Good afternoon everyone and a very warm welcome to the investor conference call hosted by Sanofi India Limited. Joining the call we have Mr. Eric Manchin, GM Pharma and Non-Executive Director, Mr. Rashid Hayari, Full-Time Director and CFO, Mr. Deepak Arora, Managing Director, Mr. Suresh Babu, Diabetes Head, and Mr. Harun Shwala, Company Secretary from Sanofi India Limited. Before we begin this investor call, there are two important announcements. Please note that the proceedings of this meeting are recorded. Secondly, please note a standard disclaimer that there are certain statements in this call which may be forward-looking and the actual results may vary depending on various other factors which may impact the future performance. Moving on to the agenda, we will cover the performance for the quarter and nine months ended September 2025 and other highlights thereafter. We will have a Q&A session which will end at exactly 5:30 P.M.
All investors and participants are requested to keep their questions brief and avoid repetition. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. I now hand over to the management to take us through the presentation.
Very good afternoon everyone and thank you very much for attending this investor conference call. We may move to the first slide please. Yeah, you can move to the next one, next one, and next one. Thank you. This year is pivotal for Sanofi India Limited and we have completely transformed and modernized our business model with the aim to strengthen our leadership in the insulin market and to reposition ourselves with sustainable and profitable growth. Over the last 10 months we have refined our structure and redesigned our go-to-market in order to focus our insulin franchise with a customer-centric organization. We've been digitally empowering our teams with modern tools, capabilities, and new ways of working. This transformation, you will see, is already delivering positive results both in top line and bottom line, and Rashid will run you through the numbers in a couple of slides.
We are accelerating our growth in Q3 despite all the structural changes that we've been operating over the last 10 years. In parallel with this internal restructuring, we have successfully developed and transitioned our legacy cardiovascular, central nervous system, and oral antidiabetic drugs to what we call a partnership model, which will allow us to continue to grow these important franchises by maximizing our reach by leveraging on the capabilities of our partners and extensive networks. This whole transformation is positioning us as a customer-centric, digitally empowered organization, which will allow us to deliver both growth and margin expansion. We are ready to capture the significant opportunity that is in front of us in the India diabetes market, all that while maintaining a strong reach with our legacy portfolio through the partnerships in the next slide.
I'd like just to make a few highlights on what will drive our growth journey in the field of diabetes. As you can see, we have key strategic pillars that will be combined with a focused execution over our in-tune business. First, our portfolio approach. We have a clear segmentation that will ensure that we bring the right solution to the patient, in particular with our innovative portfolio Toujeo, which is second generation of basal insulin, and Soliqua in the premix market, where we have a real opportunity to accelerate our uptake by shaping the market and increasing our edge. Of course, we'll continue to actively utilize Lantus with a volume growth. All that will be amplified by our market expansion initiatives. We are creating awareness for early incentivization, and we are ensuring a greater outreach to our digital approach.
We are also now tapping into the potential of public sector in particular with our innovative portfolio. All of that is going to be enabled by a strong customer centricity and innovative orchestration powered by artificial intelligence. On the next slide, I just would like to double click on innovation with Soliqua. Soliqua was launched last year and is a key growth driver with a very strong value proposition in the premix market. We are basically offering patients a more effective and convenient treatment, of course backed by science and new clinical evidence. We will come back to that now in order to deep dive and the recent outcome of all these transformations. I leave the floor to Rashid. He will run you through the finance slides. Rashid.
Thank you, Eric. Next, please. Good afternoon, everyone. Before starting, please allow me to define the revenue from operation is mainly the sales representing 93% - 94%, where we will focus today. We have the other operating income, service, and export. This is 6%, and other income, mainly the interest on deposit and FX gain, around 1%. It's marginal revenue that we will not review today. As you can see, almost half of the business is coming from diabetes initially and half with partners cardiovascular, CNS, and oral antidiabetic, where we can see growth for both parts. Diabetes plus 4% in YTD September 2025 and 5% in quarter to quarter versus last year. If we take the partnership, it's a good start as mentioned by Eric. 2% in YTD, 5% in quarter to quarter.
If we take the partnership, it's per expectation as the trend that we were expected at the beginning when we signed the partnership. The major impact that we have in the top line, which didn't impact the bottom line, is the export. The export part is around 12% - 13% of the total sales. First, the drop of the export was expected, and it's related to the divestment of Ankleshwar site to Zentiva in 2020. Zentiva kept coding products in Sanofi site in Goa, waiting for the authorization from the Indian authorities to manufacture this product, which was obtained. The authorization was obtained end of 2024, and this is what impact mainly the export, a plan in place. We were, as it was expected. Our colleagues from the Manufacturing Industrial Affairs already put in place a kind of plan to increase the volume at the Goa site and include other countries in the export. We are exporting right now to Russia, it's a new market for us, South Africa, and certain products that were told previously in same way in India are moved to our site in Goa. Can we move to the next, please?
Yeah. In terms of the OpEx, as you can see, the company continues to make significant progress on its strategy through targeted market initiative and operational excellence. We see significant optimization in the OpEx part related to the personnel cost and the other OpEx, - 30% versus last quarter, and the ratio is improving, moving to 22%. This is significant contribution in the PBT, the profit before tax, in terms of export, and the major profit is coming from the domestic part with higher margin. It's a good performance that we can see in quarter three where it's double digit growth versus Q3 2024, and we see the significant improvement in the ratio comparing the net sales, where we are moving from 23% to 29%. Same trend in YTD, where double digit growth as well, and we see an improvement on the net sale, and this is what we are expecting in the next upcoming years if everything will go well. The last point from my side is related to the interim dividend that was decided by the board today. As disclosed today for YTD, we, September, will distribute an interim dividend of INR 75 per share. Deepak, the floor.
Thank you so much. Can we move to the next slide? Thanks to Eric and Rashid, and what I'm going to do is to reinforce the points which have been already laid out. This is to bring confidence to our dear investors that the transformation which has been done is to position ourselves for sustainable and profitable growth. When we talk about the strategic transformation by being focused on diabetes and insulin portfolio, winning partnership model for our legacy brands, at the same time making sure we drive strong execution for bringing growth and significant margin expansion through our operational excellence. Last but not the least, we are positioning for tomorrow, the future-ready capabilities with AI digital capabilities of our field force are towards making sure we capture India's high growth diabetes opportunity. With this, I open up the session for question- answer. Thank you.
Thank you very much. We will now begin the question- and- answer session. Anyone who wishes to ask a question may press star and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking the question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Take our first question from the line of [Param Ghora from Premipra Asset Managers]. Please go ahead.
Hello, am I audible?
Yes, please go ahead.
Yeah, so what I wanted to ask was that despite exporting to 28+ countries, the current, you know, revenue contribution from India is 81% and Singapore is 18%, which comprises of almost whole revenue. Is there any part of geographic expansion?
Regarding the export part? Right, yeah. As I mentioned in the slide, we are trying to target new markets. Russia is already there. We succeed to release the budget and we started exporting the first budget end of last year, and now it's becoming routine. South Africa is something coming as well in the plan and we are exploring other markets. Work in progress regarding this specific subject.
Okay, thank you.
Thank you. Ladies and gentlemen, to ask a question please press star and one on your code. Now take our next question from the line of Raja Kumar Vaidyaka from RCN Health. Please go ahead.
Yeah, can you hear me?
Yes.
Yes.
Thanks for the opportunity. Sir, I could hear your comment on the exports. I can see that the exports have substantially come down. Are you saying that we will kind of pick up this over a period of time or this is going to be a new normal?
Yeah, so the export, you know, it was expected as Ian mentioned initially. This is related to the site that we divested in 2020, our Ankleshwar site to Zentiva. There are certain products, you know, coding products, they need a kind of specific authorization from Indian authorities. This took a bit long time, you know, almost four years for Zentiva to get it. They get this authorization end in 2024. This is what impacted significantly the export part. As the subject was known, we were working on this project to offset the impact of the loss on the export. As I mentioned, there are new markets where we already add in the portfolio. We are exporting already to Russia, starting end of last year, so this year will be a full year for the export for certain products. South Africa as well in our projection.
The site is becoming as well a kind of unique site for certain products worldwide. Based on the evaluation that we have done, I think we will not cover 100% of what was lost in terms of export, but with this initiative I think we will offset part of it. Another part will be offset by certain products that were manufactured previously in CMO, told in CMOs in India, that we are moving them to Goa site. Despite the fact, what I can assure you is that despite the fact that this impact is significant in the top line, in the bottom line it is not, because the export in terms of profitability versus the domestic sales, it's a kind of 8% and the profitability of the export is not so high as what we have in the domestic segment. That's why, despite the fact that we are losing significantly, they say in the export versus last year, it's not impacting our profit before tax.
Okay, got it sir. Thank you for this explanation. The second question is this partnership or the top line comparison you're seeing, you've grown by 5% for this quarter. My comment here is the previous year number, your sales would have been very high because you would have had your own marketing and sales team, and you know your pricing of the entire product would have been on the higher side because now you have a partnership, you have priced it lower. Does it mean, I mean, understanding correct. If that is correct, then we are not comparing Apple to Apple, the value difference.
No, we are comparing, let's say, it's not apple to apple exactly, but I think it's comparable. Let me explain a bit. You know, the model that we have, it's distribution and the marketing agreement. It's not a divestment. It's part of our portfolio where we capitalize, and we're expecting growth from this portfolio. It's not divestment. The partner is distributing and promoting the product. The promotion is at his level. We're not promoting anymore at our level. This is how the partnership is done. At the end of the day, it's comparable. It's a very competitive market. If we say, you know, even the growth to 5%, let's say, it's good. I would say it's adequate growth knowing the competition in such segment. You want to continue about that.
Maybe just to add that the ambition is really, and the whole idea is to capitalize on the capabilities and the reach of these partners. We're able really to reach not only Tier 1 but also Tier 2 and Tier 3 cities, where there is a huge potential that we could not focus on because, I mean, we wanted to be focused on developing insulin. By doing this kind of partnership, we are able to be laser focused on our insulin development while growing the market with the support of our partner and the rest of the portfolio.
Okay, got it, sir. The last question is any new launches you're planning in the upcoming quarter?
Yeah, you want me to take it?
Yep, please go ahead.
We are exploring with the group any opportunity that we can launch in Sanofi India Limited. For now, there are business cases under validation, nothing for the next year. The organic growth that we are expecting from the current portfolio is respectable growth versus the market. In terms of answering for the partnership, the answer for 2026 is we are not expecting launching new products, but there is still certain work in progress regarding c ertain products
And we are very much in the launch phase of Soliqua until now. I mean we just launched less than, let's say, a year and a half ago with an uptake that we know we continue to be sharp in terms of increase. I don't know, Suresh, if you want to jump in on this one, but the focus really right now is to make sure that we accelerate the uptake of Soliqua, and so far we've been delivering a very successful launch.
Lastly, just one comment. No question. The comment is I see that your top line is kind of very volatile. It kind of makes investors a bit nervous. I hope your numbers will be more straightforward going forward because I know that you had a Consumer Healthcare business earlier, but even after that and in a couple of quarters back then, the numbers stabilized. Now again, last quarter you reported a very drastic drop in sales. I hope the numbers will not yo-yo going forward. That's one comment from my side.
No, thank you for that. You know, quarter to same. You know, the impact, the major impact for us in 2025 is coming from the export part. It's the same explanation as what we have done right now, and agree that there are certain fluctuations. This was expected. Yeah, thank you for your comment.
Thank you so much.
Thank you. Take the next question from the line of Brajesh Nirala from 3P Investment Managers.
Yeah, thanks for taking my question. What impact do you expect on your insulin and diabetes portfolio once a generic semaglutide gets launched in India in March 2026?
I will let the expert answer, Suresh.
The GLP market when it comes to the orals, from what we understand from various FGDs with the HCPs, is that they are not to replace the insulin initiation. The segment is very different. One, we are talking about weight loss, another here talking about the insulinization. We have seen a similar kind of a thing whenever any new drug came in place, be it SGLT2 or DPP4, it may delay insulinization a bit. Finally, HCPs come back to insulin. In very many conversations we have, HCPs have reinforced their confidence on insulin, and they are so glad that Sanofi wants to pursue this phase of insulin without moving away from the portal management, to give confidence back, you know. For initial conversation with some of the patients for weight management, HCPs want to initiate insulins. Recently, with Soliqua coming in the space of a mix of GLP plus insulin Glargine U100, which they have a huge conference on, their focus is more on initiating patients on Soliqua as well.
Okay, and the second question is I see most of these products are origin products like Lantus, again this Soliqua, which were launched way back in the international market. What is the launch status for Dupixent, Beyfortus Altuvio in the Indian market? Are you planning to launch these products at all?
You want me to take it?
Yeah.
To answer your question, as you know we have two legal entities in India, one the listed company and the second one the private one. Organic Beyfortus was launched this year in the private company, in the private core as the vaccine part since the beginning was there and we didn't see any other value that we launched Beyfortus f or example, in Sanofi India Limited as there is no synergy at all between the two portfolios that we are managing. Dupixent for now, t here was a lot of discussion about it, but still not finalized yet.
Yeah, it's very much on the case-by-case basis. As we say earlier, the focus right now is really to position Sanofi India Limited as the champion for diabetes. We have a very strong focus in the short- term on India. If we have in the portfolio there might be some relevant products that are good complements for our diabetes portfolio approach. Definitely we'll consider it. In the short- term, as I said earlier, the focus is really to accelerate the uptake and deliver a successful launch for Soliqua and to continue the growth on both Toujeo and Nantus.
Okay, all that, thank you.
Thank you. Next question is from the line of Sandeep, an individual investor. Please go ahead.
Good evening. I have three questions. One is what is Sanofi India's plan towards entering into biosimilars, and can you give some guidance on how much revenue contribution is expected from the biosimilars segment in the next two to three years? That is question number one. Question number two is what are the new segments where the company is planning to enter? My third question is what is the revenue and profitability guidance for the next one to two years?
Not clear.
Contribution of biosimilar new segments and evolution of the profit. Maybe Suresh, maybe you can answer on the first point on the biosimilar.
Thanks, Eric. It's a very good question considering the fact that the more biosimilars are, they are going to improve the share of voice on using, you know, glargine in the marketplace. We have seen that also despite more biosimilars coming, we have not lost our value market share in the overall glargine segment and the basal insulin segment. We are still market leaders with approximately 50% market share for Lantus and the 12% market share for Toujeo, taking it to overall 60%- 63%. Our market share continues to keep moving up with the biosimilars coming in space. A nd considering the fact that biosimilar prices are equivalent to Lantus now after the NLM of Lantus, the need for using biosimilars for the doctors is slowly, I would say, losing interest with Lantus available at the same price b eing an innovator, we can be rest assured that the impact would be much in favor of the innovator Lantus in that space. The second point, considering this, we are expanding largely with the reach on U300, which is our Toujeo, where there is no competition and where a lot of scientific evidence is there to back it up. Overall, as a glargine family, we are winning.
To complement your question on the segment and the new segment we are going to tap, as mentioned, the second-generation Basal Insulin U300. We believe that there is a potential in the public sector in addition to our current focus in the private sector. We are deploying a new go-to-market model in order to allow us to tap both the public opportunity and the private opportunity.
Which are the new segments where the company is planning to enter? Am I audible? Is the company planning to enter into new segments and which are the guidance on that?
I think Rashid already mentioned it, that for at least one and a half years our focus will be again to accelerate the diabetes performance with the acceleration of Toujeo and Soliqua while we keep on looking at the business cases to see what we can bring into the country.
I think we have the conviction there is a huge opportunity in India for the diabetes segment. We don't want to dilute our effort. What matters right now is to make sure that we fully leverage this potential and we strengthen our leadership in this field.
Got it. Thank you, sir.
Thank you. Next question is from the line of Sameer Deshpande from FairDeal Investments. Please go ahead. Hello, Deshpande.
Hello.
Let's go ahead with your question. Yes.
Sir, after the demerger the product portfolio naturally has got divided into two companies, and we continue to focus on our diabetes and the central nervous system and cardiovascular portfolios. You mentioned that you will be concentrating mainly on diabetes portfolio only. Why are there no launches likely in the other two areas? That is, cardiovascular, which continues to be a very big area in India, and another is central nervous system also, which also is a big area. We already have some products in both these and they are good brands. Any brand extensions etc. in those are not planned?
Yeah, it's a very good question that you are asking. Look, I think you know benefiting from the Sanofi portfolio is giving us more chance to succeed in the India market. We cannot compete in the generic market, this is for sure. We tried in the past and we find that it's not really successful. Comparing when you launch a product where you have the support from the group and you have all the studies and all this stuff, for now we are always evaluating option. When we see the opportunity, we do it. For now we see that what is coming from the group portfolio is more successful rather than other things in India. We still evaluate.
With the current bottom line of around INR 450.70 crore in this quarter, do we hope to have annual turnover of around INR 2,000 crore for the year?
Yeah. Thank you for the question. We are sorry that we don't give any forward statement. Let's say the trend is positive, we can see it in YTD for the quarter. I think it's sufficient to evaluate to make forecast for us. You will do it better.
Lastly, regarding this exceptional letter from INR 27 crores, is the VRS now already in this quarter? Our employee costs have come down from INR 56 crores to around INR 42 crores in this quarter now. What will be the run rate for the employee costs going forward from the next quarter?
Yeah, I think for this quarter we should not link the decrease in the OpEx for the personnel cost with the restructuring. One exceptional event is related to the transformation that we have done and the partnership that we signed with Emcure Pharmaceuticals for oral antidiabetic drugs. This was announced in July, after the closing of the previous quarter. That's why we are booking this restructuring in Q3. Now, it's one month saving for the quarter, whereas for next year, I think from one quarter to another, the saving will be more and more in the personnel cost.
No, I did not actually understand.
Exactly the impact. What we are saying that we.
Can I repeat my question?
Go ahead, please.
Operating margins, which in this quarter are around 28%, what I wanted to ask is whether this INR 27 crores is a one-off. I know, but will this be in a position to reduce our operating cost further and enhance our operating margins from 28%?
I think the trend of the OpEx will not increase for sure, but where we have opportunity to optimize. This is what we can see from one year to another. If you look to our financial statement from one quarter to another, for one year to another, there are significant optimization and efficiency that we are looking for. This is one of the priority that we have without impacting the business, of course, without impacting the top line. When we have opportunity to do it, we do it. We are not expecting an increase in the OpEx, in the operating expenses. That's what I can say right now.
Okay, so the margins are expected to be better or continue at these levels at least going forward. Thank you and all the best.
Thank you for your patience with me.
Thank you. Before we take the next question, I would like to remind participants to press star and one to ask a question. Next question is from the line of Lakshmi Narayan, individual investor. Please go ahead.
Hello. Am I audible?
Yes.
Okay, so firstly let me congratulate the management on successful spinoff and also for all the margin improvements that we are witnessing. I have two important questions and then the third one is a sub- question. The first question I would like to know is given that Novo Nordisk had vacated the human insulin cartridges and the dispopen market which is supposedly INR 450 crore -INR 500 crore size and also the fact that they are going to exit similar market in emerging markets also, has our company seen any benefit of this? Especially given that we have Insomin and other human insulin product available. That's the first question. Are we gaining market in the domestic area and also are there plans to cater to the emerging markets where Novo is currently exiting? That is the first question.
Secondly, over the last two years in one of the conference calls, management had actually mentioned that the parent had taken over a company in type 1 diabetes area. Today I was a bit surprised not to hear any talk about launching new product in the type 1 space. I am actually not able to recollect the acquisition, the company's name, but it was in the T1D space. I was hoping there would be some talk about launching the new product especially as it is in the same diabetes area. If you could take these two questions then I could maybe come back for the later in the. I'll join the queue. Thank you.
Yeah, you're right that Novo has expressed its, you know, disinterest with the human premix insulins. You know, we should also be aware that human premix is a highly commoditized space with a lot of other generic players as well. It's not an easy game to win. Having said that, it's not that we do not have a strategy around ensuring that the last excuse for an HCP to use a premix insulin is now not there. Still, the price difference between human premixed insulin cartridges and Lantus is significant. The effort is on in terms of ensuring that HCP looks at Lantus as a first line choice in an OAD uncontrolled patient and looking into a human premixed insulin as well. I could state to that extent that we could see initial signs of HCP's behavioral shift in terms of advocating Lantus ahead of human clinics and cells.
I will take a second question. You are right. I think in one of the previous calls we are talking to launch one product in type 1 diabetes. Still evaluating the opportunity when we launch, w e want to be successful in the market. Otherwise, we don't want to launch a product just to launch a product. We see our focus on Toujeo, on Soliqua. There is a real growth because there is strong support behind that. We still evaluate. That's what I said at the beginning and I hope that we will have approval for such cases.
Maybe just to complement T1V. It was mentioned as a very, very important segment where globally Sanofi is innovating and wants to take the lead. At this stage, a s you mentioned, Rashid, we are assessing the access condition, the environment that has to be shaped in order to successfully launch this product in the future in the different markets. We are still making some assessments for India as we speak.
Yes.
Does that answer your question?
Yeah, I'm fine.
Thank you.
Thank you.
Thank you. Take our next question from the line. Palak Shah from Entrust Family Office, please go ahead.
Thank you for taking my question. Just wanted to know what is the net impact on the financials because of this JV then partnership? My assumption would be there'll be some shedding of margins with the partner or the JV partner, and that model will have some net impact coming off on the revenue, reported revenue. If you can just help me with that.
Yes. There is an impact, you know, on the top line. It's a gross to net model. The partner will distribute and promote the product. Both impact on the top line and impact in the OpEx part as well.
Got it. Net impact, any number that you can subscribe because the 2% growth in domestic market, when you look at it, that will have some material impact because the base would not have a couple of hives that we did in the last 12 months. This reported number seems to be subdued because of that. My understanding is right.
Yeah, look, you know the partnership, you know how we built it, that the growth will come from one year to another. It's not immediate. What we are saying, as you know, how we evaluated initially, we discounted cash flow versus each scenario. If we are keeping the portfolio at our level versus a partnership, this is going to take a bit of time, so it's not immediate. I think starting year three, we can see it's already, we see improvement from one period to another, and starting from next year, I think thereafter it will be showing a better trend versus what we were doing in the past. Because as mentioned by Eric and Deepak , with this partnership we can reach certain Tier 2, Tier 3 where we are not able to do it by ourselves. The share of void that they have is significant versus what we can afford in- house.
These reported numbers do not actually see the benefit of this partnership. Even if after partnership they are going at single digit and to that a low single digit, the net effect of the share of voice and mind that the partners have does not seem to be reflecting in the numbers. What are we missing here?
Look, double digit growth. We're not expecting, to be honest with you, I'm not expecting double digit growth from the partnership. It is a very, very competitive market and we see improvement, we see market share gaining from our partners. It will not be a kind of double digit growth coming from this portfolio.
What we see is that these partnerships have accelerated the growth. I mean as compared to when we were promoting and distributing this product in-house. You can see already that we've compensated the downside of gross to net by a volume growth, and net to net we are growing by 2% on this segment and we're aiming to continue to that. We have already compensated this loss of gross to net. You can see as well that the impact on the bottom line is positive, meaning that we are generating BOI. We're growing the BOI faster than t he top line.
It's a good question as well. Thank you. Thank you, Eric. In addition to that, there are certain movement of stock. The 2% is not really reflecting exactly the sales, the secondary sales. Whereas we see, all in all, it's a bit more than that but we cannot disclose more information than that. I think in 2026 it will be comparable, you know, apple to apple. Still, 2026, 2027, everything, the transformation and the movement of the [circ].
Alright. Just lastly on the new product launches, given our size and the parentage that we have, why is the launches specified to just couple of products? Given the basket that has not launched, so the brands on global stables have launched in India. Why can't there be a higher number of launches? Especially given our size and our strength from the parentage, both on the product side as well as the marketing that you can do, the learnings you can take from them.
Yeah, look, honestly, when we look to the launches of new products from Indian companies, the failure rate is quite high. They launch the product. I don't have the rate exactly in mind, but for sure it's more than 50%. It's quick. They launch and then they fail. Whereas we want, when we launch a product in the market, we want that it will be the right product for the patients in India and we succeed and it will bring an added value for our shareholders. Now regarding certain products that we have in the portfolio at the global level, in terms of price, I'm not sure that the Indian patient can afford such product. We are looking for certain access for this product. It's not so simple. The new products for multinational in general launched in certain market, even they are selecting certain market where their embarrassment will be there and we will not fail when we launch the product. This is what we don't want to have as experience. I hope that I answered your question.
Good. Thank you so much for it. Yes, yes. Thanks so much for giving a detailed answer. I wish you all the best.
Thank you. Thank you.
Thank you. Next question is from the line of Paresh Jain from Bajaj Life Insurance. Please go ahead.
Good evening gentlemen. Thank you. In the presentation you make a very interesting observation or remark about using AI. Can you just elaborate a little bit on that? How are we using it and how big is your tech team today?
Sure. We are using AI at all levels of the organization. Just to be clear, it's not only the commercial team. I will focus on what we are doing.
Your voice is not clear.
I'll focus on what we are doing.
Your voice is not very clear.
Can you hear me? Can you hear me now?
Yeah, the voice was not very clear. No, I can hear you, but it's not very clear.
Yeah. It should be better n ow. Is it okay?
Yeah, now it's better.
Okay. No, I was thinking let's focus on India and I'll give you a few examples. We are implementing AI everywhere where we can create value from R&D to commercialization and to post marketing studies, etc. In our operation in India, we have really transformed the ways of working with AI. For example, we develop our marketing tools with generative AI. We support and we help our salesforces in order to define the next best action. They are equipped currently with tools, AI tools that are giving them the right direction for a given healthcare professional with the right messaging and so on and so forth. These are only just examples, you know, we are really leveraging on AI wherever we can.
In finance, for example, we are all equipped now with regular reports and agents that are giving us some recommendations on the way to optimize our ways of working, our OpEx, and so on, so forth. These are just examples. Be it what we call expert AI, which is more upstream, to what we call snackable AI, which is more downstream and day- to- day, we are really all in on AI and we are trying to empower all Sanufians with the right tools in order to amplify the capabilities and make sure that we create value.
Yeah, I will add one point as you mentioned. Just one second, I will share my experience in finance. In terms of forecast in supply chain or the forecast that we are doing for budgeting or whatever, we reach a certain level that AI in terms of forecast is +-1 versus the reality. Whereas our forecast was not better than that. We see significant improvement in the AI in terms of forecast avoiding obsolescence for our SoC, for example, new launches as well. We have certain recommendations from AI top line OpEx part. We have a good trend coming from AI. This is related to the financial part.
In the day-to-day operation, if I take the example of regulatory affairs, where we're regulatory, we have to submit some variations, etc. We've been streamlining considerably the timing for submissions using AI in the preparation of a file and in the elaboration of the dossier in general. These are just examples because we could talk about AI for hours. There are numerous examples at all levels of the organization.
Yeah, try some of the examples. To summarize, if I were to just ask you what has been the financial impact of it either on your top line or on your bottom line, if you would just quantify that, just for understanding, that would be great.
Honestly, quantifying, I don't have a number on mine, but if you take the obsolescence, you know, in the past, in general, we see forecasts coming from the teams, sometimes optimist, sometimes not optimistic. For the first one, we are avoiding significant obsolescence for the stock because we are manufacturing based on the forecast coming from the commercial team. And, t he second point is when we are forecasting less, sometimes we have lack of opportunity for the business on the top line. Sorry that I cannot give the, I cannot quantify, but we see significant improvement in the obsolescence part where we are less around 1%. In the past it was much higher. This is the trend for the majority of the market operating with AI right now.
Okay, one last question. How big is your tech team and what is the tech technology cost that we enter?
Not sure to get the question. Can you repeat, sir?
The IT team, how big is your team?
IT team and think, and what is the technology cost that we incur every year?
Now it's difficult to isolate because we are operating with a very big group, the Sanofi Group. The IT team is scattered all across the world with a big presence in India. It will be difficult to give you an exact number. I can tell you that we are fully supported by the group, that we have access to in-house solutions. I mean we have our in-house AI companion. We have several in-house developed solutions like expert AI as well as existing solutions that are in the market with whom we are partnering.
Sanofi India would have a technology team of their own, right?
We have a local team, obviously. When it comes to AI, it's not an isolated game. I mean, we are leveraging on the group, and we have a group strategy.
Yes, we have a local team supporting India team here. As mentioned by Eric, the standard solution and the standard system we are implementing to modernize India is coming from the group. We can say today, by the end of this year, because we were behind, right, end of this year we will be aligned to the more modern system that we have within the group in India. This is the plan. It is a very ambitious one and I think the team is on track on this. Suresh.
Thank you. Thank you. That was it from my side.
Thank you. Ladies and gentlemen, to ask a question, please press star and one on your phone. As there are no further questions from the participants, I now hand the conference over to Mr. Rashid Hayari for closing comments. Over to you, sir.
Yeah. On behalf of Sanofi India Limited, that concludes this conference, t hank you. Thank you very much for the quality of the question. Thank you for joining us. You may now disconnect from the lines. Thank you.
Thank you, sir. On behalf of Sanofi India Limited, that concludes this conference. Thank you very much for the quality of the questions. Thank you for joining us. You may now disconnect your lines.