1. Sun Pharmaceutical Industries Limited Corporate Office: Acme Plaza, Andheri Kurla Road, Andheri (E), Mumbai - 400 059. Tel: 91-22-66969696 ▪ Fax: 91-22- 28212010 ▪ www.sunpharma.com Creating Lasting Value Investor Presentation – May 2010

2. Creating Lasting Value - 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.

3. Creating Lasting Value - Investor Presentation 3 Agenda Revenue Composition 1 Strategy & Approach History & Profile Growth Key Acquisitions Business Operations Geographies API, Finished Dosage & Manufacturing Research & Development Management & Governance Financials 2 3 4 5

4. Creating Lasting Value - Investor Presentation 4 Agenda Revenue Composition 1 Strategy & Approach History & Profile Growth Key Acquisitions Business Operations Geographies API, Finished Dosage & Manufacturing Research & Development Management & Governance Financials 2 3 4 5

5. Creating Lasting Value - Investor Presentation 5 Revenue Composition 45% 35%9% 11% India Branded Generics 5 Year CAGR 25% US Generics 5 Year CAGR 47% APIs 5 Year CAGR 20% International Branded Generics (ex-US) 5 Year CAGR 42% Finished Dosage sales 89% 5 year CAGR 34% International sales 53% 5 year CAGR 43% 2008-09 Annual sales : Rs 43,751 million 5 Year CAGR 32%

6. Creating Lasting Value - Investor Presentation 6 Creating Value, Continuously… 1983 Began with 5 products 1993 First Research Centre SPARC, Baroda 1994 IPO - Rs. 550 Mn raised 1995 First API Plant Panoli 1997 $7.5Mn invested in Caraco 2004 USD 350mn FCCB raised 2007 Demerger of innovative R&D to SPARC The performance continues 2010 5 Key operating subsidiaries 8,000+ Employees Invested Rs. 17 billion in Research 19 Manufacturing facilities in 4 Continents More than 50% of sales from international markets PART OF Sun Pharma Today ‘83‘10

7. Creating Lasting Value - Investor Presentation 7 Key Operating Subsidiaries Caraco Pharmaceutical Laboratories Develops, manufactures, market and distributes generic and private label pharmaceuticals and markets them throughout the United States. Chattem Chemicals, Inc. Narcotic raw material importer and manufacturer of controlled substances with a facility in Tennessee, US Sun Pharmaceutical Industries Limited Sun Pharmaceutical (Bangladesh) Owns and operates a pharmaceutical factory and makes pharmaceutical products that are sold in the local market. Sun Pharmaceutical Industries, Inc. (SPI) US based wholly owned subsidiary of Sun Pharmaceutical Industries Limited, India. Alkaloida Chemical Co. Exclusive Group Ltd ICN Hungary acquired in 2005, now renamed; one of the few units worldwide, authorized to make controlled substances

8. Creating Lasting Value - Investor Presentation 8 Agenda Revenue Composition 1 Strategy & Approach History & Profile Growth Key Acquisitions Business Operations Geographies API, Finished Dosage & Manufacturing Research & Development Management & Governance Financials 2 3 4 5

9. Creating Lasting Value - Investor Presentation 9 Strategy and Approach Create sustainable revenue streams Focus: Chronic therapies Differentiation: Technically complex products Speed to market Seek cost leadership Vertical integration : Development through Manufacturing (API and Finished Dosage) to Marketing Optimize operational costs Balance profitability and investments for future Acquisitions yielding high ROI Development of complex generics

10. Creating Lasting Value - Investor Presentation 10 Growing Steadily Consistent top-line and bottom-line growth; continuing the trend despite increasing size Net Sales Net Profit (Figures in Rs million)

11. Creating Lasting Value - Investor Presentation 11 Sustained Profitability Superior business model Margins consistently higher than peers* Sun Pharma Range of other Top 10 Pharma Cos. Average 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

12. Creating Lasting Value - Investor Presentation 12 Successful At Acquisitions Acquired 14 high potential yet under-performing businesses*; successful turnarounds Net Sales (MINR)Operating Margin(%)Operating Profit (MINR) 0 2,000 4,000 6,000 8,000 10,000 95-9696-9797-9898-9999-0000-0101-0202-0303-04 0 9 18 27 36 45 8 Early Acquisitions

13. Creating Lasting Value - Investor Presentation 13 Key Acquisitions & Rationale YearAcquisitionCountryRationale 2008 Caraco acquired some products of Forest ’ s Inwood business USIncreased generic product offerings 2008Acquired Chattem Chemicals, Inc.Tennessee, US Import registration with DEA, API Plant approved by DEA in Tennessee, US 2005Assets of Able labsNew Jersey, USDosage form plant (NJ, US) and IP 2005Formulation plant in BryanOhio, USDosage form plant (Ohio, US) 2005Acquired ICN HungaryHungaryAPI and dosage form plant (Hungary) 2004Womens Health BrandsUSBrands in womens health (US) 2004Merged Phlox PharmaBaroda, IndiaAPI Plant 2000 Merged Pradeep Drug Company Ltd (PDCL) Chennai, IndiaAPI Plant 1999Merged Milmet LabsIndiaOphthalmology brands 1998Brands from NatcoIndiaRespiratory brands 1997Acquired CaracoDetroit, USDosage form Plant 1997 Merged Tamilnadu Dadha Pharmaceuticals Ltd (TDPL) Chennai, India Gynecology and oncology brands; API and dosage form plant 1996Acquired MJ PharmaHalol, IndiaDosage form plant (now USFDA approved) 1996Acquired Gujarat LykaAnkleshwar, IndiaAPI plant 1996Bulk Drug plant from Knoll PharmaAhmednagar, IndiaAPI plant (now USFDA approved)

14. Creating Lasting Value - Investor Presentation 14 Agenda Revenue Composition 1 Strategy & Approach History & Profile Growth Key Acquisitions Business Operations Geographies API, Finished Dosage & Manufacturing Research & Development Management & Governance Financials 2 3 4 5

15. Creating Lasting Value - Investor Presentation 15 India Branded Generics : Strong Base Market Share – 3.7% Leadership in chronic segment; Top 3 in over 50% of more than 500 brands Neuro-Psychiatry 29% Cardiology 20% Diabetology 11% Gastroenterology 11% Gynaecology & Urology - 7% Musculo-Skeletal & Pain - 4% Antiasthamatic & Antiallergic – 4% Ophthalmology - 4% Others 10% Therapywise Break-up

16. Creating Lasting Value - Investor Presentation 16 Relentless Customer Focus 1998 Market Share indexed to 100 for all companies Therapy focused marketing 2,500+ sales representatives covering 130,000 specialist doctors Strong increase in prescription and sales market share

17. Creating Lasting Value - Investor Presentation 17 Therapy Focused Marketing Delivering promotional message to specialty customers. Cardiology, Diabetology Gastroenterology, Orthopedics Oncology Rheumatology, Dermatology Asthma, COPD Interventional Cardiology Fertility, Gynecology, Urology Psychiatry, Neurology Gynecology Ophthalmology

18. Creating Lasting Value - Investor Presentation 18 Preferred Choice of Doctors Our Top 10 Brands Leadership in key therapeutic areas* SpecialistOct '04Oct '09 Psychiatrists11 Neurologists11 Cardiologists31 Orthopaedic31 Ophthalmologists21 Gastroenterologists12 Diabetologists32 Chest Physicians64 Nephrologists54 Consulting Physicians64 Gynaecologists104 Oncologists96 Urologists88 ENT Specialists716 Brand NameTherapy area GlucoredOral antidiabetic Pantocid Proton pump inhibitor/ antiulcerant SustenWomen's healthcare Aztor CVS, cholesterol reducing agent Pantocid-D Proton pump imhibitor/ antiulcerant StrocitCNS, stroke RepaceCVS, Hypertension GemerOral antidiabetic Encorate chrono CNS, epilepsy Repace HCVS, Hypertension *Ranks based on prescription share

19. Creating Lasting Value - Investor Presentation 19 US Generics Integrated generic manufacturer with flexibility for manufacture onshore / offshore The 76% owned US generics subsidiary, markets own and Sun Pharma ANDAs Sun Pharmaceutical Industries, Inc. (SPI) Caraco Pharmaceutical Laboratories Ltd. A wholly owned subsidiary of Sun Pharma in US Approvals Therapy wise summary As on Dec-09

20. Creating Lasting Value - Investor Presentation 20 ANDA Pipeline : Significant ramp up Products Filed and Approved Status As of Dec 09, ANDAs for 108 products await approval (including 12 tentative approvals)‏ 81 Products pending (with 8 tentative approval)‏ Sun Pharma 27 Products pending (with 4 tentative approval) Caraco

21. Creating Lasting Value - Investor Presentation 21 US Generics Bicalutamide Tablets Caffeine Citrate Injection Caffeine Citrate Oral Solution Carbidopa Levodopa OD Tablets Cetrizine HCl Syrup (R X ) Ergocalciferol Capsule Ketorolac Tromethamine Opthalmic Prometh Syrup 16 ANDA Approvals in last 1 year Nicardipine HCl Injection Oxaliplatin for Injection Oxycodone HCl Tabs Promethazine HCl Oral Solution Quinapril Tablets USP Sumatriptan Succinate Tablets Vecuronium Bromide for Injection Wellbutrin SR Tablets

22. Creating Lasting Value - Investor Presentation 22 Caraco Update In Oct 2009, Caraco submitted a work plan to FDA for remedial actions Additional details and clarifications submitted on January 14, 2010 In 2QFY10, Caraco reduced its workforce by 430 employees for an indefinite period to align its expenses with the cessation of its manufacturing operations Has recalled some of these employees in its efforts to restart manufacturing activities Caraco has transferred certain of its owned products to additional alternate manufacturing sites; would allow it regain revenues from those products

23. Creating Lasting Value - Investor Presentation 23 Europe Generic Markets Plan to enter key markets Working on complex generic products, including injectables Filings from Indian site Acquired an API and Finished Dosage manufacturing company in Hungary with controlled substance capacity Focus Countries

24. Creating Lasting Value - Investor Presentation 24 International Branded Generic Markets Less Regulated Markets Product basket width and technology based products as growth drivers Replicating the speciality template 40 countries 450 strong local sales force promotes brands to doctors CIS Countries China Sri Lanka Map Not to Scale Mexico South Africa Other Markets Focus Markets Brazil Myanmar

25. Creating Lasting Value - Investor Presentation 25 Speciality API High Margin Regulated Markets Business largely with end users in regulated markets Over 160 speciality APIs across 8 plants Strong regulatory capability 148 DMF / CEP filed 84 approved

26. Creating Lasting Value - Investor Presentation 26 Strong Regulatory Capability International level quality processes and documentation

27. Creating Lasting Value - Investor Presentation 27 Manufacturing Locations Plants across four continents enables us to compete with a tight handle on cost and time to market across the geographies Jammu Ahmednagar Maduranthakam Bangladesh Plant Sikkim Plant Americas Cranbury Detroit Bryan Tennessee Goiânia (Brazil) Iztapalapa (Mexico) Tiszavasvari (Hungary) Europe API and FormulationsAPIFormulations Halol Ankleshwar Panoli Dadra Silvassa Karkhadi India

28. Creating Lasting Value - Investor Presentation 28 Finished Dosage Manufacturing 13 Manufacturing sites worldwide India : 6, US : 3 Over 750,000 sq. ft. area Capacities available for a variety of finished dosage Tablets / Capsules Semisolids Liquids Suppository Injectables / Sterile VialsDry powder AmpoulesEye drops Pre-filled SyringesMDI GelsAerosols Lyophilized Units

29. Creating Lasting Value - Investor Presentation 29 API Manufacturing 8 World class locations with all sites ISO 14001, ISO 9002 approved India : 6, US : 1, Hungary : 1 Reactor capacity 1200 KL with over 650,000 sq ft area Over 25 API processes scaled up annually API Key Plants Panoli & Ahmednagar (both India)‏ International regulatory approvals: USFDA, European Stand alone units for peptides, anti-cancer, steroids, sex hormones Hungary & Tennessee (US) Controlled substances manufacture

30. Creating Lasting Value - Investor Presentation 30 Agenda Revenue Composition 1 Strategy & Approach History & Profile Growth Key Acquisitions Business Operations Geographies API, Finished Dosage & Manufacturing Research & Development Management & Governance Financials 2 3 4 5

31. Creating Lasting Value - Investor Presentation 31 Research and Development Generic R&D spend around 8% of net sales Strong research teams in generics, finished dosage development, biological support, chemistry 2 R&D centers with about 600 scientists Mumbai Balancing the risk Medium term Drug delivery systems Immediate term ANDA, DMF, Products for India Baroda

32. Creating Lasting Value - Investor Presentation 32 Pharmacokinetics Clinical Research Analytical Method Development Formulation Development Organic Synthesis State of the art research Labs R&D Infrastructure Baroda 16 acre campus with nearly 330,000 sq. ft research area Mumbai 50,000 Sq. ft research campus Develops Dosage forms and generics for US, Europe World-class equipment for instrumental, chemical and microbiological analysis; Equipment include: NMR, XRD, LC-MS/MS, HPLCs etc.

33. Creating Lasting Value - Investor Presentation 33 Agenda Revenue Composition 1 Strategy & Approach History & Profile Growth Key Acquisitions Business Operations Geographies API, Finished Dosage & Manufacturing Research & Development Management & Governance Financials 2 3 4 5

34. Creating Lasting Value - Investor Presentation 34 Corporate Governance Our philosophy on corporate governance envisages working towards high levels of transparency, accountability and consistent value systems across all facets of operations Committee chaired by Keki Mistry comprises Hasmukh Shah and S. Mohanchand Dadha Audit Committee Eminent Independent Directors Hasmukh Shah Chairman Gujarat Gas Former Chairman and Managing Director, IPCL Keki Mistry Vice Chairman and CEO, HDFC S. Mohanchand Dadha Former Chairman & Managing Director, TDPL Ashwin Dani Vice Chairman and Managing Director, Asian Paints Ltd.

35. Creating Lasting Value - Investor Presentation 35 Agenda Revenue Composition 1 Strategy & Approach History & Profile Growth Key Acquisitions Business Operations Geographies API, Finished Dosage & Manufacturing Research & Development Management & Governance Financials 2 3 4 5

36. Creating Lasting Value - Investor Presentation 36 Shareholding Pattern as on Dec 31, 2009 Rs 1,000 Invested in the 1994 IPO is currently worth more than Rs. 125,696 Earned dividend of Rs. 4,000 Mutual Funds 3% Promoter and promoter group 64% Bodies Corporate 5% Individuals and Others 6% Financial Inst / Banks 3% FIIs / Foreign Banks 19%

37. Creating Lasting Value - Investor Presentation 37 Financials Market capitalisation Rs. 325 billion / USD 7.3 billion* 2004-052005-062006-072007-082008-09 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 Fully Diluted EPS (Rs.) 20.727.738.971.887.8 BS Summary Shareholders Funds 11,307 15,902 27,728 49,915 70,449 Loan Funds 18,230 18,745 11,144 1,436 1,789 Net Fixed Assets 6,213 8,977 10,122 11,040 16,196 Investments 6,485 3,541 2,543 7,560 18,595 Cash and Bank Balances11,80915,32413,80212,389 16,690 Inventories3,1735,1176,6457,723 9,757 Sundry Debtors2,5113,6096,78914,177 8,811 Sundry Creditors1,0631,1109682,393 2,543 Cash Flow Summary Net Cash from Operating Activities 3,754 1,852 2,395 5,048 21,651 Net Cash used in Asset Creation Activities 1,666 3,387 2,000 1,9955,900 Figures in Rs million *Exchange Rate : 1 USD = Rs 44.44

38. Creating Lasting Value - Investor Presentation 38 Financial Ratios 2004-052005-062006-072007-082008-09 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 20.1 18.7 22.7 35.5 31.5 Return on Average Net Worth 48.6 45.6 37.0 38.330.2 Others Debt / Equity 1.61 1.18 0.40 0.03 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 7.3 Capital 3.5 2.9 1.6 0.4 0.5

39. Creating Lasting Value - Investor Presentation 39 Q3 and 9m FY10 Update Figures in Rs million

40. Creating Lasting Value - Investor Presentation 40 Taro Update Latest Background Taro sent Sun Pharma a notice for purported termination of the merger agreement claiming a dramatic turnaround Sun Pharma’s cash injections of approx. $60 million last year was a major factor, otherwise Taro would have virtually negative cash 75% of Taro shareholders who are not identified with either Levitt family or Sun objected to the continued control of the Company by the Levitt family and its representatives on the Board in the 31 Dec 2009 AGM Despite this, the entire Board was re-elected on account of the voting majority of the Levitts Shareholders voted decisively against the election of Taro’s external director

41. Creating Lasting Value - Investor Presentation 41 For updates and specific queries, please visit www.sunpharma.com or feel free to contact Uday Baldota Tel : +91 22 6645 5645, Ext 605 Tel Direct : +91 22 66455605 Mobile : +91 98670 10529 uday.baldota@sunpharma.com Mira Desai Tel : +91 22 6645 5645, Ext 606 Tel Direct : +91 22 66455606 Mobile : +91 98219 23797 mira.desai@sunpharma.com © 2010 Sun Pharmaceutical Industries Limited., All Rights Reserved. “SUN Pharma”, The Sun Pharmaceutical Industries Logo are trademarks of Sun Pharmaceutical Industries Limited. In addition to Company data, data from IMS – ORG, CMARC, Stock Exchanges and industry publications has been used for this presentation. This material was used during an oral presentation; it is not a complete record of the discussion. This work may not be used, sold, transferred, adapted, abridged, copied or reproduced in whole on or in part in any manner or form or in any media without the prior written consent. All product names and company names and logos mentioned herein are the trademarks or registered trademarks of their respective owners.