Resilient Supply Chain,
Reliable Science

Navigating a volatile global supply landscape

Continuity was supported through active monitoring of policy changes, early identification and qualification of alternate vendors across geographies and a phased approach to strengthen domestic supplier development. A robust logistics network helped protect timelines for critical materials and services while maintaining quality and compliance expectations. Key logistics business continuity measures implemented during the year included shipment re-routing strategies to mitigate route disruptions, ensuring integrity and on-time delivery of temperature-controlled consignments through multiple freight forwarders, and leveraging alternate logistics partners and airline options to ensure uninterrupted supply.

Digitization of source-to-pay processes

Digitization of our Source-to-Pay (S2P) processes through the implementation of a comprehensive e-procurement suite was a key focus during the year. This initiative enabled end-to-end digital management of procurement activities, including supplier discovery, sourcing and contracting, onboarding and qualification, performance management, post-purchase-order collaboration, and guided, catalog-driven buying.

This marks an important milestone in our digital transformation journey, strengthening governance and compliance while improving efficiency, transparency, and visibility across procurement operations.

Key benefits realized include:

• A more seamless and collaborative supplier experience, enhancing transactions and communication across a unified digital network.
• Reduced cycle times for supplier onboarding and PR to PO processing, along with improved supplier performance management.
• Increased cost savings through competitive bidding, catalog and rate card-based procurement, improved contract compliance, and higher productivity.

Strong adoption across Syngene teams and supplier partners reflects the value delivered by this initiative and its contribution to building a more agile and efficient procurement function.

Advancing our ongoing strategic imperatives

The focus remained on improving delivery speed, building a resilient local supply chain, and enhancing cost competitiveness. Building on existing strategic programs, local procurement of catalog chemicals in Discovery Services was expanded by partnering with international suppliers to improve stock availability in India and enable faster delivery. Within the small molecule development and manufacturing businesses, our network of key starting material suppliers in India was strengthened, with a focus on meeting complex chemistry requirements for custom synthesis. Through a technology collaboration framework, we continued to upskill suppliers on quality and safety standards while enabling mutual growth through phased scale-up opportunities. In Biologics, we further enhanced cost competitiveness by identifying low-cost alternatives and driving supplier-led innovation programs.

Our strategic programs were further strengthened by the inception of the Innovative Pharmaceutical Services Organization (IPSO), an association of 11 Indian CRDMO companies. Strategic sourcing plays a central role in advancing the supply chain agenda for IPSO, with member companies aligning to collectively address shared supply chain challenges, particularly the need to build a resilient local supply ecosystem. The collaboration is gaining momentum, and tangible outcomes from these efforts are expected in the coming years.

Deepening supplier engagement

Concerted efforts were undertaken to deepen strategic partnerships with key suppliers through CXO-level engagements. These interactions were aimed at aligning mutual expectations around speed, cost competitiveness, innovation, and supply chain resilience. The discussions addressed current operational challenges while exploring opportunities for deeper collaboration to co-create sustainable and scalable solutions. In parallel, we continued our supplier connect sessions, conducting 13 engagements involving key strategic suppliers and Syngene teams, including scientific stakeholders. These sessions focused on new product development and technologies, process improvement opportunities, and the advancement of sustainable practices.

Strengthening our sustainable supply chain

Syngene’s responsible procurement journey is built on a simple but strong belief: a resilient value chain grows when every partner moves forward together. As a PSCI Supplier Partner, we align with global responsible sourcing principles, reinforcing our commitment to ethical, safe, and environmentally responsible operations across our supply network. Our approach integrates supplier ESG assessments, internal capability building, and a growing focus on supply chain decarbonization to ensure long-term sustainability.

Our Progress in FY26

Supplier Decarbonization Program

In May 2025, Syngene launched its Supplier Decarbonization Program, translating climate ambition into concrete action to progress toward its Science Based Targets initiative (SBTi) Scope 3 commitment. The program aims to secure SBTi alignment from 81.6% of suppliers by FY28, strengthening collaboration across the value chain to drive credible emissions reduction. To enable suppliers on this journey, a structured capability building approach has been rolled out. This includes educational webinars, focused one-on-one engagements, and access to a free carbon emissions calculation tool, designed to help suppliers establish their emissions baselines and take the first steps toward science-based targets. Our concerted efforts and influence led to 99 suppliers committing to SBTi, representing 43% of suppliers by emissions – a strong step toward our FY28 target.

EcoElevate Program

Through EcoElevate, our supplier ESG maturity continued to deepen. The top 250 suppliers by spend now hold valid ESG scorecards, giving us clearer visibility into performance and risk. Suppliers needing improvement received focused handholding, while training sessions strengthened their understanding of our sustainability expectations. This helped build a more consistent baseline of responsible practices across our supply chain. We have conducted the handholding exercise for 25 suppliers and the average score increased by 300%.

Internally, capability building remained central to responsible procurement. In FY26, over 90% of Strategic Sourcing employees completed training on sustainable procurement, ISO 20400 principles, and ESG risk management – ensuring sustainability is embedded into daily sourcing decisions. Our work in responsible procurement is on track to build a responsible, future-ready value chain.