Creating Lasting Value Investor Presentation- May 2011

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.

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

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

Creating Lasting Value - Investor Presentation 5 Revenue Composition India Branded Generics 5 Year CAGR 22% US Generics 5 Year CAGR 33% APIs 5 Year CAGR 19% International Branded Generics (ex-US) 5 Year CAGR 43% Finished Dosage sales 87% 5 year CAGR 27% International sales 53% 5 year CAGR 34% Annual sales : Rs 39,815 million 5 Year CAGR 26%

Creating Lasting Value - Investor Presentation 6 Proforma Revenue Composition (with Taro) Proforma Annual sales : $ 1.27 billion 44% 32% 10% 14% International Formulation (ex-US) APIs India Branded Generics US Generics

Creating Lasting Value - Investor Presentation 7 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 6 Key operating subsidiaries 10,000+ Employees Invested Rs. 20 billion in Research More than 60% of sales from international markets (including Taro) Sun Pharma Today ‘83 ‘11 23 Manufacturing facilities in 4 Continents PART OF 2010 Acquired Taro 2011 JV for Emerging Markets

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

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

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) 11,853 3, , ,000

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 Net Margin 34% -30% -20% -10% 0% 10% 20% 30% 40% 50% EBITDA Margin 31% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% Gross Margin 73% 40% 50% 60% 70% 80% 90%

Creating Lasting Value - Investor Presentation 12 Successful At Acquisitions Acquired 16 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, Early Acquisitions

Creating Lasting Value - Investor Presentation 13 Key Acquisitions & Rationale YearAcquisitionCountryRationale 2010 Acquired Taro Pharmaceutical Industries Ltd. Israel Dermatology & Topical Product Manufacturing Plant at Israel & Canada 2009 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)

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

Creating Lasting Value - Investor Presentation 15 India Branded Generics : Strong Base Market Share : 4.4%* Leadership in chronic segment; Top 3 in over 50% of more than 500 brands Neuro-Psychiatry 27% Cardiology 19% Diabetology 11% Gastroenterology 14% Gynecology & Urology - 7% Musculo-Skeletal & Pain - 5% Antiasthamatic & Antiallergic - 5% Opthalmology - 4% Others 8% Therapywise Break-up * As per AWACS

Creating Lasting Value - Investor Presentation 16 Relentless Customer Focus 1999 Market Share indexed to 100 for all companies Therapy focused marketing 2,600+ sales representatives covering 130,000 specialist doctors Strong increase in prescription and sales market share

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

Creating Lasting Value - Investor Presentation 18 Preferred Choice of Doctors Our Top 10 Brands Leadership in key therapeutic areas* SpecialistOct '04Oct ‘10 Psychiatrists11 Neurologists11 Cardiologists31 Orthopaedic31 Ophthalmologists21 Gastroenterologists11 Diabetologists32 Nephrologists52 Consulting Physicians63 Chest Physicians64 Gynaecologists106 Urologists88 Oncologists99 ENT Specialists720 Brand NameTherapy area Pantocid Proton pump inhibitor/ antiulcerant Glucored GroupOral antidiabetic SustenWomen's healthcare Aztor CVS, cholesterol reducing agent Pantocid-D Proton pump inhibitor/ antiulcerant GemerOral antidiabetic StrocitCNS, stroke Repace GroupCVS, Hypertension Encorate chrono CNS, epilepsy ClopiletCVS, anticlotting agent *Ranks based on prescription share

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-10 Taro Pharmaceutical Industries Ltd. The 66% owned subsidiary of Sun Pharma Endocine, 1 Gastro, 1 Respiratory, 1 Urology, 2 Other, 2 Antibiotic, 3 Cough / Cold, 6 Metabolism, 7 Oncology, 12 Allergy, 13 Pain, 15 CVS, 20 CNS, 49 Skin, 88

Creating Lasting Value - Investor Presentation 20 ANDA Pipeline : Significant ramp up Products Filed and Approved Status As of Dec 10, ANDAs for 149 products await approval (including 20 tentative approvals)‏ 92 Products pending (with 12 tentative approval)‏ Sun Pharma 29 Products pending (with 4 tentative approval) Caraco Taro 28 Products pending (with 4 tentative approval) ( Taro numbers added for Dec 2010) Mar-05Mar-06Mar-07Mar-08Mar-09Mar-10Dec-10 Cumulative Products Filed Cumulative Products Approved

Creating Lasting Value - Investor Presentation 21 US Generics Valproic Acid Soln Levetiracetam Injection Lithium Carbonate Tablets Tamsulosin HCl Capsules Venlafaxine HCL Tablets Diltiazem HCL ER Capsule Galantamine HCL ER capsule 13 ANDA Approvals in last 1 year Bupropion HCL ER Tablets Alprazolam Tablets USP Azelastine HCL Ophthalmic Solution Atomoxetine HCL Capsules Desloratidine Tablets Galantamine HCL ER Capsules

Creating Lasting Value - Investor Presentation 22 Caraco Update Though Company has made significant progress towards regaining FDA compliance Caraco estimates that it will not be in a position to commence manufacturing of first two products in near term as indicated earlier Caraco Announces Merger Agreement with Sun Pharma; Public Shareholders to Receive $5.25 Cash per Share

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 An API and Finished Dosage manufacturing site in Hungary with controlled substance capacity Focus Countries

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 41 countries 600 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

Creating Lasting Value - Investor Presentation 25 Leveraging through Partnerships Sun Pharma and Merck establish Joint Venture for Emerging Markets JV to bring new combinations and formulations of incrementally innovative, branded generics. Use SPARC Proprietary Delivery Technologies Equally representation in JV for Sun Pharma & Merck JV to use partners infrastructure for development, manufacturing, regulatory and commercialization.

Creating Lasting Value - Investor Presentation 26 Speciality API High Margin Regulated Markets Business largely with end users in regulated markets Over 160 speciality APIs across 8 plants Strong regulatory capability 201 DMF / CEP filed 123 approved (Including Taro)

Creating Lasting Value - Investor Presentation 27 Strong Regulatory Capability International level quality processes and documentation

Creating Lasting Value - Investor Presentation 28 Integrated product dev and manufacturing network 28 Vertically integrated network across four continents enabling high quality, low cost and a quick market entry across the geographies Halol Ankleshwar Panoli Dadra Silvassa Karkhadi Bangladesh Plant Ahmednagar Maduranthakam Sikkim Plant Jammu Tiszavasvari (Hungary) Goiânia (Brazil) Iztapalapa (Mexico) Israel API and FormulationsAPIFormulations Global networked facilities are FDA, EMEA, TGA approved Ontario (Canada) Cranbury Bryan Tennessee Detroit Taro PharmaceuticalsSun Pharma

Creating Lasting Value - Investor Presentation 29 Finished Dosage Manufacturing 15 Manufacturing sites worldwide India : 6, US : 3, Canada : 1 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

Creating Lasting Value - Investor Presentation 30 API Manufacturing 8 World class locations with all sites ISO 14001, ISO 9002 approved India : 5, Israel : 1, US : 1, Hungary : 1 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

Creating Lasting Value - Investor Presentation 31 Agenda Revenue Composition 1 Strategy & Approach History & Profile Growth Key Acquisitions Business Operations Geographies API, Finished Dosage & Manufacturing Research & Development Management & Governance Financials

Creating Lasting Value - Investor Presentation 32 Research and Development Generic R&D spend around 6% of net sales Strong research teams in generics, finished dosage development, biological support, chemistry 4 R&D centers with about 800 scientists Mumbai Balancing the risk Medium term Drug delivery systems Immediate term ANDA, DMF, Products for India Baroda

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

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.

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

Creating Lasting Value - Investor Presentation 36 Shareholding Pattern as on Dec 31, 2010 Rs 1,000 Invested in the 1994 IPO is currently worth more than Rs. 187,747 Earned dividend of Rs. 5,000 Mutual Funds 3% Promoter and promoter group 64% Bodies Corporate 5% Individuals and Others 5% Financial Inst / Banks 4% FIIs / Foreign Banks 19%

Creating Lasting Value - Investor Presentation 37 Financials Market Capitalisation Rs. 457 billion / USD billion* Figures in Rs million *Exchange Rate : 1 USD = Rs 44.65

Creating Lasting Value - Investor Presentation 38 Financial Ratios

Creating Lasting Value - Investor Presentation 39 Key Financials Q3 FY11

Creating Lasting Value - Investor Presentation 40 For updates and specific queries, please visit or feel free to contact Uday Baldota Tel : , Ext 605 Tel Direct : Mobile : Mira Desai Tel : , Ext 606 Tel Direct : Mobile : © 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.