Lupin Limited Annual Report FY2020
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Taking the Lead Annual Report 2019-20 Our founder, Dr. Desh Bandhu Gupta believed in Tagore’s maxim that ‘Life must not be the infinite elongation of a straight line.’ This is more true today than ever before, as we see every line of Society and the Economy being stretched or bent, if not broken. DBG believed that the broadest shoulders must carry the heaviest burdens. We are humbled and honored that we can be counted on to take the lead at this time – to bring new products and therapies to market, to ensure access to affordable, quality healthcare, to guarantee the safety and well-being of all our stakeholders and to wholeheartedly give back to Society. Count on us to take the lead Contents Corporate Overview Statutory Reports 2 A Tribute to Our Founder 48 Directors’ Report 4 Our Global Footprint 84 Corporate Governance Report 6 Pharma in a COVID-19 World 103 Independent Auditor’s Certificate 8 Financial Highlights on Corporate Governance 10 Chairman's Letter 104 Business Responsibility Report 12 Vice Chairman's Letter 14 CEO & MD’s Letter Financial Statements 16 United States 117 Independent Auditor's Report 18 India on Consolidated Financial 20 Latin America Statements 21 Asia Pacific 126 Consolidated Financial 22 Europe, Middle East and Africa Statements 24 Active Pharmaceutical Ingredients 210 Independent Auditor's Report on Standalone Financial 26 Research and Development Statements 30 Global Manufacturing & Supply Chain 220 Standalone Financial 33 Quality and Compliance Statements 34 Environment, Health and Safety 36 Financial Review 38 Human Resources 40 Corporate Social Obligation 42 Board of Directors 44 Awards & Recognitions 45 Corporate Information 46 Ten Year Financial Summary in the U.S. by in Anti-Hypertensive #3 Prescriptions #1 Segment in the U.S. in 63 Products Brands in the # in the U.S. Top 100 Brands 1 3 of India Employees need to imbibe a limited headcount and ensuring safety-conscious mindset and be 100% productivity at sites. We Across Chronic Generic Player in receptive to changes in working see upskilling of talent and ##Therapies in India Australia and patterns and privacy norms with equipping our people with South Africa health and travel declarations abilities to work remotely, with 4 becoming common. Companies a deeper understanding of 4 will also have to balance the twin digital possibilities but still imperatives of maintaining retaining the Lupin spirit. Dr. Desh Bandhu Gupta 1938 – 2017 Founder and Former Chairman Employees need to imbibe a limited headcount and ensuring safety-conscious mindset and be 100% productivity at sites. We receptive to changes in working see upskilling of talent and patterns and privacy norms with equipping our people with health and travel declarations abilities to work remotely, with becoming common. Companies a deeper understanding of will also have to balance the twin digital possibilities but still imperatives of maintaining retaining the Lupin spirit. 02 Corporate Overview Statutory Reports Financial Statements Dr. Desh Bandhu Gupta (DBG, as we all call him) was a visionary, with a compelling view of the future, for Lupin and for India. He was deeply committed to the idea of India that he envisioned – a technological powerhouse and an inclusive nation, leading the world. Lupin today bears his flag of ambitious optimism, relentless passion, and public spiritedness, as it takes on global challenges in Research, Manufacturing and Marketing. DBG always said investing in his people and contributing to their overall development is what makes us powerful. Lupin is a formidable influence in the world today, with our unique culture of empowered employees working towards a collective goal. The path we walk is paved by DBG’s values that influence every decision and engagement with our team, customers, and society. Right from the start of the COVID-19 pandemic, as in our business, our actions demonstrated the amazing spirit of our Lupinytts, the relentless “never give up” attitude that we learnt from DBG, living by his words, “I firmly believe that Lupin is a great company with great people doing great work.” Our single-minded goal through the COVID-19 crisis has been to ensure that we can be counted on to take the lead – to ensure access to our affordable, quality products, to guarantee the safety and well-being of all our people, and to give back to Society. We have a lot to do. Make ourselves stronger. Grow faster. And to do all this sustainably, creating a benchmark of excellence in research and manufacturing in a rapidly changing world. Building a pharmaceutical giant for India, and the World. DBG’s belief in people, deep concern for the good of Society and a Company based on values, made him deliver the unimaginable. Today more than ever, we see what DBG saw a long time ago – Lupin is not just a business, it is a vehicle to do good for Society. Employees need to imbibe a limited headcount and ensuring safety-conscious mindset and be 100% productivity at sites. We receptive to changes in working see upskilling of talent and patterns and privacy norms with equipping our people with health and travel declarations abilities to work remotely, with becoming common. Companies a deeper understanding of will also have to balance the twin digital possibilities but still imperatives of maintaining retaining the Lupin spirit. Lupin Limited | Annual Report 2019–20 03 Our Global Footprint Manufacturing Research USA New Jersey Florida Mexico Brazil Quality, Manufacturing & Compliance: India: Aurangabad, Ankleshwar, Dabhasa, Goa, Indore, Jammu, Mandideep, Nagpur, Pune, Sikkim, Tarapur & Vizag U.S.: New Jersey; LATAM: Mexico & Brazil Research: India: Pune & Aurangabad; U.S.: New Jersey & Florida Employees need to imbibe a limited headcount and ensuring LATAM: Mexico & Brazil; Europe: Netherlands safety-conscious mindset and be 100% productivity at sites. We receptive to changes in working see upskilling of talent and Marketing & Corporate Development: patterns and privacy norms with equipping our people with health and travel declarations abilities to work remotely, with More than 20 offices across the globe becoming common. Companies a deeper understanding of will also have to balance the twin digital possibilities but still imperatives of maintaining retaining the Lupin spirit. 04 Corporate Overview Statutory Reports Financial Statements Netherlands India The Philippines Jammu Sikkim Indore Dabhasa Mandideep Ankleshwar Aurangabad South Africa Tarapur Nagpur Pune Australia Vizag Goa Employees need to imbibe a limited headcount and ensuring safety-conscious mindset and be 100% productivity at sites. We receptive to changes in working see upskilling of talent and patterns and privacy norms with euippi our peope ith health and travel declarations abilities to work remotely, with becoming common. Companies a deeper understanding of will also have to balance the twin digital possibilities but still imperatives of maintaining retaining the Lupin spirit. Lupin Limited | Annual Report 2019–20 05 Pharma in a COVID-19 World Leading the Change A humanitarian crisis of the scale of the COVID-19 pandemic presents times of great uncertainty and change. While industries and individuals are grappling with the challenges, the global pharmaceutical industry has taken center stage in the fight against COVID-19, its contribution ranging from vaccine development, research on repurposed and novel medicines, production of testing kits, and support to frontline workers and the needy. In light of the COVID-19 pandemic, the pharma industry will also witness massive shifts in R&D, supply chain, operations, digital adoption and talent management. At Lupin, we are using this challenge as an opportunity to become more resilient, more efficient and more focused on bringing quality, affordable treatments to market faster to help improve outcomes for patients. Ensuring business continuity Being a part of Essential announcing several incentives Services, the pharma industry to set up API units to boost has been particularly At the peak of the disruption domestic manufacturing in responsive to the disruption in April 2020, Lupin sites still India and mitigate risk of caused by COVID-19 and taken delivered 90% of their supply chain shocks from exemplary and expedited steps formulations target and 120% external sources. At Lupin, we to ensure business continuity. In of their API target are using this opportunity to fact, the Operations model of reassess our manufacturing pharma companies has become footprint, de-risk in-line a ready working model for A March 2020 survey conducted products and engrain resumption of manufacturing by the Institute for Supply Chain flawless execution as a operations across industries. Management, stated that nearly key differentiator. Overcoming input material 75% of companies reported disruptions and logistic supply chain disruption in one challenges, our commercial and Lupin has less than 30% operational teams at Lupin are form or the other due to coronavirus-related dependence on early raw working closely with our materials and intermediates customers and government transportation restrictions. agencies to ensure that we are Companies across sectors are from China and our supply able to maintain a consistent reevaluating their strategies to chain ensured that we supply of our products, address supply chain risks. The remained insulated from including those for the Government of India has supply disruption treatment of COVID-19. indicated its support by Safeguarding the health and safety of our people Right at the onset of the at each site. We have seen our work or in cafeterias, to using Employees need to imbibe a limited headcount and ensuring COVID-19 crisis, we rolled out manufacturing leaders step up Personal Protective Equipment safety-conscious mindset and be 100% productivity at sites. We harmonized plans at all our and ensure that while we (PPE) at all times, they have left receptive to changes in working see upskilling of talent and manufacturing sites and continue manufacturing our no stone unturned.