Aarti Drugs Limited

rs,

23/66 October 20, 2022 To, Listing/ Compliance Department BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai – 400 001 BSE CODE: 524348 To, Listing/ Compliance Department National St

Rs. 100 crore

Listed On National Stock Exchange of India Limited 2017 Pinnacle Life Science Pvt. Ltd. crossed Rs. 100 crores turnover 2014 2022 Consolidated Revenue Rs. 2,500 Cr 2020 Crossed Rs. 2,000 Cr Consolidated

Rs. 2,500

Pinnacle Life Science Pvt. Ltd. crossed Rs. 100 crores turnover 2014 2022 Consolidated Revenue Rs. 2,500 Cr 2020 Crossed Rs. 2,000 Cr Consolidated Turnover & Rs. 200 Cr Formulations Turnover Crossed R

Rs. 2,000

td. crossed Rs. 100 crores turnover 2014 2022 Consolidated Revenue Rs. 2,500 Cr 2020 Crossed Rs. 2,000 Cr Consolidated Turnover & Rs. 200 Cr Formulations Turnover Crossed Rs. 200 Cr consolidated PAT

Rs. 200

2014 2022 Consolidated Revenue Rs. 2,500 Cr 2020 Crossed Rs. 2,000 Cr Consolidated Turnover & Rs. 200 Cr Formulations Turnover Crossed Rs. 200 Cr consolidated PAT Crossed Rs. 1,000 crores turnover

Rs. 200

Cr 2020 Crossed Rs. 2,000 Cr Consolidated Turnover & Rs. 200 Cr Formulations Turnover Crossed Rs. 200 Cr consolidated PAT Crossed Rs. 1,000 crores turnover Entered formulation through 100% subsidiar

Rs. 1,000 crore

idated Turnover & Rs. 200 Cr Formulations Turnover Crossed Rs. 200 Cr consolidated PAT Crossed Rs. 1,000 crores turnover Entered formulation through 100% subsidiary - Pinnacle Life Science Pvt. Ltd. 1998 Cro

100%

ossed Rs. 200 Cr consolidated PAT Crossed Rs. 1,000 crores turnover Entered formulation through 100% subsidiary - Pinnacle Life Science Pvt. Ltd. 1998 Crossed Rs. 100 crores turnover 7 Key Facts &

Rs. 100 crore

nover Entered formulation through 100% subsidiary - Pinnacle Life Science Pvt. Ltd. 1998 Crossed Rs. 100 crores turnover 7 Key Facts & Figures Largest producer of Nimesulide in the world. Largest producer

4,077 MT

API Manufacturing Largest producer of Ketoconazole in the world 12 Manufacturing Facilities 4,077 MT/Monthly Capacity 80+ Finished Products 1,10,330 Sq.m Plant Area Largest producer of Metronida

37%

330 Sq.m Plant Area Largest producer of Metronidazole Benzoate in the world ~1,450 Employees ~37% Export Revenue Largest producer in Fluoroquinolones group in the world Largest producer of Tin

80%

of the largest manufacturer of 2 molecules in the world ▪ 9 manufacturing units ▪ Contributes ~80% revenues ▪ Installed capacity of 40,040 MTPA Formulation ▪ Diversified into formulation through

“• CRAMS industry has posted 48% CAGR between FY15-18 and expected to witness a strong growth over 25% over 2018-21 Formulations Biosimilars • Largest exporter of formulations in terms of volume, with 14% market share and 12th in terms of export value.”

Empowerment

1

Barriers

1

Revenue

1

Captive consumption

1

Investor Relations Advisor

1

Empowerment

Free Government approved and certified vocational course training for women to generate employment. • Healthcare: Primary Healthcare Infrastructure Development and Improvement around the manufacturing facilities. • Gender Diversity: ~40% women staff at HO, contributing in various departments such as marketing, factory level, women are employed at QC QA, regulatory affairs, etc. departments. finance, procurement. At • Stakeholder Management: No unfair trade practices events in the last 5 years. stringent product quality control, strict QA and QC dept to ensure that product is at the mark of the quality as per various pharma copeial standards • The Board has an optimum combination of Executive and Non-Executive directors and gender diversification • Risk Management Governance • Occupational Healthy Policy • Policies governing related party transactions • In compliance with all regulatory requirement of the Audit Committee • Mechanism of Stakeholders Board. periodic Relationship reporting

Barriers

Presence in Highly Specialized API Segment 2. Unique Competitive Position 6. Capex to drive the next leg of growth 3. Poised to overcome industry challenges 5. Robust Balance Sheet 4. Diversified product and client mix High Entry Barriers : Presence in Highly Specialized API Segment Over a decade, API manufacturing has transitioned towards highly regulated, specialized business How API Manufacturing Has Evolved Impact Regulations ❑ Stringent pharmacopoeia standards ❑ Addition of elemental ❑ Tightened impurity profiling ❑ Rigorous carcinogenicity checks Cost Structure Higher capex requirements to adhere to ever rising quality, environmental & regulatory requirements High R&D costs Tightened Regulations Quality & Environmental Standards Higher Capex Requirements ❑ Lower Competitive Intensity: Various small-scale manufacturers have exited due to unviability of cost structure ❑ High Entry Barriers: High entry barriers for new entrants due to cost structure and compliance requirements ❑ API

Captive consumption

Rs. 300 crores Revenue Growth Higher Margins Higher RoCE 29 Product-wise Capex Plans Anti Diabetic Anti - Fungal ▪ CEP approval in 2016 which opened up European markets ▪ Manufacturing over 1,000 TPM making it one of the largest metformin player ▪ Coming up with 2,000 TPM capacity via brown field expansion in Phase I ▪ Launch of Gliptins will further strengthen this therapeutic category. ▪ Further consolidation of its worldwide leading position. ▪ Recently expanded the capacity, further extending the lead. Speciality Chemicals ▪ Incremental expansion of our multipurpose chloro-sulphonation line in existing block Fluoro-Quinolones ▪ Further 40% brown field expansion of one antibiotic product ▪ Greenfield expansion in near future R&D Product Pipeline Antiprotozoal ▪ Strong pipeline of products under R&D for future growth ▪ Further consolidating the position in Indian Market. Existing technology and Chinese JV. ▪ Contract manufacturing of specialty chemicals and intermediates ▪ Incrementa

Investor Relations Advisor

CIN: L37060MH1984PLC055433 CIN: U74140MH2010PTC204285 Mr. Rushikesh Deole Email: investorrelations@aartidrugs.com Contact no.: +91 22 24048199 Mr. Jigar Kavaiya / Mr. Chinmay Madgulkar E: jigar.kavaiya@sgapl.net / chinmay.m@sgapl.net T: +91 9920602034 / +91 9860088296 www.aartidrugs.com www.sgapl.net