Abbott India : Annual Report 2021-22 (PDF, 10.9MB)

ABBOTT INDIA LIMITED

ANNUAL REPORT 2021-22

ENRICHING LIVES,

EVERYDAY

TABLE OF CONTENTS

CORPORATE OVERVIEW

2	About Abbott India
4	Product Profile
6	Our Business Case
8	Chairman's Message
10	10-year Financial Highlights

Enriching Lives of
Read more 16
Our Patients through

Corporate Overview

Statutory Reports

Financial Statements

Notice

ENRICHING LIVES,

EVERYDAY

12	Managing Director's Message
14	Key Performance Indicators
16	Customer Centricity
20	Knowledge Sharing
22	People

TRENDS IMPACTING VALUE CREATION

1. Operating Environment

1. Strategic Priorities

1. Business Model

ESG

34 Environment

1. Social - Community

1. Governance

1. Board of Directors

1. Senior Leadership Team

STATUTORY REPORTS

44 Board of Directors' Report and Management Discussion and Analysis

1. Business Responsibility Report

1. Corporate Governance Report

FINANCIAL STATEMENTS

101 Independent Auditor's Report

1. Balance Sheet
2. Statement of Profit and Loss
3. Statement of Cash Flows

1. Statement of Changes in Equity
2. Notes to the Financial Statements

168 NOTICE

Holistic Solutions

Enhancing Customer Read more 20

Experience through

Scientific Knowledge

Protecting a	Read more	34
Healthy Environment

for Us All

78T H	Date: August 10, 2022
Time: 9.30 a.m.
A N N UA L	Through Video Conferencing
G E N E R A L
(VC)/Other Audio-Visual
M E E T I N G
Means (OAVM)

FORWARD-LOOKING STATEMENT

In this Annual Report, we might have disclosed forward-looking statements that set out anticipated results based on the management's plans and assumptions. We cannot guarantee that these forward-looking statements will be realized, although we believe we have been prudent in our assumptions. The achievements of results are subject to risks, uncertainties, and inaccurate assumptions. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

References to "Abbott India" in this Annual Report shall mean "Abbott India Limited" or "the Company".

At Abbott India Limited, we strongly believe that quality health is critical to enriching the world around us. We are happy and proud to play a part in building a healthier and better world.

We are consciously designing products and solutions to help ensure maximum access and affordability because a sustainable future starts with health, and that the best medical solution is the one that helps the most people. We have made a choice to create holistic healthcare solutions that address the entire continuum of care and help us bring meaningful change in people's lives.

During last year, we were able to enrich our performance despite the challenges around us, and we continued to explore new avenues. Our relentless focus to provide value for all our stakeholders helped us in delivering consistent growth and strong returns.

Through constant innovations in our products and offerings, we have been able to enrich our value delivery to our customers who depend on our solutions every day - be it patients or doctors. We play a key role in helping society and the people around us. Our commitment to our people, the environment and community remains as strong as ever.

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Abbott India Limited

ABOUT ABBOT T INDIA

Corporate Overview

Statutory Reports

Financial Statements

Notice

EVOLVED OFFERINGS FOR OUR CUSTOMERS

We have over seven decades of unparalleled experience in offering high-quality treatment and services. As a leader in the industry, we need to be fast, agile and more competitive than ever. That's why our product portfolio caters to therapies and indications that will lead the healthcare ecosystem. Our differentiated offerings reflect our drive for sustained innovation that will help make people's lives healthier.

WOMEN'S HEALTH

We are committed to supporting women in India through every stage of their lives - from menarche, pregnancy and menopause support to changes after that. Over the last few years, we have built our legacy brands for pregnancy and are currently shaping the menopause, labor management and endometriosis therapies.

METABOLICS

The thyroid category has many undiagnosed patients, and our path-breaking work in this space for over a decade has helped shape the therapy along with improving diagnostic screenings and scientific engagements.

We offer treatment for conditions such as hypothyroidism and continue to focus on the metabolic health space to evolve newer sub-therapies.

CENTRAL NERVOUS SYSTEM (CNS)

We continuously strive to reduce the impact that diseases of the central nervous system have on people's lives. Our CNS portfolio help people better manage their acute as well as chronic problems. Our main products in this therapeutic area are indicated for vertigo, epilepsy, migraine and depression.

IMPROVING THE

HEALTH OF INDIANS

GASTROENTEROLOGY

Aligned with our purpose to harness and nurture the promise of human potential, our offerings in the gastrointestinal space span the spectrum of gastrointestinal health, provide solutions for every age and stage, and address all areas of gut care. Our products in this portfolio cater to ailments covering the

VACCINES

We are tackling some of the world's most pressing healthcare challenges and we focus on vaccines that help alleviate the disease burden of vaccine preventable diseases. Our portfolio caters to the immunology segment with products targeting influenza, typhoid, diarrhea and hepatitis A.

Abbott India Limited, a publicly listed company and subsidiary of Abbott Laboratories, USA,

is committed to providing quality healthcare through a mix of global and local products for people in India. Our in-house development and medical teams work on product and clinical development, targeted to the specific needs of Indians. Our 3500+ strong human capital use cost-effective processes to develop high-quality,high-volume formulations.

We endeavor to maintain the highest level of quality throughout our business. This effort starts with the sourcing of materials and moves through how we market, sell,

and supply our products, including through our business partners - delivering excellent quality is imperative every step of the way.

Our commitment to the health and safety of the people who use our products is always at the forefront of everything we do. We have been helping people lead better lives through our trusted medicines and solutions for over 75 years, and we will continue to do so.

gastrointestinal tract from the stomach to intestines and associated organs. Our differentiated offerings in this area are indicated for constipation, irritable bowel syndrome, pancreatic exocrine insufficiency, dyspepsia and gut health.

MULTI-SPECIALTY

A healthy body enables us to live well. To ensure that people can live their best possible lives, our multi-specialty portfolio caters to a wide range of conditions-be it a headache or lack of sleep. Our differentiated products range from pain management, pre-term labor, vitamin D (liquid and gummy bears), and insomnia for overall well-being.

CONSUMER HEALTH

We are always looking to the future, anticipating changing consumer needs. Putting our customers at the center of everything we do, we are building our consumer portfolio strategically for relevance to where medicine and technology, our markets, customers, and health consumption are heading. We provide a range of Consumer Health products including antacids (in tablets, syrups and stick packs), laxatives and pain reliever spray.

₹4,919 Crores	₹1,165 Crores	₹799 Crores
Revenue, +14.1%	EBITDA, +16.2%	PAT, +15.6%

OUR ENVIRONMENT ACHIEVEMENTS FOR FY 2021-22

KPI	TARGET	UTILIZED	RESULT AGAINST THE TARGET
Water (KL)	48,615	46,869	1,746 KL less water used
CO2 (MT)	4,809	4,808	1 MT less CO2 emission

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Annual Report 2021-22

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Abbott India Limited

PRODUC T PROFILE

HOLISTIC SOLUTIONS

FOR BETTER HEALTH OUTCOMES

We have been successful in sustaining leadership in the areas we operate. A large number of our high-performing brands are market leaders (at number 1 or 2 positions)* in their respective therapy segments. We continuously endeavor to identify emerging healthcare needs and invest in innovative solutions to help shape a new-age healthcare ecosystem.

NEW PRODUCTS LAUNCHED

Brivetoin Solution (epilepsy), Havshield (hepatitis A vaccine), Femoston 2/10 (postmenopausal symptoms), Riligol (post-partum haemorrhage), Vertin DT (vertigo), Florachamp (probiotic for irritable bowel syndrome), Preservgest (pregnancy maintenance), Cremaffin Stick Pack (constipation), Digene Stick Pack (acidity), Arachitol Gummies (vitamin D supplementation)

*Source: IQVIA: MAT March 2022

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Corporate Overview

Statutory Reports

Financial Statements

Notice

KEY BRANDS

Duphalac (constipation), Digene (antacid), Vertin (vertigo), Influvac (prevention of influenza), Thyronorm (hypothyroidism), Creon (pancreatic insufficiency), Duphaston (miscarriage and IVF), Udiliv (cholestatic chronic liver disease), Brufen Power Spray (analgesics)

Arachitol (vitamin D deficiency), Pankreoflat (indigestion), Librax (irritable bowel disease), Heptral (liver disease), Zolfresh (insomnia), Prothiaden (pain & depression), Ganaton (gastrointestinal dysmotility), Duvadilan (preterm labor), Cremaffin Plus (constipation), Cremaffin (constipation), Colospa (irritable bowel disease)

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Abbott India Limited

OUR BUSINESS C ASE

Corporate Overview

Statutory Reports

Financial Statements

Notice

SHARING GROWTH AND ACTIONING

POSSIBILITIES

STEPPING UP OUR DELIVERABLES

Differentiated new product introductions for key therapy areas

Increasing use of digital technology to support doctors and patients

Robust distribution networks and process developments to ensure timely outcomes

MARKET SHAPING INITIATIVES

To promote therapy leadership and achieve market- beating growth, it is crucial to shape important therapies.

Our initiatives in therapies like Thyroid disorders, Women's Health, Vaccines, etc. have helped improve brand focus and unlock growth opportunities while delivering more evolved outcomes for a larger number of patients.

PILL PLUS OFFERINGS

We aim to drive differentiation for doctors and better outcomes for their patients by engaging across the continuum of care. Our constant interactions with our partners and stakeholders allow us to identify their unmet needs and deliver innovations that help patients lead a healthy life.

Our value is not limited to providing high-quality, safe medicines but extends to providing solutions for better patient education, faster diagnosis and increased medication adherence.

RESILIENT SALES FORCE

The 3,000+ member resilient sales force are passionate and committed to making a difference through consistently engaging with the medical fraternity to drive growth of the Company. Further, we have empowered the sales force and equipped them with effective digital tools to drive seamless engagement.

RESPONSIBLE CITIZEN

We are a responsible corporate citizen and trusted partner. We consistently take steps to protect and safeguard the environment for our people and customers.

We invest in long-termwell-being and development of our associates and communities.

ROBUST FINANCIALS

The strength of our business model has been consistently translating into superior financial performance. We have

consistently been able to drive double digit EBITDA and net

profit margins. We have generated strong return to each rupee invested in the business.

Proven scientific expertise, holistic solutions beyond the pill and stakeholder centricity make Abbott India an enduringly successful company. We prioritize purpose, profitability, and progress in equal measure, which makes us a responsible and prudent growth and investment vehicle for investors.

STRONG PARTNERSHIPS

We have built a strong network of valued partners over the years of our operations in India. Our trusted partners in the government, educational institutions, NGOs and healthcare professionals help us deliver better products,

11.4%

Revenue from Operations

DIVERSIFIED OFFERINGS

To cater to diverse and different range of health needs, we offer comprehensive range of products across multiple therapeutic categories, including Women's Health, Gastroenterology, Neurology, Thyroid, Diabetes, Pain Management, General Care, Vitamins and Vaccines.

SCIENCE BASED BRANDED PORTFOLIO

Our broad portfolio of over 125 products has been consistently outpacing industry growth. Our top 15 brands are leaders* (positioned at #1 or #2) in their respective segments and contribute to over 80% of the Company's core business.

ENTERING NEW MARKETS/NEW THERAPIES

NEW PRODUCTS LAUNCHES

Introduction of new drugs and entering new therapeutic areas will continue to be driven by the need-gaps in the healthcare pipeline. We are consistently working towards identifying new opportunities.

We expanded the breadth of our key portfolios and introduced 10 new products this year in different therapeutic areas - Women's Health, Gastroenterology, Central Nervous System,

shape therapies, increase reach and eventually deliver better health outcomes for our customers.

ROBUST PEOPLE DISTRIBUTION NETWORK

We have a robust distribution network of more than 8,600 stockists and 60 Lakhs retailers. This network helps us to reach closer to our patients on one hand and also acts as a strong feedback channel for our products and solutions.

10 years CAGR

17.9%

EBITDA

10 years CAGR

18.6%

PAT

10 years CAGR

HIGH QUALITY MANUFACTURING

We earn trust of our customers by providing high-quality and safe products. Product quality remains one of the key differentiating factors and strongest driver of equity with doctors as well as patients. We have a world-classstate-of-the-art manufacturing plant at Goa.

*Source: IQVIA: MAT March 2022

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Multi-speciality and Vaccines.

FO CUS ON INTERN ATION AL BUSINESS

We have operations in four countries - Nepal, Sri Lanka, Maldives and Bhutan. Our focus on developing business in these neighboring countries and serving people through our quality products is increasing.

125+	8,600+	3,597	29.5%
Quality	Stockists	Employee	RoCE in
products	60 Lakh+ Retailers	strength	FY 21-22

portfolio

*Source: IQVIA: MAT March 2022

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