Granules India : Annual Report – FY21-22

Contents

GRANULES AT A GLANCE

FY 2021-22 highlights	02
Company overview	04
Our business segments	06
Geographic footprint	08
Journey	10

YEAR IN REVIEW

Key performance indicators	12
Chairman's message	14

LEVERS OF GROWTH

Strengthening the core	16
Building technology platforms	18
Manufacturing excellence	20
Research and development	22

GROWING SUSTAINABLY

ESG approach	24
Environmental performance	26
Social	28
Governance	30
Recognitions	39

STATUTORY REPORTS

Management Discussion and Analysis	40
Board's Report	52
Corporate Governance Report	70
Business Responsibility Report	92

FINANCIAL STATEMENTS

Standalone Financial Statements		100
Consolidated Financial Statements	168
Notice of the AGM		234
Corporate Information	Inside Cover

Transforming with science and technology

Innovation | Excellence | Sustainability

Science and technology form the backbone of pharma manufacturing.

At Granules India, our spirit of innovation is helping take the business to the next level. Technology will play a critical role in enhancing and optimising capacities, capabilities, processes and quality standards while ensuring cost efficiency for the business and our customers. Extensive and advanced level research and development will keep our product pipeline robust with a diverse range of cost-effective offerings. Excellence is a moving target at Granules. This means that we are continuously calibrating our core and strengthening strategies to deliver more. To become a business that stands for more than profitability and helps create positive impact in

the industry, we are adopting and embedding sustainable practices across our operations. Our core focus remains on transforming with times and to this end, we will continue to overrule the status quo and think anew.

Granules at a glance

Year In review

Levers of growth

Growing sustainably

Statutory Reports

Financial Statements

FY 2021-22 Highlights

Operational

Granules has the highest generic prescription in terms of absolute growth 17.8% in the US market

6 ANDA approvals from USFDA, and additional approvals for 1 EU dossier and 2 Canadian dossiers

Launched 24 generic products under

GPI label in US

Filed 2 patents in India directed towards new process for manufacturing intermediates and /or APIs, purification and pharmaceutical composition thereof

USFDA approval for generic Prazosin Hydrochloride capsules used for the treatment of high blood pressure

Financial

Environmental

Social

Governance

` 3,76,492 Lakhs	3,72,589 KL	10%	100%
Income from Operations	Water consumption	Women employees	Shareholder Grievance
			Resolved
` 72,223 Lakhs	76,25,239 kwh	68%	98%
EBITDA	Renewable energy share	Permanent workforce
			Average board meeting
19.2%	81,111 KL	` 9.13 Cr	attendance
EBITDA Margins	Recycled water used	CSR expenditure	50%
` 41,276 Lakhs			Independent directors
		on board
PAT
` 16.66
EPS
1.64
Asset Turnover

2

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Granules at a glance

Year In review

Levers of growth

Growing sustainably

Statutory Reports

Financial Statements

COMPANY OVERVIEW

For quality healthcare that transforms lives

VISION

To be the global leader in pharmaceutical manufacturing by process innovation and unparalleled efficiencies.

VALUES

Integrity

We consistently adhere to moral and ethical principles in our thinking as well as actions while conducting our business

Quality

We strive to maintain the highest standards in our products, processes and system all the time

Granules India Limited is among India's largest pharma manufacturing companies with over three decades of experience in manufacturing high quality pharmaceutical products. We produce Active Pharmaceutical Ingredients (API), Pharmaceutical Formulation Intermediates (PFI) and Finished doses (FD) and the same are marketed across key markets of North America, Europe, India and Latin America. Powered by vertical integration, scale, manufacturing excellence, focused execution and cost leadership through continuous innovation, we offer high quality, affordable medicines to people across the world.

We have built one of the largest PFI and single site FD facilities in the world. Our's is the world's largest Paracetamol API facility. We have state-of-the-art research and development centres in Hyderabad and Virginia.

		renti	at
	e	o
if
D				r	s

A vertically integrated

business model enabling

our rise as a global

pharma player

Growth-oriented stable	Facilities that can
portfolio of APIs, PFIs	accommodate capacities
and FDs to cater to	of 24,640 TPA in PFIs to
large-scale global	leverage economies
demand	of scale

Dedicated and seasoned

MISSION

Our drive to be the best is unparalleled. We will match our drive by partnering with global leaders in

our markets, building lasting relationships, and foundation for mutual growth and success.

Improvement	People
We systematically enhance	We cultivate a conducive work
value of our products,	environment where every
processes and services in	employee feels excited and can
pursuit of excellence	realise their potential
Customer Centricity
We focus on our energies towards
understanding and addressing customer
expectations thereby building lasting
business relationships

R&D team focused on developing a diverse range of cost-effective drugs

80+	7	facility in the	5,000+	60+	24,640 TPA of PFI
		Largest PFI			39,360 TPA of API
Countries where	Manufacturing	world	Employees	ANDA filings	23.3 Billion dosages of
we operate	plants
			FD Installed Capacity

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Granules at a glance

Year In review

Levers of growth

Growing sustainably

Statutory Reports

Financial Statements

OUR BUSINESS SEGMENTS

Enhancing efficacy. Diversifying oferings.

Over the years, we have established a strong presence across the healthcare value chain. Our global-scale operations within API, PFI and FD will focus on achieving cost efficiencies and continuous innovation to remain on the cutting edge of supply chain, manufacturing and

PHARMACEUTICAL FORMULATION INTERMEDIATES (PFI)

With a batch processing capacity of 6 tonnes, we are among the largest PFI manufacturers in the world. We pioneered the commercialization of PFIs, to optimise cost economics of products. This enabled Granules to become a preferred PFI supplier for some of the most renowned global pharma companies. We use our facilities at Jeedimetla and Gagillapur to process the intermediaries and compress them into finished doses.

Revenue (` in Lakhs)

22%

Revenue from

PFI business

42,140 62,619

84,556

operational efficiency.

FY20 FY21 FY22

ACTIVE PHARMACEUTICAL INGREDIENTS (API)

APIs are a key focus area at Granules, which helped us emerge as the key manufacturer and supplier of Paracetamol, Metformin, Guaifenesin, and Methocarbamol. We are among the most efficient and cost-effective manufacturers in the world, offering a specialized API portfolio. We work to enhance our API manufacturing capabilities to add new products to our portfolio pipeline.

Revenue (` in Lakhs)
81,707	91,242	97,513

FINISHED DOSAGES (FD)

Revenue (` in Lakhs)

FY20 FY21 FY22

The existing portfolio that includes Caplets, Tablets as well as Press-fit Capsules in Bulk, Blister packs and Bottles contribute to over half of our revenue. They are manufactured at our state-of-the-art facility at Gagillapur. This unit is equipped with automated processes, robust infrastructure and superior quality systems to efficiently produce finished dosages that are marketed across 80+ countries.

52%
Revenue
from FD		1,94,423
1,36,018	1,69,893
FY20	FY21	FY22

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