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Sanofi India Ltd
Earnings Call Analysis
Q4-2023 Analysis
Sanofi India Ltd
Sanofi India's investor call was kicked off with introductions by Radhika Shah, the Company Secretary and Head of Legal, alongside other executives including the Managing Director Rodolfo Hrosz. They laid down an agenda to discuss both quarterly and annual performance for the financial year of 2023, aiming to address investors' questions with clarity.
The 'north star' of Sanofi India since the end of 2022 has been its 'India for India' strategic plan built on four pillars – diabetes, consumer health care, innovation, and market transformation. These pillars are seen as fundamental to support and fuel the company's growth in India.
Sanofi India made strides in diabetes care by centralizing its products under one umbrella, which led to expanded reach and stronger brand positioning. A diabetes awareness campaign targeted over 200 million individuals, showing Sanofi's commitment to public health education regarding non-communicable diseases. In terms of product portfolio, they managed NLEM price reductions and are planning the introduction of localized insulin products Insutage and Cetapin S, alongside the market release of Soliqua by early Q2 to strengthen their diabetes care offerings.
Sanofi India focused on operational excellence by reducing overlaps and optimizing synergies across the organization, leading to INR 36 core operational expenditure savings for the year 2023. These efforts underline the effective implementation of the 'India for India' strategy.
On the innovation front, there were significant product developments, such as the market launch of Frisium Suspension, Sanoxaban, Carmada, and upcoming launches including Soliqua, Insutage, and Cetapin S. Consumer Healthcare plans to introduce Allegra-M by 2025, demonstrating Sanofi India's commitment to expanding its product portfolio within existing and untapped market segments.
Sanofi India reported a solid financial performance for the quarter as well as the full year 2023. Quarter-wise sales grew 4.6% to INR 525 crores, and profit before tax excluding divestment showed a 5.6% increase. Full-year sales saw a 5.4% growth on a comparable basis and a 27% increase in export sales, reflecting the success of strategic initiatives implemented by the company. Profit before tax displayed a notable CAGR, reaching 31% in 2023, indicative of the strong strategy and execution. The company also shared that there was a steady uptick in operating profit quarter over quarter throughout the year.
Dividend payout for the year is set at 65%, adjusted from 85% in previous years, largely due to increased working capital needs and stock build-up resulting from logistical changes, such as a warehouse address change. This prudent decision was made to safeguard against potential operational impacts in the coming year.
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Over to management team.
Good morning, everyone, and a very warm welcome to the investor call of Sanofi India Limited. My name is Radhika Shah, and I'm the Company Secretary and the Head of Legal for Sanofi India Limited. I have with me, Mr. Rodolfo Hrosz, Managing Director; Mr. Rachid Ayari, the Whole-Time Director and CFO of Sanofi; and Himanshu, General Manager of Consumer Healthcare business.
Good morning, everyone. Thank you for joining the call. I look forward to going over the results of the quarter and the calendar year review as well as taking your questions. But before that, I'm thrilled to introduce Mr. Himanshu Bakshi, General Manager, Consumer Healthcare business. Himanshu has joined Sanofi with effect from 15th of January 2024, to lead the consumer health care business, and he'll transition to be appointed as the Managing Director for Sanofi Consumer Healthcare India Limited, as within the orders subject, of course, to the applicable approvals.
Over to you, Himanshu, for your brief introduction of yourself.
Good morning, everyone, and thank you, Rodolfo, for your warm words. I'm really delighted to be a part of this exciting business, fantastic company. Now I strongly believe India is at a pivotal right now and it's going to drive growth and opportunities in the future and the same goes for the consumer health care business. I think with the kind of potential that we have, the immense opportunity that India brings with it, we have great products, purpose-driven brands with great signs. And there's no reason why we won't be tapping this immense potential in a big way. So really looking forward to this exciting journey and a journey of growth, a journey of potential, a journey of success.
Thank you, Himanshu. Rachid, would you like to greet everyone?
Good morning, everyone.
Thank you. Before we begin this investor call, 2 important announcements. First, please note that the proceedings of the meetings are being recorded. And second, our standard disclaimer that certain statements may be forward-looking. The actual results may be affected by many factors that may be different from what is being indicated in terms of future performance and outlook.
Moving on to the agenda of this call. In today's call, we will be talking about the performance of the company for the quarter and for the financial year 2023. Thereafter, the management will take questions from investors and participants. The Q&A likely will end at 12:30 p.m. sharp. All investors and participants are requested to keep their questions brief and avoid repetition. I now hand over the call to Rodolfo and Rachid to take us through the presentation.
All right. Thank you, Radhika. So if we can move to the first page, we have prepared a brief presentation whereby I am going to give you all brief overall update on the status of the business and the progress versus our strategy. Following those initial slides, Rachid is going to come in and share with us some highlights on our financials for the quarter and for the calendar year, right? So to begin with, if we can click to the next slide, please. The next one, yes.
I'll begin with this one, which is the slide which you are all familiar with. This is a summary of the plan that we unveiled by the end of 2022, which is the north star for what we do in Sanofi India Limited since then. This is the India for India plan for Sanofi with its 4 pillars. As a reminder, 4 pillars are focused on diabetes, consumer health care, focused also on end-to-end innovation and another -- and the last pillar, the go-to-market transformation are the key enablers for the success and future growth of the business in India. So if you click again, I have a few more updates on each one of this pillar that I wanted to share with you.
On the first pillar, we have successfully moved to the one diabetes business unit, where we brought all the products that pertain to the category of diabetes under the same roof with the same group of people and same leadership, specialized in diabetes. And by doing that, we have been able to expand reach and strengthen the positioning of our brands in the team within that portfolio. We have also deployed disease-awareness campaign and diabetes awareness campaign targeting the other -- the general problem with the intention of bringing the important noncommunicable disease awareness up in an attempt to increase also the number of people that have the condition and get the right treatment. There has been a successful first year of that campaign where we have reached more than 200 million people, more than 200 million individuals who were helped by this campaign over the course of 2023.
Lantus, as you know, we think that this business unit faced an NLEM in price reduction, which was largely mitigated by the rest of the portfolio as you will see in the financial figures when we talk about them. And we have begun to accelerate the volume of Lantus following their price reduction. Local innovation on diabetes has advanced. Insutage, a localization of one of our insulin is already well advanced with plans for its introduction soon. Cetapin S, another extension of a local brand that is another local extension of one of our brands that is also planned for the end of Q1. And then as part of our global innovation program, Soliqua comes to market by the end of Q1, beginning of Q2. So the business has been already transformed with a significant pipeline added to it.
On the consumer health care business, as you know, we wanted to be able to double down on regular, extend and deepen our consumer understanding and shape the OTC policy in the Indian market. To that end, we decided for the CHC demerger, which is on track for Q2 execution with the Board already approved, as you know, shareholders also approved by December 18, as you know. And we're now following the other requirement -- requiring approvals along the process. While the organization readiness for the separation is well advanced. You just saw -- you just got to know [indiscernible] a lot of that readiness for the separation that I just mentioned.
On the third pillar, end-to-end innovation, we have advanced with the local and global pipeline with 7 launches, which I'm going to be talking a little more about in the following slide, which also includes the localization of Insuman, one of our formerly imported insulin that will now be produced in India. And then we have continued to analyze the potential of partnerships for reach expansion on our established products.
On the fourth column, we have successfully gone through a reduction of overlap and increased synergies and agility in the organization. And by looking at the resource allocation and thoroughly reviewing it, it resulted in a INR 36 core OpEx savings in 2023 from -- coming from a reduction of 8 business units to 3 businesses, the removal of 1 layer of management from the organization, and the -- we did all that as well as the deployment of the trade organization and the piloting of full digital go-to-market organization that will run in 2023. So good advancement on all 4 pillars of India for India.
If I go to the next slide, please. I'll show you a little more on innovation, as I mentioned before. So back in October '23, we brought to market Frisium Suspension. Then in December '23, we brought to market Sanoxaban and Carmada. All those -- 3 of them are line extension of the existing brands in our portfolio today. Now for the diabetes portfolio, the activity and the innovation coming this year with Soliqua, Insutage, and Cetapin S hitting the market as per my mention before. And CHC is well planned for the introduction of Allegra-M by 2025. So you can see a consistent progress on the 4 pillars of India for India, leading to improving results from this. I am going to ask Rachid to mention and discuss with us next. Rachid, over to you.
Thank you do, Rodolfo. Next slide please. So good performance for the quarter and the full year 2023. On the left side, we have the quarter. On the right side, we have the full year. Before starting -- explaining the result, I will -- I want to explain a bit the slide. So we tried to eliminate any NLEM price impact for Lantus in ingredients, so we have comparable data. And from profit before tax, we exclude the divestment of Soframycin. So good results for the quarter again. So INR 525 crores versus INR 500 crores in 2022, 4.6% growth in published and 10.6% in comparable when we exclude the NLEM price impact. In terms of profit before tax, so good trend as well, plus 5.6%, excluding the Soframycin divestment.
Going to the full year result, we have good results in terms of sales. So 5.4% growth in comparable basis and 1.2% in published. So we -- in terms of export, which is not shown here, we have good results as well, plus 27%, which is showing a steady growth from one year to another. Double-digit growth for profit before tax, excluding the divestment. And this result is a mix between the different lines, so we [Technical Difficulty] to better mix, the divestment of Soframycin. We have better prices for the IPI that were negotiated for 2023 in addition to one of [indiscernible] booked last year for the NLEM price a certain level. And we have favorable foreign exchange rate for the export. We -- as mentioned by Rodolfo, we have, let's say, good trend for the OpEx, operating expenses, with minus 6%, which is showing that the India for India strategy is already reflected starting this year.
If we can move to the next, please? Yes. I think this slide -- so as I know that we cannot talk about the future, but the actual number, it's a good indicator. So we have, again, a steady improvement for -- from one quarter to another for the operating profit. So as we can see in terms of value and in absolute percentage as well. So for quarter 1, moving from 28% to 32%; Q2, 24% to 26%; Q3, 27% to 31%; and the last quarter, 27% to 28%.
Can you move to the next, please? So here, we want just to share a bit the trend in CAGR from 2018 to 2023. We see in the left side, the domestic sales for the retailing business, excluding the divestment, we are at CAGR of 5.9%. And in the right side, so in the published, so we are at 3.6% CAGR. The most important part, I think, is in the left side regarding the profit before tax, where we see a significant increase from one year to another, moving from 18%, 24% and 26%.
And finally, in 2023, we are at 31%, thanks to the strategy that was put in place since then. Regarding, I think, the dividend part is an important one. So for this year -- so we see the trend from 2018 to 2023 versus the last year where we distribute -- the payout was 85%. This year, the payout will be 65%. And this is explained mainly by the working capital, where we build the stock at the end of this year, filings -- just to avoid any impact for next year, which is related to the change in the address of our warehouse. So then it goes to license approval again and the blackout period, so to avoid any impact for the business, we distribute 65% within the cash available in the company. So that's it from my side. Thank you.
Thank you. Thank you, Rodolfo and Rachid, again for taking us through the presentation. Now we will move to the Q&A session. In this session, we will respond a reminder within the boundaries of our internal policies and SEBI regulations. We will restrict our responses to clarify on matters, which are available only in the public domain, either through our annual report, quarterly financial statements and other disclosures. There are other granular aspects, such as product-wise, state-wise, therapy-wise sales, margins, profitability, which we consider confidential, and we will not be able to comment on these topics. We also do not provide any earnings guidance and hence, we will not be able to respond to queries on future business, future product launches or margins or profitability and CapEx.
Moving on, as we had mentioned, we will be taking the questions in the sequence of the registration of the participants. If there are multiple registrations, we will take questions from the first participant and giving others the opportunity after the first question has been phrased. [Operator Instructions] Handing over to Chorus to allow the participants to ask questions, please.
[Operator Instructions] We have our first question from the line of Aditya. Since there is no response, we'll take our next question from Hrishikesh Patole.
Just wanted a few clarifications on the progress of new launches and time lines for the field going on?
Okay. Rodolfo, do you want to take that?
Yes, I'll take that. Thank you, Mr. Hrishikesh Patole for the question. We have advanced quite a bit with our pipeline, right? So from the beginning, the deployment of India for India as our plan in India, we have now gone to 7 projects we were lined up. I mentioned them before, so I'm not able to give you details and the figures from the launches. But I can tell you -- because there will be forward-looking statements but I can tell you that they have been carefully selected to do 1 of 2 things: One, to leverage the strong equity of the existing brands that are already in the market. That is the case for the line extension that I have mentioned before.
And/or if it's a new launch, the new brand, then it enters into a large and untapped segment where we believe we have the right to win. And that is the case mainly with the launch of Soliqua, which is upcoming soon, and we believe it can be of very significant impact. We can't speak about the numbers for the limitations of this call, but we're very happy with the fact that we have been able to create a pipeline with 7 launches. And those being some of those launches that leverage the strong equity of exiting brands and some others that really tap into very large opportunities in the marketplace where we have the right to win.
We move to the next question, Chorus team?
We have our next question from the line of Abdulkader Puranwala from ICICI Securities.
Am I audible?
Yes, Abdul. Go ahead.
So couple of questions. So starting with your comments on integrating the entire diabetes portfolio under one roof. So could you please elaborate as to -- sorry. Am I audible?
Yes, we can't hear you. Please go ahead. Yes, yes, you are.
Yes. So my first question was pertaining to the comments on regrouping the diabetes portfolio under one roof. So could you please specify as to what are the synergies, which you have prevailed by doing that in terms of growth for your key brands as well as right now, what will be the overall contribution of the diabetes brands to the overall top line of the company?
Yes, so just going -- taking your first part. Thank you for the question, again. So the importance of bringing diabetes under one roof is really to be able to synergize all the efforts that we make in that category of product. Before, we had products that were in antidiabetic product split into 2 different business units in the company, where we replicated many of the efforts in terms of management of the portfolio, strategy, direction given to the field and also even the actual field representative, our reps in the field would have very separated portfolios. So now we have them more integrated and there is the benefit to the health care professional with whom we interact because again, the health care professionals see the therapy as one therapy only and by providing them a more unified representation on the side of Sanofi, we become more customer-centric.
We become more HCP-centric, less focused on our own portfolio division and space and more focused on what makes sense for the HCP or HCPs within the ranks. So that has proven to be a successful realignment allowing us to become more customer-centric and also expand reach by not having 2 teams -- more than 2 teams, in fact, going to the doctors with the portfolio by having a reduced number of people connecting with each doctor. We can get to more doctors. We can get to more HCPs and that is beneficial to the business. So that's the first part.
Second point is about, I think, in your question, the relevance of oral diabetes. Oral diabetes is a very relevant part of the portfolio. In India, this is still a very significant category with a large application. We have important brands in that portfolio with Amaryl being clearly a strong -- the strongest of the brands that we have in the portfolio. It is important to us, that oral diabetes portfolio because it caters to doctors and to HCPs and patients that are in the journey of treatment before they get to insulin. So -- and insulin being the ultimate gold standard treatment for diabetes, it is important that we accompany the patient journey and the HCP journey all the way from the moment of diagnosis to the beginning of oral diabetes and then the migration to insulin.
In fact, we are the largest company that does that, that integrates oral diabetes and insulin portfolios in a same company. So we think it is synergic from that perspective so that we can follow the patient and HCP journey all the way.
Thank you, Rodolfo. And just complete -- in terms of contribution on the sales, so the diabetes should be between 40% to 43%.
Understood, sir. And sir, a couple of follow-on questions as well. So I mean could you please help us understand how your consumer portfolio has performed in CY '23 in terms of the overall revenue growth or some midterm comments on the margin side would be a little helpful.
Rachid, you want to take that one?
Okay. We've had a decent quarter when we look at quarter 4. Of course, there are some headwinds when it comes to the overall category performance. But the good news is that all our categories, all our brands continue to gain share in the market. I think that's something, which is in line with what we really want to do. Our key brands like Allegra continue to do very well in terms of market share gains. A brand like Dulcoflex, DePURA also are gaining significantly when it comes to the market. So overall performance in terms of the external performance continues to be very strong and continues to be strong even in the month of January.
And just a final one, if I may. So just one more question on the accounting side. So if you look at your working capital cycle, the inventory for the quarter, for the year, has gone up significantly. So is there any -- is there any RM inventory, what you are specifically stocking? Or what was the reason for this increase?
Yes, Rachid, just to -- did you get the question?
Yes, thank you for the question. So as I mentioned in the previous slide when I was talking about the payout together with dividend, we are paying 65% for this year, which is impacted mainly by the inventory, okay? So especially for 2024, so we are changing the address of the principal warehouse that we have. And we -- once we ask for the approval, it's going to take a bit of time for the approval of the license. So that's why we made the kind of stockpiling for end of 2023 to avoid any impact in the business for the next year. So this is the major explanation regarding the inventory that we built at the end of 2023.
Okay. So is it specific to...
Mr. Puranwala.
Sorry.
Yes, please go ahead.
Yes. So is this specifically to some particular brands, which you are importing? Or is it a normal RM stocking that you're doing?
This is -- it's related to the main -- it's all the stock, so we are piling here. So as we are changing the address, then the license needs to be updated there.
So it will largely be imported products, Abdul. And of course, there are certain other imported RMs as well, but it's more for the imported finished goods.
Mainly Clexane, insulin, and [indiscernible] to be more precise.
We have a next question from Varun Bang from Bryanston Investments.
My first question is on insulin. How is the prescription increasing in the smaller towns and rural areas for insulin? And what is our approach to tap that market?
All right. So thank you for the question. Insulin prescriptions are -- when we look at our insulin prescriptions, right, the prescription of our products, we have increased significantly because after NLEM implementation on Lantus, we saw that mainly HCPs opted for Lantus more than they were doing before.
With the price reduction of Lantus, Lantus became even more a brand of choice in terms of prescription for doctors as we initiate insulin for patient. So we saw an increase -- a significant increase in our share of prescription since the implementation of NLEM for Lantus.
Prescriptions for insulin growth rather in the year 2023, these were likely impacted by the loss of exclusivity of certain oral anti-diabetes products. So some oral anti-diabetic products went into license exclusivity. Therefore, reducing the price of those products and, therefore, causing a certain delay in -- a further delay in the insulinization of patients in India. That is a one-off effect for the months to follow, that loss of exclusivity. But in total, we had an impact in terms of a number of insulin prescriptions that we saw in the market. In our estimate that has impacted the overall margin, even for our brand or share of prescriptions increased significantly because at the same time, the whole pie will be impacted by that loss of exclusivity on oral anti-diabetic. We also have this price reduction on Lantus due to NLEM, which resulted in gaining a significant share in Lantus -- in the prescription for this.
Okay. And we have stated that we are looking for partnerships to expand our reach in Tier 2 and Tier 3 cities and also in the rural areas. What would you look for in any potential partner? And from a long-term perspective, won't it make more sense to develop the reach organically? Can you share your thoughts?
Yes, we think the same way, along the lines of which you're saying. I think we think the reach for the diabetes portfolio would expand organically. Insulin is the center part of that portfolio and insulin is significantly less dependent on Tier 2 and Tier 3 cities with lots of opportunities, of course, in Tier 2 and Tier 3 cities, but also lots of opportunities in Tier 1, but less -- lower dependency on Tier 2 and Tier 3 cities makes it more interesting and more attractive for organic reach expansion. So currently, the plan as you see, India for India, isn't to pursue partnerships for the expansion of reach of the diabetes portfolio, not at the moment. So your comment is in alignment with the way we think about it.
Okay. And when we talk about Sanofi in India for India, we have also talked about strengthening our local innovation capabilities, so can you share what kind of R&D capabilities do we currently have in India? And how do we look to build it further? And secondly, would the local innovation be largely focusing on line extensions in General Medicine segment? Can you share some information?
I shared with you the pipeline, right, our innovation pipeline. You can see there all the products that we are launching. There are some line extensions. So there are some completely new launches as well. So biggest example of that is, of course, Soliqua, which have since an entirely new segment of business for us coming up end of Q1, beginning of Q2, right? Now in terms of our infrastructure in R&D, we're very lucky to have one of the most sophisticated R&D center, the Sanofi Group, located in Goa within our Goa site. There is the capability that you can have leverage in the past and can continue to leverage. We also have a network of construct manufacturing organizations with whom we have already worked for a number of years, and both of the domestic market and for export market. So these CMOs are completely validated and vested by the quality of supply chain organizations in our company, then they can also be leveraged as resources for innovation in India.
So I think that more than building more capability in R&D for Sanofi India, the challenge for us is really to leverage the capability that we already have. We have significant capability installed and the big challenging besides that is to make full leverage of those resources and those capabilities that we already have, which is what is happening as we build the pipeline, and as we build the pipeline that I have shared with you before.
One last question. What is the share of exports in CY '23? And in previous forums, we've talked about taking advantage of India's low-cost advantage to grow export business. How do we look at expanding export business? And where does the export business come in the list of priorities?
Yes, I'll hand that over to Rachid, who is very close to the topic and passionate about the topic.
Yes. Thank you, Rodolfo. So the current export is around 18% -- 18% to 20%, let's say. We are looking for a different geographic area where we can use manufacturing in India, as you mentioned, clearly, thanks to the cost, the reduced cost and the quality, as we see that in terms of quality. The CMOs of our Goa site are one of the highest ones. We are looking for export from -- to Russia, to Central Asia, and we continue with the current market that we are supplying from Goa right now. So the volume that we're looking for is, for sure, will allow in the future to reduce cost as well as long as the capacity are increasing in Goa site.
I now request [ Mr. Molly Lee ] from B&K Securities.
All my questions have been answered.
We have our next question from Girish Bakhru.
Just wanted to check on Toujeo. I mean, overall, glargine prescriptions, what is the split between Lantus and Toujeo, right now?
Your question is split between the prescriptions of Lantus and Toujeo?
Yes.
Okay. So let me just quickly check on that. We're getting to 92% and 8%.
And I mean, after this price reduction in Lantus, are you seeing an impact on Toujeo growth? What's the broad thought process here, how is this plan going to go?
The brand has grown very fast. It's a second-generation insulin and we've seen that the market has appetite for second generation, both in basal and also premixed segment, right? So Lantus continues to grow on the wake of the NLEM price reduction. And Toujeo continues to grow on the way this migration to second generation and more sophisticated basal insulin. So both have a very promising perspective and, in fact, both are performing well in their segment.
And just -- yes, I know you don't want to give a guidance, but given this year had a lot of impact from the price reduction, next year, what is your broad sense, how glargine market will play out for you?
We think that the next year, we will continue to see strong growth of Toujeo as it has been indicated in the many years -- in the several years behind us. So we see the momentum continue into the future given that trend to second generation basal that continues. And we see that -- we believe that one Lantus will benefit from this price reduction with continued volume increase. The difference between Lantus and its competitors has now shrunk to close to zero. The strength of the brand will pull more market share for Lantus as we go forward. So we see positively and very promising for both fronts.
Possible to put a number here?
No, we can't [Technical Difficulty]. I can give you a direction. Directionally, that's what we are optimistic about those.
For Q4, we can communicate, Radhika, growth or...
Sorry -- no, for the current -- for the next coming up, we can't comment any numbers. We will not be able to indicate any number. But like Rodolfo mentioned, we will be in a position to indicate the trend.
Sorry, you were in Q4, you can comment. How about Q4 for growth of Lantus?
Q4, we have very positive signals related to Lantus and the growth for the, let's say -- and volume is around 5%, which is showing good trend for the next year as well, so -- based on what we see it has momentum again next year.
Sure. Very helpful. Just last one on Soliqua. The combination of insulin GLP-1, do we have any product in India? Or is this the first one that will come? And broadly, with your experience of Soliqua in other markets, how do you see this benefit vis-a-vis other combinations, which we have in diabetes?
Yes, Soliqua is a unique problem. There is no similar product in India. But it is a product that caters to a very specific segment of the market, which is the segment where HCPs prescribe premixed insulin to certain patients under certain conditions. In that segment of premixed insulins in India is as big as the segment of basal insulin. We currently compete only in the basal insulin with launches in future. Soliqua comes into the premixed segment, which is equivalent in size and with comparable growth rate. Now it comes into that market being a unique product with clear point of differentiation, right?
So there is a product that offers patients and HCP fewer pricks, fewer number of injections versus the existing product. Our product offers lower risk of hypoglycemia and product offers patients an advantage in terms of weight management currently -- current products add some weight to patients. In general, our products has an effect of a slight reduction in weight. So with those superiority and superior benefit, we believe that Soliqua is poised to become a very successful player in the clinic side. Now it is difficult to compare that and inappropriate to compare it with other markets because [indiscernible], right?
Because few markets in the world have a developed premixed category like we do in India. Few other markets in China also has a segment like that. Most markets globally don't have a premixed -- developed premixed category. The reason we move back to the diets or carb-loaded, it roots back to the delay in insulinization. We take longer to put patients on insulin. And then, when we do, we end up putting them in -- so there's different reasons why you can't compare that -- you can't compare it to other -- to many markets and other markets in the world, in general. But comparing Soliqua to the competitors with whom it will be foraying in the few markets, it is very strongly positioned.
And is there any IP on Soliqua in India?
What do you mean, IP?
Is there a patent on...
Soliqua is -- I think, Soliqua is patent, yes. The answer is no.
So there is no patent, but it is a global product.
We'll take an audio question from the line of Gagan Thareja from ASK Investment Managers.
Yes, I hope I'm audible.
You're not very clear, sir. Can you use your handset mode, please?
Yes, I am on handset. Is this better? Can you hear me now?
No, we can't hear. Your volume is very low.
Is this better? Any better?
Yes.
All right. So my first question is on the share of revenue, which comes under NLEM after Lantus and Frisium undergoing NLEM expansion last year, what is the total share of sales of -- in India, which is under NLEM?
Yes, it's around, let's say, 39%.
3-9? Is that what you're saying?
Yes, 3-9.
39% to 40%.
Okay. The second -- okay. All right. The reason I ask that is, do you feel that with the WPI being virtually 0 going into the next calendar year, it might have some impact on the domestic sales growth? It is a very substantial number, which is under NLEM, where you get WPI-linked price increase?
Yes. For next year, the WPI is not significant. So there is no -- maybe no impact.
Okay. And is it possible to give the sales and profits for the consumer OTC business for the bygone year, which is CY '23, financial year '23?
For that, we will not...
Look...
Sorry, Rachid. Yes, we will not disclose segmented results, so we will not be able to give you separate numbers to CHC business.
Okay. And you also indicated that in gross margins, there is an impact of favorable movements of the foreign currency. Can you enumerate the scale of this impact on gross margins?
It's related mainly to the export.
Yes. What would have been the contribution financially of that?
We can disclose, Radhika, or...
No. Gagan, not very clear in terms of your question. Can you repeat?
So my question is what is the impact of currency-related gains on your gross margins or on your operating margins for the bygone year?
No, so as mentioned by Rachid, the ForEx gains are largely for exports and we don't indicate numbers in terms of the impact on the gross margin.
All right. And is it possible to get some idea of the contribution that you would have received from the launch of new products in December and, I think, September of this year? You've launched a few new products, right, Sanoxaban and Carmada.
Like I said -- yes, Gagan, like I mentioned, we don't disclose product-wise sales, but the launches have been very recent, so it may not be significant, I think, if that suffice you.
We launched it mid of December, so it's not so significant. Fully agree.
Okay. But since quite a -- I mean, not all of them, but I presume some of them are line extensions. Is it the case that growth in these would also, at the same time, see some of the existing products sort of taper off because you will emphasize on the line extensions?
No, not really. I don't think so. Go ahead...
Just wanted to ask you to repeat the question, I am not sure I captured.
No, his question was, since some of them are line extension, the one launched in December, I think, Sanoxaban and Carmada, will they have any cannibalizing effect on our existing product to which we...
I think it's a good question, but we carefully select line extension to tap into segments where we see growth potential and where we're not playing. So line extension is not just a very similar version of something that we already have, but they are typically the ones that we're bringing to market. We extend the brand into segments where we are not present, therefore, minimizing any cannibalization potential.
And the last one, if I may, from my side is, you indicated loss of exclusivity for some products in the diabetes franchise impacting Lantus growth. I presume it would also have impacted your Amaryl franchise growth. Any assessment you can give us of the impact on Amaryl from LOE on dapagliflozin or gliptins?
Again, we don't want to comment on brands, right? But I can tell you that Amaryl is very strong, very solid performance and not shaken.
Right. And Insuman, with local manufacturing, is it local manufacturing now that you're doing in Insuman? If that is so, do you see that helping your cost competence and, therefore, growth in the markets?
Can you repeat the question. There is -- a little noise is there in the background.
My question is on Insuman, is it -- have I understood it correctly that Insuman is now localized for you?
Yes, we are localizing Insuman.
Yes. So in that case, does it make you far more cost competitive. And therefore, does it help your cause in growth of Insuman going here on?
Potentially, it would help. Potentially, it will be positive impact. Yes.
We have our next audio question from Prerit Choudhary from Green Portfolio.
Am I audible?
You are not -- yes, please go ahead.
Yes. I have, sir, some questions. So currently, our exports are at around 18% to 20% of our total top line. So I just wanted to understand how much percentage from our Goa manufacturing plant currently goes to exports?
Sorry, if I understood your question correctly. You want to know the percentage of manufacturing in Goa?
Yes, how much of that goes for export, yes.
From Goa, we are exporting around 30%.
Can you also provide the -- for the previous year, the same number? How much would that be?
Sorry, it's not clear.
So we will get back to you on that. We don't have the number of...
Can you repeat again.
The number of the exports for the previous year, the comparable number for previous year.
Yes, it's similar. It's similar.
Similar. I think, Chorus, since we're already nearing time, that could probably be the last question. Please do feel free write in, if you have any other further questions. And thank you very much to all the participants for attending to the call and patient listening. Rodolfo, do you just want to give concluding remarks?
Thank you, Radhika. Thank you very much for joining the call, for your questions, and for the opportunity to clarify a few more elements of our business as we move forward. We look forward to getting together again in the next quarter.
Thank you, Chorus.
My pleasure. Ladies and gentlemen, we now conclude this session. You may now disconnect your lines. Thank you once again for joining.