MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS

You should read the following discussion in conjunction with the Restated Financial Information included herein as of and for
the six months ended September 30, 2021 and the financial years ended March 31, 2021, 2020 and 2019, including the related
notes, schedules and annexures. The Restated Financial Information has been prepared in accordance with Ind AS. Ind AS
differs in certain material respects from IFRS and US GAAP. See “Risk Factors — External Risk Factors — Risks Related to
India — Significant differences exist between Ind AS and other accounting principles, such as US GAAP and IFRS, which may
be material to investors’ assessments of our financial condition.” on page 52.

Our financial year ends on March 31 of each year. Accordingly, all references to a particular financial year are to the 12-
month period ended March 31 of that year. Financial information for the six months ended September 30, 2021 and 2020 is
not annualized and not indicative of full year results, and is not comparable with the annual financial statements presented in
this Prospectus.

We have included various operational and financial performance indicators in this Prospectus, many of which may not be
derived from our Restated Financial Information or otherwise be subject to an examination, audit or review by our auditors or
any other expert. The manner in which such operational and financial performance indicators are calculated and presented,
and the assumptions and estimates used in such calculations, may vary from that used by other companies in India and other
jurisdictions. For the purposes of this section, for certain analyses we have used historical methodologies and internal
categorizations to enable a consistent representation of our business. Such information may vary from similar information
publicly disclosed by us in compliance with applicable regulations in India. Investors are accordingly cautioned against placing
undue reliance on such information in making an investment decision, and should consult their own advisors and evaluate such
information in the context of the Restated Financial Information and other information relating to our business and operations
included in this Prospectus.

Unless otherwise indicated, the industry-related information contained in this Prospectus is derived from the Technopak Report
dated November 19, 2021 which has been commissioned and paid for by our Company for an agreed fee for the purposes of
confirming our understanding of the industry exclusively in connection with the Offer. We officially engaged Technopak
Advisors Pvt. Ltd., in connection with the preparation of the Technopak Report on June 10, 2021. Unless otherwise indicated,
all financial, operational, industry and other related information derived from the Technopak Report and included herein with
respect to any particular year refers to such information for the relevant financial year.

This discussion contains forward-looking statements that involve risks and uncertainties and reflects our current view with
respect to future events and financial performance. Actual results may differ from those anticipated in these forward-looking
statements as a result of factors such as those set forth under “Forward-looking Statements” and “Risk Factors” on pages 27
and 29, respectively.

Overview

We are the second largest pharmacy retailer in India, in terms of (i) revenue from operations for the financial year 2021, and
(ii) number of stores as of March 31, 2021, according to the Technopak Report. For details, see “Industry Overview —
Competitive Benchmarking — Pharmacy Retail Market — Revenue” and “Industry Overview — Competitive Benchmarking —
Pharmacy Retail Market — Store Count” on pages 140 and 138, respectively. We offer a wide range of products, including (i)
pharmaceutical and wellness products, including medicines, vitamins, medical devices and test kits, and (ii) fast-moving
consumer goods, such as home and personal care products, including toiletries, baby care products, soaps and detergents, and
sanitizers. Our Company was founded in 2006 by Gangadi Madhukar Reddy, our Managing Director and Chief Executive
Officer, with the vision to set up a trusted pharmacy retail brand that offers genuine medicines and delivers better value to the
customer by reducing inefficiencies in the supply chain using technology. Our operations are primarily distributed between the
Issuer and Subsidiaries, as further described under "Our Business - Description of our Business" on page 154.

We have maintained a strong focus on scaling up our store network, having grown from operating our initial 48 stores in
Hyderabad at the conception of our business to operating India’s second largest pharmacy retail network of over 2,000 stores
distributed across Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Odisha, West Bengal and Maharashtra, as of March 31,
2021, according to the Technopak Report. Stemming from our focus on growing and achieving leadership in the key cities
where we operate, for the financial year 2021, our share of the organized pharmacy retail market, based on revenue from
operations, in Chennai, Bangalore, Hyderabad and Kolkata stood at approximately 30%, 29%, 30% and 22%, respectively,
according to the Technopak report. Our number of stores has grown since the conception of our business and, as of September
30, 2021, we operated 546 stores in Karnataka, 475 stores in Tamil Nadu, 474 stores in Telangana, 297 stores in Andhra Pradesh,
224 stores in West Bengal, 221 stores in Maharashtra and 89 stores in Odisha. We have continued to expand our store footprint
in key cities where we operate and, between March 31, 2010 and September 30, 2021, our number of stores in Chennai grew
almost five-fold from 62 to 304 stores, our number of stores in Bangalore grew three-fold from 110 to 340 stores, our number
of stores in Hyderabad grew over two-fold from 141 to 331 stores, and our number of stores in Kolkata grew over ten-fold from
22 to 224 stores. In terms of number of stores as of March 31, 2021, we ranked 1% in Chennai and Bangalore, and 2" in
Hyderabad and Kolkata, according to the Technopak Report.

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