1. Torrent Pharmaceuticals Ltd
Investor Presentation Q2 FY 2011

2. Caveat
This information may contain certain forward-looking statements/ details in the current scenario, which is extremely dynamic and increasingly fraught with risks and uncertainties. Actual results, performances, achievements or sequence of events may be materially different from the views expressed herein. Investors/shareholders/public are hence cautioned not to place undue reliance on these statements/ details, and are advised to conduct their own investigation and analysis of the information contained or referred to in this section before taking any action with regard to their own specific objectives. Further, the discussion following herein reflects the perceptions on major issues as on date and the opinions expressed here are subject to change without notice. The Company undertakes no obligation to publicly update or revise any of the opinions or forward-looking statements expressed in this section, consequent to new information, future events or otherwise.

3. Contents Performance Highlights Financials Business Segments
India
International
Facilities – Expansion Plan

4. Q2 10-11 Highlights Revenues at Rs. 5,815 Mn vs. Rs 4,796 Mn
Revenue growth of 21% on the back of robust growth from India, Europe and US operations.
International sales boosted by noticeable performance in Europe and US operations.
PBT at Rs Mn vs. Rs 1004 Mn
Lower margins in Indian formulations business due to planned investments in new therapeutic areas and expansion of Field Force
International margins effected due to adverse currency movements

5. Financials

6. Sales Progression
Rs. Mn

7. P&L
Rs. Mn
Q2 FY 11 includes Rs. 100 Mn and Q2 FY 10 includes Rs. 150 Mn includes one time out-licensing income

8. Balance Sheet
Rs. Mn

9. Business Segments India

10. Highlights & Growth Drivers
India
Highlights & Growth Drivers
Rs. Mn
Q2 FY Highlights
Consistent sales gwth  Q2 15%; Q3 15%; Q4 20%; 10-11; Q1 13%; Q2 22%
ORG MAT Aug 2010 gwth of 17% with volume gwth 17%, New Introductions 2%, Price de-gwth 2%.
Lower margins on account of planned Therapeutic and Field force expansions
Growth drivers
Consolidate entry into newer geographies and therapeutic areas
Brand building thru increased Specialty Coverage & Creeping Expansion in Customer Base
New Product Introductions including filling of Portfolio Gaps

11. Business Segments International Operations

12. International Revenues
International Operations – Expanding Share
FY Turnover
Growing share of International – up from 26% to 50%
International Revenues
Rs. Mn

13. Highlights & Growth Drivers
Brazil
Highlights & Growth Drivers
Rs. Mn
Q2 FY 11 Highlights
Reai Volume growth 8%, New Introductions 7%, Price de-growth 1%.
Torrent growing at 8% vs. Covered Market growth of 10%
Improved margins on the back of lower R&D spend partially set off by increased marketing spend for the quarter
Growth Drivers
Existing Products & Introduction of new products (35-40 new launches by )
Increase in field force to support portfolio expansion
Entry into Mexico
Piggy-back on Brazil portfolio
Launch of Branded Generic (BG) model in CNS with 6 products and field force of 35 people
Entry into CV segment in
Portfolio to grow to 30 products in 4 years with field force of 200 people

14. Highlights & Growth Drivers
USA
Highlights & Growth Drivers
Rs. Mn
Q2 FY 11 Highlights
Improving market share in all commercialized molecules
Citalopram ~ 28% (26%), Zolpidem ~ 21% (22%) as per WKH retail
24 ANDA's approved till date (9 actively marketed, 12 under patent)
Planned launch of 4 products in H2 FY11
Growth Drivers
27 ANDA's pending for approval & 35 ANDA's under development
Break-even likely by

15. Highlights & Growth Drivers
Germany - Heumann
Highlights & Growth Drivers
Rs. Mn
Q2 FY 11 Highlights
Approx 70% of the covered market under tenders
Trend expected to continue with more insurance companies in the process of announcing tenders
Euro sales growth of 38%, volume growth of 66%, price de-growth of 46% and New product 18%
Adjusted for currency margins improve on the back of lower marketing spend partially offset by lower prices on tender sales.
Growth Drivers
Heumann successful in winning tenders
New Products going off patent and Therapy coverage expansion
Shift of manufacturing base to India to boost competitiveness in bidding

16. Highlights & Growth Drivers
Europe (excl Heumann)
Highlights & Growth Drivers
Rs. Mn
Q2 FY 11 Highlights
Euro sales growth of 60% on the back of increased sales from major products.
Improved margins on the back of lower R&D spend partially offset by higher marketing spend for new markets.
Growth Drivers
New Product Pipeline – 50 products till
Increasing geographical reach through direct field force presence in Romania and UK in the immediate term

17. Highlights & Growth Drivers
Rs. Mn
Q2 FY11 Highlights
Top line growth of 20% adjusted for currency movements top line grew by 27%
Stable margins despite adverse currency movements
Growth Drivers
Entry into semi-regulated markets like Thailand (Market Size of over USD 2 bio) – Revenues expected to flow from FY12.
Increased focus on existing territories with direct field force presence viz: Philippines, Sri Lanka, Vietnam & Myanmar
Scale up of operations in regulated markets like Australia & semi-regulated markets like South Africa.

18. Facilities – Expansion Plan

19. Facilities – Expansion Plan
Sikkim
Nature: New Formulation Facility
Project Cost: Rs. 135 crores
Planned capacities: 3900 million tablets p.a.
Timelines for completion:
Justification:
IT and Excise exemption for 10 years
With growing domestic market, Baddi plant is expected to achieve 100% capacity utilization in 2-3 years
Chatral
Nature: Formulation Capacity Enhancement
Project Cost: Rs. 56 crores
Planned capacities: 1800 million tablets / capsules p.a.
Timelines for completion:
Justification:
With growing international sales capacity constraint in existing facility is anticipated in 2-3 years
Chatral
Nature: API Capacity Enhancement
Project Cost: Rs. 113 crores
Planned capacities: 60 TPA plus separate facility for exhibit batch manufacturing
Timelines for completion:
Justification:
With growing volumes in US / EU, API capacity constraint is anticipated 2-3 years
Greater control over API Costs
Dahej SEZ
Nature: Formulation & API Capacity Enhancement
Project Cost: Rs. 771 crores
Planned capacities:50 TPA plus 9200 million tablets / capsules p.a.
Timelines for completion:
Justification:
With growing volumes in US / EU, API + Formulation capacity constraint is anticipated 2-3 years

20. Thank You