37.

38.

* CAGR for Wellness Forever computed for FY 2019 to FY 2020 period as FY 2021 data was not available

We also operate in a rapidly consolidating industry. Our potential new or existing competitors may be able to develop or
provide a wider product offering at more competitive prices, or respond more quickly and effectively to new or changing
opportunities, technologies, regulations or customer requirements.

The COVID-19 pandemic has changed consumer behaviours and accelerated the advancement of disruptive technologies
that has resulted in a significant increase in e-commerce competition. Disruptive innovation by existing or new competitors
potentially in the nature of a more user-friendly, innovative online channel or other such sales channel could significantly
alter the competitive landscape in the future. For instance, in recent years, various online pharmacy services have been
launched across India. In order to compete with such online pharmacy service providers and other potential new
competitors, we may have to incur additional expenditure towards enhancing our online presence and optimizing our omni-
channel platform, and may be required to alter our business strategy. However, we may be unable to keep up with the pace
of such behavioural changes or technological advancements, and this could adversely affect our operations and our
financial performance.

Competition may also come from other sources in the future. Changes in market dynamics or the actions of competitors or
manufacturers, including industry consolidation, the emergence of new competitors and strategic alliances could adversely
affect our pharmacy retail business. If our competitors gain significant market share at our expense, we may need to lower
the prices of our products or increase the level of discounts granted in order to retain customers, possibly reducing our
sales. For example, the level of discounts we have granted has been increasing in recent years. We cannot assure you that
we will be able to obtain inventory from our suppliers as per our current terms, or reduce our expenses incurred. This may
adversely affect our sales, business, financial condition and results of operations.

We are dependent on third party transportation for the delivery of products in certain areas and any disruption in
their operations or a decrease in the quality of their services could affect our reputation and results of operations.

We are largely dependent on third party transportation providers to facilitate the delivery of our products from our
warehouses to our stores. Although our business has not experienced any significant disruptions due to transportation
strikes in the past, any future transportation strikes may have an adverse effect on our business. At times, these
transportation facilities may not be adequate to support our existing and future operations. In addition, products being
delivered through these transportation facilities may be lost or damaged in transit for various reasons including occurrence
of accidents or natural disasters. There may also be delay in delivery of products which may also affect our business and
results of operation negatively.

 

Further, disruptions to transportation services due to weather-related problems, strikes, lockouts, inadequacies in the road
infrastructure and port facilities, or other events could impair ability to deliver goods on time. Any such disruptions could
materially and adversely affect our business, financial condition and results of operations. While there have been no past
instances during the past three financial years and the six months ended September 30, 2021 where such risk materially
affected our results of operations, we cannot assure you that such instances may not occur in the future.

A portion of our business varies across certain seasons and periods, which may adversely affect our business, results
of operation and share price.

A portion of the pharmacy retail business is seasonal in nature. As a result, we purchase seasonal inventory in anticipation
of seasonal demand. However, despite having a standardized stocking plan and a defined replenishment cycle for all our
stores, adverse events, such as public transportation disruptions, or unanticipated adverse weather, could result in lower-
than-planned sales during key selling seasons. This could lead to lower sales and impact our business and results of
operation in certain periods.
In addition to seasonality, our quarterly revenue and results of operations may fluctuate as a result of other factors, many
of which are outside of our control. If our quarterly revenue or results of operations fall below the expectations of investors
or securities analysts, the price of the Equity Shares could decline substantially. Fluctuations in our results of operations
may be due to a number of factors, including:

e demand for and market acceptance of the products being sold by us;

e the mix of services sold during a relevant period under consideration;

e the strength of the economy; and

© competition, including entry into the industry by new competitors and new offerings by existing competitors,

Due to the foregoing factors, and the other risks discussed in this Prospectus, you should not rely on quarter-to-quarter
comparisons of our results of operations as an indication of our future performance.

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