Neuland Laboratories Ltd

Dear Shareholders,

As I reflect on Neuland's journey it leads me to reiterate a few things which many of you may be aware of, but it is important to state them again. From the very beginning my purpose has been to build a quality conscious pharmaceutical company high on integrity. At that time, the task seemed herculean as a lot of the basic expectations were not met by the industrial environment in India.

My educational background and experience in the industry helped me envision such a company. Employee safety and well-being were embedded into the organisational DNA even as we began operations. While Neuland has always been conscious of the environment, I was able to contribute significantly from the 90s to ensure the Patancheru area was ecologically safe. Even as I think there is still some way to before my initial vision is fully realised, I am grateful for the journey and those who have been part of it as we have completed 40 years as an organisation.

I am mindful that a few companies get to cross this milestone and that this is a result of contribution from all our key stakeholders. I particularly want to thank the government authorities and the banks that played an instrumental role during the initial years of

Neuland's journey when capital was limited, and we had very few partners.

Even as FY24 is a landmark year in terms of performance, I see it as the result of the journey that we have taken over the last 40 years. Reaching where we are today meant that we went through certain failures, which were the basis for learning and the building of a stronger Company.

While we had a certain direction in mind, the execution in terms of how things fell into place took longer than we anticipated due to reasons both internal and external. Internally, we have realised the need to build robust capabilities in R&D, Quality and Manufacturing, even as we prioritised Project Management as a function to ensure agile delivery. Having said that, the strategy that we have been pursuing over the last fifteen years has enabled us to move away from low-margin products and consequently reduce debt. We have been able to develop a portfolio of complex specialty APIs like Paliperidone Palmitate, Salmeterol, Apixaban while working with innovators on novel therapies.

Despite having seen this transformation in terms of the business, we recognise the need for multifaceted development. While the strategic priorities have provided the structure for our actions over the last three years, sustainability is now increasingly becoming integral to our strategy and operations.

Over the last few years, we have consciously and formally worked on several sustainability initiatives and have offered to get rated by reputed agencies such as S&P Global and EcoVadis. We have been writing about them regularly in our annual and our sustainability reports. This Integrated Report is one major milestone in this regard as it presents our readers with an improved understanding of how our organisation's ability to create, preserve or loose value are linked to other stakeholders, society and natural environment.

You would have seen me emphasise the importance of our people and the need to continuously develop the organisation so that we can sustain growth ambitions. The leadership team has dedicated significant time in the past year to advance our people initiatives. We have had senior members of the team embark on individual development plans so that they are prepared to take on even more responsibilities and we can build a more robust leadership pipeline.

At the other end of the spectrum, we are continuing to focus on the management trainee program and in the previous year, we have embarked on a structured induction process for hires across all the levels, along with relevant learning calendars throughout the year. We place a strong emphasis on people as we will need to have a strong organisation for the growth journey that we envisage.

As stated earlier, Neuland is committed to upholding the highest standards of governance and ethics. We prioritise compliance with applicable laws and regulations, recognising the importance of strong institutional governance and risk frameworks in protecting the interests of our stakeholders. Since becoming a public limited entity 30 years ago, our Board has consistently maintained a balanced composition of skills, capabilities, and diversity to fulfil its responsibilities. We are continually assessing and enhancing our governance structures to ensure they encompass robust controls, enable effective decision-making, and align with evolving best practices, both locally and globally.

Looking ahead, I firmly believe that Neuland is well positioned not just for significant growth but also for being recognised as a leading sustainable service provider in the pharmaceutical space. Our strategic priorities are aligning us more closely with our customers and driving Neuland's transformation as a stronger and more agile entity. Customer centricity has been at the core of Neuland's intent, and we continue to make every effort to serve customers in a more responsible way. Our ongoing investments, robust product pipeline and strong reputation in the pharmaceutical sector further underpin our ability to deliver long-term value. We are continuously working on our plans for the medium- to longterm, which will entail significant decisions with respect to enhancing capabilities and capacities. As we complete 40 years, I look forward to a new decade where Neuland plays an increasingly crucial role in enabling a healthier world.

Our Company remains committed to enhancing value for our shareholders. This year, our Company has announced the highest ever total payout of dividends in the last three decades.

Once again, I want to express my heartfelt gratitude to our esteemed customers, bankers, vendors, the regulatory authorities, other partners, and my fellow board members. I also express my deepest appreciation to our employees for their hard work and dedication. At Neuland, we remain steadfast in our commitment to collaborating with all our stakeholders to produce high- quality pharmaceuticals and enabling a healthier world.