1. Dr. Reddy’s Investor Presentation
Novemeber 2010

2. Safe Harbor Statement
This presentation contains forward-looking statements and information that involve risks, uncertainties and
assumptions. Forward-looking statements are all statements that concern
plans, objectives, goals, strategies, future events or performance and underlying assumptions and other
statements that are other than statements of historical fact, including, but not limited to, those that are identified
by the use of words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,”
“projects” and similar expressions. Risks and uncertainties that could affect us include, without limitation:
 General economic and business conditions in India;
 The ability to successfully implement our strategy, our research and development efforts, growth and
expansion plans and technological changes;
 Changes in the value of the Rupee and other currency changes;
 Changes in the Indian and international interest rates;
 Allocations of funds by the Government;
 Changes in laws and regulations that apply to our customers, suppliers, and the pharmaceutical industry;
 Increasing competition in and the conditions of our customers, suppliers and the pharmaceutical industry; and
 Changes in political conditions in India.
Should one or more of such risks and uncertainties materialize, or should any underlying assumption prove
incorrect, actual outcomes may vary materially from those indicated in the applicable forward-looking
statements. Any forward-looking statement or information contained in this presentation speaks only as of the
date of the statement.
We are not required to update any such statement or information to either reflect events or circumstances that
occur after the date the statement or information is made or to account for unanticipated events.
1

3.  Overview
 Global Generics
 Pharmaceutical Services and Active Ingredients
 Proprietary Products
 Looking Ahead
2

4. Purpose:
Providing affordable and innovative medicines for healthier lives.
Strategy:
Leverage industry-leading science & technology, product offering and
customer service with execution excellence.
3

5.  Global pharmaceutical company focused on active pharmaceutical
ingredients & custom services, generics and proprietary products.
 Amongst the largest Indian pharmaceutical companies  Revenues of U.S.
$1.56 bn in FY2010 with a CAGR of ~ 25% over the last decade.
 Strong vertically integrated portfolio of businesses, geographies &
products.
Overview
4

6. 183
234
338 380
463 447
546
1,510
1,250
1,365
1,563
FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10
Revenues [USD Mn]
 Germany & Mexico
acquisitions
 Authorized generic
launches
Built the foundations for a strong business. Moved up the value chain. Strengthened
capabilities. Achieved scale and global presence. Growth aided by acquisitions.
The Last Decade
All figures converted at respective year’s USD to INR convenience translation rate.
5

7. Integrated Business Model
Pharmaceutical
Services & Active
Ingredients
• FY10 Revenue mix 1/3rd
of total
• Amongst the leaders in
supply of generic APIs
globally
• Customers include
generic
manufacturers, innovator
companies
Global Generics
• FY10 Revenue mix 2/3rd
of total
• Finished dosage
businesses in
distribution-driven as well
as doctor-driven markets
• Strategic ‘focus’ on key
large markets  North
America, India, Russia /
CIS, Germany
Proprietary
Products
• Focus on building
sustainable and profitable
branded innovative
business
• Efforts in new drug
discovery, differentiated
formulations & biosimilars
6

8. Our Strengths
 Industry leading chemistry skills which has resulted in several niche product
opportunities (eg: fondaparinux, fexofenadine-pseudoephedrine, omeprazole mg)
 High vertical integration (~75% of APIs sourced internally), global leader in DMF filings
(394 global DMFs as of Sep 2010)
 Critical mass of base business in key growing markets
(India, Russia & CIS, North America, Europe)
 Maximizing value opportunities through large partnerships (GSK Alliance) and
successful history of monetizing IP
 Emerging biosimilars play
7

9.  API manufacturing : India – 6, Mexico – 1, UK – 1. All USFDA approved
 Finished Dosages : India – 6 out of which 2 USFDA approved
manufacturing US – 1 approved by USFDA
 Biologics Facility : India - 1, audited by multiple regulatory agencies
 Custom Pharma : 3 Technology Development Centers – 2 in India & 1 in
Services Cambridge, UK
 R&D Centers : State-of-the-art Integrated Product Development
Organisation [IPDO] facility,
NCE facility in Hyderabad, India
Aurigene facility in Bangalore
8
Infrastructure

10. Business Priorities
Create compelling value
for customers by
leveraging IP, technology
and cost leadership
Improve depth in key
markets through portfolio
expansion and supply
chain excellence
Calibrate investments to
create a self sustainable
model
Partner of Choice Leadership position
in key markets
Viable Proprietary
Products business
Global Generics
Pharmaceutical
Services & Active
Ingredients
Proprietary
Products
9

11. Financial Targets  FY13
Revenues
$3 bn
RoCE
25%
10

12. 11
Recent Performance  Results H1 FY11
• 73 new launches
• 47 generics filings
& 16 DMFs
• $111 mn
• 14% to sales
• $172 mn
• 22% to sales
• $797 mn
Revenue EBITDA
Launches
& FilingsPAT
All figures converted in USD at convenience translation rate as of Sep 10

13. 12
Key Balance Sheet Items
Cash & Cash Equivalents
Inventory & Receivables
Property, plant & equipment
Goodwill & Intangibles
Loans & borrowings (current & non current)
Equity & Reserves
Sep 2010 Jun 2010
139 143
631 611
570 537
303 298
325 311
1,015 1,009
$ mn
o Net Debt – Equity ratio as of Sep 10  0.18
o Capital expenditure for H1 FY11  $91 mn
o Current Cash flow hedge options of ~ $621 mn [range of Rs 47 to 49]
All figures converted in USD at convenience translation rate as of Sep 10

14.  Dr. Reddy’s Overview
 Global Generics
 Pharmaceutical Services and Active Ingredients
 Proprietary Products
 Looking Ahead
13

15. Global
Generics
Generics
North
America
Germany UK
Branded
Generics
India Russia
GSK
Alliance
CIS,Venezuela,
Romania & ANZ
Global Generics
Geographically well diversified with mix of generics and branded generics
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Key Priorities:
 Deepening market presence
 Differentiated product portfolio
 Supply chain excellence

16. FY06 FY07 FY08 FY09 FY10
37
109
199
272
301
Revenue ($ Mn)
Excluding upside revenues
Global Generics – Regulated Markets
North America
• 15 products ranked among Top 3 in market
shares
• 74 pending ANDAs // 39 P IVs // 12 FTFs
• H1 FY11 Sales - $180 mn
FY07 FY08 FY09 FY10
172 178 182
144
Revenue (Euro Mn)
Europe
• H1 FY11 Sales – Euro 72 mn
• Germany  Significant reduction of SG&A
and vertical integration of products to help
participate in future tenders more effectively
All figures converted at respective years’ convenience translation rate
Upside
Revenues  $400 mn $140 mn $55 mn

17. Opportunities Product Name FY09 FY10 FY11 FY12 FY13 FY14 FY15
180 days
Exclusivity
(Product A) X
(Product B) X
(Product C) X
Settlements
/ Go early
Sumatriptan X
Rivastigmine X
Desloratadine
(5mg / ODT / Pseudoephedrine)
X
Finasteride 1 mg X
Amlodipine Benazepril X
Fenofibrate Capsule (43 / 130 mg) Launch date not disclosed
Limited
Competition /
Difficult to make
Omeprazole Mg OTC X
Tacrolimus X
Fondaparinux X
Fexofenadine Pseudoephedrine X
Zafirlukast X
Lansoprazole X
North America: Growing annuity of opportunities
16

18. Global Generics
Continued strong growth in Branded Markets
FY06 FY07 FY08 FY09 FY10
133
155
179 189
226
Revenue ($ Mn)
India
• Top 10 brands ranked among Top 2 in
market shares
• Portfolio of > 200 brands
• H1 FY11 Sales - $129 mn
FY06 FY07 FY08 FY09 FY10
60
79
101
125
152
Revenue ($ Mn) Russia
• Top 4 products ranked #1 in market shares
• Increasing portfolio of Rx & OTC products
• H1 FY11 Sales - $94 mn
All figures converted at respective years’ convenience translation rate

19.  Dr. Reddy’s Overview
 Global Generics
 Pharmaceutical Services and Active Ingredients
 Proprietary Products
 Looking Ahead
18

20. FY06 FY07 FY08 FY09 FY10
216
407 413 408 430
Revenue ($ Mn)
Pharmaceutical Services & Active Ingredients
 Stable business catering to both internal & external customers
 Internal sourcing of API for generics  > 75%
 Strong portfolio of API resulting in higher market shares for vertically
integrated generics
 DMF filings  394 of which 215 in North America
Note : All figures converted at the respective years’ average USD to INR translation rates

21.  Dr. Reddy’s Overview
 Global Generics
 Pharmaceutical Services and Active Ingredients
 Proprietary Products
 Looking Ahead
20

22. Proprietary Products: Biologics
Built product development and manufacturing capabilities with a focus on becoming a leading integrated
global player in generic biologics.
Product Portfolio: Strategic focus on 2nd wave biologics
 Products are complex glycosylated proteins requiring specialized competence in development and
manufacturing.
 Global brand sales of development portfolio ~ $40+ bn
• Our portfolio for select emerging markets represents an early entry opportunity
• Continue to work on monetizing US & EU opportunity
Established Development Capabilities  Three commercial products – filgrastim, rituximab & darbapoetin
– launched in multiple emerging markets; Revenues: H1 FY11  ~$9 mn
Recently filed our fourth biosimilar in India ; Five other products in pipeline
Several years of proven cGMP manufacturing experience with a history of successful audits including
approval for European clinical trial product supply.

23. Proprietary Products: Differentiated
Formulations and NCE Research & Development
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 Hybrid Differentiated Formulations/NCE Strategy anchored around :
 Specialty indications with feasibility to self-commercialize
 Higher conversion from preclinical-to-clinic
 Enabled by core capabilities :
 Strong internal formulation development team focused on oral and topical drug delivery
 Enabling alliances in areas of alternative drug delivery (intranasals, injectables)
 Resulting (from FY 2012 onwards) in an annual output of 3-5 quality clinical candidates
in/from :
 High value differentiated formulations programs (US/EU-targeted) in
pain, hospital, dermatology
 Complementary NCE pipeline focusing on same indications
 GSK Differentiated Formulations alliance

24.  Dr. Reddy’s Overview
 Global Generics
 Pharmaceutical Services and Active Ingredients
 Proprietary Products
 Looking Ahead

25. Key Messages
FY 11 Guidance : RoCE of 18 – 22%
FY13 Goal : Revenues  $3 bn & RoCE of 25%
Amongst the leading pipeline of ANDA & DMF filings globally
Strong & sustained cash flows expected from product opportunities such
as Omeprazole Mg OTC, Tacrolimus & Fondaparinux
Attractive Emerging Markets presence with stronghold in two key ‘BRIC’
markets – India & Russia
Strategic alliance with GSK for Emerging Markets
Emerging biosimilars play

26. Thank You