Indoco Remedies Ltd.

Chairman's Message at the 74th AGM

September 23, 2021

Dear Fellow Shareholders,

Good Morning Everyone!

On behalf of the Board of Directors, it gives me great pleasure to welcome you all to the 74th Annual General Meeting of Indoco Remedies Ltd.

I hope you and your family members are safe and in the best of health. I wish this meeting could be face-to-face but with COVID-19 still with us, the safety of everyone is important. I appreciate your efforts for joining us today and for your continued faith in the Company.

Let me begin with the financials. In FY 20-21, the Company grew by 12.8% with revenues at ₹ 1217 crores, as against ₹ 1079 crores in the previous year. The EBIDTA to net sales is 18.4 % at ₹ 223.6 crores, compared to 11.4 % at ₹ 123.3 crores, last year. Profit After Tax is 7.6 % at ₹ 92.4 crores, as against 2.2 % at ₹ 24.2 crores, last year.

During the year, the Company launched nine new products in the domestic market and eleven in the US markets. One of the products launched in the US was the first generic. The Company also received six ANDA approvals during the year.

As on date, the Company has filed 106 process patent applications for API intermediates & Finished Dosages, out of which 42 have been granted.

During the pandemic, to ensure smooth continuity of Indoco’s domestic business, we launched our online portal E-SIM which helped our stockists to place orders online, thereby reducing the supply lead time.

To digitize and go paperless, Indoco is taking the initiative to introduce DMS (Document Management System). Indoco has also invested in systems like TrackWise and LIMS (Laboratory Information Management Systems) to improve the Quality Management system.

To meet the future growth plans, the Company has initiated SAP implementation and plans to roll it out by mid of next financial year. This will improve the speed of execution, bring in administrative and accounting efficiency, optimize demand & supply and help in complying with legal & fiscal requirements.

Despite the turbulence of the second wave of Covid-19, your Company continues to adopt measures to curb spread of infection in order to protect the health of its employees and ensure business continuity with minimal disruption. A Covid War Room under the initiative #IndocoCares has been set up across India to provide assistance to Indocoites in various forms including identifying hospitals, making medicines available, etc. For counselling the affected employees and their families, your Company has tied up with the Institute of Psychological Health (IPH) with a team of dedicated Indocoites.

On the Corporate Social Responsibility (CSR) front, your Company is committed to its social responsibility and carries out its CSR activities under the banner of 'SUMATI SANGOPAN', reaching out to the underprivileged. The Company lends a helping hand to the needy, with significant focus on the welfare of women, children and the aged in the areas of Health, Education, Sanitation, etc. The Company is striving hard to make a positive impact on the society’s welfare, thereby creating better lives for a brighter future.

One of our Board member, Mr. Sharad Upasani retired from the Board w.e.f. September 30, 2020. The Board places on record its appreciation for the valuable contribution made by Mr. Upasani as Independent Director during his tenure. Consequently, the Company appointed Mr. Abhijit Y Gore as an Additional Independent Director of the Company for a term of five years w.e.f. October 03, 2020.

The uncertainty of the next wave still prevails, however, your Company has complete confidence in its employees, partners and stakeholders for their support and trust.

On behalf of the entire Board, I sincerely, express our gratitude to all our Stakeholders, including, shareholders, customers, bankers, vendors and the medical fraternity for their continued support. I also thank all Indocoites for their valuable contribution and Shareholders for their continued support, which we value the most.

Thank You All. Stay Healthy, Stay Safe.

Suresh G. Kare