Together with our focus on private label products, we also intend to continue to enhance the SKU mix at our stores in terms of
branded FMCG products, in line with the relevant consumer preferences. We expect this to allow us to further increase our
customer wallet share.

Enhance Revenue and Increase Customer Wallet Share Through Continued Investment in Technology Infrastructure and
Expansion into Adjacent Healthcare Vertical

We intend to enhance our sales volumes and increase our customer wallet share though continued investment in our technology
infrastructure, including investing in and enhancing our customer facing mobile application and customer facing features on
our website. We believe that this initiative would allow us to better analyse and manage customer interactions and related data
and insights throughout the customer lifecycle, with the goal of understanding their requirements, creating a long-term
relationship with customers, building customer retention and driving sales. We expect that leveraging our technology
infrastructure to gather and analyse customer data and insights would allow us to understand our customers’ consumption
patterns and preferences, which would allow us to employ more targeted advertising and provide our customers with prompts
for refills and/or relevant new product recommendations. We also expect that this would provide us with additional monetization
opportunities with pharmaceutical companies, as we would be able to provide them with insights for analysis of their product
performance and progression at a therapy and molecule level. We also anticipate that our extensive retail presence across the
country coupled with our strong position in the organized pharmacy retail segment will enable us to expand into adjacent
verticals in the healthcare industry, including diagnostics, pathology, and other healthcare service.

Continue to Increase Operating Efficiency and Enhance Supply Chain Management to Drive Profitability

We intend to continue improving our supply chain and distribution infrastructure to increase our operating efficiency and to
enhance our supply chain management. As one of our key initiatives to increase operating efficiency, we plan to increase
automation at our warehouses, for processes such as sorting, labelling and packaging, which we expect would allow us to
optimally utilise our workforce at our warehouses, increase efficiencies, scale our operations and reduce cost. We also plan to
increase the proportion of our product procurement conducted directly through pharmaceutical companies or their carry forward
agents, as we expect this would enable us to increase our gross margins. We also aim to benefit from an enhanced operating
leverage as large numbers of stores that were opened within the last few years and the new stores that we are rolling-out as part
of our cluster approach gradually mature.

Description of Our Business

According to Technopak, as of March 31, 2021, we operate 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. We also operate
an online sales platform and commencing in 2015, our customers could either visit our stores or access our offerings online,
through our website and mobile application.

Our operations are primarily distributed between the Issuer and its subsidiary companies, and include the manufacturing and
contract manufacturing of private label pharmaceutical, wellness and FMCG products, wholesale and retail sale, import,
distribution, and pathology diagnostic laboratory testing. A corporate chart setting out our group structure is below.

The business operations carried out by the Issuer and its subsidiaries are as follows:

reed

Services Limited

 

99.99% 100% 100% 100% 65.538 100%
Optival Health Nova Sud ‘wynclark “cad
Solutions Private Pharmaceuticals Private ms Uren Pharmaceuticals Private rice ———t
ime Taiea rivate Limi ted rivate Limi rivate Limite:
100% 100% 100% 100% 100%
Sai Sridhar Pharma ees Shri Banashankari Deccan Medisales pecs Row
Private Limited Sree Pharma Private Limited Private Limited ree
Limited Limited

Whilst our private label manufacturing and contract manufacturing business (since December 2020) and pathology laboratory

testing business is carried out through the Issuer, our wholesale and retail sales operations, including sales to franchisees, are

carried out through our subsidiary, Optival Health Solutions Private Limited. The Issuer manufactures and supplies
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