Vilin Bio Med Ltd Management Discussions

The Management Discussion and Analysis present the Industry overview, opportunities and threats, the Companys initiatives and overall strategy of becoming a market-driven service provider with various offerings. The Company is optimistic about capturing a substantial share of the global and domestic market amid the threats faced due to the liberalisation and increased competition from well-established companies from India and abroad.

Global Economic Outlook

The estimated value of the global (Contract Research Organization) CRO services market in revenue for 2023 is $76.6 billion, with a projected growth to reach $127.3 billion by 2028, representing a compound annual growth rate (CAGR) of 10.7% from 2023 to 2028. This growth is primarily attributed to factors such as the continuous expansion of pharmaceutical, biopharmaceutical, and medical device R&D pipelines, as well as technological advancements in the clinical trials process. Additionally, the increasing demand for novel clinical trial designs to support cell and gene therapies is expected to create growth opportunities for companies operating in this market. The global pharmaceutical market is now estimated to be over USD 1.6 trillion and expected to grow at CAGR of about 6% Though the pharmaceutical industry is developing at rapid pace, the pharmaceutical manufacturing companies are confronted with enormous challenges such as: Cost & Pricing, New Medicines & Therapy dosages, changing regulatory landscape & growing digitization. Indian pharma market is expected to grow to USD 130 Billion by 2030 thereby emerging as the 6 largest pharmaceutical market globally by absolute size. The growth of the pharmaceutical industry is globally driven by ageing population as well as about 1% increase in the global population at the same time

Indian Economy

Indias GDP growth rate was 6.4% during FY 2023 due to a combination of factors such as expected global economic slowdown, strict monetary policies, and high oil prices. Despite these obstacles, Indias growth rate remains higher than that of comparable economies, primarily due to strong domestic consumption and lower dependence on global demand. The Indian pharmaceutical industry has been experiencing steady growth with a focus on generic medicines. It is expected that spending on pharmaceuticals in India will continue to increase, with a CAGR of 7.5 10.5% between 2023-27 to reach US$ 35-39 Billion annually. The industrys continued focus on generics is a key factor to its growth, as they are typically priced lower than branded medicines. The industrys low-cost structure and its ability to produce large quantities of medicines have also made it a key player in the global pharmaceutical market. India is the largest provider of generic drugs globally and is known for its affordable vaccines and generic medications. The Indian Pharmaceutical industry is currently ranked third in pharmaceutical production by volume after evolving over time into a thriving industry growing at a CAGR of 9.43% since the past nine years. Generic drugs, over-the-counter medications, bulk drugs, vaccines, contract research & manufacturing, biosimilars, and biologics are some of the major segments of the Indian pharma industry. India has the most number of pharmaceutical manufacturing facilities that are in compliance with the US Food and Drug Administration (USFDA) and has 500 Active Pharma Ingredients (API) producers that make for around 8% of the worldwide API market. Indian pharmaceutical sector supplies over 50% of global demand for various vaccines, 40% of generic demand in the US and 25% of all medicine in the UK. The domestic pharmaceutical industry includes a network of 3,000 drug companies and ~10,500 manufacturing units. India enjoys an important position in the global pharmaceuticals sector. The country also has a large pool of scientists and engineers with a potential to steer the industry ahead to greater heights. Presently, over 80% of the antiretroviral drugs used globally to combat AIDS (Acquired Immune Deficiency Syndrome) are supplied by Indian pharmaceutical firms. India is rightfully known as the "pharmacy of the world" due to the low cost and high quality of its medicines.

Manufacturing

Our Sales Strategy is to sell our products in bulk to Pharmaceuticals Manufacturers, Marketers and Traders, who in turn provide the channel for sales to customers. Our products are primarily used by other pharmaceutical companies and traders, who ultimately will market it to the distributors and retail customers. We do not sell our products under any brand name. Following are our major products (manufacturing dosage forms):

? Oral Liquid (Syrups/Suspensions/Dry Powders (ßeta & Non ßeta-Lactam)

? Tablets & Capsules (ßeta & Non ßeta-Lactam). ? External Preparations

Opportunities, Threats and Outlook

Vilin Bio Med Limited will be able to place itself in a strong position by expanding strategically, increasing its manufacturing capacities and enhancing capacities across the organization. The Company is looking at different opportunities in untapped markets and across a value chain. It plans for alliances with business associates in the Indian 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 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. Also, the majority of the new entrants in an already overcrowded market is the major threat to the Company These can affect the profitability of established players in the short run. In the long run, however trusted players with strong brand equity will continue to prosper.

Internal control systems & their adequacy

The Company has strong and adequate internal control system suitable to its size and nature of business. We constantly upgrade our systems for incremental improvements. The Audit Committee of the Board regularly reviews our system. The systems ensure protection of assets and proper recording of transactions. Internal audit is carried out by an independent chartered accountants firm on quarterly basis. The internal auditors reports are regularly received by the Audit Committee. It is a regular practice to review the issues raised by statutory auditors by the Audit Committee.