Dr.

REDDY’S ECONOMIC INITIATIVES

 Affordable and innovative medicines

• FY2020, we invested ₹ 15,410 million (or 8.8% of

our revenue) in R&D
• FY2020 , We launched168 new products
• In FY2020,we filed 10 Drug Master Files(DMFs)
in the U.S.
Investment for cleaner technologies and capability
improvements

• Environmental expenditure
for FY2020 stood at ₹ 819.6
million
• Spent more than ₹ 8 million
on employees training and
development
 Operational Exercise

• We conducted an operational excellence diagnostic

exercise covering 1,000+ employees
• We have improved our make vs buy program by
manufacturing the product in house to enable savings
of ₹ 3,000 million over the next three years
CULTURE AND
CAPABILITY-
BUILDING
• Creating a zero-failure
environment
• Manager model areas
• SuCCEED (Sustained
Compliance through Culture,
Excellence, and Empowerment
Building capabilities towards supply assurance

• Products with a gap between demand and

supply were selected and prioritized for this
initiative.
• Bottlenecks were identified and a
decongestion exercise was undertaken
• 50% productivity gain recorded in one of our
manufacturing facilities
• 12% to 25% improvement across formulation
manufacturing facilities
 Digitalization

• Digitalize the core

• Data as an asset
• Platforms to transform
 Sustainable sourcing

• Identification of critical suppliers and

de-risking the supply chain
• Supplier engagement on sustainability
• Encouraging the shift from air to sea
shipments
• Promoting local sourcing
Dr. REDDY’S SOCIAL INTITAIVES
Following are the various aspects based on which various initiative
were launched

Education Livelihood Healthcare Innovation

 Pudami neighborhood schools

Established in 2007, To provide

English Medium Education to
Located in Secundrabad , Telangana
children of the marginalized section
of society

Emphasis on co-curricular activities Caters to 2,500 students. We

and opportunities for students to currently have 11 such schools with
develop talents over 5,278 students.
 Kallam Anji Reddy Vocational Junior College (KAR-VJR)

Established in 2002, To train

Located in Madeenaguda ,
student who have completed
Telangana
higher secondary education

2-year vocational course on

In FY2020, 800 students were
computer science , computer
benefited from this initiative
graphics and accounting
 In 2020, Implemented in
Started, FY2011
229 Govt. schools

Support Government All-round development

Schools of the students

SCHOOL IMPROVEMENT PROGRAM (SIP)

 GROW

Advancing job mobility through skill

GROW for People with Disability
development
 Advancing job mobility through skill development

 Established in 1996 as LABS program

 It helped people from the disadvantaged background
 2016, developed into GROW
 2020, trained more than 8000 youth of which 520 supported by Dr.Reddy's
 GROW for People with Disability (PwD)

• Skill development initiative to overcome orthopedic

challenges
• Modelled on the lines Of GROW program

• Well equipped infrastructure facilities

 Marking Integrated Transformation for Resourceful Agriculture
(MITRA)

A partnership between
Connects farmers with
farmers and Dr.Reddy's
Agri-scientists
Foundation

Focuses on improving
resources management as Operational in four Indian
well as digital and states
financial literacy.
 Health - Community Health Intervention Program (CHIP)

OBJECTIVES
• Increase healthcare access within rural
communities
• Reduce maternal and neo-natal mortality
rate
• Improve health-seeking behaviors and
community perception towards health
• Improve health awareness and reduce
reliance on myths COMMUNITY HEALTH INTERVENTION PROGRAM
• Reduce community financial and disease
burden
 Key activities under CHIP
• Bi-weekly Fixed Day Health Services (FDHS) offered at anganwadi
centers, panchayat buildings or community halls, where ASHA,
anganwadi workers, Auxiliary Nurse Midwifery (ANM) and the CHIP
team work collaboratively
• Home-based treatment for those with limited mobility such as the elderly
and those with high-risk pregnancies
• Walks and door-to-door visits for identification of health issues and
dissemination of health information
• Special focus on maternal and neo-natal healthcare
• Community-wide health education through discussion groups and
awareness programs
• Awareness sessions for school children
• Regular convergence meetings with the relevant stakeholders
ENVIRONMENTAL INITIATIVE
SUSTAINABLE DEVELOPMENT GOALS IN FOCUS
ENVIRONMENTAL ICWP
INITITAVIES
APPROACH TO
ENVIRONMENTAL
MANAGEMENT

Key focus areas are –

 emission management,
 energy efficiency
 water resource management
 resource conservation
 hazardous waste
management
 biodiversity conservation
WATER MANAGEMENT
To mitigate water security risk, we continue to undertake water conservation initiatives in line with our target to achieve 100% water neutrality by 2025.The
following initiatives indicate our approach to water management.

Water
Pinch Study

Internal Water Risk

Water Price Assessment

Water
Management

Water
Wastewater
Management Source
Security
This Initiative has helped In FY2020, 48% of the total
them achieve 8% water freshwater consumption was
neutrality recycled/reused.
 WASTEWATER MANAGEMENT

 Wastewater management help us mitigate the risks

posed to the environment by harmful effluents and
waste discharge
 In FY2020, we achieved a wastewater reduction
potential of 22,939 kl / per annum, with cost-
savings of ₹ 11 million.
 Total wastewater recycled/reused 851,494 KL
 Various project were undertaken like
 Zero Liquid Discharge
 Multigrade Filter
WASTE MANAGEMENT

Plastic neutrality and circularity

 They have adopted a waste circularity-
based model, where close to 40% of our
post-consumer waste will be recycled and
offset by us in the form of recycled
products like chairs, tiles, recycled paper,
and books, among others
 They aim to achieve plastic neutrality by
FY2023 for India operations and by
FY2025 for our global operations.
MATERIAL MANAGEMENT

 Ensure efficient use of resources and introduce recycled

materials wherever possible. Green Chemistry
 The application of green chemistry principles helps us
identify ways to reduce both the environmental impact
of our business and the potential negative health effects
of chemicals. This has enabled us to choose proactive
elimination of hazardous materials and improve
efficiency.
 Reduction in material
 Green Chemistry
ENERGY AND EMISSION MANAGEMENT

Renewable Energy Fuel Sustainable Supplier

energy efficiency switchovers agriculture sustainability
improvement

Our energy conservation initiatives have led to: Dr. Reddy’s is the first Indian pharmaceutical company to
• 4,450 metric tons of coal saved commit and receive approval for Science-Based Targets
• 578.92 kl furnace oil saved initiative (SBTi) for a 1.5-degree Celsius scenario in
• Achieved 10,112 tCO2e Scope 1 emission reduction COP25 and set an Internal Carbon Price (ICP).
 BIODIVERSITY
Some of our initiatives for FY2020 are as follows:
 Plantation of legume trees and nitrogen-fixing species
 Block plantation to represent forests
 Adoption of the Miyawaki technique, leading to strong plant growth and survival rate
 Utilization of bio-fertilizer as an additional application for enhanced plant growth
 Focused afforestation techniques
Dr. Reddy’s initiatives in comparison
with its peers
 ECONOMIC INITIATIVES
Dr. Reddy’s Sun pharma Piramal
• Invested ₹ 15,410 million in R&D • Invested 20,000 million in R&D • Invested 7649 million in R&D
• Investment for cleaner • Committed to hiring exceptionally • Enterprise risk management
technologies and capability talented human resources and • Responsible Management
improvements nurture them professionally • Fundraising Program
• Operational Exercise (Diagnostic • Higher focus on automation
exercise and make vs buy • Sunkalp campaign
program) • Product life cycle sustainability
• Culture and capability-building
• Building capabilities towards
supply assurance
• Digitalization (core,asset)
• Sustainable sourcing
 SOCIAL INITIATIVES
Dr. Reddy’s
• Pudami neighbourhood schools
• Kallam Anji Reddy Vocational
Junior College (KAR-VJR)
• School Improvement Program
(SIP)
• Advancing job mobility through
skill development
• Marking Integrated
Transformation for Resourceful
Agriculture (MITRA)
• Health - Community Health
Intervention Program (CHIP)
Sun pharma
• Mobile Healthcare Unit
• Health Awareness Camp
• Malaria Elimination
Demonstration Project
• Upgrading School Infrastructure
• Skill development training
• Promotion of Scientific Medical
& Pharma Research
• Drought Proofing
• RO Water System
Piramal
• Health & Nutrition
• AMRIT
• ASARA
• Aspirational District
Transformation Programme
• mTMC
• System Transformation Products
Innovation
• State Transformation Program
• Aspirational District
Transformation Program
 ENVIRONMENTAL INITIATIVES
Dr. Reddy’s Sun pharma Piramal
• Science based targets initiatives • Environmental health and safety • Creating optimal and responsible
• Task Force on Climate-related program environment (CORE program)
Financial Disclosures (TCFD) • Clean Development mechanism • Water conservation Initiatives like
• Internal Carbon & Water Price • Green belt project Electrolytic cooling water
treatment system
Sustainable
Business model
canvas
Positive impacts:
Employee skill upgradation
Water Management
Resource conservation
Sustainable partners
• Teacher
• Suppliers of physician and
nonphysical goods
• Scientist
• Employees
• Manufacturers
• Service Providers
• Government
• NGO
• WHO-GMP certified
business partners
• Self-managed team
Cost Structure and Additional Cost
• R&D costs
• Manufacturing costs
• Initiative expenses
• Building overheads
• Insurance
• Payroll
• Disposal expenses
• Inventory cost and logistics
Sustainable value creation
• Higher production of
oncology medicine
• Cleaner lakes
• Provision of PPE kits
Sustainable Tech & Resource
• API (Active
pharmaceutical
ingredients)
• Technology and digital
tools. (enable)
• Manufacturing tools
Negative Impacts:
Lower profit margin
OPerational EXpenses went up
Capital cost went up
Sustainable Value Sustainable Customer Relation Responsible Customer
Proposition • Generic Medicines • Hospitals
• Wastewater management • Quality of product and services • Pharmacies
• Affordable Drug • Pricing Policy • Eco-friendly customers
• Education • Salesforce CRM
• Broad range of products • Geographical Expansion
• Resource Conservation • Diverse product portfolio
• Training local
communities
• Generating employment
• Reducing emission Sustainable Channels End of life
• Pharmacies • Landfill
• Salesforce • Incineration
• Website and application • Co-Processing
• Customer Service • Recycle/Reuse
• E-commerce
Subsidization Revenue and Sustainability Premium
• Tax Exemptions • Patent
• Government • Public Funding
• NGOs • Sales