Lupin is committed to ensuring that its core value of "Respect and Care" is upheld in its relationship with stakeholders and that this is reflected in its operations.

The Lupin Human Welfare & Research Foundation (LHWRF), an independent entity of Lupin Limited, was established with the objective of providing a sustainable, replicable, and continually evolving model of holistic rural development in India.

We understand that each community may have its own unique requirements, creating a differentiation that would be helpful in bringing about a change at the grass-root level. Therefore, our implementation model begins with a needs-based assessment across the villages we work in. Participatory rural appraisal exercises such as baseline surveys, social mapping, focus group discussions, meetings with village leaders, and transect walks ascertain the genuine requirements of the villages.

INR
339.9 Mn

CSR Spend in FY22

2.5 Mn

Lives Touched
by LHWRF

9,683

Suppliers

engaged with in 2022

21.2 Bn

Impressions

created by Public Relations activities

Today, LHWRF has a presence in 2,285 villages— located in 71 blocks of 21 districts across nine states in India. It operates through 20 centers and has introduced an efficient system that focuses on uplifting and empowering marginalized sections of society. Through these centers, we are proud to state that we touched the lives of over 2.5 Mn people.

Nine states with LHWRF presence

LHWRF believes that the implementation of development programs needs to be socially cemented through synergizing community-based organizations and local institutions. In the areas of our interventions, we have promoted this collaboration for future growth and sustainability through:

  • Lupin Gram Vikas Panchayat (LGVPs)
  • Farmer Producers Companies (FPCs) or Off-Farm Producer Organizations (OFPOs)
  • Self-help groups (SHGs) and SHG federations
  • Other groups such as water user groups, Village Watershed Committees (VWCs), or Joint Liability Groups (JLGs) as per project norms of partner organizations such as NABARD.

The communities we work with are treated as equal partners in development and are engaged in the implementation of the projects from the very beginning. The work is monitored by the community and upon its completion, the Panchayat takes responsibility for the same. To redress grievances that may arise, we have developed rules and procedures at village institution levels for timely resolutions5.

LHWRF’s work has been centered around contextualized social development models which focus on four key pillars that enable us to create developmental strategies and put communities and their needs at the heart of all our programs.


With these pillars forming a strong foundation, the impact created through our initiatives in FY22 has been summarized below:

INR
339.9 Mn

The amount spent on
CSR for FY22 was

Provision of Tailoring Skills to Empower Tribal Women

23-year-old Bhagyashree Vasant Tambada comes from a desolate tribal hamlet called Malpada of Dhanivri village in the Palghar district. With five siblings and an annual income of INR 40, 000, she was seeking an opportunity through which she could support her family. At this juncture, she came to know about the tailoring training course run by LHWRF.

Process/Intervention

The sewing machine training was started in villages by LHWRF under the NABSKILL program supported by NABARD in collaboration with Gram panchayats. After completing the course, Bhagyashree was placed at the Garment Production Center at Dhanivri which has a tie-up with the Anita Dongre Fashion House.

Impact

Due to her sharp skills, hard work and dedication, Bhagyashree has risen to the rank of supervisor in the unit. Now, she earns approximately INR 13,000 a month. With this, she can now help her family financially and her sisters can continue their education. Additionally, during the pandemic when virtual schooling was taking place, Bhagyshree purchased and gifted a smartphone to her two sisters who are undergoing college education.

“Training I received enabled me to get a job. Though my education halted at the tenth grade, I am glad that my earnings help my sisters to continue their higher education.”

Dhule Pattern of Water Resource Development

In the wake of recurring drought, the Dhule pattern of water resource development—which combines water harvesting, river basin development and efficient water use—stands out. Lack of availability and access to drinking water at the doorstep makes living in rural areas difficult and laborious, with agriculture and livestock also suffering as water in most of the rainfed areas gets exhausted by mid-winter.

Addressing this water scarcity in both summer and winter required a solution at a scale where the whole river basin was treated for rejuvenation. Further, the program ensured efficient use of the conserved water. The major drive that shaped the Dhule pattern was river rejuvenation by deepening and treating the entire basin. About 162.50 km of the river basin area was excavated at 152 sites and treated by building 81 new, and repairing 142 defunct check dams. The program regenerated seven rivers, viz. Jamkheli, Lendur, Sur, Madari, Kan, Waghi, Pan and other local streams from three blocks of Dhule district.

Impact:

  • The river rejuvenation programme in four blocks across seven rivers led to water storage capacity of 5,426.37 TCM, through which 15,787 acres of the area were brought under irrigation.
  • A total of 162.50 km of riverbed has been treated with 223 check dams constructed and/ or repaired.
  • 11,857 families economically upgraded through Water Resource Management.
  • 881 poor tribal families now have irrigation facilities to cultivate their farms throughout the year.
  • About 1,762 acres of rain-fed land transformed into irrigated land.
  • The availability of water through the Group Well Irrigation System has given a sustainable source of income to these families, because of which they were able to come out of the poverty trap.
  • Seasonal migration stopped among the families that benefited from Group well irrigation system.
    - Area under vegetable cultivation increased from 102 to 1,759 hectares.
    - Production grew from 850 MT to 44,052 MT in the same region.
  • Average annual income per acre from vegetable farming is Rs 110,238.

Nutritional Security

LHWRF believes that vegetable crop production is not only a better income generation activity but is also useful in ensuring nutritional security in the area. With the increase in the availability of nutritious vegetables in the farmer’s households, higher consumption within the household lead to additional health benefits.

Innovative cluster approach to achieve high impact and greater replication

  • LHWRF linked more than 2,376 farmers to vegetable cultivation programs in the cluster of villages in the district.
  • Through this innovative approach, the Foundation developed crop-specific villages in the project area.
  • Approximately 1950 farmers were linked with mixed vegetable crops, mainly potato cultivation, outside these vegetable cluster villages in the Bharatpur district.

Way Forward

Since inception, we have truly believed that communities are an integral part of the nation’s economic and social progress, and well-designed initiatives can have a positive and long-lasting impact. It is imperative for us to adapt to the changing environment and cater to the relevant needs of our communities while embedding the same in our core business strategy. In FY22, we introduced the ‘Lives and Livelihood’ strategy7 to further strengthen our commitment to improved economic opportunities and healthcare services. The goal of this approach is to contribute equally towards health and towards sustainable livelihood solutions.

The Lives program focuses on service delivery for cardiovascular and respiratory diseases and partners with healthcare practitioners on capacity building and training. The Lives program will be rolled out in FY23.

Lupin bagged the prestigious India Pharma Award for Excellence in Corporate Social Responsibility (CSR) for the second consecutive year.
This year (2022), we won the award for the Horticultural Cluster project of Bharatpur.

Lupin also won the ‘Excellence in CSR’ Award in the prestigious
9th Annual Manufacturing Today Conference and Awards.

Enhancing Patient Experience

Lupin’s branded generics offer cost savings to consumers:

  • Typically, 35% healthcare expenditure savings versus originator price in South Africa
  • 30-50% expenditure savings versus originator price in the U.K.

Lupin continues to enhance customer engagement, create disease awareness, and drive therapy adherence by undertaking digital and technologybased patient support programs. Some of the notable initiatives are:

Joint Airways Initiative: Lupin’s Joint Airways Initiative (JAI) is India’s first digital educator that educates patients on correct inhalation techniques and offers a wide range of value-added pulmonary services that enable patients to breathe easier.

Humrahi: An initiative with the intent of enhancing quality of life for diabetic patients on insulin, Humrahi has a physical presence in 20 Indian cities and virtual

presence across the country. Through the Humrahi Patient Education Program which offers insulin pen education, insulin storage tips, diet counselling and exercise suggestions, we have touched the lives of 4,000 healthcare practitioners and 150,000 patients

Anya: Powered by AI and Machine Learning, ‘Anya’, is India’s first, medically verified chatbot which answers queries related to Diabetes, Tuberculosis, Respiratory Ailments, Hypertension and Heart Failure in five regional languages. ‘Anya’ is available to our patients on WhatsApp (+91 7045 770 770) in addition to Facebook messenger (@askanyabot) and the web portal (www.askanya.in).

Heart Rate – The Missing Link

As per the World Health Organization (WHO), India accounts for one-fifth of the total number of deaths from stroke and ischemic heart diseases. To create awareness and bring attention to this critical concern, we published a book titled ‘Heart Rate – A Missing Link?” which witnessed the contribution of 114 eminent cardiologists. To further reinforce the importance of cardiovascular diseases, we also created a ‘Guinness World Record’ for the largest book sentence, having 4,921 copies of the book to display the title.

#SayYesToLife

With the objective of raising awareness about mental health, Lupin partnered with Shaan, the famous Indian playback singer, for the re-launch of his iconic song, ‘Tanha Dil Tanha Safar’. The official video of this song focuses on an individual suffering from Clinical Depression and portrays his journey through acknowledgement, acceptance and finally, the admittance of his current situation. Further, the video highlights the importance on destigmatizing the need for professional help.

Through difficult times, where words fail, music takes over as the most powerful means of expression and whilst this song track focuses on a serious issue, it still has magic and soulfulness that can help people through a difficult time.

The audio and video of the song is available on Youtube: https://www.youtube.com/watch?v=8x_ocX9i6CQ

Shakti

“Good health is very important to me because my flexibility, form, and professional life depend on it. Along with a physical fitness regimen, one should also embed preventive screening tests for working towards optimal health. It is a myth that coronary heart disease is a man’s disease or that only older women are at risk. I’m happy to partner with Lupin in their efforts to spread awareness and promote good heart health among women.” - Mary Kom

Early detection and management of cardiovascular risk factors are paramount for improving women’s cardiovascular health and reducing premature mortality.

Coronary heart diseases are the leading cause of death for women in India and yet awareness levels on the issue remain abysmally low.

In FY22, Lupin Limited signed on six-time world boxing champion, Mary Kom as the brand ambassador for the ‘Shakti’ campaign, which is aimed at increasing awareness on heart diseases among women.

Engaging with our Suppliers

In a world of uncertainty, Lupin is committed to ensuring business continuity and maintaining service standards. In response to the rapid geographical growth, the Global Sourcing and Contract Manufacturing (GSCM) team has created centers of excellence which cater to the various elements of the supply chain such as procurement processes, outsourced formulations and contract manufacturing.

At Lupin, our top priorities8 with respect to supply chain management are cost, supply continuity and material rejection.

While we may be a global business, we work with domestic manufacturers to reduce import dependency and support the local economy. We have engaged with 1,300 active raw material manufacturers, of which 700 are Indian manufacturers, contributing to approximately 70% of our sourcing. However, for certain materials such as Penicillin G, vitamins as well as packaging components for inhalers, we import the same due to absence of a domestic supply base. In addition to India, we have formulation manufacturing facilities in the U.S., Brazil and Mexico where regional procurement teams are present.


In FY22, we engaged with 9,683 suppliers while in FY21 and FY20, we had associations with 9,395 and 8,600 suppliers respectively. Furthermore, 100% of our procurement budget for the three years was spent on the suppliers9.

At Lupin, the quality of our products is of utmost importance and suppliers are only onboarded after a series of stringent checks to warrant that they are aligned with the expectations of the company. Once the suppliers are associated with Lupin,

they are classified into categories — Strategic, Critical, Leverage and Routine — to improve our relationship with them and minimize the supply risk. We also ensure that periodic evaluations are undertaken for each of the categories:

Identification of Critical Suppliers

High volume suppliers or similar

a. Spend value for each purchase category


Critical component suppliers or similar

a. Spend value for each purchase category


High volume suppliers or similar

a. Spend value for each purchase category

Supplier Code of Conduct

In FY21, we established a target of implementing a Supplier Code of Conduct (CoC) for all our suppliers and vendors by 2022. This year, we are proud to state that we achieved this by developing our own Third-Party Code of Conduct which is applicable to the following stakeholders:

The CoC covers aspects such as labor rights, anti-bribery and corruption, health and safety, environment, ethics, data privacy, confidentiality and information protection.

For more details, please refer to our website:https://www.lupin.com/wp-content/uploads/2022/05/thirdparty-coc.pdf


Risk Management of Relationships

We understand that the supply chain is complex and hence we have built a two-tier mechanism for all our purchase materials which enables us to gauge our supplier’s dependency on foreign vendors.

To strengthen our process, we have collaborated with Bureau Van Dijk, to develop a risk assessment that evaluates the Environment Health and Safety (EHS) standards of our suppliers. Further, due to the to the nature of operations, Strategic and Critical suppliers are also assessed on the following parameters:

Based on the outcome of these assessments, these suppliers are categorized into ‘high’, ‘medium’ and ‘low’ risk. For the medium and low risk suppliers, we hold discussions to understand their current scenario and provide required guidance in terms of new business opportunities, improving their supply chain network or technical support with help of our R&D team.

As a precautionary measure, we also gauge alternate suppliers for those who are considered as high risk.


Engaging with our Customers

Customer relationship management plays an imperative role and is undertaken through various functions across locations. Our products are promoted, sold, and distributed in global markets through the support of experienced sales and marketing teams. In India, our market primarily consists of health practitioners while in U.S., Europe and the Growth Markets, our products are sold directly to the customers including governments, pharmacy chains, leading wholesalers and hospital purchasing organizations.

At Lupin, we firmly believe that our customers play an integral role in the growth of the company. It is important to connect with them and understand their needs while showcasing our story and vision and commit ourselves to creating innovate products to improve the health of individuals. We engage with our customers through various modes of physical and virtual communication such as videocalls, phone calls and social media platforms. In the U.S., there is a regular occurrence of townhalls and Trade Shows which enable the company to explain new approaches and strategies.

In Mexico, we have collaborated with ‘Medscape’, the most consulted medical platform for developing a marketing digital strategy to enhance customer service in the region.

Additionally, we participate in the ophthalmic congresses such as the National Ophthalmic Congress, the annual meeting of the International Course of Glaucoma, Cornea and Retina Annual Meeting as well as the annual meeting of the Plastic Surgeons.

To address customer grievances in the global locations we operate in, we have developed a robust grievance redressal mechanism which ensures timely resolution of complaints. In the U.S., all product-specific patient complaints are handled through the IQVIA Medical Affairs hotline. Additionally, there is also a customer service support team with a specific phone number and email address for managing complaints on shortages, overages, damages during transit, etc. Similarly, for the EMEA region, we have a ‘Medical Information’ hotline to record customer complaints. We are proud to state that through the course of the year, the number of complaints decreased and the completion rate for grievance resolution was 100%. In Mexico, we have formalized a Complaint Management System, which specifies the guidelines to be followed for the reception, investigation, and closure of complaint with respect to the quality of a product. Any complaint received is recorded in the system and classified as per the Rapid Alert System (RAS) in less than 24 hours after its notification. The complaints are classified as Critical, Major, Minor or Adverse Reaction according to the impact it has on the quality, safety, or efficacy of the drug10.

COVID Support

In 2021, we conducted numerous activities to provide assistance to individuals and organizations under our COVID-19 support programs. In the months of April through June, we organized initiatives to provide oxygen gas plants, oxygen concentrator machines, hospital supplies, PPE kits, ventilators, office supplies, and more, amounting close to INR 3.9 Mn. For employees, we organized a Vaccine Champion and Hospital Task Force. Vaccines were available through this program across India. In addition, any COVID affected

employee or family member was provided critical medical and admission support whenever in need for hospitalization. Year 2021 was truly devastating for India as COVID impacted 1.42 Crore lives. Over 5,000 of our employees, including 2,500 within IRF, suffered from COVID. The COVID-sensitive leave policy, work from home policy and extended medical and insurance coverage allowed us to reduce the impact of the crisis in multiple ways.

Public Relations

In FY22, our public relations activities were conducted across 27 cities with a cumulative print coverage of 1,440 and online coverage of over 28,000 in relevant media houses. This helped with an overall reach of 21.2 Bn impressions through press release, interviews, authored articles and speaking engagements. Our social media reach for these PR-driven initiatives was 402 Mn. In addition, in FY22, we rolled out over 20 unique campaigns with a cumulative reach of almost 40 Mn with 1.7 Mn in engagement across our channels of Facebook, Twitter, LinkedIn and Instagram. Through our campaigns under various themes, we have managed to grow our followers by 30% on LinkedIn, 21% on Twitter, 5.8% on Facebook and 42% on Instagram.

Maximizing Shareholder Value

The protection of investor interests and concerns is of primary importance to Lupin. Our ability to create value and meet our commitments is dependent on the trust and support of our investor community. Our investors are regularly engaged through circulars, earnings calls, presentations, meetings and conferences.

The FY21 Integrated Report was shared via email with shareholders. Last year, most of our communications with our shareholders were paperless, helping us to reduce our environmental impact while meeting regulatory requirements.