Investor Presentation Cadila Healthcare Ltd Investor Presentation May 2007

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 06-07 % Gr FY 05-06 % Gr Consol. Revenues $ 410 mn 25% $ 329 mn 19% Consol. PAT $ 52 mn 53% $ 34 mn 46% Market Capitalisation of ~ $ 970 mn.

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 2006-07)

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

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

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 2000-01 2006-07

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 30-35 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

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

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 2006-07 US$ 134 mn 2010E US$ 370 mn

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 8-10 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 15-20 ANDAs every year for next 2-3 years

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

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 06-07. 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

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

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 07-08. Full capacity utilisation in FY 08-09. 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.

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)

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

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

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.

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 05-06 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

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.

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 www.zyduscadila.com