Sanjivani Paranteral Ltd Management Discussions

Global Economy

T he global economy is exhibiting signs of gradual stabilization and resilience, despite facing ongoing challenges. The In- ternational Monetary Fund (IMF) forecasts global growth at approximately 3.0% in 2025, followed by a modest rebound in 2026, below the 2000- 2019 historical average of 3.7%. However, this growth is tempered by persistent headwinds and structural distortions impacting economic activity. Although global growth has remained steady, the makeup of this activity reveals certain distortions. Strong contributions from international trade and investment stand in contrast to subdued private consumption across several major jurisdictions. These disparities highlight the effects of heightened tariffs and trade barriers, which obscure the underlying robustness of the global economy. Growth in advanced economies is projected to slow slightly, moderating from 1.8% in 2023 and 2024 to 1.5% in 2025 and 1.6% in 2026. In contrast, Emerging Market and Developing Economies (EMDEs) are expected to see a gradual deceleration, with growth easing from 4.7% in 2023 and 4.3% in 2024 to 4.1% in 2025 and 4.0% in 2026.

Inflation is expected to gradually ease from the elevated levels seen during the pandemic, with headline inflation forecasted to decline to 4.2% in 2025 and further to 3.6% in 2026. Advanced economies are projected to achieve their inflation targets sooner than emerging market and developing economies, supported by significant interest rate hikes by central banks aimed at restoring price stability. However, lingering risks of renewed inflationary pressures may complicate the path to monetary easing and pose challenges to fiscal sustainability and financial stability globally.

Indian Economy

Indias economic momentum continues to build, with real GDP growth of 6.5% in FY25, driven by resilient domestic demand, including a rebound in rural consumption, steady investment, and improved net exports. Nominal GDP expanded by 9.8%, reaching INR 330 lakh crore in FY25 from INR 301 lakh crore in FY24, while real GDP at constant prices rose to INR 187 lakh crore from INR 176 lakh crore. Growth is expected to remain strong, supported by robust consumption, investment, and government initiatives enhancing infrastructure and digital connectivity. Inflation pressures are easing, and Indias position as a global manufacturing and export hub is strengthening, with exports hitting record levels.

Indias Foreign Direct Investment (FDI) inflows continued their upward trend, reaching a provisional USD 81.04 billion in FY 2024-25, a 14% increase from USD 71.28 billion in FY 2023-24, reflecting strong global confidence in the Indian economy. Equity inflows grew 13% year-on-year to USD 50 billion in FY 2024-25, contributing to the highest total FDI in three years.

Looking ahead, the International Monetary Fund (IMF) projects Indias growth at 6.4% for both 2025 and 2026, with slight upward revisions reflecting a relatively more favorable external environment than anticipated in earlier forecasts. Overall, the outlook for India remains positive, underscored by strong domestic demand, easing inflationary pressures, a resilient external sector, and a stable employment scenario. However, ongoing global headwinds?€”such as persistent trade frictions, policy uncertainty, and geopolitical conflicts?€”pose risks that require careful monitoring, as they could influence Indias growth trajectory.

Global Pharmaceutical Industry

The global pharmaceutical market is robust and expanding, with revenues projected to grow at a CAGR of approximately 5-6%, reaching an estimated USD 2.3 to 3 trillion by 2028-2030. The markets growth is driven by rising demand for innovative therapies, especially in areas like oncology, immunology, and metabolic diseases such as diabetes and obesity.

Emerging markets, notably China, India, Southeast Asia, and Latin America, are key growth regions fueled by expanding healthcare infrastructure, rising middle-class populations, and broader access to medicines. Mature markets like North Amer- ica, Western Europe, and Japan are expected to see slower growth due to already high baseline consumption. Specialty medicines, including biologics and personalized therapies, are commanding an increasing share of spending, with oncology leading as one of the fastest-growing therapy areas. The Indian pharmaceutical sector continues to strengthen its global foot- print, leveraging its manufacturing capabilities and export reach, contributing significantly to the global supply chain.

Global Bulk Drugs Market

According to IQVIA, majority of global bulk drug consumption can be accounted to three segments - Branded Prescription drugs, Over-the-Counter (OTC) drugs and Generic Prescription drugs. The global bulk drug market size was valued at around USD 210 billion in 2024. It is projected to grow at a compound annual growth rate (CAGR) of approximately 6-7% through 2030.

Indian Pharmaceutical Market

Indias pharmaceutical industry continues to cement its status as a global powerhouse, leading in generic medicines and ac- tive pharmaceutical ingredient (API) production. The country uniquely offers end-to-end support?€”spanning capacity, capabili- ty, and cost advantages?€”that attracts a vast global client base. As the fifth-largest contributor to manufacturing GVA, it drives approximately 4% of Indias foreign direct investment (FDI) inflows, sustains a USD 19 billion trade surplus, and supports 2.7 million livelihoods, either directly or indirectly.

In FY 2024-25, India demonstrated robust growth, driven by a blend of cost-effective manufacturing, expansive R&D capa- bilities, and supportive government initiatives. Indias pharmaceutical market for FY 2024-25 is valued at USD 57.2 billion with domestic consumption valued at USD 26.7 billion and export valued at USD 30.5 billion. The highly cost-sensitive Indian market favors high-volume, low-cost products, with generics dominating the therapeutic landscape. Furthermore, ongoing in- vestments in domestic manufacturing, broader healthcare outreach, and expanded insurance coverage are poised to support growth across multiple therapy areas. India supplies around 40% of the US generic market and approximately 25% of UK prescriptions, underscoring its role as a key global manufacturing hub.

According to the Department of Pharmaceuticals (DoP), the Indian Pharmaceutical Market reached approximately INR 4,17,345 crore (over USD 50 billion) in FY 2023-24, growing at over 10% per annum over the past five years. The domestic market is forecast to more than double by 2030, reaching USD 130 billion, elevating Indias share of the global pharmaceutical market from the current 3% to nearly 5%, with long-term growth projections hitting around USD 450 billion by 2047.

Indian Bulk Drug Market

India has over 500 active pharmaceutical ingredient (API) manufacturers, and is the third-largest producer globally, holding an 8% share of the API industry by value. The Indian API Industry has grown at a CAGR of 8.4% between 2017 and 2023 and is expected to grow at the same rate of 8.3% CAGR by 2029, driven by the nation-wide push for self-reliance.

Nutraceutical Market

The global nutraceutical market is poised for strong growth in the coming years. Valued at approximately USD 580-630 billion in 2025, it is expected to expand at a CAGR of around 7-11% through the late 2020s, surpassing USD 900 billion by 2028 and reaching nearly USD 1 trillion by 2030-32. Key growth drivers include rising consumer health awareness, increasing demand for functional foods and dietary supplements, and expanding access in emerging markets such as India, China, and South- east Asia. Specialty segments like botanical actives, sports nutrition, and immune support are expected to see accelerated adoption. The markets expansion is supported by demographic shifts including aging populations and rising chronic disease prevalence.

ABOUT THE COMPANY

Sanjivani Paranteral Limited was incorporated on 05th October, 1994 in the state of Maharashtra. Main Object Clause of the company is -To manufacture, produce, formulate, prepare, buy, markets, distribute, sell, or otherwise dispose off refine. blend, process, import, export, trade and to deal in pharmaceutical formulations, bulk drugs, biological, genetics, vaccines, serums, medical products, health care products, veterinary feeds, feeds, feed supplements, feed. Additives, preparations, substances or products and all derivatives, by-products, residual products or Ingredients required for the manufacture, preparations, pro- cessing or use of any of the foregoing and to establish, maintain and equip Research and Quality Control Centres. Chemical Plant to produce basic chemicals, bulk drugs, antibiotics, pharmaceuticals and veterinary Products.

FORWARD ?€“ LOOKING STATEMENTS:

This Report contains forward ?€“Looking Statements. Any, statement that address expectations or projections about the future, including but not limited to statements about the Companys strategy and growth, product development, market position, expenditures and financial results, are forward looking statements. Forward looking statements are based on certain assump- tions and expectations of future growth.

OPPORTUNITIES, THREATS AND OUTLOOK

Sanjivani Paranteral Limited will be able to place itself in a strong position by expanding strategically, increasing its manu- facturing capacities and enhancing capacities across the organization. The Company is looking at different opportunities in untapped markets and also across a value chain. It plans for alliances with business associates in the global market, giving a huge boost to the selective products that it already deals in. We are fully conscious of our responsibility toward our customers. Our efforts are directed toward the fulfillment of customer satisfaction through the quality of products. As the consolidation of this industry gains momentum, the need to develop a dedicated team of skilled manpower assumes urgency and importance.

We will continue to focus on training and motivation of manpower so as to develop teams of qualified and skilled personnel to effectively discharge their responsibilities in a number of projects and activities. It is, in this context, which we have been working towards promoting the skills and professionalism of our employees to cope with and focus on the challenges of change and growth.

OVERVIEW:

Management Discussion

FY25 was a defining year for Sanjivani Paranteral Ltd. (SPL), marked by strong financial performance, execution of strategic initiatives, and progress across multiple growth platforms. The Company strengthened its position as a trusted manufacturer and marketer of sterile injectables, oral solids, and nutraceuticals, while broadening its geographic reach and deepening its product pipeline.

Strong Growth and Diversified Revenue Streams

The Company delivered robust growth during the year, supported by a healthy balance of new product introductions, volume expansion in established categories, and higher contributions from international markets. Over the last five years, revenues have expanded from INR 17 crores in FY20 to INR 70 crores in FY25, reflecting the strength of our execution and the sus- tainability of our strategy. Injectables and oral solids maintained their leadership in the portfolio, benefiting from established therapeutic demand, high quality standards, and enduring customer relationships.

Expanding Global Footprint

Exports were the cornerstone of growth, accounting for a significant share of overall revenues. Our facility successfully cleared multiple regulatory audits, underscoring SPLs adherence to global quality benchmarks. A notable milestone was the site ap- proval received from a regulator in a Francophone African nation, which not only validates our compliance standards but also unlocks opportunities in multiple new markets across French-speaking Africa. During the year, we filed 48 new products in the region, further building our growth pipeline.

The Company also made steady expansion into Central and Latin America by broadening both its portfolio and market cover- age. With a strong base now established, these geographies are expected to contribute meaningfully to future growth.

In Eastern Europe, our investment in Alevia Healthcare for a minority stake ?€” a strategic joint venture based in Prague?€” achieved operational milestones during the year. Initial nutraceutical orders were successfully executed, and additional con- tracts are under negotiation. Alevia Healthcare provides a strong foothold in the European Union and is expected to anchor SPLs long-term expansion in the region.

IV Entry through a Joint Venture

SPL created a wholly owned subsidiary - SPL Infusion Private Ltd for its IV Fluids joint venture vertical where it holds major- ity stake. The entity will focus on manufacture and supply of IV Fluids bottles to address the growing needs of the market. This entity provides a sharper operational focus, supports product diversification, and positions the Company to benefit from emerging opportunities in Indian and Global IV Fluids landscape.

Innovation and Compliance

Innovation remained central to our growth strategy. The Company advanced its R&D programs with a focus on differentiated sterile injectables and value-added nutraceuticals. A steady pipeline of product dossiers was filed across multiple markets, ensuring long-term growth visibility. Equally, compliance remained uncompromising, with all facilities operating under strict WHO-GMP standards, ensuring consistency, quality, and patient safety.

Outlook

The progress made in FY25 has created a strong platform for sustained growth in the years ahead. With diversified revenue streams, strong export momentum, strategic subsidiaries in both India and Europe, and a proven record of regulatory success, Sanjivani Paranteral Ltd. is well-positioned to scale its business further, deepen global partnerships, and enhance long-term value creation for all stakeholders.

MEDIUM TERM STRATEGY:

Our Company has completed 25 years of start up of production All the manufacturing departments, marketing departments etc. are sufficiently matured to take up new challenges in the medium term. We propose to start 11 (Eleven) new products in the medium term and long term and apply for regulatory approvals like EDQM, USFDA etc. For this purpose our R & D depart- ment is absolutely ready and they already have a few products queued up to take up for validation batches and commercial batches

LONG TERM STRATEGY:

We also need to improve the manufacturing processes to reduce the solvent load and formation of other by-products. This will also help us in reducing the pollution load and ultimately reducing the final product cost.

RISK AND CONCERNS:

Due to stiff competitions in the pharma field where the companys activities are cantered in, the overall margins are always under pressure, but maintainable, with the constant effort and good & services rendered by the company.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

An Audit Committee of the Board of Directors of the Company has been constituted as per provisions of Section 177 of the Companies Act, 2013 and corporate governance requirements specified by Listing Agreements with the Stock Exchanges. The Internal Audit Function is looked after internally by the finance and accounts department, and reviewed by the Audit Com- mittee and the management at the regular intervals. The Internal Auditors Reports dealing with Internal Control Systems are considered by the Audit Committee and appropriate actions are taken, whichever necessary.

ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS:

The Financial Statements have been prepared in accordance with the requirements of the Act, Indian Generally Accepted Principles (Indian GAAP) and the Accounting Standards as prescribed by the Institute of Chartered Accountants of India. The Management believes that it has been objective and prudent in making estimates and judgments relating to the Financial Statements and confirms that these Financial Statements are a true and fair representation of the Companys Operations for the period under review.

DEVELOPMENT ON HUMAN RESOURCE FRONT:

At Sanjivani Paranteral Limited our human resource is critical to our success and carrying forward our Mission. With their sus- tained, determined and able work efforts we were able to cruise smoothly through the hard time of the economic volatility and rapidly changing market conditions. The requirement of the markets given the economic scenario has made this even more challenging. Attracting newer talent with the drive, training and upgrading existing skill sets and getting all to move in a unified direction will definitely be task in the Company. By creating conducive environment for career growth, Company is trying to achieve the maximum utilization of employees

skills in the most possible way. There is need and the company is focused on retaining and bringing in talent keeping in mind

the ambitious plans despite the market and industry scenario. The Company also believes in recognizing and rewarding em- ployees to boost their morale and enable to achieve their maximum potential. The need to have a change in the management

style of the Company is one of the key focus areas this year.

INDUSTRIAL RELATIONS:

Industrial Relations throughout the year continued to remain very cordial and satisfactory.

CAUTIONARY STATEMENT:

Statements in this Management Discussion and Analysis describing the companys objectives, projections, estimates and expectations may be "forward-looking statements" within the meaning of applicable laws and regulations. Actual results may differ materially from those either expressed or implied. Important factors that could make difference to the Companys opera- tions include change in government regulations, tax regimes, and economic developments within and outside India.

INTERNAL CONTROL SYSTEM:

In last five years, the company has concentrated on reduction of fixed expenses and has also reduced direct variables cost. It has concentrated on value added products and optimize on available cash flow. The management is ensuring an effective internal control system to safeguard the assets of the company. Efforts for continued improvement of internal control system are being consistently made in this regard.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT INCLUDING NUMBER OF PEOPLE EMPLOYED:

Your company believes in a work environment that is congenial to on job learning and encourages team work. It has, therefore, continued to focus on developing the competence of its staff and employees. Cordial and harmonious relation with employees continued to prevail throughout the year under review.

For And on Behalf of the Board of Directors Sanjivani Paranteral Limited

SD/- Srivardhan Ashwani Khemka Director	SD/- Ashwani Anamisharan Khemka Director
Place: Mumbai
Date: 12 th August, 2025

ANNEXURE II TO DIRECTOR REPORT PARTICULARS OF EMPLOYEE

?‚? Ratio of the remuneration of each Director to the median remuneration of the Employees of the Sanjivani Paranteral Limited for the Financial year 2024-25 and the percentage increase in remuneration of each Director and KMPs of the Company for the financial Year 2024-25:

Name Of Director/ KMP	Remuneration/ Sitting fees of Director/ KMP for financial year 2024- 25 (in Lakh)	% increase in remuneration in the Financial Year 2024-25	Ratio of remuneration of each Director to MRE for Financial Year 2024-25
Mr. Ashwani Anamisharan Khemka (Execu- tive Director-Chairperson-MD)	150	316.67%	88.23
Mr. Srivardhan Ashwani Khemka (Executive Director)	48	NA	28.24
Mrs. Mrunmai Mahendra Sarvankar (Non-Executive - Independent Director)	- -	NA	NA
Mrs. Monika Amit Singhania (Non- Executive -Independent Director)	- -	NA	NA
Mr. Abhay Milan Shah (Independent Direc- tor)	- -	NA	NA
Mr. Pritesh Jain (Chief Financial Officer)	35.53	NA	NA
Mr.Ravikumar Bogham (Company Secretary & Compliance Officer)	2.10	NA	NA

?‚? The percentage increase in the median remuneration of Employees of Sanjivani Paranteral Limited in the financial year 2024-25: 44.88% (Increase)

?‚? Permanent employees on the rolls of Sanjivani Paranteral Limited as on 31st March, 2025: 40

?‚? Average percentage Increase made in the salaries of employees other than the managerial personnel in financial year i.e. 2024-25 as 9.21%. As regards, comparison of managerial remuneration of 2024-25 over 2023-24, details of the same are given in the above table at sr. no. I.

?‚? It is hereby affirmed that the remuneration paid during the year is as per the Nomination and Remuneration Policy of the Company.

For and on behalf of board of directors Sanjivani paranteral limited
SD/- Ashwani Anamisharan Khemka Managing director Din: 00337118	SD/- Srivardhan Ashwani Khemka Director Din: 08942106
Place: Mumbai
Date: 12 th August, 2025