Social &
Relationship
Capital

At Lupin, we deeply recognize the significance of Social and Relationship Capital in driving our organization’s growth. We are fully dedicated to diligently fostering robust and enduring partnerships by actively participating in community welfare activities that enhance socio-economic wellbeing of local communities but also contribute to organizations sustainability and goodwill. Furthermore, by prioritizing and nurturing strong relationships with suppliers and other stakeholders, we ensure the seamless sourcing of raw materials at fair prices, ensuring the smooth functioning of our manufacturing operations. Moreover, our proactive engagement with customers enables us to acquire valuable insights into their expectations, empowering us to continuously innovate our strategies and products.

The cornerstone of our unwavering commitment to social and relationship capital is deeply rooted in the visionary leadership of our Founder, Dr. Desh Bandhu Gupta. His remarkable dedication to tirelessly serving our communities and uplifting the most vulnerable inspires us all in our endeavors.

Social & Relationship

₹356.5 Mn

CSR Spend

170778

Beneficiaries

100%

of Suppliers covered under Supplier Code of Conduct

~50%

Direct Material manufacturers assessed for ESG Risks (basis third-party secondary research)

9200 hours

of Employee Volunteering

12531

Suppliers engaged in FY23

66%

direct materials (by spend) locally sourced in India

25 Bn

Impressions generated through unique external communications campaigns

Community Outreach and Value Creation

The Lupin Human Welfare & Research Foundation (LHWRF) operates as an independent entity of Lupin Limited, with a steadfast aim to establish a sustainable, adaptable, and dynamic model of holistic rural development in India. We recognize that each community requires a unique approach to foster growth and development. Hence, we conducted and implemented a comprehensive needs-based assessment across the villages we engage with, ensuring that our efforts result in meaningful and impactful change.

We are committed to driving sustainable livelihood opportunities and economic growth in underdeveloped districts in India through collaborative efforts with community-based organizations and local institutions.

Over the last three decades, the Foundation has a programmatic presence in over 5,000 villages located in 88 blocks of 23 districts spread across the nine states in India, reaching over 1.45 million households. Alwar and Bharatpur in Rajasthan and Dhule, Pune and Palghar in Maharashtra are key districts for all strategic interventions through our Lives and Livelihoods programs. Across worksite locations, the Foundation magnifies impact through need based, community led initiatives that are aligned to our strategic programme pillars and overall sustainability goals.

This year, we actively worked in more than 1,400 villages, from 9 states in India.

What Sets the Foundation Apart?

  • Equal Community Partnership: Collaborating with communities from the outset to ensure inclusivity and participation
  • Committed Teams: Working closely with communities, providing guidance and support throughout project implementation
  • Transparency and Accountability: Establishing a robust monitoring system to track project progress and keep stakeholders informed
  • Local Ownership: Empowering the local Panchayat for maintenance and sustainability after project completion
  • Grievance Resolution: Addressing community grievances promptly through established rules and procedures at the village institution level

Our Pillars of Social Upliftment

LHWRF focuses on uplifting underprivileged communities and operates with a strong commitment to community engagement, transparency, and sustainable development across its areas of focus. The foundation is dedicated toward fostering an enabling ecosystem for upliftment of the underprivileged, ensuring enhanced livelihoods security through its Livelihoods programme and enriching the quality of life through its Lives programme.

LHWRF’s Coverage in FY23

1432 Villages

73 Blocks

22 Districts

Our Pillars

Governance Mechanisms for Social Development

Lupin implements robust governance mechanisms to drive social initiatives and maximize social capital. The Board of Trustees, supported by the CSR Committee and the LHWRF, oversees our governance structure. The Board ensures effective CSR policy implementation and fund allocation, while the CSR Committee moderates plans, monitors projects, and evaluates impact.

The LHWRF directly manages project execution, ensuring ethical practices and compliance. Collaboration with government agencies, local partners, institutions, self-help groups (SHGs), NGOs, and experts enables us to leverage resources and expertise for successful implementation.

Board of Trustees

Implementation of CSR Policy and Infusion of CSR Funds

CSR Committee

Ensuring smooth and effective functioning of social activities and monitoring the activities.
The committee also develops annual action plans and social development strategies.

Dedicated and Specialized Teams

Execution of CSR projects and on-ground implementation

Livelihoods Program: Empowering Rural Communities

Animal Husbandry Agriculture development

Our Livelihood program aims to empower economically vulnerable rural communities in North and West India by providing sustainable solutions. We deliver locally relevant and need-based livelihood initiatives that enhance income opportunities for underprivileged individuals.

Through collaborations with grassroots institutions, like minded organizations and government departments there are 33 projects implemented across geographies through the Foundation. These partnerships ensure our initiatives align with local contexts, effectively addressing community needs. Our core objective is to create lasting societal value by empowering and uplifting the communities we serve.

Livelihood program aims
Ground Zero Good Practices Adopted to Empower Cotton Growers
Overview

In partnership with the Better Cotton Initiative, the LHWRF has been implementing the Better Cotton Programme (BCI) in Maharashtra’s Dhule and Nandurbar districts since 2017. This program introduces innovative agricultural techniques to benefit farmers. The adoption of single-seed sowing practice has proven highly advantageous, reducing costs by 50% and increasing productivity. Intercropping with red gram and marigold acts as a natural pest control measure, while maize plantation on borders helps manage pests on the farm. Through capacity building and training, farmers have gained awareness of improved farming practices and efficient use of natural resources. They now produce and utilize organic fertilizers, pesticides, and other inputs, promoting sustainable and environment friendly farming.

Upskilling Through Technology and Digital Learning

The program uses Information and Communication (ICT) materials like bite-sized 2D-animated videos in local languages to facilitate peer learning. These videos are distributed to women farmers, and those women with access to smartphones take the lead in championing ground-zero awareness level. The user-friendly videos explain the technical aspects of cotton farming and promote sustainable practices. Support from Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) aided the development of these videos as part of the Promoting Better Cotton Farming Practices project.

Transforming Agricultural Practices

Our program introduces innovative agricultural techniques to benefit farmers, including the adoption of single-seed sowing practices, intercropping with red gram and marigold, and maize plantation on borders.

Integrated Learning for Women Farmers

A hub and spokes model is implemented among women farmers to ensure learning integration. A progressive woman farmer is a demonstration model, while fellow women farmers are encouraged to adopt the practices. Farmer field schools are conducted on the demonstration farm, providing hands-on support. On-farm challenges are addressed through the provision of small tools, machinery, and access to seed banks.

Key Impacts of the Project Include:
  • Adoption of soil testing and organic fertilizer usage by women farmers.
  • Increased crop yield and economic returns in cotton cultivation, leading to higher profits for farmers and reduced cultivation costs.
  • Implementation of intercropping and farm-allied activities, contributing to additional income generation at the household level.
  • Strengthened the agency of women and improved access to markets, enabling farmers to achieve better prices for their agricultural produce.
  • Promotion of gender-sensitive practices, empowering women and catalyzing their upward socio-economic mobility.
Innovative Agriculture Allied Enterprise
An Introduction to Dhule, Maharashtra

Dhule, a district with limited income generation opportunities and scope for economic growth, faces agricultural backwardness. It is highly vulnerable to impact of climate change and has very high dependence on agriculture. Women in the region mainly work as farm labourers and rear livestock to generate income. Livestock is a key source of alternate income generation, however, the arid, dry geography and limited water availability pose a significant challenge, leading to fodder scarcity for livestock keepers. An all-women Farmer’s Producers Organization (FPO) comprising 315 women farmers was established to address these issues.

Role of the Foundation

LHWRF played a crucial role in organizing women farmers and establishing the FPO. They provided training, capacity building, and continuous support to develop women leaders’ skills in managing the FPO. LHWRF also secured financial support from donor agencies for the FPO’s processing unit and working capital.

Establishment of a Pioneering Enterprise

In 2019, the Mahila Khandeshi Producer Company was established as an FPO in Dhule. This all-women FPO operates units for agricultural input sales, cattle feed manufacturing, and micro-irrigation dealerships. The women members actively promote improved agricultural practices, green fodder production, and water management techniques. These interventions have boosted farmers’ incomes and economic growth in the region, particularly for women.

Enhancements in Animal Husbandry

The FPO’s cattle feed production unit addresses fodder scarcity in Dhule by producing nutritious supplements for livestock keepers, thereby improving milk yields. The unit sources local inputs like maize and soybean to create affordable cattle feed, benefiting farmers in the region. The FPO’s turnover from cattle feed and agricultural input sales is continuously growing and is expected to exceed ₹1 Mn.

Wider Benefits

The availability of affordable cattle feed has transformed farming and livestock rearing in the region. Farmers and livestock keepers now have easy access to high-quality feed, resulting in improved feed and fodder management, increased milk production, and higher profits. This intervention has particularly impacted women leaders, who have experienced enhanced economic opportunities and established strong collectives. The availability of cattle feed has created a more stable and profitable agricultural ecosystem in the region.

Innovation

The intervention introduces process innovations, such as collective procurement and local sourcing of inputs, thereby reducing costs and providing a platform for SHG members to sell their produce.

The FPO’s advisory services promote improved agricultural practices, certified seeds, bio-fertilizers, bio-pesticides, and micro-irrigation technologies, ensuring easy and affordable access to farm inputs. These innovations enhance income generation for the FPO and ensure profitability for farmers, creating a sustainable and inclusive agricultural ecosystem.

Resources and Mobility

The project successfully used resources from the Government of Maharashtra, particularly the Krishi Vigyan Kendra Dhule, the NABARD FPO scheme, and additional funding from the Bayer Foundation to support the women FPO.

Regional Recognition

The program was honoured with the State-level Krushi Prerna Award 2022 by the Agrocares Group of Companies.

Lives Program: Enhancing Healthcare for Marginalized Communities

Strengthening the Primary Healthcare Enhancing Healthcare

Launched in FY23, the Lives program focuses on enhancing the availability, accessibility, and utilization of healthcare services for marginalized populations. Our structured framework strengthens preventive and curative aspects of healthcare, aiming to address immediate needs while reducing disease prevalence in the long run. We prioritize the Northern and Western regions of India, identifying and treating individuals at risk.

Strengthening the Government System for Tuberculosis Elimination
Overview

The Lupin Human Welfare and Research Foundation partners with the Government to strengthen India’s national tuberculosis (TB) elimination efforts. Collaborating with the Revised National Tuberculosis Control Programme (RNTCP), we aim to eliminate TB by 2025 as outlined in the ‘National Strategic Plan for Tuberculosis 2017-2025’ (NSP). Through our collaboration, we have focused on the Detect, Treat, Prevent, and Build (DTPB) pillars of the NSP, providing identification and treatment services to 50,000 individuals from nearby villages in Padra Taluka LHWRF, Dabhasa. Together with the Government, we strive to improve program delivery and contribute to eliminating TB in India.

Preparation and Training

LHWRF conducted a training program at Lupin Dabhasa for Accredited Social Health Activist (ASHA) Workers and Public Health Centre (PHC) staff to implement the project according to RNTCP guidelines. The training covered key aspects, including

  • Door-to-door survey conducted to record family profiles and identify suspected TB cases
  • Medical checkups carried out using joint survey kits provided by LHWRF and RNTCP
  • Performance incentives offered to ASHA workers responsible for project execution
Value Creation and Impact

The program conducted sputum, X-ray, and CB net diagnoses to identify TB-positive individuals.

Patients received treatment at PHCs, with ASHA workers distributing free medicine and providing regular home visits. LHWRF provided a six-month nutrition kit for patients’ health improvement. Treatment details were recorded in the RNTCP treatment card, with a remuneration of ₹1,000 from RNTCP and an additional ₹8 per patient from LHWRF. Transportation expenses were covered for suspected patients and ASHA workers. The program screened 37,579 households and 155,762 individuals, identifying 1,013 suspects and 176 confirmed TB cases.

USAID has recognized the project’s efforts to contribute to the National Tuberculosis Elimination Program. Insights from the TB project in Dabhasa will substantiate the replication of similar projects in Nagpur, Sikkim, and Vizag centres.

Empowering Education in Sub-Saharan Africa: Pharma Dynamics and the Tutudesk Campaign

pharma dynamics

Pharma Dynamics, Lupin’s South African subsidiary, has joined forces with the Tutudesk Foundation to bring about a profound change in education outcomes across sub-Saharan Africa. Led by Nobel Prize laureate Desmond Tutu, the Foundation’s mission is to provide portable school desks, known as Tutudesks, to underprivileged children in the region. The impact of Tutudesks has been truly remarkable, with teachers witnessing an astounding 80% improvement in students’ handwriting legibility and a remarkable 65% increase in homework completion rates. This underscores the transformative influence even a seemingly simple resource can have on educational achievements.

Since 2018, Pharma Dynamics has been a steadfast supporter of the Tutudesk Foundation, striving to reach an ambitious goal of benefiting 20 Mn African children by 2025. The company’s annual contribution to the Foundation not only drives its Social Economic Development (SED) expenditure but also bolsters its Broad-Based Black Economic Empowerment (BBBEE) rating. By actively collaborating with the Tutudesk campaign, Pharma Dynamics actively promotes equitable access to education, uplifts communities, and fosters sustainable progress throughout sub-Saharan Africa. This compelling partnership exemplifies the power of collective action in transforming lives through education.

Accessibility, Affordability, and Awareness

Breaking Barriers to Accessibility, Affordability, and Awareness

At Lupin, we recognize the obstacles individuals encounter in accessing essential healthcare services. That is why we are dedicated to breaking barriers in accessibility, affordability, and awareness. Access to healthcare is a top priority for pharmaceutical companies like Lupin, as nearly 2 Bn people globally lack access to essential medicines. Ensuring access to safe, effective, and quality medicines and health products is fundamental to preserving and improving the health of millions of people. Achieving universal health coverage requires affordable access to healthcare resources, and Lupin is committed to facilitating this goal. Lupin has been operating in >100 countries directly and indirectly along with a legacy anti-TB leadership role. Leveraging the presence, Lupin has been pioneering the access strategies across both regulated and non-regulated markets. Our generics offer significant cost savings across the world.

In the U.S., Lupin ranks #3 by prescriptions holding 4.7% share of total prescriptions. Thus, Lupin has been a key contributor to the $373 Bn savings. Similarly, Lupin has contributed towards reduced healthcare expenditures of 35% in South Africa and 30-50% savings for the U.K. government for the products marketed by Lupin. We’re also launching 2-3 healthcare programs in India and building capacities in healthcare systems where Lupin is present.

Furthermore, we have committed not to patent or enforce patents on Intellectual Property related to products for diseases covered by ATMI1 2021 in least-developed and low-income countries. This ensures affordable and accessible medications for those in need.

Goals and Targets

Goals and Targets markets

Flagship Initiatives Targeted Towards Improving Patient Awareness in FY23

Flagship Initiatives

Flagship Initiatives Targeted Towards Improving Medical Professional Awareness

Improving Medical Professional Awareness

Empowering Diabetes Patients for Better Health Outcomes

Humrahi In the face of an alarming rise in diabetes cases, Humrahi, Lupin’s Diabetes Patient Support Program (PSP), is at the forefront of transforming diabetes care in India. Through its user-friendly app, Humrahi provides personalized support, ensuring better health outcomes for patients. With a remarkable track record of empowering over 150,000 individuals, the program is now expanding to an additional 100,000 individuals. Collaborating with 4,000 medical professionals further cements Humrahi’s success. By prioritizing patient care and addressing the evolving needs of diabetic patients, Humrahi has become the trusted partner in their journey towards improved health. Through its personalized guidance, Humrahi empowers individuals to effectively manage their diabetes and elevate their overall quality of life. https://humrahi.co.in/

Enhancing Accessibility of Tuberculosis Treatment

Lupin has achieved significant progress in producing and distributing tuberculosis (TB) treatment, particularly in low- and middle-income countries. With multiple state-of-the-art facilities dedicated to Anti-TB products, we are one of the largest manufacturers of Rifampicin, Pyrazinamide and Ethambutol APIs. Furthermore, to curb the increasing prevalence of TB in these countries, we have expanded our production capacities in Aurangabad. This allows us to produce 40% more batches from our dedicated Anti-TB formulation blocks.

Revolutionizing the Management of Multidrug-Resistant Tuberculosis

Lupin is actively addressing the challenge of affordable access to cutting-edge regimens for multidrug-resistant tuberculosis (MDR-TB). We understand the importance of introducing new molecules and repurposing effective medications to combat this pressing issue. Breakthrough treatments such as Bedaquiline, Pretomanid, Delamanid, Clofazimine, Linezolid, and Moxifloxacin have played a vital role in reducing global mortality rates associated with tuberculosis. Our mission is to expand the availability of these life-saving therapies, ensuring that a larger patient population can benefit from their effectiveness and contribute to the potential eradication of MDR-TB.

Expanding Global Reach: Empowering Access to Life-Saving Medications

Lupin Access Business has achieved remarkable success in registering its products in low- and middle-income countries, with an impressive count of over 115 registrations accomplished till date. In FY23, we have already secured more than 70 registrations in various countries. These milestones open new avenues for Lupin’s ARV and tuberculosis treatments to reach a wider global audience, effectively enhancing accessibility to life-saving medications on a global scale.

Revolutionizing Tuberculosis Treatment and Access

Lupin Global Institutional Business has demonstrated innovation in developing groundbreaking products and initiatives. One example is the combination product of Rifapentine and isoniazid, simplifying treatment and improving patient compliance. This formulation has received approval, marking a significant step in tuberculosis prevention.

Our partnership with multiple agencies will facilitate the rollout of tuberculosis prevention treatment in 138 countries, especially heavily burdened regions. We offer an affordable fixed-dose combination of Rifapentine + Isoniazid and standalone Rifapentine 300 mg tablets.

Lupin also focuses on developing pediatric formulations, including 2FDC, 3FDC, and Rifapentine 150 mg dispersible tablets for children with tuberculosis. This commitment improves care for vulnerable populations.

Patient-Centric
Initiatives

Patient Centricity Goals and Targets

Patient Centricity Goals
Advancing Healthcare through
Quality, Accessibility, and Engagement
National Reference Laboratory (NRL)

Established in Navi Mumbai, the NRL has set the foundation for Lupin Diagnostics’ expansion, with 28 processing laboratories across India.

Accessibility

410+ collection centers and efficient home sample collection services to enhance accessibility for patients.

Home Collection Service

Strong team and network for home visits, enabling easy booking, phlebotomist tracking, and a rating system for patients.

Patient Reach

More than 300,000 patients were served in FY23, enabling evidence-based treatment decisions.

Brand Awareness and Engagement

Digital marketing efforts, loyalty cards, and retail campaigns have generated 60 Mn impressions, effectively connecting with patients.

Value-Added Services

Dynamic smart reports for patients, including health monitoring tips and historical trend graph analysis.

Quality Assurance

Adherence to stringent quality control protocols and international benchmarks, with NABL accreditation for Pune, Nashik, Kolkata, Burdwan, Bankura, and the NRL’s Covid lab, ensuring accurate and reliable diagnostic results.

Free Screenings

Organized over 4,800 camps in Labs and the LupiMitra network, offering free screenings for prevalent conditions such as diabetes, thyroid disorders, and cholesterol.

Healthcare Professional Engagement

Active involvement in Continuing Medical Education (CME) sessions and Regional Training Meetings (RTMs), promoting knowledge exchange and highlighting the value of pathology in comprehensive healthcare management.

LYFE - Digital Therapeutic Solution for Holistic Heart Care

LYFE

LYFE, Lupin’s digital therapeutic solution, revolutionizes heart care for individuals with chronic cardiovascular diseases.

This AI-powered platform combines AI and ML with human intelligence to provide personalized patient care. LYFE simplifies managing cardiovascular conditions through seamless communication and collaboration between patients and healthcare providers.

Key features include continuous vital health monitoring, medication reminders, emergency assistance, and access to a dedicated team of care managers, health coaches, and nutritionists. LYFE’s multidisciplinary approach ensures personalized guidance and adherence to treatment protocols.

By merging medical expertise with digital technology, LYFE delivers a comprehensive end-to-end cardiac care experience, empowering patients to improve their outcomes.

Atharv Ability

Atharv Ability

Stroke incidences are prevalent in India, with the average age of patients being almost ten years younger than those in other parts of the world. A staggering 60% of stroke cases in India result in some form of disability, ranging from partial or complete paralysis to difficulties with motor control, language comprehension, swallowing, and cognitive function. To aid in recovery, patients with these disabilities require a multidisciplinary rehabilitation treatment program to help them regain their functional and cognitive abilities. In addition to stroke there are a host of other neurological conditions that require physical rehabilitation. Lupin’s Atharv Ability, an outpatient Neurology Rehabilitation Center is enabling patient’s access to the latest technologies the field of neurorehabilitation, including robotics, virtual reality and other computer-assisted technologies. This first-of-its-kind neuro rehabilitation facility in India offers a range of rehabilitation programs for post-stroke patients, patients with traumatic brain injury, spinal cord injury, and pediatric neurological conditions as well as for other neurological conditions including Parkinson’s, cerebral palsy, and multiple sclerosis. The center has a comprehensive suite of advanced equipment, including end-effector based robotic solutions. Atharv Ability offers every neuro rehabilitation therapy under one roof.

This includes for gait and hand training, balance training and postural control, occupational therapy, speech and language therapy (SLT) and swallowing therapy, cognitive behavioral therapy, aquatic therapy, visual therapy, among others. In addition, the center offers neuro rehabilitation for paediatric patients. For the first time in India, Atharv Ability has introduced a dedicated home environment simulation space for “Activities of Daily Life” training that supports patient daily life and their interaction with the environment. The training improves their functionality and cognitive abilities and helps them integrate back into normal life.

Within four months since the center was inaugurated, Atharv Ability has offered effective rehabilitation to over 1,000 patients through the 3,000+ multidisciplinary therapy sessions conducted. The center has empowered many individuals to regain mobility and independence, and thereby, transformed their lives.

AI Screening for Breast Cancer

AI Screening for Breast Cancer

Lupin’s collaboration with Niramai introduces a groundbreaking Breast Cancer Screening program utilizing Thermalytix™. With regulatory approvals from ISO 13485:9001, CDSCO, FDA, CE Mark, and MDSAP, this cutting-edge technology surpasses manual thermography by 70% in prediction accuracy and outperforms mammography by 27% in precision.

This initiative positions Lupin as a frontrunner in promoting technological innovations and providing accurate and early breast cancer detection. By embracing AI screening, Lupin contributes to raising awareness, enhancing accessibility, and saving lives in the fight against this devastating disease.

Responsible Supply Chain Management

We are deeply committed to upholding a responsible and reliable supply chain management system that enables us to consistently deliver high-quality healthcare products to our customers. By forging trustworthy partnerships and implementing responsible sourcing practices across our global supplier network, we prioritize key aspects such as labor rights, human rights, worker health and safety, and environmental stewardship. This approach not only mitigates risks but also ensures uninterrupted production of our products.

Our Responsible Procurement Policy and Third-Party Code of Conduct are the cornerstones of our responsible supply chain management programs and processes.

Through the former, we align suppliers with our ESG objectives. While the latter helps prioritize ethical standards and holds ourselves and our partners accountable. Both policies apply to our suppliers, distributors, technology partners, and contract manufacturers, demonstrating our commitment to integrity throughout our supply chain.

Supplier Engagement

Our Integrated Business Planning (IBP) strategy serves as a proactive approach to managing risks, promoting supply chain integration, and minimizing disruptions. By adopting IBP, we prioritize transparency, gain valuable insights, and make informed decisions that optimize market serviceability while effectively managing costs.

Our dedicated Global Sourcing and Contract Manufacturing (GSCM) team plays a pivotal role in engaging with suppliers worldwide. They focus on optimizing procurement formulations and contract manufacturing through centers of excellence. We conduct regular assessments to evaluate factors such as cost, supply continuity, and material rejection, while also emphasizing collaboration with domestic manufacturers to reduce import dependency and contribute to the local economy. Currently, we have active partnerships with ~1,100 direct material manufacturers, ~720 of which are Indian manufacturers, accounting for approximately 66% of our sourcing. However, for specific materials such as Penicillin G, vitamins, and packaging components for inhalers, we rely on imports due to the absence of a domestic supply base.

Our formulation manufacturing facilities in the U.S., Brazil, and Mexico have regional procurement teams. In the FY23, we collaborated with 7,716 suppliers. We had associations with 9,683 suppliers in FY22 and 9,395 suppliers in FY21. Our procurement budget for these three years was entirely allocated to our suppliers.

Critical Suppliers

We have implemented a supplier segmentation methodology to effectively monitor and minimize risks associated with our suppliers. Our suppliers are categorized as Strategic, Critical, Leverage, and Routine based on their spending and criticality. Periodic evaluations shall be conducted for each category.

Our strategic & critical suppliers substantially impact our competitive advantage, market success, and overall survival as a company. We identify the criticality based on the following criteria:

  • Strategic importance (40%)
  • Alternate Supplier Availability (30%)
  • Switching Costs/Time (30%)

High-Volume Suppliers provide a substantial volume of materials, and their contribution to our total supplier spend is substantial, while Critical Component Suppliers deliver vital components for our operational requirements and product quality. This category includes both imported materials and substances used in our top-selling products. Non-Substitutable Suppliers offer materials that are challenging to substitute due to the significant time and investment required or the difficulty in finding alternative vendors. By monitoring and managing our strategic & critical suppliers diligently, we fortify our organization against risks, ensuring resilience and excellence.

Based on the supplier segmentation, we engage with Strategic and Critical suppliers through senior leadership, focusing on mutual value creation. Routine and Leverage suppliers have transactional relationships prioritizing regular transactions and operational efficiency. Additionally, we’ve shortlisted Strategic, Critical, and Leverage suppliers for detailed ESG assessment.

Breakup of our Total Direct Suppliers (FY23)

Breakup of our Total Direct Suppliers

Supplier Categorization

Supplier Categorization

Share Of Total Procurement
Budget Spent (%)

Share Of Total Procurement

Supplier Risk Management

At the core of our operations is a robust supplier risk management system that prioritizes sustainability throughout our supply chain. We partnered with a trusted third-party assessor and developed a comprehensive framework focusing on environmental, social, and governance (ESG) factors. This transparent assessment process provides valuable insights for targeted actions and upholding sustainability standards.

When evaluating suppliers, we consider various factors such as financials, business & operations, industry-specific parameters, and sustainability practices. Based on the results, suppliers are categorized as high, medium, or low risk. With proactive engagement as our guiding principle, we actively collaborate with medium and low-risk suppliers, understanding their needs and providing guidance, support, and opportunities to enhance their supply chain networks. As a risk mitigation measure, we proactively identify and develop alternate suppliers.

Supplier ESG Program

To track the ESG impact in our supply chain, we closely monitor suppliers for compliance with environmental laws, regulations, and industry standards. We assess activities, processes, and ESG risks, recommending actions for improved supplier ESG performance.

Secondary research based ESG assessment has been completed for 50% of Direct material suppliers, and a questionnaire-based self-assessment is scheduled for August 2023. We target to complete the self-assessment for all Strategic, Critical & Leverage suppliers by the end of fiscal 2024.

Supplier Assessment and Development Program

We are dedicated to implementing a comprehensive Supplier Assessment and Development Program. Our assessment process involves on-site evaluations by our internal cross-functional team, contracted consultants, and accredited auditing bodies. Identified areas for improvement will be addressed through corrective plans and action items.

Furthermore, our supplier development program focuses on equipping suppliers with vital information and training on our ESG program. We provide extended support to our vendors for implementing corrective actions and improving the overall ESG performance.

Through these initiatives, we aim to foster a culture of continuous improvement and collaboration with our suppliers, ensuring they meet and exceed the highest standards of ESG practices. Together, we strive for a sustainable and responsible supply chain that drives positive impact.

Leveraging Technology for Supply Chain Management

Throughout the year, we have harnessed the power of technology to revolutionize our supply chain management. By seamlessly integrating “SAP S4 HANA” for enterprise resource planning and “Oliverwight IBP” for supply chain management, we have unlocked unparalleled operational efficiency across our extended supply chains.

Our commitment to continuous improvement has fueled a series of impactful initiatives.

  • Relentless focus on maintaining accurate and updated material masters
  • Reducing material lead times to ensure timely availability
  • Optimizing manufacturing processes for enhanced efficiency
  • Implementing a customized tracking mechanism to effectively manage material shortages
  • Efficient campaign planning to minimize demand and supply gaps
  • Adoption of a monthly Sales and Operations Planning (S&OP) process

These initiatives have yielded significant improvements in our resource planning, seamless integration of demand and supply for finished goods, streamlined management of raw materials and packaging materials, and enhanced visibility at all levels has empowered efficient decision-making.

We achieved an FG OTIF of 94% in the U.S. market and 95% in other export markets in FY23

Customer Engagement

At Lupin, we place paramount importance on engaging and serving our diverse customer base, which includes healthcare practitioners, government agencies, pharmacy chains, and hospitals across multiple markets. Our unwavering commitment is to deliver exceptional service and ensure customer satisfaction in every interaction.

Throughout the year, we proactively engaged with numerous customers through a combination of physical and virtual programs

We employ various communication channels such as video calls, phone calls, social media platforms, town halls, and trade shows to engage with our customers effectively. These platforms allow us to adapt to the changing business landscape and foster meaningful connections. We actively participate in prestigious industry events and conferences, such as NACDS Annual and Total Store Expo meetings and AAM conferences, providing opportunities to connect with customers, facilitate discussions, and offer firsthand experiences.

Our senior leadership, including the CEO, EVP, and SVP, remains easily accessible and engages with customers to ensure alignment with their respective senior leadership teams. Quarterly business reviews are conducted to provide updates on sales activity, upcoming launches, and growth opportunities, demonstrating our commitment to transparency and collaboration.

Our customer engagement strategy revolves around building strong relationships, delivering exceptional service, and consistently surpassing customer expectations.

SmartRep Revolutionizes Sales Engagement: Empowering Sales Representatives to Achieve KPIs and Elevate Customer Interactions

SmartRep empowers sales representatives with quality service, using a nudge engine to guide them in driving the effectiveness of the meetings with doctors and stores, helping to achieve KPIs. It assists in preparing for important activities like medical events and other important dates concerning the doctors and practitioners. Acting as a personal coach, it shares top-performing KPIs, best practices, and skill improvement areas. SmartRep boosts demand generation, leading to positive business outcomes and improved sales engagement.

Our Grievance Redressal Mechanisms

India

There is a hotline available to address any concerns or issues that may arise.

USA

  • For product-specific patient complaints, the IQVIA Medical Affairs hotline is the designated channel to handle such matters
  • Additionally, a customer service support team manages complaints related to shortages, overages, and damages during transit

Canada

  • The pharmacovigilance team is responsible for handling medical and adverse drug reaction requests
  • Lupin Pharma Canada did not have any backorder in FY23

South Africa

An internal and external medical information hotline is available to address concerns.

Mexico

  • Formalized Complaint Management System is in place. This outlines the guidelines to be followed for the reception, investigation, and closure of complaint concerning the quality of a product
  • Complaints received are recorded in the Rapid Alert System (RAS) within 24 hours of notification
  • Complaints are categorized as Critical, Major, Minor, or Adverse Reaction based on their impact on the drug’s quality, safety, or efficacy

EMEA

Dedicated medical information hotline is available to record customer complaints

Public Relations and Brand Management

Lupin has achieved remarkable success in enhancing its brand reputation and delivering impactful communication, making a lasting impact on the healthcare industry. Our strategic approach encompassed press releases, interviews, and industry stories, along with targeted PR campaigns. This resulted in extensive positive coverage across 44 cities in India, with a total of 18,370 mentions in relevant media outlets. Through this, we achieved an impressive reach of 25 billion impressions, effectively strengthening our brand presence and conveying our key messages. Our strategic social media campaigns, focusing on business propositions, key therapy areas, and topical days, garnered 5.3 million impressions on our social media platforms.

Our consistent digital strategy has fueled significant growth in our follower base, with a notable increase of 40% on LinkedIn, 21% on Twitter, 42% on Instagram and 5.8% on Facebook. This growth is a testament to our commitment to connecting with stakeholders and sharing valuable insights.

Public Relations and Brand Management
Our efforts earned us a place in Reputation Today’s Top 30 Corporate Communications Teams, 2023

Maximizing Shareholder Value

At Lupin, we prioritize maximizing shareholder value and delivering unparalleled investor satisfaction. To achieve this, we actively engage with our shareholders through various communication channels such as LinkedIne-mails, circulars, earnings calls, presentations, meetings, and conferences. We also utilise digital platforms for paperless communication to minimize our environmental footprint and ensure regulatory compliance.

prioritize maximizing shareholder value
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INTEGRATED REPORT
2022 - 2023

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