PROFILE

We make speciality pharmaceuticals and active pharmaceutical ingredients. Our brands are prescribed in chronic
therapy areas like cardiology, psychiatry, neurology, gastroenterology, diabetology and respiratory and
dermatology. 

We have the same drive for growth that marked our early days. Sun Pharma came into existence as a startup with
just 5 products in 1983. In the time since, we have crossed several milestones to emerge as a  leading pharma
company in India, a rank that we have now been at for more than 5 years. (IMS-ORG Retail Store Audit, March
2006)

We have reached leadership in each of the therapy areas that we operate in, and are rated among the leading
companies by key customers. Strengthening market share and keeping this customer focus remains a high priority
area for the company.

In the post 1996 years, we have used a combination of internal growth and acquisitions to drive growth; important
mergers were those of the US, Detroit based Caraco Pharm Labsand that of the plant at Halol which is
now UKMHRA and USFDA approved.

Under a recent corporate development, the areas related to new molecular entities and drug delivery systems are
proposed to be demerged into a separate company.

HISTORY

Sun Pharma began in 1983 with just 5 products to treat psychiatry ailments. Sales were initially limited to 2 states
- West Bengal and Bihar. Sales were rolled out nationally in 1985. Products that are used in cardiology were
introduced in 1987, and Monotrate, one of the first products launched at that time has since become one of our
largest selling products. Important products in Cardiology were then added; several of these were introduced for
the first time in India.

Realizing the fact that research is a critical growth driver, we established our research center SPARC in 1993 and
this created a base of strong product and process development skills.

Sun Pharma was listed on the main stock exchanges in India in 1994; and the Rs. 55 crore issue of a Rs. 10 face
value equity share at a premium of Rs. 140/- was oversubscribed 55 times. The minimum 25% that was required
under the regulations then for listing was offered to the public, the owner family continues to hold a majority stake
in Sun Pharma. We used this money to build a greenfield site for API manufacture, as well as for acquisitions. For
the acquisitions, typically companies or assets that could be turned around and brought on track were identified.

Our first API manufacturing plant was built in Panoli in 1995, for access to high quality actives ahead of
competition, and to tap the vast international opportunity for speciality APIs.

Another API plant, our Ahmednagar plant, was acquired from the multinational Knoll Pharmaceuticals in 1996, and
upgraded for approvals from regulated markets, with substantial capacity addition over the years. This was the first
of several sensibly priced acquisitions, each of which would bring important parts to the long-term strategy.

By 1997, our headquarters were shifted to Mumbai, the commercial capital of the country. We began on the first of
our international acquisitions with an initial $7.5 million investment in Caraco Pharm Labs, Detroit. By 2000, we
had completed 8 acquisitions, each such move adding new therapy areas or offering an entry to important
international markets. A new research center was set up in Mumbai for generic product development for the US
market. In India, as new therapy areas were entered into post acquisition; customer attention, product selection
and focused marketing helped us gain a foothold in areas like orthopedics, gynecology, oncology, etc. From a
ranking at 38th in 1994, by 2000 we were ranked 5 th with a leadership in 8 of the 11 therapy areas that we are
present in. The year 2000 was the year of turnaround at the US subsidiary, Caraco, as it began to receive
approvals after successful inspection by the USFDA. In December 2004, a research center spread over 16 acres
was inaugurated by the President of India, with special lab space for drug discovery and innovation. The post 2005
years have witnessed important acquisitions to strengthen our US business- the purchase of manufacturing assets
for controlled substances in Cranbury,NJ; that of a site to make creams and lotions in Bryan, that of Alkaloida, a
Hungary based API and dosage form manufacturer , and recently, Chattem Ltd., a Tennessee-based controlled
substance API manufacturer.

FORMULATION

Our speciality product range features solid oral dosage forms (tablets, capsules), injections, nasal sprays, aerosols,
dry powder inhalers, ophthalmic preparations, creams and ointments as well as technically complex preparations
like melt tabs, liposome based products, depot preparations and time release / controlled release preparations.

Currently tableting capacity across all our plants is in excess of 10000 mill tabs/yr

The plant at Halol is spread over 65,000 sq. mt. and holds USFDA approval as well as UKMHRA approval. It has
manufacturing lines for a large number of dosage forms (sterile dry powder injections, small volume injections,
tablets, capsules, aerosols, liposomal and depot preparations, ointments). A new injectable plant with 7
manufacturing lines, spread over 36,000 sq. ft has recently been added. Of particular interest is an oral solid
dosage form area that is USFDA approved, and a large injectable and nasal spray area that recently received
USFDA approval. These areas are used for our filings for the US generic market. This plant recently received
approvals from the South African MCC, the Columbian regulatory agency INVIMA and the Brazilian agency ANVISA.

A state-of- the art formulation plant in Dhaka makes formulations for this important market. Our internationally
approved plant in India, and our increasing US presence with recently acquired plants in New Jersey and Ohio take
our manufacturing skills to a global platform.

The factories at Dadra, Jammu and Silvassa are equipped to manufacture solid oral finished dosages to
international regulatory requirements. These facilities comply with cGMP, WHO standards and are approved by local
FDA with excellent regulatory compliance records. Currently these plants meet requirements for the market in
India, as well as select international markets. For instance, the Silvassa plant is approved for a number of markets
including Tanzania and Peru.

Our plant in Halol holds approvals for tablets, nasal spray and injectables from the USFDA in additon to a number
of regulated market approvals from the UK MHRA, South African MCC, etc. This plant can make a number of
formulations in a vast, worldclass site, with international systems and procedures.

QUALITY POLICY

We have put in place the infrastructure and procedures to support a stringent quality policy. All our systems are
well documented and are implemented by an expert trained staff with a line of reporting that is independent of
manufacturing.

We are committed to ensure that every product we manufacture and distribute meets with and conforms over its
shelf life to internationally accepted standards of quality, purity, efficacy and safety.

At each manufacturing site, the latest analytical instruments and tightly monitored quality assurance and quality
control systems ensures consistent quality of our products.

The quality team at each manufacturing site is guided by a Corporate Quality Unit (CQU). This CQU has members
from quality assurance, quality engineering, quality control, and regulatory affairs. CQU regularly updates location-
based quality representatives on new regulatory practices and monitors the quality of documentation in order to
comply with changing international requirements.

ENVIRONMENTAL POLICY
Manufacturing: Consistently producing to the world's requirements.

Concern for the environment and safety.

Each of our manufacturing sites is fully equipped with facilities to handle waste and minimize environmental
contamination. At Sun Pharma, a concern for safety and the environment is part of our plans right from the
drawing board. We pay close attention to preventing and reducing pollution, avoiding accidents and conserving
resources.

LOOKING AHEAD

Over the last few years, we have been moving towards a profile that is much more international and formulation-
driven.

The Sun Pharma of tomorrow will have brands registered in major markets of the world, and in most markets,
promoted by a high quality field force. In India, we expect to retain our position of market leadership in our key
therapy areas, and reach leadership in newer therapy areas that we entered after 1997. In key international
markets across Asia, South East Asia, Russia, China, the Middle East, Latam and Africa we would be a strong
speciality company with prescription driven sales. With a strong network and established company equity, we
would be an excellent partner for a company seeking to license out products across markets.

In the high value generic markets of the US we expect to become a respected generic company, with a portfolio
comprising both of complex and simple-to-file generics, building an edge with technology and the cost advantage
of vertical integration. While we have recently completed our fourth acquisition in the US, we believe there are
excellent opportunities in the US generic space, where we can affect a turnaround and add value to a business. We
have about $400 million earmarked for acquisitions in the US generic/drug discovery space.
Company's Philosophy on Code of Corporate Governance

Sun Pharma's philosophy on corporate governance envisages working towards high levels of transparency,
accountability, consistent value systems, delegation across all facets of its operations leading to sharply focused
and operationally efficient growth. The company tries to work by these principles in all its interactions with
stakeholders, including shareholders, employees, customers, suppliers and statutory authorities.

Sun Pharma is committed to learn and adopt the best practices of corporate governance.