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 Global Pharmaceutical Industry witnessed a transformative phase in past year, driven by Scientific breakthroughs, Demographic Shifts, Evolving Patient-needs and Rapid Digitalisation. Amidst evolving Global Health demands and Economic pressures, the Industry strengthened its foundation for long-term growth while adapting to structural changes across regions and therapeutic segments. In 2024, Global Medicine spending continued its upward trajectory, reflecting a growing demand for chronic care, specialty treatments and innovative therapies. Total Pharmaceutical spending remains on course to exceed US$ 2.3 Trillion by 2028, supported by a projected CAGR of 5 8%. While volume growth plateaued in 2023, it is expected to grow at an average rate of 2.3% through 2028, driven by emerging markets such as China, India, Southeast Asia and Latin America. These regions are poised to drive the next phase of global demand, in contrast to mature markets such as North America, Western Europe and Japan, where per capita consumption levels are already high and future growth is expected to moderate. Digital transformation has advanced across the pharmaceutical value chain in last few years. Companies are adopting data-driven tools to optimise clinical trials, enhance patient targeting and strengthen supply chains. AI-enabled drug discovery, real-world evidence platforms and integrated digital health solutions are redefining how pharmaceutical organisations engage with patients and deliver care outcomes. Operational agility has also improved, supported by advancements in modular manufacturing and predictive analytics.

Despite lower manufacturer net sales due to confidential rebates and pricing pressures, last few years have seen robust spending across key regions, driven by the launch of new brands and the expansion of innovative treatment options. Developed economies, while mature in terms of volume, have continued to invest in high-value therapeutics, contributing to a more diverse and innovation-led portfolio mix. Global disparities in per capita consumption have persisted through last few years. High-income countries like Japan and Western Europe have recorded usage levels more than twice that of lower-income regions. While consumption is gradually rising in Africa and the Middle East, challenges in infrastructure, affordability and access continue to limit growth. These persistent gaps underscore the critical need for inclusive access strategies. As cost pressures mount, particularly in developed economies, payers are recalibrating reimbursement models to ensure value-based outcomes. Efforts to moderate spending include greater emphasis on generics and biosimilars, performance-linked pricing mechanisms and cost-sharing arrangements with patients. Striking the balance between affordability and innovation remains a core priority for healthcare systems worldwide.

Indian Economy

Indias Pharmaceutical Market is projected to see strong growth, with medicine spending expected to reach US$ 38-42 Billion by 2028, with a CAGR of 7 10% from 2024 to 2028. This growth is driven by a combination of expanding access, growing demand for treatments across both acute and chronic conditions, and continued reliance on affordable generic medicines. In 2023, acute therapies such as anti-infectives and vitamins/minerals recorded notable volume increases, indicating a recovery in demand patterns. At the same time, chronic therapy areas like cardiac and respiratory treatments have sustained robust performance, supported by the rising burden of non-communicable diseases and improved diagnosis rates. Indias cost-sensitive market continues to favour high-volume, lower-cost products, with generics dominating the therapeutic landscape. However, ongoing investments in domestic manufacturing, greater healthcare outreach, and increasing Insurance coverage are expected to further support growth across therapy areas. The growth is driven by several factors, including the increasing prevalence of chronic diseases, the rising demand for generic and biosimilar drugs and advancements in drug manufacturing technologies. Additionally, the expansion of healthcare infrastructure in developing economies and the adoption of advanced technologies like Artificial Intelligence (AI) and Machine Learning (ML) in development and manufacturing are contributing to the markets expansion.

The following are the Growth Drivers of the Indian Pharmaceutical Market.

A. Government Support and Incentives various Government Schemes and Incentives, such as the Production Linked Incentive (PLI) Scheme, bolster the Pharmaceutical Industry, encouraging Investment and Growth.

B. Expertise in Low-Cost Manufacturing: Indias proficiency in Cost-effective end-to-end manufacturing processes enables competitive pricing of Pharmaceutical Products. C. Improving Affordability: Rising Per Capita Incomes contribute to the improved affordability of Healthcare and Pharmaceuticals, making them more accessible to a broader segment of the population

We 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.

Opportunities, Threats and Outlook

Vilin Bio Med Limited will be able to place itself in 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. Health, Safety, Security and Environment is always looked at with its due seriousness along with our business activities and all employees are adequately trained for taking up their individual job accountability. Vilins operations are well resourced, and they comply with the stringent and new norms of Health, Safety, Security and Environment. Safety Audits are carried out regularly by government approved consultants for the regular operations. Environmental Audits and hazard-studies were also carried out and the Statutory Reports of our compliances are submitted to regulators periodically for their review and inputs. Efforts are made at all levels to conserve energy and resources. The Company maintains a system of well-established Policies and Procedures for Internal Control of Operations and Activities. The Company has strong and adequate Internal Control System suitable to its size and nature of business.