Gujarat Terce Laboratories Ltd

Dear Shareholders,

It is a pleasure to be addressing you through this communique as we rebounded smartly in FY22 after a slip in the previous year. Our revenue increased by 59% over the previous year while our EBITDA grew by 172% and our industry-beating performance was owing to two factors – a resurgence in demand and the untiring effort of our team to get the Company back on the progressive track. The question now remains, how do we move forward? What do we do next to sustain our ambition of progressing the business profitably? With this objective in mind, we have drawn up a strategic blueprint that is platformed on multiple pillars. One, we will need to rebalance our product portfolio between acute and chronic therapies. We have been consistently working on this delicate rebalancing exercise to reach a 75/25 ratio currently. Most products launched in the last 24-30 months are addressing chronic therapies. We hope to arrive at a 70/30 ratio in the next year. We expect to continue the skew towards chronic therapies in the near future. This would help us in making our revenue accrual more stable and predictable and will go a long way in improving business margins. Two, we need to aggressively expand our footprint pan-India. Currently, we are only present in 13 states. We need to catch up with speed to achieve our articulated goal of establishing a pan-India presence by 2025. We are also studying the contours of launching a Strategic

Business Unit in the current year focused on therapeutic areas like dermatology, gynecology, and neurology. This will help us in leveraging our current operations better and adding new specialist doctors to our relationship model.

Three, the revenue from our portfolio of precious brands grew by 77% in FY22 over FY21. Our top 10 brands gave us 68% of our revenue. Our aim would be to focus on enhancing the reach and awareness of these brands among the medical fraternity across the geographies of our presence. We would also plan to add some more brands within this coveted group to enhance our growth momentum over the coming years. Four, we will add more strength to our team. We plan to hire fresh recruits which will bring in new ideas, energy and excitement into our operations. We intensify our training efforts in functional and behavioural aspects to uplift the skill sets of the entire team. Also, we plan to launch a Management Development Program for the middle management to groom them for leadership roles.

Our plans appear daunting, which makes our journey even more riveting. I am particularly excited about our prospects going forward.

My optimism also rests on India's thrust on strengthening the healthcare infrastructure and services. The Government is squarely focused on increasing the number of hospitals across

India with a special focus on Tier I and II cities to ensure that it can better cope with a health scare of the intensity of the recent pandemic. This should open interesting growth opportunities over the coming years. We, at Gujarat Terce, will work deliberately to ensure that the Company always remains relevant and current to the people we serve and to the changes taking place in our environment. To that end, we continually shape the Company, strategically choosing the businesses in which we compete, to achieve the optimal configuration for success. On behalf of the Board, I would like to thank our esteemed shareholders, partners and other stakeholders for believing in our story and reposing their confidence in our capability and extending their support in our long journey. I continue to solicit your co-operation.