RPG Life Sciences Limited has informed the Exchange about Investor Presentation
RPG LIFE SCIENCES
July 29, 2023
To
RPG LIFE SCIENCES LIMITED Regd. Off.: RPG House 463, Dr. Annie Besant Road Worli, Mumbai 400030, India Tel: +91-22-24981650 / 66606375 Fax: +91-22-24970127 Email: info@rpglifesciences.com www.rpglifesciences.com CIN : L24232MH2007PLC169354
The Manager Listing Department National Stock Exchange of India Limited
Exchange Plaza, 5th Floor, Plot No. C-1, G- Block, Bandra - Kurla Complex, Bandra (East) Mumbai — 400 051
BSE Limited
Corporate Relationship Department
25, P.J. Towers,
Dalal Street, Mumbai 400 001
Symbol: RPGLIFE
Scrip Code: 532983
Dear Sirs,
Sub: Investor Presentation
Please find enclosed herewith a copy of Investor Presentation with respect to Unaudited
Financial Results of the Company for the quarter ended June 30, 2023.
Kindly take the same on record.
Thanking you,
Yours faithfully, For RPG Life Sciences Limited RAJESH RAMESH rivestshranieiar ilg«;flzfnzzaugwaaasg SHIRAMBEKAR
ned by
lly
Rajesh Shirambekar Head — Legal & Company Secretar
Encl: As above
An ®RPG Company
RPG LIFE SCIENCES
An ~>>R,::.c:; Company
Investors’ Presentation Q1 FY24
Disclaimer
This presentation may include statements which may constitute forward-looking statements. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, business development, market position, expenditures, and financial results, are forward looking statements. Forward looking statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. The actual results, performance or achievements, could thus differ materially from those projected in any such forward-looking statements.
The company operates in the Pharmaceutical segment. Some of the historical Profit and loss numbers which are sliced in the investor presentation for certain sales divisions are purely for broader understanding for investors of the business of the company and its growth trajectory. The information contained in these materials has not been independently verified. None of the Company, its Directors, Promoter or affiliates, nor any of its or their respective employees, advisers or representatives or any other person accepts any responsibility or liability whatsoever, whether arising in tort, contract or otherwise, for any errors, omissions or inaccuracies in such information or opinions or for any loss, cost or damage suffered or incurred howsoever arising, directly or indirectly, from any use of this document or its contents or otherwise in connection with this document, and makes no representation or warranty, express or implied, for the contents of this document including its accuracy, fairness, completeness or verification or for any other statement made or purported to be made by any of them, or on behalf of them, and nothing in this document or at this presentation shall be relied upon as a promise or representation in this respect, whether as to the past or the future. The information and opinions contained in this presentation are current, and if not stated otherwise, as of the date of this presentation. The Company undertake no obligation to update or revise any information or the opinions expressed in this presentation as a result of new information, future events or otherwise. Any opinions or information expressed in this presentation are subject to change without notice.
This presentation does not constitute or form part of any offer or invitation or inducement to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of RPG Life Sciences Limited Limited (the “Company”), nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment, therefore. Any person/ party intending to provide finance / invest in the shares/businesses of the Company shall do so after seeking their own professional advice and after carrying out their own due diligence procedure to ensure that they are making an informed decision. This presentation is strictly confidential and may not be copied or disseminated, in whole or in part, and in any manner or for any purpose. No person is authorized to give any information or to make any representation not contained in or inconsistent with this presentation and if given or made, such information or representation must not be relied upon as having been authorized by any person. Failure to comply with this restriction may constitute a violation of the applicable securities laws. The distribution of this document in certain jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about and observe any such restrictions. By participating in this presentation or by accepting any copy of the slides presented, you agree to be bound by the foregoing limitations.
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RPG Group: One of India's fastest-growing diversified conglomerates
UN -EA,SHTALENT TOUCH LIVES 1QIUTPERF 10RM AND,@
RPG Group has a business history dating back to 1820 AD in banking, textiles, jute, and tea. RPG Enterprises was founded in 1979 and currently operates in various businesses in Infrastructure, Technology, Tyres, Life Sciences, and plantation industries. Formerly known as Searle India, RPG Life Sciences was started as a joint venture with G.D Searle in 1968 and was rechristened to RPG Life Sciences in 1999 with G.D Searle withdrawing its India operations.
100+ years old Business Group |
$4.4 Bn Revenue |
20000+ Employees |
BSE Listed Companies
One of India’s leading tyre Manufacturers
EPC major in infrastructure segments like T&D, Civil, Railways, Oil & Gas
__,,,,,, ZenSar Global Technology Consulting and IT services company
R?G LIFE SCIENCES
An Integrated Pharmaceutical company operating in Formulations and Synthetic APIs
Raychem ·RPG
Technology Solutions company catering to energy and infrastructure
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HARR/SONS MALAYALAM LIMITED
One of India’s largest plantation companies producing tea, rubber etc
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RPG Life Sciences: An Integrated Pharmaceutical Company –APIs to Formulations; R&D to Manufacturing to Marketing
RPG Life Sciences, part of RPG Enterprises, is an integrated research based pharmaceutical company operating in the domestic and international markets in the branded formulations, global generics and synthetic APIs space.
Domestic Formulations (DF)
Develop, manufacture and market branded formulations in India & Nepal
APIs 15%
International Formulations (IF) 19%
Domestic Formulations (DF) 66%
International Formulations (IF)
Develop, manufacture and sell oral solid dosage formulations in the generics and branded generics space across regulated and emerging markets
APIs
Develop, manufacture and sell high value synthetic APIs in the general therapeutic category
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Leader in Immunosuppressants
10+ Therapies represented by High Equity brands
50+ Markets Presence
0
3 Manufacturing Facilities
1200+ Employees
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RPG Life Sciences Product Portfolio: Strong ‘Textbook’ brands being augmented by Diligent Life Cycle Management and New Launches in Chronic and Specialty therapies
Domestic Formulations (DF)
Key Therapies
Nephrology
Rheumatology
Oncology
Pain Management
Gastroenterology
Neuropsychiatry
Cardiovascular
Diabetes
Urology
Legacy Portfolio
Immunosuppressants
Text Book Brands
Azoran· Azathioprine
Mycophenolate Mofetil
'Aroimune ME. Cyclosporine
lklmunotac Tacrolimus
Azoran· Azathioprine
Spironolactone • < Lomotil Diphenoxylate HCl 'Nap_rJ,_~yn· Naproxen Serenace Haloperidol
Disopyramide Phosphate
Key Products
Specialty 'HerMab'i T"""'-"••a~1k:r ,·.,, .,..,1~r'!l.'.a.'l ri,r; ~ Trastuzumab
Adlumab·
'·,;:. ,,.11..o.· ~-1 --.-':., ,,_
Adalimumab Ivzumao Bevacizumab
-••b~mabl00"'9/-m,g
~•.
Rituximab
,,,.,aw
Tofacitinib lr(JHigh" Iron Isomaltoside
lronl1DNltotiiltlYillSml(l0Dmglmlj
Denosumab
New Portfolio
Chronic
'NuGliptin Vildagliptin
p
Gli tiNexf ....... _ Teneligliptin
Dapagliflozin
Azilta·-1& Azelinidipine
·solifirsf Solifenacin
~S...:.,.,,,151 1""9
Life Cycle Management (Existing Products) Azoran7s
AZathiol>l'ino 75 fl>!I Tol>w
'Alrl~rfnno.': T ~ ~ •:my Aldactone· la
SpirooolKtone 50mg + Frusemicle ZDm,g
·Naprosyn'::: +
...., ..... $< .... ...... ,"',;,, ;:,<_,,,;,;,..,
'ROMILAST:BL
1;;,..,,!JK"':f•lmrl:<l'lrl,"1,tj:'6e<j:M"".J ,..i~-.,.,;. !,.,,..,.,;,.r . ......,, More Smart ••• More EfflcientJ
International Formulations (IF)
Key Products Generics - Azathioprine, Sodium Valproate PR, Nicorandil, Sertraline Branded Generics – Siloxogene, Azoran, Mofetyl, Arpimune ME, Dyzantil, Dipsope
APIs
Key Products APIs - Quinfamide, Azathioprine, Haloperidol, Risperidone, Propantheline Bromide, Nicorandil, Pantoprazole, Diphenoxylate
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Financial Performance
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Journey of RPG Life Sciences
1
2
Process Excellence Product Portfolio, People, Business Processes
Fundamentals Fixation Sales Hygiene, People, Organization
3
Sustainable Profitable Growth Revenues, Volumes, Margins
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Benchmark Performance Profitability, Leverage, Liquidity Ratios
5
Scale-up
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Margins: A Trajectory of y-o-y Expansion despite Market Challenges EBITDA:10.4% (FY19) to 23.0%(Q1 FY24);PBT: 4.6% (FY19) to 20.1%(Q1 FY24);PAT: 3.3% (FY19) to 15.0% (Q1 FY24)
EBITDA% 23.0%
PBT% 20.1%
PAT% 15.0%
20.3%
21.0%
16.6%
17.9%
11.7%
13.2%
18.2%
13.8%
10.3%
15.9%
11.1%
7.7%
9.8%
8.1%
6.2%
6.0%
0.9%
0.5%
0.2%
0.2%
0.4% 0.4%
0.4%
0.4%
11.1% 10.4%
8.7%
4.2%
4.2%
9.3%
4.7%
5.9%
3.9%
3.9%
4.6%
3.3%
Except FY24 Q1, all other margin numbers are full year numbers
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Q1 FY24 : Yet Another Strong Quarter
Revenue from Operations
- - - t
128.9
147.8
Q1 FY23
Q1 FY24
PAT & PAT Margin
- - t
18.2
14.1%
22.1
15.0%
EBITDA & EBITDA Margin
(All figures in Rs. Crores except EPS in Rs.)
PBT & PBT Margin
29.1
n
22.5%
Q1 FY23
p
34.0
23.0%
•
Q1 FY24
25.1
19.5%
29.8
20.1%
Q1 FY23
Q1 FY24
EPS
-t
13.4
11.0
Figures in circle are Margins An <l>» RPCi Company
Q1 FY23
Q1 FY24
Q1 FY23
Q1 FY24
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Key Financials’ Trends
- - - t ___ t
Revenue from Operations
EBITDA & EBITDA Margin
512.8
440.2
375.6 389.1
330.2
107.5
89.4
70.8
59.9
147.8
34.4
15.9% 18.2%
20.3%
21.0% 23.0%
10.4%
□
FY19
34.1
□ '
15.1
4.6%
(All figures in Rs. Crores except EPS in Rs.)
PBT & PBT Margin
- - t
91.7
73.2
53.6
41.8
11.1% 13.8%
16.6%
17.9%
29.8
20.1%
FY19
FY20
FY21
FY22
FY23 Q1 FY24
FY20
FY21
FY22
FY23 Q1 FY24
FY19
FY20
FY21
FY22
FY23 Q1 FY24
PAT & PAT Margin
- - t
67.6
51.5
40.0
29.0
10.8
22.1
3.3%
7.7%
10.3%
11.7%
13.2% 15.0%
FY19
FY20
FY21
FY22
FY23 Q1 FY24
6.5
-
FY19
EPS
-t
40.9
31.1
24.2
17.5
13.4
FY20
FY21
FY22
FY23 Q1 FY24
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Key Ratios (ROCE, ROE, D/E) : A Trajectory of y-o-y uptrend
_f
ROCE%
_f
ROE%
Debt/Equity Ratio
- - l
28.5% 29.7%
24.9%
20.9%
18.5% 20.1%
16.4%
22.0%
0.22
9.7%
6.7%
0.06
FY19
FY20
FY21
FY22
FY23
FY19
FY20
FY21
FY22
FY23
FY19
FY20
Company continues to remain Debt-free
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0.01
-
FY21
0.00
0.00
FY22
FY23
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Business Segment-wise Performance: Q1 FY24
Domestic Formulations (DF)
• Domestic Formulations contributed 66% to total sales of Q1 FY24 • • • New products* contribution improving consistently (currently >20%) on account of new
16% sales growth majorly driven by legacy products Better than market growth
launches in Specialty & Chronic segments and line extensions of legacy products Salesforce productivity improved to >5.0 Lakhs versus 3.4 Lakhs in earlier years
•
International Formulations (IF)
International Formulations contributed 19% to total sales of Q1 FY24 Robust sales growth of 15%
• • • New Products/Customers/Markets contribution continues to improve (currently ~30%)
API
• • Growth of 9% •
API contributed 15% to total sales of Q1 FY24
Continuous thrust on new customer development
*Launched FY19 Onwards
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97.4
83.9
Q1 FY23
Q1 FY24
27.8
24.1
Q1 FY23
Q1 FY24
20.9
22.6
Q1 FY23
Q1 FY24
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RPG Life Sciences ICRA Rating Reaffirmed in FY23
Long term rating reaffirmed at A Short term rating reaffirmed at A1
Outlook on long term rating has been retained as Stable
The rating reaffirmation factors:
Strong brands in the Indian Pharmaceutical Industry Considerable improvement in the operating performance on the back of
Improvement in sales hygiene
• • Cost rationalisation measures adopted since FY20
A robust capital structure and strong coverage indicators based on
• Decline in the company’s debt levels • Healthy cash flows • No major debt-funded capital expenditure (capex)
Expansion of product portfolio and geographical presence augur well for growth prospects
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Business Strategy
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Domestic Formulations (DF)
• Operating in Mass/Mass-specialty and Specialty segments • Presence in both Acute & Chronic therapy areas • • • Good customer coverage - Cardiologists, Diabetologists, Urologists, Nephrologists, Rheumatologists, Oncologists • New Product Launches in new category – Biosimilars as well as Chronic and Specialty segments
Leading Text Book Brands – Azoran, Aldactone, Lomotil, Naprosyn, Serenace, Norpace Leading player in Immunosuppressant category
Business Strategy
5 pillars of profitable Domestic business growth
1
2
3
4
5
Product portfolio rejuvenation by building Chronic & Specialty portfolio with new launches
Strategic brand assets building through life cycle management (new line extensions, customer segments, disease segments, etc.)
Customer coverage deepening in targeted therapies by expanding field force and deploying digital
Sales force effectiveness augmentation by competencies building and productivity enhancement initiatives
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Profitability improvement by Opex control, efficient manufacturing operations, sales hygiene as well as profitable product mix
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International Formulations (IF) Business: Overview and Strategy
• Strong presence in immunosuppressant segment (Azathioprine) • Footprints across Regulated and Emerging markets - Canada, UK, Germany, France, Australia, South East Asia, Africa •
Long lasting, impeccable supply track record and business relationship with some of the leading generic players of the world
• High quality and process orientation making us a preferred partner •
Investments in plant upgradation and capacity expansion
Business Strategy
3 pillars of step-wise Global business build up
1
2
3
Build immunosuppressant portfolio
Focus on products with specific/ competitive advantage e.g. -
Products needing Special manufacturing conditions like low RH/Temp Complex generic products Low Competition products
- -
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Expand footprints in emerging/select markets like Myanmar, Vietnam, Philippines, Sri Lanka, Egypt, Sudan, Thailand, and South Africa
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APIs Business: Business Strategy and Way Forward
• High value, low volume, niche APIs • Mature stable molecules •
Provides backward integration to International Formulations business
•
•
Footprints across geographies - LATAM, Germany, China, South Korea, Iran, Bangladesh, Egypt, India, etc. Strong customer focus – long-lasting relationship with big pharma and leading generic firms.
Business Strategy
Business continuity
1
2
3
Market/Customer Expansion (Existing Products)
Pipeline of Niche Product/Portfolio : - -
Immuno-suppressants Limited Competition products Backward integration of IF/DF
-
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State-of-Art, EU/TGA approved Plant with enhanced capacity
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Infrastructure & Backend Capabilities
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Manufacturing Facilities
Formulations Unit 1, Ankleshwar
Formulations Unit 2, Ankleshwar
F1 unit caters to the domestic and emerging markets
• • Multipurpose plant with dedicated product lines for oral dosage forms including tablets,
liquids and powder
• WHO, Kenya, Nigeria approved
F2 unit caters to the regulated markets
• • Dedicated product lines for oral dosage (capsules & tablets) • • WHO, EUGMP (from Hamburg Health authority), Canada, Ethiopia, Kenya, Sudan,
Equipped to handle low RH and low temperature conditions products
Nigeria approved
API Unit, Navi Mumbai
• MF1: Multipurpose unit catering to emerging markets including India • MF2: Dedicated immunosuppressant facility catering to regulated and emerging markets
including India
• MF3: Multipurpose unit catering to regulated and emerging markets including India • WHO, PMDA Japan,TGA Australia approved & Written Confirmation (WC) received from
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Strong Backend Capabilities
Quality
• All critical SOPs harmonized through CQA • Quarterly internal audit of all plants by CQA • All critical deviations, change controls and market
complaints investigation approved by CQA
Regulatory
• Well established & evolved Regulatory function catering to Canada, UK, EU, Australia and emerging markets Expertise of eCTD submissions Integrated project management activities
• •
•
Formulations R&D In addition to Formulations Development of IR, have capabilities to develop modified release & complex generics
• Dossiers gap analysis and fulfilment Tech transfer/site transfer activities • • GLP compliant analytical lab for Development and
Validation of Analytical Methods
Digitalisation Focus Areas
• Quality Management systems : e-QMS, e-DMS, e-LMS. • Access to critical manufacturing equipment through IRIS
scanner
• All QC instruments attached with dedicated software
and server
• All stability chambers with software control •
Secondary packing Complies with EUFMD requirement for Track and Trace.
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Operational Highlights
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Top 10 Operational Highlights
1
2
3
4
5
6
7
8
9
Comprehensive Life Cycle Management Strategy for DF Legacy products yielding results
Legacy product Naprosyn becomes the first 60 Cr+ Brand in FY23; Crosses 19 Cr Mark in FY24 Q1
New Product portfolio across identified segments contributing healthy double-digit growth
The new product Denosumab Sales ~5 Cr in the very first year of launch
New Therapy – Rheumatology becoming formidable
The new Rheumatology Franchise grows to contribute significantly to specialty sales | Ortho portfolio basket, customer coverage augmentation underway
Multiple Initiatives expanding Prescriber & Patient base
Medico Marketing Pyramid | Digital Marketing Pyramid | Disease Education
Revenue/Cost optimization projects driving results
Revenue enhancement: New products, customers and markets| Cost optimization: Strict Opex control, Digitalization and AVD
Digitalisation & Innovation Agenda impacting key areas
“RPGServ” 3.0 grows to 10 versions with addition of Orthos; Technology upgrades| eQMS, eDMS, eLMS for product quality
Factories, R&D, Regulatory modernising up to support Frontend
Key Products Inhouse transfer| Modernization of both plants under execution | New Products development - WIP
Increasing Industry Interface and Performance Recognition
4 Industry Awards| Increased Traction in Investor meets and Media Interaction| RPG Best Corporate Performance award
“Happiness” Initiatives driving Happy Performance focused Culture
Happiness Score increase from 83% (FY21)→ 84% (FY22) → 87% (FY23)| Ranked #2 amongst RPG group companies
10
Headwinds Management
G C ompany
Diligent Management of Input Costs Increase
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Digitalization Initiatives to Transform Business
Game Changer Customer Connect Initiative
Employee Connect Initiatives
• . -
9:27 ;
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Ms. FalakJ lndal
My Service Requests
Logout
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~ Scientific ~Update
~ Scientific ~ Support
C8 VID·19 Care
C8 VID·19 One Source
~ Scientific ~ Update
~ Scientific ~ Support
P<TIENT , EDUCATION MATERIAL
mil CONTACT l:iil us
PATIENT EDUCATION MATERIAL
Anytime, Anywhere Doctor Support Initiative
Industry First Initiative
~
2 .0
Digital Platform for comprehensive Salesforce Operations tracking: #Customer visits, customer engagement activities, sales performance analytics etc
a r,ca
HR Chatbot for quick resolution of queries related to HR process and company policies
A digital platform for Salesforce Grievance Redressal
Initiatives in Plant Operations
Range of Services
>80,000 Key Opinion Leaders
e-QMS: Digital platform to track all 6 quality parameters
e-DMS: Digital platform to manage all manufacturing/quality documents
e-LMS: Digital platform to track training sessions on CGMP
All above represent Illustrative list of the initiatives
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e- Access: Retina scanning for machine access
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People Initiatives to build Performance Culture with focus on Happiness
I Feel Valued
You Excel. We Applaud. Motivation continuum
I Live a Purposeful & Balanced Life
RPGLS Values Champions Living organizational values
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I Love My Work
~ ~
RPGLS Heroes Outperformance recognition
High Happiness Quotient
I Feel Connected
RPGLS Happiness Forums Leadership Connect – Month & Quarter
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I am Growing
We Skill. You Grow. Competency building continuum
• • 0
Akanksha Career development
I cherish our Culture
RPGLS Parivar Tyohar-Utsav Shrankhla Digital RPGLS family get- together
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Initiatives for building a Performance Driven Culture: Glimpses
Skilling
Rewards & Recognition
Employee engagement: Parivar Tyohar Utsav
Employee Connect
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Idea Generation
Happiness Initiative: Hello Happiness Forum Monthly Townhall for Connect, Recognition and Camaraderie: Glimpses
•• \..J
For Your Happiness @ RPCi L I FE SCIENCES
•
•
0 hello happiness
•
•
RPGLS Happiness Forum
\ J
Monthly Townhall for Connect, Recognition and Camaraderie
hello happiness Forum
Entertainment
· Rewards & Recognition --~
<le -==-
-~ Info sharing and Open-House
_
-
Long Service Awards
_
RPCLS Parivar A Happy Parivar
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Happiness Initiative: Parivar Tyohar Utsav Shrankhla Virtual Celebration of Festivals with Families: Glimpses
•• \....,I
For Your Happiness @ R?G L I FE SCIENCES ii¢filt-ii¢3i ~
•
RPGLS Parivar Tyohar-Utsav Shrankhla
•
0 hello happiness
•
Virtual Celebration of Festivals with Families
" I loved these unique digital RPGLS-family get-togethers as these enabled entire RPGLS Parivaar to reach our colleagues ' homes, cities, and societies across the country and celebrate with their families ... Ganapati, Diwali, Hali, Govinda, Onam, Eid, Christmas ... all our festivals; hundreds of our family members joined from their own homes and had fun !! "
Yugal Sikri Managing Director
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RPGLS PARIVAR - A HAPPY PARIVAR
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Awards & Recognitions
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RPG Life Sciences Bagged Top Awards from IDMA
Industry Recognition to RPG Life Sciences
Best Patent Award
Best Corporate Citizen Award
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RPG Life Sciences Awarded with ‘Jamnalal Bajaj Award for Fair Business Practices’
Jamnalal Bajaj Award for Fair Business Practices (2021-22)
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New Launch Naprosyn+ bags Brand Champion of the Year Award
1 SILVER IM- D I
RO "DLY .IPll , S, .
_
Naprosyn+
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T H A N K
Y O U
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