1. 1 Cadila Healthcare Ltd Investor Presentation March 2007

2. 2 Zydus Cadila- One of India’s leading integrated pharma companies  Ranked 5th in the domestic formulations market. (as per ORG IMS MAT Dec-06).  Formulations exports grew by ~69% in last three years and by 109% during 9 months of FY 06-07, on the back of rapid growth in developed / semi regulated generics markets of US, France and Brazil.  Focusing on Research & Development – spending 6-7% of the revenues on R&D every year.  Apr-Dec 06 % Gr FY 05-06 % Gr Consol. Revenues $315 mn 24% $331 mn 19% Consol. PAT $ 43 mn 60% $ 34 mn 46% Market Capitalisation of ~ $ 925 mn.

3. 3 Core Business Areas and their Revenue Break-up Revenue break-up by segment Revenue break-up by region Break-up of Revenue (Jan-Dec 06)

4. 4 State of the art facilities and infrastructure  Formulations – four manufacturing plants  Moraiya (Gujarat) Largest integrated facility in Asia; facilities for producing almost all types of dosage forms Approved by US FDA, MHRA, ANVISA, AFSSAPS, BFAD & MCC  Baddi (Himachal Pradesh) – for catering to domestic market  Goa – for catering to both domestic and non regulated markets  One more facility at Sikkim for domestic market on the verge of completion  Amongst few in India to make lyophilised products, vaccines, aerosols, hormones and cytotoxic products,  Only producer of transderamal patches and suppositories in India  APIs and Fine Chemicals – four plants  Ankleshwar & Dabhasa (Gujarat) – US FDA approved multi purpose plants  Patalganga (Maharashtra) – multi purpose with GMP certification  Fully dedicated fine chemicals facility at Ahmedabad (Gujarat)  Contract Manufacturing  Mumbai (Zydus Altana JV) – dedicated facility for pantoprazole intermediates  Goa – dedicated facility for manufacturing Agiolax for Madaus AG  Two more facilities under construction near Ahmedabad (Gujarat) – Cytotoxic production facility for Zydus Mayne JV Cytotoxic facility for NDDS product for Zydus BSV JV

5. 5 Overall strategy  Continued focus on domestic market  Grow rapidly in key global generics markets- US, Europe & Latin America  Leverage strengths through contract manufacturing opportunities  Focus on innovation- R&D

6. 6 Domestic market strategy Maintain overall position and market share through :  Focus on faster growing chronic/ lifestyle segments  Continued new product introductions  In-licensing arrangements- Schering AG, Boehringer Ingelheim, Meda Pharma etc.  Marketing excellence 2000-01 2006 Portfolio shift to life style and chronic segments

7. 7 Achievements in domestic market Zydus Cadila ranks 5th with Rs ~9.5bn sales. (Source : ORG IMS MAT Dec-06) 17 Zydus brands feature amongst the top 300 brands. (as per ORG IMS MAT Dec-06) Launched 34 new products in FY 05-06. New products introduced in last 3 years contribute ~10% of domestic formulations sales. Plan to launch 30-35 products in FY 06-07, and the same run-rate to continue for next 2-3 years. Recently launched ‘Novolizer’, a third- generation refillable, breath actuated multiple dose dry powder inhaler device for Asthma and COPD, which is 1 st of its kind. The technology for the device has been provided by Meda Pharma of Sweden. Cardiovascular Gastrointestinal Female Healthcare Respiratory 1 1 1 1 1 1 2 2 Zydus Rank * * Segment ranking and Market Share refer to participated market. Source:ORG-IMS Dec 06 (MAT) Therapeutic Area

8. 8 Prioritized Generics Markets Princeton, NJ Brazil Paris South Africa Uganda Sudan Algeria Dubai Yemen Sri Lanka Myanmar Thailand Vietnam Philippines Taiwan Russia Ukraine Latvia Lithuania Mauritius Singapore Kenya Ethiopia Venezuela USA EU LATAM CIS ASIA HQ: Ahmedabad AFRICA

9. 9 International business- two fold focus Developed generics markets US- the largest generic market in the world Zydus Pharmaceuticals Inc. Europe- Zydus France SAS Planning to enter Spain & Italy Emerging markets CIS - Russia, Ukraine Asia Pacific- Sri Lanka, Vietnam, Myanmar Africa, Middle East Brazil, South America Formulations-emerging markets Formulations- developed markets APIs/intermediates- exports 2005-06 US$ 83 mn 2010E US$ 370 mn International sales projection

10. 10 US – marketing plan and achievements so far  ANDAs filed - half for matured products. Include 6 blockbusters and 2 NDDS.  Half the products envisage own API.  Plan to file 8-10 more ANDAs by the end of FY 06-07, taking cumulative total to over 55 ANDAs. Robust regulatory pipeline  Marketing and distribution through Mallinckrodt, which is 7th largest generic player in US.  Also doing direct marketing to select customers through own US subsidiary.  Launched 8 products so far (incl. Day 1 launches of Meloxicam & Simvastatin). Response has been excellent with initial market share > 10% in all products.  Sales in first full year of operations (CY 2006) ~ US$ 26 mn.  Plan to launch another 6-8 products in CY 2007 also.

11. 11 Launch of generics  Launched over 85 generic presentations so far.  Plan to boost the basket with over100 generic presentations by end 2007 Complete focus on Pure Generics  Direct business with pharmacies  Business thru “Evolupharm”, a large buying group representing ~ 2250 pharmacies. Relationship with pharmacists  Building special relationship with pharmacists  Supporting a health awareness program for the Zydus club of pharmacists Leveraging India’s lower cost Generics to drive our French business France – key initiatives so far 5.7 10.6 20.6

12. 12 Emerging Global Markets Brazil  Pharma market size of ~US$7 bn., growing at ~18% (Source : ESPICOM)  Filed 30 pure & branded generics dossiers  Received 13 generic product approvals, and all have been launched.  Plan to file for and launch 8-10 products every year South Africa  Branded generics- commenced operations  Marketing and distribution partner finalized  Filed 33 submissions, received 11 product approvals so far  Launched 4 products so far, plan to launch 6-8 products every year Continuous Growth Momentum  Presence in over 26 semi / non regulated emerging markets.  Amongst the top three Indian pharma companies in Sri Lanka, Myanmar, Philippines, Uganda and Sudan.  Focusing and developing base in rapidly growing markets of Brazil, Russia and South Africa.  Exports to these markets grew by ~28% in last three years and by 31% during 9 months of FY 06-07.

13. 13 Zydus is uniquely positioned on Contract Mfg. Front :  World class state of the art manufacturing facilities.  Dedicated dossier filing and IPR team, enabling rapidity in site transfer projects and competency in development projects.  Zydus’ experience with global partners -  Cost efficient and high quality products and services  Working with several US and European multinationals  Operational transparency with these partners  Dedicated project management teams Contract manufacturing - exciting prospects

14. 14  Altana JV - benchmark in contract manufacturing.  State of the art manufacturing facility set up as an EOU near Mumbai.  Supplying 2 key starting materials of Pantoprazole to its worldwide patent holder, Altana AG, Germany.  60% of global requirements are met from this plant.  Recently increased capacity by 20% from 48 tons to 60 tons.  Mayne Pharma (Australia) - JV for oncology injectibles (Generics).  Setting up cytotoxic facility located in an SEZ near Ahmedabad.  Construction of the plant completed.  Commercial production expected in FY 07-08.  Full capacity utilisation in FY 08-09.  20 other contracts with big innovator and generic MNCs signed so far with peak revenue potential of US$ 27.5 Mio.  Few more contracts in pipeline. Contract manufacturing - achievements so far

15. 15 654 99 247 NME & Drug Discovery Generics / Developmental API & Others Research Focus Zydus Research Centre (ZRC) Located in Ahmedabad Focused on NME Research & NDDS Pharmaceutical Technology Centre (PTC) Located in Ahmedabad Focused on Finished Dosage Form Development & NDDS API Process Research Located in Ankleshwar/Ahmedabad Focused on Process Development Revenue R&D Spends – Jan-Dec 06 Scientific Talent Pool ~ 600 65% 10% 25% Rs. 1000 Mio. (~6% of net sales) 250 100 250 NME & Drug Discovery Generics / Developmental API & Others

16. 16 Zydus Research Center - investing for the future NME Research, Biologicals (Biogenerics) & NDDS. Therapeutic Area: Diabetes, Dyslipidemia, Obesity, Inflammation. Infrastructure for target identification to pre-clinical research / early clinical development. Lead lipid lowering drug candidate ZYH1 in Phase II clinical trials. ZYI1, the Anti-inflammatory & Pain Management compound, completed Phase I trials, while ZYH2, the novel agent for treating diabetes will start Phase I clinical trials soon. Recently filed 4 th IND - ZYO1, a novel drug candidate for treating Obesity and related disorders. Multiple candidates under preclinical stage. NME IND Filing Phase 1 Phase 2 Phase 3 ZYH1 Dyslipidemia ZYH2 ZY01 Diabetes Obesity ZYI1 Inflammation Pre Clinical NME Pipeline

17. 17 PTC – New Product Development Team Product Development team of 250 scientists Infrastructure: –Development labs –Pilot Plant –Analytical Support –Stability studies –Pharmacokinetics In-house Regulatory, IPR & Packaging development Group PTC : Scientific Team 5 15 25 115 10 80 Formulations Development Analytical Development Pharmacokinetics & Project Mgmt. Regulatory Affairs IPR Packaging Development

18. 18  Set up a JV with M/s Bharat Serum and Vaccines Ltd., one of the top 10 biotech companies in India, to develop, manufacture and market a non-infringing and proprietary Novel Drug Delivery System (NDDS) of an approved anti-cancer product for global markets.  Acquired ~ 62% stake in Carnation Nutra-Analogue Foods Ltd., the manufacturers of “Nutralite”, India’s largest selling margarine, currently enjoying a market share close to 60%, which is free from cholesterol and is healthier substitute for butter. This will complement our “Sugar Free”, which is brand leader in life style segment.  Opened up a new subsidiary in Japan - "Zydus Pharma Inc., Japan" to kick start Japanese operations. The subsidiary will market APIs and formulations in Japanese market, and start product registration process in 2007. Other Recent Developments

19. 19 Financial Highlights Apr-Dec 06Apr-Dec 05 Growth y-y% Domestic Sales (Net)9,2838,575 Exports Sales4,3612,514 Total Net Sales13,64411,08823.0% Total Operating Income13,93111,385 Total Income14,18011,43024.1% PBIDT3,0592,26635.0% PBIDT % to Total Income21.6%19.8% Net Profit1,9491,21860.1% NP % to Total Income13.7%10.7% EPS Rs. (not annualised) ##15.529.69 ## EPS of FY 05-06 is adjusted for bonus shares issued in the ratio of 1:1 in Aug-06. Net Worth8,893 Total Debt4,576 Net Fixed Assets8,994 Net Current Assets5,257 Rs. Mio. Consolidated As on 31st Dec 06 (Rs. Mio.)

20. 20 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.

21. 21 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 www.zyduscadila.com Thank You.