1. 1 Cadila Healthcare Ltd Investor Presentation May 2008

2. 2 Zydus Cadila- One of India’s leading integrated pharma companies  Ranked 4th in Indian formulations market. (as per ORG IMS MAT Mar-08).  Formulations exports grew by ~70% in last four years on the back of rapid growth in developed / semi regulated generics markets of US, France and Brazil.  Focusing on Research & Development – spending ~7% of the revenues on R&D every year.  FY 07-08 FY 06-07 % Gr Consol. Revenues $ 577 mn $ 409 mn 27% Consol. Operating PAT $ 63 mn $ 46 mn 23% Market Capitalisation of ~ $ 1 bn.

3. 3 Core Business Areas and their Revenue Break-up Revenue break-up by segment Revenue break-up by region Break-up of Revenue (FY 2007-08)

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  Sikkim – for catering to domestic market  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 – three plants  Ankleshwar and Dabhasa (Gujarat) – US FDA approved multi purpose plants  Fully dedicated fine chemicals facility at Ahmedabad (Gujarat)  Contract Manufacturing  Mumbai (Zydus Nycomed JV) – dedicated facility for Pantoprazole intermediates  Goa – dedicated facility for manufacturing Agiolax for Madaus AG  Ahmedabad - cytotoxic injectibles production facility for Zydus Hospira JV  Ahmedabad - cytotoxic facility for NDDS product for Zydus BSV JV

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

6. 6 India Formulations - strategy Maintain overall position and market share through :  Focus on fast growing chronic/ lifestyle segments  Continued new product introductions  In-licensing arrangements- Schering AG, Boehringer Ingelheim, Meda Pharma etc.  Market expansion – explore new therapeutic areas and geographies  Marketing excellence 2000-01 2007-08 Portfolio shift to life style and chronic segments

7. 7 Achievements in Indian market Zydus Cadila ranks 4th with Rs ~11.5bn sales. (Source : ORG IMS MAT Mar-08) 16 Zydus brands feature amongst the top 300 brands. (as per ORG IMS MAT Mar-08) Creation of a special field force to tap growth potential of rural market, considered to be the “next growth driver for formulations business in India”, has showed encouraging results, and has prompted us to further expand field force in rural areas. In all, launched >35 new products and >25 line extensions in FY 07-08, of which 10 were 1 st in India. With acquisition of Liva Healthcare, we entered Rs. 15 bn dermatology market, growing at 14%. We introduced range of cosmetology products in Liva with special field force for the same. We now plan to strengthen our position in neutraceuticals, orthopedic and diagnostics segment by adding special field forces for these businesses. 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 MAT Mar-08 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 Japan

9. 9 International business- two fold focus Developed generics markets US- the largest generic market in the world Zydus Pharmaceuticals USA Inc. Europe- Zydus France SAS Planning to enter Spain & Italy Japan- Zydus Pharmaceuticals Inc. Nippon Universal Pharmaceuticals Ltd. 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 2007-08 US$ 217 mn 2010E US$ 450 mn # International sales projections # Organic sales projections, except formulations in emerging markets, which includes Nikkho do Brazil acquisition

10. 10 US – marketing plan and achievements so far  ANDAs approved represent > $ 20 bn market size (of resp. branded product)  Almost half of the products envisage own API.  Plan to file 15-20 ANDAs every year for next 2-3 years Robust regulatory pipeline  Marketing and distribution through Mallinckrodt, which is 7th largest generic player in US, under the joint label “ZyPharma”.  Also doing direct marketing to select customers under label “ZyGenerics”.  Launched 15 products so far (incl. Day 1 launches of Meloxicam, Simvastatin and Carvedilol). Plan to launch 8-10 products every year.  Response has been excellent with market share > 10% in over half of the products.  With sales > $ 63 Mio. (FY 07-08), and high growth rate which is expected to continue for next couple of years, Zydus is now rated a top tier generics company among peers in US.

11. 11 Launch of generics  Launched >100 generic presentations so far.  Plan to boost the basket with launch of 12-15 products every year for next 2-3 years. Complete focus on Pure Generics  Attained >2% share in the participated generics market, within 3 years of start of generics biz. Rated fastest growing generic company in France (Source : IMS) 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 11.5 21.8 29.0

12. 12 Emerging Global Markets Brazil  Started operations in 2005-06 with entry in pure generics market thru own subsidiary.  Filed 37 generics dossiers and received 13 approvals so far. All have been launched.  Recent acquisition of Nikkho do Brazil Ltda. 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 14 brands to be expanded with launch of more brands from ~50 registered unlaunched brands. Continuous Growth Momentum  Presence in over 25 semi / non regulated emerging markets.  Amongst top 3 Indian pharma cos. in Sri Lanka, Myanmar, Philippines, Uganda and Sudan.  Focusing and developing base in rapidly growing markets of Brazil, Russia and Japan.  Exports to these markets grew by >50% in last 3 years and crossed Rs.2 bn mark in FY07-08. Japan  Opened up a new subsidiary in Japan - Zydus Pharma Inc. to kick start operations.  The subsidiary will market APIs and formulations in Japanese market, and start product registration process in 2008.  Operations to commercialise by 2010.  Recently acquired Nippon Universal Pharmaceuticals Ltd., which has got countrywide reach to more than 4000 hospital and clinics in Japan.  The acquisition provides critical access to a ready mfg. and marketing base as well as a strong distribution network.

13. 13  Presence in low calorie sweetener and skincare products business in India since more than 15 years.  Sugar Free group  The healthier alternative to sugar, Sugar Free is a 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 Rs. 650 mn sales mark in FY 07-08.  Everyuth range of skincare products have also been growing at CAGR of ~ 20% for last 3 years.  To complement Sugar Free in life style segment, acquired ~ 62% stake in Mar-06 in Carnation Nutra-Analogue Foods Ltd., the manufacturers of Nutralite.  India’s largest selling margarine, Nutralite is free from cholesterol and a healthier substitute for butter.  After acquisition, revamped the brand Nutralite, with change in packs, packing style, special promotional campaign and shift of focus from bulk to retail segment, which yielded result in the very first year. It crossed sales Rs. 550 mn with 32% growth and registered positive bottmline in FY 07-08. Consumer Products – building strong brands

14. 14  With world class state of the art manufacturing facilities, dedicated IPR team enabling rapidity in site transfers and competency in development projects, Zydus is uniquely positioned on Contract mfg. front.  Zydus Nycomed JV - benchmark in contract manufacturing  State of the art manufacturing facility set up as an EOU near Mumbai.  Supplying >60% of the global requirements for two key starting materials of Pantoprazole to its worldwide patent holder, Nycomed.  Plan to expand scope of the JV by transferring current API production of Nycomed from its existing facilities to the JV’s plant over a period of four years.  Zydus Hospira - JV for oncology injectables (Generics)  JV for mfg. and marketing generic cytotoxic injectable products worldwide  Set up cytotoxic facility located in an SEZ near Ahmedabad.  Commercial production expected to start in FY 08-09.  Full capacity utilisation in FY 10-11.  29 other contracts with innovator and generic MNCs signed so far with peak revenue potential of US$ 43 Mio. Contract manufacturing - exciting prospects

15. 15 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 07-08 Scientific Talent Pool ~ 800 62% 6% 32% Rs. 1,588 Mio. (~ $ 39 Mio.) (~7% of revenues)

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 and anti-inflammatory & pain management compound ZYI1 are in Phase II clinical trials. ZYH2, the novel agent for treating diabetes and ZYO1, the candidate for treating obesity and related disorders are undergoing Phase I clinical trials. Recently filed 5th IND – ZYH7, a novel drug candidate for treating dyslipidemia and metabolic 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 ZYH7 Dyslipidemia NME Pipeline

17. 17 PTC – The Single Window for Global Dossiers Product Development team of ~325 scientists In-house Regulatory, IPR & Packaging development Group Infrastructure: –Development labs –Pilot Plant –Analytical Support –Stability studies –Pharmacokinetics Recently added facilities to develop parenteral products – both liquid and lyophilised, transdermal drug delivery systems and respiratory dosage forms PTC : Scientific Team

18. 18 Financial Highlights

19. 19 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.

20. 20 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.