Nitish Dutt's questions to Dr Reddy's Laboratories Ltd (RDY) leadership • Q4 2024
Question
Nitish Dutt asked about the manufacturing strategy for the India business, specifically the split between in-house and outsourced production. He also questioned how stricter government quality standards might impact the company's procurement strategy and supplier base.
Answer
CEO Erez Israeli stated that approximately 60% of India manufacturing is done in-house, a figure that is expected to increase with product localization efforts. Regarding stricter quality norms, he viewed them as an opportunity, emphasizing that Dr. Reddy's operates with a single, high-quality standard globally, and encourages the entire industry to upgrade.