spil march-11 ir usd

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Creating Lasting

ValueInvestor Presentation- March 2011



Disclaimer

Except for the historical information contained herein, statements in this

presentation and the subsequent discussions, which include words or phrases such

as “will”, “aim”, “will likely result”, “would”, “believe”, “may”, “expect”, “will

continue”, “anticipate”, “estimate”, “intend”, “plan”, “contemplate”, “seek to”,

“future”, “objective”, “goal”, “likely”, “project”, “should”, “potential”, “will pursue”

and similar expressions or variations of such expressions may constitute "forward-

looking statements". These forward-looking statements involve a number of risks,

uncertainties and other factors that could cause actual results to differ materiallyfrom those suggested by the forward-looking statements. These risks and

uncertainties include, but are not limited to our ability to successfully implement our

strategy, our growth and expansion plans, obtain regulatory approvals, our

provisioning policies, technological changes, investment and business income, cash

flow projections, our exposure to market risks as well as other risks. Sun

Pharmaceutical Industries Limited does not undertake any obligation to update

forward-looking statements to reflect events or circumstances after the date thereof.



Agenda

RevenueComposition

1

Strategy &Approach

History &Profile

Growth

KeyAcquisitions

BusinessOperations

GeographiesAPI, FinishedDosage &Manufacturing

Research &Development

Management& Governance

Financials

2

3

4

5



Agenda

Revenue

Composition

1

Strategy &Approach

History &Profile

Growth

KeyAcquisitions

BusinessOperations




Financials

2

3

4

5



45%

30%12%

13%

Revenue Composition

India

Branded Generics

5 Year CAGR 22%

US Generics

5 Year CAGR 33%

APIs

5 Year CAGR 19%

International BrandedGenerics (ex-US)

5 Year CAGR 43%

FinishedDosagesales 87%5 year CAGR 27%

Internationalsales 53%5 year CAGR 34%

2009-10 Annual sales : USD 909 million

5 Year CAGR 26%



Proforma Revenue Composition (withTaro)2009-10 Proforma Annual sales : $ 1.27 billion

44%

32%

10%

14%

InternationalFormulation (ex-US)

APIs

IndiaBranded Generics

US Generics



Creating Value, Continuously…

1983

Began with5 products

1993

First Research CentreSPARC, Baroda 1994

IPO - Rs. 550 Mnraised

1995

First APIPlant Panoli

1997

$7.5Mn investedin Caraco

2004

USD 350mnFCCB raised

2007

Demergerof innovativeR&D to SPARC

6 Key operatingsubsidiaries10,000+ Employees

Invested Rs. 20billionin Research

More than 65% of sales from international markets (including Taro)

Sun Pharma Today

‘83 ‘11

23 Manufacturingfacilities in 4 Continents

PART OF

2010

Acquired Taro



Agenda

Revenue

Composition

1

Strategy &Approach

History &Profile

Growth

KeyAcquisitions

BusinessOperations




Financials

2

34

5



Strategy and Approach

Create sustainablerevenue streams

• Focus: Chronic therapies

• Differentiation:

Technically complex

products• Speed to market

Seek cost leadership

• Vertical integration :

Development through

Manufacturing (API and

Finished Dosage) to

Marketing

• Optimize operational costs

Balance profitabilityand investments for

future• Acquisitions yielding high ROI

• Development of complex generics



Growing SteadilyConsistent top-line and bottom-line growth;

continuing the trend despite increasing size

Net Sales Net Profit

(Figures in USD million)

264

88

5 0

3 5 0

00 -0 1 0 1- 02 0 2- 03 0 3- 04 04 -0 5

5

1 0 0

893

302

1 0 0

1 ,

2 0 0

0 5- 06 0 6- 07 0 7- 08 0 8- 09 0 9- 10

0

5 0 0

100

19

0

1 2 0

95-96 96-97 97-98 98-99 99-00

0

2 5



Sustained ProfitabilitySuperior business model

Margins consistently higher than peers*

Sun PharmaRange of other Top 10 Pharma Cos. Average

Gross margin= (Net Sales – Material Cost) / Net Sales * 100

* Other top 10 Indian Pharma companies include Ranbaxy, DRL, Cipla, Piramal Healthcare, Lupin,

Wockhardt, Cadila, Aurobindo, Glenmark and Torrent

Net Margin

34%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

05-06 06-07 07-08 08-09 09-10

EBITDA Margin

31%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

05-06 06-07 07-08 08-09 09-10

Gross Margin

73%

40%

50%

60%

70%

80%

90%

05-06 06-07 07-08 08-09 09-10



Successful At AcquisitionsAcquired 14 high potential yet under-performing businesses*;

successful turnarounds

Net Sales (MINR) Operating Margin(%) Operating Profit (MINR)

0

2,000

4,000

6,000

8,000

10,000

95-96 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-040

9

18

27

36

45

8 EarlyAcquisitions



Key Acquisitions & Rationale Year Acquisition Country Rationale

2010 Acquired Taro PharmaceuticalIndustries Ltd.

Israel Dermatology & Topical ProductManufacturing Plant at Israel &Canada

2009 Caraco acquired some products of Forest’s Inwood business

US Increased generic product offerings

2008 Acquired Chattem Chemicals, Inc. Tennessee, US Import registration with DEA, API Plantapproved by DEA in Tennessee, US

2005 Assets of Able labs New Jersey, US Dosage form plant (NJ, US) and IP

2005 Formulation plant in Bryan Ohio, US Dosage form plant (Ohio, US)

2005 Acquired ICN Hungary Hungary API and dosage form plant (Hungary)

2004 Womens Health Brands US Brands in womens health (US)

2004 Merged Phlox Pharma Baroda, India API Plant

2000 Merged Pradeep DrugCompany Ltd (PDCL)

Chennai, India API Plant

1999 Merged Milmet Labs India Ophthalmology brands

1998 Brands from Natco India Respiratory brands1997 Acquired Caraco Detroit, US Dosage form Plant

1997 Merged Tamilnadu DadhaPharmaceuticals Ltd (TDPL)

Chennai, India Gynecology and oncology brands; APIand dosage form plant

1996 Acquired MJ Pharma Halol, India Dosage form plant (now USFDAapproved)

1996 Acquired Gujarat Lyka Ankleshwar, India API plant



Agenda

Revenue

Composition

1

Strategy &Approach

History &Profile

Growth

KeyAcquisitions

BusinessOperations




Financials

2

34

5



Creating Lasting Value - Investor Presentation15

India Branded Generics : Strong Base

• Market Share :

4.4%*

• Leadership in

chronic segment;

Top 3 in over 50% of

more than 500

brands

Neuro-Psychiatry

27%

Cardiology19%

Diabetology11%

Gastroenterology14%

Gynecology &

Urology- 7%

Musculo-Skeletal

& Pain- 5%

Antiasthamatic &Antiallergic- 5%

Opthalmology- 4%Others8%

Therapywise Break-up

* As per AWACS




Relentless Customer Focus

1999 Market Share indexed to 100 for all companies

Therapy focusedmarketing

• 2,600+ sales representatives

covering 130,000 specialist doctors

Strong increase in

prescription and

sales market share

50

100

150

200

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Sun Cipla Ranbaxy Nicholas Cadila DRL



Therapy Focused MarketingDelivering promotional message to specialty

customers.Cardiology, DiabetologyGastroenterology,

Orthopedics

Oncology

Rheumatology,Dermatology

Asthma,COPD

InterventionalCardiology

Fertility, Gynecology,Urology

Psychiatry, Neurology GynecologyOphthalmology




Preferred Choice of Doctors

Our Top 10 BrandsLeadership in key therapeutic

areas*Specialist Oct '04 Oct ‘10

Psychiatrists 1 1

Neurologists 1 1

Cardiologists 3 1

Orthopaedic 3 1

Ophthalmologists 2 1

Gastroenterologists 1 1

Diabetologists 3 2

Nephrologists 5 2

ConsultingPhysicians

6 3

Chest Physicians 6 4

Gynaecologists 10 6Urologists 8 8

Oncologists 9 9

ENT Specialists 7 20

Brand Name Therapy area

Pantocid Proton pump inhibitor/antiulcerant

GlucoredGroup

Oral antidiabetic

Susten Women's healthcare

Aztor CVS, cholesterol reducingagent

Pantocid-D Proton pump inhibitor/antiulcerant

Gemer Oral antidiabetic

Strocit CNS, stroke

Repace Group CVS, Hypertension

Encoratechrono

CNS, epilepsy

Clopilet CVS, anticlotting agent

*Ranks based on prescription share




US GenericsIntegrated generic manufacturer

with flexibility for manufacture

onshore / offshore

The 76% owned US generics subsidiary,

markets own and Sun Pharma ANDAs

Sun Pharmaceutical

Industries, Inc. (SPI)

Caraco Pharmaceutical

Laboratories Ltd.

A wholly owned subsidiary of

Sun Pharma in US

Approvals Therapy wise summary

As on Dec-10

Taro Pharmaceutical

Industries Ltd.

The 66% owned subsidiary of Sun Pharma

Endocine, 1

Gastro, 1Respiratory, 1

Urology, 2

Other, 2

Antibiotic, 3

Cough / Cold, 6

Metabolism, 7

Oncology, 12

Allergy, 13

Pain, 15

CVS, 20

CNS, 49

Skin, 88




ANDA Pipeline : Significant ramp up

Products Filed and Approved Status

As of Dec 10, ANDAs for 149

products await approval

(including 20 tentative

approvals)

92 Products pending

(with 12 tentative approval)

Sun Pharma

29 Products pending

(with 4 tentative

approval)

Caraco

Taro

28 Products pending

(with 4 tentative

approval)

( Taro numbers added for Dec 2010)

4059

95

142

177

207

369

15 20 29

5369

84

220

0

50

100

150

200

250

300

350

400

Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Dec-10

Cumulative Products Filed Cumulative Products Approved



US Generics

• Promethazine HCL with Codeine

Syrup

• Valproic Acid Soln

• Levetiracetam Injection

• Lithium Carbonate Tablets

• Tamsulosin HCl Capsules

• Venlafaxine HCL Tablets

• Diltiazem HCL ER Capsule

13 ANDA Approvals in last 1 year

• Bupropion HCL ER Tablets

• Alprazolam Tablets USP

• Azelastine HCL Ophthalmic

Solution

• Atomoxetine HCL Capsules

• Desloratidine Tablets

• Galantamine HCL ER Capsules




Europe Generic Markets

Plan to enter key

markets• Working on complex generic

products, including

injectables• Filings from Indian site

An API and Finished Dosage

manufacturing site in Hungarywith controlled substance

capacity

Focus Countries




International Branded Generic Markets

Less Regulated Markets

• Product basket width and

technology based products as

growth drivers

Replicating the speciality

template• 41 countries

• 600 strong local sales force

promotes brands to doctors

CIS Countries

China

Sri Lanka

Map Not to Scale

Mexico

South AfricaOther Markets

Focus Markets

Brazil

Myanmar

i li



Speciality API

High Margin RegulatedMarkets

•Business largely with end users in

regulated markets

•Over 160 speciality APIs across 8

plants

Strong regulatory capability

• 201 DMF / CEP filed

• 123 approved

(Including Taro)

St R l t C bilit




Strong Regulatory CapabilityInternational level quality processes and documentation

240

Integrated product dev and manufacturing



Integrated product dev and manufacturingnetwork

27

Vertically integrated network across four continents enabling high

quality, low cost and a quick market entry across the geographies

Halol

Ankleshwar

PanoliDadraSilvassa

Karkhadi

Bangladesh Plant

Ahmednagar

Maduranthakam

Sikkim Plant Jammu

Tiszavasvari(Hungary)

Goiânia(Brazil)

Iztapalapa(Mexico)

Israel

API and Formulations API Formulations

Global networked facilities are FDA, EMEA, TGA approved

Ontario (Canada)

CranburyBryan

Tennessee

Detroit

Taro PharmaceuticalsSun Pharma

Fi i h d D M f t i




Finished Dosage Manufacturing

15 Manufacturing sites

worldwide

• India : 6, US : 3, Canada : 1

• Capacities available for a

variety of finished dosage

Tablets /

Capsules

Semisolids

Liquids

Suppository

Injectables / Sterile

Vials Dry powder

Ampoules Eye drops

Pre-filled SyringesMDI

Gels Aerosols

Lyophilized Units

API M f t i




API Manufacturing

8 World class locations with all

sites ISO 14001, ISO 9002approved• India : 5, Israel : 1, US : 1,

Hungary : 1 Over 25 API

processes scaled up

annually

APIKey Plants

Panoli & Ahmednagar(both India)

• International regulatory

approvals: USFDA,

European

• Stand alone units for

peptides, anti-cancer,

steroids, sex hormones

Hungary &

Tennessee (US)

• Controlled substances

manufacture

Agenda



Agenda

Revenue

Composition

1

Strategy &Approach

History &Profile

Growth

KeyAcquisitions

BusinessOperations




Financials

2

34

5

Research and Development




Research and Development

• Generic R&D spend around 6% of net

sales

• Strong research teams in generics,finished dosage development,

biological support, chemistry

• 4 R&D centers with about 800

scientists

Mumbai

Balancingthe risk

Medium term

Drug delivery systems

Immediate term

ANDA, DMF, Products for India

Baroda

Agenda



Agenda

Revenue

Composition

1

Strategy &Approach

History &Profile

Growth

KeyAcquisitions

BusinessOperations




Financials

2

34

5

Corporate Governance



Corporate Governance

Our philosophy on corporate governance

envisages working towards high levels of transparency, accountability and consistent

value systems across all facets of operations

Committee chaired by Keki

Mistry comprises Hasmukh Shah

and

S. Mohanchand Dadha

Audit CommitteeEminent Independent Directors

Hasmukh Shah

Chairman Gujarat Gas

Former Chairman and

Managing Director,

IPCL

Keki Mistry

Vice Chairman and

CEO, HDFC

S. MohanchandDadha

Former Chairman &

Managing Director,

TDPL

Ashwin Dani Vice Chairman and

Managing Director,

Asian Paints Ltd.

Agenda



Agenda

Revenue

Composition

1

Strategy &Approach

History &Profile

Growth

KeyAcquisitions

BusinessOperations




Financials

2

3

4

5

Shareholding Pattern




Shareholding Patternas on Dec 31, 2010

• Rs 1,000 Invested

in the 1994 IPO is

currently worthmore than Rs.

174,000

• Earned dividend of

Rs. 5,000

Mutual Funds3%

Promoter and

promoter group

64%

Bodies Corporate5%

Individuals and Others5%

Financial Inst / Banks4%

FIIs / Foreign Banks

19%

Financials



FinancialsMarket Capitalisation USD 9.70 billion* Figures in USD million

*Exchange Rate : 1 USD = Rs45.18

P&L Summary

Net Sales

Financial Ratios



Financial Ratios

Growth (% )

Net Sales

Financials Q3 FY11



Financials Q3 FY11

Net Sales

Gross ProfitGross Margin



For updates and specific queries, please visit

www.sunpharma.comor feel free to contactUday Baldota

Tel : +91 22 6645 5645, Ext

605

Tel Direct : +91 22 66455605

Mobile : +91 98670 10529

[email protected]

Mira Desai

Tel : +91 22 6645 5645, Ext 606

Tel Direct : +91 22 66455606

Mobile : +91 98219 23797

[email protected]

© 2010 Sun Pharmaceutical Industries Limited., All Rights Reserved.

“SUN Pharma”, The Sun Pharmaceutical Industries Logo are trademarks of Sun Pharmaceutical Industries Limited.

In addition to Company data, data from IMS – ORG, CMARC, Stock Exchanges and industry publications has been used for this presentation.

This material was used during an oral presentation; it is not a complete record of the discussion. This work may not be used, sold, transferred, adapted,

abridged, copied or reproduced in whole on or in part in any manner or form or in any media without the prior written consent. All product names and

company names and logos mentioned herein are the trademarks or registered trademarks of their respective owners.

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