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GLOBAL MANUFACTURING AND SUPPLY CHAIN

Lupin's prowess in meeting unmet customer needs while bolstering a promising future stems from its 18 state-of-the-art manufacturing facilities spread across India, United States, Japan, Brazil and Mexico. Operational rigor coupled with strong regulatory compliance serves as a sound foundation for Lupin to deliver affordable and superior quality products worldwide.

The Company's global manufacturing philosophy is strategic yet simple: drive continuous improvement and innovation, eliminate inefficiencies, facilitate teamwork and problem solving, and encourage lean manufacturing.

Lupin's sustained growth and leadership as a global formulations and API major is a direct outcome of our unrelenting focus on competent manufacturing. Our facilities are inspected and audited regularly as a standard practice as per cGMP guidelines as laid down by leading regulatory authorities. They are also well-aligned with world-class practices that ensure that inputs reach our plants and our products reach customers 'on-demand' and 'in-time' across the world.

Highlights - FY2018

Successful inspections by other regulators such as EDQM (Europe), MHRA (UK), PMDA (Japan) and WHO

We continue to invest in expanding manufacturing capacities to support future business growth and building capabilities to support our pipeline of more complex dosage forms. We recently commenced commercial production from our green-field facility at Tottori, Japan. That apart, project work is nearing completion on the new oral solid dosage facility and sterile formulation facility at Nagpur. We have also initiated work on setting up a high potent oral solid facility at Indore.

Awards and Rewards

QCI-DL Shah National Award for Operational Excellence, fourth time in a row

CII National Lean Six Sigma Award for Operational Excellence in Manufacturing

Gold Certificate in the Mega Large Business Category at the India Manufacturing Excellence Awards, conducted by Frost and Sullivan and FICCI

Launched the robust process initiative to achieve Six Sigma level of quality in selected products at key sites with a plan to expand to all key products globally

Trained over 50 Black Belts and over 75 Green Belts as part of the capability development initiative under 'DISHA'

Lupin received a Warning Letter from the US FDA for two of its formulation manufacturing facilities at Goa and Pithampur Unit II in the month of November 2017. In response, a detailed letter was sent to the US FDA, listing remedial actions that would be taken along with timelines. We are working closely with the assistance of external consultants to ensure successful completion of remediation activities, training of employees and reinforcement of quality systems across all our sites. Regular updates are being sent to the US FDA on the progress of the remediation measures.

Our Global Supply Chain Organization (GSCO) has been instrumental in our quest for supply chain excellence. The key drivers of our excellence in supply chain are our high degree of flexibility, speed, reliability and cost efficiency. We received the 'Cardinal Supply Chain Excellence' award as well as the prestigious 'Walmart Supplier of the Year' for 2017.

Highlights – FY2018

Ensured minimum disruption to business continuity during the implementation of GST

Improvised on the key metrics of deliverance like OTIF (On Time in Full) well above 95% in majority of our markets. Other metrics like Forecast Accuracy, Requirement vs Commitments and Adherence to Plan have also improved

Started Global Supply Chain process implementation in Japan and Brazil subsidiaries

Ensured quick turnaround times for the launches post product approvals, especially in the US and India regions

Implemented a segmental approach to inventory levels to sustain the supply of key products to customers in case of disruption of supply from the vendors

Undertook a global project to optimize inventories across various geographies