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Agenda

1. Introduction.

2. Modes of Foreign Entries.

3. Acquisitions and Finances.

4. Major Strategies.

5. LPG Policy.

6. Looking Ahead.

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Introduction

Established in 1983 as a start-up company with 5products

Makes speciality pharmaceuticals and active

pharmaceutical ingredients

Listed on stock exchange in India in 1994 after an IPO

First international acquisition in Caraco in 1997

Sun today has 19 manufacturing locations worldwideand strong ground network of 400 committed field forcein 30 countries

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Modes of Foreign Entry

Initial equity stake technology for equity agreement

Brand buyout , Mergers and acquisitions

Promotional programmes

Purchased Niche brands in US

Initial foreign markets remained in the Asian region

( export operations through new products)

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Major acquisitions

Year Country Acquisition

2008 US

Caraco acquired some

products of Forests Inwood

business

2008 Tennessee, US Acquired Chattem Chemicals,Inc.

2005 New Jersey, US Assets of Able labs

2005 Ohio, US Formulation plant in Bryan

2005 Hungary Acquired ICN Hungary2004 US Women's Health Brands

1997 Detroit, US Acquired Caraco

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International sales(55%)Domestic sales(45%)

Asia

Africa PacificUS

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 03-04 0

9

18

27

36

45

8 Early Acquisitions

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

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Major Strategies

Combination of internal growth and acquisition to drivegrowth , mergers

Vertically integrated network across four continentsenabling high quality, low cost and a quick market

entry across the geographies Strong local sales force promotes brands to doctors

Brazil & Mexico - Mix of local production and exportfrom India as per market dynamics

Product expansion

R & D for new product development supportedcompanys exports in US and Europe

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Cost effectiveness of products with high quality

Inspection compliance plans from regulated and semi

regulated markets

Skilled personnel in R & D, manufacturing & marketing

and regulatory areas

Reasons for Growth

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LPG Policy

LPG have helped the Indian pharmaceutical companiesto achieve international recognition

Approved by US FDA and are listed at NASDAQ.

Sun Pharmaceutical focused on new productdevelopment and have grown tremendously.

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Government Control

Reduced DPCO coverage. Only 20 % exposure toDPCO

Customs duties and corporate taxes have beenlowered

Product patent regime ( WTO )

Less legal binding for Pharmaceutical industry toencourage new promoters

Global networked facilities are FDA, EMEA, TGA

approved

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Looking Ahead

The Sun Pharma of tomorrow will have brandsregistered in major markets of the world, and in mostmarkets, promoted by a high quality field force

Their innovation-based R&D programs were recentlydemerged into a separate company. The new R&Dcompany may seek to licence out

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