- Dr. Reddy’s largest manufacturing facility in Bachupally,
Hyderabad, joins Global Lighthouse Network of the World Economic
Forum
- Journey started four years ago with digitisation of
infrastructure and processes. Two years ago, Project ‘OpsNext’ saw
deployment of six Industry 4.0 technologies, 40+ business impact
linked use cases and heavy investment in people
capabilities
- Significant business results seen – 43% manufacturing cost
improvement, 30% reduction in production lead time, 41% energy
consumption reduction, and significant dip in quality
deviations
- Dr. Reddy’s aspiration is to be the most efficient pharma
operations in the world
- Efforts key to staying competitive, meeting business
imperatives and ESG goals for environmental stewardship (100%
renewable energy by 2030, carbon neutrality in direct operations by
2030) and for patients (reaching over 1.5 billion patients by 2030,
25% of launches to be first-to-market by 2027)
Dr. Reddy’s Laboratories Ltd. (BSE: 500124, NSE: DRREDDY, NYSE:
RDY, NSEIFSC: DRREDDY; hereafter referred to as “Dr. Reddy’s”), a
global pharmaceutical company, today announced the recognition of
its largest manufacturing facility in Bachupally, Hyderabad, as
part of the Global Lighthouse Network (GLN) by the World Economic
Forum (WEF).
With this recognition, the facility joins the GLN, a community
of over 100 manufacturers that are showing leadership in applying
Fourth Industrial Revolution (Industry 4.0 or 4IR) technologies to
drive impact in productivity, workforce engagement, sustainability,
and supply chain resilience. GLN is a WEF initiative in
collaboration with McKinsey & Company. Factories and value
chains that join GLN are designated by an independent panel of
experts.
The journey began four years ago when Dr. Reddy’s embarked on an
ambitious programme to ‘digitise its core’. This involved upgrade
of infrastructure and digitisation of processes for robust and
comprehensive data capture. Real-time data and insights laid the
foundation for Project ‘OpsNext’ which was initiated two years ago
to transform the plant into an Industry 4.0-driven ‘Lighthouse’
factory as defined by the WEF. The site saw the deployment of six
of the eight technologies of 4IR – Advanced Analytics, Digital
Twins, Robotic Process Automation, Augmented/Virtual/Mixed Reality,
Digital Performance Management and Industrial Internet of Things
(IIoT). The OpsNext team identified 40+ business results linked use
cases impacting various aspects of productivity such as customer
service, quality, energy consumption, sustainability, equipment
efficiency and people productivity. The company also invested
heavily in building people capabilities such as digital and
analytics translators, data scientists and data engineers.
In response to business scenarios of price erosion, sustainable
manufacturing practices, need for constant vigilance and
maintenance of uncompromising standards of quality, the journey has
already yielded significant results at the site – 43% manufacturing
cost improvement, 30% reduction in production lead time, 41% energy
consumption reduction, and significant dip in quality
deviations.
Sanjay Sharma, Global Head of
Manufacturing, Dr. Reddy’s said: “The successful
inclusion of our 25-year-old site in Hyderabad as a ‘Digital
Lighthouse’ factory is a big milestone in our productivity
improvement journey. We have seen significant financial and
operational impact from the journey. We are in the process of
scaling and replicating this to the rest of our manufacturing
network. Dr. Reddy’s aspires to be the most efficient pharma
operations in the world. Our productivity improvement and
digitalisation efforts are key to staying competitive, meeting
business imperatives, and meeting our ambitious ESG goals. Building
such ‘factories of the future’ is integral to innovation and to
build healthcare of the future. One of the most important outcomes
is that our top talent and young leaders want to be a part of this
aspirational journey. This collaborative and cross-functional
effort truly helps us fulfil our purpose of ‘Good Health Can’t
Wait’.”
Francisco Betti, Head of Shaping the
Future of Advanced Manufacturing and Value Chains, WEF,
said: “Global disruptions have highlighted the fragility
of current supply chains – as rising inflation and material
shortages are increasing pressure on manufacturing organizations,
Lighthouses show that scaling the deployment and adoption of Fourth
Industrial Revolution technologies across multiple factories and
business functions is key to accelerate the achievement of their
strategic imperatives, such as business growth, resilience and
greener operations."
Enno de Boer, Senior Partner and Global
Lead of digital manufacturing at McKinsey & Company,
said: “The newly designated Lighthouses show that
scaling can be done, with three must haves. First, clear strategy.
Without that, you get stuck in pilot purgatory, never seeing which
technologies matter for your business. Second, workforce
capabilities. Without enough of the right skills, your
transformation runs out of steam. Third, strong governance. Without
a real execution engine, you won’t capture impact or keep
improving.”
Watch our Chief Executive Officer, Erez Israeli, at the Global
Lighthouse Network Live event, which will be webcast live on 13th
October, 2022 (17:30-18:30 IST | 14:00-15:00 CET | 08:00-09:00
EST). The event will be telecast simultaneously on the social media
platforms and website of the WEF. For details, please visit:
https://www.weforum.org/agenda/2022/10/global-lighthouse-network-lighthouses-live-2022.
About the Global Lighthouse Network: The Global
Lighthouse Network is a community of manufacturing sites and value
chains that are world leaders in the adoption and integration of
the cutting-edge technologies of the Fourth Industrial Revolution.
Lighthouses apply Fourth Industrial Revolution technologies such as
artificial intelligence, 3D-printing and big data analytics to
maximize efficiency and competitiveness at scale, transform
business models and drive economic growth, while augmenting the
workforce, protecting the environment and contributing to a
learning journey for all-sized manufacturers across all geographies
and industries. The Global Lighthouse Network is a World Economic
Forum initiative in collaboration with McKinsey & Co. Factories
and value chains that join the Network are designated by an
independent panel of experts. Read more about the Global Lighthouse
Network
(https://www.weforum.org/projects/global_lighthouse_network).
About Dr. Reddy’s: Dr. Reddy’s Laboratories Ltd. (BSE:
500124, NSE: DRREDDY, NYSE: RDY, NSEIFSC: DRREDDY) is a global
pharmaceutical company headquartered in Hyderabad, India.
Established in 1984, we are committed to providing access to
affordable and innovative medicines. Driven by our purpose of ‘Good
Health Can’t Wait’, we offer a portfolio of products and services
including APIs, generics, branded generics, biosimilars and OTC.
Our major therapeutic areas of focus are gastrointestinal,
cardiovascular, diabetology, oncology, pain management and
dermatology. Our major markets include – USA, India, Russia &
CIS countries, China, Brazil and Europe. As a company with a
history of deep science that has led to several industry firsts, we
continue to plan ahead and invest in businesses of the future. As
an early adopter of sustainability and ESG actions, we released our
first Sustainability Report in 2004. Our current ESG goals aim to
set the bar high in environmental stewardship; access and
affordability for patients; diversity; and governance. For more
information, log on to: www.drreddys.com.
Disclaimer: This press release may include statements of future
expectations and other forward-looking statements that are based on
the management’s current views and assumptions and involve known or
unknown risks and uncertainties that could cause actual results,
performance or events to differ materially from those expressed or
implied in such statements. In addition to statements which are
forward-looking by reason of context, the words "may", "will",
"should", "expects", "plans", "intends", "anticipates", "believes",
"estimates", "predicts", "potential", or "continue" and similar
expressions identify forward-looking statements. Actual results,
performance or events may differ materially from those in such
statements due to without limitation, (i) general economic
conditions such as performance of financial markets, credit
defaults , currency exchange rates, interest rates, persistency
levels and frequency / severity of insured loss events, (ii)
mortality and morbidity levels and trends, (iii) changing levels of
competition and general competitive factors, (iv) changes in laws
and regulations and in the policies of central banks and/or
governments, (v) the impact of acquisitions or reorganization,
including related integration issues, and (vi) the susceptibility
of our industry and the markets addressed by our, and our
customers’, products and services to economic downturns as a result
of natural disasters, epidemics, pandemics or other widespread
illness, including coronavirus (or COVID-19), and (vii) other risks
and uncertainties identified in our public filings with the
Securities and Exchange Commission, including those listed under
the "Risk Factors" and "Forward-Looking Statements" sections of our
Annual Report on Form 20-F for the year ended March 31, 2022. The
company assumes no obligation to update any information contained
herein.
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