Dear Shareholders,
It gives me great pleasure to present the Annual Report for Novartis India Limited for
the year 2024. This year, India finds itself on the brink of a significant economic
transformation. The International Monetary Fund (IMF) projects a GDP growth rate of 6.8%
for India in 20241. This growth is driven by increased domestic consumption,
strategic reforms, and remarkable advancements in the digital landscape. As our economy
expands, it is clear that healthcare is poised to be a critical driver of this growth
narrative. In recent years, the government has placed renewed focus on healthcare,
exemplified by initiatives such as Ayushman Bharat and increased public health
expenditure. These efforts underscore the essential role of a healthy populace in
fostering economic prosperity.
In 2024, key healthcare trends that I believe are significantly reshaping the Indian
landscape are:
a. Increase in Private Insurance Adoption: India's growing middle class and
increased awareness of healthcare needs have resulted in a surge in private health
insurance adoption. In fact, the gross written premium is anticipated to experience a
compound annual growth rate (CAGR) of 6.76% between 2024 and 2028.2 This shift
not only provides financial security to millions but also drives the demand for quality
healthcare services and innovative treatments.
b. Empowered Patients Making Informed Decisions: The digital revolution and easy
access to information have empowered patients to make informed healthcare decisions. This
patient-centric care trend strengthens the healthcare ecosystem and transforms the
doctor-patient relationship by fostering transparency and improving health outcomes.
c. Value and outcome-based decision-making over price: As patients and caregivers
increasingly have a voice in their treatment, they seek the best health outcomes. Many of
them have gradually started demanding innovative and advanced treatment options. One can
also correlate this trend with the evident increase in income levels. With this higher
quality care and competitive pricing, India has also emerged as a preferred destination
for medical tourism, attracting patients from around the world. For instance, given the
advances in medical technology and expertise, organ transplants have been on the rise in
India.
At Novartis India Limited, we believe that true progress encompasses not only financial
success but also contributions to societal well-being. Our commitment to social
responsibility is unwavering, and we are guided by principles of sustainable development
and equity. Our continued dedication to eradicating leprosy and supporting rehabilitation
initiatives exemplifies this philosophy.
Despite significant progress in reducing the prevalence of leprosy, India still
accounts for 60% of the world's leprosy cases. Leprosy, often accompanied by stigma and
discrimination, necessitates a comprehensive approach that involves early detection,
effective treatment, and socio-economic rehabilitation for those affected. Aligned with
Sustainable Development Goal 3, which aims to ensure healthy lives and promote well-being
for all at all ages, Novartis India Limited has intensified support for such initiatives.
As you read the testimonial stories of beneficiaries in this report, I am confident that
you will share in my pride.
Before concluding, I would like to take a moment to acknowledge the resilience
demonstrated by Novartis India Limited. One can't ignore the sustained headwinds faced by
the pharmaceutical industry in India owing to both policy and operating environments.
Despite that, our journey continues to be guided by a deep sense of purpose and
responsibility towards our stakeholders, our community, and the planet. I extend heartfelt
gratitude to our employees, partners, and shareholders for their unwavering support and
dedication. Together, we will continue to inspire and positively impact lives, ensuring a
healthier and more equitable future for all.
On behalf of the Board of Directors, I am pleased to reiterate our commitment to
delivering shareholder value. Therefore, the Company's Board of Directors propose ? 25 per
equity share of ? 5 face value per equity share at the upcoming Annual General Meeting,
subject to approval by the shareholders of the Company.
Thank you for your continued confidence in our Company. I eagerly anticipate your
ongoing support in the years ahead.
Sincerely,
Christopher Snook
Chairman