Niramaya Pharma Limited (with the motto "Serve Santu Niramaya" i.e., may all be free from illness), a registered supplier of bulk drugs, is…

Niramaya Pharma Limited (with the motto "Serve Santu Niramaya" i.e., may all be free from illness), a registered supplier of bulk drugs, is headquartered in Mumbai, Maharashtra. The company manufactures bulk drugs and supplies them to both domestic and international markets. It qualifies as a medium-sized entity under the MSME legislation. Bulk drugs are supplied within Mumbai and to overseas markets directly from the company's warehouse located in Navi Mumbai. For supplies to other states in India, Niramaya Pharma Limited has appointed consignment agents in each such state. However, supplies to Aurangabad (Maharashtra) and Goa are made directly from the Navi Mumbai warehouse. The consignments meant for consignment agents are also dispatched from the Navi Mumbai warehouse. The pharmaceutical industry in India is marked by a vast and diverse range of products, characterized by both extensive product lines and depth, along with numerous drugs under development. Niramaya Pharma Limited reflects this industry trend, maintaining a substantial portfolio in which the majority of products are still in development. The probability of success for new drugs is relatively low, as many fail to progress through clinical trials or are found economically unviable for launch. However, the potential returns from a successful new drug are significant, often making just a few marketable products sufficient to ensure strong profitability. At present, Niramaya has 132 drugs at various stages of development, including testing and clinical trials, before decisions are made regarding their market introduction. Only 15 products have been launched, of which four key products contribute substantially to the company's revenue, as detailed below – Giapride, a medication developed to improve gastrointestinal function, has been available in the market for the past two months. Despite the presence of alternative treatments, Giapride is witnessing growth in both market size and relative market share. Its competitive pricing compared to existing alternatives further strengthens its position in the market. Lifedipine, a drug used in the treatment of heart disease, has been available in the market for two years and has achieved considerable success during this period. However, its sales have now stabilized, and no significant increase is expected in the coming years. Combi-Relief, an analgesic introduced over a decade ago, has established itself as a leading medication in its category. In a few months, its patent is set to expire, allowing other companies to produce generic versions. It is expected that Combi-Relief will continue to be sold for approximately twelve months after patent expiration before being phased out of the market. Immunol is a specialized medication used in hospital settings for the treatment of severe infections. It is not available for use outside hospitals through doctors or pharmacists. Introduced only three months ago, Immunol has not yet achieved significant sales. Additionally, Niramaya Pharma Limited provides drug development services to drug manufacturers across India, including testing of new drugs in its laboratory located in Mumbai. For testing of one of its products Niramaya Pharma Limited on 1st April 2025 acquired a new machine under the following lease agreement – 5 Annual payments of 2,00,000 will be due, commencing 1st April 2025.The interest rate implicit in the lease is 8%.The present value of the lease payments is 8,62,400. Medicines sold by Niramaya Pharma Limited attract Goods and Services Tax (GST) at prescribed rates depending on their category. Bulk drugs are taxed at the rate of 2.5% CGST and 2.5% SGST, or 5% IGST in case of inter-state supply. On the other hand, drug development services are liable to GST at the rate of 9% CGST and 9% SGST, or 18% IGST for inter-state transactions. In January 2026, Niramaya Pharma Limited undertook multiple transactions. The company received an advance of 4,22,500 for drug development services to be provided to Jonson Biotech Ltd., a drug manufacturer based in Mumbai; the services were rendered in February 2026 and the invoice was issued on 28th February 2026. An advance of 7,20,000 was also received for the supply of bulk drugs to ANZ Pharmaceuticals, a wholesale dealer located in Aurangabad, Maharashtra, with the invoice issued at the time of delivery in April 2026. During the month, bulk drugs worth - 42,00,000 were supplied to wholesale dealers in Mumbai, while bulk drugs valued at 4,20,00,000 were exported under bond to Fizer Alberta Inc., Canada, with consideration received in convertible foreign exchange. In addition, drug development services amounting to 14,20,000 were provided to Bi-Con Life Ltd., a drug manufacturer in Mumbai. Further, bulk drug consignments were sent to ZYD Pharma Pvt. Ltd., the company's agent in Haryana, and Arvind Medicos, its agent in Uttar Pradesh, who supplied them to medical stores in their respective states for 41,00,000 and - 14,00,000. Moreover, bulk drugs were supplied to Niramaya Healthcare Pvt. Ltd., a wholesale dealer in Aurangabad, Maharashtra, for a consideration of 14,00,000. Since Niramaya Pharma Limited holds 62.5% ownership in Niramaya Healthcare Pvt. Ltd., and the latter is not eligible for full Input Tax Credit (ITC), the transaction value is determined based on the open market value of 24,00,000. Niramaya Pharma Limited has a board composed of seasoned professionals who are well-known figures in the pharmaceutical industry. Even its functional executives hold prominent positions in their respective fields; for instance, the CFO is a former President of the All India Chambers of Commerce and Industry (AICCI). The Board is also balanced in terms of gender representation. To further enhance independence and transparency, Niramaya has appointed both Non-Executive and Independent Directors. Recently, Mr. Atul Gupta was appointed as the Independent Director of Niramaya Pharma Limited. He noted that the company is currently facing challenges related to the Inverted Duty Structure. The directors of Niramaya Pharma Limited convene Board meetings approximately once a month to review the product portfolio and evaluate potential investment opportunities. To deliberate on the three investment proposals listed below, a Board meeting was scheduled on May 8, 2025, at 3:00 p.m. at the company's Registered Office in Nariman Point, Mumbai. However, no business could be conducted due to the absence of a quorum, resulting in the adjournment of the meeting. Considering the constraints on borrowing capacity, the three investment options are mutually exclusive. The options are as follows: Option 1- The Board of Directors may choose to invest in an enhanced version of Combi-Relief, termed Combi-Instant-Relief, which offers superior performance compared to the standard formulation. This strategic initiative will allow Niramaya Pharma Limited to file a new patent for Combi-Instant-Relief, thereby sustaining the sales levels achieved by Combi-Relief for an additional ten years. Combi-Instant-Relief has successfully completed all clinical trials and is ready for immediate market launch. Option 2- The directors may allocate resources to a major marketing campaign for Immunol, targeting specialist hospital staff. While this investment is expected to significantly boost Immunol's sales, Niramaya is aware that its competitor, Go-Well, is actively promoting a rival product with similar efficacy, which may affect the campaign's impact. Option 3- The Board may invest in the final phase of clinical trials for Sanjeevini, a groundbreaking injection used in cancer treatment. Sanjeevini demonstrates significantly higher success rates compared to existing therapies and is part of the innovative field of immunotherapy (Refer Annexure). Niramaya's specialists overseeing its development anticipate completing the trials within six months. They recommend pricing Sanjeevini as low as possible to maximize societal benefits, in line with the company's motto “Sarve Santu Niramaya". Nonetheless, the marketing team believes that, due to its efficacy and innovative status, substantial profits can also be generated. Cancer remains a critical health challenge in India (Refer Annexure). Niramaya Pharma Limited is an IT-enthusiastic organization, consistently staying at the forefront of technological adoption. While the company previously relied on an external ERP solution, it has now implemented an in-house developed ERP system to ensure greater data privacy and control. This ERP comprises multiple integrated modules, including Vendor Management, Store, Accounts, Control, HRM, CRM, SCM, and BCP, all developed by Niramaya's experienced IT team. Access to each module requires a mandatory User-ID and Password, with the User-ID corresponding to the employee's ID, ensuring secure and controlled access to sensitive data. This robust IT framework directly supports the investment options under consideration by the Board. For Combi-Instant-Relief (Option 1), the ERP can manage production, inventory, and sales tracking efficiently for the newly patented product. In the case of Immunol (Option 2), the system can support targeted marketing campaigns and monitor hospital sales performance in real time. For Sanjeevini (Option 3), the ERP enables detailed tracking of clinical trial data, research documentation, and regulatory compliance, while safeguarding sensitive information critical for the success of this innovative therapy. To fund the selected options out of three mentioned above; Niramaya Pharma Limited will issues 10 crore 5% loan notes on 1st April 2026, Incurring issue cost of 3%. These loan notes will be redeemable at premium, that would result in the effective rate of interest is 8% per annum. Niramaya is also considering option to borrow from US market because it has aspiration to go global in term of presence (by incorporating/ registering a subsidiary there and to open drug stores there); apart from an obvious reason that it is cheaper to borrow fund from US than borrowing in Indian Market. Niramaya with valid FCRA registration receives 3 crore from a U.S.-based foundation to conduct free health awareness camps in rural India. Later, it transfers part of the funds to an unregistered NGO partner for community programs in violation of provision of FCRA and specifically the term and conditions of the certificate. Annexure The News Niramaya Pharma Raises Awareness on Early Cancer Detection and Immunotherapy Mumbai, February 5, 2025 – In a proactive initiative on World Cancer Day, Niramaya Pharma Limited conducted an awareness drive emphasizing the importance of early cancer detection and innovative treatment options, including immunotherapy. Between 2012 and 2022, India's population grew by 11.2%, while cancer incidence rose sharply by 36%, increasing from 1.01 million cases in 2012 to 1.38 million in 2022. Experts note that in India, one in nine individuals is likely to develop cancer in their lifetime, with lung and breast cancers being the most prevalent among males and females, respectively. Niramaya's campaign highlighted the critical need for early diagnosis and informed the public about modern treatment approaches, particularly immunotherapy. This cutting-edge treatment harnesses the patient's own immune system to identify and attack cancer cells, employing methods such as checkpoint inhibitors, vaccines, and CAR T-cell therapy. The awareness drive received widespread appreciation from the medical community, reinforcing Niramaya Pharma's commitment to societal health and its motto, "Serve Santu Niramaya" i.e., may all be free from illness.