1. Investor Presentation
Cadila Healthcare Ltd
Investor Presentation
May 2007

2. Zydus Cadila- One of India’s leading integrated pharma companies
Ranked 5th in the domestic formulations market. (as per ORG IMS MAT Feb-07).
Formulations exports grew by ~69% in last three years and by 91% in 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.
FY % Gr FY % Gr
Consol. Revenues $ 410 mn % $ 329 mn 19% Consol. PAT $ 52 mn % $ 34 mn 46%
Market Capitalisation of ~ $ 970 mn.

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

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. 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. 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
Portfolio shift to life style and chronic segments

7. Achievements in domestic market
Zydus Rank *
Therapeutic Area
Zydus Cadila ranks 5th with Rs ~9.6bn sales. (Source : ORG IMS MAT Feb-07)
17 Zydus brands feature amongst the top 300 brands. (as per ORG IMS MAT Feb-07)
Recently launched ‘Novolizer’, a third-generation refillable, breath actuated multiple dose dry powder inhaler device for Asthma and COPD, which is 1st of its kind. The technology for the device has been provided by Meda Pharma of Sweden.
In all, launched 39 new products in FY 06-07, of which 8 were 1st in India.
Run-rate of new products’ launch to continue for next 2-3 years.
With recent acquisition of Liva Healthcare, we entered Rs. 15 bn dermatology market.
Cardiovascular 1
Gastrointestinal 1
Female Healthcare 1
Respiratory 2
* Segment ranking and Market Share refer to participated market. Source:ORG-IMS MAT Feb 07

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. 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. (Japan)
Recently acquired Nippon Universal Pharmaceuticals Ltd.
Emerging markets
CIS - Russia , Ukraine
Asia Pacific- Sri Lanka, Vietnam, Myanmar
Africa, Middle East
Brazil, South America
International sales projection
Formulations-emerging
markets
Formulations- developed
markets
APIs/intermediates- exports
US$ 134 mn
2010E US$ 370 mn

10. US – marketing plan and achievements so far 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 9 products so far (incl. Day 1 launches of Meloxicam & Simvastatin). Plan to launch products every year.
Response has been excellent with initial market share > 10% in 8 out of 9 products.
With sales > $ 31 Mio. (FY 06-07), Zydus is now rated a top tier generics company among peers in US.
ANDAs filed - half for matured products. Include 6 blockbusters and 2 NDDS.
Half the products envisage own API.
Plan to file ANDAs every year for next 2-3 years

11. Generics to drive our French business
France – key initiatives so far
Complete focus on Pure Generics
Direct business with pharmacies
Attained ~1.92% share in the participated generics market, within 3 years of start of generics biz. (IMS MAT Dec-06)
Launch of generics
Launched over 90 generic presentations so far.
Plan to boost the basket with over100 generic presentations by end 2007
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
21.8
11.6
5.1

12. Emerging Global Markets
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 ~33% in last three years and crossed Rs. 1 bn mark in FY
South Africa
Branded generics- commenced operations
Marketing and distribution partner finalized
Filed 34 submissions, received 10 product approvals so far
Launched 8 products so far, plan to launch 6-8 products every year
Brazil
Pharma market size of ~US$7 bn., growing at ~18% (Source : ESPICOM)
Filed 19 pure & branded generics product dossiers
Received 11 generic product approvals, and all have been launched.
Plan to file for and launch 8-10 products every year

13. Contract manufacturing - exciting prospects
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

14. Contract manufacturing - achievements so far
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
Full capacity utilisation in FY
23 other contracts with big innovator and generic MNCs signed so far with peak revenue potential of US$ 34 Mio.
Few more contracts in pipeline.

15. Research Focus Zydus Research Centre (ZRC)
Scientific Talent Pool ~ 600
Zydus Research Centre (ZRC)
Located in Ahmedabad
Focused on NME Research & NDDS
NME & Drug
Discovery
250
Generics /
Developmental
250
Pharmaceutical Technology Centre (PTC)
Located in Ahmedabad
Focused on Finished Dosage Form Development & NDDS
API & Others
100
Revenue R&D Spends – FY 06-07
NME & Drug
Discovery
933
API Process Research
Located in Ankleshwar/Ahmedabad
Focused on Process Development
69%
Generics /
Developmental
282
130
21%
API & Others
10%
Rs. 1,345 Mio. (~ $ 30 Mio.) (~7% of revenues)

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 4th IND - ZYO1, a novel drug candidate for treating Obesity and related disorders.
Multiple candidates under preclinical stage.
NME Pipeline
NME
Pre Clinical
IND Filing
Phase 1
Phase 2
Phase 3
ZYH1
Dyslipidemia
ZYI1
Inflammation
ZYH2
Diabetes
ZY01
Obesity

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
115 10 80 25 15 5
Formulations Development
Analytical Development
Pharmacokinetics & Project Mgmt.
Regulatory Affairs
IPR
Packaging Development

18. Other Recent Developments
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.
Recently acquired Nippon Universal Pharmaceuticals Ltd., which has got countrywide reach to more than 4000 hospital and clinics in Japan, which will give us critical access to a ready manufacturing and marketing base as well as a strong distribution network.
Acquired controlling stake in Liva Healthcare Ltd., a mid sized Indian pharma company with a derma focused product portfolio. With this, we entered hitherto unexplored Rs. 15 bn dermacare market, which is 7th largest therapeutic segment in Indian pharma market, and has grown at CAGR of 14% over last three years. (Source : ORG IMS)
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.

19. Financial Highlights Rs. Mio. USD Mio Consolidated Growth FY 06-07
y-y%
Domestic Sales (Net)
11,803
10,734
10.0%
261
237
Exports Sales
6,052
3,719
62.7%
134 82
Total Net Sales
17,855
14,453
23.5%
395
319
Total Operating Income
18,288
14,845
23.2%
404
328
Total Income
18,552
14,881
24.7%
410
329
PBIDT
3,785
2,913
29.9% 84 64
PBIDT % to Total Income
20.4%
19.6%
Net Profit
2,338
1,524
53.5% 52 34
NP % to Total Income
12.6%
10.2%
EPS Rs. ##
18.62
12.13
0.41
0.27
## EPS of FY is adjusted for bonus shares issued in theratio of 1:1 in Aug-06.
As on 31st Mar 07
Rs. Mio.
US $ Mio.
Net Worth
8,655
199
Total Debt
4,934
113
Net Fixed Assets
9,783
225
Net Current Assets
4,824
111

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. Thank You. www.zyduscadila.com
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