses on boosting research infrastructure through the establishment of seven centres of excellence (CoE) at NIPERs.

The second component focuses on provision of financial incentives for companies undertaking research initiatives in-house or in collaboration with government institutes across six moon-shot areas which includes -AI/ML based medical devices with software development, Software as Medical Device (SaMD), and Software in Medical Device (SiMD); medical diagnostics and screening devices with genetic engineering technology; robotic devices for surgery; and medical devices with telemedicine facilities.

National Medical Device Policy (NMDP)

NMDP, approved in April 2023, provides a holistic policy framework for accelerating innovation in the medical device sector⁷. The policy defines a set of focus areas that would be key to propelling capabilities of the sector.

Assistance to Medical Devices Cluster for Common Facilities (AMD-CF)

Through AMD-CF, the government will provide financial assistance for building common infrastructure facilities at existing medical device clusters. With a total outlay of uSD36.5 million (INR3 billion), the scheme would support building of 12 common facilities and 12 testing labs between Fy23–24 and Fy26–27.⁸ By supporting the creation of labs, the scheme will play a key role in advancing R&D capabilities of current and upcoming medical device clusters in the country.

National Research Foundation (NRF) Bill ^9,10

In June 2023, introduction of the NRF bill in the parliament was approved by the union Cabinet. Through NRF, the government aims to catalyse cross-functional and collaborative research. The Department of Science and Technology (DST) will function as the administrative arm of NRF and the total outlay of funds under NRF is expected to be uSD6.1 billion (INR500 billion), which will be shared by the government and private sector over the course of the next five years (2023–28)

Production Linked Incentives (PLI) scheme: The PLI scheme for medical devices was launched by the government in 2020 to promote domestic manufacturing of devices. The scheme extends an

incentive of 5 per cent on incremental sales of medical devices manufactured in India covered under the target segments. Total incentive outlay of the scheme is uSD416 million (INR34.2 billion) and as of April 2023, manufacturing of 37 high-end medical devices have been commissioned.

The PLI scheme is playing a key role in the larger innovation ecosystem by providing a platform for affordable high-end medical devices in India.

Promotion of medical device parks scheme: The scheme launched in 2020 aimed at strengthening the manufacturing and R&D ecosystem of medical devices in the country. The central government aims to provide financial assistance to select state governments for establishing medical device parks, to provide access to standard testing and advanced infrastructure facilities. The total financial outlay of the scheme is uSD48.7 million (INR4 billion). This initiative will establish specialized parks in uttar Pradesh, Madhya Pradesh, Himachal Pradesh, Tamil Nadu. Additionally followed by 4 more parks in Gujarat, Rajasthan, Telangana, and Kerala. One Park is already operational in Andhra Pradesh (AMTZ), bringing the total to 9.

INDIAS VISION OF MEDICAL DEVICE INNOVATION

With India expected to become a uSD10 trillion economy by 2035, medical device sector is expected to play major role to help realise its aspiration. While India can keep playing the volume game, providing affordable and high-quality care to masses can happen through focusing on research and innovation. Just like the impetus given to ‘Make in India, there is rising focus on ‘Innovate in India, which could enable India to become a desirable destination for R&D in the medical device domain. The vision can be accomplished by developing a strategy and subsequently a roadmap for enhancing the Indias innovation quotient. We could expect the government to focus on implementing policies that providefinancialincentives to manufacturers, incentivising private players for investments in R&D, and adoption of advanced technologies to develop high-end medical devices. Greater focus needs to be on developing collaborations between manufacturers, hospitals and academic institutes. Also, promoting growth of start-ups will fuel the innovation engine, which needs to be sustained by a skilled workforce.

Overview of the Company

We are among the top five companies in the medical devices industry in India, in terms of operating income and stand fifth in terms of profit after tax ("PAT"), in Fiscal 2023. We manufacture and supply, in India and internationally, a diverse portfolio of medical devices in the product verticals of infusion therapy, oncology, anesthesia and respiratory care, urology, gastroenterology, vascular access, surgery and wound drainage, dialysis and renal care, diagnostics, transfusion system, veterinary medical devices, and others. In Fiscal 2023, we expanded into cardiology, and launched a critical care division for focusing on products used in intensive care. As of June 30, 2024, we had over 123 categories with 6,745 SKus of disposable medical devices.

Over the years, we have developed an extensive sales and distribution network across India. As of June 30, 2024, our distribution network with a pan-India presence included 506 distributors. We believe we have developed long term relationships with a majority of our distributors. Our sales division is also involved in promotion of our products in 8,000 private and government hospitals and nursing homes across India, as on June 30, 2024. In the three months ended June 30, 2024, we supplied our products to Europe, Africa, Americas, Australia, and Asia through a network of 260 distributors in these jurisdictions, with many of them benefiting from local/regional exclusivity arrangements. In Fiscal 2024 and in the three months ended June 30, 2024, revenue generated from sales outside India represented 69.63% and 72.14% of our revenue from operations, respectively.

We focus on research and development ("R&D") for developing more effective, safe to use, and user-friendly products. Our R&D activities are also aimed at improving existing processes and production cost efficiency and developing processes for sustainable manufacturing practices and environmental friendly products. We operate one in-house R&D facility at Faridabad (Haryana) ("R&D Center"), which has been approved by the Department of Scientific and Industrial

Research, Ministry of Science and Technology, Government of India ("DSIR"). Based on the efforts of our R&D division, as of June 30, 2024, we have been granted 325 patents in India and globally and have also filed for grant of have developed a number of safety medical devices across product lines, including safety I.V. cannula and safety scalp vein sets within the infusion therapy vertical, safety blood collection sets within the transfusion system vertical, safety fistula needles within the dialysis and renal care vertical, and safety huber needles and safety closed I.V. catether system in our critical care vertical. We have also received uS FDA 510k approvals to market two of our product categories, safety IV cannula and IV Set, in the united States.

Our Company is led by Mr. Himanshu Baid, our Managing Director and Mr. Rishi Baid, our Joint Managing Director, each of who have over two decades of experience in the medical devices industry and are first generation entrepreneurs. In addition to our R&D center, we currently operate twelve manufacturing facilities across India, China, Egypt and Italy. In India, we operate nine manufacturing facilities, including six facilities situated in Faridabad (Haryana), two facilities (including a SEZ unit) situated in Jaipur (Rajasthan) and one facility in Haridwar (uttarakhand).

We have been awarded as the top exporter of plastic medical disposables/ surgical items for the years 2021-2022, and 2022-2023, by the Plastics Export Promotion Council, and recognized as one of the Best Healthcare Brands 2024 by ET Edge.

Business Operations and Manufacturing Facilities

We operate 12 manufacturing facilities across India, China, Egypt and Italy. In India, we operate nine facilities, including six facilities situated in Faridabad (Haryana), two facilities (including a SEZ unit) situated in Jaipur (Rajasthan) and one facility in Haridwar (uttarakhand).

In addition, we operate one manufacturing facility in China through our wholly-owned subsidiary Poly Medicure Laiyang Company Limited, one manufacturing facility in Egypt through our associate entity ultra For Medical Company, and one manufacturing facility in Italy through our step-down subsidiary, Plan1 Health s.r.l. All of our manufacturing facilities are supported by infrastructure for injection molding, extrusion, insert molding, blow molding, ultrasonic welding, uV bonding and laser welding. In addition, our manufacturing facilities include effluent treatment plants, which treat our industrial wastewater and recycle it for reuse or for safe external disposal.

In order to capitalize on growth opportunities in the medical devices sector, we seek to invest in physical and operational infrastructure to expand our manufacturing capabilities with a focus on diversifying our product portfolio. In Fiscal 2023, we set up two new manufacturing facilities in Faridabad (Haryana) and Jaipur (Rajasthan), in addition to expanding our existing Faridabad Facility III and Jaipur I Facility. Further, we intend to establish three manufacturing facilities in order to manufacture medical devices, to be situated at Jaipur, Rajasthan

("Rajasthan Facility"), Palwal, Haryana ("Haryana Facility") and Haridwar, uttarakhand ("Uttarakhand Facility", and together with the Rajasthan Facility and Haryana Facility, the "Proposed Facilities") over Fiscal 2025 to 2027.

Global manufacturing capabilities with a focus on automation Our associate ultra for Medical Products, operates a manufacturing facility in Assuit, Egypt for disposable medical devices. We also have a manufacturing facility in China, operated by our wholly-owned subsidiary, and a manufacturing facility in Italy, operated by our step-down subsidiary. The manufacturing facilities in China, Egypt and Italy cater to local and international markets for disposable medical devices. As of Fiscal 2024, we had an aggregate annual installed 44patents manufacturing Indiaandworldwide.We capacity of 17,679.5 lakh units per year.

Our manufacturing capabilities are vertically integrated with design and development being carried out in-house. Our capabilities include injection moulding, extrusion, insert moulding, blow moulding, ultrasonic welding, uV bonding and laser welding. Our manufacturing processes are automated with use of robotics and certain other technologies that have developed and are programmed in-house. For instance, our assembly machines are equipped with automated arms, which are designed and programmed for specific assembly functions that may be deployed for various product variants. Our manufacturing equipment is also supported by ‘Servo systems that enable precise machine movements that improves accuracy in our processes and limits generation of scrap. As part of our quality control operations, we have deployed advanced vision systems to identify manufacturing anomalies in products that are then separated from the assembly line by the automated arm. Further, as part of our automation efforts, we have also equipped our machines with colour sensors and internet ports to ensure accuracy, and intervention for operational control. We believe that our vertically integrated facilities and the application of robotics enable us to derive operational and cost advantages. We employ highly experienced and skilled workforce at our manufacturing facilities which include 300 engineers, as of June 30, 2024.

Our manufacturing facilities have been accredited with several international quality certifications. All our Indian manufacturing facilities have been accredited with EC certificates for quality assurance systems and EN ISO 13485:2016 certificates. Further, our

Faridabad Facility-I, Faridabad Facility-II, Faridabad-V and Haridwar 168 Facility, have also been accredited with management system certificates for compliance with ISO 9001:2015. Our manufacturing facilities in China, Italy and Egypt have also been accredited with various certifications. We believe that advantage due to our manufacturing capabilities that enable us to supply quality products in Indian and international markets.

Sales and distribution network and strong customer relationships

Our operations network extends to overseas markets. In the three months ended June 30, 2024 we supplied our products to Europe, Africa, Americas, Australia, and Asia through a network of 260 distributors in these jurisdictions. In Fiscal 2024 and in the three months ended June 30, 2024, revenue generated from sales outside India represented 69.63% and 72.14% of our revenue from operations, respectively. For many of our distributors, we offer local or regional exclusivity, which grants these distributors an area in which they are the only authorized distributors of our medical devices, subject to certain conditions.

As of June 30, 2024, our distribution network included 440 personnel in our sales and marketing teams, comprising product and clinically trained graduates, as well as supply chain management personnel. Our sales division is involved in the promotion of our products in private and government hospitals, Indian company to indigenously including by conducting, continuing medical education programmes in several hospitals. As of June 30, 2024, we distributed our products in over 8,000 private and government hospitals and nursing homes in India and we engaged with 506 third-party distributors as well. We believe we have developed long-term relationships with a majority of our distributors We have consistently expanded our distribution network over the years in India and overseas. All our sales outside India are carried out through our network of distributors. In Fiscals 2024, we supplied our products to Europe, Africa, Americas, Australia, and Asia through a network of 240 distributors in these jurisdictions. We have been awarded as the top exporter of plastic medical disposables/ surgical items for the years 2021-2022, and 2022-2023, by the Plastics Export Promotion Council, sponsored by the Ministry of Commerce and Industry, Department of Commerce, the Government of India.

As of June 30, 2024, our distribution network in India included 506 distributors. We believe we have built longterm relationships with our network of third party distributors that we directly engage with. For many of our distributors, we offer local or regional exclusivity, which grants these distributors an area in which they are the only authorized distributors of our medical devices, subject to certain conditions.

Research and Development

We rely on our R&D operations to keep pace with our technological developments and to remain competitive in the market. We operate the R&D Centre at Faridabad, Haryana which is approved by DSIR. Our

R&D efforts are primarily focused on developing new products within our existing product verticals as well as introduce products to enter into new product verticals, particularly focusing on fluid management within non-communicable diseases segment, including oncology, nephrology and cardiology, and further improving existing processes and production cost efficiency. As a result of our R&D activities, as of June 30, 2024, we have been granted 325 patents and have also filed for grant of 44 patents in India and worldwide, including in the united StatesenjoyofaAmerica,competitive Europe and the united Kingdom, South Africa, Russia, China and Australia.

We have strong in-house R&D capabilities enabling us to develop an innovative and diversifiedproduct offering, and improve process efficiencies. With respect to product development capabilities, our

R&D efforts are focused on developing new products within our key product verticals and core offerings, as well as introducing products to enter into new product verticals. Regarding our process development capabilities, our R&D activities are focused on further improving existing processes and production cost efficiency. In

Fiscals 2024 our R&D expenses represented 1.38% of our revenue from operation. We focus on automation and on introducing new technologies to develop efficient processes for products with quality control. We place particular emphasis on R&D in fluid management solutions within the non-communicable diseases segment, encompassing oncology, nephrology, infusion therapy and cardiology. We have in recent years launched several new products on the back of our R&D initiatives, including dialyzers, dialysis machines, safety Huber needle, PICC catheter, arterial catheters, diagnostic catheters, guidewires and pre-filled syringes. Our manufacture dialyzers in thefirst

India.

Manufacturing Process

We use different technologies for manufacturing different medical devices, including injection molding, extrusion, insert molding, blow molding, ultrasonic welding, uV bonding and laser welding and we have expertise in handling different kind of specialized plastic materials. The manufacturing of components takes place on highly advanced PLC controlled plastic injection molding machines by using hot runner system or runner less mold technology, which is a clean technology and generates minimal scrap. Tubes are produced on highly accurate extruders with good yield. Our assembly machines are built-in with poka-yoke features and vision inspection systems. Our manufacturing facility is equipped with CNC controlled machines which enable accurate and efficient control over fabrication of molds.

We further employ kaizen or lean manufacturing technology for cycle time reduction in various manufacturing processes.

Our manufacturing process comprises of using raw materials in molding or tubing through extruders, following which components are assembled and samples are tested. The products are packed using a blister packing machine in duplex or correlated boxes and the final products undergo sterilization and quality

Manufacturing Technology and Automation

Our manufacturing processes are automated with use of robotics and certain other technologies that have developed and are programmed in-house. These include automated arms installed at our assembly machines, which are designed and programmed for specific assembly functions that may be deployed for various product variants. As of June 30, 2024, we employed 350 moulding machines, 1,500 moulds and dies, 200 automatic assembly machines, and 100 robots in our manufacturing processes. Our manufacturing equipment is also supported by ‘Servo systems that enable precise machine movements that improves accuracy in our processes and limits generation of scrap. As part of our quality control operations, we have deployed advanced vision systems to identify manufacturing anomalies in products that are then separated from the assembly line by the automated arm. As part of our automation efforts, we have equipped our machines with colour sensors and internet ports to ensure greater accuracy, and easier intervention for operational control.

Financial Performance (Consolidated)

Income

The Companys total revenues comprise revenue from operations and other income.

Total income increased by 24.59% from 1,15,141.58 lakh in Fiscal 2023 to 1,43,454.44 lakh in Fiscal 2024. Revenue from operations increased by 23.36% from 1,11,523.04 lakh in Fiscal 2023 to

1,37,579.63 lakh in Fiscal 2024, and our other income increased by 62.35% from 3,618.54 lakh in Fiscal 2023 to 5,874.81 lakh in Fiscal 2024 and this increase is primarily due to growth in our revenue from operations, for reasons described below.

Revenue from Operations

Revenues from operations increased by 23.36% from 1,11,523.04 lakh in Fiscal 2023 to 1,37,579.63 lakh in Fiscal 2024, due to an increase in sale of products by 23.18% from 1,10,865.82 lakh in

Fiscal 2023 to 1,36,569.37 lakh in Fiscal 2024, particularly medical devices such as intravenous cannula, prefilled syringes and blood bags, both in the domestic and export markets and an increase in other operating revenues by 53.72% from 657.22 lakh in Fiscal 2023 to 1,010.26 lakh in Fiscal 2024.

The increase in sale of products was driven by an increase in revenue from sale of manufactured products, such as intravenous cannula, prefilled syringes and blood bags by 23.18% from 1,10,032.43 lakh in Fiscal 2023 to 1,35,654.01 lakh in Fiscal 2024, as well as an increase in revenue from sale of traded goods, such as blood collection tubes, ECG elect and other products by 9.84% from

833.39 lakh in Fiscal 2023 to 915.36 lakh in Fiscal 2024.

Other Income

Other income increased by 62.35% from 3,618.54 lakh in Fiscal 2023 to 5,874.81 lakh in Fiscal 2024, primarily due to increase in interest income comprising interest income on account of other deposits.

Expenses

The Companys total expenses increased by 19.32% from 91,585.11 lakh in Fiscal 2023 to 109,280.21 lakh in Fiscal 2024 due to the reasons set forth below.

Cost of raw materials consumed

Cost of raw materials including packaging materials consumed increased by 9.54% from 42,431.15 lakh in Fiscal 2023 to 46,478.45 lakh in Fiscal 2024, due to an increase in raw materials consumed such as PVC compound and plastic granules by 10.39% from 34,015.73 lakh in Fiscal 2023 to 37,548.67 lakh in Fiscal 2024, and an increase in packaging material consumed by 6.11% from 8,415.42 lakh in Fiscal 2023 to 8,929.78 lakh in Fiscal 2024 on account of increase in production at our facilities.

Employee Benefit Expenses

Employee benefit expenses increased by 21.29% from 20,274.58 lakh in Fiscal 2023 to 24,591.17 lakh in Fiscal 2024 due to an increase in the salaries, wages and bonus by 21.08% from 18,676.64 lakh in Fiscal 2023 to 22,612.75 lakh in Fiscal 2024 on account of an increase in the number of full time employees, production workers and annual increment.

Research and development expenses

Research and development expenses increased by 6.50% from

1,780.25 lakh in Fiscal 2023 to 1,896.02 lakh in Fiscal 2024, primarily on account of increase in (i) cost of components and material consumed (net) for R&D, which increased by 11.79% from

1,102.85 lakh in Fiscal 2023 to 1,232.85 lakh in Fiscal 2024 on account of materials used in research and development activities, and (ii) employee benefit expenses in respect of the research and development professionals by 8.11% from 517.79 lakh in Fiscal 2023 to 559.76 lakh in Fiscal 2024 driven by new technical hires, including engineers.

Other Expenses

Other expenses increased by 20.89% from 22,342.22 lakh in Fiscal 2023 to 27,009.52 lakh in Fiscal 2024.

Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA)

EBITDA was 41,949.65 lakh in Fiscal 2024 compared to EBITDA of 30,349.68 lakh in Fiscal 2023, while EBITDA margin (EBITDA as a percentage of our revenue from operations) was 30.49% in Fiscal 2024 compared to 27.21% in Fiscal 2023.

Depreciation and amortization expenses

The Companys depreciation expenses increased from 5,716.68 lacs in fiscal2023 to 6392.65 lacs in fiscal capitalization in existing plant as well as new plant.

Finance costs

Finance costs increased by 27.86% from 883.86 lakh in Fiscal 2023 to 1,130.09 lakh in Fiscal 2024 primarily due to an increase in borrowings.

Profit Before Tax

The Companys profit before tax increased from 23,749.14 lacs in fiscal 2023 to 34,426.91 lacs in fiscal 2024.

Tax Expenses

Current tax expenses increased from 5,912.91 in Fiscal 2023 to

7,693.19 lakh in Fiscal 2024, primarily on account of increase in profit before tax. Deferred tax also increased from (109.76) lakh in Fiscal 2023 to 898.41 lakh in Fiscal 2024 on account of additional depreciation claimed in income tax and unrealised gain on mutual funds. However, tax adjustment for earlier years (net) reduced from

17.74 lakh in Fiscal 2023 to 9.34 lakh in Fiscal 2024, as a result of tax assessment of earlier years. As a result, the total tax expenses amounted to 8,600.94 lakh in Fiscal 2024 compared with 5,820.89 lakh in Fiscal 2023.

72

Profit for the Year

For the various reasons discussed above, we recorded a profit after tax of 25,825.97 lakh in Fiscal 2024 compared to 17,928.25 lakh in Fiscal 2023..

RISK AND CONCERN

Like every business, the Company faces risks, both internal and external, in the undertaking of its day-to-day operations and in pursuit of its longer-term objectives. A detailed policy drawn up and dedicated risk workshops are conducted for each business vertical and key support functions wherein risks are identified, analyzed and accepted / mitigated to an acceptable level within the risk appetite of the organization.

The Company faces the following Risks and Concerns: Commodity price risk

Commodity price risk is the possibility of impact from changes in the prices of raw materials, which we use in the manufacture of our products. While we seek to pass on input cost increases to our customers, we may not be able to fully achieve this in all situations or at all times.

Foreign exchange risk

We face foreign exchange risk in respect of our foreign currency loans, and expenses in relation to imported raw materials. However, as a substantial portion of our sales are exports, and revenues generated from these sales are denominated in foreign currencies, our exposure to foreign exchange fluctuations is relatively hedged.

Inflation risk

Inflationary factors such as increases in the raw material costs may adversely affect our operating results. There may be time lag in recovering the inflation impact from our customer and we may not2024duetomore be able to recover the full impact of such inflation. A high rate of inflation in the future may, therefore, have an adverse effect on our gins.mar abilitytomaintainourprofit

Credit risk

We are subject to the risk that our counterparties including under various financial agreements will not meet their obligations. Our credit risk exposure relates to our operating activities and our financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.

Interest rate risk

We are subject to market interest risks due to fluctuations in interest rates primarily in relation to our debt obligations with floating interest rates. As of June 30, 2024, 100.00% of our total loans carried floating interest rate. The interest rate on remaining loans, although fixed, is subject to periodic review by lending banks / financial institutions in relation to their respective base lending rates, which may vary over a period result of any change in the monetary policy of the Reserve Bank of India.

Internal Control System & Adequacy

The Company implemented proper and adequate systems of internal control to ensure that all assets are safeguarded and protected against loss from any unauthorized use or disposition and all transactions are authorized, recorded and reported correctly. The Company also implemented effective systems for achieving highest level of efficiency in operations, to achieve optimum and effective utilization of resources, monitoring thereof and the compliance with provisions all laws including the Companies Act, 2013, Listing Agreement, directions issued by the Securities and Exchange Board of India, drugs and cosmetics laws, Medical and Pharma Laws, labour laws, tax laws etc.

The Internal control system also aims at improvement in financial management and the investments of the Company. The System ensures appropriate information flow to facilitate effective monitoring. The internal audit system also ensures formation and implementation of corporate policies for financial reporting, accounting, information security, project appraisal, and corporate governance. A qualified and independent Audit Committee of the

Board of Directors also reviews the internal control system and its impacts on improvement of overall performance of the Company.

Related party transactions

The Company has formulated a Policy on Related Party Transactions and manner of dealing with related party transactions which is available on the Companys website at the link: www.polymedicure. com. All related party transactions entered into during Fy 2023-24 were on an arms length basis and in the ordinary course of business. Accordingly, the disclosure of related party transactions as required under Section 134(3)(h) of the Act in Form AOC-2 is not applicable to the Company for Fy 2023-24.

All transactions with related parties were reviewed and approved by the Audit Committee. Prior omnibus approval is obtained for related party transactions which are of repetitive nature and entered in the ordinary course of business and on an arms length basis. The transactions entered into pursuant to the omnibus approval so granted are reviewed by the internal audit team. Thereafter, a statement giving details of all related party transactions, entered pursuant to omnibus approval so granted, is placed before the Audit Committee on a quarterly basis for its review.

Details of the transactions with Related Parties during the Fy 2023-

24 are provided in the accompanying financial statements.

Sustainability Approach understanding the ESG issues relevant to its operations is vital for every business. Adopting the right approach to ESG can enhance and fortify long-term performance. Polymed, renowned for manufacturing high-quality medical devices, holds the responsibility of generating sustained value for all stakeholders.

As a purpose-driven and sustainable business, Polymed is mindful of the needs of its stakeholders. Our goal is to construct a sustainable environment with a positive impact on the planet, make lasting contributions to our communities, and provide an exceptional experience for our people, both now and in the future.

Our sustainability approach revolves around three key pillars:

Sustainable Business

Environmental Stewardship

Social Stewardship

Our dedication to making a meaningful impact on communities and the environment is guided by our policies and long-term objectives.

We adhere to a clearly outlined environmental policy and enforce a Corporate Social Responsibility (CSR) policy to seamlessly integrate economic, environmental, and social objectives with our operations and growth, all for the common good.

We are committed and resolute in our efforts to consistently establish safer manufacturing environments, environmentally conscious and intelligent facilities, energy-efficient processes, and smarter interconnected systems for sustainable ecosystems within our medical device industry.

Energy and Emissions

At Polymed, we understand the significance of minimizing our environmental impact and are dedicated to sustainable practices in energy management and GHG emission reduction. By embracing energy-efficient technologies and processes, we aim to decrease our carbon footprint and preserve natural resources. Our efforts in energy management include the adoption of renewable energy sources, such as solar power, where feasible, and the optimization of energy use in our facilities through efficient lighting and HVAC systems. We continuously monitor our energy consumption and seek opportunities for further improvement.

Moreover, we prioritize initiatives to reduce emissions and mitigate environmental harm. This includes implementing emission control measures and adopting cleaner technologies to minimize air and water pollution. For instance, our utilization of CNC machine for mold manufacturing reduces reloading, while opting for CNG vehicles and PNG gensets over diesel alternatives decreases emissions further. Furthermore, we adopted sustainable transportation practices by consolidating shipments, minimizing less-than-full shipments, and reducing transit time, all aimed at decreasing GHG emissions.

Waste Management

In our pursuit of sustainability, waste management plays a crucial role in our operations at Polymed. We recognize the importance of responsible waste disposal and are committed to minimizing our environmental impact through efficient waste management practices.

Our approach entails comprehensive strategies aimed at reducing, reusing, and recycling various waste materials such as electronics, paper, cardboard, metal, plastic, and glass. Hazardous waste is meticulously disposed of through authorized vendors for proper decomposition.

Moreover, we proactively address waste generation at its source by optimizing production processes. Our moulds are engineered to minimize plastic waste, while the adoption of hot runner technology reduces feed system generation during part moulding. We also advocate for the use of eco-friendly materials and packaging to further minimize environmental impact.

Additionally, our commitment extends to embracing paperless manufacturing processes and digital drawings throughout production and assembly, reducing paper usage and waste. Through continuous monitoring and analysis, we identify areas for improvement and implement initiatives to further diminish waste generation. Compliance with all relevant waste disposal regulations and standards is paramount, ensuring mitigation of potential environmental risks. By embracing sustainable waste management practices, we aim to reduce landfill waste, conserve resources, and contribute to a healthier planet for generations to come.

Water Conservation

Recognizing the significance of water conservation, we we have implemented various measures to reduce water consumption across our operations. At multiple manufacturing sites, we have embraced technologies such as rainwater harvesting to replenish groundwater levels and sewage treatment plants for water recycling and reuse. Additionally, we employ smart metering to monitor water usage closely and identify opportunities for further efficiencyimprovements.

Moreover, we focus on the maintenance of our water infrastructure to prevent leaks and minimize wastage. Through regular inspections and timely repairs, we ensure that our water systems function optimally, contributing to our commitment to water conservation and sustainability.

Opportunity and Future Prospects

India is becoming an increasingly important market for medical devices outsourcing. Over the last decade, the industry has experienced enormous Growth Opportunities, and current development trends promise even more potential in the next years. Indian Medical Devices Industry is Asias fourth largest market and one of the top twenty in the world. According to a forecast by the Indian Brand Equity Foundation (IBEF), Indias medical device market will expand at a 35.4 percent compound annual growth rate (CAGR), with a market value of $11 billion in 2020 and $50 billion by 2025. India is among the top-20 markets for the medical devices in the world and the 4th largest market for medical devices in Asia. India is importing more than 70% of medical device. The domestic industry has a huge potential to ramp up indigenous manufacturing and invest in R&D and reduce dependence on imports.

Human Assets

The Companys HR philosophy is to establish and build a high performing organization, where each individual is motivated to perform to the fullest capacity, to contribute to developing and achieving individual excellence and departmental objectives and continuously improve performance to realize the full potential of our personnel.

Our employees contribute significantly to our business operations.

As of June 30, 2024, our Company had 6,300 employees (including contract workers) including 300 engineers. We place significant emphasis on the recruitment and retention of our personnel and provide continuous training for employees to achieve high quality skills and improve productivity. Trainings are provided to enhance technical and behavioural skills. Other employee engagement programs include publication of our quarterly magazine

"Seekh", highlighting development and training activities, and sponsoring fitness initiatives.

Our employees are not unionized and our operations have not been interrupted by any work stoppage, strike, demonstration or other labour or industrial disturbance. We have not experienced any industrial disputes.

Insurance

We maintain insurance policies with reputed independent insurers in relation to our business and operations, our assets, equipment, products, inventories, employees and other assets. Our insurance policies cover damage to fixed and tangible assets, and we also have separate policies for stock and receivables. We have standard fire and special peril insurance policies for all our manufacturing facilities.

We also have insurance policies covering product liability claims, and marine cargo insurance to cover export of products. Further, for obtained a directors and officers ourdirectorsandofficers, liability insurance and for our human resources, we maintain a group health insurance policy.

Health and Safety

Our activities are subject to various environmental laws and regulations which govern, among other matters, air emissions, waste water discharges, the handling, storage and disposal of hazardous substances and wastes, the remediation of contaminated sites, natural resource damages, and employee health and employee safety. We continue to ensure compliance with applicable health and safety regulations and other requirements in our operations.

We have complied, and will continue to comply, with all applicable environmental and associated laws, rules and regulations. We have obtained, or are in the process of obtaining or renewing, all material environmental consents and licenses from the relevant governmental agencies that are necessary for us to carry on our business.

Our Strengths

Our core purpose is in our motto, "We care as we cure". We are one of the leading Indian companies in the disposable medical devices industry with a diversified product portfolio manufacturing a wide range of products also enables us to generate pricing advantages, which has strengthened our relationship with our primary customers, hospitals and clinics.

We consistently innovate to develop new products and improve existing products. We have Global manufacturing capabilities with a focus on automation. Our manufacturing capabilities are vertically integrated with design and development being carried out in-house. Our capabilities include injection moulding, extrusion, insert moulding, blow moulding, ultrasonic welding, uV bonding and laser welding.

We have wide geographic reach through our extensive sales and distribution network and strong customer relationships. We have integrated capabilities to market and distribute our products. We also have team of experienced, highly professional and skilled personnel. We understand the customer needs, market trends and work closely with health care professionals to make further advancements to our products. Our diversified product portfolio enables us to cater a wide range of market segments.

Intellectual Property

As of June 30, 2024, we have successfully been granted 325 patents and have also filed for grant of 44 patents in India and worldwide, including in the united States of America, Europe and the united Kingdom, South Africa, Russia, China and Australia. Additionally, we have 283 registered trademarks including our logo, 119 registered designs and 15 registered copyrights in India and worldwide, as of June 30, 2024.

Competition

The medical device industry is in a transformative phase with technological advancements and newer manufacturers entering the market. One of the biggest industries in healthcare, the medical device industry is driven by innovation and technology but currently witnesses strong competition in the market. The medical device manufacturers compete on the basis of product offerings to serve different market segments.

We sell our products in competitive markets, and face competition at the domestic and international level. We continue to invest in brand-building activities across various geographies to maintain our market position in the medical devices industry. Certain competitors may be larger than us and may have significantly greater financial resources than us. As a result, to remain competitive in our markets, we continuously strive to innovate products, improve existing products, reduce our costs of production and distribution and improve our operating efficiencies.

Some of the key players in the Indian medical devices industry consist mainly of multi-national companies. Other than multi-national companies and Indian companies, the disposable medical devices industry in India also has various fragmented local players catering to regional or local markets.

Cautionary Statement

Statements in this report on Management Discussion and Analysis, describing the Companys objectives, projections, estimates, expectations or predictions may be "forward-looking statements" within the meaning of applicable laws and regulations. These statements are based on certain assumptions and expectations of future events. Actual results could differ materially from those expressed or implied since the Companys operations are influenced by many external and internal factors beyond its control. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, based on any subsequent developments, information or events. Readers are cautioned that the risks outlined here are not exhaustive. Readers are requested to exercise their judgment in assessing the risks associated with the Company.

Annexure-8

A. Conservation of Energy

We strongly feel towards our responsibility and contribution to preserve our environment.

At Polymed, we understand the significance of minimizing our environmental impact and are dedicated to sustainable practices in energy management and GHG emission reduction.

By embracing energy-efficient technologies and processes, we aim to decrease our carbon footprint and preserve natural resources.

Our efforts in energy management include the adoption of renewable energy sources, such as solar power, where feasible, and the optimization of energy use in our facilities through efficient lighting and HVAC systems. We continuously monitor our energy consumption and seek opportunities for further improvement.

Moreover, we prioritize initiatives to reduce emissions and mitigate environmental harm. This includes implementing emission control measures and adopting cleaner technologies to minimize air and water pollution. For instance, our utilization of CNC machine for mold manufacturing reduces reloading, while opting for CNG vehicles and PNG gensets over diesel alternatives decreases emissions further. Furthermore, we adopted sustainable transportation practices by consolidating shipments, minimizing less-than-full shipments, and reducing transit time, all aimed at decreasing GHG emissions.

By integrating energy-efficient practices and reducing paper consumption in our operation, we align our efforts with two key united Nations Sustainable Development Goals (SDGs): SDG 7 (Affordable and Clean Energy) and SDG 15 (Life on Land).

Following digital initiatives have resulted in reduction of approx. 45 tCO2e:

Following energy saving measures were undertaken during

F.Y. 2023-24 in identified plants.

Energy saving on desktop/ laptop,

QR code system on product for instruction for use

Batch manufacturing automation

Paperless procurement processes,

Digi locker for sales invoices

Paperless training, recruitment & payment process module on SAP

Power consumption per production unit remains steady despite a approx. 6% rise in production and the launch of two new plants

Fuel saving approx. 6.14% HSD Saving- 30 KL by converting steam boilers with PNG & minimize HT Line faults

Solar Power Generation approx. 13,92,089 KWH Solar

Energy Produced helped combat greenhouse gas emissions

Digital Initiatives Reduction of approx. 45 tCO2e aligned with: SDG 7- Affordable and Clean energy SDG 15-Life on land

Use of robots in manufacturing process to improve productivity

Increasing the use of renewable energy and reducing reliance on traditional source.

Using recycled paper in cartons

Implementing rain water harvesting (RWH) systems to recharge ground water and planning water-positive initiatives across all plants.

Dedicated feeder installed in various plants to enhance power quality for Machineries & to reduce usage of diesel.

B. Technology Absorption, Research and Development (R&D)

1. Efforts made in technology absorption

Our manufacturing processes are automated with use of robotics and certain other technologies that have developed and are programmed in-house.

Automated arms installed at our assembly machines, which are designed and programmed for specific assembly functions that may be deployed for various product variants.

we employed 350 moulding machines, 1,500 molds and dies, 200 automatic assembly machines, and 100 robots in our manufacturing processes.

Our manufacturing equipment is also supported by ‘Servo systems that enable precise machine movements that improves accuracy in our processes and limits generation of scrap.

we have deployed advanced vision systems to identify manufacturing anomalies in products that are then separated from the assembly line by the automated arm.

we have equipped our machines with color sensors and internet ports to ensure greater accuracy, and easier intervention for operational control.

2. Research & Development activities carried out / new products developed in F.Y. 2023-24

During the year, the R&D Centre of the Company was engaged in supporting all the businesses. Following activities were conducted through the R&D Center:

Development of new design, processes and products based on customer/market requirements.

Development of new products.

Carrying out ongoing research

Research work to reduce plastic consumption for manufacturing of Medical devices and reduce cycle time of molds to make the products more cost effective

Quality up-gradation of existing medical devices

Optimization of products and processes to minimize waste generation and reduce safety concerns

Development of new analytical tools & methods

Import substitution and identification, validation of new raw materials from indigenous suppliers

Benefits derived as a result of the above R&D

Some of the benefits derived as a result of Research and

Development are as follows:

We operate the R&D Centre at Faridabad, Haryana which is approved by DSIR

Our R&D efforts are primarily focused on developing new products within our existing product verticals as well as introduce products to enter into new product verticals, particularly focusing on fluid management within non-communicable diseases segment, including oncology, nephrology and cardiology,

we have been granted 325

patents and have also filed for grant of 44 patents in India and worldwide

Our R&D Center is equipped to undertake rapid prototyping using 3D printers, process validation and

customization of products Achieving competitive prices and better product quality

Improving Productivity and Process ant quality improvement in existing products Signific

R&D initiatives, we also seek to minimize process wastage and develop environmentally friendly products by using biodegradable materials

Expenditure on Research & Development	Year Ended 31.03.2024	Year Ended 31.03.2023
(a) Capital	-	-
(b) Revenue	1896.02	1,780.25
Total	1896.02	1,780.25
Total Research and Devel-
opment Expenditure as per-	1.32%	1.54%
centage of total turnover.

C. Foreign Exchange Earnings and Outgo

Activities relating to export, Initiative taken to increase exports, development of new products and service and export plans:

The Company continues to keep its focus on widening of new geographical area to augment its exports. The Company is regularly participating in major overseas conferences and trade shows, which are helpful in improving the visibility of various products in International markets and widening its customer base.

Foreign Exchange used and earned

( in lacs)

	Particulars	2023-24	2022-23
(a)	Foreign Exchange used	52,006.88	39,752.52
(b)	Foreign Exchange Earned	89,669.52	72,243.07

I further state that such compliance is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness testing and with which the management has conducted the affairs of the Company.