Raymed Labs Management Discussions


We submit herewith the "Management Discussion and Analysis Report" on the business of the Company as applicable to the extent relevant.


The global pharmaceutical market size is expected to grow from $ 1454.66 billion in 2021 to $ 1587.05 billion in 2022 at a Compound Annual Growth Rate (CAGR) of 9.1%. Pharmaceutical market is expect to reach $3201.02 billion in 2026 at a CAGR of 19.2%. The NAVADHI Market Researchs estimate is slightly higher, at $1.7 trillion by 2023. The values are based on invoice pricing rather than net revenue, which is the revenue actually received after accounting for rebates and deductions. Net revenue is predicted by IQVIA to grow at a compound annual growth rate (CAGR) of 0-3% through 2023. Growth in the industry is attributed to the expanding and aging population combined with greater demand in emerging economies, as well as increasing numbers of novel treatments for rare and specialty markets. Trends and issues leading to lower growth in the global pharmaceutical market include a slowing world economy, the growing adoption of biosimilar and downward pricing pressure; this is occurring in combination with changes to reimbursement policies, notably in the United States.


The Indian pharmaceutical industry ranks third globally in pharmaceutical production by volume and is known for its generic medicines and low-cost vaccines. The sector contributed to around 1.32% of the Gross Value Added (at 2011-12 constant prices) of the Indian Economy in 2020-21.The total annual turnover of Pharmaceuticals in the fiscal year 2021-22 was Rs.3,44,125 crore (USD 42.34 Bn). Major segments of Indian Pharmaceutical Industry include generic drugs, OTC medicines, bulk drugs, vaccines, contract research & manufacturing, bio similar and biologics. India is a global leader in the supply of DPT, BCG, and Measles vaccines. India is one of the biggest suppliers of low-cost vaccines in the world. India accounts for 60 percent of global vaccine production, contributing 40 to 70 percent of the WHO demand for Diphtheria, Tetanus and Pertussis (DPT) and Bacillus Chalmette-Guerin (BCG) vaccines, and 90 percent of the WHO demand for the measles vaccine. There are 500 API manufacturers contributing about 8% in the global API Industry. India is the largest supplier of generic medicines. It manufactures about 60,000 different generic brands across 60 therapeutic categories and accounts for 20% of the global supply of generics. Access to affordable HIV treatment from India is one of the greatest success stories in medicine. Because of the low price and high quality, Indian medicines are preferred worldwide, making it "pharmacy of the world". The sector has been growing at a healthy rate.

Industry Overview

Indian pharmaceutical industry plays significant role globally, supply in affordable and low cost generic drugs to millions of people across the globe. The sector offers lower cost without compromising on quality as is reflected by the fact India has the highest number of United States Food and Drug Administration (USFDA) approved pharmaceutical plants outside the US and also a significant number of World Health Organization (WHO) Good Manufacturing Practices (GMP)-compliant plants as well as plants approved by regulatory authority of other countries. Indias pharmaceutical sector forms a major component of the countrys foreign trade and has been consistently making trade surplus as may be seen from the Graph 1A. During 2021-22, total exports of pharmaceuticals stood at Rs.1,74,955 crore (USD23.5Bn) while total imports were to the tune of Rs.60,060 crore (USD 8.06 Bn) resulting in a trade surplus of Rs. 1,14,895 crore (USD15.44Bn).



As per extant policy, FDI up to 100 per cent, under the automatic route, is permitted in the pharmaceuticals sector for Greenfield investment. Hundred per cent FDI is also permitted for investments in existing companies under the government approval route. Further, the Government of India has also put in place mechanisms such as the Drug Price Control Order and the National Pharmaceutical Pricing Authority to address the issue of affordability and availability of medicines.

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

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

• As per the Union Budget 2023-24:

• Per capita income has more than doubled to Rs.1.97 lakh (US$ 2,400) in around nine years

• 11.7 crore household toilets constructed under Swachh Bharat Mission.

• 9.6 crore LPG connections provided under Ujjwala.

• 220 crore covid vaccination of 102 crore persons.

• 47.8 crore PM Jan Dhan bank accounts.

• Insurance cover for 44.6 crore persons under PM Suraksha Bima and PM Jeevan Jyoti Yojana.

• Cash transfer of Rs. 2.2 lakh crore (US$ 26.8 billion) to over 11.4 crore farmers under PM Kisan Samman Nidhi.

• Targeted Fiscal Deficit to be below 4.5% by 2025-26.

• Rs.15,000 crore (US$ 1.82 billion) for implementation of the Pradhan Mantri PVTG Development Mission over the next three years.

• Rs. 35,000 crore (US$ 4.3 billion) outlay for energy security, energy transition, and net zero objectives

• In March 2022, under the Strengthening of Pharmaceutical Industry (SPI) Scheme, a total financial outlay of Rs. 500 crore (US$ 665.5 million) for the period FY 2021-22 to FY 2025-26 were announced.

The pharmaceutical industry has applauded budgetary proposal to support research and innovation in the sector, but is upset that APIs, a critical component of medicines, were not taken into consideration in the Budget 2023-24.

• To achieve self-reliance and minimise import dependency in the countrys essential bulk drugs, the Department of Pharmaceuticals initiated a PLI scheme to promote domestic manufacturing by setting up greenfield plants with minimum domestic value addition in four separate ‘Target Segments with a cumulative outlay of Rs. 6,940 crore (US$ 951.27 million) from FY21 to FY30.

• In November 2021, PM Mr. Narendra Modi inaugurated the first Global Innovation Summit of the pharmaceuticals sector. The summit will have 12 sessions and over 40 national and international speakers deliberating on a range of subjects including regulatory environment, funding for innovation, industry-academia collaboration and innovation infrastructure.

• The finance minister reported that the Union Budget 2023-24 has included the establishment of 157 new nursing colleges in co-location with the current medical colleges.

• To the health sector was allocated Rs. 89,155 crore in the 2023-24. This allocation was an increase of approximately 13% over Rs. 79,145 crore allocated in the 2022-23 union budget.

• the allocated Rs. 89,155 crore, Department of Health and Family Welfare would receive Rs. 86,175 crore and Department of Health Research would receive Rs. 2,980 crore.

• The AYUSH ministry also received an increased budget allocation of 28% which enabled it to receive Rs. 3,647 crore from the previous years Rs. 2,845 crore.

• The Department of Health and Family received an Rs. 86,175 crore allocation to enable it meet its current goals in promoting healthcare.

• Allocated towards establishing 22 new All India Institute of Medical Sciences (AIIMS), where the ministry set aside Rs. 6,835 crore for the project.


Increasing Competition Between Online & Retail:

The industrys competition has increased, putting downward pressure on prices. If Pharm Easy does not adjust to the price changes, it may lose market share.

Unstructured Grievance Handling System: Unpredictability of consumer purchasing behaviour.

Political Instability:

Additional governmental regulations and tax policies. Political indecision in the country can be an obstacle to business, causing performance to suffer and additional costs to be incurred.


The financial statements have been prepared in accordance with the requirements of the Companies Act, 2013 and applicable accounting standards issued by the Institute of Chartered Accountants of India. The details of the financial performance of the Company are appearing in the Balance Sheet, Profit & Loss Accounts and other financial statements forming part of this annual report.


Given the magnitude and nature of its business, the Company has maintained sound and commercial practice with an effective internal control system. The system ensures that all transactions are authorized, recorded and reported correctly to safeguard the assets of the Company and protect them from any loss due to unauthorized use or disposition. The adequate internal information system is in place to ensure proper information flow for the decisionmaking process. The Company also has well-established processes and clearly defined roles and responsibilities for people at various levels. The control mechanism also involves well documented policies, authorization guidelines commensurate with the level of responsibility and standard operating procedures specific to the respective businesses, adherence to which is strictly ensured. Internal audit is carried out frequently to create awareness and to take corrective actions on the respective units or areas, which need rectification. These reports are then reviewed by the "Management Team" and the "Audit Committee" for follow-up action.


The Company regards its human resources as amongst its most valuable assets and proactively reviews policies and processes by creating a work environment that encourages initiative, provides challenges and opportunities and recognizes the performance and potential of its employees attracting and retaining the best manpower available by providing high degree of motivation.

Your Company believes in trust, transparency & teamwork to improve employees productivity at all levels.


While preparation of financial statements, a relevant Accounting Standard treatment has been followed.


The Management Discussion and Analysis Report containing your Companys objectives, projections, estimates and expectation may constitute certain statements, which are forward looking within the meaning of applicable laws and regulations. The statements in this management discussion and analysis report could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operation include raw material availability and prices, cyclical demand and pricing in the Companys principal markets, changes in the governmental regulations, tax regimes, forex markets, economic developments within India and the countries with which the Company conducts business and other incidental factors.

On behalf of the Board of Directors


Date: 02.08.2023

Place: Noida

Ajai Goyal

Whole Time Director