Skybiotech Healthcare Limited Management Discussions

The management discussion and analysis present the industry Overview, opportunities and Threats, Initiatives by the Company and overall strategy of Skybiotech Healthcare Limited becoming a market driven producer of various innovative models and ranges of Pharmaceuticals products. The company is very optimistic of capturing a substantial share of market in the midst of the threats faced due to the liberalization and increased competition from well established companies from abroad and geopolitical crises.

The Indian pharma industry has always been a leading industrial sector in the country, with a paralleled dominance of both domestic and foreign pharma companies. As a result of the vast potential held by the industry, it was estimated to have generated revenue worth US$ 49 Billion in FY 2021. Growing population of middle-class, rapid shift towards urbanization, enhanced medical infrastructure, increase in health insurance and lifestyle-related disease are some of the major factors for the growth of the industry.

According to this new research report “Indian Pharma Sector Forecast 2026”, the rise in continuous investments by multinational companies and exports project a double-digit growth in near future. A large percentage of pharma products produced in India are exported, which has led the leading players to expand their reach into the Western nations. Due to the investments in R&D and the quest for more and more ANDA filings, the clinical trials market is growing at blistering pace. For comprehensive outlook of the industry, our in-depth and extensive research covers various segment ranging from the export and domestic market, bulk drugs & formulations to branded & generic drugs, etc.

The progress in the reach to medicines among Indians sets the baseline for the optimistic future outlook of the pharmaceutical market. The focus of the industry will shift towards capitalizing the potential of Tier-III and rural areas. Sectors such as biosimilars and CRAMS will continue pave way for the pharmaceutical market during the forecast period (FY 2022-2026).

The report offers a comprehensive statistical and analytical overview of the Indian pharmaceutical industry. It offers data on past, present, and future trends, with a focus on the pharmaceutical markets overall structure, makeup, and operation. The research goes into great detail about the opportunities and challenges that are predicted to occur both within and outside the pharmaceutical industry.

The research also looks at the pharmaceutical industrys regulatory framework and distribution structure. It has thoroughly investigated current market trends, developments, and competitive landscapes in order to help clients comprehend the market structure and its trajectory in the coming years. It also gives a quick rundown of the demographics and healthcare profile in order to assess the pharmaceutical market in terms of demand, spending, and potential future direction.

Indias textiles sector is one of the oldest industries in Indian economy dating back several centuries. Even today, textiles sector is one of the largest contributors to Indias exports with approximately 11 per cent of total exports. The textiles industry is also labour intensive and is one of the largest employers. The textile industry has two broad segments. First, the unorganised sector consists of handloom, handicrafts and sericulture, which are operated on a small scale and through traditional tools and methods. The second is the organized sector consisting of spinning, apparel and garments segment which apply modern machinery and techniques such as economies of scale. The Indian textiles industry is extremely varied, with the hand-spun and hand woven textiles sectors at one end of the spectrum, while the capital intensive sophisticated mills sector at the other end of the spectrum. The decentralized power looms/ hosiery and knitting sector form the largest component of the textiles sector. The close linkage of the textile industry to agriculture (for raw materials such as cotton) and the ancient culture and traditions of the country in terms of textiles make the Indian textiles sector unique in comparison to the industries of other countries. The Indian textile industry has the capacity to produce a wide variety of products suitable to different market segments, both within India and across the world.

The global pharmaceutical industry was valued at approximately USD 1,627.73 billion in 2025 and is projected to reach USD 1,722.05 billion in 2026, growing at a year-over-year rate of 5.8%. The pharmaceutical industry outlook 2026 reflects steady expansion driven by biologics innovation, rising demand for advanced therapies, and increasing global healthcare expenditure.

India is the largest provider of generic drugs globally and is renowned for its affordable vaccines and high-quality medicines. Over the years, the Indian pharmaceutical industry has evolved into a vibrant sector, currently ranked third in pharmaceutical production by volume and 14th in terms of value. The industry has grown at a CAGR of 9.43% over the past nine years and contributes around 1.72% to Indias GDP.

Key segments of the industry include generic drugs, over-the-counter medications, bulk drugs, vaccines, biosimilars, biologics, and contract research and manufacturing. India has the highest number of pharmaceutical manufacturing facilities compliant with US FDA standards and hosts over 500 active pharmaceutical ingredient (API) producers, accounting for approximately 8% of the global API market.

As of May 2025, India supplies 55-60% of UNICEFs vaccines, meets 99% of WHOs DPT vaccine demand, and provides 52% of BCG and 45% of measles vaccines. The domestic pharmaceutical ecosystem comprises around 3,000 drug companies and roughly 10,500 manufacturing units, supported by a large pool of skilled scientists and engineers. Over 80% of antiretroviral drugs used globally to combat AIDS are supplied by Indian firms, reinforcing Indias reputation as the “pharmacy of the world.”

Indias domestic pharmaceutical market, in FY26 valued at Rs. 5.30 lakh crore (US$ 60 billion) is projected to more than double to Rs. 12.47 lakh crore (US$ 130 billion) by 2030, driven by strong manufacturing capabilities, expanding exports, policy support and Indias leadership in generic medicines and vaccines.

The Government of India has introduced several key initiatives through the Department of Pharmaceuticals to boost domestic manufacturing, research, and affordability in the pharma sector

• Biopharma SHAKTIL:

Proposed in the Union Budget with a ?10,000 crore outlay over five years to build a strong ecosystem for biologics, biosimilars, and clinical trial site.

• Production Linked Incentive (PLI) Schemes:

• Financial incentives provided for bulk drugs, active pharmaceutical ingredients (APIs), key starting materials (KSMs), and medical devices to reduce import dependence

• PRIP Scheme:

The Scheme for Promotion of Research and Innovation in Pharma MedTech Sector (PRIP) encourages shifting focus from pure generic manufacturing toward high-value innovation.

• Bulk Drug & Medical Device Parks:

Development of dedicated parks with common infrastructure facilities (CIFs) to lower production costs for manufacturers.

• Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP):

A citizen-centric network of Jan Aushadhi Kendras supplying affordable, high-quality generic medicines and surgical items

• China: Dominates the global supply of APIs and basic chemical intermediates, while rapidly expanding its footprint in innovative drug development.

• United States: Leads the world in pharmaceutical research and development (R&D), biotechnology, and high-value patented drugs.

• European Nations (Italy, Spain, Germany, UK): Compete strongly in specialized chemical production, complex formulations, and advanced manufacturing infrastructure.

• Israel: Home to major global generic players like Teva Pharmaceuticals, competing directly in regulated international generic markets.

The Company is responsible for handling risks, which forms a part of good corporate governance. As part of our group values, adequate risk management ensures that risks are identified early and mitigation process is defined.

Various types of risks that can be categorized into external risks and internal risks impact the Company.

Industrial risks like change in government regulations or their implementation could disrupt our operations,unethical marketing, dishonest advertising, questionable pricing practices, inaccurate claims with regards to safety and efficacy of the product,Political instability,Natural calamities,Terroristattacks, civil unrests etc.

The Company can improve operational performance and create long-term value for shareholders on the back of superior consumer innovation as well as persistent focus on profitable growth and cost efficiency. The internal departments of the Company proactively monitor and manage the operational risks at various levels.

During the year under review your company has not generated any revenue from its core business activities. Your directors are hopeful that in current year company will generate revenue from its new objective and better financial results would follow.

The Management Discussion and Analysis statement of the Annual Report has been included in adherence of the spirit enunciated in the code of Corporate Governance approved by the Securities and Exchange Board of India. Statement in the Management Discussion and Analysis describing the Companys objectives, projects, estimates, expectations may be ‘forward - looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference of the Companys operation include economic conditions affecting demand.