| Indian Pharmaceutical Company Granules India Reports Decrease in Profit due to Cyber Attack |
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| Source |
Granules India, an Indian pharmaceutical company specializing in painkillers, has announced a sharp decrease in profit for the first quarter of 2023. The decline can be attributed to a large-scale cyber attack that occurred on May 25 and temporarily disrupted the company’s operations.
The corporation holds a significant 30% share of the global pharmaceutical market for well-known drugs such as paracetamol and ibuprofen. It is involved in both the production of active pharmaceutical ingredients (APIs) and the manufacturing of finished dosage forms for European customers.
The attack on Granules India involved the use of extortion software, which compromised the company’s systems. Although the specific hacker group responsible has not been disclosed, they have claimed responsibility for the attack.
The cyber attack resulted in significant disruptions to the company’s operating systems, requiring over three weeks to restore the quality control systems to international standards. These disruptions have had a direct impact on the financial performance of Granules India.
The company’s net profit plummeted by 62.5%, while its revenue saw a decline of 3.3%, amounting to 9.85 billion rupees (equivalent to approximately 11,623,000,000 rubles) due to the consequences of the hacking incident.
Despite successfully restoring operations, Granules India continues to face delays in the verification and shipment of products. The estimated damage from the cyber attack has exceeded 500 million rupees.
Assuring stakeholders, Krishna Prasad Chigurupati, the chairman of the board of directors and managing director, stated that the company has fully restored its operations.