Investor Presentation 1

Creating Lasting ValueCreating Lasting Value

Investor PresentationInvestor PresentationJune 2009June 2009

Investor Presentation / 2

Disclaimer

Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as “will”, “aim”, “will likely result”, “would”, “believe”, “may”, “expect”, “will continue”, “anticipate”, “estimate”, “intend”, “plan”, “contemplate”, “seek to”, “future”, “objective”, “goal”, “likely”, “project”, “should”, “potential”, “will pursue” and similar expressions or variations of such expressions may constitute "forward-looking statements". These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to our ability to successfully implement our strategy, our growth and expansion plans, obtain regulatory approvals, our provisioning policies, technological changes, investment and business income, cash flow projections, our exposure to market risks as well as other risks. Sun Pharmaceutical Industries Limited does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date thereof.

Investor Presentation / 3

45%

35%

9%

11%

Revenue Composition 2008-09 Annual sales : Rs 43,751 million, 5 year CAGR 33%

India Branded Generics

5 year CAGR 28%

US Generics5 year CAGR 47%

International (ex-US)Generics5 year CAGR 42%

2008-09 Consolidated

Finished Dosage sales 89%5 year CAGR 35%

International sales 53%5 year CAGR 43%

API5 year CAGR 20%

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Strategy and Approach

Create sustainable revenue streamsFocus : Chronic therapiesDifferentiation : Technically complex productsSpeed to market

Seek cost leadershipVertical integration : Development through

Manufacturing (API and Finished Dosage) to Marketing

Optimise operational costs Balance profitability and investments for future

Acquisitions yielding high ROIDevelopment of complex generics

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Growing Steadily

Prior to 01-02 Standalone; rest consolidated

Revenue doubles and Net profit triples in 4 years;

continuing the trend despite increasing size

1,706

5,435

11,853

42,723

4911,352

3,962

18,177

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

93-94 94-95 95-96 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09

Net Sales (CAGR 35%) Net Profit (CAGR 42%)

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Sustained ProfitabilitySuperior business model

Margins consistently higher than peers *

Gross margin= (Net Sales – Material Cost) / Net Sales * 100•Other top 10 Indian Pharma companies include Ranbaxy, DRL, Cipla, Piramal Healthcare, Lupin, Wockhardt, Cadila, Aurobindo, Glenmark and Torrent

GrossMargin

gap

NetMargin

gap

EBITDAMargin

gap

80%

62%

44%

11%

43%

10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

2004-05 2005-06 2006-07 2007-08 2008-09

Gross Margin (Sun) Gross Margin (Other top 10)EBITDA Margin (Sun) EBITDA Margin (Other top 10)Net Margin (Sun) Net Margin (Other top 10)

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Successful At Acquisitions

Acquired 14 high potential yet under-performing businesses*; successful turnarounds

* Includes companies, plants or brands

95-96 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-040

1,0002,0003,0004,0005,0006,0007,0008,0009,000

10,000

0

5

10

15

20

25

30

35

40

45

Net Sales (MINR) Operating Profit (MINR) Operating Margin(%)

8 early acquisitions

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Business Operations

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India Branded Generics : Strong Base

Market share 3.5% Leadership in chronic segment; top 3 in over 50%

of more than 450 brands No “blockbuster” risk : Top 10 brands contribute

26% of sales

Neuro-Psychiatry28%

Cardiology20%Diabetology

11%

Gastroenterology8%

Gynecology &Urology,7%

Musculo-Skeletal & Pain, 6%

Others14%

Antiasthamatic & Antiallergic, 2%

Opthalmology,4%

Anti-Cancer,0%

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Relentless Customer Focus

Therapy focused marketing by 2500 sales representatives covering 125,000 specialist doctors

Strong increase in prescription and sales market share

1998 Market Share indexed to 100 for all companies

Ranks based on prescription shareSPECIALITY 1998 Current

Psychiatrist 1 1Neurologist 1 1Cardiologist 5 1Ophthalmologist NA 1Diabetologist 6 1Orthopaedicians 31 1Gastro-enterologist 6 2Nephrologist NA 4Oncologist 20 6Cons Physician 8 5Chest Physicians 16 4Gynaecologist NA 6

60

100

140

180

220

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Sun Cipla Ranbaxy Nicholas Cadila DRL

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US Generics : The highest priority market

Integrated generic manufacturer with flexibility for manufacture onshore / offshore

Caraco, the 76% owned US generics subsidiary, markets own and Sun Pharma ANDAs

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As of Mar 09, ANDAs for 108 products await approval (including 7 tentative approvals) 83 products from Sun Pharma (with 3 tentative approval) 25 products from Caraco (with 4 tentative approval)

ANDA Pipeline : Significant ramp up

59

95

179

2029

71

40

142

15

53

-

20

40

60

80

100

120

140

160

180

Mar-05 Mar-06 Mar-07 Mar-08 Mar-09

Cumulative Products Filed Cumulative Products Approved

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Europe Generic Markets

Plan to enter key marketsWorking on complex generic products, including

injectablesFilings from Indian site

Acquired an API and Finished Dosage manufacturing company in Hungary with controlled substance capacity

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International Branded Generic Markets

Less Regulated Markets Product basket width and technology based

products as growths Replicating the speciality template

30 countries, 1600 products registered and 1000 awaiting registration

400 strong local sales force promotes brands to doctors

Focus countries / regions : CIS, China, South-east Asia, South Africa, Brazil, Mexico

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Speciality API

High Margin Regulated Markets Business largely with end users in regulated

marketsOver 150 speciality APIs across 7 plants

Strong regulatory capability129 DMF / CEP approved or awaiting approval

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Finished Dosage Manufacturing

10 manufacturing sites compliant with international regulatory standardsIndia : 5, US : 3Over 750,000 sq. ft. areaCapacities available for a variety of finished dosage

Tablets / Capsules LiquidsSemisolids Suppository

Vials Dry powderAmpoules Eye drops

Pre-filled syringes MDIGels Aerosols

Lyophilized units

Injectables / Sterile

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API Manufacturing

8 World class locations with all sites ISO 14001, ISO 9002 approvedIndia : 6, US : 1, Hungary : 1Reactor capacity 1200 KL with over 650,000 sq ft

area

Over 25 API processes scaled up annually Panoli and Ahmednagar (both India)

International regulatory approvals: USFDA, EuropeanStand alone units for peptides, anticancers, steroids

sex hormones

Hungary & Tennessee (US)Controlled substances manufacture

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Research & Development

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Research and Development

Generic R&D spend around 8% of net sales Strong research teams in generics, finished

dosage development, biological support, chemistry

Balancing the risk Immediate term : ANDA, DMF, Products for IndiaMedium term : Drug delivery systems

2 R&D centers with over 500 scientists

Investor Presentation 20

Financial Highlights

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Financials

Consolidated*Exchange Rate, 1 USD = Rs. 51

Market capitalisation Rs. 250 billion / USD 5 billion*

Rs million

2004-05 2005-06 2006-07 2007-08 2008-09

P&L Summary

Net Sales 11,853 16,368 21,359 33,565 42,723

Gross Profit 8,619 11,492 15,592 26,344 34,154

EBITDA 4,167 4,914 6,724 15,511 18,639

Net Profit 3,962 5,733 7,843 14,869 18,177

R&D Spend 1,428 2,014 2,787 2,990 3,320

BS Summary

Shareholders Funds 11,307 15,902 27,728 49,915 NA

Loan Funds 18,230 18,745 11,144 1,436 NA

Net Fixed Assets 6,213 8,977 10,122 11,040 NA

Investments 6,485 3,541 2,543 6,565 NA

Net Current Assets 16,360 23,006 26,843 33,995 NA

Cash Flow Summary

Net Cash from Operating Activities 3,754 1,852 2,395 5,048 NA

Net Cash used in Asset Creation Activities 1,666 3,387 2,000 1,995 NA

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Financial Ratios2004-05 2005-06 2006-07 2007-08 2008-09

Growth (% )

Net Sales 25.5 38.1 30.5 57.1 27.3

Gross Profit 22.2 33.3 35.7 69.0 29.6

EBITDA 5.9 17.9 36.8 130.7 20.2

Net Profit 25.5 44.7 36.8 89.6 22.2

Margins (% )

Gross Margin 72.7 70.2 73.0 78.5 79.9

EBITDA Margin (%) 35.2 30.0 31.5 46.2 43.6

Net Margin 33.4 35.0 36.7 44.3 42.5

Return (% )

Return on Average Capital Employed 20.0 18.5 22.4 33.0 NA

Return on Average Net Worth 48.6 45.6 37.0 38.3 NA

Others

Debt / Equity 1.61 1.18 0.40 0.03 NA

Fully Diluted EPS (Rs) 20.7 27.7 38.9 71.8 87.8

R&D Spend % of Net Sales 12.0 12.3 13.0 8.9 7.8

Revenue 8.5 9.4 11.4 8.5 0.5

Capital 3.5 2.9 1.6 0.4 7.3

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Guidance for FY10

Sales to grow by 13-15%, at constant exchange rates

R&D Spend at 7-8% of Net Sales File ANDAs for 30 products Capex at Rs. 1.7 billion

Investor Presentation 24

Thank you

For updates and specific queries, please visitwww.sunpharma.com or feel free to contact

In addition to Company data, data from IMS – ORG, CMARC, Stock Exchanges and industry publications has been used for this presentation.

Uday BaldotaTel : +91 22 6645 5645, Ext 605Tel Direct : +91 22 66455605Mobile : +91 98670 10529uday.baldota@sunpharma.com

Mira DesaiTel : +91 22 6645 5645, Ext 606

Tel Direct : +91 22 66455606 Mobile : +91 98219 23797

miradesai@sunpharma.com