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Cadila Healthcare Ltd

Investor PresentationMarch 2009

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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.

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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 07-08 FY 06-07 % Gr FY 08-09 (9 m) % Gr

Operating Income 517 406 27% 25% Operating PAT 56 46 23% 39%

Note : For convenience of understanding, INR numbers have been converted into USD by taking average exchange rate of USD 1 = INR 45.

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STATE OF THE ART FACILITIESAND 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

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CORE BUSINESS AREAS AND REVENUE BREAK-UP (FY 07-08)

Revenue break-up by segment

Revenue break-up by region

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FINANCIAL HIGHLIGHTS

330

406

517

FY 05-06 FY 06-07 FY 07-08

Operating Income ($ Mio)

▲ 23%

▲ 27%

65

78

102

FY 05-06 FY 06-07 FY 07-08

EBIDTA ($ Mio)

▲ 21%

▲ 31%

37

46

56

FY 05-06 FY 06-07 FY 07-08

Operating Net Profit ($ Mio)

▲ 24%

▲ 23%

0.29

0.36

0.45

FY 05-06 FY 06-07 FY 07-08

Operating EPS ($)

▲ 24%

▲ 23%

Note : Operating Net Profit = Net Profit - Exceptional Items - Non Operating Items - Non Operating Forex Gains / Losses

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INDIA FORMULATIONS– SHIFT OF FOCUS

2000-01 2007-08

Portfolio shift from acute to life style and chronic segments

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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 1st in India.

• Entered dermatology market thru acquisition of Liva Healthcare

• Strengthened position in Neutraceuticals, Orthopedic, Diagnostics and Cosmetology segments by adding devoted task forces

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120

25080

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

57105

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Formulations-emergingmarkets

Formulations- developedmarkets

APIs/intermediates- exports

2007-08 US$ 217 Mio

2010-11 E US$ 450 Mio

International sales projections

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US – MARKETING PLAN AND ACHIEVEMENTS SO FAR

22

44

80

71

Productslaunched

ANDA approvals

ANDA filings

DMF Filings

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 12-15 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

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5.2

6.3

3.2

18.629.0

FY 05-06 FY 06-07 FY 07-08

Sales (Euro Mio)

Branded Generics

New Markets

Entered Spanish market (5th 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 12-15 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.

45

26

10

4341

31

New product filings Site variation filings

Filed Approved Launched

Leveraging India’s lower cost Generics to drive our French business

EUROPE – KEY INITIATIVES SO FAR

11.5

21.8

29.0

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$ 10 bn pharmaceutical market, growing at ~12% (Source : IMS)

Entered generics market in 2005-06 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 2007-08 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

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Acquired Nippon Universal Pharma. Ltd. in 2007-08 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 FY07-08.

JAPAN AND OTHER EMERGING GLOBAL MARKETS

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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 07-08.

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 07-08.

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.

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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 09-10

Full capacity utilisation by FY 10-11.

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

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22

211

NME & DrugDiscovery

Generics /Developmental

API & Others

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%

~ $ 35 Mio. (~7% of revenues)

325

150

325

NME & DrugDiscovery

Generics /Developmental

API & Others

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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

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HIGHLIGHTS FROM LATEST FINANCIAL RESULTS

Note : Operating Net Profit = Net Profit - Exceptional Items - Non Operating Items - Non Operating Forex Gains / Losses

Apr-Dec 08

Apr-Dec 07

Growth y-y%

Domestic Sales (Net) 273 237 14.8%Exports Sales 207 145 43.4%Total Net Sales 480 382 25.6%

Total Operating Income 490 391 25.1%

PBIDT 101 77 31.8%PBIDT % to Total Income

Net Operating Profit # 60 44 38.6%NOP % to Total Income

Operating EPS $ (not annualised)

0.44 0.32 38.6%

Consolidated$ Mio.

S ales ( mn E ur o)

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#REF! #REF!

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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.