1 Cadila Healthcare Ltd Investor Presentation March 2009

2 OUR VISION Zydus shall be a leading global healthcare provider with a robust product pipeline and sales of over $1 bn by 2010; we shall achieve sales of over $3 bn by 2015 and be a research-based pharmaceutical company by 2020.

3 ZYDUS CADILA - SNAPSHOT  Ranked 5th in Indian formulations market. (Source : ORG IMS MAT Jan-09).  Presence in developed generics markets (US, Europe, Japan) and emerging markets (Brazil, South Africa, CIS, Taiwan, Philippines and select other markets in Asia Pac and Africa region). Formulations exports grew by ~70% in last 4 years.  Market leader in niche consumer healthcare business with strong brands  Focusing on R&D – spending 6-7% of revenues p.a.  Consol. ($ Mio.) FY FY % Gr FY (9 m) % Gr Operating Income % 25% Operating PAT % 39% Note : For convenience of understanding, INR numbers have been converted into USD by taking average exchange rate of USD 1 = INR 45.

4 STATE OF THE ART FACILITIES AND INFRASTRUCTURE  Formulations – five manufacturing plants  Moraiya (Gujarat) - Largest integrated facility in Asia  Baddi (Himachal Pradesh) – for domestic and regulated markets  Sikkim – for domestic market  Goa – for semi regulated markets  Brazil – for catering to branded generics market  Consumer Products  Moraiya (Gujarat) – for Nutralite  APIs and Fine Chemicals – three plants  Ankleshwar and Dabhasa (Gujarat)  Fine chemicals facility at Ahmedabad (Gujarat)  Contract Manufacturing  Mumbai – for Pantoprazole intermediates for Zydus Nycomed JV  Ahmedabad – for cytotoxic injectibles for Zydus Hospira JV  Ahmedabad – for cytotoxic facility for Zydus BSV JV

5 CORE BUSINESS AREAS AND REVENUE BREAK-UP (FY 07-08) Revenue break-up by segment Revenue break-up by region

6 FINANCIAL HIGHLIGHTS ▲ 23% ▲ 27% ▲ 21% ▲ 31% ▲ 24% ▲ 23% ▲ 24% ▲ 23% Note : Operating Net Profit = Net Profit - Exceptional Items - Non Operating Items - Non Operating Forex Gains / Losses

7 INDIA FORMULATIONS – SHIFT OF FOCUS Portfolio shift from acute to life style and chronic segments

8 ACHIEVEMENTS IN INDIAN MARKET Zydus Cadila ranks 5th with $ ~275 Mio. sales. (Source: ORG IMS MAT Jan-09) Leading positions in the key therapeutic segments – Cardiovascular, Gastrointestinal, Female Healthcare and Respiratory (participated market segments, as per ORG IMS MAT Jan-09) 16 Zydus brands feature amongst the top 300 brands. (Source: ORG IMS MAT Jan-09) Exploring opportunities in rural market – next growth driver Launched >40 new products and line extensions so far in FY 08-09, of which 15 were 1 st in India. Entered dermatology market thru acquisition of Liva Healthcare Strengthened position in Neutraceuticals, Orthopedic, Diagnostics and Cosmetology segments by adding devoted task forces

9 INTERNATIONAL FORMULATIONS - TWO FOLD FOCUS Developed generics markets US - the largest generic market Zydus Pharmaceuticals USA Inc. Europe - Zydus France SAS Laboratories Combix, Spain Japan- Nippon Universal Pharmaceuticals Ltd. Emerging markets Brazil – Nikkho (Branded), Zydus Brazil (Generics) Asia Pacific- Sri Lanka, Myanmar, Taiwan, Philippines Africa, Middle East – South Africa (Simayla), Sudan, Uganda, Algeria CIS - Russia, Ukraine Formulations-emerging markets Formulations- developed markets APIs/intermediates- exports US$ 217 Mio E US$ 450 Mio International sales projections

10 US – MARKETING PLAN AND ACHIEVEMENTS SO FAR Robust regulatory pipeline  World’s largest generics market at ~ $ 35 bn, growing at 10-12% (Source : IGPA)  Started operations in 2005  Over half of the products use own API.  Plan to file ANDAs p.a.  Launched 22 products. Plan to launch 8-10 products every year.  Market share ranges between 5-25% in these products.  Sales ~$ 79 Mio. (CY 2008)  Rated as one of the fastest growing generic companies in US by IMS

11 New Markets  Entered Spanish market (5 th largest in Europe) by acquiring Laboratories Combix  Planning to enter select other markets Product Launches  Launched >100 generic presentations in France  Plan to launch of products p.a. in France Focus on Generics  Eur 2 bn market, growing at ~11% (IMS)  Over 2% share in participated market, one of the fastest growing companies. Leveraging India’s lower cost Generics to drive our French business EUROPE – KEY INITIATIVES SO FAR

12  $ 10 bn pharmaceutical market, growing at ~12% (Source : IMS)  Entered generics market in thru 100% subsidiary, Zydus Healthcare Brazil Ltda  Filed dossiers for 40 products so far, of which 18 have been approved and all have been launched  Acquired of Nikkho do Brazil Ltda. in provides entry into fast growing, profitable and sustainable branded generics segment.  A profit-making co., Nikkho has a mfg. facility and strong marketing and distribution network in Brazil.  Present basket of ~20 brands has been expanded with launch of several new brands from pipeline of existing brands and few acquired brands.  Crossed sales of BR 68 Mio. (~$ 35 Mio.) in CY 2008 in Brazil, expected to grow at over 20% annually. BRAZIL – KEY INITIATIVES

13  Acquired Nippon Universal Pharma. Ltd. in to gain entry in generics market of Japan, valued at ~$3 bn, growing at ~12% (Source : IGPA).  Plan to introduce new products in Japan through in-licensing route as well product registrations from India.  Presence in over 20 semi / non regulated emerging markets.  Amongst top 3 Indian pharma cos. in Sri Lanka, Myanmar, Uganda and Sudan.  Focusing and developing base in rapidly growing markets of Russia, South Africa, Taiwan and Philippines.  Recently acquired majority stake in Simayla Pharma, South Africa. Plan to launch several new products in South Africa within next 3 years, from strong pipeline which we have built from India.  Exports to these markets grew by >20% in last 4 years and crossed $ 20 Mio. mark in FY JAPAN AND OTHER EMERGING GLOBAL MARKETS

14 CONSUMER HEALTHCARE – BUILDING STRONG BRANDS  Presence in low calorie sweetener and skincare products business in India since more than 15 years.  Sugar Free group - the healthier alternative to sugar  Market leader in India with market share of >75% (Source : AC Nielsen).  Growing at CAGR of over 20% for last 3 years, the brand crossed $ 14 Mio. sales mark in FY  Everyuth range of skincare products have also been growing at CAGR of ~ 20% for last 3 years.  Acquired stake in Carnation Nutra-Analogue Foods Ltd., the manufacturers of Nutralite, India’s largest selling margarine  Revamped brand Nutralite post acquisition, which crossed sales of $12 Mio. with 32% growth and registered positive bottom-line in FY  Restructuring of consumer business, with de-merger of consumer business from Cadila in Carnation, which is now Zydus Wellness Ltd., is aimed at unlocking business synergies and shareholders’ value.

15  Zydus Nycomed JV – most successful contract manufacturing JV in India  State of the art API mfg. plant for Pantoprazole intermediates  Plan to expand scope of the JV, with more APIs to be sources by Nycomed from this JV over next 2-3 years  Zydus Hospira - JV for oncology injectables (Generics)  State of the art cytotoxic facility located in an SEZ near Ahmedabad.  Commercial production to start from Q1 FY  Full capacity utilisation by FY  Zydus BSV - JV for oncology NDDS  State of the art mfg. plant in SEZ near Ahmedabad  Launched NDDS product in India in 2008 as Nudoxa  33 other contracts with innovator and generic MNCs with peak revenue potential of US$ 45 Mio. CONTRACT MANUFACTURING - EXCITING PROSPECTS

16 RESEARCH FOCUS Zydus Research Centre (ZRC) Located in Ahmedabad Focused on NME Research & NDDS Pharmaceutical Technology Centre (PTC) 2 centers – one located in Ahmedabad, another in Mumbai Focused on Finished Dosage Form Development & NDDS API Process Research Located in Ankleshwar/Ahmedabad Focused on Process Development R&D Spends – FY Scientific Talent Pool ~ % 6% 32% ~ $ 35 Mio. (~7% of revenues)

17 ZYDUS RESEARCH CENTER - INVESTING FOR THE FUTURE NME Research, Biologicals (Biogenerics) & NDDS. Therapeutic Area: Dyslipidemia, Diabetes, Obesity, Inflammation. Infrastructure for target identification to pre-clinical research / early clinical development. Multiple candidates under preclinical stage. NME IND Filing Phase 1 Phase 2 Phase 3 ZYH1 Dyslipidemia ZYH2 ZY01 Diabetes Obesity ZYI1 Inflammation Pre Clinical ZYH7 Dyslipidemia NME Pipeline ZYT1 Dyslipidemia

18 HIGHLIGHTS FROM LATEST FINANCIAL RESULTS Note : Operating Net Profit = Net Profit - Exceptional Items - Non Operating Items - Non Operating Forex Gains / Losses

19 No part of this presentation may be reproduced, quoted or circulated without prior written approval from Cadila Healthcare Ltd.. This presentation may include certain “forward looking statements”, based on current expectations, within the meaning of applicable laws and regulations. Actual results may differ and the company does not guarantee realization of these statements.The Company also disclaims any obligation to revise any forward-looking statements. The viewers may use their own judgement and are advised to make their own calculations before deciding on any matter based on the information given herein Thank You.